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HomeMy WebLinkAboutItem 4: Resolution 1045 Adopting a Supplemental Budget EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Public Hearing and Action: Resolution 1045 Adopting a Supplemental Budget; Making Appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year Beginning July 1, 2007, and Ending June 30, 2008 Meeting Date: December 10, 2007 Agenda Item Number: 4 Department: Central Services Staff Contact: Kitty Murdoch www.eugene-or.gov Contact Telephone Number: 682-5860 ISSUE STATEMENT Board approval of the first Supplemental Budget for FY08 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 $489,673 in proposed changes to the FY08 Adopted Budget. A brief description of the proposed transactions is provided in Attachment A. This supplemental budget does not authorize any increased property tax levy. BACKGROUND The Supplemental Budget that occurs in December of a fiscal year is usually the largest because of audit adjustments to budgeted Beginning Working Capital and the reappropriation of funds from the prior fiscal year for program initiatives or projects begun, but not completed, in that year. Supplemental Budgets also recognize new revenue and authorize other unanticipated changes in legal appropriations. For this Supplemental Budget, the proposed changes fall into the following categories: Transactions Related to Beginning Working Capital Isler & Company, LLC, the City's external auditor, has completed its audit for FY07 and the City's Financial Reporting staff has completed the draft of the FY07 Comprehensive Annual Financial Report. Based on audited FY07 actual revenues and expenditures, staff determined the FY08 Actual Beginning Working Capital for all funds. The FY08 Actual Beginning Working Capital was then reconciled with the FY08 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. In most cases, that adjustment increases Beginning Working Capital; that is, in the prior year the fund received more revenue than expected and/or expended less than was budgeted. These transactions are noted in Attachment A. In most funds the transactions increase Balance Available or Reserve, but in some cases Department Operating or Capital expenditures are affected. Reappropriations Reappropriation transactions recognize appropriations for programs initiated or projects authorized in FY07 by the Directors or Manager, but not completed in that fiscal year and for which a purchase order F:\CMO\2007 Council Agendas\M071210\S0712104.doc had not been issued by June 30, 2007. The FY08 reappropriation allocates balance available of $205,963 from the marginal beginning working capital adjustment to the URA Downtown loan program. Capital Project Carryover Reconciliation The Capital Project Carryover Reconciliation occurs in this supplemental budget. An estimate of the capital carryover in each pertinent fund was established in the FY08 Annual Budget and approved by the URA Board. These estimates have been reconciled with actual FY07 expenditures and the Capital Budget is adjusted to reflect the remaining unspent balances in each project. These transactions are noted as Capital Project Carryover Adjustments in Attachment A. Timing In some cases, expenditure authority is needed immediately to carry out Board 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 enables staff to more accurately project the Beginning Working Capital for the next year’s Proposed Budget. RELATED CITY POLICIES These transactions conform to the City’s Financial Management Goals and Policies. BOARD OPTIONS Particular requests requiring more information or discussion may be removed from the supplemental budget and delayed for action in a future supplemental budget. In certain cases there may be a financial or legal impact to delaying budget approval. The City Council may also adopt amended appropriation amounts or funding sources for specific requests in the supplemental budget. AGENCY DIRECTOR’S RECOMMENDATION Approve the attached resolution adopting the Supplemental Budget. SUGGESTED MOTION Move to approve Resolution 1045 adopting a Supplemental Budget; making appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year beginning July 1, 2007 and ending June 30, 2008. 