(1) The revenues received from the systems development charges shall be budgeted and expended as provided by state law. The accounting of such revenues and expenditures required by state law shall be included in the city’s Comprehensive Annual Financial Report required by ORS chapter 294.

(2) The capital improvement plan required by state law as the basis for expending systems development charge revenues for capital improvements shall be the Eugene Capital Improvement Program (CIP), the comprehensive plan as adopted by the council (Plan), the Transportation SDC Project Plan, the Parks and Recreation SDC Project Plan and other city facilities plans that may include SDC-eligible capital projects. It may also include a capital improvement plan adopted by another governmental body which was used by the city manager in establishing the methodology for the systems development charge.