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i ~ ~ <br /> I <br /> Public Works <br /> ~ Administration <br /> City of Eugene <br /> 858 Pearl Street <br /> MEMORAND V M Eugene, Oregon 97401 <br /> ~ (541)682-5241 <br /> (541) 682-6826 FAX <br /> wv~w.eugene-or.gov <br /> I <br /> j Date: December 17, 2008 <br /> To: Mark Schoening, Johnny Medlin, Peter Ruffier, Becky Carlson <br /> From: Susan Weixelman <br /> <br /> " <br /> " <br /> j Subject: Preliminary Report on SDC Administration Pund - 332 <br /> The, purpose of this memo is to summarize the current financ;ia] situation of the Systems Dev~iopment <br /> Administration Fund (SDC) -Fund 332, give a process update, to advise you of preliminary solutions <br /> I we're currently exploring, and identify further items for follow up. <br /> Fund 332 is in a declining fund balance situation «~ith re~~enues continuing to decline rapidly. We need to <br /> look at a~combination of solutions,~including iYlcreasin~~ revenues, decreasin~a Uxpenditures, and/or raising <br /> rates/fees to ensure a sustainable long-term forecast for this fund. <br /> i <br /> Background <br /> Fund 332 is used to account for the pre-7/1/91 SDC receivables for which allocation by fund type was not <br /> required. In addition, anti I 11'96, fund 332 was designated as the "SDC" financing fund for customers <br /> who require fmancing of the SI)C charges. This fund is staf[~d by .90 FTE from PDD/Building & Permit <br /> ~ services, these FTE do some SD(-' ,hc~citic ~i•ork includiu~r overall administration, intake & log-in, and . <br /> 1 <br /> plan review. F~~'E has ?.d~ [~"I'l~ assi <~l]ed to SDC administration and plan review, and Central Services <br /> ~ currently has.5 1`TE in Cnstolller Recei~~ablcs (i5 currently budgeted, but it not being charged to this <br /> fund). <br /> lh~ primary revenues for this fund are: <br /> 1. SDC :4dministration 1' ee - currc~n~ly a 5% administration fee assessed on the gross amount of the <br /> char~~e1; <br /> 2.. SDC Ci~ntract Revenue -the combination of legacy fmanced contracts that are making payments <br /> (both pz"iucipal and interest) to the Admire Fund and the 5% Admire fee from new contracts that <br /> are financed and collected in installments). <br /> 3. Minor Other hand Revenues -primarily investment interest earnings on the small fund balance; <br /> 4. Interest "bump" on SDC Contracts -this is currently not being collected in the SDC Admire fund <br /> due to an oversight in 1996 when a change was made in the fund "holder" of the contracts. More <br /> discussion of this issue is included later in this memo. <br /> FY09 Revenue Budget: F09 Expenditure Budget: <br /> SDC Admire Fee $277,338 Budget FTE <br /> SDC Contract Revenue $50,000 PDD $117,417 ..0.90 <br /> Interest on SDC Contracts $3,000 Central Svcs $42,000 0.50- <br /> Page 1 of 4 <br /> _ _ <br /> <br />