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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