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million a couple of years earlier and now wanted to make another $2 million in improvements to it. He was <br />challenged to guarantee the loan when it seemed “extravagant.” <br /> <br />Councilor Zelenka asked Ms. Cutsogeorge to explain how spending the money would cause problems with LCOG’s <br />auditor. Ms. Cutsogeorge responded that LCOG would receive an audit finding on their annual audit report. <br /> <br />Bob Swank, Associate Director of LCOG, explained that the audit finding that LCOG could potentially face would <br />be that its reserves and its general fund had been reduced to possibly a negative or very low number. He underscored <br />that the loan guarantee was not for a loan to pay for extravagance and that it had come from the economic climate; <br />costs had gone up and LCOG had not been able to get a loan on its own. He stated that the reason LCOG needed to <br />retain its general fund reserves was that it used those funds to make matching funds for “all kinds of grants, many of <br />which would potentially relate to the City of Eugene.” <br /> <br />Roll call vote; the vote was a tie, 4:4; councilors Poling, Ortiz, Pryor, and Zelenka voting in favor <br />and councilors Brown, Taylor, Clark, and Solomon voting in opposition. Mayor Piercy voted in fa- <br />vor of the resolution and it passed. <br /> <br />The meeting adjourned at 8:26 p.m. <br /> <br />Respectfully submitted, <br /> <br /> <br /> <br />Jon Ruiz <br />City Manager <br /> <br />(Recorded by Ruth Atcherson) <br />MINUTES—Eugene City Council May 11, 2009 Page 7 <br /> Regular Meeting <br />