(1) Prior to obtaining any forfeiture judgment, any money, security and negotiable instrument that is not retained by the seizing law enforcement agency for evidentiary purposes shall be deposited with the city finance officer pending the outcome of the forfeiture proceeding. Other property shall be kept in the custody of the city manager, or the manager’s designee, until a forfeiture judgment is obtained.

(2) When a judgment of forfeiture is obtained under sections 4.245 to 4.255, the property or proceeds shall be distributed or applied as required by state law.

(3) For Fiscal Year 2002, as authorized by state law, forfeiture funds deposited in the general fund of the city need not be used exclusively for drug treatment but may be used for all purposes except law enforcement purposes. For Fiscal Year 2003 and thereafter, forfeiture funds deposited in the general fund of the city shall be used exclusively for drug treatment for residents of the City of Eugene.

(4) The city shall annually report the nature and disposition of all property and proceeds seized for forfeiture or forfeited to a state asset forfeiture oversight committee created under Article XV, section (11) of the Oregon Constitution.