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HomeMy WebLinkAboutItem 4 - URA/Supp.Budget 1EUGENE URBAN RENEWAL AGENCY AGENDA ITEM SUMMARY Public Hearing and Action: Resolution 1033 Adopting a Supplemental Budget: Making Appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year Beginning July 1, 2004, and Ending June 30, 2005 Meeting Date: December 6, 2004 Agenda Item Number: 4 Department: Central Services Staff Contact: Kitty Murdoch www. cl. eugene, or. us Contact Telephone Number: 682-5860 ISSUE STATEMENT Approval of the first Supplemental Budget for FY05 by the Eugene Urban Renewal Agency Board is requested. Oregon Local Budget Law (ORS 294.480) allows for supplemental budgets for "an occurrence...which had not been ascertained at the time of the preparation of a budget for the current year..." Supplemental Budget #1 consists of $1.46 million in proposed changes to the FY05 Adopted Budget. A brief description of each proposed transaction is attached. This supplemental budget does not authorize any increased property tax levy. BACKGROUND The proposed changes for this Supplemental Budget include the following transactions: Transactions Related to Working Capital Grove, Mueller & Swank P.C., the City's external auditor, has completed its audit for FY04 and the City's Financial Reporting staff has completed the draft of the FY04 Comprehensive Annual Financial Report. Based on audited FY04 actual revenues and expenditures, staff determined the FY05 Actual Beginning Working Capital for all funds. The FY05 Actual Beginning Working Capital was then reconciled with the FY05 Budgeted Beginning Working Capital, and the difference between the Budgeted and Actual Beginning Working Capital is the audit adjustment being recognized on this Supplemental Budget. These transactions are noted in Attachment A. Other Transactions of Note · Appropriates $645,000 to demolish the Sears Building. · Recognizes loan proceeds received from McKenzie-Willamette Medical Center, and sends $500,000 to the City of Eugene to support the initial design phase of the Patterson Street Underpass. · Appropriates $338,409 from Balance Available to the Commercial Revitalization Loan Program for the Downtown Urban Renewal District. L:\CMO\2004 Council Agendas\M041206\S0412064.doc Reduces the debt service budgeted for interest payments by $136,350 due to the July 1, 2004, repayment of the remaining loan balance from the Facilities and Fleet Services Fund for the acquisition of the Chiquita site. In some cases, expenditure authority is needed immediately to carry out City Council direction or to meet legal or program requirements. Approval of Supplemental Budget #1 in December allows the organization to prepare more accurate mid-year projections by having the general ledger reflect the audited balances in each fund. This, in turn, enables staff to more accurately project the Beginning Working Capital for the next year's proposed budget. RELATED CITY POLICIES Not applicable. COUNCIL OPTIONS Particular requests requiring more information or discussion may be removed from the supplemental budget and delayed for action until the second supplemental budget in March. In certain cases there may be a financial or legal impact to delaying budget approval. Council may also adopt amended appropriation amounts or funding sources for specific requests in the supplemental budget. CITY MANAGER'S RECOMMENDATION Staff recommends approval of the attached resolution adopting the Supplemental Budget. SUGGESTED MOTION Move to approve Resolution 1033 adopting a Supplemental Budget; making appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year beginning July 1, 2004 and ending June 30, 2005. ATTACHMENTS A. Transaction Summary B. Resolution FOR MORE INFORMATION Staff Contact: Kitty Murdoch Telephone: 682-5860 Staff E-Mail: kitty.m.murdoch~ci.eugene.or.us L:\CMO\2004 Council Agendas\M041206\S0412064.doc Attachment A Transaction Summary 817 Urban Renewal Agency General Fund FY05 FY05 FY05 Adopted SB1 Action Revised I. RESOURCES BEGINNING WORKING CAPITAL 1,337,713 645,709 a 1,983,422 CHANGE TO WORKING CAPITAL REVENUE Miscellaneous 76,644 0 76,644 Interfund Transfers 271,964 0 271,964 Fiscal Transactions 48,790 0 48,790 Total Revenue 397,398 0 397,398 TOTAL RESOURCES 1,735,111 645,709 2,380,820 I1. REQUIREMENTS