HomeMy WebLinkAboutURA Resolution No. 1078
URBAN RENEWAL AGENCY
RESOLUTION NO. 1078
A RESOLUTION ACKNOWLEDGING THE RECEIPT OFTHE ANNUAL
FINANCIAL REPORT OFTHE URBAN RENEWAL AGENCY OFTHE
CITY OF EUGENE, FOR THE FISCAL YEAR ENDED JUNE 30,2015
PASSED: 8:0
REJECTED:
OPPOSED:
ABSENT:
CONSIDERED: January 11, 2016
URBAN RENEWAL AGENCY
A Component Unit of the City of Eugene, Oregon
Annual Financial Report
Fiscal Year Ended
June 30, 2015
URBAN RENEWAL AGENCY
A Component Unit of the City of Eugene, Oregon
Annual Financial Report
Fiscal Year Ended June 30, 2015
(With Independent Auditors’ Report Thereon)
Report Prepared by the City of Eugene
Finance Division
URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
Annual Financial Report
Year Ended June 30, 2015
Table of Contents
Exhibit/
Schedule Page(s)
Principal Officials 1
Independent Auditors’ Report 3 - 5
Management’s Discussion and Analysis 7 - 11
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 1 15
Statement of Activities 2 16
Fund Financial Statements:
Balance Sheet - Governmental Funds 3 17
Statement of Revenues, Expenditures, and Changes in Fund
Balances - Governmental Funds 4 18
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities 5 19
21 - 29
Notes to Basic Financial Statements
Required Supplementary Information:
Schedules of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual:
General Fund A – 1 33
Riverfront Special Revenue Fund A – 2 34
Other Supplementary Information:
Schedules of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual:
Debt Service Fund B – 1 37
Capital Projects Fund B – 2 38
Riverfront Capital Projects Fund B – 3 39
Schedule of Property Tax Transactions B – 4 40
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URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
Annual Financial Report
Table of Contents, continued
Exhibit/
Page(s)
Schedule
Audit Comments and Disclosures:
Independent Auditors’ Report Required by Oregon State Regulations 45 - 46
ii
URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
Principal officials as of June 30, 2015
Name Term Expires
Mayor: Kitty Piercy January 2017
Board
Members:George Brown January 2017
Betty Taylor January 2017
Alan Zelenka January 2019
George Poling January 2019
Mike Clark January 2019
Greg Evans January 2019
Claire Syrett January 2017
Chris Pryor January 2017
Director:Jon R. Ruiz
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2
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor, Members of the Urban
Renewal Agency Board and Administrator of the
Urban Renewal Agency of the City of Eugene, Oregon
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major
fund of the Urban Renewal Agency of the City of Eugene, Oregon (“Urban Renewal Agency”) (a
component unit of the City of Eugene, Oregon) as of and for the year ended June 30, 2015, and the
related notes to the financial statements, which collectively comprise the Urban Renewal Agency’s basic
financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
1976 Garden Ave., Eugene OR 97403
541.342.5161 www.islercpa.com
3
Opinions
Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,the
respectivefinancialpositionofthegovernmentalactivitiesandeachmajorfundoftheUrbanRenewal
AgencyasofJune30,2015,andtherespectivechangesinfinancialpositionfortheyearthenendedin
accordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.
OtherMatters
wĻƨǒźƩĻķ{ǒƦƦƌĻƒĻƓƷğƩǤLƓŅƚƩƒğƷźƚƓ
AccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericarequirethattheƒğƓğŭĻƒĻƓƷƭ
discussionandanalysisΛͻa5ε!ͼΜonpages7through11andthebudgetarycomparisoninformationfor
theGeneralFundandRiverfrontSpecialRevenueFundonpages33and34bepresentedtosupplement
thebasicfinancialstatements.TheMD&A,althoughnotapartofthebasicfinancialstatements,is
requiredbytheGovernmentalAccountingStandardsBoard,whoconsidersittobeanessentialpartof
financialreportingforplacingthebasicfinancialstatementsinanappropriateoperational,economic,or
historicalcontext.
WehaveappliedcertainlimitedprocedurestotheMD&Ainaccordancewithauditingstandardsgenerally
acceptedintheUnitedStatesofAmerica,whichconsistedofinquiriesofmanagementaboutthemethods
hƒğƓğŭĻƒĻƓƷƭ
ofpreparingtheinformationandcomparingtheinformationforconsistencywit
responsestoourinquiries,thebasicfinancialstatements,andotherknowledgeweobtainedduringour
auditofthebasicfinancialstatements.Wedonotexpressanopinionorprovideanyassuranceonthe
MD&Abecausethelimitedproceduresdonotprovideuswithsufficientevidencetoexpressanopinionor
provideanyassurance.
Ourauditwasconductedforthepurposeofformingopinionsonthefinancialstatementsthatcollectively
comprisetheUrbanRenewal!ŭĻƓĭǤƭbasicfinancialstatements.Thebudgetarycomparisoninformation
rposes
fortheGeneralFundandRiverfrontSpecialRevenueFundonpages33and34arepresentedforpu
ofadditionalanalysisandarenotarequiredpartofthebasicfinancialstatements.
Thebudgetarycomparisoninformationistheresponsibilityofmanagementandwasderivedfromand
relatesdirectlytotheunderlyingaccountingandotherrecordsusedtopreparethebasicfinancial
statements.Suchinformationhasbeensubjectedtotheauditingproceduresappliedintheauditofthe
basicfinancialstatementsandcertainadditionalprocedures,includingcomparingandreconcilingsuch
informationdirectlytotheunderlyingaccountingandotherrecordsusedtopreparethebasicfinancial
statementsortothebasicfinancialstatementsthemselves,andotheradditionalproceduresin
accordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica.Inouropinion,
thebudgetarycomparisoninformationisfairlystated,inallmaterialrespects,inrelationtothebasic
financialstatementsasawhole.
hƷŷĻƩLƓŅƚƩƒğƷźƚƓ
Ourauditwasconductedforthepurposeofformingopinionsonthefinancialstatementsthatcollectively
comprisetheUrbanRenewal!ŭĻƓĭǤƭbasicfinancialstatements.Theothersupplementaryinformation
(pages37through40)ispresentedforpurposesofadditionalanalysisandisnotarequiredpartofthe
financialstatements.
