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HomeMy WebLinkAboutItem 6: PH on URA Resolution on Supplemental Budget #1 EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Public Hearing and Action: Resolution 1040 Adopting a Supplemental Budget; Making Appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year Beginning July 1, 2006, and Ending June 30, 2007 Meeting Date: December 11, 2006 Agenda Item Number: 6 Department: Central Services Staff Contact: Kitty Murdoch www.eugene-or.gov Contact Telephone Number: 682-5860 ISSUE STATEMENT Urban Renewal Agency (URA) approval of the first Supplemental Budget for FY07 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 $4.8 million in proposed changes to the FY07 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 Grove, Mueller & Swank P.C., the City's external auditor, has completed its audit for FY06 and the City's Financial Reporting staff has completed the draft of the FY06 Comprehensive Annual Financial Report. Based on audited FY06 actual revenues and expenditures, staff determined the FY07 Actual Beginning Working Capital for all funds. The FY07 Actual Beginning Working Capital was then reconciled with the FY07 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. L:\CMO\2006 Council Agendas\M061211\S0612116.doc Reappropriations Reappropriation transactions recognize appropriations for programs initiated or projects authorized in FY06 by the Directors or Manager, but not completed in that fiscal year and for which a purchase order had not been issued by June 30, 2006. The FY07 reappropriations are payments to the City of Eugene for the Urban Renewal Agency’s share of the Cultural Policy Review and the East Broadway Garage capital project. 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 FY07 Annual Budget and approved by the URA Board. These estimates have been reconciled with actual FY06 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. This supplemental budget also transfers the balance of URA capital budget appropriation authority for downtown capital projects to the new URA Downtown Capital Projects Fund. 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, in turn, 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 URA Board 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 1040 adopting a Supplemental Budget; making appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year beginning July 1, 2006, and ending June 30, 2007. L:\CMO\2006 Council Agendas\M061211\S0612116.doc Telephone: Mail:-Staff E ATTACHMENTS A. Transaction Summary B. Resolution FOR MORE INFORMATION Staff Contact: Kitty Murdoch Phone: 682-5860 Email: kitty.m.murdoch@ci.eugene.or.us L:\CMO\2006 Council Agendas\M061211\S0612116.doc ttachment AA Transaction Summary 817 Urban Renewal Agency Downtown General Fund a a 817 Urban Renewal Agency DowntownGeneral Fund 812 Urban Renewal Agency Downtown Debt Service FY07FY07FY07 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITA L6,489,1563,9126,493,068 a CHANGE TO WORKING CAPITA L REVENUE Taxes3,680,00003,680,000 Miscellaneous240,0000240,000 Total Revenue3,920,00003,920,000 TOTAL RESOURCE10,409,153,91210,413,068 S6 II.REQUIREMENTS Capital Projects Capital Projects0(560,937)(560,937) c Cap. Carryover (Budget only) 770,321(209,384)560,937 d Total Capital Projects770,321(770,321)0 Non-Departmental Interfund Transfers599,832560,9371,160,769 c Misc. Fiscal Transactions000 b Intergovernmental Expend.2,406,87534,6902,441,565 Reserve2,500,00002,500,000 Balance Available4,132,128178,6064,310,734 a,b,d Total Non-Departmental9,638,835774,23310,413,068 TOTAL REQUIREMENT10,409,153,91210,413,068 S6 812 Urban Renewal Agency Downtown Debt Service a) Increase the budgeted Beginning Working Capital by $3,912 and increase Balance Available by the same amount. The adjustment brings the FY07 Budgeted Beginning Working Capital in compliance with the audited FY06 actual revenues and expenditures as determined by Grove, Mueller & Swank P.C., the City's external auditor. b) Reappropriate unused URA funding of $34,690 for LRCS Cultural Policy Review and decrease Balance Available by the same amount (approved by City Council in June, 2005). c) Transfer $560,937 of existing URA-Downtown capital project appropriation to new Downtown Capital Projects Fund. d) Reduce excess capital appropriation by $209,384 and increase Balance Avaliable by the same amount. 813 Urban Renewal Agency Downtown Capital Projects Fund FY07FY07FY07 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITA L000 CHANGE TO WORKING CAPITA L REVENUE Interfund Transfers300,000560,937860,937 a Total Revenue300,000560,937860,937 TOTAL RESOURCE300,000560,937860,937 S II.REQUIREMENTS Capital Projects Capital Projects300,000560,937860,937 a Total Capital Projects300,000560,937860,937 TOTAL REQUIREMENT300,000560,937860,937 S 813 Urban Renewal Agency Downtown Capital Projects Fund a) Recognize $560,937 transfer of existing URA-Downtown capital appropriation from Downtown Debt Service Fund to new Downtown Capital Projects Fund. 821 Urban Renewal Agency Riverfront General Fund FY07FY07FY07 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITA L32,58918,89451,483 a CHANGE TO WORKING CAPITA L REVENUE Taxes575,0000575,000 Rental25,000025,000 