Item 3C: Adoption of Resolution Acknowleding CAFR

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CITY OF EUGENE, OREGON Notes to Basic Financial Statements (3) Stewardship, Compliance, and Accountability, continued (A) Budgetary Information, continued 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, intergovernmental, and miscellaneous fiscal transactions. 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 $18,032,188. (B) Deficit Fund Balances and Overexpenditures of Appropriations On November 4, 2008, Eugene voters passed Measure 20-145, authorizing the City to issue $35.9 million in general obligation bonds for street preservation. Prior to the issuance of the bonds, the City borrowed $485,000 from a short term revolving credit facility for transportation capital projects. As a result, the General Obligation Debt Service Fund experienced a deficit balance of $458,350. The deficit will be eliminated in FY10 when the revolving credit facility is repaid from general property tax revenues. For the year ended June 30, 2009, the General Obligation Debt Service Fund had budget-basis expenditures in excess of legal appropriations of $169,897. (4) Detailed Notes on All Funds (A) Equity in Pooled Cash and Investments The City maintains a common cash and investments pool that is available for use by all funds. Each fund’s portion of this pool is displayed in the Statement of Net Assets, the Statement of Fund Net Assets, or the Balance Sheet as "Equity in pooled cash and investments.” Cash and investments are comprised of the following at June 30, 2009: Cash on hand $ 56,634 Deposits with banks 19,158,818 Investments 153,732,524 $ 172,947,976 continued