Item 4: Resolution on URA Supplemental Budget

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EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Public Hearing and Action: Adoption of a Resolution Adopting a Supplemental Budget; Making Appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year Beginning July 1, 2011 and Ending June 30, 2012 Meeting Date: December 12, 2011 Agenda Item Number: 4 Department: Central Services Staff Contact: Mia Cariaga www.eugene-or.gov Contact Telephone Number: (541) 682-5408 ISSUE STATEMENT Board approval of the first Supplemental Budget for FY12 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 to realign the debt service budget for parking garage bonds. 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 categories: Transactions Related to Beginning Working Capital Isler & Company, LLC, the City's external auditor, has completed its FY11 audit, and this Supplemental Budget reflects the Marginal Beginning Working Capital (MBWC) information provided by the auditor. The MBWC is the difference between the estimated and audited actual FY11 revenues and expenditures. The total audited adjustment to the FY12 budgeted Beginning Working Capital for URA funds is an increase of $140,784. Debt Service Budget Realignment This Supplemental Budget includes a reduction in intergovernmental expenditures budgeted for parking garage debt service and an increase in the debt service budget. This adjustment moves the parking garage debt service budget from the Parking Services Fund to the URA Downtown Debt Service Fund due to bond refunding in May 2011. Intergovernmental Revenue Adjustment As part of this Supplemental Budget, the URA Director recommends recognizing intergovernmental revenue associated with the remaining HUD loan for the Beam in the amount of $740,000, and increasing appropriations for capital development loans by the same amount. A detailed description of these transactions is provided in Attachment A. S:\CMO\2011 Council Agendas\M111212\S1112124.doc