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CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />(5) Other Information, continued
<br />(B) Joint Ventures
<br />The City of Eugene is a participant with Lane County, the City of Springfield, the Eugene Water and Electric
<br />Board, and the Lane Council of Governments in the Regional Executive Group (REG). The REG is governed
<br />by a seven-member board consisting of the Chief Administrative Officer of each of the participating
<br />governments, plus the County Assessor and the County Sheriff, all of whom have an equal vote in the REG
<br />operations. The REG is a joint venture established by intergovernmental agreement to administer and set
<br />policy for the Regional Information Service (RIS), the computer center serving the participating governments.
<br />The City of Eugene maintains an ongoing financial responsibility for its share of RIS liabilities and for its
<br />proportionate share of any RIS contracts entered into while bound by the intergovernmental agreement, until
<br />such contracts are paid off. Additionally, the City has an ongoing financial responsibility as the REG's primary
<br />customer, providing approximately 43% of its revenues. Although the City of Eugene has no explicit,
<br />measurable equity interest in the REG, it does maintain a residual interest in RIS assets upon dissolution of the
<br />joint venture. The REG does not issue a separate financial report.
<br />All RIS financial activity is accounted for in the Information Services Fund, an enterprise fund of the Lane
<br />County reporting entity. Lane County’s most recently published financial statement was for the year ended
<br />June 30, 2006, where its Information Services Fund reflected operating income of $647,883, an increase in net
<br />assets of $653,005 and total net assets of $4,652,761. For the fiscal year ended June 30, 2007, the City paid
<br />$1,891,547 to Lane County for its share of RIS operations.
<br />The City of Eugene is also a participant with Lane County and the City of Springfield in the Metropolitan
<br />Wastewater Management Commission (MWMC), a joint venture established by intergovernmental agreement
<br />to construct, maintain, and operate regional sewerage facilities. The MWMC consists of a seven-member
<br />board to which the City of Eugene appoints three voting members. The City of Eugene has no explicit,
<br />measurable equity interest in the MWMC. However, the City has an ongoing financial responsibility for the
<br />operations of the MWMC in that the City is obligated to adopt disposal rates and charges not less than those
<br />adopted by the MWMC, and to forward to the MWMC, its share of the revenues as specified in the adopted
<br />financing plan, which requires that all MWMC administrative, operational, and maintenance expenses be
<br />financed through a uniform district-wide monthly fee.
<br />MWMC contracts with the City of Eugene for operation of the regional sewerage facilities on a cost
<br />reimbursement basis which is accounted for in the Wastewater Utility Fund. For the fiscal year ended June 30,
<br />2007, the City provided billable operations to MWMC costing $10,174,337 and MWMC owed the City
<br />$1,063,797 for unreimbursed costs at year-end. The City of Springfield includes the MWMC as a component
<br />unit of its financial reporting entity. MWMC’s most recently published financial statement was for the year
<br />ended June 30, 2006, which reflected net income of $385,839 and total fund equity of $96,152,038. Separate
<br />financial statements for MWMC can be obtained from the City of Springfield Finance Department.
<br />(C) Retirement Plan
<br /> Plan Description
<br />The City is a participating employer in the Oregon Public Employees Retirement System (PERS), an agent
<br />multiple-employer public employee retirement system established under Oregon Revised Statutes 238.600 that
<br />acts as a common investment and administrative agent for public employers in the State of Oregon. PERS is a
<br />defined benefit pension plan that provides retirement and disability benefits, annual cost-of-living adjustments,
<br />and death benefits to members and their beneficiaries. Benefits are established by state statute.
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