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HomeMy WebLinkAboutItem 5: URA: Resolution Adopting a Supplemental Budget EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Public Hearing and Action: Resolution 1049 Adopting a Supplemental Budget; Making Appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year Beginning July 1, 2008, and Ending June 30, 2009 Meeting Date: December 8, 2008 Agenda Item Number: 5 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 FY09 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 transactions totaling $608,979 in proposed reductions to the FY09 Adopted Budget. Brief descriptions of the proposed transactions are provided in Attachment A. This supplemental budget does not authorize any increased property tax levy and has been prepared and advertised in conformance with Oregon statutes. 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 carryover adjustments: Transactions Related to Beginning Working Capital Isler & Company, LLC, the City's external auditor, has completed its audit for FY08. Based on audited FY08 actual revenues and expenditures, staff determined the FY09 Actual Beginning Working Capital for all funds. The FY08 Actual Beginning Working Capital was then reconciled with the FY09 Budgeted Beginning Working Capital, and the difference between the Budgeted and Actual Beginning Working Capital is the audit adjustment (sometimes called the Marginal Beginning Working Capital adjustment or MBWC) being recognized on this Supplemental Budget. If the adjustment is an increase to Beginning Working Capital; that is, in the prior year the fund received more revenue than was expected and/or expended less than was budgeted, then the offsetting adjustment in most funds is an increase to Balance Available or Reserve, but in some cases Department Operating or Capital revenues and expenditures are affected. Likewise, if the adjustment is a decrease to the Beginning Working Capital estimate, then most usually Balance Available or Reserves are reduced. These adjustments are described by fund in the attached Transaction Summary (Attachment A). The Beginning Working Capital Adjustment across all of the URA funds is a reduction of $4.0 million. The Downtown District’s adjustment is a reduction of $4.13 million and the Riverfront Districts Z:\CMO\2008 Council Agendas\M081208\S0812085.doc adjustment is an increase of $131,309. The overestimate in the Downtown District is because the authorized funding for the Beam project from the HUD 108 loans and BEDI grant was not used in FY08. The buildings were purchased in July 2008 (FY09). The distribution of the MBWC adjustment is shown by fund in the Transaction Summary (Attachment A). Reappropriations Reappropriation transactions recognize appropriations for programs initiated or projects authorized in FY08 by the Directors, but not completed in that fiscal year and for which a purchase order had not been issued by June 30, 2008. Transactions in this supplemental budget rebudget $3.39 million in BEDI grant and HUD 108 loan revenue received from the City of Eugene and appropriates the funds to complete the purchase of the Centre Court and Washburne buildings according to the plan approved by the council. The transactions also rebudget $451,217 for the Downtown Commercial Revitalization Loan Program. Capital Project Carryover Reconciliation The Capital Project Carryover estimate is reconciled in this supplemental budget. An estimate of the capital carryover in each pertinent fund was established in the FY09 Annual Budget and approved by the URA Board. These estimates have been reconciled with actual FY08 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, 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 council may also adopt amended appropriation amounts or funding sources for specific requests in the supplemental budget. AGENCY DIRECTOR’S RECOMMENDATION The Agency Director recommends approval of the attached resolution adopting the Supplemental Budget. SUGGESTED MOTION Move to approve Resolution 1049 adopting a Supplemental Budget; making appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year beginning July 1, 2008, and ending June 30, 2009. Z:\CMO\2008 Council Agendas\M081208\S0812085.doc 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 Z:\CMO\2008 Council Agendas\M081208\S0812085.doc Attachment A Transaction Summary 817 Urban Renewal Agency Downtown General Fund FY09FY09FY09 AdoptedSB1 ActionRevised I.RESOURCES BEGINNING WORKING CAPITAL 2,223,783(156,973)2,066,810 a CHANGE TO WORKING CAPITAL REVENUE Intergovernmental6,700,000608,1907,308,190 b Charges for Services2,00002,000 Miscellaneous79,000079,000 Interfund Transfers332,0000332,000 Fiscal Transactions55,000055,000 Total Revenue7,168,000608,1907,776,190 TOTAL RESOURCES9,391,783451,2179,843,000 II.REQUIREMENTS Department Operating Planning and Development532,0000532,000 Total Department Operating532,0000532,000 Non-Departmental Misc. Fiscal Transactions8,809,783451,2179,261,000 b Balance Available50,000050,000 a,b Total Non-Departmental8,859,783451,2179,311,000 TOTAL REQUIREMENTS9,391,783451,2179,843,000 817 Urban Renewal Agency Downtown General Fund Beginning Working Capital Reconciliation: a) Decrease the budgeted Beginning Working Capital by $156,973 and decrease Balance Available by the same amount. The adjustment brings the FY09 Budgeted Beginning Working Capital in compliance with the audited FY08 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. Intergovernmental Revenue: b) Recognize $608,190 in intergovernmental revenue from the City of Eugene's BEDI grant to reimburse the URA for property purchase deposits. Increase appropriations for URA Commercial Revitalization Loans by $451,217 and increase Balance Available by $156,973. 