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CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />(3) Stewardship, Compliance, and Accountability, continued
<br /> (A) Budgetary Information, continued
<br />The City legally adopts its budget annually for all funds prior to July 1 through passage of a resolution. The
<br />resolution authorizes fund appropriations as current annual departmental requirements, debt service, capital
<br />outlay, interfund transfers, interfund loans, intergovernmental, and miscellaneous fiscal transactions.
<br />Expenditures cannot legally exceed appropriations at these control levels. Appropriations which have not been
<br />spent at year-end lapse, although an amending resolution passed in the subsequent year specifically provides
<br />for the reappropriation of prior-year lapsed encumbrances.
<br />Unexpected additional resources or appropriations may be added to the budget through the use of a
<br />supplementalbudget. A supplemental budget requires hearings before the public, publications in newspapers,
<br />and approval by the City Council. Original and supplemental budgets may be modified by the use of
<br />appropriation transfers between the levels of control. Such transfers require approval by passing a Council
<br />resolution authorizing the transfer. All budget amendments are subject to the limitations put forth in the Oregon
<br />Revised Statutes Chapters 294.305 through 294.565 (Oregon Budget Law). Supplemental appropriations,
<br />permitted by Oregon Budget Law, were authorized by the City Council during the fiscal year. The net effect of
<br />amending resolutions passed during the fiscal year was an appropriation increase of $28,815,212.
<br />(B) Overexpenditures of Appropriations
<br />For the year ended June 30, 2007, the Urban Renewal Agency Special Revenue Fund, the Urban Renewal
<br />Agency Debt Service Fund, and the Professional Services Internal Service Fund had budget-basis
<br />expenditures in excess of legal appropriations of $72,443, $72,425, and $13,947, respectively.
<br />(4) Detailed Notes on All Funds
<br /> (A) Equity in Pooled Cash and Investments
<br />The City maintains a common cash and investments pool that is available for use by all funds. Each fund’s
<br />portion of this pool is displayed in the Statement of Net Assets, the Statement of Fund Net Assets, or the
<br />Balance Sheet as "Equity in pooled cash and investments.” Cash and investments are comprised of the
<br />following at June 30, 2007:
<br />Cash on hand$56,179
<br />Deposits with banks17,512,651
<br />Investments166,793,153
<br />$184,361,983
<br />Deposits
<br />At June 30, 2007, the City’s deposits with various financial institutions have a bank value of $20,889,128. For
<br />deposits in excess of federal depository insurance, Oregon Revised Statutes require the depository institution
<br />to maintain on deposit with a custodian, in a collateral pool, securities having a value not less than 25% of the
<br />outstanding certificates of participation which are issued by the collateral pool manager. The certificates of
<br />participation are issued in the City’s name and are held by the City.
<br />Custodial Credit Risk
<br />Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not be
<br />returned to it. At June 30, 2007, the City has deposits of $13,379,198 insured by federal depository insurance
<br />and $4,500,000 collateralized by a minimum of 25% of the certificates of participation (per Oregon Revised
<br />Statutes). The remaining $3,009,930 is uncollateralized.
<br />continued
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