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2021 City of Tigard Annual Comprehensive Financial Report if 4164'7 KT iet, �-i�L_ Cit of Ti and Oregon V , '1,ti'iq'' „ rip' . 1 I Mir ° o ;-,_ ANNUAL COMPREHENSIVE II . ,..i ‘:..j * rFINANCIAL• REPORT t„.1 40 op .4\ ,,,.. ..,.. .,, t - FISCAL YEAR ENDING JUNE 30, 2021 AM _. ,-- )ti\ ti.f. - a • 44 . J.. . ' c+'- * :._ 4 .,,. „,,,L,, .,, ,, . r ,4 . , , , i ,?: _ . _ ._ _ iiikr---- � �o-” . ��f ,. , 31. � 4,,.. ti �al..,,, � ' �r e., .. . a y .a �• 11 III r . rwr # -' TIGARD t 13125 SW Hall Boulevard L\44.1/tyllitis Tigard, OR 97223 www.tigard-or.gov 61 i11I .1 . T I GARD City of Tigard, Oregon Annual Comprehensive Financial Report For the fiscal year ended, June 30, 2021 Prepared by: City of Tigard — Finance and Information Services Department 3 No content appears on this page by design. 4 City of Tigard, Oregon Table of Contents Introductory Section Letter of Transmittal 11 Certificate of Achievement for Excellence in Financial Reporting 20 Organization Chart 21 Principal Officials 22 Financial Section Report of Independent Auditors 25 Management's Discussion and Analysis 28 Basic Financial Statements: Government-Wide Financial Statements Statement of Net Position 47 Statement of Activities 48 Fund Financial Statements Major Governmental Funds: Balance Sheet 50 Reconciliation of the Balance Sheet to the Statement of Net Position 51 Statement of Revenues, Expenditures,and Changes in Fund Balance 52 Reconciliation of the Statement of Revenues, Expenditures,and Changes in Fund Balance to the Statement of Activities 53 Proprietary Funds: Statement of Net Position 54 Statement of Revenues, Expenses,and Changes in Fund Net Position 55 Statement of Cash Flows 56 Pension Trust Fund: Statement of Fiduciary Net Position 59 Statement of Changes in Fiduciary Net Position 60 Notes to Basic Financial Statements 63 Required Supplementary Information: Schedules of Revenues and Expenditures—Budget and Actual: General Fund 123 Schedule of the City's Proportionate Share of the Net Pension Liability(Asset) 124 Schedule of City's Contributions—Oregon Public Employees Retirement System 126 Schedule of the Changes in the City's Total OPEB Liability and Related Ratios—Implicit Rate Subsidy Plan 128 Schedule of the City's Proportionate Share of the Net OPEB Liability(Asset)—Oregon Public Employees Retirement System, Retirement Health Insurance Account 129 Schedule of the City's Contributions—Oregon Public Employees Retirement System, Retirement Health Insurance Account 130 Other Supplementary Information: Nonmajor Governmental Funds Combining Statements: Combining Balance Sheet 133 Combining Statement of Revenues, Expenditures,and Changes in Fund Balances 134 Special Revenue Funds: Combining Balance Sheet—Nonmajor Special Revenue Funds 138 5 City of Tigard, Oregon Table of Contents, continued Financial Section, Continued Other Supplementary Information,Continued: Combining Statement of Revenues, Expenditures,and Changes in Fund Balance 140 Schedules of Revenues and Expenditures—Budget and Actual: Gas Tax Fund 142 City Gas Tax Fund 143 Transient Lodging Tax Fund 144 Construction Excise Tax Fund 145 Electrical Inspection Fund 146 Building Fund 147 Criminal Forfeiture Fund 148 Urban Forestry Fund 149 Parks Utility Fund 150 Police Levy Fund 151 Library Fund 152 Debt Service Funds: Combining Balance Sheet—Nonmajor Debt Service Funds 156 Combining Statement of Revenues, Expenditures,and Changes in Fund Balance—Nonmajor Debt Service Funds 158 Schedules of Revenues and Expenditures—Budget and Actual: Bancroft Bond Debt Service Fund 160 General Obligation Debt Service Fund 161 City Center Urban Renewal Debt Service Fund 162 Tigard Triangle Debt Service Fund 163 Capital Projects Funds: Combining Balance Sheet—Nonmajor Capital Projects Funds 168 Combining Statement of Revenues, Expenditures and Changes in Fund Balance—Nonmajor Capital Projects Funds 170 Schedule of Revenues and Expenditures—Budget and Actual: Facility Fund 172 Transportation Development Tax Fund 173 Underground Utility Fund 174 Street Maintenance Fee Fund 175 Transportation SDC Fund 176 Parks Capital Fund 177 Parks Bond Fund 178 Parks SDC Fund 179 Transportation CIP Fund 180 City Center Capital Improvements Fund 181 Tigard Triangle Capital Improvements Fund 182 Proprietary Funds: Enterprise Funds: Schedules of Revenues and Expenditures—Budget and Actual: Sanitary Sewer Fund 185 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses—Sanitary Sewer Fund 186 Stormwater Fund 187 Water Quality and Quantity Fund 188 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses—Stormwater Funds 189 Water Fund 190 Water SDC Fund 191 6 City of Tigard, Oregon Table of Contents, continued Financial Section, Continued Other Supplementary Information, Continued: Water CIP Fund 192 Water Debt Service Fund 193 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses—Water Funds 194 Reconciliation of Budgetary Fund Balance to Generally Accepted Accounting Principles Basis Net Position 195 Internal Service Funds: Combining Statement of Net Position 200 Combining Statement of Revenues, Expenses,and Changes in Fund Net Position 202 Combining Statement of Cash Flows 204 Internal Service Funds,Continued: Schedules of Revenues and Expenditures—Budget and Actual: Central Service Fund 206 Public Works Administration Fund 207 Public Works Engineering Fund 208 Fleet/Property Management Fund 209 Insurance Fund 210 Other Schedules: Schedule of Bond and Bond Interest Transactions 213 Schedule of Future Debt Service Requirements of: General Obligation Bonds 214 Full Faith and Credit Bonds 215 Water Revenue Bonds 216 Safe Drinking Water Revolving Loan Funds 217 Water Fund 218 Statistical Section Net Position by Component 222 Changes in Net Position 224 Fund Balances of Governmental Funds 228 Changes in Fund Balances of Governmental Funds 230 Governmental and Business-Type Revenues 232 Governmental and Business-Type Expenses by Function 234 General Governmental Revenues by Sources 236 General Governmental Expenditures by Function 238 Market Value and Assessed Value of Taxable Property 239 Property Tax Rates—Direct and Overlapping Governments 240 Principal Property Taxpayers 242 Property Tax Levies and Collections 243 Special Assessment Collections 244 Ratio of Annual Debt Service Expenditures for Long-Term Debt to Total Governmental Expenditures 245 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita 246 Computation of Direct and Overlapping Debt 247 Computation of Legal Debt Margin 248 Ratio of Debt by Type 250 Computation of Water Revenue Bonds Debt Coverage 252 Demographics Statistics 254 Principal Employers 255 7 City of Tigard, Oregon Table of Contents, continued Statistical Section,Continued Property Value and Construction 256 Full-time Equivalent City Government Employees by Function 257 Operating Indicators by Function/Program 258 Capital Assets Statistics by Function 260 Miscellaneous Statistical Data 261 Audit Comments and Disclosure Requirements Report of Independent Auditors Required by Oregon State Regulations 266 Report of Independent Auditors on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 268 8 Introductory Section 9 10 Pp! r. City of Tigard December 6, 2021 Community of Tigard Honorable Mayor and City Council We are pleased to submit the Annual Comprehensive Financial Report of the City of Tigard, Oregon, for the fiscal year ended June 30, 2021, together with the opinion thereon of our independent certified public accountants, Moss Adams LLP. This report is required by Oregon Revised Statutes 297.425 and is prepared by the Department of Finance and Information Services. This report presents fairly the financial position of the various funds of the city at June 30, 2021, and the results of operations of such funds and the cash flows of the proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America (GAAP). It is prepared in conformance with the guidelines for financial reporting developed by the Government Finance Officers Association of the United States and Canada and the principles established by the Governmental Accounting Standards Board (GASB), including all effective GASB pronouncements. This report consists of management's representations concerning the finances of the city. