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ADMINISTRATIVE ORDER NO. 44-09-09-F <br />AMENDMENT OF THE ASSESSMENT ACCOUNTS FEE SCHEDULE; <br />REPEAL OF ADMINISTRATIVE ORDER NO. 44- 08 -07 -F; AND <br />AMENDMENT OF ADMINISTRATIVE ORDER NO. 44-83-01. <br />The City Manager of the City of Eugene finds that: i <br />A. Section 2.020 of the Eugene Code, 1971, authorizes the City Manager to <br />determine and set fees and charges to be imposed by the City for services, goods, use of <br />municipal property, and licenses and permits. Sections 2.022 and 2.023 of that Code authorize <br />the City Manager to establish the interest rate to be charged on sums due the City. <br />B. At their June 22, 2009 meeting, City Council approved the formation of the Local <br />Improvement District for Crest Drive. At that time, City staff noted that they would proceed <br />with 'a recommendation to tie the interest rate, currently at 8% percent, more closely to the <br />market rate that reflects what it costs the City to borrow. At the July 13, 2009 City Council work <br />session on systems development charges, staff committed to pursue an administrative measure to <br />establish a market -based interest rate for contracted SDC payments. <br />C. Pursuant to the above findings, I issued Administrative Order No. 44 -09 -09 <br />proposing to amend the Assessment Accounts Fee Schedule that was adopted by Administrative <br />Order No. 44- 08 -07 -F, by revising the interim interest rate, the SDC interest rate, and the <br />Equivalent Assessment interest rate from a fixed rate of 8% to the market rate that reflects the <br />City's costs to borrow the funds. In addition, I proposed to amend Administrative Order No. <br />44 -83 -01 to repeal the portion of that Order that sets the interest rate on assessments payable in <br />installments because it is in conflict with the interest rate proposed by Administrative Order No. <br />44- 09 -09. The current and proposed interest rates were set forth in the Notice attached as <br />Exhibit A to Administrative Order No. 44- 09 =09. <br />D. The Notice was published in the Register- Guard, a newspaper of general <br />circulation within the City and posted at two locations at City Hall on December 15, 2009. <br />Notice was also provided to the Mayor and City Council, made available to any persons who <br />requested such notice and was made available for inspection by interested persons at the City's <br />Finance Division, 100 W. 10 Avenue, Suite 400, Eugene, Oregon, 97401, during normal <br />business hours. The Notice advised that comments would be received for 15 days from the date <br />of posting and publication of the Notice. No comments were received within the time or in the <br />manner required by the Notice. <br />E. I find that amendment of the Assessment Account Fee Schedule is necessary in <br />order to establish a market -based interest rate that more accurately recovers the actual cost to the <br />City for borrowing the funds. Pursuant to section 2.020 of the Eugene Code, 1971, in <br />determining the proposed rates I have considered applicable policies, enactments and directives <br />of the council; the amount charged by the city in the past; the full costs of providing the service <br />Administrative Order - Page 1 of 2 <br />