Agenda Packet 12-9-19 Meeting - Laserfiche WebLink

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 The Wastewater Utility Fund’s net position decreased $2.3 million. The primary reason for the decrease was the fund had an operating loss of $3.1 million offset by $1.1 million in capital contribution revenue. 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 FY19. As a result, the final fiscal year 2019 budget for the General Fund increased by $14.2 million. The primary reasons for this increase were as follows:  $11.5 million for one-time funding requests  $2.1 million in contractual obligations to vendors  $4.0 million in program reappropriations These changes were partially funded by increases of $0.9 million in charges for services, $0.7 million in taxes, and $0.8 million in intergovernmental revenues (grant funding). The remaining funding of $15.2 million is from a combination of unspent resources and reserves from the prior year. The difference between the budget and actual FY19 results is recorded as an adjustment to budgeted FY20 Beginning Working Capital (BWC). The FY20 BWC adjustment is an increase of $2.3 million. This means that the aggregated beginning resources for FY20 were under‐estimated by that amount when the budget was prepared in early 2019. 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 FY20 budget:  Property tax revenues were expected to increase 4.0%.  Salaries for non-represented employees and employees covered under collective bargaining agreements were expected to increase 2.0% - 2.5%.  Health benefit rates were increased by 7.5%.  Retirement costs were expected to range from 21.73% to 36.57% of payroll, depending on which pension plan the employee participates in.  Interest rates on investments were projected to be 2.5%. Requests for Information 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: Fionan Cronin, CPA Assistant Finance Director City of Eugene 100 West 10th Avenue, Suite 400 Eugene, Oregon 97401 21 December 9, 2019, Meeting - Item 2CCC Agenda - Page 65