Resolution No. 5146 - Laserfiche WebLink

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The Oregon Local Governments Limited Tax Pension Obligations, Series 2002, are insured by Ambac Assurance and were rated Aaa at issuance. Subsequent to issuance, Ambac Assurance was downgraded by Moody’s Investors Service to Caa2. In January 2014, Moody’s Investors Service downgraded the underlying rating on Oregon Local Governments Limited Tax Pension Obligations, Series 2002 to A3 from Aa3 in conjunction with a rating methodology change related to pool financings. In April 2011, Ambac Assurance severed their relationship with Moody’s requesting that Ambac ratings be withdrawn. Moody’s ratings on securities insured by Ambac will be maintained at the published underlying rating, or Aa3. The pension obligations were issued as one offering for certain Oregon cities, counties, and special districts. The City of Eugene’s share of the total pension obligations on which the rating was based is 29.7%. Under Oregon Revised Statutes, general obligation debt issues are limited to 3.0% of the real market value of all taxable property within the City’s boundaries. The $19.0 million in general obligation debt applicable to this limit is well below the $656.0 million ceiling. The City’s net direct general obligation bonded debt per capita is $116. Additional information on the City’s bonded debt can be found in the Notes to Basic Financial Statements (Note 4H). Fund-based Financial Analysis As previously discussed, the City uses fund accounting to demonstrate transparency and ensure compliance with finance-related legal requirements. . Governmental funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s requirements for funding day-to-day operations. Significant issues regarding the governmental funds are listed below. As of the end of the fiscal year, the City’s governmental funds reported a combined ending fund balance of $128.7 million, an increase of $4.9 million in comparison to the prior year. $3.8 million of the fund balance is nonspendable because it consists of the following: 1) prepaid expenditures, 2) debt service, 3) inventories, and 4) assets held for resale. The remaining $125.0 million of fund balance was classified as follows. $54.9 million was restricted due to external limits on how the resources may be used. $14.3 million was committed as a result of specific constraints placed on the use of the resources per City ordinance. $54.8 million was assigned per City Council’s intent to use these resources for a specific purpose: unappropriated ending fund balance, reserve for revenue shortfall, balancing the next year’s budget, and uncompleted capital projects are the primary components. $0.9 million was unassigned and is available to be used at the government’s discretion, subject to fund limitations. The fund balance of the City’s General Fund decreased $2.0 million from $43.0 million to $41.0 million during the current fiscal year. The decrease in fund balance was primarily the result of a budget strategy to continue services by using reserves. The result was a $6.7 million increase in expenditures by departments, which was partially offset by a $3.8 million increase in property tax revenues. The fund balance in the Community Development Fund increased $0.1 million from $3.6 million to $3.7 million during the fiscal year. The increase was in part due to a $2.0 million increase in revolving loan repayments and a $1.8 million increase in community development loans. The fund balance in the General Capital Projects Fund increased $1.2 million from $15.9 million to $17.1 million during the fiscal year. The increase in fund balance was primarily the result of $6.8 million in transfers from the General Fund for capital projects, which included $2.4 million for the City Hall project. The fund balance in the Systems Development Capital Projects Fund increased $3.9 million from $17.0 million to $20.9 million during the fiscal year. The increase was primarily due to the accumulation of resources for future park developments. . Proprietary funds The City’s proprietary fund statements provide the same type of information found in the government-wide financial statements, but in more detail. 23