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the city has established a comprehensive internal control framework that is designed both to protect the city's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the city's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the city's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements.As management,we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The city's financial statements were audited by Moss Adams LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the city for the fiscal year ending June 30, 2021, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit,that there was a reasonable basis for rendering an unmodified opinion that the city's basic financial statements for the fiscal year ended June 30, 2021, are fairly presented, in all material respects, in conformity with GAAP. The independent auditor's report is included in the financial section of this report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of 11 transmittal is designed to complement the MD&A and should be read in conjunction with it. The city's MD&A can be found immediately following the report of the independent auditors. Profile of the City of Tigard, Oregon ar The City of Tigard is located in southeast Washington County, 9 miles from 1 downtown Portland, Oregon. The city is included in the Metro urban growth Tigard boundary and Tigard's neighboring cities include Beaverton, Lake Oswego, Tualatin, Durham, Portland,and King City.State Highway 99W,runs north and Oregon south through the eastern portion of the city as a major commuter corridor to the City of Portland. Interstate 5 and Highway 217 connect Tigard's residents and workforce to the regional economy of 2.5 million residents. y Tigard's major greenway called Fanno Creek connects neighborhoods to the natural environment and several of the city's parks.The incorporated area of the city represents 12.2 square miles and has a population over 54,000. The city can extend its corporate limits by annexation,which is permitted by state statute.Since 2012,the city has annexed over 500 acres of land west of the city that was largely farmland. Planning for development in that area, known as River Terrace, began in earnest during fiscal year 2014 and continued in fiscal year 2015 with the adoption of the River Terrace Community Plan, a long-range plan to guide public and private investment s9 and development to aid with transition from farmland to -� residential land over the next several decades. Throughout fiscal year 2021, permitting and construction ywJ,26 _ phase of development of River Terrace was in full swing. Portland Full build out is expected to take roughly 20 years. Upon 1 completion, River Terrace is expected to be home to J 1 around 6,500 new residents. More information about r Tigard's newest neighborhood is on the city's website at: Beaverton `J , I , https://www.tigard-or.gov/vour- - V government/departments/community- AS `5 I rnr development/planning/proiects/river-terrace. 4 it The city is governed by an elected mayor and four council TugaI'C� � members who comprise the city council.The city's charter ��� Lake established the Mayor/Council form of government. Each Oswego member of the city council is elected at-large to serve a "\ ', r • four-year term. The mayor presides at council meetings Tualatin and is elected at-large for a four-year term.The mayor and 1-205 council provide community leadership, develop policies to 316- 1, ` guide the city in delivering services and achieving community goals, and encourage citizen awareness and involvement. The city council appoints a city manager, who is the chief administrative officer of the city. The city manager is responsible for ensuring council policies are implemented using resources appropriated by the council to achieve desired service results in the community. The city provides a full range of municipal services. These services include police, municipal court,community planning and development, parks and recreation, library, capital improvement planning, administration and central services, street maintenance, water, and other general public works activities. The city owns and 12 maintains the wastewater and storm drainage system within the city limits under an agreement with Clean Water Services. Fire protection is provided by Tualatin Valley Fire and Rescue. The legally separate Tigard Town Center Development Agency(TCDA),formerly the City Center Development Agency, is also included in the city's financial statements as a component unit.TCDA is the city's urban renewal and redevelopment agency with a primary purpose to undertake urban renewal projects and activities pursuant to the city's downtown and Tigard Triangle redevelopment plan. The city maintains budgetary controls to ensure compliance with legal provisions in the annual appropriated budget adopted by the city council.Activities of all funds are included in the annual adopted budget.The level of budgetary control (that is,the level at which expenditures cannot legally exceed the appropriated amount) is established by program within each individual fund. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Tigard operates. Local Economy The city's location in the Portland metropolitan region provides residents with many diverse employment opportunities. Most Tigard's residents in the workforce commute to a job somewhere else in the region. Every day more than 43,000 residents from somewhere else in the region commute into Tigard for work and more than 30,000 Tigard residents are employed in Tigard or commute to employment somewhere else in the Portland metro region. The chart below shows a ten-year comparison of unemployment rates for the state and local areas as well as the U.S. by fiscal year (FY).The area's unemployment rate has steadily declined over this period, until the FY ended June 30, 2020 when unemployment more than doubled the amount of the previous year due to the COVID-19 pandemic.The unemployment rate decreased over the FY ended June 30, 2021, however it has not returned to pre-pandemic levels. Tigard's most current unemployment rate is 4.4 percent as of June 2021, which is 1.0 percent lower than the Portland Metro area and 0.8 percent lower than the State of Oregon. Unemployment trends 12.0% 10.0% a." C T ,u■ ° 4.0% o. • 2.0% • 0.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 -State of Oregon &5% 8.1% 6.8% 5.5% 4.8% 3.7% 4.0% 4.0% 11.6% 5.2% -United States 8.2% 7.8% 6.1% 5.3% 4.996 4.3% 4.0% 3.7% 11.1% 5.9% -Portland Metro 8.0% 7.656 6.1% 5.4% 4.9% 3.7% 3.6% 4.0% 11.5% 5.4% Washington County 8.2% 6.6% 5.6% 5.0% 4.7% 3.5% 3.5% 3.4% 10.4% 4.4% City of Tigard 8.2% 6.6% 5.4% 4.5% 4.4% 3.5% 3.596 3.4% 10.8% 4.4% Fiscal year 13 Tax Abatements The city provides property tax abatements through three programs.An Enterprise Zone program, a Non-Profit Corporation Low-Income Housing program and a Vertical Housing Development Zone program. The enterprise zone program is used to reduce the tax burden on companies investing in equipment, facilities and people. This program offers a 100% tax abatement for three to five years on new capital investments when a firm also increases employment by 10%. City of Tigard's Nonprofit Corporation Low Income Housing Exemption allows affordable housing property owners affordable housing to receive a total exemption from taxes owed to the city. This program increases the ability for affordable housing to be built within the city. Tigard's vertical housing development zone (VHDZ) encourages multi-story mixed-use development in two targeted areas of the city. Developers with experience in mixed-use multi- story projects may be interested in a City of Tigard program that provides a partial property exemption of 20 percent per floor. A developer can earn the partial property tax exemption by locating a qualified project in a VHDZ. The partial property tax exemption applies to new construction on the first four floors of residential development built above a non-residential ground floor. This partial property tax exemption is not limited to low-income housing, though low-income projects receive an additional property tax exemption. In addition to the exemption for the residential portion of a mixed-use building,the land would also be eligible for a