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Ms. Swanson Gribskov said there were two issues: How do you recruit an airline for Eugene" <br />and "How do we deal with one-time funds?" She wondered if the airport's need was more <br />important than any other General Fund need. <br /> <br />Addressing a question from Mayor Torrey, Ms. Andersen clarified that the airport reserve fund <br />under discussion could be used for whatever purpose the council wished. <br /> <br />Airport investments have been prudent and appropriate, Ms. Swanson Gribskov said, but the <br />question is how much an appropriate reserve should be. <br /> <br />Mr. Tollenaar asked for clarification on how this was General Fund money since it is not property <br />tax revenue. He said it was his understanding that the money had been generated from airport <br />services and it was only available now because of the FAA ruling that an amount equal to what <br />the airport had received from the City's General Fund during a specific fiscal period could now be <br />used for General Fund purposes. Ms. Andersen confirmed that the airport reserve fund, although <br />generated by the airport, may be handled like any other reserve fund. <br />Addressing a question from Mr. Farr, Mr. Boggs said the money was generated from airport <br />parking, concessions, restaurants, rental car operations, and similar activities. Ms. Anderson <br />addressed a follow-up question by clarifying that this was the only time that money could be <br />transferred without "strings." Mr. Farr said he supported the staff recommendation, comparing it <br />to spending money on advertising. <br /> <br />Mr. Meisner pointed out that in the examples used, a marketing effort alone had returned many <br />fold what had been invested and wondered where the "profit" had gone. He asked what else, <br />specifically, the airport wished to do. Ms. Andersen said the airport was seeking to establish a <br />reserve fund for a variety of reasons; it was not intended to be a set aside for strictly a recruitment <br />effort but included such things as the Capital Improvement Project (CIP) and was a means to <br />address the volatility of FAA regulations, which at any time could implement changes, e.g., <br />eliminating revenue sources such as the passenger facility charge (PFC). She emphasized that the <br />point was not to make money but rather to provide air service to the community. <br /> <br />Mr. Meisner asked for more detailed budget numbers. <br /> <br />Mayor Torrey indicated that Councilor Taylor has asked that the council not vote on the issue in <br />her absence. He suggested that Mr. Meisner submit staff questions in writing, with responses <br />distributed to the entire council. <br /> <br />Ms. Nathanson said what was needed was more of an overview. She said that because the airport <br />is self-sustaining the City needed to ensure that there was a reserve sufficient to pay for ongoing <br />operations as well as addressing its capital needs as they arise. She pointed out that many of the <br />City's assets are in dire condition because it fails to maintain an adequate reserve fund for those <br />capital needs. Ms. Nathanson said the reserve should be sufficient to avoid a huge drain on the <br /> <br />Minutes--Eugene City Council November 18, 1998 Page 6 <br /> 11:30 a.m. <br /> <br /> <br />