Thisinformationistheresponsibilityofmanagementandwasderivedfromandrelatedirectlytothe
underlyingaccountingandotherrecordsusedtopreparethefinancialstatements.Suchinformationhas
beensubjectedtotheauditingproceduresappliedintheauditofthebasicfinancialstatementsand
certainadditionalprocedures,includingcomparingandreconcilingsuchinformationdirectlytothe
underlyingaccountingandotherrecordsusedtopreparethebasicfinancialstatementsortothebasic
financialstatementsthemselves,andotheradditionalproceduresinaccordancewithauditingstandards
4
generallyacceptedintheUnitedStatesofAmerica.Inouropinion,theothersupplementaryinformation
(pages37through40)isfairlystated,inallmaterialrespects,inrelationtothefinancialstatementsasa
whole.
ReportonotherLegalandRegulatoryRequirements
InaccordancewiththeMinimumStandardsofAuditsofOregonMunicipalCorporations,wehaveissued
ourreportdatedDecember23,2015onourconsiderationofthe/źƷǤƭcompliancewithcertainprovisions
oflawsandregulations,includingtheprovisionsofOregonRevisedStatutesasspecifiedinOregon
AdministrativeRules.Thepurposeofthatreportonpages45to46istodescribethescopeofourtesting
ofcomplianceandtheresultsofthattestingandnottoprovideanopiniononcompliance.
ISLERCPA
By:GaryIskra,CPA,amemberofthefirm
Eugene,Oregon
December23,2015
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Management’s Discussion and Analysis
The management of the Urban Renewal Agency (Agency), a component unit of the City of Eugene, Oregon
presents this narrative overview and analysis to facilitate both a short and a long-term analysis of the financial
activities of the Agency for the fiscal year ended June 30, 2015. This Management’s Discussion and Analysis
(MD&A) is based on currently known facts, decisions, and conditions that existed as of the date of the
independent auditors’ report.
Financial Highlights
The net position of the Agency (assets less liabilities) at June 30, 2015 was $14,531,628. Of this amount,
$14,035,834 was unrestricted, subject to Agency fund limitations.
At June 30, 2015, the Agency’s governmental funds reported combined ending fund balances of
$14,519,884. Of that amount, $12,669,724 is available for spending at the Agency’s discretion, subject to
fund limitations.
The General Fund’s spendable fund balance was $1,620,277 at the end of FY15. General Fund expenditures
for FY15 were $162,763. The General Fund contains operations for the Downtown District.
Overview of the Financial Statements
The following discussion and analysis is intended to serve as an introduction to the Agency’s basic financial
statements. The Agency’s basic financial statements are comprised of three components:
1. Government-wide financial statements
2. Fund financial statements
3. Notes to the basic financial statements
Government-wide financial statements.
The government-wide financial statements are designed to provide
readers with a broad overview of the Agency’s finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the Agency’s assets and liabilities, with the difference
between the two reported as net position. Over time, increases or decreases in net position may serve as a
useful indicator of whether the financial position of the Agency is improving or deteriorating.
The Statement of Activities presents information showing how the Agency’s net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in
this statement for some items that will only result in cash flows in future fiscal periods. Examples of such items
include earned, but uncollected, property taxes.
The Agency focuses on planning and development activities within the boundaries of the two urban renewal
districts in the City of Eugene. Both government-wide financial statements provide information on these activities,
which is supported mainly by property taxes.
The government-wide financial statements can be found on Exhibits 1 and 2 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The Agency uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Agency are
governmental funds.
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Governmental funds. Governmental funds are used to account for activities where emphasis is placed on
available financial resources, rather than upon net income determination. Therefore, unlike the government-wide
financial statements, governmental fund financial statements focus on the acquisition and use of current
spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government’s near-term requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the government’s near-term financial decisions. Both the governmental funds Balance
Sheet and the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances
provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
These reconciliations can be found on Exhibits 3 and 5 of this report.
The Agency maintains two taxing districts: the Downtown District and the Riverfront District. The Agency
maintains five individual governmental funds to account for these two districts: a general fund, a debt service
fund, and a capital projects fund for the Downtown District; and a special revenue fund and a capital projects fund
for the Riverfront District. Information for each fund is presented separately in the governmental funds Balance
Sheet and in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances.
The basic governmental fund financial statements can be found on Exhibits 3 and 4 of this report.
Notes to the basic financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. They are an integral
part of the financial statements and should be read in conjunction with them.
Required supplementary information. The Agency adopts an annual appropriated budget for all its funds. To
demonstrate compliance with the budget, budgetary comparison statements have been provided for the General
Fund and the Riverfront Special Revenue Fund as required supplementary information.
Government-wide Financial Analysis
The Agency’s assets exceeded liabilities by $14,531,628 at the close of the most recent fiscal year compared to a
net position of $11,642,088 in the previous year.
A portion of the Agency’s net position (3.4%) reflects its investment in capital assets (land). The Agency uses
these capital assets to plan and develop designated properties within the urban renewal district boundaries.
Consequently, these assets are not available for future spending. The remaining balance of net position
($14,035,834) may be used to meet the government’s ongoing obligations, in accordance with the Urban
Renewal Plans and subject to fund limitations.
