Urban Renewal agency approves supplemental budget to cover loan interest for East Central property purchase

The Sutherlin Urban Renewal Agency on a public hearing adopted Resolution UR 2025.02, a supplemental budget adjustment to cover costs related to the agency’s decision to purchase 311 East Central Avenue and to appropriate funds for an interest payment on a bank loan due June 1.

Tim Frobridge, city finance director, explained the supplemental adjustment is needed because the purchase and associated loan interest were not foreseeable when the FY 2024–25 budget was prepared; funds are available within agency reserves to cover the transfer from the debt service reserve.

Frobridge told the agency that “funds are sufficient to do this” and presented two formal options: adopt the resolution or not. No public comment was received during the public hearing, and the agency voted to adopt the supplemental budget resolution.

The motion passed on roll call with recorded votes in favor by members present, and the agency chair closed the hearing. Agency members and staff recorded that the transfer will cover the June 1 interest payment and that the budget can otherwise accommodate the unanticipated charge.

The supplemental appropriation authorizes the agency to secure a bank loan for the purchase and to move funds from the debt service reserve to the debt service appropriations in order to meet the near-term interest obligation. The finance director and agency staff will proceed with the loan servicing steps and accounting transfers described at the hearing.

The resolution was processed as UR 2025.02 and will be reflected in the agency’s FY 2024–25 GAAP financial reporting.