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after a site has been monitored and maintained for a period of five years as long as it meets the <br /> criteria for success. After this period, the site is expected to remain in wetland condition and <br /> continue to serve the functions and values that were proposed for the initial mitigation project. <br /> The bank experienced it's first site to expire from the monitoring period in the summer of 2001. <br /> MBRT's direction regarding the long term care for the site was that we are required to make sure <br /> it continues to provide the functions and values identified in the original site plan. This was an <br /> unanticipated cost for the bank. This is somewhat of a grey area since the City is responsible for <br /> management of the mitigation bank but the land is owned by BLM. At this point, both parties are <br /> working on a solution. Increasing the price per credit as recommended in the final section of this <br /> paper would assist with this currently unfunded cost. <br /> Section 3: Current budgeting and spending practices. <br /> The Mitigation Bank Fund at the City of Eugene is a specific fund which has Revenues from the <br /> sale of mitigation credits and Expenses from operating and capital budgets. <br /> Revenues are split into two holding accounts when they come into the fund. The capital account <br /> receives 83.33 % of the revenue and an operating & maintenance (O&M) account receives <br /> 16.67% of the revenue. This split was determined as an estimate of the original construction <br /> process involved at the Eastern Gateway site in 1993. At that time, it was estimated that <br /> approximately 20% of the capital costs would be necessary for O&M for a period of 5 years <br /> following construction. <br /> Additional revenue is received each year from interest earned on the fund. This amount varies <br /> based on the rate of return and the amount in the fund. The average interest earned per year for <br /> FY99, FY00, & FY01 was approximately $50,000 when total fund balance averaged <br /> approximately $930,000. <br /> Expenses against the funds the in mitigation bank are incurred through capital projects (i.e. new <br /> construction) and operating budget expenses (i.e. ongoing program costs). <br /> Capital project expenses are tracked in the system by specific account numbers established to <br /> track a capital project. These are known as "Good Job Numbers" (GJN's). Each mitigation bank <br /> site is set up as a specific project for purposes of tracking expenditures. There are currently 17 <br /> projects that are active. Once a project has been constructed, which is usually done in one or two <br /> summers, the project is moved to the O&M phase but it is still a capital project (the numbering <br /> system changes from a 9~ to a 2xxxx system). Once the project moves to this O&M phase, <br /> funding is still available for direct capital expenses but operating costs are charged through the <br /> <br /> bank operating budget. <br /> Some projects are set up several years in advance of beginning the capital construction. This is <br /> done in an effort to start tracking expenses related to planning or interim activities prior to <br /> <br />