Department Operating Planning and Development 271,964 0 271,964 Total Department Operating 271,964 0 271,964 Non-Departmental Misc. Fiscal Transactions 1,417,817 338,409 b 1,756,226 Balance Available 45,330 307,300 a,b 352,630 Total Non-Departmental 1,463,147 645,709 2,108,856 TOTAL REQUIREMENTS 1,735,111 645,709 2,380,820 817 Urban Renewal Agency General Fund This supplemental request increases the budgeted Beginning Working Capital by $645,709 and increases balance available by the same amount. The increase brings the FY05 Budgeted Beginning Working Capital in compliance with the audited FY04 actual revenues and expenditures as determined by Grove, Mueller & Swank P.C., the City's external auditor. This supplemental request moves $338,409 from Balance Available to the Commercial Revitalization Loan Program for the Downtown Urban Renewal District. *RFE=(Reserve for Encumbrance) These changes were approved by Council Resolution 4779 on October 27, 2003. 812 Urban Renewal Agency Debt Service FY05 FY05 FY05 Adopted SB1 Action Revised I.RESOURCES BEGINNING WORKING CAPITAL 3,262,502 118,705 a 3,381,207 CHANGE TO WORKING CAPITAL REVENUE Taxes 3,780,000 0 3,780,000 Miscellaneous 75,500 0 75,500 Total Revenue 3,855,500 0 3,855,500 TOTAL RESOURCES 7,118,002 118,705 7,236,707 II. REQUIREMENTS Department Operating Planning and Development 0 0 0 Total Department Operating 0 0 0 Capital Projects Capital Projects 0 645,000 b 645,000 Cap. Carryover (Budget only) 0 0 0 Total Capital Projects 0 645,000 645,000 Non-Departmental I nterfu nd Transfers 271,964 0 271,964 Intergovernmental Expend. 2,345,000 2,345,000 Reserve 4,501,038 (2,001,038) b 2,500,000 Balance Available 0 1,474,743 a,b 1,474,743 Total Non-Departmental 7,118,002 (526,295) 6,591,707 TOTAL REQUIREMENTS 7,118,002 118,705 7,236,707 812 Urban Renewal Agency Debt Service a) This supplemental request increases the budgeted Beginning Working Capital by $118,705 and increases Balance Available by the same amount. The increase brings the FY05 Budgeted Beginning Working Capital in compliance with the audited FY04 actual revenues and expenditures as determined by Grove, Mueller & Swank P.C., the City's external auditor. b) This transaction increases capital projects for the expected costs of the Sears Demolition ($645,000) and reduces the Debt Service Reserve by the same amount. An additional $1,356,038 is removed from the Debt Service Reserve and moved to Balance Available to reflect the amended Downtown Urban Renewal Plan that allows tax increment funds to be spent on a wide range of downtown projects. 821 Riverfront General Fund FY05 FY05 FY05 Adopted SB1 Action Revised I. RESOURCES BEGINNING WORKING CAPITAL 83,507 380,441 a 463,948 CHANGE TO WORKING CAPITAL REVENUE Taxes 470,000 0 470,000 Rental 0 24,480 b 24,480 Miscellaneous 15,000 (7,000) b 8,000 Fiscal Transactions 0 500,000 c 500,000 Total Revenue 485,000 517,480 1,002,480 TOTAL RESOURCES 568,507 897,921 1,466,428 II. REQUIREMENTS Department Operating Planning and Development 119,757 30,000 b 149,757 Total Department Operating 119,757 30,000 149,757 Capital Projects Total Capital Projects 0 0 0 Non-Departmental Interfund Transfers 448,750 83,836 b 532,586 Intergovernmental Expend. 0 500,000 c 500,000 Balance Available 0 284,085 a,b 284,085 Total Non-Departmental 448,750 867,921 1,316,671 TOTAL REQUIREMENTS 568,507 897,921 1,466,428 821 Riverfront General Fund a) This supplemental request increases the budgeted Beginning Working Capital by $380,441 and increases the Balance Available by the same amount. The increase brings the FY05 Budgeted Beginning Working Capital in compliance with the audited FY04 actual revenues and expenditures as determined by Grove, Mueller & Swank P.C., the City's external auditor. b) This request transfers $83,836 to the Riverfront Capital Projects Fund, reduces interest earnings by $7,000, allocates $30,000 to professional services for legal advice. The request also recognizes additional rental income of $24,480 and reduces Balance Available by $96,356 to offset the changes. c) This action recognizes loan proceeds expected to be received from McKenzie Willamette Medical Center and sends $500,000 to the City of Eugene to support the initial design phase of the Patterson Street Underpass. 