8
Urban Renewal Agency's Net Position
20152014
Current and other assets$17,351,58816,307,265
Capital assets495,794493,317
Total assets 17,847,38216,800,582
Noncurrent liabilities2,422,0004,300,000
Other liabilities893,754858,494
Total liabilities3,315,7545,158,494
Net position:
Invested in capital assets495,794493,317
Unrestricted14,035,83411,148,771
Total net position$14,531,62811,642,088
Urban Renewal Agency's Change in Net Position
20152014
Revenues:
Program revenues:
Rental income, loans repaid,
and charges for services139,45060,434
$
General revenues:
Taxes3,236,4503,073,982
Investment earnings113,179113,964
Total revenues3,489,0793,248,380
Expenses:
Urban renewal redevelopment599,5392,770,075
Total expenses599,5392,770,075
Increase (decrease) in net position2,889,540478,305
Net position, July 111,642,08811,163,783
Net position, June 30$14,531,62811,642,088
9
Urban Renewal Agency Revenues by Source
Taxes - 92.8%
Rental income, loans repaid, and charges for
services - 4.0%
Investment earnings - 3.2%
Fund-based Financial Analysis
As previously discussed, the Agency uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
The focus of the Agency’s governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the Agency’s financing requirements.
In particular, spendable fund balance may serve as a useful measure of a government’s net resources available
for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Agency reported combined ending fund balances of $14,519,884.
Approximately 87% of this total amount ($12,669,724) is available for spending at the Agency’s discretion, subject
to fund limitations. The remainder of fund balance ($1,850,160) is not available for new spending because it
represents nonspendable assets held for resale.
The General Fund is the chief operating fund of the Agency and houses operations for the Downtown District. At
the end of the current fiscal year, the total fund balance was $1,620,277, all of which was available to spend.
General Fund Budgetary Highlights
The difference between the original budget and the final amended budget was an increase of $106,702. This
increase was funded by unspent resources from the prior year and current year resources.
Capital Assets and Debt Administration
Capital assets. The City maintains all of its assets, including those of the Agency. The Agency’s investment in
capital assets for its governmental activities as of June 30, 2015 amounted to $495,794.
Additional information on the Agency’s capital assets can be found in note (4)(C) of this report.
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Noncurrent liabilities. On May 25, 2011, the Agency issued $7,900,000 of Downtown Urban Renewal District Tax
Increment Bonds, Series 2011 A, bearing a fixed interest rate of 5.20% and maturing on June 1, 2020. The
proceeds of the bonds were used to refund $4.4 million in principal associated with the City’s Broadway Garages
limited tax bonds and provide $3.5 million in financial assistance to Lane Community College for construction of
their new Downtown campus. During the year the Agency paid the scheduled principal payment of $835,000 plus
$1.0 million of additional “early” principal payment to reduce the remaining debt obligation. Additional information
on the Agency’s noncurrent liabilities can be found in note (4)(D) of this report.
Next Year’s Budgets and Rates
For FY16, the following factors were taken into account when developing the urban renewal budgets:
Property taxes in both the Downtown and Riverfront Districts are predicted to increase due to a projected
increase in the assessed value of properties in the districts.
The property tax collection rate for both districts is estimated to be 94% in FY16. The FY15 actual
collection rate was approximately 97% for both current and delinquent taxes.
The Downtown District FY16 budget includes principal and interest payments on debt issued, loan program
management, and general oversight.
There are no new projects planned in the Riverfront District for FY16, although planning continues for
redevelopment of the EWEB property. In addition, the District has budgeted $1.0 million of program revenues, in
the new Riverfront Program Revenue Fund, for a new loan program.
Requests for Information
This financial report is designed to provide a general overview of the Agency’s finances for all those with an
interest in the Agency. 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
100 West 10 Avenue, Suite 400
Eugene, Oregon 97401
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BASIC FINANCIAL STATEMENTS
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Exhibit 1
Urban Renewal Agency of the City of Eugene, Oregon
Statement of Net Position
June 30, 2015
(amounts in dollars)
Assets
Current Assets
Equity in pooled cash and investments12,632,758
Receivables (net of allowance)2,849,349
Due from other governments19,321
Assets held for resale1,850,160
Total current assets17,351,588
Noncurrent assets
Capital assets:
Land 493,317
Other capital assets (net of accumulated depreciation)2,477
Total noncurrent assets495,794
Total assets17,847,382
Liabilities
Current liabilities
Accounts payable and other liabilities15,754
Bonds payable878,000
Total current liabilities893,754
Noncurrent liabilities
Bonds payable
2,422,000
Total noncurrent liabilities2,422,000
Total liabilities3,315,754
Net position
Invested in capital assets495,794
Unrestricted14,035,834
Total net position14,531,628
The accompanying notes are an integral part of the financial statements.
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Exhibit 2
Urban Renewal Agency of the City of Eugene, Oregon
Statement of Activities
For the fiscal year ended June 30, 2015
(amounts in dollars)
Net Expense
and Changes
Program Revenuesin Net Assets
Rental income,
loans repaid,OperatingCapital
and chargesGrants andGrants and
Expensesfor servicesContributionsContributionsTotal
Functions/Programs
Governmental activities:
Urban renewal redevelopment599,539139,45000(460,089)
Total governmental activities599,539139,45000(460,089)
General revenues:
Property taxes3,236,450
Unrestricted investment earnings113,179
Total general revenues3,349,629
Change in net position2,889,540
Net position, July 1, 201411,642,088
Net position, June 30, 201514,531,628
The accompanying notes are an integral part of the financial statements.
