HomeMy WebLinkAboutItem 5: FY11 URA Supplemental Budget (2)
EURA
UGENE RBAN ENEWAL GENCY
AIS
GENDA TEM UMMARY
Action: Adoption of Resolution 1060 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 27, 2011 Agenda Item Number: 5
Department: Central Services Staff Contact: Pavel Gubanikhin
www.eugene-or.gov Contact Telephone Number: (541) 682-5512
ISSUE STATEMENT
The Urban Renewal Agency Board is required to take action on this item. 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.
BACKGROUND
Supplemental Budgets recognize new revenue and authorize other unanticipated changes in legal
appropriations during a fiscal year. An Urban Renewal Agency Board public hearing on this
supplemental budget resolution was held on June 20, 2011.
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
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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 this supplemental
budget.
SUGGESTED MOTION
Move to adopt Resolution 1060 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
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812 Urban Renewal Agency Downtown Debt Service
Attachment A
FY11FY11FY11FY11
AdoptedSB1 ActionJune SB Revised
Action
I.RESOURCES
BEGINNING WORKING CAPITAL
4,718,491(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.
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-Departmental
3,400,000
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.