partial tax exemption of 20 percent for each floor dedicated to low-income residential housing (maximum exemption is 80 percent). Financial modeling show that a vertical housing based tax exemption moves some multi-story mixed-use projects from the red to the black. This tool helps close the gap for developers who are willing to take a risk in an untested market.Tigard's VHDZ encourages private sector development that combines first floor commercial activity with residential capacity on upper floors.This mix of activity improves property values,the viability of local businesses and the quality of life for residents. It also diversifies local housing options, giving residents a wider range of housing solutions. The See the notes to the basic financial statements for more information. Response to COVID-19 In 2021, the Tigard City Council ensured the City's Covid-19 response efforts continued by naming it as one of the four 2021-2023 City Council Goals. The goal states for the City to, "support the Tigard community through a coordinated COVID response". The city has been and will continue to be responsible for maintaining essential services including response to emergency calls for services, critical maintenance and repair work while incorporating social distancing precautionary measures for engineering and construction staff,and staff performing essential work in the field and at physical city locations. Additionally, the city is working alongside public health partners such as Washington County and the Oregon Health Authority to ensure a coordinated covid-19 response. Emergency Declaration On March 17, 2020, the city declared a state of emergency, which authorized staff to enact emergency operations, delegated purchasing and contract signature authority to the City Manager, waived all late fees and utility shutoffs, protected the health of city employees, relaxed enforcement of city codes to 14 ease burdens on businesses and service sector workers. Responding to issues caused by the pandemic has continued through FY 2021 and beyond. COVID-19 Relief Efforts The City of Tigard has invested a total of$6.1 million in resources to date.This includes$3.5M for business grants & loans, $2.2M for city fees & charges assistance which supports unemployed, businesses, low- income households and delayed bill increases, $450K for non-profit and faith-based organizations, and $90K for community resiliency and mental health. Additionally,the City of Tigard has been allocated$7.49 million from the American Rescue Plan Act's State and Local Fiscal Recovery Fund to invest in the Tigard community's response and recovery efforts for covid-19. To further assist in the pandemic relief effort the city initiated the following: • Partnered with Community Development Financial Institutions to provide $3 million of state, federal, and local CARES Act funding for business assistance • Resident Aid Fund of Tigard(RAFT)program provided$100,000 to prevent houslessness and assist those that are houseless • Expanded existing aid program through St. Vincent De Paul and provided $750,000 in Tigard Aid for utility customers affected by COVID-19 • Delayed rate increases six months providing$1.4 million in utility bill relief for all customers Financial Impacts The COVID-19 pandemic has continued to affect our community and the resources available to the city. While the city has seen a reduction of revenue in some areas, the city is not heavily dependent on the sectors of the economy hardest hit and has not had to reduce services or lay off employees. The impact of the pandemic to the city's economy and tax revenue will continue to be monitored. While it appears that the city has sufficient revenues and reserves to maintain services, there can be no assurances that the continued spread of COVID-19 will not materially affect the city or have an adverse impact upon revenue collections. 2021 Summary of Local Statistics Number of businesses 2,507 Median household income $79,809 Median home value $408,400 General fund permanent tax rate $2.5131 per$1,000 of assessed value Total assessed value (est. 2019/2020) 7,258,551,016 Long-term Financial Planning The city prepares a comprehensive long-term financial forecast annually. By forecasting and anticipating financial trends, the city can develop strategies to respond to emerging financial trends. The city forecasts operating fund revenues and expenditures over a six-year period.The forecast is adjusted as each year's final results are known and as budgets are prepared for the following year. In addition,the city also prepares a six- year Capital Improvement Plan (CIP) that is also updated every year. The CIP is developed through a process separate from, but parallel to the budget process.The impact on future operating and maintenance costs are 15 projected from the CIP and then incorporated in the long-term financial forecast.The city's adopted fiscal year 2021—2026 CIP can be found on line at httbs://www.tigard-orgov/vour-government/departments/finance. Financial Policies The City of Tigard has established financial policies to account for public funds, manage municipal finances wisely and plan adequate funding of services and facilities desired and needed by the public. The financial policies are adopted annually by the city council in connection with the budget process.Consistent application of these financial policies has helped ensure the city has appropriately recorded and accounted for transactions in our financial statements. The adopted fiscal year 2021 budget document includes the city's financial policies noted in the appendix starting on page 425. The policies can be found online at: http://oublicrecords.tigard-or.gov/Public/DocView.aspx?id=1001845&dbid=0&repo=CitvOffigard. The goals of Tigard's fiscal policies are: • Enhance the city council's policy-making ability by providing accurate information on program and operating costs. • Assist sound management of the city government by providing accurate and timely information on current and anticipated financial conditions. • Provide sound principles to guide important decisions of the council and management which have significant fiscal impact. • Set forth operational principles, which minimize the cost and financial risk of the city's government consistent with services, desired by the public. • Employ revenue policies, which prevent undue or unbalanced reliance on any one source, distribute the cost of municipal services fairly, and provide adequate funds to operate desired programs. • Provide and maintain essential public facilities, utilities, infrastructure and capital equipment. • Protect and enhance the city's credit rating. • Ensure that all surplus cash is prudently invested in accordance with the investment policy adopted by the council to protect city funds and realize a reasonable rate of return. Major initiatives The Tigard City Council meets annually in connection with the budget process to establish goals. Council goals are comprised of high-priority tasks or programs that the city council intends to complete or initiate during the two-year timeframe that the council will serve together, though attainment of these goals may take several years. The goals are based on departmental needs, bi-annual community survey results and city council priorities. In the goal-setting meeting,the city council reviews information and develops its annual and long-term goals. Council goals set the priorities for city government and are incorporated into departmental work plans. For 2019-2021 council established goals for the city as follows: 1. Ensure the city's continued financial stability and sustainability while providing mandated services. Seek ways to fund and increase services valued by the community. • Develop and implement a communications plan, for city staff and elected officials, to engage the public about the cost and value of city services and explain funding challenges. • Increase trust with the community by regularly publishing a city report card,detailing our progress and challenges, and comparing our work to peer cities. • Pursue a local option levy and/or bond in May 2020. • By May 2019, determine specific services and/or facilities the voter will get by approving a local option levy and/or bond proposal and begin communicating it to the voters. 