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CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />(3) Stewardship, Compliance, and Accountability. continued
<br />(A) Budgetary Information, continued
<br />Prior to July 1, the City legally adopts its annual budget for all funds through passage of a resolution. The
<br />resolution authorizes fund appropriations as current annual departmental requirements, debt service, capital
<br />outlay, interfund transfers, interfund loans, intergovernmental, and miscellaneous fiscal transactions.
<br />Expenditures cannot legally exceed appropriations at these control levels. Appropriations which have not been
<br />spent at year-end lapse, although an amending resolution passed in the subsequent year specifically provides
<br />for the reappropriation of prior-year lapsed encumbrances.
<br />Unexpected additional resources or appropriations may be added to the budget through the use of a
<br />supplemental budget. A supplemental budget requires hearings before the public, publications in newspapers,
<br />and approval by the City Council. Original and supplemental budgets may be modified by the use of
<br />appropriation transfers between the levels of control. Such transfers require approval by passing a Council
<br />resolution authorizing the transfer. All budget amendments are subject to the limitations put forth in the Oregon
<br />Revised Statutes Chapters 294.305 through 294.565. Supplemental appropriations, permitted by Oregon
<br />Budget Law, were authorized by the City Council during the fiscal year. The net effect of amending resolutions
<br />passed during the fiscal year was an appropriation increase of $28,149,491.
<br />(B) Overexpenditures of Appropriations
<br />For the year ended June 30, 2008, the General Obligation Debt Service Fund had budget-basis expenditures in
<br />excess of legal appropriations of $35,398..
<br />(4) Detailed Notes on All Funds
<br />(A) Eouity in Pooled Cash and Investments
<br />The City maintains a common cash and investments pool that is available for use by all funds. Each fund's
<br />portion of this pool is displayed in the Statement of Net Assets, the Statement of Fund Net Assets, or the
<br />Balance Sheet as "Equity in` pooled cash and investments." Cash and investments are comprised of the
<br />following at June 30, 2008:
<br />Cash on hand $ 57,549
<br />Deposits with banks 26,316,956
<br />Investments 157,659,428
<br />$ 184,033,933
<br />Deposits
<br />At June 30, 2008, the City's deposits with various financial institutions have a bank value of $30,049,832. For
<br />I~ `. - ' deposits in excess of federal depository insurance, Oregon Revised Statutes require the depository institution
<br />to maintain on deposit with a custodian, in a collateral pool, securities having a value not less than 25% of the
<br />outstanding certificates of participation which are issued by the collateral pool manager. The certificates of
<br />~ participation are issued in the City's name and are held by the City.
<br />Custodial Credit Risk
<br />i, ' Custodial credit risk is the risk that in the event of a bank failure, the government's deposits may not be
<br />returned to it. At June 30, 2008, the City has deposits of $20,631,978 insured by federal depository insurance
<br />~° - ` and $5,750,000 collateralized by a minimum of 25% of the certificates of participation (per Oregon Revised
<br />~, ; " Statutes). The remaining $3,667,854 is uncollateralized.
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<br />continued
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