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Home My WebLink AboutItem 2: FY11 Urban Renewal Supplemental Budget EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Public Hearing: Resolution Adopting a Supplemental Budget; Making Appropriations for the Urban Renewal Agency for the Fiscal Year Beginning July 1, 2010, and Ending June 30, 2011 Meeting Date: June 20, 2011 Agenda Item Number: 2 Department: Central Services Staff Contact: Pavel Gubanikhin www.eugene-or.gov Contact Telephone Number: (541) 682-5512 ISSUE STATEMENT This meeting is a public hearing with no action required. Urban Renewal Agency Board approval of the second Supplemental Budget for FY11 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....” This Supplemental Budget consists of $3,400,000 in proposed changes to the FY11 Budget. A description of the proposed transaction is provided in Attachment A. This supplemental budget does not authorize any increased property tax levy. The Agency Board is scheduled to take final action on the supplemental budget on June 27, 2011. BACKGROUND Supplemental Budgets recognize new revenue and authorize other unanticipated changes in legal appropriations during a fiscal year. The Urban Renewal Agency Board adopted resolution 1059 in April of 2011, authorizing issuance of Urban Renewal Bonds to: (1) make a portion of the $8 million pledge to Lane Community College (LCC) for the Downtown Campus project and (2) refinance the Parking Bonds to achieve interest rate savings. The FY11 budget anticipated issuance of up to $4.5 million to fund the LCC project, but did not anticipate the Parking Bonds refinancing. The supplemental budget request increases the amount of bonds issued and the intergovernmental payment to the City’s parking fund to account for the refinancing. In addition, the bank that purchased the Urban Renewal Bonds did not require a debt service reserve as security for the financing, so funds set aside in the FY11 budget for a reserve were used instead to reduce the total amount of borrowing needed to accomplish the projects. RELATED CITY POLICIES This transaction conforms to the City’s Financial Management Goals and Policies. 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 \\Cesrv500\cc support\CMO\2011 Council Agendas\M110620\S1106202.doc or legal impact to delaying budget approval. The Agency Board 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 on June 27, 2011. SUGGESTED MOTION No motions are needed at this public hearing. The motion to be considered by the council at the June 27 meeting is: Move to approve a resolution adopting the FY11 June Supplemental Budget; making appropriations for the Urban Renewal Agency for the Fiscal Year beginning July 1, 2010, and ending June 30, 2011. ATTACHMENTS A. Transaction Summary B. Resolution FOR MORE INFORMATION Staff Contact: Pavel Gubanikhin Telephone: (541) 682-5512 Staff E-Mail: pavel.e.gubanikhin@ci.eugene.or.us OR Staff Contact: Mia Cariaga Telephone: (541) 682-5408 Staff E-Mail: mia.cariaga@ci.eugene.or.us \\Cesrv500\cc support\CMO\2011 Council Agendas\M110620\S1106202.doc 812 Urban Renewal Agency Downtown Debt Service Attachment A FY11FY11FY11FY11 AdoptedSB1 ActionJune SB Revised Action I.RESOURCES BEGINNING WORKING CAPITAL4,718,491(119,431)04,599,060 CHANGE TO WORKING CAPITAL REVENUE Taxes1,920,000001,920,000 Miscellaneous25,0000025,000 Fiscal Transactions4,500,00003,400,0007,900,000 a Total Revenue6,445,00003,400,0009,845,000 TOTAL RESOURCES11,163,491(119,431)3,400,00014,444,060 II.REQUIREMENTS Non-Departmental Debt Service150,00000150,000 Interfund Transfers1,030,000001,030,000 Intergovernmental Expend.8,740,00004,521,00013,261,000 a Reserve1,000,0000(1,000,000)0 a Balance Available243,491(119,431)(121,000)3,060 a Total Non-Departmental11,163,491(119,431)3,400,00014,444,060 TOTAL REQUIREMENTS11,163,491(119,431)3,400,00014,444,060 812 Urban Renewal Agency Downtown Debt Service a)Recognize Urban Renewal Agency bond revenues in the amount of $3,400,000, reduce Debt Service Reserve by $1,000,000, reduce Balance Available by $121,000, and increase intergovernmental expenditures for parking garage bond refinancing by $4,521,000. This action is necessary in order to account for refinancing of the parking garage bonds in order to reduce interest costs. 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, 2010, AND ENDINGJUNE 30, 2011 The Urban Renewal Agency of the City of Eugene finds that adopting the Supplemental Budge t 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,forthefiscalyearbeginningJuly1,2010,andendingJune30,2011,asset forth in attached Exhibit "A" is hereby adopted. Section 2. ThesupplementalamountsforthefiscalyearbeginningJuly1,2010,andendingJune 30, 2011, 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 27th day of June, 2011. Director EXHIBIT "A" In dollars URBAN RENEWAL AGENCY DOWNTOWN DEBT SERVICE FUND Non-Departmental * Reserves(1,000,000) * Balance Available(121,000) Intergovernmental Expenditures4,521,000 Total Non-Departmental3,400,000 TOTAL URA DOWNTOWN DEBT SERVICE FUND3,400,000 TOTAL REQUIREMENTS - ALL FUND3,400,000 S * Reserves and Balance Available amounts are not appropriated for spending and are shown for information purposes only.