Item 4C: Adoption of Resolution on FY12 CAFR

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Total business-type net assets increased $2.8 million in the current fiscal year. Significant issues regarding proprietary funds are as follows: The Municipal Airport Fund reported a $0.5 million decrease in net assets. The decrease was due to a $4.1 million operating loss offset by $3.5 million in contributions related to FAA grants. The Parking Services Fund reported a $0.7 million decrease in net assets. The decrease was due to a $0.6 million operating income offset by $1.3 million in transfers out. The Stormwater Utility Fund reported a $4.9 million increase in net assets. The increase was principally due to $0.9 million in operating income and $4.0 million in capital contributions. The Wastewater Utility Fund reported a $1.0 million decrease in net assets. The decrease was mainly due to $1.4 million in operating losses that were offset by $0.4 million in capital contributions. Other factors concerning the finances of proprietary funds can be found in the previous discussion of the City’s business-type activities. General Fund Budgetary Highlights The City’s final budget differs from the original budget in that it contains carry-forward appropriations for various programs and projects, and supplemental appropriations approved during the fiscal year. The final fiscal year 2012 budget for the General Fund was increased by $10.3 million. The primary reasons for this increase are a $3.5 million increase for grant-funded activities, $3.1 million in carry-forward appropriations, $1.4 million transfer for capital projects, $0.9 million for fire dispatch, and $0.5 million for Buckley House and gang prevention. These changes were funded primarily by an increase of $3.5 million in intergovernmental revenues, $0.9 million in charges for services, and $5.9 million in unspent resources from the prior year. The net decrease of $3.2 million in budget-basis fund balance for the year ended June 30, 2012 was better than the projected deficit of $10.3 million in the General Fund final amended budget. The $7.1 million difference was as a result of department under spending offset by revenues and transfers in coming in lower than budget by $1.0 million and $0.6 million, respectively. The unspent budget will be re-appropriated in the 2013 budget as follows: $1.6 million for grants, $1.1 million for contractual obligations to vendors, $0.8 million for program reappropriations, and the remainder will be will be placed in the reserve for revenue shortfall. Economic Factors and Next Year’s Budgets and Rates During the preparation of the budget for the ensuing fiscal year, the long-term impacts of the local economy were examined in conjunction with business decisions made by the City. The following are the major assumptions used in developing the FY 2013 budget: Property tax revenue is expected to increase 2.5% in FY 2013. Salaries for non-represented employees will remain unchanged, the other collectively bargained agreements will increase 2.0% - 3.0%. Health benefit rates will increase by 5.5%. PERS and OPSRP costs are expected to be 25.5% and 21.7% - 24.4% of payroll, respectively. Interest rates on investments will be 0.50%. Requests for Information This financial report is designed to provide a general overview of the City’s finances for those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: Fionan Cronin, CPA Assistant Finance Director City of Eugene th Avenue, Suite 400 100 West 10 Eugene, Oregon 97401 21