TO: Urban Renewal Agency Board
THROUGH: Keith Stahley, Executive Director
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
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Preliminary Urban Renewal Agency (URA) Quarter 4 Fiscal Year (FY) 2024 Financial Report
Ward(s): All Wards
Councilor(s): All Board Members
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance.
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SUMMARY:
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During the adoption of the FY 2025 budget, City Council motioned for staff to return within 45 days of the end of each quarter with a financial report showing budget to actuals in the General Fund. Although this motion was for the General Fund, staff will also be bringing a quarterly report for the Urban Renewal Agency. This is a continuation and expansion of the current practice of preparing quarterly financial reports and providing them to the Budget Committee.
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ISSUE:
Preliminary URA Quarter 4 FY 2024 Report
RECOMMENDATION:
recommendation
Information Only
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FACTS AND FINDINGS:
The URA fourth quarter of FY 2024 ended on June 30, 2024, with invoices paid by the URA and revenues received for FY 2024 still being processed through the end of August. As a result of FY 2024 not being closed, the results in this report are preliminary, but will still provide a high overview of the Agency’s revenues and expenditures.
Executive Summary
The URA is comprised of four funds: the Tax Allocation Bond Debt or Debt Service Fund (Fund 220), the Tax Allocation Improvement or Capital Improvements Fund (Fund 265), the Salem Convention Center - Operations (Fund 345), and the Convention Center’s Gain / Loss Reserve (Fund 428). In the quarterly report, there is a display for the Debt Service Fund and Capital Improvements Fund by Urban Renewal Area by area.
For the Debt Service Fund, the primary revenues are property taxes and the expenses are associated with debt repayments (either long-term debt or overnight or du jour debt). Meanwhile, the revenue in the Capital Improvements Fund is a largely beginning working capital and the debt proceeds from borrowings in the Debt Service Fund. Expenditures are for capital projects listed in each area’s specific plan or grant programs. One item to note is that the Fairview Urban Renewal Area is no longer collecting property taxes or expending on debt which is why that line in the Debt Service Fund is blank. However, using the working capital already in the Fairview portion of the Capital Improvements Fund, projects are still being completed resulting in expenditures for FY 2024.
The primary expenditures in FY 2024 for the various areas include the Wallace Road / 2nd Street design in the West Salem URA, McGilchrist St Improvements in the McGilchrist URA, and streetscape design and the capital grant program in the Riverfront Downtown URA.
For the two Salem Convention Center Funds, operating revenues and expenditures are within Fund 345 and include an increase from prior year revenues from food sales with a decrease in equipment and room rentals. Overall, sales increased by approximately $172k. Operating expenditures increased by $167k. Additionally, a transfer of over $904k was made to Fund 428 or the Gain / Loss Reserve. The reserve fund is used to fund operations of the Convention Center when revenues through operations are not enough to cover expenses. The only time this occurred was during the COVID-19 pandemic.
BACKGROUND:
The Budget Office has provided quarterly reports to the Budget Committee and published online for the public for over a decade. These reports are typically provided to the Budget Committee at their winter and spring meetings when they review the forecast and budget. During adoption of the FY 2025 budget, City Council requested that these reports be provided directly to the City Council within 45 days of the end of each quarter. Due to the URA Board meetings being once a month, the URA Board quarterlies will come to the Board at their first meeting after that 45-day period.
Attachments:
1. Urban Renewal Agency Quarter 4 FY 2024 - Preliminary Figures