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HomeMy WebLinkAboutItem 5: URA - PH on Resolution Adopting Supplemental Budget 1 EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Public Hearing and Action: Resolution 1036 Adopting a Supplemental Budget; Making Appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year Beginning July 1, 2005 and Ending June 30, 2006 Meeting Date: December 12, 2005 Agenda Item Number: 5 Department: Central Services Staff Contact: Kitty Murdoch www.eugene-or.gov Contact Telephone Number: 682-5860 ISSUE STATEMENT City Council approval of the first Supplemental Budget for FY06 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 $957,000 in proposed changes to the FY06 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 FY05 and the City's Financial Reporting staff has completed the draft of the FY05 Comprehensive Annual Financial Report. Based on audited FY05 actual revenues and expenditures, staff determined the FY06 Actual Beginning Working Capital for all funds. The FY06 Actual Beginning Working Capital was then reconciled with the FY06 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\2005 Council Agendas\M051212\S0512125.doc Recognition of New Revenues These transactions recognize new or expected revenues, primarily from grants and other agencies, and increase the operating and capital budgets. In some cases, capital project support from other governments for ongoing projects is put into Balance Available because the project is currently budgeted and the fund is being reimbursed for a share of the costs incurred. ? The Riverfront General Fund is appropriating $500,000 in expected loan proceeds from McKenzie Willamette Medical Center to support the City of Eugene’s initial design phase of the Patterson Street Underpass. The City has included the $500,000 project authority in its Capital Carryover, as the project was authorized in FY05. The funds will not be spent without further City Council direction. 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 FY06 Annual Budget and approved by the council. These estimates have been reconciled with actual FY05 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 City Council direction or to meet legal or program requirements. Approval of Supplemental Budget #1 in December allows the organization to prepare more accurate mid-year projections by having the general ledger reflect the audited balances in each fund. This, in turn, enables staff to more accurately project the Beginning Working Capital for the next year’s Proposed Budget. RELATED CITY POLICIES These transactions conform to the City’s Financial Management Goals and Policies. COUNCIL 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. CITY MANAGER’S RECOMMENDATION The City Manager recommends approval of the attached resolution adopting the Supplemental Budget. SUGGESTED MOTION Move to adopt Resolution 1036 adopting a Supplemental Budget; making appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year beginning July 1, 2005 and ending June 30, 2006. L:\CMO\2005 Council Agendas\M051212\S0512125.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 L:\CMO\2005 Council Agendas\M051212\S0512125.doc ATTACHMENT A Transaction Summary 817 Urban Renewal Agency General Fund I. RESOURCES FY06 Adopted FY06 SB1 Action FY06 Revised BEGINNING WORKING CAPITAL 1,982,522 10,792 a 1,993,314 CHANGE TO WORKING CAPITAL REVENUE Charges for Services Miscellaneous lnterfund Transfers Fiscal Transactions Total Revenue 500 0 500 75,000 0 75,000 265,797 0 265,797 50,000 0 50,000 391,297 0 391,297 2,373,819 10,792 2,384,611 TOTAL RESOURCES II. REQUIREMENTS Department Operating Planning and Development Total Department Operating 265,797 0 265,797 265,797 0 265,797 2,063,722 1 0,792 a 2,074,514 44,300 0 44,300 2,108,022 10,792 2,118,814 2,373,819 10,792 2,384.611 Non-Departmental Misc. Fiscal Transactions Balance Available Total Non-Departmental TOTAL REQUIREMENTS 817 Urban Renewal Agency General Fund (a) This action increases the budgeted Beginning Working Capital by $10,792 and increases Misc. Fiscal Transactions by the same amount for the Downtown Revitalization Loan Program. The adjustment brings the FY06 Budgeted Beginning Working Capital in compliance with the audited FY05 actual revenues and expenditures as determined by Grove, Mueller & Swank P.C., the City's external auditor. 812 Urban Renewal Agency Debt Service FY06 FY06 FY06 Adopted SB1 Action Revised I. RESOURCES BEGINNING WORKING CAPITAL 5,041,507 424,420 a 5,465,927 CHANGE TO WORKING CAPITAL REVENUE Taxes 3,950,000 3,950,000 Miscellaneous 125,000 125,000 Total Revenue 4,075,000 0 4,075,000 TOT At RESOURCE S 9,116,507 424,420 9,540,927 II. REQUIREMENTS Capital Projects Capital Projects 450,000 0 450,000 Cap. Carryover (Budget only) 420,000 128,984 b 548,984 Total Capital Projects 870,000 128,984 998,984 Non-Departmental Interfund Transfers 265,797 0 265,797 Intergovernmental Expend. 2,403,125 0 2,403,125 Reserve 2,500,000 0 2,500,000 Balance Available 3,077,585 295,436 a,b 3,373,021 Total Non-Departmental 8,246,507 295,436 8,541,943 TOTAL REQUIREMENTS 9,116,507 424,420 9,540,927 812 Urban Renewal Agency Debt Service a) This action increases the budgeted Beginning Working Capital by $424.420 and increases Balance Available by the same amount. The adjustment brings the FY06 Budgeted Beginning Working Capital in compliance with the audited FY05 actual revenues and expenditures as determined by Grove, Mueller & Swank P.C., the City's external auditor. b) This action increases the Capital Carryover by $128,984 and decreases Balance Available by the same amount. The adjustment reconciles the FY06 Capital Carryover Estimate to the actual ending FY05 capital projects carryover balance. 