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HomeMy WebLinkAboutItem 4: URA PH and Action: FY10 Supplemental Budget #1 EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Public Hearing and Action: Resolution 1053 Adopting a Supplemental Budget; Making Appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year Beginning July 1, 2009 and Ending June 30, 2010 Meeting Date: December 14, 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 Board approval of the first Supplemental Budget for FY10 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 $337,314 in proposed changes to the FY10 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 FY09. Based on audited FY09 actual revenues and expenditures, staff determined the FY10 Actual Beginning Working Capital for all funds. The FY10 Actual Beginning Working Capital was then reconciled with the FY10 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). Z:\CMO\2009 Council Agendas\M091214\S0912144.doc The Beginning Working Capital Adjustment across all of the URA funds is an increase of $337,314. The Downtown District’s adjustment is an increase of $121,326 and the Riverfront District’s adjustment is an increase of $215,988. In the URA Downtown General Fund, the offsetting adjustment is an increase to capital development loans; in all other URA funds, the offset is an increase or a decrease to Balance Available. Reappropriations Reappropriation transactions recognize appropriations for programs initiated or projects authorized in FY09 by the URA Board, but not completed in that fiscal year and for which a purchase order had not been issued by June 30, 2009. There are no reappropriation transactions in this supplemental budget. 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 FY10 Annual Budget and approved by the URA Board. These estimates have been reconciled with actual FY09 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 URA Board may also adopt amended appropriation amounts or funding sources for specific requests in the supplemental budget. AGENCY DIRECTOR’S RECOMMENDATION The Urban Renewal Agency Director recommends approval of the attached resolution adopting the Supplemental Budget. SUGGESTED MOTION Move to adopt Resolution 1053 adopting a Supplemental Budget; making appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year beginning July 1, 2009, and ending June 30, 2010. Z:\CMO\2009 Council Agendas\M091214\S0912144.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\2009 Council Agendas\M091214\S0912144.doc Attachment A Transaction Summary 817 Urban Renewal Agency Downtown General Fund FY10FY10FY10 AdoptedSB1 ActionRevised I.RESOURCES BEGINNING WORKING CAPITAL 1,998,156107,8112,105,967 a CHANGE TO WORKING CAPITAL REVENUE Intergovernmental6,700,00006,700,000 Charges for Services2,00002,000 Miscellaneous549,0000549,000 Interfund Transfers772,0000772,000 Fiscal Transactions50,000050,000 Total Revenue8,073,00008,073,000 TOTAL RESOURCES10,071,156107,81110,178,967 II.REQUIREMENTS Department Operating Planning and Development972,0000972,000 TotalDepartmentOperating972000,0972000, TotalDepartmentOperating9720000972000 Non-Departmental Misc. Fiscal Transactions9,049,156107,8119,156,967 a Balance Available50,000050,000 Total Non-Departmental9,099,156107,8119,206,967 0 TOTAL REQUIREMENTS10,071,156107,81110,178,967 817 Urban Renewal Agency Downtown General Fund Beginning Working Capital Reconciliation: a) Increase the budgeted Beginning Working Capital by $107,811 and increase appropriations for capital development loans by the same amount. The adjustment brings the FY10 Budgeted Beginning Working Capital in compliance with the audited FY09 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. 812 Urban Renewal Agency Downtown Debt Service FY10FY10FY10 AdoptedSB1 ActionRevised I.RESOURCES BEGINNING WORKING CAPITAL 5,696,50665,2855,761,791 a CHANGE TO WORKING CAPITAL REVENUE Taxes1,730,00001,730,000 Miscellaneous19,000019,000 Total Revenue1,749,00001,749,000 TOTAL RESOURCES7,445,50665,2857,510,791 II.REQUIREMENTS Non-Departmental Interfund Transfers772,0000772,000 Intergovernmental Expend.2,473,75002,473,750 Balance Available4,199,75665,2854,265,041 a Total Non-Departmental7,445,50665,2857,510,791 TOTAL REQUIREMENTS7,445,50665,2857,510,791 812 Urban Renewal Agency Downtown Debt Service gy Beginning Working Capital Reconciliation: a) Increase the budgeted Beginning Working Capital by $65,285 and increase Balance Available by the same amount. The adjustment brings the FY10 Budgeted Beginning Working Capital in compliance with the audited FY09 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. 