HomeMy WebLinkAboutItem 02- FY23 Supplemental Budget 1AGENDA ITEM SUMMARY Meeting Date: 10/24/2022
Meeting Type: Regular Meeting
Department: Finance
Staff Contact: Nathan Bell
SPRINGFIELD ECONOMIC Staff Phone No: 541.736.1032
DEVELOPMENT AGENCY Estimated Time: 10 Minutes
ITEM TITLE: FY23 SUPPLEMENTAL BUDGET 1
ACTION Conduct a public hearing and adopt/not adopt the following resolutions:
REQUESTED:
A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE
FOLLOWING FUNDS: SEDA Glenwood General, SEDA Downtown General
Fund, and SEDA Glenwood Capital Fund.
ISSUE At various times during the fiscal year, the SEDA Board of Directors are requested
STATEMENT: 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, SEDA Downtown General Fund, and
SEDA Glenwood Capital 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/ New appropriation requests which may be of interest to the Council are
FINANCIAL summarized in the discussion below. Additional detail on all other carryforward
IMPACT: and beginning cash adjustments may be found in the commentary section of Exhibit
A in the attached resolution.
Within the Glenwood General Fund proposed changes include recognition of $7M
in loan proceeds. The primary use of this borrowing is the appropriation of $5M to
support projects in the Glenwood Urban Renewal Area including property
acquisitions, tenant relocation expenses and Master Planning expenses for
Glenwood Riverfront Development with the Edlen and Company and deChase
Miksis team. Also proposed is $2M in debt service expense to provide for the
potential payoff of the remaining balances on the 2016 and 2018 Glenwood
borrowings.
The overall financial impact of this supplemental budget resolution on all funds is
to increase operating expenses by $401,488, increase capital project expenses by
$5,058,399, increase debt service expense by $2,000,000, and increase reserves by
$60,698. These requirements are offset through an increase to beginning cash of
$520,585 and an increase in loan proceed revenue of $7,000,000.
SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY
RESOLUTION NO.
SUPPLEMENTAL BUDGET 1
A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING
FUNDS: SEDA GLENWOOD GENERAL FUND, SEDA DOWNTOWN GENERAL FUND, AND SEDA
GLENWOOD CAPITAL FUNDS
WHEREAS, the Springfield Economic Development Agency Board of Directors has adopted the budget
and made appropriations for Fiscal Year 2022-2023 through Resolution No. SEDA2022-03 adopted June
13, 2022;
WHEREAS, ORS 294.471(1)(a) permit a supplemental budget due to an occurrence or condition that
is not ascertained when preparing the original budget or a previous supplemental budget for the
current year or current budget period and 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 2022-2023 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 2022-2023 budget and appropriations, as adopted by Resolution
No. SEDA2022-03 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.
ATTEST:
Sean VanGordon, Board Secretary
Springfield Economic Development Agency
PAGE 1 OF 1
Exhibit A
FY 2022-2023
Supplemental Budget No. 1
SEDA Glenwood General Fund - 229
Operating
Material and Services
Capital Project Expense
Non -Departmental
Debt Service
Reserves
Total Non -Departmental
Total SEDA Glenwood General Fund
Exhibit A, Pagel of 2
FY23 Adopted Supplemental FY23 Revised
Budget Budget #1 Budget
$ 317,705 $ - $ 317,705
- 5,000,000 5,000,000 (1)
724,520 2,000,000 2,724,520 (1)
479,767 38,891 518,658 (2)
1,204,287 2,038,891 3,243,178
$ 1,521,992 $ 7,038,891 $ 8,560,883
Glenwood General Fund Commentary:
1.) Increase City Manager's Office Capital Project expense by $5,000,000 to provide for property
acquisition/tenant relocation expense and contractual services costs related to the Glenwood master planning
effort. Also, increase Debt Service expense by $2,000,000 to provide for the potential payoff of the remaining
balances on the 2016 and 2018 Glenwood Borrowings. These expenditures are offset by a new $7,000,000
borrowing. The need for this supplemental budget was not known until after adoption of the FY23 budget.
2.) Beginning Cash Adjustment.
SEDA Downtown General Fund - 230
Operating
Materials and Services
Non -Departmental
Debt Service (Interfund)
Reserves
Total Non -Departmental
Total SEDA Downtown General Fund
FY23 Adopted Supplemental FY23 Revised
Budget Budget #1 Budget
$ 577,216 $ 401,488 $ 978,704 (1)
415,000 - 415,000
275,131 21,807 296,938 (1,2)
690,131 21,807 711,938
$ 1,267,347 $ 423,295 $ 1,690,642
Downtown General Fund Commentary:
1.) Increase City Manager's Office operating expense by $401,488 through the carryover of unspent funds for
prior year. The Springfield Economic Develoment Agency budgeted $1.4 million in FY22 for the property
purchase and pre -development work on the Blue McKenzie Project. In FY22, $401,488 was unspent and
should be rolled forward and added to the FY23 budget.
2.) Beginning Cash Adjustment.
SEDA Glenwood Capital Proiects Fund - 429
Capital
Capital Project Expense
Non -Departmental
Reserves
Total SEDA Glenwood Capital Project Fund
Exhibit A, Page2 of 2
FY23 Adopted Supplemental FY23 Revised
Budget Budget #1 Budget
$ - $ 58,399 $ 58,399 (1, 2)
208
208
$ 208 $ 58,399 $ 58,607
Glenwood Capital Project Fund Commentary:
1.) Increase Development & Public Works capital project expense by $58,399 through the carryover of
unspent funds from the prior year related to Project P21176. Project P21176 is a federal aid project to
develop the design concept and complete NEPA analysis for the McVay Highway (OR225) corridor from
Franklin Blvd (OR126) to the southern end of City jusrisdiction (approx. 0.9 miles). This appropriation will
provide the required City match to support the project.
2.) Beginning Cash Adjustment.
TOTAL RESOLUTION $ 2,789,547 $ 7,520,585 $ 10,310,132