Item 4C: Adoption of Resolution on FY12 CAFR

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The General Obligation Fire Projects Bonds, Series 2002 are insured by MBIA Insurance Corporation and were rated Aaa at issuance. Subsequent to issuance, MBIA Insurance Corporation was downgraded by Moody’s Investors Service. MBIA Insurance Corporation is currently rated as B3. Aa2 for full faith and credit obligations, which includes the Atrium Obligations, the Santa Clara Fire Station Obligations, and the Broadway Garages Limited Tax Bonds (November 2011). The pension obligation bonds are insured by Ambac Assurance and were rated Aaa at issuance. Subsequent to issuance, Ambac Assurance was downgraded by Moody’s Investors Service to Caa2. In Novemeber 2010, Moody’s Investors Service upgraded the underlying rating on Oregon Local Governments Limited Tax Pension Obligations, Series 2002 to Aa3 from A3 in conjuction with a rating methodology change related to pool financings. In April 2001, Ambac Assurance severed their relationship with Moody’s requesting that Ambac ratings be withdrawn. Moody’s ratings on securities insured by Ambac will be maintained at the published underlying rating, or Aa3. 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 $28.9 million in general obligation debt applicable to this limit is well below the $636.3 million ceiling. The City’s net direct general obligation bonded debt per capita is $181. Additional information on the City’s bonded debt can be found in the Notes to Basic Financial Statements (Note 4H). 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. Significant issues regarding governmental funds are listed below. As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $100.6 million, a decrease of $2.2 million in comparison to the prior year. Approximately 94.8% of this total amount ($95.4 million) constitutes fund balance which is available for spending at the government’s discretion, subject to reporting fund limitations. The remainder of fund balance ($5.2 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 decreased $2.9 million from $46.0 million to $43.1 million during the current fiscal year. The decrease was caused by $0.5 million in excess revenues over expenditures offset by net transfers of $3.4 million. The fund balance in the General Capital Projects Fund decreased $6.2 million from $12.4 million to $6.2 million during the current fiscal year. The decrease in the fund balance was primarily caused by a $10.9 million deficiency of revenues over expenditures offset by $2.9 million in net transfers and $1.2 million in debt proceeds. The fund balance in the Systems Development Capital Projects Fund increased $3.2 million from $5.7 million to $8.9 million during the current fiscal year. The increase was due to $5.3 million in revenues offset by $2.1 million in expenditures. . 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: $ 1.9 million (69.5%) Ambulance Transport 4.0 million (4.2%) Municipal Airport 0.1 million (0.8%) Parking Services 7.4 million (12.2%) Stormwater Utility 4.3 million (4.4%) Wastewater Utility 20