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HomeMy WebLinkAboutItem 01 FY23 Supplemental Budget 3AGENDA ITEM SUMMARY Meeting Date: 6/12/2023 Meeting Type: Regular Meeting Department: Finance Staff Contact: Neil Obringer / Finance SPRINGFIELD ECONOMIC Staff Phone No: 541.736.1032 DEVELOPMENT AGENCY Estimated Time: 10 Minutes 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 FUND, SEDA DOWNTOWN GENERAL FUND. ISSUE At various times during the fiscal year, the SEDA Board is asked to make STATEMENT: 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 both the SEDA Glenwood General Fund and SEDA Downtown General Fund. The SEDA Board is asked to approve the attached Supplemental Budget Resolution. ATTACHMENTS: 1. Supplemental Budget Resolution and Exhibit A DISCUSSION/ This supplemental budget includes proposed changes to the budget as outlined FINANCIAL below and in the commentary section of Exhibit A in the attached resolution. IMPACT: Glenwood General Fund Summary: This supplemental budget creates a new legal level category (Misc. Fiscal Transactions) to provide for bond issuance costs in the amount of $69,000. At the time of the borrowing for SEDA Glenwood, it was unknown whether it would be issued as a commercial loan or bond. Since the borrowing was issued as a bond, it is now required that bond issuance costs be provided for in the budget. These expenditure increases are offset by property tax revenues which came in $150,000 above previous estimates, with the balance going to reserves. Downtown General Fund Summary: This supplemental budget provides for the repayment of the interfund loan from the City to SEDA in the amount of $900,000, and a $15,000 increase in interfund loan interest expense to reflect current interest rates. These expenditure increases are offset by property tax revenues which came in $692,000 above previous estimates and the recognition of $345,000 in property sale revenue, with the balance going to reserves. SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY RESOLUTION NO. SUPPLEMENTAL BUDGET 3 A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: SEDA GLENWOOD GENERAL FUND, SEDA DOWNTOWN GENERAL FUND. WHEREAS, the Springfield Economic Development Agency Board has adopted the budget and made appropriations for Fiscal Year 2022-2023 through Resolution No. SEDA2022-03 adopted June 13, 2022 and as amended by Resolution SEDA2022-06 adopted October 24, 2022, and by Resolution SEDA2023- 01 adopted January 9, 2023; 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 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; and WHEREAS, notice of a supplemental budget 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 2022-2023 budget and appropriations, as adopted by Resolution No. SEDA2022-03 and as amended by Resolution SEDA2022-06, and by Resolution SEDA2023-01 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: Allie Camp, Staff Liaison Springfield Economic Development Agency PAGE 1 OF 1 Attachment 1 Page 1 of 3 SEDA Glenwood General Fund - 229 Operating Material and Services Capital Project Expense Non -Departmental Debt Service Misc Fiscal Transactions Reserves Total Non -Departmental Total SEDA Glenwood General Fund Exhibit A Page 1 of 2 Exhibit A FY 2022-2023 Supplemental Budget No. 3 FY23 Adopted Supplemental Supplemental Supplemental FY23 Revised Budget Budget #1 Budget #2 Budget #3 Budget $ 317,705 $ - - 5,000,000 724,520 2,000,000 479,767 38,891 1,204,287 2,038,891 $ 1,521,992 $ 7,038,891 $ $ 317,705 5,000,000 - 2,724,520 69,000 69,000 (1) 81,000 599,658 (1) 150,000 3,393,178 - $ 150,000 $ 8,710,883 Glenwood General Fund Commentary: 1.) This supplemental budget creates a new legal level category (Misc. Fiscal Transactions) to provide for bond issuance costs in the amount of $69,000. At the time of the borrowing for SEDA Glenwood it was unknown whether it would be issued as a commercial loan or bond. Since the borrowing was issued as a bond, it is now required that bond issuance costs be provided for in the budget. These expenditure increases are offset by property tax revenues which came in $150,000 above previous estimates, with the balance going to reserves. SEDA Downtown General Fund - 230 Operating Materials and Services Capital Project Expense Non -Departmental Debt Service (Interfund) Misc Fiscal Transactions Reserves Total Non -Departmental FY23 Adopted Supplemental Supplemental Supplemental FY23 Revised Budget Budget #1 Budget #2 Budget #3 Budget $ 577,216 $ 401,488 $ 100,000 $ - $ 1,078,704 1,100,000 1,100,000 415,000 - 915,000 1,330,000 (1) - - 10,000,000 - 10,000,000 275,131 21,807 - 122,000 418,938 (1) 690,131 21,807 10,000,000 1,037,000 11,748,938 Total SEDA Downtown General Fund $ 1,267,347 $ 423,295 $ 11,200,000 $ 19037,000 $ 13,927,642 Downtown General Fund Commentary: 1.) This supplemental budget provides for the repayment of the interfund loan from the City to SEDA in the amount of $900,000, and a $15,000 increase in interfund loan interest expense to reflect current interest rates. These expenditure increases are offset by property tax revenues which came in $692,000 above previous estimates and the recognition of $345,000 in property sale revenue, with the balance going to reserves. Attachment 1 Page 2 of 3 Exhibit A Page 2 of 2 FY23 Adopted Supplemental Supplemental Supplemental FY23 Revised Budget Budget #1 Budget #2 Budget #3 Budget SEDA Glenwood Capital Proiects Fund - 429 Capital Capital Project Expense $ - $ 58,399 $ $ $ 58,399 Non -Departmental Reserves 208 - 208 Total SEDA Glenwood Capital Project Fu $ 208 $ 58,399 $ - $ - $ 58,607 Glenwood Capital Project Fund Commentary: No current activity. TOTAL RESOLUTION $ 2,789,547 $ 7,520,585 $ 11,200,000 $ 1,187,000 $ 22,697,132 Attachment 1 Page 3 of 3