TO: Urban Renewal Agency Board
THROUGH: Krishna Namburi, Executive Director
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Urban Renewal Agency Fiscal Year (FY) 2026 Quarter 1 Financial Report
Ward(s): All Wards
Councilor(s): All Board Members
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance; Safe, Reliable and Efficient Infrastructure; Strong and Diverse Economy; Welcoming and Livable Community
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SUMMARY:
summary
The URA Quarter 1 Financial Report reflects all activity posted through closed months ending September 30, 2025.
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ISSUE:
Information only
RECOMMENDATION:
recommendation
Information only
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FACTS AND FINDINGS:
The first quarter represents 25% of the fiscal year with all available financial activity posted. The beginning balance figures could still potentially change as the financial audit for FY 2025 is still ongoing.
The URA is comprised of four funds: the Tax Allocation Bond Debt or Debt Service Fund, the Tax Allocation Improvement or Capital Improvements Fund, the Salem Convention Center Fund (for operations), and the Convention Center’s Gain / Loss Reserve Fund. The quarterly report displays both the Debt Service Fund and Capital Improvements Fund financial activity by Urban Renewal Area.
For the Debt Service Fund, the primary revenues are property taxes which are not received in the first quarter of the fiscal year. Resources shown are primarily beginning fund balance. Expenses in this fund are associated with debt repayment which also does not occur in the first quarter. The only expense for the fund during this period was in McGilchrist to send excess tax increment back to the counties for redistribution to all applicable taxing jurisdictions.
Resources in the Capital Improvements Fund are mainly beginning working capital. Additional revenue from short-term borrowings will occur later in the fiscal year. Expenditures are for capital projects listed in each area’s approved plan or grant programs. Most quarterly expenses supported the streetscape project, downtown parking meters, and the grant program in Riverfront Downtown as well as an increase in administrative costs charged to each URA due to a change in cost recovery methodology for staff.
In the Salem Convention Center operating fund, revenues and expenditures are trending slightly lower than the first quarter of last fiscal year. Revenues decreased by nearly $77K and expenditures by just over $25K. The Gain / Loss Reserve is above the $4M threshold for fund balance at just over $4.3M and expenses are trending as expected.
BACKGROUND:
The Budget Office has produced and provided quarterly reports to the Budget Committee and online for more than a decade. During adoption of the FY 2025 budget, City Council approved a motion requesting these reports be provided directly to the City Council within 45 days of the end of each quarter.
Kali Leinenbach
Budget Manager
Attachments:
1. URA FY 2026 Quarter 1 Financial Report