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Exhibit 3
Urban Renewal Agency of the City of Eugene, Oregon
Balance Sheet
Governmental Funds
June 30, 2015
(amounts in dollars)
RiverfrontRiverfrontTotal
DebtCapitalSpecialCapitalGovernmental
General
ServiceProjectsRevenueProjectsFunds
Assets
Equity in pooled cash and investments1,601,4141,345,565536,4608,279,171870,14812,632,758
Receivables:
Interest10,24340,598017,462068,303
Taxes0147,910083,3770231,287
Accounts145,7400000145,740
Loans and notes2,642,35200002,642,352
Allowance for uncollectibles(145,740)0000(145,740)
Due from other governments012,07507,246019,321
Assets held for resale00860,1600990,0001,850,160
Total assets4,254,0091,546,1481,396,6208,387,2561,860,14817,444,181
Liabilities
Accounts payable2360001,2001,436
Due to other governments00018018
Total liabilities23600181,2001,454
Deferred inflows of resources
Unavailable revenue2,633,496188,5070100,84002,922,843
Total deferred inflows of resources2,633,496188,5070100,84002,922,843
Fund balances
Nonspendable00860,1600990,0001,850,160
Restricted1,620,2771,357,641536,4608,286,398868,94812,669,724
Total fund balances1,620,2771,357,6411,396,6208,286,3981,858,94814,519,884
Total liabilities, deferred inflows
of resources, and fund balances4,254,0091,546,1481,396,6208,387,2561,860,148
Reconciliation to the Statement of Net Position:
The Statement of Net Position reports receivables at their net realizable value. However, receivables
not available to pay for current-period expenditures are deferred in governmental funds.2,830,250
Capital assets are not financial resources in governmental funds, but are reported in the
Statement of Net Position at their net depreciable value. 495,794
All liabilities are reported in the Statement of Net Position. However, if they are not due and payable
in the current period, they are not recorded in governmental funds.(3,314,300)
Total net position14,531,628
The accompanying notes are an integral part of the financial statements.
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Exhibit 4
Urban Renewal Agency of the City of Eugene, Oregon
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the fiscal year ended June 30, 2015
(amounts in dollars)
RiverfrontRiverfrontTotal
DebtCapitalSpecialCapitalGovernmental
GeneralServiceProjectsRevenueProjectsFunds
Revenues
Taxes01,945,54701,275,54803,221,095
Rental income18,0000063,000081,000
Charges for services9320000932
Repayment of revolving loans780,8320000780,832
Miscellaneous, primarily interest49,75013,6812,82642,3154,606113,178
Total revenues849,5141,959,2282,8261,380,8634,6064,197,037
Expenditures
Current - departmental:
Urban renewal program expenditures162,76300157,3750320,138
Debt service:
Principal01,835,0000001,835,000
Interest0267,020000267,020
Capital outlay002,540020,27022,810
Total expenditures162,7632,102,0202,540157,37520,2702,444,968
Excess (deficiency) of revenues
over expenditures686,751(142,792)2861,223,488(15,664)1,752,069
Other financing sources (uses)
Transfers in98,285000098,285
Transfers out0(98,285)000(98,285)
Total other financing sources (uses)98,285(98,285)0000
Net change in fund balances785,036(241,077)2861,223,488(15,664)1,752,069
Fund balances, July 1, 2014835,2411,598,7181,396,3347,062,9101,874,61212,767,815
Fund balances, June 30, 20151,620,2771,357,6411,396,6208,286,3981,858,94814,519,884
The accompanying notes are an integral part of the financial statements.
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Exhibit 5
Urban Renewal Agency of the City of Eugene, Oregon
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
For the fiscal year ended June 30, 2015
(amounts in dollars)
Net change in fund balances - total governmental funds1,752,069
Amounts reported for governmental activities in the Statement of Activities are
different because:
Governmental funds do not report expenditures for unpaid compensated absences, interest
expense, or arbitrage since they do not require the use of current financial resources.
However, the Statement of Activities reports such expenses when incurred, regardless of
when settlement ultimately occurs.
7,952
Capital outlays are reported as expenditures in governmental funds. However, the Statement of
Activities allocates the cost of capital outlays over their estimated useful lives as depreciation
expense.2,477
Governmental funds defer revenues that do not provide current financial resources. However, the
Statement of Activities recognizes such revenues at their net realizable value when earned,
regardless of when received.(707,958)
Proceeds from the issuance of long-term debt provide current financial resources to governmental
funds and are reported as revenues. In the same way, repayments of long-term debt use
current financial resources and are reported as expenditures in governmental funds. However, neither
the receipt of debt proceeds nor the payment of debt principal affect the Statement of Activities,
but are reported as increases and decreases in noncurrent liabilities in the Statement of Net Position.
1,835,000
Change in net position of governmental activities.2,889,540
The accompanying notes are an integral part of the financial statements.
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URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies
The financial statements of the Urban Renewal Agency (Agency) of the City of Eugene, Oregon (City)
have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to
governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-
setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Agency's accounting policies are described below.
(A) The Financial Reporting Entity
The Agency's governing body is identical to the Eugene City Council, and because the services of the
Agency are exclusively for the benefit of the City, the Agency has been determined under GAAP to be a
component unit of the City. As a result, the funds of the Agency are blended with those of the City by
including them in the appropriate statements and schedules of the City's Comprehensive Annual
Financial Report, which can be viewed on the City’s website at www.eugene-or.gov.
(B) Organization and Operation
The Urban Renewal Agency of the City of Eugene was established on July 10, 1967 as a separate
political body charged with the responsibility to implement the Central Eugene Project (now known as the
Downtown District) and Urban Renewal Plan. On May 24, 1982, the powers granted to the Agency under
Oregon Revised Statutes Chapter 457 were transferred to the City Council of Eugene. On September 11,
1985 the Eugene City Council adopted the Riverfront Research Park Urban Renewal Plan.
