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~} <br />Public Works <br />City of Eugene <br />858 Pearl Street <br />Eugene, Oregon 97401 <br />(541)682-5262 <br />(541) 682-6826 Fax <br />October 27, 1997 <br />Verne Deplois <br />ODOT, Financial Services <br />Transportation Building, Room 434 <br />Salem, OR 97310 <br />RE: FY97 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 FY97 receipts and disbursements for road and street purposes. The only additions <br />to the questionnaire are the footnotes at the bottom of pages 1 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. I feel that, at least for the City of Eugene, excluding note <br />and bond activity provides a more accurate picture of street transportation expenditures "on the <br />ground" for the following reasons. <br />The City does not issue road construction bonds to finance general road improvements. All 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. To further complicate matters, these three occurrences <br />may take place in one or more fiscal years, further divorcing the reported note and bond <br />transactions from actual project construction expenditures. <br />Sincerely, <br />U~~J,U ^ <br />Valerie Dixon <br />Financial Coordinator <br />Administration Division <br />