Item 4D: Resolution Acknowledging Receipt of FY07 CAFR

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GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the independent auditor’s report on the basic financial statements. City Overview Incorporated in 1862, the citizens of Eugene adopted the council/manager form of government in 1944. The City Council develops legislation and policies to direct the City but hires a professional manager (the City Manager) to oversee City of Eugene personnel and operations. The Mayor is elected at-large to a four-year term and acts as the formal representative of the City and presides over council meetings. The City Council has eight members elected by ward to four-year terms, with one-half of the council elected every two years. Empowered by state statute, the City levies a property tax on real and personal property located within its boundaries. As of July 1, 2006, 148,595 people resided in Eugene, making it Oregon’s third largest city. City boundaries encompassed 42 square miles in Lane County. The Willamette River runs through the heart of the City and the McKenzie River joins the Willamette to the north of town. Eugene is the center of government and education including County, State and Federal government agencies, and is home to the University of Oregon. Since 1990, population within the city limits has increased an average of 2.0% annually. The size of the City has increased by approximately 4 square miles. The City provides a full range of municipal services. These services include police, fire, emergency medical services, and municipal court; community planning and development; parks, library, recreational and cultural activities; airport, wastewater treatment, stormwater management, and general public works; and central services, administration, and other functions associated with a full-service city. These services are provided primarily to citizens who live within the corporate limits. However, many of the services and facilities operated by the City are provided for and financed by regional service areas larger than the City. For financial reporting purposes, the City includes all funds of the City subject to appropriation by the City Council. In addition, the City includes all governmental organizations and activities for which the City Council is financially accountable. Therefore, the financial statements of the Urban Renewal Agency of the City of Eugene, although legally separate, have been blended with those of the City by including them in the appropriate statements and schedules in this report. For financial planning and control, the City prepares and adopts an annual budget in accordance with Oregon Revised Statutes Chapters 294.305 through 294.565. Budgeting in Oregon is a joint effort between the people affected by the budget and the appointed and elected officials responsible for providing the services. Elected or appointed officials determine the allocation of resources to the service system. The State of Oregon Department of Revenue checks to see that the budget is prepared according to law. Citizens involved with budget preparation see that programs they want and need are adequately funded. To give the public ample opportunity to participate in the budgeting process, Local Budget Law requires that a budget officer be appointed and a budget committee be formed. The budget officer draws together necessary information and prepares the first draft of the budget. The budget committee then reviews and revises the proposed budget before making a recommendation to the City Council. Notices are published, budgets are made available for review, and at least two public hearings are heldone meeting is held before the Budget Committee, which is composed of the eight City Councilors and eight citizen members, and one meeting is held before the City Council. These requirements encourage public participation in the budget making process and give public exposure to budgeted programs and fiscal policies before the governing body of the municipal corporation adopts the budget. The legally adopted budget is at the fund and departmental level for current expenditures, with separate appropriations established for capital projects, debt service, interfund transfers, interfund loans, intergovernmental expenditures, and miscellaneous fiscal transactions. Budgetary control is internally administered at a more restrictive level. Budget-to-actual comparisons are provided in this report for each individual fund for which an appropriated annual budget has been adopted. For the General Fund and Community Development Special Revenue Fund this comparison is presented as required supplementary information in this report. For all other funds, this comparison is presented as other supplementary information. î