TO: Mayor and City Council
THROUGH: Krishna Namburi, Acting City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Fiscal Year (FY) 2024 Urban Renewal Agency (URA) Annual Financial Report as submitted by the Urban Renewal Agency Board.
Ward(s): All Wards
Councilor(s): All Councilors
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. The report will be provided to the Urban Renewal Agency Board (Board) at its meeting on February 24, 2025 prior to the City Council meeting. The Board is anticipated to approve the report during this meeting.
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ISSUE:
Receive the FY 2024 URA Annual Financial Report filing as required under Oregon Revised Statutes (ORS) 457.460.
RECOMMENDATION:
recommendation
Information Only.
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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 the Urban Renewal Agency (URA) Annual Financial Reports section:
<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.
Kelli Blechschmidt
Management Analyst II
Attachments:
1. Independent Auditors Report - FY 2024 Salem Urban Renewal Agency