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HomeMy WebLinkAboutItem 01 Supplemental Budget Resolution 1AGENDA ITEM SUMMARY Meeting Date: 11/9/2020 Meeting Type: Regular Meeting Department: Finance Staff Contact: Neil Obringer S P R I N G F I E L D ECONOMIC Staff Phone No: 541.736.1032 DEVELOPMENT AGENCY Estimated Time: 10 Minutes ITEM TITLE: SUPPLEMENTAL BUDGET RESOLUTION 1 ACTION REQUESTED: Conduct a public hearing and adopt/not adopt the following resolutions: A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: SEDA Glenwood General and SEDA Downtown General Funds. ISSUE STATEMENT: At various times during the fiscal year, the SEDA Board of Directors are requested to make adjustments to the annual budget to reflect needed changes in planned activities, to recognize new revenues, or to make other required adjustments. These adjustments to resources and requirements change the current budget and are processed through supplemental budget requests scheduled by the Finance Department on an annual basis. The supplemental budget being presented includes adjusting resources and requirements in: SEDA Glenwood General and SEDA Downtown General Funds. The SEDA Board of Directors is asked to approve the attached Supplemental Budget Resolution. ATTACHMENTS: Attachment 1. Supplemental Budget Resolution and Exhibit A DISCUSSION/ FINANCIAL IMPACT: Proposed changes to the budget include the addition of a $173,700 appropriation to allow for the removal of reversionary restrictions from a section of right-of-way in Glenwood and a $840,000 appropriation to complete a proposed property purchase in the Downtown. This supplemental budget also provides for the normal adjustment to beginning cash. The overall financial impact of the supplemental budget resolution is to increase capital project appropriations by $1,013,700. This increase is offset by a $788,085 decrease in reserves and a $225,615 increase in beginning cash. Change to Supplemental Budget Format: In an effort to make supplemental budget information more useful to the Board and to members of the public, staff has adjusted the format of the supplemental budget materials. The resolution now includes columns showing the adopted budget, the proposed changes, and a column showing the revised budget that results from those changes. In the past, only the proposed changes were included in the resolution. Staff hopes that by showing proposed changes in the context of the larger budget it will improve its usefulness for the Board, members of the public, and staff. Along with the change in format to the financial tables, staff has moved the detailed narrative text describing the purpose and amount of the proposed changes out of the briefing memorandum and into the commentary sections within Exhibit A of the resolution itself. Budget law requires that this narrative be included in the resolution and the removal from the briefing memorandum removes a redundancy. SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY RESOLUTION NO. ___________ SUPPLEMENTAL BUDGET 1 A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: SEDA GLENWOOD GENERAL FUND, AND SEDA DOWNTOWN GENERAL FUNDS WHEREAS, the Springfield Economic Development Agency Board of Directors has adopted the budget and made appropriations for Fiscal Year 2020-2021 through Resolution No. SEDA2020-03 adopted June 22, 2020; WHEREAS, ORS 294.471(1) and (2) permit a supplemental budget due to an occurrence or condition that was not known at the time the budget was prepared that requires a change in financial planning; WHEREAS, the Springfield Economic Development Agency Board of Directors is requested to make adjustments to the Fiscal Year 2020-2021 budget as described in Exhibit A, which is attached and incorporated by reference; WHEREAS, this supplemental budget is being presented for consideration at a regular meeting of the Springfield Economic Development Agency Board of Directors; and WHEREAS, notice of a supplemental budget, including information regarding such revenues and expenditures was published in a newspaper of general circulation not less than 5 days prior to the public meeting, NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY, An Urban Renewal Agency of the State of Oregon, as follows: Section 1: The Fiscal Year 2020-2021 budget and appropriations, as adopted by Resolution No. SEDA2020-03, are hereby adjusted as provided in Exhibit A. Section 2: This Resolution will take effect upon adoption by the Board of Directors. ADOPTED by the Board of Directors of the Springfield Economic Development Agency this ___ day of _________, ____, by a vote of _____ for and ____ against. _______________________ Marilee Woodrow, Chair Springfield Economic Development Agency Board of Directors ATTEST: __________________________ Leonard Stoehr, Secretary Springfield Economic Development Agency Board of Directors Attachment 1, Page 1 of 3 FY21 Adopted Budget Supplemental Budget #1 FY21 Revised Budget Operating Material and Services 223,717$ -$ 223,717$ Capital City Manager's Office Capital Projects - 173,700 173,700 (1) Non-Departmental Debt Service 727,905 - 727,905 Reserves*839,528 (64,556) 774,972 (1,2) Total Non-Departmental 1,567,433 (64,556) 1,502,877 Total SEDA Glenwood General Fund 1,791,150$ 109,144$ 1,900,294$ Operating Material and Services 490,487$ -$ 490,487$ Capital City Manager's Office Capital Projects - 840,000 840,000 (1) Non-Departmental Reserves*1,617,900 (723,529) 894,371 (1,2) Total Non-Departmental 1,617,900 (723,529) 894,371 Total SEDA Downtown General Fund 2,108,387$ 116,471$ 2,224,858$ EXHIBIT A FY 2020-2021 SUPPLEMENTAL BUDGET No. 1 SEDA Glenwood General Fund - 229 SEDA Downtown General Fund - 230 Glenwood General Fund Commentary: 1.) Request authority to increase appropriations by $173,700 for the removal of right of way reversion from Oregon Department of Transportation (ODOT) on City owned property located in Glenwood. Approval of this activity was granted during the SEDA Board meeting on June 22nd and was not anticipated when preparing the adopted budget. 2.) Beginning cash adjustment. Downtown General Fund Commentary: 1.) Based on SEDA Board Direction, the Urban Renewal Agency might complete purchase of Downtown area real property from the Springfield Utility Board. Specific parcels include 17-03-35-32, taxlots 4900, 5000, and 5100. The total purchase price is not to exceed $840,000. Less funds may be required to complete the purchase following final inspections and negotiations and final purchase and sale will be formally reviewed and approved by the SEDA Board. Any unspent funds would held for the remainder of the FY and returned to Fund 230 reserves. This request relates to a proposed activity that could not have been anticipated in the adopted budget. 2.) Beginning cash adjustment. Exhibit A, Page 1 of 2 Attachment 1, Page 2 of 3 FY21 Adopted Budget Supplemental Budget #1 FY21 Revised Budget Capital Projects 60,000$ -$ 60,000$ Non-Departmental Reserves*208 - 208 Total SEDA Glenwood Capital Projects Fund 60,208$ -$ 60,208$ TOTAL RESOLUTION 3,959,745$ 225,615$ 4,185,360$ * Reserves are not appropriated for spending and are shown for informational purposes only. SEDA Glenwood Capital Projects Fund - 429 Glenwood Capital Projects Fund Commentary: No change Exhibit A, Page 2 of 2 Attachment 1, Page 3 of 3