823 Riverfront Capital Projects Fund FY05 FY05 FY05 Adopted SB1 Action Revised I. RESOURCES BEGINNING WORKING CAPITAL 2,879,362 (213,924) a 2,665,438 CHANGE TO WORKING CAPITAL REVENUE Miscellaneous 75,000 (73,000) b 2,000 Interfund Transfers 448,750 83,836 b 532,586 Total Revenue 523,750 10,836 534,586 TOTAL RESOURCES 3,403,112 (203,088) 3,200,024 I1. REQUIREMENTS Capital Projects Capital Projects 0 0 0 Cap. Carryover (Budget only) 747,960 (47,936) c 700,024 Total Capital Projects 747,960 (47,936) 700,024 Non-Departmental Debt Service 2,636,350 (136,350) b 2,500,000 Balance Available 18,802 (18,802) a,b,c 0 Total Non-Departmental 2,655,152 (155,152) 2,500,000 TOTAL REQUIREMENTS 3,403,112 (203,088) 3,200,024 823 Riverfront Capital Projects Fund a) This supplemental request decreases the budgeted Beginning Working Capital by $213,924 and decreases balance available by the same amount. The increase brings the FY05 Budgeted Beginning Working Capital in compliance with the audited FY04 actual revenues and expenditures as determined by Grove, Mueller & Swank P.C., the City's external auditor. b) This request recognizes transfer revenue from the Riverfront General Fund, reduces interest earnings by $73,000 and debt service ($136,350) due to the July 1,2004 repayment of the loan from the City of Eugene's Facilities and Fleet Fund, and increases Balance Available by $147,186. c) This supplemental request decreases the capital carryover by $47,936 and increases balance available by the same amount. This increase reconciles the FY05 Capital Carryover Estimate to the actual ending FY04 capital projects balance and carryforward. Resolution Number A RESOLUTION ADOPTING A SUPPLEMENTAL BUDGET; MAKING APPROPRIATIONS FOR THE URBAN RENEWAL AGENCY OF THE CITY OF EUGENE FOR THE FISCAL YEAR BEGINNING JULY 1, 2004, AND ENDING JUNE 30, 2005. The Urban Renewal Agency of the City of Eugene finds that adopting the Supplemental Budget and making appropriations is necessary under ORS 294.480. NOW THEREFORE, BE IT RESOLVED BY THE URBAN RENEWAL AGENCY OF THE CITY OF EUGENE as follows: Section 1. That the Supplemental Budget for the Urban Renewal Agency of the City of Eugene, Oregon, for the fiscal year beginning July 1, 2004, and ending June 30, 2005, as set forth in attached Exhibit "A" is hereby adopted. Section 2. The supplemental amounts for the fiscal year beginning July 1~ 2004, and ending June 30, 2005, and for the purposes shown in attached Exhibit "A" are hereby appropriated. Section 3. That this Supplemental Budget is prepared in accordance with ORS 294.480(1)(a), which authorizes the formulation of a supplemental budget resulting from "An occurrence or condition which had not been ascertained at the time of the preparation of a budget for the current year or current budget period which requires a change in financial planning." This Supplemental Budget was published in accordance with ORS 294.480(4). Section 4. This resolution complies with ORS 294.480(5), and does not authorize an increase in the levy of property taxes above the amount published in the Annual Budget publication. The foregoing resolution adopted this 6th day of December 2004. Director EXHIBIT "A" In dollars URBAN RENEWAL AGENCY GENERAL FUND Non-Departmental * Balance Available 307,300 Miscellaneous Fiscal Transactions 338,409 Total Non -Departmental 645,709 TOTAL URA GENERAL FUND 645,709 URBAN RENEWAL AGENCY DEBT SERVICE FUND Capital Projects Capital Projects 645,000 Total Capital Projects 645,000 Non-Departmental * Reserves (2,001,038) * Balance Available 1,474,743 Total Non-Departmental (526,295) TOTAL URA DEBT SERVICE FUND 118,705 URBAN RENEWAL AGENCY RIVERFRONT FUND Departmental Operating Planning and Development 30,000 Total Departmental Operating 30,000 Non-Departmental Interfund Transfer 83,836 * Balance Available 284,085 I ntergovernm ental Expenditures 500,000 Total Non-Departmental 867,921 TOTAL URA RIVERFRONT FUND 897,921 URBAN RENEWAL AGENCY RIVERFRONT CAPITAL PROJECTS FUND Capital Projects Capital Projects (47,936) Total Capital Projects (47,936) Non-Departmental Debt Service (136,350) * Balance Available (18,802) Total Non-Departmental (155,152) TOTAL UPA RIVERFRONT CAPITAL PROJECTS FUND (203,088) TOTAL REQUIREMENTS -ALL FUNDS 1,459,247 * Reserves and Balance Available amounts are not appropriated for spending and are shown for information purposes only.