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 F:\CMO\2007 Council Agendas\M071210\S0712104.doc ttachment AA Transaction Summary 817 Urban Renewal Agency Downtown General Fund FY08FY08FY08 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITA 1,847,171205,9622,053,133 L a CHANGE TO WORKING CAPITA L REVENUE Charges for Services2,50002,500 Miscellaneous119,5000119,500 Interfund Transfers303,752350,000653,752 b Fiscal Transactions53,000053,000 Total Revenue478,752350,000828,752 TOTAL RESOURCE2,325,923555,9622,881,885 S II.REQUIREMENTS Department Operating Planning and Development303,752350,000653,752 b Total Department Operating303,752350,000653,752 Non-Departmental Misc. Fiscal Transactions1,972,171205,9622,178,133 Balance Available50,000050,000 a Total Non-Departmental2,022,171205,9622,228,133 TOTAL REQUIREMENT2,325,923555,9622,881,885 S 817 Urban Renewal Agency DowntownGeneral Fund Beginning Working Capital Reconciliation: a) Increase the budgeted Beginning Working Capital by $205,962 and increase Misc. Fiscal Transactions by the same amount for the Downtown Revitalization Loan Program. The adjustment brings the FY08 Budgeted Beginning Working Capital in compliance with the audited FY07 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. West Broadway Development Project b) - appropriate $350,000 transfer from the Debt Service Fund for consultant, legal and staff costs incurred during first half of FY08. 812 Urban Renewal Agency Downtown Debt Service FY08FY08FY08 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITA L6,797,25476,6676,873,921 a CHANGE TO WORKING CAPITA L REVENUE Taxes3,720,00003,720,000 Miscellaneous150,0000150,000 Total Revenue3,870,00003,870,000 TOTAL RESOURCE10,667,2576,66710,743,921 S4 II.REQUIREMENTS Non-Departmental Interfund Transfers303,752350,000653,752 b Intergovernmental Expend.2,380,0002,380,000 Reserve2,500,0002,500,000 Balance Available5,483,502(273,333)5,210,169 a,b Total Non-Departmental10,667,25476,66710,743,921 TOTAL REQUIREMENT10,667,2576,66710,743,921 S4 812 Urban Renewal Agency Downtown Debt Service Beginning Working Capital Reconciliation: a) Increase the budgeted Beginning Working Capital by $76,667 and increase Balance Available by the same amount. The adjustment brings the FY08 Budgeted Beginning Working Capital in compliance with the audited FY07 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. West Broadway Development Project b)- Transfer $350,000 to the Urban Renewal Agency 813 Urban Renewal Agency Downtown Capital Projects Fund FY08FY08FY08 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITA L561,188(123,836)437,352 a TOTAL RESOURCE561,188(123,836)437,352 S II.REQUIREMENTS Capital Projects Capital Carryover553,688(116,336)437,352 b Total Capital Projects553,688(116,336)437,352 Non-Departmental Balance Available7,500(7,500)0 a,b Total Non-Departmental7,500(7,500)0 TOTAL REQUIREMENT561,188(123,836)437,352 S 813 Urban Renewal Agency Downtown Capital Projects Fund Beginning Working Capital Reconciliation: a)Decrease the budgeted Beginning Working Capital by $123,836 and decrease Balance Available by the same amount. The adjustment brings the FY08 Budgeted Beginning Working Capital in compliance with the audited FY07 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. Capital Carryover Reconciliation: b)Decrease the capital carryover by $116,336 and increase 822 Urban Renewal Agency Riverfront Debt Service Fund FY08FY08FY08 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITA L160,000(5,896)154,104 a TOTAL RESOURCE160,000(5,896)154,10 S4 II.REQUIREMENTS Non-Departmental Interfund Transfers160,000(5,896)154,104 a Total Non-Departmental160,000(5,896)154,104 TOTAL REQUIREMENT160,000(5,896)154,10 S4 822 Urban Renewal