Agenda Packet 12-9-19 Meeting - Laserfiche WebLink

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URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements continued (2) Reconciliation of Government-wide and Fund Financial Statements, continued (B) Explanation of Certain Differences Between the Government-wide Statement of Activities and the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances The Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities is provided at Exhibit 5. The following are selected elements of that reconciliation: Capital outlays are reported as expenditures in governmental funds. However, the Statement of Activities allocates the cost of capital outlays over their estimated useful lives as depreciation expense. The details of this $3,083,295 difference are as follows: Capital outlay $ 3,083,295 Net adjustment $ 3,083,295 Governmental funds defer revenues that do not provide current financial resources. However, the Statement of Activities recognizes such revenue at their net realizable value when earned, regardless of when collected. The details of this $271,095 difference are as follows: Change in unavailable revenue from the following sources: Property taxes receivable $ (48,394) Notes receivable 383,673 Subtotal 335,279 Change in the allowance for doubtful receivables (64,184) Net adjustment $ 271,095 Transfers of capital assets between different entities sometimes occur. Such transfers will provide or use economic resources, but may not necessarily provide or use spendable financial resources in governmental funds. The details of this $1,810,399 difference are as follows: Transfers of Capital assets to City of Eugene $ (1,810,399) (3) Stewardship, Compliance, and Accountability (A) Budgetary Information The City Manager (acting as the Agency Director) submits to the City Council of Eugene (acting as the Urban Renewal Agency Board under provisions of Oregon Revised Statute 457.460) a proposed operating and capital budget a sufficient length of time in advance to allow adoption of the budget prior to July 1. Prior to July 1, the Agency legally adopts its annual budget for all funds through passage of a resolution. The resolution authorizes fund appropriations as current annual departmental requirements, debt service, capital outlay, interfund transfers, interfund loans, intergovernmental, and special payments. Expenditures cannot legally exceed appropriations at these control levels. Appropriations which have not been spent at year-end lapse, although an amending resolution passed in the subsequent year specifically provides for the reappropriation of prior-year lapsed encumbrances. 26 December 9, 2019, Meeting - Item 3CC Agenda - Page 266