Item 5: FY11 URA Supplemental Budget (2)

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EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Action: Adoption of Resolution 1060 Adopting a Supplemental Budget; Making Appropriations for the Urban Renewal Agency for the Fiscal Year Beginning July 1, 2010 and Ending June 30, 2011 Meeting Date: June 27, 2011 Agenda Item Number: 5 Department: Central Services Staff Contact: Pavel Gubanikhin www.eugene-or.gov Contact Telephone Number: (541) 682-5512 ISSUE STATEMENT The Urban Renewal Agency Board is required to take action on this item. Urban Renewal Agency Board approval of the second Supplemental Budget for FY11 is requested. Oregon Local Budget Law (ORS 294.480) allows for supplemental budgets for "an occurrence...which had not been ascertained at the time of the preparation of a budget for the current year...”. This Supplemental Budget consists of $3,400,000 in proposed changes to the FY11 Budget. A description of the proposed transaction is provided in Attachment A. This supplemental budget does not authorize any increased property tax levy. BACKGROUND Supplemental Budgets recognize new revenue and authorize other unanticipated changes in legal appropriations during a fiscal year. An Urban Renewal Agency Board public hearing on this supplemental budget resolution was held on June 20, 2011. The Urban Renewal Agency Board adopted resolution 1059 in April of 2011 authorizing issuance of Urban Renewal Bonds to: (1) make a portion of the $8 million pledge to Lane Community College (LCC) for the Downtown Campus project and (2) refinance the Parking Bonds to achieve interest rate savings. The FY11 budget anticipated issuance of up to $4.5 million to fund the LCC project, but did not anticipate the Parking Bonds refinancing. The supplemental budget request increases the amount of bonds issued and the intergovernmental payment to the City’s parking fund to account for the refinancing. In addition, the bank that purchased the Urban Renewal Bonds did not require a debt service reserve as security for the financing, so funds set aside in the FY11 budget for a reserve were used instead to reduce the total amount of borrowing needed to accomplish the projects. RELATED CITY POLICIES This transaction conforms to the City’s Financial Management Goals and Policies. AGENCY OPTIONS Particular requests requiring more information or discussion may be removed from the supplemental budget and delayed for action in a future supplemental budget. In certain cases, there may be a financial \\Cesrv500\cc support\CMO\2011 Council Agendas\M110627\S1106275a.doc