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URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />(4) Detailed Notes on All Funds, continued
<br />(D) Noncurrent Liabilities, continued
<br />Annual debt service requirements to maturity for the tax increment bonds are as follows:
<br />Fiscal year
<br />ending June 30PrincipalInterest
<br />2012$717,000410,800
<br />2013754,000373,516
<br />2014794,000334,308
<br />2015835,000293,020
<br />2016878,000249,600
<br />2017-20203,922,000517,348
<br />$7,900,0002,178,592
<br />(5) Other Information
<br /> (A) Risk Management
<br />The Agency is a participant in the City’s Risk and Benefits Internal Service Fund which accounts for and
<br />finances its risks of loss. The Risk and Benefits Fund has a self-insured liability program which covers
<br />personal injury, public official errors and omissions, automobile, and employer’s liability, with a maximum
<br />self-insured retention of $2,000,000 per occurrence. In addition, the Risk and Benefits Fund has a self-
<br />insured workers’ compensation program which covers employees’ work related illnesses and injuries,
<br />including employer’s liability, with a maximum self-insured retention of $1,000,000 per occurrence.
<br />The Agency, as a participant in the Risk and Benefits Fund, retains a portion of the risk of loss for general
<br />liability. Coverage for workers’ compensation, general liability, and employees’ medical claims in excess
<br />of the self-insurance retention limit is purchased from commercial insurers. The Risk and Benefits Fund
<br />also purchases all-risk property insurance coverage from a commercial insurer. The property insurance
<br />policy has a basic $25,000 deductible, with earthquake and flood insurance coverage subject to the
<br />following deductibles: flood - $250,000 deductible per occurrence; earthquake – 2% of the combined
<br />value of the property at the location, subject to a minimum deductible of $100,000 per location and the
<br />deductible applies separately to each location.
<br /> (B) Commitments
<br />In September 2010, the City and the Agency entered into an intergovernmental agreement whereby a
<br />portion of the Agency’s tax increment revenues are to be used to provide resources to cover debt service
<br />associated with the limited tax bonds issued by the City to finance construction of the Broadway Garages.
<br />During the current fiscal year, the Agency’s Debt Service Fund recorded intergovernmental expenditures
<br />of $740,506 to pay the annual principal and interest payments on the debt.
<br />On May 25, 2011, the Agency issued Tax Increment Bonds to refund the remaining $4.4 million debt. See
<br />note (4)(D) for additional information on the Tax Increment debt.
<br /> (C) Outstanding Encumbrances
<br />At June 30, 2011, the Agency intends to honor $56 in outstanding encumbrances in the Riverfront Capital
<br />Projects Fund.
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