Item 5: PH and Action - FY09 URA Budget

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The Budget Committee recommendation was moved by Mr. Barofsky and seconded by Ms. Syrett. It was unanimously approved on May 28, 2008: Move that the Budget Committee recommend to the Eugene City Council, acting as the Urban Renewal Agency Board of Directors, a FY09 Budget for the Eugene Urban Renewal Agency that consists of the City Managers FY09 Proposed Budget, including the property tax levies and/or = rates contained therein, amended to reflect appropriations for prior year encumbrances and prior year capital projects, and the following amendments approved by motion. The Budget Committee amended the City Manager’s Proposed Budget with the following motion: “Amend the FY09 proposed budgets for the City of Eugene and the Urban Renewal Agency to include additional financial transactions required to carry out the purchase and sale agreement for the Beam project approved by the Urban Renewal Agency on May 21, 2008.” The Beam project transactions recognize $5,347,000 from HUD 108 loan resources and $1,353,000 in BEDI Grant resources received from the City of Eugene in the URA Downtown General Fund and appropriates $6.5 million for Capital Development Loans and $200,000 for legal and administrative costs. The motion also includes moving $65,000 from Balance Available in the Downtown Debt Service Fund and using the funds for an intergovernmental payment to the City of Eugene for bank service fees related to the project. Timing Under the State Statute, a budget must be approved prior to July 1, 2008 and a copy of the adopting resolution filed with the County Assessor by July 31, 2008. Other Background Information The FY09 Proposed Budget document, Budget Committee packets, information distributed at Budget Committee meetings, and Budget Committee motions are available on the City’s website. COUNCIL OPTIONS According to ORS 294.435, the Urban Renewal Agency’s governing body is limited to increasing expenditures in a fund by no more than $5,000 or 10 percent, whichever is greater, of the Budget Committee approved total in each or any fund. If a larger expenditure increase is desired, republishing the budget and conducting a second public hearing is required. The Agency Board of Directors may reduce revenues, move allocations within a fund and decrease expenditures; however all actions must result in a balanced budget, where revenues equal expenditures, for each fund. Any increase to property taxes above the rate or amount approved by the Budget Committee requires republishing the budget summary and conducting a second public hearing. If a director makes a motion to amend the budget resolutions, the motion must contain the specific appropriation line(s) being altered in the resolution and each motion must be self-balancing, meaning that a resource and a requirement must exactly offset each other. CITY MANAGER’S RECOMMENDATION The City Manager recommends adoption of the FY09 Urban Renewal Agency Budget as recommended by the Budget Committee. Z:\CMO\2008 Council Agendas\M080609\S0806095.doc