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

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URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (5) Other Information (A) Risk Management The Agency is a participant in the City’s Risk and Benefits Internal Service Fund which accounts for and finances its risks of loss. The Risk and Benefits Fund has a self-insured liability program which covers personal injury, public official errors and omissions, automobile, and employer’s liability, with a maximum self-insured retention of $500,000 per occurrence. In addition, the Risk and Benefits Fund has a self- insured workers’ compensation program which covers employees’ work related illnesses and injuries, including employer’s liability, with a maximum self-insured retention of $500,000 per occurrence. The Agency, as a participant in the Risk and Benefits Fund, retains a portion of the risk of loss for general liability. Coverage for workers’ compensation, general liability, and employees’ medical claims in excess of the self-insurance retention limit is purchased from commercial insurers. The Risk and Benefits Fund also purchases all risk property insurance coverage from a commercial insurer. The property insurance policy has a basic $25,000 deductible, however, earthquake and flood insurance coverage were subject to $250,000 deductible per occurrence. During the previous three fiscal years, there were two general liability claims that exceeded the insurance coverage levels. (B) Commitments Pursuant to an intergovernmental agreement between the City and the Agency, the Agency’s tax increment revenues are to be used to provide funding resources to the City to cover debt service associated with the certificates of participation (COPs) issued by the City to finance the construction of a library. If the Agency’s revenues exceed the debt service requirements, such excess may be disbursed to the City to pay other obligations incurred for the library project. During the fiscal year, $2,441,542 in payments were made to the City to cover debt service. The payments are reported as intergovernmental expenditures in the Agency’s Debt Service Fund. Annual debt service requirements to maturity for the City’s Library COPs are as follows: Year ending June 30PrincipalInterest 2008$2,100,000280,000 20092,200,000172,500 20102,350,000 58,750 Total$6,650,000511,250 (C) Outstanding Encumbrances Encumbrances outstanding at June 30, 2007 which the Agency intends to honor are $39,944 and $56 in the Capital Projects and Riverfront Capital Projects Funds, respectively. îç