Item 5: Resolution on Receipt of FY12 URA Financial Report

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URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (5) Other Information (A) Risk Management The Agency is a participant in the City’s Risk and Benefits Internal Service Fund which accounts for and finances its risks of loss. The Risk and Benefits Fund has a self-insured liability program which covers personal injury, public official errors and omissions, automobile, and employer’s liability, with a maximum self-insured retention of $2,000,000 per occurrence. In addition, the Risk and Benefits Fund has a self- insured workers’ compensation program which covers employees’ work related illnesses and injuries, including employer’s liability, with a maximum self-insured retention of $1,000,000 per occurrence. The Agency, as a participant in the Risk and Benefits Fund, retains a portion of the risk of loss for general liability. Coverage for workers’ compensation, general liability, and employees’ medical claims in excess of the self-insurance retention limit is purchased from commercial insurers. The Risk and Benefits Fund also purchases all-risk property insurance coverage from a commercial insurer. The property insurance policy has a basic $25,000 deductible, with earthquake and flood insurance coverage subject to the following deductibles: flood - $250,000 deductible per occurrence; earthquake – 2% of the combined value of the property at the location, subject to a minimum deductible of $100,000 per location and the deductible applies separately to each location. (B) Outstanding Encumbrances At June 30, 2012, the Agency intends to honor $56 in outstanding encumbrances in the Riverfront Capital Projects Fund. (C) Prior Period Adjustment In FY09, the City contributed a vacant lot and the Urban Renewal Agency contributed $307,433 in cash to acquire three tax lots (a building and two parking lots) adjacent to the old Sears building site. In FY11, the Agency donated the parking lots and the former Sears site to Lane Community College for construction of their new downtown facility. In FY12, the remaining tax lot (the building at 942 Olive St.) was reclassed to assets held for resale ($860,160) within the Urban Renewal Agency, resulting in a $307,433 fund balance restatement and $552,727 in intergovernmental revenues from the City.