Item 5 - Adoption of FY13 URA Supplemental Budget

Home Browse Search

EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Public Hearing and Action: Resolution Adopting a Supplemental Budget; Making Appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year Beginning July 1, 2012 and Ending June 30, 2013 Meeting Date: December 10, 2012 Agenda Item Number: 5 Department: Central Services Staff Contact: Mia Cariaga www.eugene-or.gov Contact Telephone Number: (541) 682-5408 ISSUE STATEMENT Urban Renewal Agency Board approval of the first Supplemental Budget (SB1) for Fiscal Year 2013 (FY13) is requested. Oregon Local Budget Law (ORS 294.471) allows for supplemental budgets in the event of “an occurrence or condition that is not ascertained when preparing the original budget or a previous supplemental budget for the current year.” ORS 294.471 also allows for a supplemental budget if there are “funds that are made available by another unit of federal, state or local government and the availability of which could not reasonably be foreseen when preparing the original budget.” This Supplemental Budget does not authorize any increase in the property tax levy and has been published in compliance with the Oregon Local Budget Law. BACKGROUND The Supplemental Budget that occurs in December of a fiscal year is usually the largest because of the audit adjustments to budgeted Beginning Working Capital and the reappropriation of funds from the prior fiscal year for program initiatives or projects that were started but not completed in that fiscal year. This Supplemental Budget consists of transactions to amend the Urban Renewal Agency budget to reconcile Beginning Working Capital and Capital Carryover, and to increase appropriations for the Downtown Revitalization Loan Program (DLRP). For this Supplemental Budget, the proposed changes fall into the following categories: Transactions Related to Beginning Working Capital Isler & Company, LLC, the Urban Renewal Agency's external auditor, has completed its Fiscal Year 2012 (FY12) audit, and this Supplemental Budget includes Marginal Beginning Working Capital (MBWC) adjustments for all URA funds. The MBWC is the difference between the estimated and audited actual FY12 revenues and expenditures. The total audited adjustment to the FY13 budgeted Beginning Working Capital for all URA funds is an increase of $137,961. Downtown Loan Program Increase This Supplemental Budget includes an increase in the DLRP for commercial revitalization projects in the amount of $499,421. Of this amount, $275,000 comes from an intergovernmental payment from the City of Eugene’s General Fund. The remaining $224,421 comes from the MBWC in the URA Downtown General Fund. These appropriations are part of the City’s Economic Prosperity Plan. S:\CMO\2012 Council Agendas\M121210\S1212105.doc