16 • Council will actively participate in the city's communications regarding the community benefits of the local option levy and/or bond. • By mid-January,2020 refer a local option levy and/or bond for voters to consider at the May,2020 election. 2. Invest and connect key areas of the city to promote economic growth and community vitality. • Ensure that Tigard Triangle urban renewal investments promote equitable development and create a vibrant,walkable, and connected district. • Continue to make Downtown Tigard a place people want to be by making substantial progress on projects that attract new residential and business investment: o Design and engineering of the Universal Plaza o Construction of the Tigard Street Heritage Trail/Rotary Plaza o Redevelopment of the Main St. at Fanno Creek property o Main Street Green Street Phase 2 o Fanno Creek Overlook o Cultivate more relationships with future developers that share our multigenerational transit-oriented development vision. o Create an inventory of sites with high potential for transit-oriented housing redevelopment. o Support and participate in a branding effort for the Downtown and Tigard Triangle. o Evaluate the size and scope of the City Center Urban Renewal Plan to determine whether tax increment resources in the downtown are sufficient to meet council objectives. Prepare recommendations regarding the City Center urban renewal area's possible continuation. o Pursue the Ash Street Crossing to improve multi-modal circulation in the downtown. o Update the 2007 Leland report to accelerate downtown redevelopment, focusing on leverage possibilities from SW Corridor and other active transportation investments. • Ensure the Southwest Corridor project maximizes benefits to the Tigard community and minimizes negative impacts by implementing the memorandum of understanding with Tri-Met. Ensure urban design and pedestrian connections to Tigard light rail stations is prioritized in station area access plans. • Complete an initial assessment of Washington Square Regional Center Plan District and related development code.Identify barriers to redevelopment and develop a project of planning and code updates to attract investment in commercial, office, and high-density residential development with a range of price points. 3. Ensure Tigard grows and develops in a smart and inclusive manner. • Secure external resources to: o Accomplish all planning and outreach activities necessary to expand the city's urban growth boundary to include the South River Terrace Area. Complete Title 11 compliance, apply to Metro for UGB expansion, and annex South River Terrace. o Prepare a concept plan for West River Terrace. • The city will direct all work under this goal,which is contingent on: o All direct, indirect and overhead costs necessary to make South River Terrace "development-ready"funded by private sector partners and/or through grants prepared at the expense of the private sector partner. o The continuation of existing city plans and projects such that they are neither slowed nor disrupted by River Terrace planning. 17 o The inclusion of equitable development principles in River Terrace planning. • Complete an Affordable Housing Plan and adopt recommended strategies to promote the development and retention of affordable housing in Tigard. Increase advocacy at the regional level for housing that is affordable,funding strategies, and consider an excise tax. • Study the viability for any future expansions of the city's urban growth boundary to include employment land so that new growth and ongoing service costs to Tigard residents and businesses are balanced. 4. Enhance two-way communication to understand community priorities and involve the community in the decision-making process. • Develop and implement strategies for city staff and council to engage with and hear directly from a wide variety of residents and businesses on important issues. • Initiate listening sessions with residents of unincorporated areas, within the urban growth boundary, about the opportunity for annexation. • Increase community understanding and knowledge of the city, its services and fiscal situation. • Promote an inclusive, open-minded, and progressive community. Implement initiatives to improve city services and participation that captures the diversity of the community and improves equity and inclusion. 5. Enhance walkability and pedestrian connectivity. • Develop an implementation strategy related to the ADA Transition Plan to identify the priorities for curb ramps and public sidewalks that must be repaired or replaced to meet current ADA guidelines. • Invest in walking connections by reviewing the Tigard sidewalk infill study and recommendations and continuing to dedicate specific funding for pedestrian and bike facility projects in the city's Capital Improvement Plan equaling at least ten percent of the transportation CIP planned expenditures. • Continue to advance and develop Safe Routes to School (SRTS) plans for Tigard schools and implement an improvement for at least one school per year including funding priorities. • Integrate the Complete Streets Policy to update the Transportation System Plan. Consider implementation of a Neighborhood Traffic Management Program. Implement a Citywide Transportation Safety Action Plan and develop a scope and budget for a pedestrian crossing improvement plan. • Seek Regional Transportation Options funding to develop a regional trail wayfinding plan, and improve signage along the Fanno Creek Trail. • Advocate for local control of speed limits in residential neighborhoods. More information about the city's goals and initiatives can be found on the city's Finance and Information Services web page: https://www.tigard-or.gov/your-government/departments/finance. Awards and Acknowledgements The Government Finance Officers Association (GFOA)awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Tigard for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2020. This was the 35th consecutive year that the city has received this esteemed award. In order to be awarded a Certificate of Achievement,the government published an easily readable and efficiently organized Annual Comprehensive Financial Report. This report satisfied both GAAP and applicable legal requirements. 18 A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report (ACFR) continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the city also received the GFOA's Distinguished Budget Presentation Award for its annual budget for fiscal year 2021. This was the 33rd consecutive year that the city has received this prestigious award. In order to qualify for the Distinguished Budget Presentation Award, the city's budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device. The city has submitted its fiscal year 2022 budget document and believes that it meets the Distinguished Budget Presentation Award's requirements. The city also received the GFOA's Award for Outstanding Achievement in Popular Annual Financial Reporting for its Popular Annual Financial Report (PAFR) for fiscal year ended June 30, 2020. This is the second year that the city has received this honored award. To receive this award the city must extract information from their ACFR to produce high quality popular annual financial report specifically designed to be readily accessible and easily understandable to the public and other interested parties without a background in public finance. The city plans to submit its fiscal year 2021 PAFR and believes that it will meet the Award for Outstanding Achievement in Popular Annual Financial Reporting's requirements. With these three awards the city has received the GFOA's Triple Crown award status for financial documents.This speaks to the high standard that the city has set for its financial reporting. The preparation of this report was made possible by the dedicated service of the Financial and Information Services department team. