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Home My WebLink AboutItem 4: Public Hearing and Action: URA - Supplemental Budget 2 EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Public Hearing and Action: Resolution 1051 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: March 9, 2009 Agenda Item Number: 4 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 second Supplemental Budget for FY09 is requested in th order to carry out the sale of the 10 Avenue and Charnelton Street development site. 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 #2 consists of $940,000 in proposed changes to the FY09 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 th On October 22, 2008, the URA reviewed the proposed financing plan for the 10 Avenue and Charnelton Street site and agreed “to direct the Agency Director to enter into a Purchase and Sale th Agreement for the sale and development of the 10 & Charnelton development site” by WG Development. The transactions included in the URA supplemental budget will appropriate $440,000 towards the payment of permit fees, attorney fees, contractual services, closing fees and other costs associated with acquisition of the property. In addition, the supplemental budget will recognize $500,000 of proceeds from sale of the property to WG and appropriate those funds in the commercial revitalization loan program. Timing Expenditure authority is needed to carry out Agency direction prior to the sale of the property to WG, which is expected to occur by March 31, 2009, under the Purchase and Sale Agreement authorized by the Agency in October. RELATED CITY POLICIES These transactions conform to the City of Eugene’s Financial Management Goals and Policies, are responsive to adopted Growth Management policies, and carry out the Downtown Initiative Council Goal. Z:\CMO\2009 Council Agendas\M090309\S0903094.doc AGENCY 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 Agency may also adopt amended appropriation amounts or funding sources for specific requests in the supplemental budget. If the appropriation of $440,000 of funds for payment of permit fees, attorney fees, contractual services, closing fees and other costs associated with acquisition of the property is not approved by the Agency, the property sale will not be able to be completed as envisioned in the Purchase and Sale Agreement. AGENCY DIRECTOR’S RECOMMENDATION The Agency Director recommends adoption of the attached resolution adopting the Supplemental Budget. SUGGESTED MOTION Move to adopt Resolution 1051 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. 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\2009 Council Agendas\M090309\S0903094.doc Attachment A Transaction Summary 817 Urban Renewal Agency Downtown General Fund FY09FY09FY09FY09 AdoptedSB1 ActionSB2 ActionRevised I.RESOURCES BEGINNING WORKING CAPITAL 2,223,783(156,973)02,066,810 CHANGE TO WORKING CAPITAL REVENUE Intergovernmental6,700,000608,19007,308,190 Charges for Services2,000002,000 Miscellaneous79,0000500,000579,000 a Interfund Transfers332,0000440,000772,000 b Fiscal Transactions55,0000055,000 Total Revenue7,168,000608,190940,0008,716,190 TOTAL RESOURCES9,391,783451,217940,00010,783,000 II.REQUIREMENTS Department Operating Planning and Development532,0000440,000972,000 b Total Department Operating532,0000440,000972,000 Non-Departmental Misc. Fiscal Transactions8,809,783451,217500,0009,761,000 a Balance Available50,0000050,000 Total Non-Departmental8,859,783451,217500,0009,811,000 TOTAL REQUIREMENTS9,391,783451,217940,00010,783,000 817 Urban Renewal Agency Downtown General Fund a)Recognize $500,000 in revenue from the sale of real property at 10th Avenue and Charnelton Street site and appropriate the same amount for commercial revitalization loans. b)Recognize $440,000 transfer from the URA Downtown Debt Service Fund and appropriate the same amount for payment of permit fees, attorney fees, contractual services, closing fees and other costs related to the redevelopment of 10th Avenue and Charnelton Street site as authorized by the URA on October 22, 2008. 812 Urban Renewal Agency Downtown Debt Service FY09FY09FY09FY09 AdoptedSB1 ActionSB2 ActionRevised I.RESOURCES BEGINNING WORKING CAPITAL 5,596,744782,76206,379,506 CHANGE TO WORKING CAPITAL REVENUE Taxes1,925,000001,925,000 Miscellaneous219,00000219,000 Total Revenue2,144,000002,144,000 TOTAL RESOURCES7,740,744782,76208,523,506 II.REQUIREMENTS Non-Departmental Interfund Transfers332,0000440,000772,000 a Intergovernmental Expend.2,437,500002,437,500 Reserve2,500,000002,500,000 Balance Available2,471,244782,762(440,000)2,814,006 a Total Non-Departmental7,740,744782,76208,523,506 TOTAL REQUIREMENTS7,740,744782,76208,523,506 812 Urban Renewal Agency Downtown Debt Service a)Reduce Balance Available by $440,000 and appropriate funds for an interfund transfer to the URA Downtown General Fund to cover permit fees, attorney fees, contractual services, closing costs and other expenditures associated with redevelopment of the 10th Avenue and Charnelton Street site. 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. ThattheSupplementalBudgetfortheUrbanRenewalAgencyoftheCityofEugene, Oregon,forthefiscalyearbeginningJuly1,2008,andendingJune30,2009,asset forth in attached Exhibit "A" is hereby adopted. Section 2. ThesupplementalamountsforthefiscalyearbeginningJuly1,2008,andendingJune 30, 2009, and for the purposes shown in attached Exhibit "A" are hereby appropriated. Section 3. ThatthisSupplementalBudgetispreparedinaccordancewithORS294.480(1)(a), whichauthorizestheformulationofasupplementalbudgetresultingfrom"An occurrenceorconditionwhichhadnotbeenascertainedatthetimeofthepreparation ofabudgetforthecurrentyearorcurrentbudgetperiodwhichrequiresachangein financialplanning."ThisSupplementalBudgetwaspublishedinaccordancewith ORS 294.480(4). Section 4. ThisresolutioncomplieswithORS294.480(5),anddoesnotauthorizeanincreasein thelevyofpropertytaxesabovetheamountpublishedintheAnnualBudget publication. The foregoing resolution adopted this 9th day of March, 2009. Director EXHIBIT "A" In dollars URBAN RENEWAL AGENCY DOWNTOWN GENERAL FUND Departmental Operating Planning and Development440,000 Total Departmental Operating 440,000 Non-Departmental Miscellaneous Fiscal Transactions500,000 Total Non-Departmental 500,000 TOTAL URA DOWNTOWN GENERAL FUND940,000 URBAN RENEWAL AGENCY DOWNTOWN DEBT SERVICE FUND Non-Departmental Interfund Transfer440,000 * Balance Available(440,000) Total Non-Departmental 0 TOTAL URA DOWNTOWN DEBT SERVICE FUND0 TOTAL REQUIREMENTS - ALL FUNDS940,000 * Reserves and Balance Available amounts are not appropriated for spending and are shown for information purposes only.