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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 is a participant with Lane County, the City of Springfield, the Eugene Water and Electric Board, and
<br />the Lane Council of Governments in the Regional Executive Group (REG). The REG is governed by a seven-
<br />member board consisting of the Chief Administrative Officer of each of the participating governments, plus the
<br />County Assessor and the County Sheriff, all of whom have an equal vote in the REG operations. The REG is a
<br />joint venture established by intergovernmental agreement to administer and set policy for the Regional
<br />Information Service (RIS), the computer center serving the participating governments. The City maintains an
<br />ongoing financial responsibility for its share of RIS liabilities and for its proportionate share of any RIS contracts
<br />entered into while bound by the intergovernmental agreement, until such contracts are paid off. Additionally,
<br />the City has an ongoing financial responsibility as the REG's primary customer, providing approximately 41% of
<br />its revenues. Although the City has no explicit, measurable equity interest in the REG, it does maintain a
<br />residual interest in RIS assets upon dissolution of the joint venture. The REG does not issue a separate
<br />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, 2011, where its Information Services Fund reflected operating income of $2,157,170, an increase in
<br />net assets of $2,205,999 and total net assets of $15,121,948. For the fiscal year ended June 30, 2012, the City
<br />paid $2,498,158 to Lane County for its share of RIS operations.
<br />The City is also a participant with Lane County and the City of Springfield in the Metropolitan Wastewater
<br />Management Commission (MWMC), a joint venture established by intergovernmental agreement to construct,
<br />maintain, and operate regional sewerage facilities. The MWMC consists of a seven-member board to which
<br />the City appoints three voting members. The City has no explicit, measurable equity interest in the MWMC.
<br />However, the City has an ongoing financial responsibility for the operations of the MWMC in that the City is
<br />obligated to adopt disposal rates and charges not less than those adopted by the MWMC, and to forward to the
<br />MWMC, its share of the revenues as specified in the adopted financing plan, which requires that all MWMC
<br />administrative, operational, and maintenance expenses be financed through a uniform district-wide monthly fee.
<br />MWMC contracts with the City for operation of the regional sewerage facilities on a cost reimbursement basis
<br />which is accounted for in the Wastewater Utility Fund. For the fiscal year ended June 30, 2012, the City
<br />provided billable operations to MWMC costing $12,346,116 and MWMC owed the City $1,189,821 for
<br />unreimbursed costs at year-end. The City of Springfield includes the MWMC as a component unit of its
<br />financial reporting entity. MWMC’s most recently published financial statement was for the year ended June
<br />30, 2011, which reflected net income of $4,583,219 and total fund equity of $121,530,363. Separate financial
<br />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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