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Public Works <br />City of Eugene <br />858 Pearl Street <br />Eugene, Oregon 97401 <br />October 12, 2001 (541) 682-5262 <br />(541) 682-6826 Fax <br />Verne Deplois <br />ODOT, Costs Allocation & <br />Analysis Unit <br />550 Capitol St NE <br />Salem, OR 97301-2531 <br />RE: FY01 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 FY01 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. As you can see, the bonds and notes transactions account for <br />the difference between revenues and disbursements of approximately $770,631 It is felt that for <br />the City of Eugene, excluding note and bond activity provides a more accurate picture of street <br />transportation expenditures "on the 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 ofnon- <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 />~ ~ <br />Peggy Hamlin <br />Financial Analyst AIC <br />Administration Division <br />