The accounts of the Agency are organized on the basis of funds. Fund accounting is designed to
demonstrate legal compliance and aid financial management by segregating government functions and
activities. The operations of each fund are accounted for by providing a separate set of self-balancing
accounts, which comprise its assets, liabilities, fund balances, revenues, and expenditures.
(C) Government-wide and Fund Financial Statements
The government-wide financial statements (Exhibits 1 and 2) report information on all activities of the
Agency. As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements.
The Statement of Activities (Exhibit 2) demonstrates the degree to which the expenses of a given function
are offset by program revenues. Program revenues include 1) rental income, loans repaid, and charges
for services to customers who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or program and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or program. Grants and contributions not
restricted are reported as general revenues rather than program revenues. Taxes and other items not
properly included among program revenues are also reported as general revenues.
Fund financial statements (Exhibits 3 and 4) are provided for all governmental funds.
continued
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URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(D) Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Measurement focus refers to what is measured by a fund. Basis of accounting refers to when revenues
and expenditures are recognized in the accounts and reported in the financial statements.
The government-wide financial statements are accounted for using an economic resources measurement
focus, whereby all assets and liabilities are reported in the Statement of Net Position. The increases and
decreases in net position are reported in the Statement of Activities.The accrual basis of accounting is
used whereby revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows.
The governmental fund financial statements are accounted for using a current financial resources
measurement focus. The Balance Sheet generally reports only current assets and current liabilities; and
the Statement of Revenues, Expenditures, and Changes in Fund Balances presents increases and
decreases in fund balance. These funds use the modified accrual basis of accounting whereby revenues
are recorded when susceptible to accrual (both measurable and available). "Measurable" means that the
amount of the transaction can be determined. "Available" is defined as being collectible within the current
period or soon enough thereafter (60 days) to be used to liquidate liabilities of the current period.
Expenditures, other than interest on long-term obligations, are recorded when the fund liability is incurred.
Real and personal property taxes were levied as of July 1 for the fiscal year on values assessed as of
January 1. Property taxes are an enforceable lien on both real and personal property as of July 1 and are
due and payable in three installments on November 15, February 15, and May 15. All property taxes are
billed and collected by Lane County and remitted to the Agency. In the governmental fund financial
statements, property taxes are reflected as revenues in the fiscal period for which they were levied,
provided they are due, or past due and receivable within the current period, and collected within the
current period or expected to be collected soon enough thereafter to be used to pay liabilities of the
current period (60 days). Otherwise, they are reported as deferred inflows of resources. In the
government-wide financial statements, property tax revenues are fully recognized at the time of levy.
Property taxes which are held at year-end by the collecting agency, Lane County, and are remitted to the
City within the 60-day period are reported as "Due from other governments."
Repayment of revolving loans and miscellaneous revenues (except investment earnings) are recorded as
revenues when received in cash because they are generally not measurable until actually received.
Investment earnings are recorded as earned since they are measurable and available. Rental income is
typically received in advance and is reported as unearned when appropriate.
Governmental Funds
Governmental funds finance all of the functions of the Agency. The measurement focus is upon
determination of changes in current financial resources, rather than upon net income determination. The
following are the Agency's Downtown District governmental funds:
General Fund
The General Fund is the general operating fund of the Agency. It is used to account for all financial
resources except those required to be accounted for in another fund. Principal sources of revenue
are rental income, interest on investments, principal and interest payments on outstanding loans, and
transfers from the Debt Service Fund. Primary expenditures of the General Fund are made for
downtown development loans and grants as well as to pay Downtown District administration costs.
continued
22
URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(D) Measurement Focus, Basis of Accounting, and Financial Statement Presentation, continued
Governmental Funds, continued
Debt Service Fund
The Debt Service Fund is used to account for the accumulation of tax increment resources and the
payment of debt service on tax increment bonds and other expenditures within the Downtown District.
Capital Projects Fund
The Capital Projects Fund is used to account for the financial resources to be used for the acquisition
or construction of major capital facilities within the Downtown District.
The following are the Agency's Riverfront District governmental funds:
Riverfront Special Revenue Fund
The Riverfront Special Revenue Fund is used to account for the accumulation of tax increment
resources and to pay Riverfront District administration costs.
Riverfront Capital Projects Fund
The Riverfront Capital Projects Fund is used to account for the financial resources that are restricted
to expending for acquisition or construction of major capital facilities within the Riverfront District.
(E) Equity in Pooled Cash and Investments
The Agency invests cash through the City into various investment programs. Policies adopted by the
City’s Investment Advisory Board and the Eugene City Council authorize the City to invest in obligations
of the U.S. Treasury and its agencies, time certificates of deposit, governmental money market bank
deposit accounts, bankers’ acceptances, municipal bonds, corporate bonds, commercial paper,
repurchase agreements, reverse repurchase agreements, and the Oregon Local Government Investment
Pool.
It is the City’s policy to report at amortized cost all short-term, highly-liquid money market investments
(including corporate bonds, commercial paper, bankers’ acceptances, municipal bonds, and U.S.
Treasury and agency obligations) and participating interest-earning investment contracts with a remaining
maturity at time of purchase of one year or less. Such investments are stated at cost, increased by
accretion of discounts and reduced by amortization of premiums, both computed by the straight-line
method. Callable investments purchased at a discount are amortized to the maturity date,
and callable investments purchased at a premium are amortized to the first call date. Investments with a
remaining maturity at time of purchase of more than one year are valued at fair value.
The City maintains a common cash and investments pool for all City funds, including funds of the Agency.
Interest earned on the pooled cash and investments is allocated quarterly based on each fund’s average
cash and investments balance as a proportion of the City’s total pooled cash and investments. The City
considers “cash” to include the pooled cash and investments, since the pool has the general
characteristics of a demand deposit account, in that any participating fund may deposit additional cash at
any time and also may withdraw cash at any time without prior notice or penalty.
continued
23
URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(F) Receivables
All receivables are shown net of an allowance for uncollectibles in the Statement of Net Position and the
Governmental Funds Balance Sheet.
