FY 2008 Comprehensive Annual Financial Report

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• A3 underlying and Aaa insured for the pension obligations. The pension obligations are insured by Ambac Assurance and were rated Aaa at issuance. Subsequent to issuance, Ambac Assurance was downgraded by Moody's Investors Service. Ambac Assurance is currently rated as Aaa. The pension obligations were issued as one offering for certain Oregon cities, counties, and special districts. The City of Eugene's share of the total pension obligations on which the rating was based is 29.7%. Under Oregon Revised Statutes, general obligation debt issues are limited to 3% of the real market value of all taxable property within the City's boundaries. The $40.1 million in general obligation debt applicable to this limit, less $0.1 million in funds currently held to pay the principal thereof, is well below the $677.9 million ceiling. The City's net direct general obligation bonded debt per capita is $260. Additional information on the City's bonded debt can be found in the Notes to Basic Financial Statements (Note 41). Fund-based Financial Analysis As previously discussed, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and ~ balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $86.8 million, a decrease of $11.4 million in comparison to the prior year, as adjusted. Approximately 94.9% of this total amount ($82.3 million) constitutes unreserved fund balance, which is available for spending at the government's discretion, subject to reporting fund-type limitations. The remainder of fund balance is reserved, indicating that it is not available for new spending because it has already been committed to pay for debt service ($0.6 million), or has been reserved for other purposes ($3.8 million). Reservations of fund balance for other purposes include 1) prepaid expenditures for rentals, memberships, and maintenance contracts, 2) inventories unexpended at the end of the year, and 3) assets held for resale at June 30, 2008. The fund balance of the City's General Fund decreased $0.8 million from $31.2 million to $30.4 million during the current fiscal year. The decrease was caused by a $6.0 million increase in expenditures over the prior year, most notably a $2.2 million increase in library, recreation, and cultural services expenditures and a $1.5 million increase in fire and emergency services expenditures. The increase in expenditures was partially offset by a $4.2 million increase in revenues.. A $1.6 million increase in tax revenues and a $1.7 million increase in intergovernmental revenues were the significant changes over the prior year. The fund balance in the Community Development Fund increased. $0.4 million from $1.6 million to $2.0 million during the current fiscal year. The increase was primarily due to a $0.6 million transfer in from the Urban Renewal Agency in association with the renovation of the historic Centre Court building in downtown Eugene. The fund balance in the General Capital Projects Fund increased $0.9 million from $5.6 million to $6.5 million during the current fiscal year. The increase in the fund balance was primarily caused by $5.2 million in debt issuance, which was offset by a $3.9 million increase in capital outlay expenditures. The fund balance in the Systems Development Capital Projects Fund decreased $3.5 million from $13.9 million to $10.4 million during the current fiscal year. The decrease was largely due to a $1.8 million increase in current year capital outlay expenditures that were funded by prior year's resources. Proprietary funds. The City's proprietary fund statements provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets and its percent to total net assets of each proprietary fund are as follows: • Ambulance Transport $ 0.6 million (36.9%) • Municipal Airport 4.3 million (5.1%) • Parking Services 1.3 million (7.2%) • Stormwater Utility 8.2 million (15.7%) • Wastewater Utility 3.8 million (3.7%) 22