Resolution No. 5176 - Laserfiche WebLink

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Total business-type net position (excluding the consolidation of internal service fund activities) decreased $7.9 million in the fiscal year. The decrease in net position was primarily due to a $19.6 million increase in pension expense that was offset by a $2.5 million increase in operating revenues. Significant issues regarding proprietary funds are as follows: The Ambulance Transport Fund had a negative net position of $3.2 million. The net deficit is the result of a $4.1 million increase in the Fund’s pension liability, which went from a $1.2 million pension asset to a $2.9 million pension liability. The Wastewater Utility Fund had a negative change in net positon of $5.5 million. The negative change is the result of a $7.4 million increase in the Fund’s pension liability, which went from a $2.3 million pension asset to a $5.1 million pension liability. Other factors concerning the finances of proprietary funds can be found in the previous discussion of the City’s business-type activities. General Fund Budgetary Highlights The City’s final General Fund budget differs from the original budget in that it contains carry-forward appropriations for various programs and projects, and supplemental appropriations approved during FY 2016. As a result, the final fiscal year 2016 budget for the General Fund increased by $3.8 million. The primary reasons for this increase were as follows: $2.3 million in contractual obligations to vendors $1.5 million for one-time funding requests These changes were partially funded by increases of $1.2 million in taxes, $1.0 million in intergovernmental revenues (grant funding), $0.5 million in charges for services, and $0.1 million in fines and forfeitures. The remaining funding of $1.0 million is from unspent resources from the prior year. The difference between the budget and actual FY16 results is recorded as an adjustment to budgeted FY17 Beginning Working Capital (BWC). The FY17 BWC adjustment is an increase of $20.3 million. This means that the aggregated beginning resources for FY17 were underestimated by that amount when the budget was prepared in early 2016. The under-estimate was primarily due to a legal settlement on franchise fees of $18.75 million. Economic Factors and Next Year’s Budgets and Rates During the preparation of the budget for the ensuing fiscal year, the long-term impacts of the local economy were examined in conjunction with business decisions made by the City. The following were the major assumptions used in developing the FY17 budget: Property tax revenues were expected to increase 4.5%. Salaries for non-represented employees and employees covered under collective bargaining agreements were expected to increase 2.1%. Health benefit rates were increased by 4.9%. Retirement costs were expected to range from 22.05% to 29.5% of payroll, depending on which pension plan the employee participates in. Interest rates on investments were projected to be 1.60%. for Information Requests This financial report is designed to provide a general overview of the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: Douglas Lauderbach, CPA Financial Reporting Manager, AIC City of Eugene th Avenue, Suite 400 100 West 10 Eugene, Oregon 97401 23