(G) Capital Assets
Capital assets are defined as tangible or intangible assets that are used in operations and that have initial
useful lives extending beyond a single reporting period. The capitalization threshold for capital assets is
$5,000. Tangible assets include land, rights-of-way (included with land), improvements, and
infrastructure.
All Agency assets have been capitalized in the government-wide financial statements. In accordance
with the current financial resources measurement focus, capital assets are not capitalized in the
governmental fund financial statements. Agency assets are valued at historical cost which is measured
by the cash or cash equivalent price of obtaining an asset, including ancillary charges necessary to place
the asset into its intended location and condition for use.
Upon disposal of an asset, cost and accumulated depreciation (if applicable) is removed from the
accounts and, if appropriate, a gain or loss on the disposal is recognized.
All assets are reported in the Statement of Net Position and any gain or loss upon disposal is recognized
in the Statement of Activities in the urban renewal redevelopment function.
(H) Deferred Inflows of Resources
In addition to liabilities, the governmental fund balance sheet reports a separate section for deferred
inflows of resources, if applicable. Deferred inflows of resources represent unavailable revenue that will
be recognized in a future period(s). The Agency has two primary types of revenues that are reported in
this section under the modified accrual basis of accounting. These revenues include: delinquent property
taxes and notes receivable. These revenues are deferred and recognized as an inflow of resources in
the period that the revenues become available.
(I) Fund Balance
In the fund financial statements, the fund balance for governmental funds is reported in classifications
that comprise a hierarchy based primarily on the extent to which the government is bound to honor
constraints on the specific purposes for which amounts in those funds can be spent.
Fund balance is reported as nonspendable when the resources cannot be spent because they are either
in a nonspendable form or legally or contractually required to be maintained intact. Resources in
nonspendable form include inventories, prepaids and deposits, and assets held for resale.
Fund balance is reported as restricted when the constraints placed on the use of resources are either: (a)
externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or
regulations of other governments; or (b) imposed by law through constitutional provisions or enabling
legislation.
continued
24
URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies, continued
(J) Indirect Expenses
The Agency’s Statement of Revenues, Expenditures, and Changes in Fund Balances include
reimbursement to the City’s Central Services department for general services provided to the Agency by
the City’s General Fund. The charge for general service costs is based on an approved overhead cost
plan. The overhead cost reimbursement has been included in program expenses in the Statement of
Activities.
(2) Reconciliation of Government-wide and Fund Financial Statements
(A) Explanation of Certain Differences Between the Government-wide Statement of Net Position and the
Governmental Fund Balance Sheet
The Balance Sheet for governmental funds (Exhibit 3) includes a reconciliation between total fund
balances and total net position in the Statement of Net Position (Exhibit 1). The following are selected
elements of that reconciliation:
The Statement of Net Position reports receivables at their net realizable value. However, receivables not
available to pay for current-period expenditures are deferred in governmental funds. The details of this
$2,830,250 difference are as follows:
Receivables:
Interest$58,060
Taxes231,287
Loans and notes2,633,496
Subtotal2,922,843
Allowance for uncollectibles(92,593)
Net adjustment$2,830,250
Capital assets are not financial resources in governmental funds, but are reported in the Statement of Net
Position at their net depreciable value. The details of this $495,794 difference are as follows:
Capital assets reported in the Statement of Net Position:
Land$493,317
Other capital assets (net of accumulated depreciation)2,477
Net adjustment495,794
All liabilities are reported in the Statement of Net Position. However, if they are not due and payable in
the current period, they are not recorded in governmental funds.The details of this $3,314,300 difference
are as follows:
Bonds payable$(3,300,000)
Accrued interest payable(14,300)
Net adjustment$(3,314,300)
continued
25
URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(2) Reconciliation of Government-wide and Fund Financial Statements, continued
(B) Explanation of Certain Differences Between the Government-wide Statement of Activities and the
Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances
The Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities is provided at Exhibit 5. The following are selected
elements of that reconciliation:
Governmental funds do not report expenditures for unpaid compensated absences, interest expense, or
arbitrage since they do not require the use of current financial resources. However, the Statement of
Activities reports such expenses when incurred, regardless of when settlement ultimately occurs. The
details of this $7,952 difference are as follows:
Accrued interest$7,952
Capital outlays are reported as expenditures in governmental funds. However, the Statement of Activities
allocates the cost of capital outlays over their estimated useful lives as depreciation expense. The details
of this $2,477 difference are as follows:
Capital outlay$2,541
Depreciation expense(64)
Net adjustment $2,477
Governmental funds defer revenues that do not provide current financial resources. However, the
Statement of Activities recognizes such revenue at their net realizable value when earned, regardless of
when collected. The details of this $707,958 difference are as follows:
Change in unavailable revenue from the following sources:
Property taxes receivable$16,383
Notes receivable(732,832)
Subtotal(716,449)
Change in the allowance for doubtful receivables8,491
Net adjustment$(707,958)
Proceeds from the issuance of long-term debt provide current financial resources to governmental funds
and are reported as revenues. In the same way, repayments of long-term debt use current financial
resources and are reported as expenditures in governmental funds. However, neither the receipt of debt
proceeds nor the payment of debt principal affect the Statement of Activities, but are reported as
increases and decreases in noncurrent liabilities in the Statement of Net Position. The details of this
$1,835,000 difference are as follows:
Principal payments:
Tax increment bonds$1,835,000
continued
26
URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(3) Stewardship, Compliance, and Accountability
(A) Budgetary Information
The City Manager (acting as the Agency Director) submits to the City Council of Eugene (acting as the
Urban Renewal Agency Board under provisions of Oregon Revised Statute 457.460) a proposed
operating and capital budget a sufficient length of time in advance to allow adoption of the budget prior to
July 1.
