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HomeMy WebLinkAboutItem 4: Resolution on URA Supplemental Budget EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Public Hearing and Action: Adoption of 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, 2011 and Ending June 30, 2012 Meeting Date: December 12, 2011 Agenda Item Number: 4 Department: Central Services Staff Contact: Mia Cariaga www.eugene-or.gov Contact Telephone Number: (541) 682-5408 ISSUE STATEMENT Board approval of the first Supplemental Budget for FY12 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 to amend the Urban Renewal Agency (URA) budget to reconcile Beginning Working Capital and to realign the debt service budget for parking garage bonds. 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 Isler & Company, LLC, the City's external auditor, has completed its FY11 audit, and this Supplemental Budget reflects the Marginal Beginning Working Capital (MBWC) information provided by the auditor. The MBWC is the difference between the estimated and audited actual FY11 revenues and expenditures. The total audited adjustment to the FY12 budgeted Beginning Working Capital for URA funds is an increase of $140,784. Debt Service Budget Realignment This Supplemental Budget includes a reduction in intergovernmental expenditures budgeted for parking garage debt service and an increase in the debt service budget. This adjustment moves the parking garage debt service budget from the Parking Services Fund to the URA Downtown Debt Service Fund due to bond refunding in May 2011. Intergovernmental Revenue Adjustment As part of this Supplemental Budget, the URA Director recommends recognizing intergovernmental revenue associated with the remaining HUD loan for the Beam in the amount of $740,000, and increasing appropriations for capital development loans by the same amount. A detailed description of these transactions is provided in Attachment A. S:\CMO\2011 Council Agendas\M111212\S1112124.doc 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 Agency Director recommends adoption of the attached resolution adopting the Supplemental Budget. SUGGESTED MOTION Move to adopt Resolution XXXX adopting a Supplemental Budget; making appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year beginning July 1, 2011 and ending June 30, 2012. ATTACHMENTS A. Transaction Summary B. Resolution FOR MORE INFORMATION Staff Contact: Mia Cariaga Telephone: (541) 682-5408 Staff E-Mail: mia.cariaga@ci.eugene.or.us OR Staff Contact: Pavel Gubanikhin Telephone: (541) 682-5512 Staff E-Mail: pavel.e.gubanikhin@ci.eugene.or.us S:\CMO\2011 Council Agendas\M111212\S1112124.doc ttachment AA Transaction Summary 817 Urban Renewal Agency Downtown General Fund FY12FY12FY12 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITAL 38,000639,173677,173 a CHANGE TO WORKING CAPITAL REVENUE Intergovernmental1,626,000740,0002,366,000 a Miscellaneous56,000056,000 Interfund Transfers355,0000355,000 Fiscal Transactions80,000080,000 Total Revenue2,117,000740,0002,857,000 TOTAL RESOURCES2,155,0001,379,1733,534,173 II.REQUIREMENTS Department Operating Planning and Development355,0000355,000 Total Department Operating355,0000355,000 Non-Departmental Misc. Fiscal Transactions1,740,0001,379,1733,119,173 a Balance Available60,000060,000 Total Non-Departmental1,800,0001,379,1733,179,173 TOTAL REQUIREMENTS2,155,0001,379,1733,534,173 817 Urban Renewal Agency Downtown General Fund Beginning Working Capital Reconciliation: a) Increase the budgeted Beginning Working Capital by $639,173, increase Intergovernmental Revenues associated with the remaining HUD loan for the Beam project by $740,000, and increase appropriations for capital development loans by $1,379,173. This adjustment brings the FY12 Budgeted Beginning Working Capital in compliance with the audited FY11 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. 812 Urban Renewal Agency Downtown Debt Service FY12FY12FY12 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITAL 1,018,554(639,838)378,716 a CHANGE TO WORKING CAPITAL REVENUE Taxes1,785,00001,785,000 Miscellaneous31,000031,000 Total Revenue1,816,00001,816,000 TOTAL RESOURCES2,834,554(639,838)2,194,716 II.REQUIREMENTS Non-Departmental Debt Service370,000765,0001,135,000 b Interfund Transfers355,0000355,000 Interovernmental Expend.760,000760,0000 g() b Reserve1,000,000295,284704,716 () a,b Balance Available349,554349,5540 () a Total Non-Departmental2,834,554639,8382,194,716 () TOTAL REQUIREMENTS2,834,554(639,838)2,194,716 812 Urban Renewal Agency Downtown Debt Service Beginning Working Capital Reconciliation: a) Decrease the budgeted Beginning Working Capital by $639,838, decrease Debt Service Reserve by $290,284, and decrease Balance Available by $349,554. This adjustment brings the FY12 Budgeted Beginning Working Capital in compliance with the audited FY11 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. Debt Service Realignment: b) Decrease the Intergovernmental Expenditures budget by $760,000, decrease Debt Service Reserve by $5,000, and increase Debt Service Budget by $765,000. This adjustment moves the parking garage debt service budget from the Parking Services Fund to the URA Downtown Debt Service Fund due to bond refunding in May 2011. 