Item 5: URA - PH and Adoption of FY07 Budget

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Budget Committee Recommendation Budget Committee review consisted of six work sessions and one public hearing on the City of Eugene and the Urban Renewal Agency budgets. Public comment was received at all but the last work session. The public hearing on the budget proposal was conducted on May 15, 2006. The Budget Committee recommendation, approved on May 17, 2006, is as follows: Mr. Demboski, seconded by Mr. Poling, moved that the Budget Committee recommend to the Eugene City Council, acting as the Urban Renewal Agency Board of Directors, a fiscal year 2007 budget for the Eugene Urban Renewal Agency that consists of the City Manager’s proposed fiscal year 2007 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 amendments to the manager’s proposed fiscal year 2007 budget which have been adopted by the Budget Committee. The motion passed unanimously. One amendment was adopted by the Budget Committee: a $300,000 increase to the URA Downtown Capital Projects Fund’s Capital Budget for Farmer’s Market improvements. The improvements are funded by a $300,000 transfer from the URA Downtown Debt Service Fund and a reduction to Balance Available in the debt service fund. Under the State Statute, a budget must be approved prior to July 1, 2006, and a copy of the adopting resolution filed with the County Assessor by July 31, 2006. The FY07 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 FY07 Urban Renewal Agency Budget as recommended by the Budget Committee. L:\CMO\2006 Council Agendas\M060612\S0606125.doc