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i <br /> 1 ~ Public Works <br /> Administration <br /> ' City of Eugene <br /> 858 Pearl Street <br /> Eugene, Oregon 97401 <br /> I MEMORANDUM (541) 682-5241 <br /> I ~ (541) 682-6826 FAX <br /> wur.eugene-or.gov <br /> i <br /> ~ Date: December 17, 2008 <br /> To: Mark Schoening, Johnny Medlin, Peter Ruffier, Beck} Carlson <br /> From: Susan Weixelman <br /> Subject: Preliminary Report. on SDC Administration Fund - 332 <br /> The purpose of this memo is to summarize the current financial situaticni of the Systems Development <br /> Administration Fund (SDC) -Fund 332, give a process update, to advise you of preliminary solutions <br /> we're currently exploring, and identify further items for follow up. <br /> Fund 332 is in a declining fund balance situation ~}ritlr rc~•enues continuing to decline rapidly. We need to <br /> look at a combination of solutions, including iucreasin<~ rc1>cnues, decreasing expenditures, and/or raising <br /> rates/fees to ensure a sustainable long-term forecast for this fiord. <br /> i <br /> Back ound <br /> Fund 332 is used to account i ~~r t he pre-7/1/91 SDC a~eceivables for which allocation by fund type was not <br /> required. In addition, until 1~1"~)t>. iiir~d. 332 was designated as the. "SDC" financing fund for customers <br /> who require financing of the S [)C charges. This fund is staf~`~d by .90 FTE from PDD/Building & Permit <br /> services, these FTE do sonic SiK' specific work including Overall administration, intake & log-in, and <br /> <br /> j ~ plan review. PWE has '_'.-I~ FTI ~rssi~~ned to SI7C` <~dmiuistration and plan review, and Central Services <br /> i currenth has . ~ 1 ~ 1 ~1 i n C' u s t o m c r Receivables (is currently .budgeted, but it not, being charged to this <br /> fund). <br /> Th.; prin~aly revenues for this Cued are: <br /> <br /> { 1. S I )C Administration Fcc - currently a 5% administration fee assessed on the gross amount of the <br /> char~~c); <br /> 2. SDC Contract Revenue -the combination of legacy financed contracts that are making payments <br /> <br /> { (both principal and interest) to the Admire Fund and the 5% Admire fee from new contracts that <br /> are financed ~rnd collected in installments). <br /> 3. Minor Other 1'uncl 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 />