HomeMy WebLinkAboutAdmin Order 44-09-09-FADMINISTRATIVE ORDER NO. 44-09-09-F
AMENDMENT OF THE ASSESSMENT ACCOUNTS FEE SCHEDULE;
REPEAL OF ADMINISTRATIVE ORDER NO. 44- 08 -07 -F; AND
AMENDMENT OF ADMINISTRATIVE ORDER NO. 44-83-01.
The City Manager of the City of Eugene finds that: i
A. Section 2.020 of the Eugene Code, 1971, authorizes the City Manager to
determine and set fees and charges to be imposed by the City for services, goods, use of
municipal property, and licenses and permits. Sections 2.022 and 2.023 of that Code authorize
the City Manager to establish the interest rate to be charged on sums due the City.
B. At their June 22, 2009 meeting, City Council approved the formation of the Local
Improvement District for Crest Drive. At that time, City staff noted that they would proceed
with 'a recommendation to tie the interest rate, currently at 8% percent, more closely to the
market rate that reflects what it costs the City to borrow. At the July 13, 2009 City Council work
session on systems development charges, staff committed to pursue an administrative measure to
establish a market -based interest rate for contracted SDC payments.
C. Pursuant to the above findings, I issued Administrative Order No. 44 -09 -09
proposing to amend the Assessment Accounts Fee Schedule that was adopted by Administrative
Order No. 44- 08 -07 -F, by revising the interim interest rate, the SDC interest rate, and the
Equivalent Assessment interest rate from a fixed rate of 8% to the market rate that reflects the
City's costs to borrow the funds. In addition, I proposed to amend Administrative Order No.
44 -83 -01 to repeal the portion of that Order that sets the interest rate on assessments payable in
installments because it is in conflict with the interest rate proposed by Administrative Order No.
44- 09 -09. The current and proposed interest rates were set forth in the Notice attached as
Exhibit A to Administrative Order No. 44- 09 =09.
D. The Notice was published in the Register- Guard, a newspaper of general
circulation within the City and posted at two locations at City Hall on December 15, 2009.
Notice was also provided to the Mayor and City Council, made available to any persons who
requested such notice and was made available for inspection by interested persons at the City's
Finance Division, 100 W. 10 Avenue, Suite 400, Eugene, Oregon, 97401, during normal
business hours. The Notice advised that comments would be received for 15 days from the date
of posting and publication of the Notice. No comments were received within the time or in the
manner required by the Notice.
E. I find that amendment of the Assessment Account Fee Schedule is necessary in
order to establish a market -based interest rate that more accurately recovers the actual cost to the
City for borrowing the funds. Pursuant to section 2.020 of the Eugene Code, 1971, in
determining the proposed rates I have considered applicable policies, enactments and directives
of the council; the amount charged by the city in the past; the full costs of providing the service
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supported by the rates; the amounts charged by other comparable providers; and the revenue
needs of the city as determined by the adopted city budget.
F. Therefore, based on the above findings and the findings in Administrative Order
No. 44- 09 -09, the Assessment Account Fee Schedule and Administrative Order No. 44 -83 -01
should be amended as proposed.
On the basis of these findings, I order that:
1. The rates and fees set forth in Exhibit A attached to this Order are the rates and
fees to be charged for the described services as of the effective date of this Order.
2. The unamended rates and fees established by Administrative Order No. 44-08-07 -
F remain in full force and effect and are incorporated into the fee schedule attached as Exhibit A.
3. Administrative Order No. 44- 08 -07 -F is repealed as of the effective date of this
Order.
4. The portion of Administrative Order No. 44 -83 -01 that sets the interest rate on
assessments payable in installments is repealed as of the effective date of this Order. All other
provisions of that Order remain in effect.
5. The City Recorder shall append a copy of this Order to Administrative Order No.
44- 83 -01.
Dated and effective this 1;); day of January, 2010.
Jon R. Ruiz
t -�/ City Manager
Administrative Order - Page 2 of 2
ASSESSMENT ACCOUNTS FEE SCHEDULE
(Effective for assessment accounts included in Local Improvement Districts
formed after October 15, 2004, except as noted below.)
