Item 3C: Adoption of Resolution Acknowledging Receipt of the FY10 CAFR

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A3 underlying and Caa2 insured for the pension obligations. The pension obligations are insured by Ambac Assurance and were rated Aaa at issuance. Subsequent to issuance, Ambac Assurance was downgraded by Moody’s Investors Service. Ambac Assurance is currently rated as Caa2. The pension obligations were issued as one offering for certain Oregon cities, counties, and special districts. The City of Eugene’s share of the total pension obligations on which the rating was based is 29.7%. Under Oregon Revised Statutes, general obligation debt issues are limited to 3.0% of the real market value of all taxable property within the City’s boundaries. The $35.4 million in general obligation debt applicable to this limit is well below the $676.8 million ceiling. The City’s net direct general obligation bonded debt per capita is $221. Additional information on the City’s bonded debt can be found in the Notes to Basic Financial Statements (Note 4J). Fund-based Financial Analysis As previously discussed, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $96.0 million, an increase of $11.8 million in comparison to the prior year. Approximately 95.9% of this total amount ($92.1 million) constitutes fund balance which is available for spending at the government’s discretion, subject to reporting fund limitations. The remainder of fund balance ($3.9 million) is nonspendable because of the following: 1) prepaid expenditures, 2) debt service, 3) inventories, and 4) assets held for resale. The fund balance of the City’s General Fund increased $7.4 million from $32.5 million to $39.9 million during the current fiscal year. The increase was caused by a $1.8 million increase in revenues over the prior year, most notably a $4.2 million increase in tax revenues that was offset by a $1.0 million decrease in charges for services, a $0.8 million decrease in intergovernmental revenues, and a $0.5 million decrease in miscellaneous revenues. Expenditures were down $5.2 million compared to the prior year, mostly due to a $2.3 million decrease in central services expenditures, a $2.2 million decrease in police expenditures, and a $0.7 million decrease in planning and development expenditures. The fund balance in the Community Development Fund increased $0.3 million from $1.8 million to $2.1 million during the current fiscal year. The increase was primarily due to a $0.5 million increase in other financing sources offset by a $0.2 million increase in departmental expenditures. The fund balance in the General Capital Projects Fund increased $6.5 million from $5.3 million to $11.8 million during the current fiscal year. The increase in the fund balance was primarily caused by $19.3 million in transfers, offset by $13.5 million in capital outlay expenditures for the purchase of the new Police facility property. The fund balance in the Systems Development Capital Projects Fund decreased $0.3 million from $5.6 million to $5.3 million during the current fiscal year. The decrease was due to current year expenditures of $3.0 million, which were in excess of current year revenues requiring the utilization of $0.3 million in resources accumulated in prior years. Proprietary funds. The City’s proprietary fund statements provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets and its percent to total net assets of each proprietary fund are as follows: $ 0.6 million (39.2%) Ambulance Transport 4.4 million (4.7%) Municipal Airport 1.1 million (6.8%) Parking Services 8.3 million (15.1%) Stormwater Utility 2.9 million (2.9%) Wastewater Utility Total business-type net assets increased $10.0 million in the current fiscal year. Significant issues regarding proprietary funds are as follows: The Ambulance Transport Fund reported a $0.7 million increase in net assets. The increase was mainly due to $1.0 million in operating income that was offset by $0.3 million in transfers out.