Albany unlikely to use Pepsi money for budget hole

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ALBANY, Ore. (AP) -- Albany's budget is $1 million short, and at least one city official proposes filling the hole with money from a legal settlement with Pepsi Co.

But members of the city council are reticent to tap the so-called Pepsi money, which began with an $18.5 million settlement when Pepsi pulled out of building a promised plant in Albany.

Now, there's about $10 million left, the Albany Democrat-Herald reports (http://bit.ly/yZ5Yj5 ).

City finance director Stewart Taylor proposed using $3 million from the fund to cover the city's budget hole for the next two to three years. That idea gained little traction on Monday night, and appears unlikely to be implemented.

A city council member instead proposed cutting transit programs or increasing fares.

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Information from: Albany Democrat-Herald, http://www.dhonline.com