TO: Urban Renewal Agency Board
THROUGH: Krishna Namburi, Executive Director
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Urban Renewal Agency FY 2025 Final Year End Financial Report
Ward(s): All Wards
Councilor(s): All Board Members
Neighborhood(s): All Neighborhoods
Result Area(s): Safe, Reliable and Efficient Infrastructure; Strong and Diverse Economy; Welcoming and Livable Community.
end
SUMMARY:
summary
The Fiscal Year 2025 Year End Financial Report for the Urban Renewal Agency of the City of Salem reflects activity posted through June 30, 2025.
end
ISSUE:
Information Only.
RECOMMENDATION:
recommendation
Information Only.
body
FACTS AND FINDINGS:
The year end financial report represents audited financial activity for all four quarters of the fiscal year from July 1, 2024 through June 30, 2025. The quarterly report displays both the Debt Service Fund and Capital Improvements Fund financial activity by Urban Renewal Area. It also includes a narrative about financial activity for the Convention Center.
For the Debt Service Fund, the primary revenues are property taxes with the majority received during Q2 which came at just over $21 million for the year. Associated expenses are debt repayments (either long-term debt, or short-term / du jour debt) mostly occurred in Q3 of the fiscal year. The only other expense was in Riverfront Downtown to transfer funds held in reserve for a prior borrowing to the Capital Improvements Fund.
Resources in the Capital Improvements Fund are largely comprised of beginning working capital at 77.5% of total resources and short-term borrowing proceeds at 15.2% of total resources. Additionally, annual interest income $1.5 million more than last year. The largest URA expenditures through Q4 in the Capital Improvements Fund are for Riverfront streetscape improvements downtown, the Riverfront Grant Program, and improvements to McGilchrist Street at 22nd Ave. SE.
For the Salem Convention Center Fund, operating revenues for food sales and rentals experienced a 7.9% increase from the previous year, approximately $464 thousand more. Operating expenditures decreased slightly by $47 thousand from FY 2024.
The Gain / Loss Reserve working capital came in higher than budgeted and interest income trending slightly higher through Q4 of FY 2025 at $24k. The fund is stable and continues to meet the $4M minimum for the reserve.
BACKGROUND:
The Budget Office has prepared quarterly financial reports and provided them to the Budget Committee for decades. Both current and historical quarterly reports can be accessed online and are available starting in FY 2016. During adoption of the FY 2025 budget, City Council approved a motion requesting reports for the General Fund be provided directly to City Council within 45 days of the end of each quarter. Staff now provide both the City and URA quarterly reports in this timeframe for consistency.
Kali Leinenbach
Budget Manager
Attachments:
1. Urban Renewal Agency FY 2025 Year End Financial Report