TO: Urban Renewal Agency Board
THROUGH: Krishna Namburi, Executive Director
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Urban Renewal Agency Fiscal Year 2026 Quarter 2 Financial Report
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 URA Fiscal Year (FY) 2026 Quarter 2 (Q2) Financial Report reflects all activity posted in the current fiscal year through December 30, 2025.
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ISSUE:
Information Only.
RECOMMENDATION:
recommendation
Information Only.
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FACTS AND FINDINGS:
The second quarter represents half of the fiscal year with all available financial activity posted. 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.
In the Debt Service Fund, the primary revenues are property tax increment, and most are received in the second quarter of each fiscal year. Property taxes received through Q2 total $21.9 million. Expenses in this fund are associated with debt repayment, the bulk of which typically occurs in quarter 3 (Q3). Some debt repayment did occur in Q2 for an early payoff of a loan from the State of Oregon for Mill Creek URA, saving the area over $318 thousand in interest expense.
Resources in the Capital Improvements Fund are mainly beginning working capital. Additional revenue from short-term borrowings will be received in Q3 of the fiscal year. Expenditures are for capital projects listed in each area’s approved plan or grant programs. Most expenses through Q2 supported the streetscape project downtown, the Riverfront Downtown capital grant program, and 17th Street at Silverton Road intersection improvements 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 are trending slightly lower by $131 thousand compared to receipts through the second quarter of last fiscal year. Expenses are nearly flat year over year. The Gain / Loss Reserve remains above the $4 million threshold for fund balance at nearly $4.3 million 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 the General Fund financial report 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 2 Financial Report