813 Urban Renewal Agency Downtown Capital Projects Fund FY12FY12FY12 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITAL 740,218(51)740,167 a CHANGE TO WORKING CAPITAL REVENUE Miscellaneous2,00002,000 Total Revenue2,00002,000 TOTAL RESOURCES742,218(51)742,167 II.REQUIREMENTS Capital Projects Capital Carryover734,5930734,593 Total Capital Projects734,5930734,593 Non-Departmental Balance Available7,625(51)7,574 a Total Non-Departmental7,625(51)7,574 TOTAL REQUIREMENTS742,218(51)742,167 813 Urban Renewal Agency Downtown Capital Projects Fund Beginning Working Capital Reconciliation: a) Decrease the budgeted Beginning Working Capital by $51 and increase Balance Available by the same amount. This adjustment brings the FY12 Budgeted Beginning Working Capital in compliance with the audited FY11 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. 821 Urban Renewal Agency Riverfront General Fund FY12FY12FY12 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITAL 4,150,986141,5204,292,506 a CHANGE TO WORKING CAPITAL REVENUE Taxes825,0000825,000 Rental63,000063,000 Miscellaneous26,000026,000 Total Revenue914,0000914,000 TOTAL RESOURCES5,064,986141,5205,206,506 II.REQUIREMENTS Department Operatin g Plannin and Development249,1440249,144 g Total Department Operatin249,1440249,144 g Non-Departmental Balance Available4,815,842141,5204,957,362 a Total Non-Departmental4,815,842141,5204,957,362 TOTAL REQUIREMENTS5,064,986141,5205,206,506 821 Urban Renewal Agency Riverfront General Fund Beginning Working Capital Reconciliation: a) Increase the budgeted Beginning Working Capital by $141,520 and increase Balance Available by the same amount. This adjustment brings the FY12 Budgeted Beginning Working Capital in compliance with the audited FY11 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. 823 Urban Renewal Agency Riverfront Capital Projects Fund FY12FY12FY12 doptedSB1 ActionRevised A I.RESOURCES BEGINNING WORKING CAPITAL 163,515(20)163,495 a CHANGE TO WORKING CAPITAL REVENUE Miscellaneous1,00001,000 Total Revenue1,00001,000 TOTAL RESOURCES164,515(20)164,495 II.REQUIREMENTS Capital Projects Capital Carryover141,5000141,500 Total Capital Projects141,5000141,500 Non-Departmental Balance Available23,015(20)22,995 a Total Non-Departmental23,015(20)22,995 TOTAL REQUIREMENTS164,515(20)164,495 823 Urban Renewal Agency Riverfront Capital Projects Fund Beginning Working Capital Reconciliation: De a)crease the budgeted Beginning Working Capital by $20 and decrease Balance Available by the same amount. This adjustment brings the FY12 Budgeted Beginning Working Capital in compliance with the audited FY11 actual revenues and expenditures as determined by Isler & Company, LLC, the City's external auditor. 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, 2011, AND ENDINGJUNE 30, 2012. 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,forthefiscalyearbeginningJuly1,2011,andendingJune30, 2012, as set forth in attached Exhibit "A" is hereby adopted. Section 2. ThesupplementalamountsforthefiscalyearbeginningJuly1,2011,andending June30,2012,andforthepurposesshowninattachedExhibit"A"arehereby appropriated. Section 3. ThatthisSupplementalBudgetispreparedinaccordancewithORS294.480(1)(a), whichauthorizestheformulationofasupplementalbudgetresultingfrom"An occurrenceorconditionwhichhadnotbeenascertainedatthetimeofthe preparationofabudgetforthecurrentyearorcurrentbudgetperiodwhichrequires achangeinfinancialplanning."ThisSupplementalBudgetwaspublishedin accordance with ORS 294.480(4). Section 4. ThisresolutioncomplieswithORS294.480(5),anddoesnotauthorizeanincrease inthelevyofpropertytaxesabovetheamountpublishedintheAnnualBudget publication. The foregoing resolution adopted this 12th day of December, 2011. Director EXHIBIT "A" In dollars URBAN RENEWAL AGENCY DOWNTOWN GENERAL FUND Non-Departmental Miscellaneous Fiscal Transactions1,379,173 Total Non-Departmental 1,379,173 TOTAL URA DOWNTOWN GENERAL FUN1,379,173 D URBAN RENEWAL AGENCY DOWNTOWN DEBT SERVICE FUND Non-Departmental Debt Service765,000 * Reserves(295,284) * Balance Available(349,554) Intergovernmental Expenditures(760,000) Total Non-Departmental (639,838) TOTAL URA DOWNTOWN DEBT SERVICE FUND(639,838) URBAN RENEWAL AGENCY DOWNTOWN CAPITAL PROJECTS FUND Non-Departmental * Balance Available(51) Total Non-Departmental (51) TOTAL URA DOWNTOWN CAPITAL PROJECTS FUN(51) D URBAN RENEWAL AGENCY RIVERFRONT GENERAL FUND Non-Departmental * Balance Available141,520 Total Non-Departmental 141,520 TOTAL URA RIVERFRONT GENERAL FUN141,520 D URBAN RENEWAL AGENCY RIVERFRONT CAPITAL PROJECTS FUND Non-Departmental * Balance Available(20) Total Non-Departmental (20) TOTAL URA RIVERFRONT CAPITAL PROJECTS FUN(20) D TOTAL REQUIREMENTS - ALL FUND880,784 S * Reserves and Balance Available amounts are not appropriated for spending and are shown for information purposes only.