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__ , _,; <br />Public Works <br />City of Eugene <br />• 858 Pearl Street <br />October 10, 1996 Eugene, Oregon 97401 <br />(541) 687-5262 <br />(541) 683-6826 Fax <br />Verne Deplois <br />ODOT, Financial Services <br />Transportation Building, Room 434 <br />Salem, OR 97310 <br />RE: FY96 Local Road and Street Finance Questionnaire <br />Enclosed is the Local Road and street Questionnaire that provides information on the City of <br />Eugene's total FY96 receipts and disbursements for road and street purposes. The only additions <br />to the questionnaire are the footnotes at the bottom of pages I and 2. The footnotes provide a <br />comparison of total receipts and total disbursements without information on revenue or debt <br />service related to bonds and notes. As you can see, the bonds and notes transactions account for <br />the difference between revenues and disbursements of approximately $257,000. I feel tha*_, at <br />least for the City of Eugene, excluding note and bond activity provides a more accurate picture of <br />street transportation expenditures "on the ground" for the following reasons. <br />The City does not issue road construction bonds to finance general road improvements. Ali City <br />assessment projects are funded either by assessment to property owners or by payoff of non- <br />assessable portions of projects from other funds, such as Systems Development Funds or the <br />City's Road Fund. In terms of cash flow, these projects are initially financed with proceeds from <br />short term notes. Once the project is completed, assessments are levied. If assessments are not <br />paid in cash by property owners within a specified time, assessment bonds are sold to finance <br />those assessments on behalf of property owners. Thus, both the costs and revenues related to a <br />single project would each be reported three times on the form. That is, revenue would show as <br />notes issued, assessments levied and notes sold. Expenditures would be shown as project costs, <br />notes paid and, eventually bonds paid <br />To further complicate matters, these three occurrences may take place in one or more fiscal years, <br />further divorcing. the reported note and bond transactions from actual project construction <br />expenditures. For example, this past year we paid off $2,200,000 in short term notes previously <br />issued. This financial transaction merely "grossed up" disbursements without any actual <br />additional road project expenditures. <br />S`i7nce~Ire/ly_, // <br />U i~lf,~''~-Li ,~k~ <br />Valerie Dixon <br />Financial Coordinator <br />Administration Divisipn <br />