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determined, only that they could be used in response to the community's desire for increased air <br />service. She also said staff could develop potential strategies for air service recruitment for a <br />work session with the council, if desired. <br /> <br />Mr. Tollenaar stated that he had been convinced during the previous work session that funds <br />generated by the airport should be used for airport purposes, not placed in the General Fund. He <br />said he did not support direct cash subsidies to airlines. He suggested that some marginal costs <br />at the airport would increase if additional air service was developed. <br /> <br />Ms. Swanson Gribskov recalled that a general review of City financial reserves was scheduled <br />during the term of the next City Council. <br /> <br />Mr. Fart said that he would have a difficult time supporting placing the funds in question in the <br />General Fund since how they would be used was unknown. He asked what the interest earning <br />potential of airport funds was. Mr. Boggs replied that it was the same as that of General Fund <br />reserves. <br /> <br /> Mr. Fart moved, seconded by Mr. Tollenaar, that no changes be made in the <br /> status of airport funds at this time. <br /> <br />Mr. Fart asked what tax receipts had funded the airport to date. Ms. Andersen replied that the <br />only non-airport generated funding provided to the airport had been for debt service on the <br />General Obligation bond issue approved March 31, 1987. <br /> <br />Mr. Fart said that he would like more airport service, but that the potential expense made it seem <br />like a futile effort. <br /> <br />Mr. Lee pointed out that all businesses needed reserves to protect long-term interests. He said <br />he believed the proposal under consideration was a helpful management strategy to protect the <br />General Fund. <br /> <br />Mr. Laue said he would vote for the motion. He said that withdrawing reserves for alternate uses <br />had not been uncommon during his tenure on the council. He said he believed increased air <br />service in Eugene and the need for a new airport runway depended on regional and national <br />trends, not local interest. He suggested that study of improved use of reserves was best <br />considered within normal budget planning cycles. <br /> <br /> The motion to make no changes in the status of airport funds was adopted, <br /> 6:2, with Mr. Meisner and Ms. Taylor voting opposed. <br /> <br />MINUTES--Eugene City Council November 23, 1998 Page 2 <br />5:30 p.m. <br /> <br /> <br />