Agenda Packet 12-9-19 Meeting - Laserfiche WebLink

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CITY OF EUGENE, OREGON Notes to Basic Financial Statements (2) Reconciliation of Government-wide and Governmental Fund Financial Statements, continued (B) Explanation of Differences Between the Government-wide Statement of Activities and the Statement of Revenues, Expenditures, and Changes in Fund Balances, continued Repayments of long-term debt use current financial resources and are reported as expenditures in governmental funds. The payment of debt principal affects the Statement of Activities and is reported as a decrease in noncurrent liabilities in the Statement of Net Position. The details of this $28,410,607 difference are as follows: Issuance of general obligation bonds $ (42,368,967) Principal payments: General obligation debt $ 13,754,360 Notes payable 204,000 Subtotal 13,958,360 Net adjustment $ (28,410,607) Transfers of capital assets are often made between proprietary funds and governmental funds when the use of an asset changes. Transfers of liabilities are sometimes made between proprietary funds and governmental funds when the fund responsible for repayment changes. Such transfers will provide or use economic resources in proprietary funds but may not necessarily provide or use spendable financial resources in governmental funds. Transfer of governmental capital assets to proprietary funds $ (539,111) (3) Stewardship, Compliance, and Accountability (A) Budgetary Information The City Manager submits to the Budget Committee a proposed operating and capital budget a sufficient length of time in advance to allow adoption of the budget prior to July 1. The operating and capital budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain community comments. Prior to July 1, the City 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, 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. Unexpected additional resources or appropriations may be added to the budget through the use of a supplemental budget. A supplemental budget requires hearings before the public, publications in newspapers, and approval by the City Council. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control. Such transfers require approval by passage of a Council resolution authorizing the transfer. All budget amendments are subject to the limitations put forth in the Oregon Revised Statutes Chapters 294.305 through 294.565. Supplemental appropriations, permitted by Oregon Budget Law, were authorized by the City Council during the fiscal year. The net effect of amending resolutions passed during the fiscal year was an appropriation increase of $30,946,121. (B) Deficit Net Position The Ambulance Transport Enterprise Fund and the Professional Services Internal Service Fund have a deficit net position of $6,083,887 and $4,432,069, respectively. The deficit net position is the result of the recognition of each fund’s proportionate share of the City’s net pension and OPEB liabilities. (C) Overexpenditures of Appropriations For the year ended June 30, 2019, the Construction and Rental Housing Fund and the Parking Services Fund had budget-basis expenses in excess of legal appropriations of $18,133 and $35,495, respectively. 47 December 9, 2019, Meeting - Item 2CCC Agenda - Page 91