TO: Urban Renewal Agency Board
THROUGH: Keith Stahley, Executive Director
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Adoption of the FY 2025 Urban Renewal Agency of the City of Salem budget
Ward(s): All Wards
Councilor(s): All Board Members
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance; Natural Environment Stewardship; Safe and Healthy Community; Safe, Reliable and Efficient Infrastructure; Strong and Diverse Economy; Welcoming and Livable Community.
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SUMMARY:
summary
The Urban Renewal Agency (URA) of the City of Salem budget for fiscal year (FY) 2025 is required by Oregon budget law to be adopted by the Agency Board prior to July 1, 2024. Adoption of this resolution will allow for authorized Agency spending in the coming fiscal year.
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ISSUE:
Shall the Urban Renewal Agency adopt Resolution No. 24-10 URA to adopt the FY 2025 Urban Renewal Agency of the City of Salem budget?
RECOMMENDATION:
recommendation
Adopt Resolution No. 24-10 URA to adopt the FY 2025 Urban Renewal Agency of the City of Salem budget.
body
FACTS AND FINDINGS:
Resolution No. 24-10 and Exhibit A (Attachments 1 and 2) establish a total expenditure budget of $89,078,390 as represented in the display below.
Working Capital: $ 69,734,860 Expenditures: $ 89,078,390
Unappropriated
Revenues: $ 48,004,980 Ending Fund Balance $ 28,661,450
Total Resources: $117,739,840 Total Requirements $117,739,840
The Urban Renewal Agency of the City of Salem Budget Committee recommended a budget to the Urban Renewal Agency Board on May 8, 2024. The Budget Committee reviewed the Urban Renewal Agency budget at its meeting on April 24, 2024.
Rebudgeted Purchase Orders and Reappropriated Expenditures
The adoption of the FY 2025 budget will include carryovers that total $1,164,120 (Attachment 3). Carryovers are purchases or projects that were budgeted for FY 2024 and will not be completed before the end of the fiscal year on June 30, 2024. Additional expenditure authority is needed to complete those projects in FY 2025. The Board authorized appropriation authority for these items as part of the FY 2024 budget.
Additional Budget Adjustment
An amendment that was discussed at the June 10th budget public hearing is included in the final budget. A transfer of $335,260 from the Tax Allocation Bond Debt Fund (220) to the Tax Allocation Improvement Fund (265) has been added. As a requirement of the 2009 loan in the Riverfront Downtown Urban Renewal Agency for the Convention Center, a reserve was created. With the payoff of that loan in FY 2024, that reserve will be transferred in FY 2025 into the Tax Allocation Improvement Fund for approved Riverfront Downtown plan projects.
BACKGROUND:
The Urban Renewal Agency is a separate entity from the City of Salem and is required to adopt its own budget. The goal of urban renewal is to make investments in specific locations to encourage economic development, remove blight, and leverage private investment as determined by urban renewal area plans.
Kali Leinenbach
Budget Manager
Attachments:
1. Resolution 24-10 URA
2. Resolution 24-10 URA, Exhibit A
3. Urban Renewal Agency FY 2024 Carryovers for the FY 2025 Budget