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Section 6: Conclusion & Recommendations Budgeting Process The City's current budgeting practice treats the bank as a item for new, single year funding each year. This cautious approach was desirable when the bank was relatively new and Public Works managers wanted the opportunity to ensure the financial status of the bank was reexamined each year. This process is somewhat outdated since the bank program has matured and we now have several years of experience with bank operations and budgeting. Additionally, this process leaves an unnecessary cloud of uncertainty over the bank since the funding must be approved as a special item each year. Conversion of the fund to a baseline budget in the City system would be optimal and efficient. This will significantly reduce the staff time associated with formulating and requesting authorization to expend the bank funds. Managers will still have an opportunity to review the bank fund as they do other funds, and adjustments can be made through the normal processes for alterations to baseline budgets. Mitigation Credit Fee The cost of a mitigation credit was established in the mid-90's after only one major restoration. project was completed. This was a good attempt at the time to capture the majority of the costs associated with creating a credit. However, the cost did not include long term maintenance, planning, administration, or other logistical support needs such as vehicles for summer staff and phones and computers. We now have much better information regarding the cost of creating a mitigation credit and there are now many other mitigation banks operating around the nation that serve as useful comparisons. With that in mind, it appears that the current fee charged by the West Eugene Wetlands Mitigation Bank will not provide adequate revenue to sustain the fund as indicated by the 7 year projection model. Recommendations: 1.) Convert the Mitigation Bank Fund (536) to a Baseline Budget beginning in FY04. 2.) Increase the Credit Fee Price to $45,000 beginning July 1, 2002 and adjust for inflation each year thereafter on July 1 as calculated by the Consumer Price Index (CPIJ. This can be accomplished through administrative order by the Public Works Director.