Miscellaneous25,000025,000 Total Revenue625,0000625,000 TOTAL RESOURCE657,58918,89676,483 S4 II.REQUIREMENTS Department Operating Planning and Development261,3160261,316 Total Department Operating261,3160261,316 Non-Departmental Interfund Transfers320,0000320,000 Misc. Fiscal Transactions000 b Intergovernmental Expend.12,50012,50025,000 Balance Available63,7736,39470,167 a,b Total Non-Departmental396,27318,894415,167 TOTAL REQUIREMENT657,58918,89676,483 S4 821 Urban Renewal Agency Riverfront General Fund a) Increase the budgeted Beginning Working Capital by $18,894 and increase the Balance Available by the same amount. The adjustment brings the FY07 budgeted Beginning Working Capital in compliance with the audited FY06 actual revenues and expenditures as determined by Grove, Mueller & Swank P.C., the City's external auditor. b) Reappropriate unused URA funding of $12,500 for LRCS Cultural Policy Review and decrease Balance Available by the same amount (approved by City Council in June, 2005). 822 Urban Renewal Agency Riverfront Debt Service Fund FY07FY07FY07 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITA L80,00071,025151,025 a CHANGE TO WORKING CAPITA L REVENUE Interfund Transfers320,0000320,000 Fiscal Transactions04,000,0004,000,000 b Total Revenue320,0004,000,0004,320,000 TOTAL RESOURCE400,0004,071,024,471,02 S55 II.REQUIREMENTS Non-Departmental Debt Service071,02571,025 c Intergovernmental Expend.04,000,0004,000,000 b Reserve (less RFE)400,0000400,000 Balance Available000 a,c Total Non-Departmental400,0004,071,0254,471,025 TOTAL REQUIREMENT400,0004,071,024,471,02 S55 822 Urban Renewal Agency Riverfront Debt Service Fund a) Increase the budgeted Beginning Working Capital by $71,025 and increase the Balance Available by the same amount. The adjustment brings the FY07 Budgeted Beginning Working Capital in compliance with the audited FY06 actual revenues and expenditures as determined by Grove, Mueller & Swank P.C., the City's external auditor. b) Reappropriate $4 million payment to the City of Eugene for the East Broadway Garage Project. c) Re-establish bond issuance cost appropriation of $71,025 for the East Broadway Garage project and reduce Balance Available by the same amount. 823 Urban Renewal Agency Riverfront Capital Projects Fund FY07FY07FY07 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITA L43,99921,31865,317 a CHANGE TO WORKING CAPITA L REVENUE Miscellaneous20,000020,000 Total Revenue20,000020,000 TOTAL RESOURCE63,99921,31885,317 S II.REQUIREMENTS Capital Projects Cap. Carryover (Budget only) 42,40040,83683,236 b Total Capital Projects42,40040,83683,236 Non-Departmental Intergovernmental Expend.000 Balance Available21,599(19,518)2,081 a,b Total Non-Departmental21,599(19,518)2,081 TOTAL REQUIREMENT63,99921,31885,317 S 823 Urban Renewal Agency Riverfront Capital Projects Fund a) Increase the budgeted Beginning Working Capital by $21,318 and increase Balance Available by the same amount. The adjustment brings the FY07 Budgeted Beginning Working Capital in compliance with the audited FY06 actual revenues and expenditures as determined by Grove, Mueller & Swank P.C., the City's external auditor. b) Increase the capital carryover by $40,836 and decrease Balance Available by the same amount. This action reconciles the FY07 Capital Carryover Estimate to the actual ending FY06 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, 2006, AND ENDINJUNE 30, 2007. 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,forthefiscalyearbeginningJuly1,2006,andendingJune30, 2007, as set forth in attached Exhibit "A" is hereby adopted. Section 2. ThesupplementalamountsforthefiscalyearbeginningJuly1,2006,andending June30,2007,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 11th day of December, 200. 6 Director EXHIBIT "A" In dollars URBAN RENEWAL AGENCY DOWNTOWN GENERAL FUND Non-Departmental Miscellaneous Fiscal Transactions140,757 Total Non-Departmental 140,757 TOTAL URA DOWNTOWN GENERAL FUN140,757 D URBAN RENEWAL AGENCY DOWNTOWN DEBT SERVICE FUND Capital Projects Capital Projects(770,321) Total Capital Projects (770,321) Non-Departmental Interfund Transfer560,937 * Balance Available178,606 Intergovernmental Expenditures34,690 Total Non-Departmental 774,233 TOTAL URA DOWNTOWN DEBT SERVICE FUND3,912 URBAN RENEWAL AGENCY DOWNTOWN CAPITAL PROJECTS FUND Capital Projects Capital Projects560,937 Total Capital Projects 560,937 TOTAL URA DOWNTOWN CAPITAL PROJECTS FUN560,937 D URBAN RENEWAL AGENCY RIVERFRONT GENERAL FUND Non-Departmental * Balance Available6,394 Intergovernmental Expenditures12,500 Total Non-Departmental 18,894 TOTAL URA RIVERFRONT GENERAL FUN18,894 D URBAN RENEWAL AGENCY RIVERFRONT DEBT SERVICE FUND Non-Departmental Debt Service71,025 Intergovernmental Expenditures4,000,000 Total Non-Departmental 4,071,025 TOTAL URA RIVERFRONT DEBT SERVICE FUN4,071,025 D URBAN RENEWAL AGENCY RIVERFRONT CAPITAL PROJECTS FUND Capital Projects Capital Projects40,836 Total Capital Projects 40,836 Non-Departmental * Balance Available(19,518) Total Non-Departmental (19,518) TOTAL URA RIVERFRONT CAPITAL PROJECTS FUN21,318 D TOTAL REQUIREMENTS - ALL FUND4,816,843 S * Reserves and Balance Available amounts are not appropriated for spending and are shown for information purposes only.