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Mr. Pangborn, responding to a question from Mr. Zelenka regarding LTD’s budgetary plans between now <br />and September 2009, commented that in addition to the proposed service reductions being presented, LTD <br />was spending down approximately $3.5 million in reserve funds in addition to considering further service <br />reductions should the current proposals prove insufficient. <br />Mr. Pangborn noted that any funding assistance from the State legislature would most likely not materialize <br />until the first or second quarters of 2010 due to the logistics involved in collecting and disbursing such <br />funds. <br />Mr. Pangborn, responding to a question from Mr. Zelenka about what revenue sources might be used by the <br />State legislature to provide additional funding to LTD, said that cigarette/tobacco, certain systems <br />development charges, and additional parking or payroll taxes might be used. Mr. Pangborn added that gas <br />tax funds could not be used to provide funding to LTD or similar public transportation concerns as it was <br />prohibited by state law. <br />Mr. Pangborn, responding to a question from Mr. Zelenka, noted that the current Oregon payroll tax rate <br />was 0.0064% and would be increasing to 0.0065% beginning in January of 2009. <br />Mr. Pangborn, responding to a question from Mr. Zelenka, commented that LTD’s 15% overall service <br />reduction goal might necessitate the termination of between 25 and 27 bus drivers. <br />Mr. Zelenka asked Mr. Pangborn to respond to the public perception that the EmX system itself was at least <br />partially to blame for the current LTD budgetary crisis. Mr. Pangborn responded by repeating the <br />philosophical dichotomy he had referenced earlier about whether LTD should focus on being a social service <br />safety net or a mass transit initiative. Mr. Pangborn added that even thought LTD had always attempted to <br />balance those two guiding philosophies, the LTD board had 14 years previously adopted a strategic plan <br />that emphasized mass transit over social services. Mr. Pangborn reminded Mr. Zelenka that the primary <br />reason for the budgetary crisis was not the use of the EmX system, but rather the triple-threat of increased <br />fuel costs, increased accessibility/paratransit costs, and the poor condition of the economy. <br />Mr. Eyster elaborated on Mr. Pangborn’s comments for Mr. Zelenka, noting that funds that had been <br />devoted to EmX in the past would not have been eligible for other areas of LTD. <br />Ms. Bettman asked how many riders per day were represented by LTD’s targeted 15% service reduction. <br />Mr. Pangborn and Mr. Muller replied that while they did not know exactly, they could extrapolate such a <br />number from reviewing the current productivity of the routes affected by the proposed service reductions. <br />Mr. Eyster, responding to a question from Ms. Bettman, noted that LTD had taken efforts to ensure <br />coverage for the elderly, disabled and economically disadvantaged citizens of Lane County. <br />Ms. Bettman asked why LTD had not been lobbying the State legislature for access to gas tax funds. Mr. <br />Pangborn replied that such efforts had historically fallen on deaf ears and that even if LTD were granted the <br />ability to utilize gas tax funds there would still not be enough money to resolve the LTD budget crisis. <br />Mr. Pangborn, responding to a question from Ms. Bettman, noted that a series of cuts at the administrative <br />level of LTD had already been completed in anticipation of the budget crisis and resultant service reduction <br />cuts. Mr. Pangborn was unable to give exact figures regarding the number and nature of the administrative <br />cuts. <br />Mr. Pangborn, responding to a question from Ms. Bettman, noted that LTD had spoken to Governor <br /> <br />MINUTES—Eugene City Council October 13, 2008 Page 5 <br /> Work Session <br /> <br />