Rate Description
All Assessment Accounts
Fee
Financial Services Fee .......................................... ............................... 5%
(Charged to, and included in all assessment accounts, based on total
assessment, excluding engineering costs)
Assessment Installment Accounts
Interim Interest Rate *; SDC Interest Rate; and Equivalent
Assessment Interest Rate ....................................... ............................... Rate shall be a fixed rate
*Charged on all assessment accounts payable for the period equal to the prime rate as
between the assessment date and the issuance of long -term debt. reported by the St. Louis
Effective for special assessments levied by ordinance of the City Federal Reserve Bank on
Council after May 5, 2006 Assessments levied between October 15, the date of the assessment
2004 and May 5, 2006 remain subject to 6% interest. plus 200 basis points (or
2 percentage points).
Long -Term Interest Rate ........................................ ............................... 1.5% above rate payable
by City on the long -term
debt
Special Assessment Administrative Fee ................ ............................... $420.00 plus 1.5% of
*Effective for special assessments levied by ordinance of the City Property Owner's
Council after October 29, 2008. Assessments levied between Assessment
October 15, 2004, and October 29, 2008, remain subject to %% fee.
Equivalent Assessment Administrative Fee ........... ............................... $1.75 /month
Late Fee ................................................................. ............................... $5.00 or 5% whichever is
(Monthly or semi - annual payment received ten (10) days or more greater
after due date)
Exhibit A to Administrative Order No. 44- 09 -09 -F
ADMINISTRATIVE ORDER NO. 44-14-02-F
of the
City Manager
City of Eugene, Oregon
AMENDMENT OF THE ASSESSMENT ACCOUNTS FEE SCHEDULE
ADOPTED BY ADMINISTRATIVE ORDER NO. 44-09-09-F REGARDING
SDC INTEREST CHARGES FOR DEVELOPMENT OF A VETERANS
AFFAIRS CLINIC.
The City Manager of the City of Eugene finds that:
A. Section 2.020 of the Eugene Code, 1971, authorizes the City Manager to
determine and set fees and charges to be imposed by the City for services, goods, use of
municipal property, and licenses and permits. Sections 2.022 and 2.023 of that Code authorize
the City Manager to establish the interest rate to be charged on sums due the City.
B. On May 11, 1983, Administrative Order No. 44 -83 -01 was issued establishing
interest rates. On January 12, 2010, I issued Administrative Order No. 44- 09 -09 -F which
amended Administrative Order No. 44 -83 -01 by updating the rates for Assessment Accounts.
C. In February, 2012, the City Council directed the City Manager to look at what
action the City could take in order to make sure that the City remained competitive for the siting
of a new Veterans Affairs (VA) Clinic. To that end, the City committed that the developer of a
new VA Clinic would not be required to pay the City's SDCs related to the VA Clinic.
D. In order to ensure that the City's SDC fund is able to pay for the infrastructure
upon which the City's SDC methodology is based, the City intends to make the SDC_fund whole
by paying the VA Clinic's SDC fees with property tax revenue that the City will receive from the
construction of the VA Clinic. Since any property tax revenue from the VA Clinic not needed
for payment of the SDC fees will go to the general fund, City payment of interest on the owed
SDCs is not in the best interest of the City.
E. Pursuant to the above findings, on June 11, 2014, I issued Administrative Order
No. 44 -14 -02 proposing to amend the Assessment Accounts Fee Schedule that was adopted by
Administrative Order No. 44- 09 -09 -F, to provide that any interest charged for the VA Clinic's
SDCs pursuant to the Assessment Accounts Fee Schedule is zero.
F. Pursuant to section 2.020 of the Eugene Code, 1971, in determining the proposed
rates I have considered applicable policies, enactments and directives of the council; the amount
charged by the city in the past; the full costs of providing the service supported by the rates; the
amounts charged by other comparable providers; and the revenue needs of the city as determined
by the adopted city budget.
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On the basis of these findings, I order that the Assessment Accounts Fee Schedule
adopted by Administrative Order No. 44- 09 -09 -F is amended to provide that any interest charged
for the VA Clinic's SDCs pursuant to the Assessment Accounts Fee Schedule is zero.
Dated and effective this � 4 day of July, 2014.
�v
Jon R. Ruiz
1 1��ity Manager
Administrative Order - Page 2 of 2