Agency Riverfront Debt Service Fund Beginning Working Capital Reconciliation: a)Decrease the budgeted Beginning Working Capital by $5,896 and decrease the Transfer appropriation by the same amount. This fund will be closed in FY08 and remaining appropriation will be transferred to the Urban Renewal Agency Riverfront General Fund. 823 Urban Renewal Agency Riverfront Capital Projects Fund FY08FY08FY08 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITA L81,642(13,224)68,418 a CHANGE TO WORKING CAPITA L REVENUE Intergovernmental150,000150,000 Miscellaneous1,00001,000 Total Revenue151,0000151,000 TOTAL RESOURCE232,642(13,224)219,418 S II.REQUIREMENTS Capital Projects Capital Projects150,0000150,000 Capital Carryover81,642(12,224)69,418 b Total Capital Projects231,642(12,224)219,418 Non-Departmental Balance Available1,000(1,000)0 a,b Total Non-Departmental1,000(1,000)0 TOTAL REQUIREMENT232,642(13,224)219,418 S 823 Urban Renewal Agency Riverfront Capital Projects Fund Beginning Working Capital Reconciliation: a)Decrease the budgeted Beginning Working Capital by $13,224 and decrease Balance Available by the same amount. The adjustment brings the FY08 Budgeted Beginning Working Capital in compliance with the audited FY07 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. Capital Carryover Reconciliation: b)Decrease the capital carryover by $12,224 and increase Balance Available by the same amount. This action reconciles the FY08 Capital Carryover Estimate to the actual ending FY07 capital projects balance and carry forward. Resolution Number _______ Attachment B 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, 2007, AND ENDINJUNE 30, 2008. G 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. ThattheSupplementalBudgetfortheUrbanRenewalAgencyoftheCityof Eugene,Oregon,forthefiscalyearbeginningJuly1,2007,andendingJune30, 2008, as set forth in attached Exhibit "A" is hereby adopted. Section 2. ThesupplementalamountsforthefiscalyearbeginningJuly1,2007,andending June30,2008,andforthepurposesshowninattachedExhibit"A"arehereby appropriated. Section 3. ThatthisSupplementalBudgetispreparedinaccordancewithORS294.480(1)(a), whichauthorizestheformulationofasupplementalbudgetresultingfrom"An occurrenceorconditionwhichhadnotbeenascertainedatthetimeofthe preparationofabudgetforthecurrentyearorcurrentbudgetperiodwhichrequires achangeinfinancialplanning."ThisSupplementalBudgetwaspublishedin accordance with ORS 294.480(4). Section 4. ThisresolutioncomplieswithORS294.480(5),anddoesnotauthorizeanincrease inthelevyofpropertytaxesabovetheamountpublishedintheAnnualBudget publication. The foregoing resolution adopted this 10th day of December, 200. 7 Director EXHIBIT "A" In dollars URBAN RENEWAL AGENCY DOWNTOWN GENERAL FUND Departmental Operating Planning and Development350,000 Total Departmental Operating 350,000 Non-Departmental Miscellaneous Fiscal Transactions205,962 Total Non-Departmental 205,962 TOTAL URA DOWNTOWN GENERAL FUN555,962 D URBAN RENEWAL AGENCY DOWNTOWN DEBT SERVICE FUND Non-Departmental Interfund Transfer350,000 * Balance Available(273,333) Total Non-Departmental 76,667 TOTAL URA DOWNTOWN DEBT SERVICE FUND76,667 URBAN RENEWAL AGENCY DOWNTOWN CAPITAL PROJECTS FUND Capital Projects Capital Projects(116,336) Total Capital Projects (116,336) Non-Departmental * Balance Available(7,500) Total Non-Departmental (7,500) TOTAL URA DOWNTOWN CAPITAL PROJECTS FUN(123,836) D URBAN RENEWAL AGENCY RIVERFRONT DEBT SERVICE FUND Non-Departmental Interfund Transfer(5,896) Total Non-Departmental (5,896) TOTAL URA RIVERFRONT DEBT SERVICE FUN(5,896) D URBAN RENEWAL AGENCY RIVERFRONT CAPITAL PROJECTS FUND Capital Projects Capital Projects(12,224) Total Capital Projects (12,224) Non-Departmental * Balance Available(1,000) Total Non-Departmental (1,000) TOTAL URA RIVERFRONT CAPITAL PROJECTS FUN(13,224) D TOTAL REQUIREMENTS - ALL FUND489,673 S * Reserves and Balance Available amounts are not appropriated for spending and are shown for information purposes only.