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. Special recognition should be given to the financial operations team for their work in preparing this document. Special thanks should also be given to the City of Tigard Audit Committee for their dedicated service of overseeing the work performed by the independent auditors. Credit also must be given to the Mayor and City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of Tigard's finances. Respectfully submitted, Steve Ryme Kathy land City Manager Assistant City Manager/Interim Finance Director 19 G 0 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Tigard Oregon For its Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2020 P Executive Director/CEO 20 u T I GARD City of Tigard, Oregon Citywide Organizational Chart as of June 30, 2021 City of Tigard 1 If Citizens of Tigard J) [ , Mayor& City City Council Attorney ll City Manager 11 I I I I I I Central City Community Finance& I Library Police Public Works Services Management Development Information Svcs. Design& Human Community Administration Administration Administration Administration Communications Resources Planning Financial Circulation Support Water City Recorder Risk Building Operations Services Management Public Works Reader Engineering Municipal Economic Information Services Police Court City Manager's Development Services Operations Office Parks Technical Maintenance Fleet Utility Billing Services Maintenance Recreation Contracts Property &Purchasing Management Stormwater Sanitary Sewer Street Maintenance Street Lights &Signals 21 City of Tigard, Oregon Principal Officials as of July 1, 2021 Elected Officials Name Term Expires Mayor Jason Snider December 31, 2022 Councilor John Goodhouse December 31, 2022 Councilor Jeanette Shaw December 31, 2024 Councilor Heidi Lueb December 31, 2024 Councilor Liz Newton December 31, 2022 Appointed Officials Name Title Steve Rymer City Manager Emily Oberdorfer Municipal Judge Shelby Rihala City Attorney Carol Krager City Recorder All may be reached at: 13125 SW Hall Boulevard Tigard, OR 97223 22 Financial Section 23 24 0 MOSSADAMS Report of Independent Auditors The City Council City of Tigard, Oregon Tigard, Oregon Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of Tigard, Oregon (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 25 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison schedule for the General Fund, the schedule of proportionate share of the net pension liability, the schedule of plan contributions, and the schedule of other employee postemployment benefits information (collectively, the required supplementary information) on pages 28 through 44 and 123 through 130 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the management's discussion and analysis, the schedule of proportionate share of the net pension liability, the schedule of plan contributions, and the schedule of other employee postemployment benefits information on pages 28 through 44 and 124 through 130 in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The budgetary schedule for the General Fund described above on page 123 is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The budgetary schedule for the General Fund has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary schedule for the General Fund is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual nonmajor fund financial statements, budgetary schedules, other financial schedules on pages 133 to 218 are presented for purposes of additional analysis and are not a required part of the basic financial statements. 26 This supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. This information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary schedules, combining and individual nonmajor fund financial statements, other financial schedules, and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. The introductory section and statistical information have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Report on Other Legal and Regulatory Requirements Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2021 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Other Reporting Required by Minimum Standards for Audits of Oregon Municipal Corporations In accordance with Minimum Standards of Audits of Oregon Municipal Corporations, we have issued our report dated December 6, 2021 on our consideration of the City's compliance with certain provisions of laws and regulations, including the provisions of Oregon Revised Statues as specified in Oregon Administrative Rules. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing and not to provide an opinion on compliance. `IY1cCQe.0. -"YYu rte, Amanda McCleary-Moore, Partner for Moss Adams LLP Portland, Oregon December 6, 2021 27 City of Tigard, Oregon Management's Discussion and Analysis As management of the City of Tigard, we offer readers this narrative overview and analysis of the financial activities of the City of Tigard for the fiscal year ended June 30, 2021. It focuses on significant financial issues, major financial activities, and resulting changes in financial positions, as well as economic factors affecting the city. This Management's Discussion and Analysis (MD&A) is based on currently known facts, decisions, and conditions that existed as of the date of the independent auditor's report. We encourage readers to consider the information presented here in conjunction with the transmittal letter at the front of this report and the city's financial statements which follow this discussion and analysis. Financial Highlights • Assets and deferred outflows of resources of the city exceeded its liabilities and deferred inflows of resources at the close at June 30, 2021 by$519,931,549 (net position). Of this amount, $35,591,514 is restricted for transportation construction, maintenance and utility undergrounding, $12,960,369 is restricted for park development and improvements, $358,547 is restricted for tourism, $16,052,039 is restricted for water system construction and improvements, $7,029,876 is restricted for debt service, $10,326,188 is restricted for building development plan review and inspection, $609,144 is restricted for library capital improvements, $3,122,888 is restricted for urban development and improvements and $1,457,236 is restricted for law enforcement. $105,906,217 is unrestricted net position may be used to meet the city's ongoing obligations to citizens and creditors and $326,517,531 is for net investment in capital assets. • The city's total net position had a net increase of$20,441,317 or 4.1 percent from the June 30, 2020 net position. Governmental activities net position increased by $13,698,344, or 4.4 percent. The business-type activities net position increased by $6,742,973 or 3.5 percent. The reasons for the increase are noted in the financial analysis section of the MD&A. • The city's governmental funds reported combined ending fund balances of$108,169,008, an increase of $10,050,971 or 10.2 percent from fiscal year 2020. Of the combined ending governmental fund balances, $29,641,882 or approximately 27.4 percent is available for spending at the city's discretion subject to council approved policies and actions. • At the end of the fiscal year, unassigned fund balance for the General Fund was $29,764,210, up $2,941,197 over the prior year. • The city's total debt decreased by$4,664,202 or 3.1 percent from fiscal year 2020. Overview of the Financial Statements In addition to this discussion and analysis,the financial section of this annual report contains the basic financial statements, required supplementary information, and the combining statements of the nonmajor funds and schedules demonstrating legal compliance. The basic financial statements also include notes that explain the information in the financial statements and provide more details. The statements are followed by the required supplementary information section that supports the information in the financial statements. 