813 Urban Renewal Agency Downtown Capital Projects Fund FY09FY09FY09 AdoptedSB1 ActionRevised I.RESOURCES BEGINNING WORKING CAPITAL 4,913,791(4,757,007)156,784 a CHANGE TO WORKING CAPITAL REVENUE Intergovernmental02,782,7402,782,740 c Miscellaneous16,000016,000 Total Revenue16,0002,782,7402,798,740 TOTAL RESOURCES4,929,791(1,974,267)2,955,524 II.REQUIREMENTS Capital Projects Capital Carryover4,901,791(2,022,477)2,879,314 b,c Total Capital Projects4,901,791(2,022,477)2,879,314 Non-Departmental Balance Available28,00048,21076,210 a,b,c Total Non-Departmental28,00048,21076,210 TOTAL REQUIREMENTS4,929,791(1,974,267)2,955,524 813 Urban Renewal Agency Downtown Capital Projects Fund Beginning Working Capital Reconciliation: a)Decrease the budgeted Beginning Working Capital by $4,757,007 and decrease Balance Available by the same amount. The adjustment brings the FY09 Budgeted Beginning Working Capital in compliance with the audited FY08 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. Capital Carryover Reconciliation: b) Decrease the capital carryover by $769,180 and increase Balance Available by the same amount. This action reconciles the FY09 Capital Carryover Estimate to the actual ending FY08 capital projects balance and carry forward. Intergovernmental Revenue: c) Increase intergovernmental revenues from the City's Community Development Fund by $2,782,740, decrease capital appropriations by $1,253,297 and increase Balance Available by $4,036,037. This transaction rebudgets revenues from the City of Eugene (HUD 108 and BEDI grant) to fund the purchase of the Washburne and City Centre buildings. 823 Urban Renewal Agency Riverfront Capital Projects Fund FY09FY09FY09 AdoptedSB1 ActionRevised I.RESOURCES BEGINNING WORKING CAPITAL 226,418(7,096)219,322 a CHANGE TO WORKING CAPITAL REVENUE Miscellaneous6,00006,000 Total Revenue6,00006,000 TOTAL RESOURCES232,418(7,096)225,322 II.REQUIREMENTS Capital Projects Capital Carryover219,418(8,500)210,918 Total Capital Projects219,418(8,500)210,918 Non-Departmental Balance Available13,0001,40414,404 a Total Non-Departmental13,0001,40414,404 TOTAL REQUIREMENTS232,418(7,096)225,322 823 Urban Renewal Agency Riverfront Capital Projects Fund Beginning Working Capital Reconciliation: a)Decrease the budgeted Beginning Working Capital by $7,096 and decrease Balance Available by the same amount. The adjustment brings the FY09 Budgeted Beginning Working Capital in compliance with the audited FY08 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. Capital Carryover Reconciliation: b)Decrease the capital carryover by $8,500 and increase Balance Available by the same amount. This action reconciles the FY09 Capital Carryover Estimate to the actual ending FY08 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, 2008, AND ENDING JUNE 30, 2009. 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,forthefiscalyearbeginningJuly1,2008,andendingJune30, 2009, as set forth in attached Exhibit "A" is hereby adopted. Section 2. ThesupplementalamountsforthefiscalyearbeginningJuly1,2008,andending June30,2009,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 8th day of December, 2008. Director EXHIBIT "A" In dollars URBAN RENEWAL AGENCY DOWNTOWN GENERAL FUND Non-Departmental Miscellaneous Fiscal Transactions451,217 Total Non-Departmental 451,217 TOTAL URA DOWNTOWN GENERAL FUND451,217 URBAN RENEWAL AGENCY DOWNTOWN DEBT SERVICE FUND Non-Departmental * Balance Available782,762 Total Non-Departmental 782,762 TOTAL URA DOWNTOWN DEBT SERVICE FUND782,762 URBAN RENEWAL AGENCY DOWNTOWN CAPITAL PROJECTS FUND Capital Projects Capital Projects(2,022,477) Total Capital Projects (2,022,477) Non-Departmental * Balance Available48,210 Total Non-Departmental 48,210 TOTAL URA DOWNTOWN CAPITAL PROJECTS FUND(1,974,267) URBAN RENEWAL AGENCY RIVERFRONT GENERAL FUND Non-Departmental * Balance Available138,405 Total Non-Departmental 138,405 TOTAL URA RIVERFRONT GENERAL FUND138,405 URBAN RENEWAL AGENCY RIVERFRONT CAPITAL PROJECTS FUND Capital Projects Capital Projects(8,500) Total Capital Projects (8,500) Non-Departmental * Balance Available1,404 Total Non-Departmental 1,404 TOTAL URA RIVERFRONT CAPITAL PROJECTS FUND(7,096) TOTAL REQUIREMENTS - ALL FUNDS(608,979) * Reserves and Balance Available amounts are not appropriated for spending and are shown for information purposes only.