821 Riverfront General Fund I. RESOURCES FY06 Adopted FY06 SB1 Action FY06 Revised BEGINNING WORKING CAPITAL 382,764 38,610 a 421,374 CHANGE TO WORKING CAPITAL REVENUE Taxes Rental Miscellaneous Fiscal Transactions Total Revenue 505,000 0 505,000 20,000 0 20,000 10,000 0 10,000 11,413.000 500,000 b 11,913,000 11,948,000 500,000 12,448,000 12,330,764 538,610 12,869,374 TOTAL RESOURCES U. REQUIREMENTS Department Operating Planning and Development Total Department Operating 232,353 0 232,353 232,353 0 232,353 11,425,500 500,000 b 11,925,500 672,911 38,610 a 711,521 12,098,411 538,610 12,637,021 12,330,764 538,610 12,869,374 Non-Departmental Intergovernmental Expend. Balance Available Total Non-Departmental TOTAL REQUIREMENTS 821 Riverfront General Fund a) This action increases the budgeted Beginning Working Capital by $38,610 and increases the Balance Available by the same amount The adjustment brings the FY06 Budgeted Beginning Working Capital in compliance with the audited FY05 actual revenues and expenditures as determined by Grove, Mueller & Swank P.C., the City's external auditor. b) This action rebudgets loan proceeds expected to be received from McKenzie Willamette Medical Center and appropriates $500,000 to the City of Eugene to support the initial design phase of the Patterson Street Underpass. 823 Riverfront Capital Projects Fund I. RESOURCES FY06 FY06 Adopted SS1 Action FY06 Revised BEGINNING WORKING CAPITAL CHANGE TO WORKING CA PIT AL 527,910 (17,239) a 510,671 REVENUE Miscellaneous Total Revenue 15,000 15,000 o o 15,000 15,000 TOTAL RESOURCES 542,910 (17,239) 525,671 II. REQUIREMENTS Capital Projects Cap. Carryover (Budget only) Total Capital Projects 127.310 (22,238) b 105,072 127,310 (22,238) 105.072 400,000 0 400.000 15,600 4,999 a,b 20,599 415.600 4,999 420,599 542,910 (17,239) 525.671 Non-Departmental Intergovernmental Expend. Balance Available Total Non-Departmental TOTAL REQUIREMENTS 823 Riverfront Capital Projects Fund a) This action decreases the budgeted Beginning Working Capital by $17,239 and decreases Balance Available by the same amount. The adjustment brings the FY06 Budgeted Beginning Working Capital in compliance with the audited FY05 actual revenues and expenditures as determined by Grove, Mueller & Swank P,C., the City's external auditor, b} This action decreases the Capital Carryover by $22,238 and increases Balance Available by the same amount. This adjustment reconciles the FY06 Capital Carryover Estimate to the actual ending FY05 capital projects balance and carry forward. ATTACHMENT B Resolution Number A RESOLUTION ADOPTING A SUPPLEMENTAL BUDGET; MAKING APPROPRIATIONS FOR THE URBAN RENEWAL AGENCY OF THE CITY OF EUGENE FOR THE FISCAL YEAR BEGINNING JULY 1,2005, AND ENDING JUNE 30, 2006. The Urban Renewal Agency of the City of Eugene finds that adopting the Supplemental Budget and making appropriations is necessary under ORS 294.480. NOW THEREFORE, BE IT RESOLVED BY THE URBAN RENEWAL AGENCY OF THE CITY OF EUGENE as follows: Section 1. That the Supplemental Budget for the Urban Renewal Agency of the City of Eugene, Oregon, for the fiscal year beginning July 1, 2005, and ending June 30, 2006, as set forth in attached Exhibit "A" is hereby adopted. Section 2. The supplemental amounts for the fiscal year beginning July 1, 2005, and ending June 30, 2006, and for the purposes shown in attached Exhibit "An are hereby appropriated. Section 3. That this Supplemental Budget is prepared in accordance with ORS 294.480(1)(a), which authorizes the formulation of a supplemental budget resulting from "An occurrence or condition which had not been ascertained at the time of the preparation of a budget for the current year or current budget period which requires a change in financial planning." 111is Supplemental Budget was published in accordance with ORS 294.480(4). Section 4. TI1is resolution complies with ORS 294.480(5), and does not authorize an increase in the levy of property taxes above the amount published in the Annual Budget publication. The foregoing resolution adopted this 12th day of December 2005. Director EXHIBIT "A" In dollars URBAN RENEWAL AGENCY GENERAL FUND Non-Departmental Miscellaneous Fiscal Transactions Total Non-Departmental 10,792 10,792 TOTAL URA GENERAL FUND 10,792 URBAN RENEWAL AGENCY DEBT SERVICE FUND Capital Projects Capital Projects Total Capital Projects Non-Departmental * Balance Available Total Non-Departmental 128.984 128,984 295,436 295,436 TOTAL URA DEBT SERVICE FUND 424,420 URBAN RENEWAL AGENCY RIVERFRONT FUND Non-Departmental * Balance Available Intergovernmental Expenditures Total Non-Departmental 38,610 500,000 538,610 TOTAL URA RIVERFRONT FUND 538,610 URBAN RENEWAL AGENCY RIVERFRONT CAPITAL PROJECTS FUND Capital Projects Capital Projects Total Capital Projects (22,238) (22.238) Non-Departmental * Balance Available Total Non-Departmental 4,999 4,999 TOTAL URA RIVERFRONT CAPITAL PROJECTS FUND (17,239) TOTAL REQUIREMENTS - ALL FUNDS 956,583 * Reserves and Balance Available amounts are not appropriated for spending and are shown for information purposes only.