28 City of Tigard, Oregon Management's Discussion and Analysis Government-wide financial statements The government-wide financial statements are designed to provide readers with a broad overview of the city's finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the city's assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the city is improving or deteriorating. The Statement of Activities presents information showing how the city's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in a future fiscal period. Examples of such items include earned, but uncollected property taxes, and earned, but unused compensated absences. Both of the government-wide financial statements distinguish functions of the city that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the city include the following: • Community services, including police, library, and social services • Public works, including parks and recreation • Community development, current and long-range planning • Policy and administration The business-type activities of the city include the following: • Sanitary sewer • Stormwater • Water The government-wide financial statements can be found in the financial section of this report, immediately following the Independent Auditor's Report. Fund Financial Statements are designed to display compliance with finance-related legal requirements demonstrated by the use of fund accounting. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities and objectives. The funds of the city can be divided into the following categories: governmental funds, proprietary funds, and a fiduciary fund. Governmental Funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of available resources, as well as on balances of available resources at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial capability. 29 City of Tigard, Oregon Management's Discussion and Analysis Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the city's near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The city maintains 27 individual governmental funds. Information is presented separately in the governmental fund Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances for those funds that are considered significant (major) to the city taken as a whole. These financial statements report one major fund: the General fund. Data from the other 26 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The city adopts an annual appropriated budget for all of its governmental funds. A budgetary comparison statement has been provided for each fund individually to demonstrate compliance with their budgets. The basic governmental fund financial statements can be found in the Basic Financial Statements section of this report. Proprietary Funds are used to account for a government's business-type activities. The city maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the governmental-wide financial statements. The city uses enterprise funds to account for its sanitary sewer, stormwater, and water operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the city's various functions. The city uses internal service funds to account for fleet and property maintenance, risk management, design and communication, finance and accounting, public works administration, engineering, and other management services. The city reports all three of the enterprise funds as major funds. These funds are the Sanitary Sewer Fund, the Stormwater Fund, (which consists of the budgetary Stormwater and the Water Quality/Quantity Funds), and the Water Fund, (which includes the budgetary Water, Water SDC, Water CIP and Water Debt Service Funds). However, for budgetary and legal purposes these funds are accounted for separately. Conversely, all internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided as other supplementary information. The city also adopts an annual appropriated budget for all proprietary funds. To demonstrate compliance with the budget, budgetary comparison statements have been provided for the enterprise funds as other supplementary information in the Enterprise Funds section of this report. Budgetary comparisons for the internal service funds are provided in the Internal Service Funds section of this report. The proprietary fund financial statements can be found in the Basic Financial Statements section of this report. 30 City of Tigard, Oregon Management's Discussion and Analysis Fiduciary Funds are used to account for assets held in a trustee or agency capacity for others and therefore cannot be used to support the government's own programs. The city has a pension trust fund that accounts for employee defined contribution plans. The accounting used for the fiduciary fund is much like that used for the proprietary funds. No budget is adopted for the fiduciary fund in accordance with Oregon local budget law. The fiduciary fund financial statements can be found in the Fiduciary Funds section of this report. Notes to the Basic Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found in the Notes to Basic Financial Statements section of this report. Required Supplementary Information includes Schedule of Revenues and Expenditures— Budget and Actual for the General Fund. The Budget to GAAP reconciliation for the General Fund is also included. This section also presents the schedule of the city's proportionate share of the liability/(asset) and the schedule of contributions for net pensions and other post-employment benefits (OPEB). Required supplementary information can be found immediately following the notes to the financial statements of this report. The combining statements referred to earlier in connection with nonmajor governmental funds and business- type funds are presented immediately following the required supplementary information. Government-wide Financial Analysis—Statement of Net Position Net position: As noted earlier, net position may serve over time as a useful indicator of the city's financial position. In the case of the city, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $519,931,549 at June 30, 2021. The largest portion of the city's net position, approximately 62.8 percent, is its investment in capital assets (e.g., land, construction in progress, buildings, roads, sewers, stormwater facilities, etc.), net of accumulated depreciation and any related debt used to acquire those assets that is still outstanding. The city uses these capital assets to provide services to citizens; consequently,these assets are not available for future spending. Although the city's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since capital assets themselves cannot be used to liquidate these liabilities. The city's restricted net position in the amount of $87,507,801 or approximately 16.8 percent represents resources that are subject to external restrictions on how they may be used. By definition, the city cannot remove these restrictions as they are imposed by parties outside of the city. The remaining balance is unrestricted net position in the amount of$105,906,217 or approximately 20.4 percent of total net position. At the end of the current year, the city is able to report positive balances in all categories of net position for governmental and business-type activities. Total net position increased by $20,441,317 or 4.1 percent during the current fiscal year. Total assets for governmental activities increased by approximately$16.5 million, or approximately 4.7 percent. Noteworthy changes included an increase in cash and investments of approximately $17 million or 16.7 percent. This increase is due to the receipt of Federal American Rescue Plan Act (ARPA) and Coronavirus Aid, Relief, and Economic Security Act funds (CARES Act). 