Item 4: Adoption of Resolution 1057 Adopting a Supplemental Budget

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EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Public Hearing and Possible Action: Adoption of Resolution 1057 Adopting a Supplemental Budget; Making Appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year Beginning July 1, 2010 and Ending June 30, 2011 Meeting Date: December 13, 2010 Agenda Item Number: 4 Department: Central Services Staff Contact: Mia Cariaga www.eugene-or.gov Contact Telephone Number: 682-5408 ISSUE STATEMENT Board approval of the first Supplemental Budget for FY11 is requested. Oregon Local Budget Law (ORS 294.480) allows for supplemental budgets for "an occurrence...which had not been ascertained at the time of the preparation of a budget for the current year..." Supplemental Budget #1 consists of transactions to amend the Urban Renewal Agency (URA) budget to reconcile Beginning Working Capital and capital carryover. BACKGROUND The Supplemental Budget that occurs in December of a fiscal year is usually the largest because of audit adjustments to budgeted Beginning Working Capital and the reappropriation of funds from the prior fiscal year for program initiatives or projects begun, but not completed, in that year. Supplemental Budgets also recognize new revenue and authorize other unanticipated changes in legal appropriations. For this Supplemental Budget, the proposed changes fall into the following carryover adjustments: Transactions Related to Beginning Working Capital Isler & Company, LLC, the City's external auditor, has completed its FY10 audit and this Supplemental Budget reflects Marginal Beginning Working Capital (MBWC) information. The MBWC is the difference between the estimated and audited actual FY10 revenues and expenditures. This adjustment is recognized on Supplemental Budget #1 and is the only component of the transactions included in this budget request. The total audited adjustment to the FY11 Budgeted Beginning Working Capital for URA funds is a reduction of $255,832. Capital Project Carryover Reconciliation The Capital Project Carryover estimate is reconciled in this supplemental budget. An estimate of the capital carryover in each pertinent fund was established in the FY11 Annual Budget and approved by the URA Board. These estimates have been reconciled with actual FY10 expenditures and the Capital Budget is adjusted to reflect the remaining unspent balances in each project. These transactions total an increase of $99,000 to the URA Capital budget. Z:\CMO\2010 Council Agendas\M101213\S1012134.doc