Prior to July 1, the Agency 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 special payments.
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 Agency. Original and supplemental budgets may be modified by the
use of appropriation transfers between the levels of control. Such transfers require approval by passing
an Agency 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 (Oregon Budget Law). The net
effect of amending resolutions passed during the fiscal year was an appropriation increase of $106,702.
(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, including
the Agency. The Agency’s portion of this pool is displayed in the Statement of Net Position and the
Balance Sheet as "Equity in pooled cash and investments.” Cash and investments are comprised of the
following at June 30, 2015:
Deposits with banks$1,056,325
Investments11,576,433
$12,632,758
Detailed information for the Agency’s pooled cash and investments can be found in the City of Eugene’s
FY15 Comprehensive Annual Financial Report (Notes to Basic Financial Statements).
(B) Unavailable Revenue
Unavailable revenues are reported as a deferred inflow of resources in the governmental funds Balance
Sheet. Unavailable revenues are reported in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period.
continued
27
URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(B) Unavailable Revenue, continued
The various components of unavailable revenue consist of the following:
Total
Property taxes receivable:
Debt Service Fund$188,507
Riverfront Special Revenue Fund100,840
Notes receivable:
General Fund2,633,496
Total unavailable/unearned revenue$2,922,843
(C) Capital Assets
Capital assets activity for the year ended June 30, 2015 was as follows:
BeginningEnding
balanceIncreasesDecreasesbalance
Governmental activities:
Capital assets, not being depreciated
Land$493,31700493,317
Total capital assets, not being depreciated493,31700493,317
Capital assets, being depreciated
Improvements 02,54102,541
Total capital assets being depreciated02,54102,541
Less accumulated depreciation for:
Improvements 0(64)0(64)
Total accumulated depreciation0(64)0(64)
Total capital assets, being depreciated, net02,47702,477
Governmental activities capital assets, net$493,3172,4770495,794
(D) Noncurrent Liabilities
The Urban Renewal Agency issues tax increment bonds to finance major construction projects within its
districts. These bonds are serviced by tax increment revenues. When an urban renewal district is first
created, the assessed property value within the district boundaries is established as a “frozen base”. The
Urban Renewal Agency receives property taxes related to the incremental increase in the property value
that is in excess of the “frozen base.”
continued
28
URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
Notes to Basic Financial Statements
(4) Detailed Notes on All Funds, continued
(D) Noncurrent Liabilities, continued
On May 25, 2011, the Agency issued $7,900,000 of Downtown Urban Renewal District Tax Increment
Bonds, Series 2011 A, bearing a fixed interest rate of 5.20% and maturing on June 1, 2020. The
proceeds of the bonds were used to refund $4.4 million in debt service associated with the City’s
Broadway Garages limited tax bonds and $3.5 million in financial assistance to Lane Community College
for construction of their new Downtown campus.
Annual debt service requirements to maturity for the tax increment bonds are as follows:
(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. Detailed information for the City’s risk management function can be found in the
City of Eugene’s FY15 Comprehensive Annual Financial Report (Notes to Basic Financial Statements).
29
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30
REQUIRED SUPPLEMENTARY INFORMATION
31
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32
A-1
Urban Renewal Agency of the City of Eugene, Oregon
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2015
(amounts in dollars)
Budget
Actual
BudgetGAAP
FinalbasisAdjustmentbasis
Original
Revenues
Rental income5,7005,70018,000018,000
Charges for services009320932
Repayment of revolving loans000780,832780,832
Miscellaneous63,00063,00049,37337749,750
Total revenues68,70068,70068,305781,209849,514
Expenditures
Urban renewal program expenditures105,000111,000102,76360,000162,763
Loans granted1,321,2001,336,08560,000(60,000)0
Total expenditures1,426,2001,447,085162,7630162,763
Excess (deficiency) of revenues over expenditures(1,357,500)(1,378,385)(94,458)781,209686,751
Other financing sources (uses)
Principal payments received450,000450,000780,832(780,832)0
Transfers in105,000111,00098,285098,285
Total other financing sources (uses)555,000561,000879,117(780,832)98,285
Net change in fund balance(802,500)(817,385)784,659377785,036
Fund balance, July 1, 2014820,150835,035835,035206835,241
Fund balance, June 30, 201517,65017,6501,619,6945831,620,277
33
A-2
Urban Renewal Agency of the City of Eugene, Oregon
Riverfront Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2015
(amounts in dollars)
BudgetActual
BudgetGAAP
OriginalFinalbasisAdjustmentbasis
Revenues
Taxes1,280,0001,280,0001,275,54801,275,548
Rental income63,00063,00063,000063,000
Miscellaneous21,16421,16441,0841,23142,315
Total revenues1,364,1641,364,1641,379,6321,2311,380,863
Expenditures
Urban renewal program expenditures237,164237,164157,3750157,375
Total expenditures237,164237,164157,3750157,375
Excess (deficiency) of revenues over expenditures1,127,0001,127,0001,222,2571,2311,223,488
Total other financing sources (uses)00000
Net change in fund balance1,127,0001,127,0001,222,2571,2311,223,488
Fund balance, July 1, 20147,054,6547,061,1267,061,1261,7847,062,910
Fund balance, June 30, 20158,181,6548,188,1268,283,3833,0158,286,398
34
OTHER SUPPLEMENTARY INFORMATION
35
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36
B-1
Urban Renewal Agency of the City of Eugene, Oregon
Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2015
(amounts in dollars)
Actual
BudgetGAAP
basisAdjustmentbasis
Budget
Revenues
Taxes1,900,0001,945,54701,945,547
Miscellaneous9,00013,5928913,681