813 Urban Renewal Agency Downtown Capital Projects Fund FY10FY10FY10 AdoptedSB1 ActionRevised I.RESOURCES BEGINNING WORKING CAPITAL 186,363(51,770)134,593 a CHANGE TO WORKING CAPITAL REVENUE Total Revenue000 TOTAL RESOURCES186,363(51,770)134,593 II.REQUIREMENTS Capital Projects Capital Carryover138,153(3,560)134,593 b Total Capital Projects138,153(3,560)134,593 Non-Departmental Balance Available48,210(48,210)0 a,b Total Non-Departmental48,210(48,210)0 TOTAL REQUIREMENTS186,363(51,770)134,593 813 Urban Renewal Agency Downtown Capital Projects Fund Beginning Working Capital Reconciliation: a) Decrease the budgeted Beginning Working Capitalby$51770anddecreaseBalanceAvailablebythesameamountTheadjustmentbrings,. Capitalby$51770anddecreaseBalanceAvailablebythesameamountTheadjustmentbrings the FY10 Budgeted Beginning Working Capital in compliance with the audited FY09 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. Capital Carryover Reconciliation: b) Decrease the capital carryover by $3,560 and increase Balance Available by the same amount. This action reconciles the FY10 Capital Carryover Estimate to the actual ending FY09 capital projects balance and carry forward. 821 Urban Renewal Agency Riverfront General Fund FY10FY10FY10 AdoptedSB1 ActionRevised I.RESOURCES BEGINNING WORKING CAPITAL 2,631,487267,7632,899,250 a CHANGE TO WORKING CAPITAL REVENUE Taxes685,0000685,000 Rental25,000025,000 Miscellaneous26,000026,000 Total Revenue736,0000736,000 TOTAL RESOURCES3,367,487267,7633,635,250 II.REQUIREMENTS Department Operating Planning and Development288,0000288,000 Total Department Operating288,0000288,000 Non-Departmental Balance Available3,079,487267,7633,347,250 a Total Non-Departmental3,079,487267,7633,347,250 TOTALREQUIREMENTSTOTAL REQUIREMENTS3,367,487267,7633,635,25033674872677633635250 821 Urban Renewal Agency Riverfront General Fund Beginning Working Capital Reconciliation: a) Increase the budgeted Beginning Working Capital by $267,763 and increase Balance Available by the same amount. The adjustment brings the FY10 Budgeted Beginning Working Capital in compliance with the audited FY09 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. 823 Urban Renewal Agency Riverfront Capital Projects Fund FY10FY10FY10 AdoptedSB1 ActionRevised I.RESOURCES BEGINNING WORKING CAPITAL 222,322(51,775)170,547 a CHANGE TO WORKING CAPITAL REVENUE Miscellaneous2,00002,000 Total Revenue2,00002,000 TOTAL RESOURCES224,322(51,775)172,547 II.REQUIREMENTS Capital Projects Capital Carryover210,918(53,189)157,729 Total Capital Projects210,918(53,189)157,729 Non-Departmental Balance Available13,4041,41414,818 a Total Non-Departmental13,4041,41414,818 TOTAL REQUIREMENTS224,322(51,775)172,547 823 Urban Renewal Agency Riverfront Capital Projects Fund Beginning Working Capital Reconciliation: a)Decrease the budgeted Beginning Working Capital by $51,775 and decrease Balance Available by the same amount. The adjustment brings the FY10 Budgeted Beginning Working Capital in compliance with the audited FY09 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. Capital Carryover Reconciliation: b)Decrease the capital carryover by $53,189 and increase Balance Available by the same amount. This action reconciles the FY10 Capital Carryover Estimate to the actual ending FY09 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, 2009, AND ENDING JUNE 30, 2010. 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,forthefiscalyearbeginningJuly1,2009,andendingJune30, 2010, as set forth in attached Exhibit "A" is hereby adopted. Section 2. ThesupplementalamountsforthefiscalyearbeginningJuly1,2009,andending June30,2010,andforthepurposesshowninattachedExhibit"A"arehereby appropriated. Section 3. ThatthisSupplementalBudgetispreparedinaccordancewithORS294.480(1)(a), whichauthorizestheformulationofasupplementalbudgetresultingfrom"An occurrenceorconditionwhichhadnotbeenascertainedatthetimeofthe preparationofabudgetforthecurrentyearorcurrentbudgetperiodwhich requiresachangeinfinancialplanning."ThisSupplementalBudgetwas published in accordance with ORS 294.480(4). Section 4. ThisresolutioncomplieswithORS294.480(5),anddoesnotauthorizeanincrease inthelevyofpropertytaxesabovetheamountpublishedintheAnnualBudget publication. The foregoing resolution adopted this 14th day of December, 2009. Director EXHIBIT "A" In dollars URBAN RENEWAL AGENCY DOWNTOWN GENERAL FUND Non-Departmental Miscellaneous Fiscal Transactions107,811 Total Non-Departmental 107,811 TOTAL URA DOWNTOWN GENERAL FUND107,811 URBAN RENEWAL AGENCY DOWNTOWN DEBT SERVICE FUND Non-Departmental * Balance Available65,285 Total Non-Departmental 65,285 TOTAL URA DOWNTOWN DEBT SERVICE FUND65,285 URBAN RENEWAL AGENCY DOWNTOWN CAPITAL PROJECTS FUND Capital Projects Capital Projects(3,560) Total Capital Projects (3,560) Non-Departmental * Balance Available(48,210) Total Non-Departmental (48,210) TOTAL URA DOWNTOWN CAPITAL PROJECTS FUND(51,770) URBAN RENEWAL AGENCY RIVERFRONT GENERAL FUND Non-Departmental * Balance Available267,763 Total Non-Departmental 267,763 TOTAL URA RIVERFRONT GENERAL FUND267,763 URBAN RENEWAL AGENCY RIVERFRONT CAPITAL PROJECTS FUND Capital Projects Capital Projects(53,189) Total Capital Projects (53,189) Non-Departmental * Balance Available1,414 Total Non-Departmental 1,414 TOTAL URA RIVERFRONT CAPITAL PROJECTS FUND(51,775) TOTAL REQUIREMENTS - ALL FUNDS337,314 * Reserves and Balance Available amounts are not appropriated for spending and are shown for information purposes only.