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HomeMy WebLinkAboutItem 01 Supplemental Budget Resolution 2AGENDA ITEM SUMMARY Meeting Date: 5/10/2021 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 2 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, staff request that the SEDA Board 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 is asked to approve the attached Supplemental Budget Resolution. ATTACHMENTS: Attachment 1. Supplemental Budget Resolution and Exhibit A DISCUSSION/ FINANCIAL IMPACT: This supplemental budget includes proposed changes to the budget as outlined in the commentary section of Exhibit A in the attached resolution. The overall financial impact of the supplemental budget resolution is to increase operating expenses by $786,000 and capital project expenses by $1,150,000. This increase is offset by a $1,086,000 decrease in reserves and an $850,000 increase in new revenue. SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY RESOLUTION NO. ___________ SUPPLEMENTAL BUDGET 2 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 has adopted the budget and made appropriations for Fiscal Year 2020-2021 through Resolution No. SEDA2020-03 adopted June 22, 2020, and as amended by Resolution No. SEDA2020-04 adopted November 09, 2020; WHEREAS, ORS 294.471(1)(a) permits 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 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; 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 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, and as amended by Resolution No. SEDA2020-04 are hereby adjusted as provided in Exhibit A. Section 2: This Resolution will take effect upon adoption by the Agency Board. ADOPTED by the Board 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: __________________________ Sean VanGordon, Secretary Springfield Economic Development Agency Board FY21 Adopted Budget Supplemental Budget #1 Supplemental Budget #2 FY21 Revised Budget Operating Material and Services 223,717$ -$ 100,000$ 323,717$ (1) Capital City Manager's Office Capital Projects - 173,700 300,000 473,700 (2,3) Non-Departmental Debt Service 727,905 - - 727,905 Reserves*839,528 (64,556) (400,000) 374,972 (1,2,3) Total Non-Departmental 1,567,433 (64,556) (400,000) 1,102,877 Total SEDA Glenwood General Fund 1,791,150$ 109,144$ -$ 1,900,294$ Operating Material and Services 490,487$ -$ 686,000$ 1,176,487$ (1,2) Capital City Manager's Office Capital Projects - 840,000 850,000 1,690,000 (3) Non-Departmental Reserves*1,617,900 (723,529) (686,000) 208,371 (1,2) Total Non-Departmental 1,617,900 (723,529) (686,000) 208,371 Total SEDA Downtown General Fund 2,108,387$ 116,471$ 850,000$ 3,074,858$ EXHIBIT A FY 2020-2021 SUPPLEMENTAL BUDGET No. 2 SEDA Glenwood General Fund - 229 SEDA Downtown General Fund - 230 Glenwood General Fund Commentary: 1.) The SEDA Board has directed staff to review and make recommendations on received development proposals. This supplemental budget appropriates $100,000 to allow for outside legal, financial, and development consultants. Advisors will review and advise staff and present to the Board througout the process. This appropriation responds to SEDA activities which were was unknown at the time of FY21 budget development and could not have been incorporated into the adopted budget. 2.) Appropriate $25,000 to allow for unanticipated survey, recording and contracts for service related to removal of right of way reversion from Oregon Department of Transportation (ODOT) on City owned property located in Glenwood and preparation of sale for redevelopment. This appropriation responds to costs which were not anticipated at the time of the prior supplemental budget for this activity. 3.) The SEDA Board authorized acquisition of real property from Glenwood north riverfront area property owner, Golden Emerald in an amount of $260,000. This supplemental budget provides for the appropriation of $275,000 to allow for closing costs and costs associated with transition of property management and property taxes during FY21. This appropriation responds to SEDA activities which were was unknown at the time of FY21 budget development and could not have been incorporated into the adopted budget. Downtown General Fund Commentary: 1.) SEDA has authorized a loan of $2M to the Blue McKenzie Project to facilitate predevelopment of an 8 story, mixed use development on the Springfield Motors site. This supplemental budget appropriates $610,000 for land acquisition, predevelopment costs and consultant support. This appropriation responds to SEDA activities which were was unknown at the time of FY21 budget development and could not have been incorporated into the adopted budget. 2.) The SEDA Board authorized a grant of $76,000 to Masaka Properties to assist in assessment work related to their proposed development concept to be located on the corner of Pioneer Pkwy West and Main Street. This appropriation responds to SEDA activities which were was unknown at the time of FY21 budget development and could not have been incorporated into the adopted budget. 3.) The SEDA Board authorized an acquisition of real property from the Willamalane Park and Recreation District. The authorized purchase price is $785,000. $850,000 is included to allow for closing costs incurred and costs associated with rezoning of the property from PLO to Mixed-Use. This appropriation responds to SEDA activities which were was unknown at the time of FY21 budget development and could not have been incorporated into the adopted budget. Exhibit A, Page 1 of 2 FY21 Adopted Budget Supplemental Budget #1 Supplemental Budget #2 FY21 Revised Budget Capital Projects 60,000$ -$ -$ 60,000$ Non-Departmental Reserves*208 - - 208 Total SEDA Glenwood Capital Projects Fund 60,208$ -$ -$ 60,208$ TOTAL RESOLUTION 3,959,745$ 225,615$ 850,000$ 5,035,360$ * 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