Item 4C: Adoption of Resolution on FY12 CAFR

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CITY OF EUGENE, OREGON Notes to Basic Financial Statements (3) Stewardship, Compliance, and Accountability (A) Budgetary Information The City Manager submits to the Budget Committee a proposed operating and capital budget a sufficient length of time in advance to allow adoption of the budget prior to July 1. The operating and capital budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to July 1, the City legally adopts its annual budget for all funds through passage of a resolution. The resolution authorizes fund appropriations as current annual departmental requirements, debt service, capital outlay, interfund transfers, interfund loans, intergovernmental, and miscellaneous fiscal transactions. Expenditures cannot legally exceed appropriations at these control levels. Appropriations which have not been spent at year-end lapse, although an amending resolution passed in the subsequent year specifically provides for the reappropriation of prior-year lapsed encumbrances. Unexpected additional resources or appropriations may be added to the budget through the use of a supplemental budget. A supplemental budget requires hearings before the public, publications in newspapers, and approval by the City Council. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control. Such transfers require approval by passage of a Council resolution authorizing the transfer. All budget amendments are subject to the limitations put forth in the Oregon Revised Statutes Chapters 294.305 through 294.565. Supplemental appropriations, permitted by Oregon Budget Law, were authorized by the City Council during the fiscal year. The net effect of amending resolutions passed during the fiscal year was an appropriation increase of $19,737,171. (B) Overexpenditures of Appropriations For the year ended June 30, 2012, the Parking Services Fund had budget-basis expenses in excess of legal appropriations of $171,789. (4) Detailed Notes on All Funds (A) Equity in Pooled Cash and Investments The City maintains a common cash and investments pool that is available for use by all funds. Each fund’s portion of this pool is displayed in the Statement of Net Assets, the Statement of Fund Net Assets, or the Balance Sheet as "Equity in pooled cash and investments.” Cash and investments are comprised of the following at June 30, 2012: Cash on hand$47,630 Cash with fiscal agent513,810 Deposits with banks17,477,203 Investments174,177,962 $192,216,605 Deposits At June 30, 2012, the City’s deposits with various financial institutions had a bank value of $21,176,381, which included $10,306,846 in time certificates of deposits and $513,810 held by escrow companies (cash with fiscal agent). The City’s investment policy limits investments in time certificates of deposits to 50% of the City’s total investment portfolio with a maximum length to maturity of three years. continued 48