TO: Urban Renewal Agency Board
THROUGH: Krishna Namburi, Acting Executive Director
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Fiscal Year (FY) 2024 Urban Renewal Agency (URA) Annual 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:
summary
Under Oregon Revised Statutes (ORS) 457.460, each year an urban renewal agency must prepare a report on its finances and file that report with the governing body of the municipality where the agency is located.
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ISSUE:
Shall the URA Board approve and forward to City Council the Urban Renewal Agency Financial Report for FY 2024, as required under ORS 457.460?
RECOMMENDATION:
recommendation
Approve and forward to City Council the Urban Renewal Agency Financial Report for FY 2024, as required under ORS 457.460.
body
FACTS AND FINDINGS:
ORS 457.460 requires an urban renewal agency to report:
1. The tax increment revenue received in FY 2024 and budgeted in FY 2025.
2. The debt service payments made in FY 2024 and budgeted in FY 2025.
3. The amount of debt issued in FY 2024 and budgeted in FY 2025.
4. The amount and purpose of actual expenditures in FY 2024, and budgeted expenditures in FY 2025.
5. An analysis of the impact, if any, of the urban renewal plan on the tax collections for FY 2024 for all taxing districts included under ORS 457.430.
6. The maximum indebtedness for each urban renewal area included in an urban renewal plan of the agency, including the amount of indebtedness incurred through the end of the immediately preceding fiscal year.
The City’s Finance Department will ensure that the notice is published as required by ORS 457.460. The statement is on file with the City Recorder, 555 Liberty Street SE, Room 225, Salem, OR 97301, and is available to all interested persons.
Requirements 1-4 are displayed in Table 1 below. Expenditures by project can be found on page 71 of the Annual Financial Report of the Urban Renewal Agency located through the link below under Urban Renewal Agency (URA) Annual Financial Reports:
<https://www.cityofsalem.net/government/budget-finance/financial-reports>
Table 1
Table 2 below meets requirement 5 and shows FY 2024 tax increment revenue that would have gone to the taxing districts if the urban renewal areas had not been in place. An expanded view of the tax increment revenue table below, including the breakout of tax increment revenue by Urban Renewal Plan Area, can be found on page 74 of the Annual Financial Report of the Urban Renewal located through the link above.
Table 2
Table 3 below meets requirement 6 and shows the maximum indebtedness by area. This information can also be found on page 74 of this same document.
Table 3
BACKGROUND:
The City’s independent auditor, REDW LLC, have completed the audit of the Urban Renewal Agency for the year ended June 30, 2024. Their review resulted in an unmodified opinion and no significant findings. The audit opinion letter is included with this report as Attachment 1.
The Annual Financial Report of the Urban Renewal Agency was presented at the joint meeting of the Salem City Council Finance Committee and the Urban Renewal Agency Finance Committee at their February 18, 2025 meeting.
Kelli Blechschmidt
Management Analyst II
Attachments:
1. Independent Auditors Report - FY 2024 Salem Urban Renewal Agency