Item 5: URA - Resolution Acknowledging Receipt of FY07 Financial Report

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Management’s Discussion and Analysis The management of the Urban Renewal Agency (Agency), a component unit of the City of Eugene, Oregon presents this narrative overview and analysis to facilitate both a short and a long-term analysis of the financial activities of the Agency for the fiscal year ended June 30, 2007. This Management’s Discussion and Analysis (MD&A) is based on currently known facts, decisions, and conditions that existed as of the date of the independent auditors’ report. Financial Highlights The net assets of the Agency (assets less liabilities) at June 30, 2007 were $18,606,329. Of this amount, $13,044,734 is unrestricted. At June 30, 2007, the Agency’s governmental funds reported combined ending fund balances of $12,514,732. Of that amount, $10,108,571 is unreserved and available for spending at the Agency’s discretion. The General Fund’s unreserved fund balance is $2,051,882 at the end of the current fiscal year. General Fund expenditures for the current fiscal year were $588,525. Overview of the Financial Statements The following discussion and analysis is intended to serve as an introduction to the Agency’s basic financial statements. The Agency’s basic financial statements are comprised of three components: 1. Government-wide financial statements 2. Fund financial statements 3. Notes to the basic financial statements . Government-wide financial statements The government-wide financial statements are designed to provide readers with a broad overview of the Agency’s finances, in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of the Agency’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Agency is improving or deteriorating. The Statement of Activities presents information showing how the Agency’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Examples of such items include earned, but uncollected, property taxes. The Agency focuses on planning and development activities within the boundaries of the two urban renewal districts in the City of Eugene. Both government-wide financial statements provide information on these activities, which is supported mainly by property taxes. The government-wide financial statements can be found on Exhibits 1 and 2 of this report. ë