31 City of Tigard, Oregon Management's Discussion and Analysis Governmental activities liabilities increased by approximately $2.7 million or 6.4 percent. Noteworthy changes include an increase in unearned revenue from the receipt of ARPA funds. The city is in process of creating plans to spend these funds on formative projects that will benefit the community. Business-type activities total assets increased by approximately $1 million or 0.3 percent over the prior year. Cash and investments increased by approximately$2.8 million or 3.6 percent over the prior year.This increase is mainly due to higher utility rates. Capital assets decreased by $3.4 million or 1.5 percent. This decrease is due to depreciation expense being greater than the reinvestment in capital assets for the fiscal year ended June 30, 2021. Total long-term debt for business-type activities decreased by approximately $3.0 million or 2.4 percent, which primarily represents payment of principal and amortization of the bond premium on the water revenue bond issues, as well as issuance of revenue refunding bonds. The water revenue bonds were issued in fiscal years 2012 and 2015 for the Lake Oswego/Tigard Water Partnership. Most of the 2012 bonds were refunded with lower interest bonds. See the notes to the basic financial statements for more information. City of Tigard—Summary of Net Position Governmental Business-Type Total Activities Activities 2021 2020 2021 2020 2021 2020 Current and other assets $131,130,015 $115,791,910 $ 91,084,689 $ 86,546,559 $222,214,704 $202,338,469 Capital assets 235,250,260 234,126,963 235,139,700 238,622,495 470,389,960 472,749,458 Total Assets 366,380,275 349,918,873 326,224,389 325,169,054 692,604,664 675,087,927 Deferred outflows 4,791,279 4,111,239 3,616,594 9,047 8,407,873 4,120,286 Current and other liabilities 14,998,155 11,587,326 8,988,362 8,073,236 23,986,517 19,660,562 Long-term liabilities outstanding 31,470,627 32,102,049 123,847,149 126,852,570 155,317,776 158,954,619 Total Liabilities 46,468,782 43,689,375 132,835,511 134,925,806 179,304,293 178,615,181 Deferred inflows 1,740,559 1,076,868 36,136 25,935 1,776,695 1,102,803 Net investment in capital assets 222,374,600 216,281,021 104,142,931 108,782,212 326,517,531 325,063,233 Restricted 69,011,237 61,695,111 18,496,564 22,974,351 87,507,801 84,669,462 Unrestricted 31,576,376 31,287,737 74,329,841 58,469,800 105,906,217 89,757,537 Total Net Position $322,962,213 $309,263,869 $ 196,969,336 $190,226,363 $519,931,549 $499,490,232 32 City of Tigard, Oregon Management's Discussion and Analysis City of Tigard —Summary of Changes in Net Position Governmental Business-Type Total Activities Activities 2021 2020 2021 2020 2021 2020 Revenues Program revenues: Charges for services $ 11,955,534 $ 11,103,876 $ 32,005,048 $ 30,292,118 $ 43,960,582 $ 41,395,994 Operating grants and contributions 13,346,482 9,625,070 - - 13,346,482 9,625,070 Capital grants and contributions 8,959,707 8,542,864 2,838,367 3,139,146 11,798,074 11,682,010 General revenues: Property taxes 23,620,200 20,325,728 - - 23,620,200 20,325,728 Franchise fees 6,978,783 6,360,563 - - 6,978,783 6,360,563 Unrestricted intergovernmental revenues 2,426,817 2,484,051 84,220 - 2,511,037 2,484,051 Interest 558,060 2,520,783 307,581 1,770,933 865,641 4,291,716 Miscellaneous 702,068 502,164 276,262 120,392 978,330 622,556 Total revenues 68,547,651 61,465,099 35,511,478 35,322,589 104,059,129 96,787,688 Expenses Community services 30,378,435 25,961,675 - - 30,378,435 25,961,675 Public works 14,035,986 9,578,442 - - 14,035,986 9,578,442 Community development 6,719,376 5,817,188 - - 6,719,376 5,817,188 Policy and administration 4,092,081 3,383,319 - - 4,092,081 3,383,319 Interest on long-term debt 543,661 760,211 - - 543,661 760,211 Sanitary sewer - - 3,423,460 3,044,154 3,423,460 3,044,154 Stormwater - - 4,257,993 3,433,481 4,257,993 3,433,481 Water - - 20,166,820 19,418,199 20,166,820 19,418,199 Total expenses 55,769,539 45,500,835 27,848,273 25,895,834 83,617,812 71,396,669 Revenues over expenses 12,778,112 15,964,264 7,663,205 9,426,755 20,441,317 25,391,019 Transfers in(out) 920,232 102,924 (920,232) (102,924) - - Changes in net position 13,698,344 16,067,188 6,742,973 9,323,831 20,441,317 25,391,019 Beginning net position 309,263,869 293,196,681 190,226,363 180,902,532 499,490,232 474,099,213 Ending net position $322,962,213 $309,263,869 $196,969,336 $190,226,363 $519,931,549 $499,490,232 33 City of Tigard, Oregon Management's Discussion and Analysis Expenses and Program Revenues—Governmental activities—June 30, 2021 $25,000,030 $20,000,000 - $15,000,000 - $10,000,000 - ■ Revenues ill$5,000,000 - II • Expenses $3 � : �n'��SeN�ces 9,N'0%slat dose oilmen aa�,�,sttatto ons tette aeat Gotrtn (� at e t°r\ Gott' 900 ,00 Governmental Activities Governmental activities increased the city's net position by $13,698,344. This increase is less than the approximate $16.1 million increase in net position from governmental activities experienced in fiscal year 2020. While most revenues, including property taxes, operating grants and contributions, and franchise fees experienced increases during fiscal year 2021, the decrease comes from an approximate $1.9 million less interest. Noteworthy reasons for the change from the prior year are as follows: • Property taxes constitute approximately 34.5 percent of total governmental revenues and continues to be a major source of revenue for the funding of city programs. Property tax revenues are up by approximately $3.3 million or 16.2 percent over 2020. Oregon has a "rate-based" system in which property taxes are expressed in a dollar amount per thousand dollars of assessed value. The City of Tigard's permanent tax rate is $2.5131 per thousand dollars of assessed value. The money raised by this levy is available for general purposes. The permanent rate is multiplied by the assessed value each year to arrive at the tax authority for that year. Assessed value growth is limited to a maximum 3 percent per year, plus a pro-rated share of new construction and annexations. Assessed value cannot exceed real market value. General Obligation (GO) debt service levies are calculated to produce enough tax revenues that (when combined with other resources such as interest earnings and fund balance) will be enough to pay debt service due on these voter-approved bonds. On November 2, 2010, voters approved a bond measure in the amount of$17.0 million for acquisition and development of park land. These bonds were sold on February 3, 2011 to Wells Fargo Bank, National Association. Also on that date, the city refunded $9.0 million of outstanding general obligation bonds that were approved on May 21, 2002, by voters to build a new library. On April 28, 2020 the city issued more than $5.9 million in general obligation refunding bonds to defease part of the park bonds.This refunding reduced total debt service payments 34 City of Tigard, Oregon Management's Discussion and Analysis by more than $1.7 million over five years resulting in an economic gain of more than $1.2 million.Taxes collected through the tax levy repay the bonded debt. In May 2020 Tigard voters approved a five-year Police Services Levy at $0.29 per thousand dollars of assessed value. The passage of the levy provides: o Eight additional patrol officers to respond to increased calls for service, multiple emergencies at the same time and neighborhood patrols. o Another school resource officer to enhance student safety. o Training for all sworn officers in advanced crisis intervention and de-escalation to address increased mental health crises. o Additional staff to manage an increase in evidence and records, support data-informed policing, communications and human resources. • Operating grants and contributions experienced an approximate $3.7 million increase from fiscal year 2020. This increase is due to receiving CARES Act funding for reimbursement of expenses associated with the COVID-19 pandemic. • Overall expenses for governmental activities of $55,769,539 increased from the prior fiscal year by approximately $10.3 million. This increase was due to an increase in community services activities associated with the Police Services Levy and with capital improvement projects. Revenues by Source—Governmental Activities-June 30, 2021 Capital grants and contributions Taxes 13% 38% Operating grants and contributions Interest 20% 196 Franchise fees Charges for services 10% 17% Misc 1% 35 City of Tigard, Oregon Management's Discussion and Analysis Business-type Activities Business-type activities increased the city's net position by $6,742,973. The primary reasons for the current year's increases are: • Charges for services represent approximately 90.1 percent of total business-type revenues and are composed of fees that are charged to all users for services provided such as water, sanitary sewer, and stormwater. The sanitary and stormwater fees are established by Clean Water Services (CWS) and are set by the agency each year. The city council, through an intergovernmental agreement with other water system participants, sets the water rates. Total charges for services increased by approximately $1.7 million or 5.7 percent over fiscal year 2020, with the largest increase in water revenues. • Expenses for stormwater operations increased approximately$825,000 or 24.0 percent from the prior fiscal year. The increase is primarily due to an increase in depreciation expense on stormwater system assets and stormwater operations. Expenses and Program