CC Minutes - 05/20/98 Work Session

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explained that if the urban renewal increment was insufficient to make the debt service, funding for the Debt Service would go directly to the GF and take GF resources, which could mean reductions or elimination of GF services. The problem was that the only revenue source coming into urban renewal, under the concept here, has been counted toward making the debt service payments. The two revenue streams were the loan repayments and the tax increment. Mr Wong added that if the urban renewal revenue stream decreased, it would be related to an economic downturn and would also impact several other projects where GF funds have been pledged, i.e., parking garages and purchase of the Atrium. Ms. Nathanson summarized the discussion by saying that the decision hinged on the likelihood that the increment will be sufficient or will not be sufficient. In response to a question from Mr. Meisner, Mr. Wong said the effect of a negative bond rating change would be a higher interest rate, which reduced the amount of the bond. Ms. Swanson Gribskov said she initially supported the $2 million set aside but given the discussion she would support the motion. Mr. Lee said some did not consider the library a magnet for drawing people downtown, adding he believed the library downtown provided social benefits. Mayor Torrey encouraged the council to look for ways to identify funds to accomplish the types of projects downtown suggested by Ms. Nathanson. Ms. Nathanson said the draw to the library was a function of library programming. She envisioned services that would be a draw. The motion passed unanimously, 7:0. Ms. Swanson Gribskov drew attention to the vote, saying the council was united in its support for the library. Mr. Bowers reviewed the summary of funding options for the library using urban renewal funds, and underlying assumptions. He called attention to meeting materials that depicted the impact to the individual taxpayer. In response to a question from Mr. Meisner, Mr. Klein said if the district sunseted, any remaining money in the fund goes back to the County to be distributed to the overlapping taxing districts--any returned to the City goes to the GF to be used for anything the council chooses. Mr. Tollenaar said there would be an issue of whether "we can get by" with one central library or branches are needed. He added that it was possible to phase-in branches and levy anywhere within the spectrum. Addressing a question from Ms. Swanson Gribskov, Mr. Bowers said the council had the choice of setting the levy to just cover the debt service, or levy up to the full amount and bank the balance for future expansion. In response to a question from Mr. Lee, Mr. Bowers said the council each year would decide how much to levy as part of the budget process. Minutes--Eugene City Council May 20, 1998 Page 5 11:30 a.m.