Total revenues1,909,0001,959,139891,959,228
Expenditures
Debt service2,130,0002,102,02002,102,020
Total expenditures2,130,0002,102,02002,102,020
Excess (deficiency) of revenues over expenditures(221,000)(142,881)89(142,792)
Other financing sources (uses)
Transfers out(111,000)(98,285)0(98,285)
Total other financing sources (uses)(111,000)(98,285)0(98,285)
Net change in fund balance(332,000)(241,166)89(241,077)
Fund balance, July 1, 20141,598,3171,598,3174011,598,718
Fund balance, June 30, 20151,266,3171,357,1514901,357,641
37
B-2
Urban Renewal Agency of the City of Eugene, Oregon
Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2015
(amounts in dollars)
Actual
BudgetGAAP
basisAdjustmentbasis
Budget
Revenues
Miscellaneous2,0002,766602,826
Total revenues2,0002,766602,826
Expenditures
Capital outlay518,5122,54002,540
Total expenditures518,5122,54002,540
Excess (deficiency) of revenues over expenditures(516,512)22660286
Other financing sources (uses)
Transfers out0000
Total other financing sources (uses)0000
Net change in fund balance(516,512)22660286
Fund balance, July 1, 2014536,038536,038860,2961,396,334
Fund balance, June 30, 201519,526536,264860,3561,396,620
38
B-3
Urban Renewal Agency of the City of Eugene, Oregon
Riverfront Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2015
(amounts in dollars)
Actual
BudgetGAAP
basisAdjustmentbasis
Budget
Revenues
Miscellaneous2,1954,513934,606
Total revenues2,1954,513934,606
Expenditures
Capital outlay393,15620,270020,270
Total expenditures393,15620,270020,270
Excess (deficiency) of revenues over expenditures(390,961)(15,757)93(15,664)
Total other financing sources (uses)0000
Net change in fund balance(390,961)(15,757)93(15,664)
Fund balance, July 1, 2014884,388884,388990,2241,874,612
Fund balance, June 30, 2015493,427868,631990,3171,858,948
39
B-4
Urban Renewal Agency of the City of Eugene, Oregon
Schedule of Property Tax Transactions
For the fiscal year ended June 30, 2015
(amounts in dollars)
Uncollected Adjustments, Uncollected
balancesCurrentinterest, and balances
Fiscal yearJuly 1, 2014year's levydiscountsCollectionsJune 30, 2015
1965-0821,9580(469)(1,213)20,276
20092,288045(744)1,589
201013,461058(1,032)12,487
201119,01301,490(5,513)14,990
201233,55202,587(17,359)18,780
201348,1230(2,352)(14,383)31,388
201482,8330(1,726)(34,094)47,013
201503,331,862(101,342)(3,145,756)84,764
Totals221,2283,331,862(101,709)(3,220,094)231,287
Summary by fund type
Special Revenue Fund(1,275,140)83,377
Debt Service Fund(1,944,954)147,910
Totals(3,220,094)231,287
40
AUDIT COMMENTS
41
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42
AUDIT COMMENTS
(Comments and Disclosures Required by State Regulators)
_________
Oregon Administrative Rules 162-10-000 through 162-10-320, of the Minimum Standards for Audits of Oregon
Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of
Accountancy, enumerate the financial statements, schedules, comments, and disclosures required in audit
reports. The required financial statements and schedules are set forth in preceding sections of this report.
Required comments and disclosures related to the audit of such statements and schedules are set forth following.
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44
INDEPENDENT AUDITOR’S REPORT
REQUIRED BY OREGON STATE REGULATIONS
To the Honorable Mayor, Members of the Urban
Renewal Agency Board and the Administrator
City of Eugene, Oregon
We have audited the basic financial statements of the Urban Renewal Agency (“Urban Renewal Agency”)
of the City of Eugene, Oregon as of and for the year ended June 30, 2015, and have issued our report
thereon dated December 23, 2015. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and Government Auditing Standards.
Compliance
As part of obtaining reasonable assurance about whether the Urban Renewal Agency’s financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts and grants including provisions of Oregon Revised Statutes as
specified in Oregon Administrative Rules 162-10-000 to 162-10-320 of the Minimum Standards for Audits
of Oregon Municipal Corporations, noncompliance with which could have a direct and material effect on
determination of financial statements amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
We performed procedures to the extent we considered necessary to address the required comments and
disclosures which included, but were not limited to the following:
Deposit of public funds with financial institutions (ORS Chapter 295).
Indebtedness limitations, restrictions and repayment.
Budgets legally required (ORS Chapter 294).
Insurance and fidelity bonds in force or required by law.
Programs funded from outside sources.
Highway revenues used for public highways, roads, and streets.
Authorized investment of surplus funds (ORS Chapter 294).
Public contracts and purchasing (ORS Chapters 279A, 279B, 279C).
In connection with our testing nothing came to our attention that caused us to believe the Urban Renewal
Agency was not in substantial compliance with certain provisions of laws, regulations, contracts, and
grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules
162-10-000 through 162-10-320 of the Minimum Standards for Audits of Oregon Municipal Corporations.
45
OAR 162-10-0230 Internal Control
In planning and performing our audit, we considered the Urban Renewal Agency’s internal control over
financial reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness
of the Urban Renewal Agency’s internal control over financial reporting. Accordingly, we do not express
an opinion on the effectiveness of the Urban Renewal Agency internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.
This report is intended solely for the information and use of the Honorable Mayor, members of the Urban
Renewal Agency Board, the Administrator and management of the Urban Renewal Agency of the City of
Eugene, Oregon and the Secretary of State, Audits Division, of the State of Oregon and is not intended to
be and should not be used by anyone other than those specified parties.
ISLER CPA
By: Gary Iskra, CPA, a member of the firm
Eugene, Oregon
December 23, 2015
46