Revenues— Business-type Activities—June 30, 2021 $25,000,000 -- $22,500,000 - $20,000,000 - $17,500,000 - $15,000,000 - $12,500,000 - ■ Revenues $10,000,000 - ■ Expenses $7,503,003 - $5,000,000 - $2,500,000 - $0 5e cazc �yet avec a.cet ti" (DIP Financial Analysis of the City's Funds As noted earlier, 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, unassigned fund balance may serve as a useful measure of the city's net resources available for spending at the end of the fiscal year. 36 City of Tigard, Oregon Management's Discussion and Analysis As of the end of the fiscal year 2021, the city's governmental funds reported combined ending fund balances of$108,169,008 an increase of$10,050,971 over the prior year. Approximately 30.7 percent or$33.2 million of this total amount constitutes assigned and unassigned fund balances, which is available for spending at the government's discretion.The restricted fund balance is$69,593,046 or 64.3 percent of the total fund balance. Most of the restricted fund balance is dedicated for park acquisition and development, building inspections, or for street maintenance and improvements. Other restricted resources include library improvements, Police services, urban development and improvements and future debt service. The remainder of fund balance is either committed for resources constrained on use by the city council via a city ordinance or a council resolution or is non-spendable to indicate that it is not available for discretionary spending, such as prepaids. General Fund The General Fund is the chief operating fund of the city. At the end of the fiscal year 2021, the unassigned fund balance was $29,764,210 or approximately 96.3 percent of the total fund balance of$30,919,724. As a measure of the General Fund's liquidity, it may be useful to compare fund balance to total fund expenditures. Unassigned fund balance represents 90.8 percent of total General Fund expenditures. The fund balance of the General Fund increased by $2,938,127 or 10.5 percent. The increase is primarily attributable to the receipt of federal CARES Act funding for reimbursement of expenses associated with the COVID-19 pandemic. Proprietary Funds The city's proprietary funds include the Sanitary Sewer, Stormwater, Water, and Internal Services Funds. The unrestricted net position of the business-type activities at year-end amounted to $74,329,841 with individual fund unrestricted net position at: • Sanitary Sewer $8,149,553 • Stormwater $8,797,325 • Water Funds $57,382,963 The factors concerning the finances of these funds have already been addressed in the discussion of the city's business-type activities. General Fund Budgetary Highlights The city council approved four supplementary budget amendments to the adopted General Fund budget.Total final adopted budgeted expenditures increased by$4,569,179 from the original budgeted numbers. Budgeted General Fund contingency was decreased by $972,611 or 58.9 percent. Following are noteworthy changes from the original budget to the final adopted budget in the General Fund: • Community Services - Budget appropriation increases totaled $3,559,763, the majority of which was for Tigard CARES Business Assistance. • Community Development — Budget appropriation increases totaled $720,916, the majority of which was to fund the Washington Square Regional Center Update project, and the River Terrace Concept Planning project. 37 City of Tigard, Oregon Management's Discussion and Analysis The contingency transactions account for increase in budgeted expenditures not related to increased revenues. There was an increase to ending General Fund budgetary fund balance of $174,200 as a result of these budget amendments. Noteworthy variances from the final adopted budget to actual revenues in the General Fund are as follows: • Fines and forfeitures — variance with budget of $(895,046) due to a delay in collection of fines and forfeitures related to COVID. • Franchise fees — variance with budget of $364,879 due to a contractor ensuring franchise fees were collected from all applicable companies. • Intergovernmental Revenues — variance with budget of $(520,903) due to projects not spending as much of the grant awards as was planned for the year. Capital Asset and Debt Administration Capital Assets Governmental Activities The city's investment in capital assets for its governmental activities as of June 30, 2021, amounts to $235,250,260 (net of accumulated depreciation). This investment in capital assets primarily includes land, right-of-ways, buildings and improvements, machinery and equipment, office equipment and infrastructure. The infrastructure includes roads, curbs and sidewalks, signage, streetlights, and right-of-ways. The total increase in the city's investment in governmental activities capital assets was$1,123,297 or approximately 0.5 percent over the prior year. The city recorded approximately $799,000 in developer contributions for street and transportation infrastructure due to the growing subdivisions within the city. Other governmental asset additions include street and transportation projects and replacement of aged vehicles within the city's fleet. Expenditures on capital assets were higher than overall depreciation expense, leading to the increase in net capital assets. Business-type Activities The city's investment in capital assets for its business-type activities as of June 30, 2021, amounts to $235,139,700 (net of accumulated depreciation). In addition to machinery, equipment and vehicles, the capital assets include the sanitary sewer collection system, stormwater, and water systems. Total decrease in the city's investment in business-type activities capital assets was $3,482,795 or 1.5 percent. This decrease is due to expenditures on capital assets being lower than the overall depreciation expense, leading to a decrease in net capital assets. 38 City of Tigard, Oregon Management's Discussion and Analysis Capital Assets, net of depreciation Governmental Business-Type Total Activities Activities 2021 2020 2021 2020 2021 2020 Land $ 28,600,663 $ 26,380,089 $ 12,302,979 $ 11,975,910 $ 40,903,642 $ 38,355,999 Construction in progress 8,386,464 8,433,979 5,264,813 2,998,627 13,651,277 11,432,606 Buildings and building improvements 12,520,890 12,588,769 71,038,440 72,936,629 83,559,330 85,525,398 Land improvements 9,051,071 9,615,453 7,505,761 7,505,761 16,556,832 17,121,214 Sewer system - - 17,352,721 17,905,816 17,352,721 17,905,816 Stormwater system - - 12,150,930 12,481,961 12,150,930 12,481,961 Water system - - 107,268,183 110,349,547 107,268,183 110,349,547 Machinery and equipment 276,541 237,513 1,804,174 1,861,885 2,080,715 2,099,398 Autos and trucks 1,607,782 1,307,557 451,699 606,359 2,059,481 1,913,916 Office equipment 1,377,364 1,748,428 - - 1,377,364 1,748,428 Infrastructure 173,429,485 173,815,175 - - 173,429,485 173,815,175 Total Capital Assets $ 235,250,260 $ 234,126,963 $ 235,139,700 $ 238,622,495 $ 470,389,960 $ 472,749,458 The following chart indicates the city's capital assets as of June 30, 2021. Additional information on the city's capital assets can be found in Note 5. Capital Assets in the notes to the basic financial statements of this report. Total Capital Assets Land Construction in progress 8.7% 2.9% Buildings and building Infrastructure improvements 36.9% 17.8% Office equipment 0.3% AutosLand improvements and trucks 3.5% 0.4% Sewer system Machinery and_ Storm drainage system 3.7% equipment Water system 2.6% 0.4% 22.8% 39 City of Tigard, Oregon Management's Discussion and Analysis Debt Outstanding As of year-end, the city had total debt outstanding of $145,046,610. Of this amount $17,657,088 is general obligation and full faith and credit bonds; $125,917,499 represents water revenue bonds; $1,472,023 represents a note payable. Both general obligation bonds and full faith credit bonds are direct obligations pledging the full faith and credit of the city. Total debt decreased by $4,664,202 or approximately 3.1 percent during the current fiscal year. For the business-type activity, in fiscal year 2021 the city issued refunding water revenue bonds with a par value of $86,575,000. Proceeds from these bonds were used to refund the 2012 water revenue bonds.This refunding was undertaken to reduce total debt service payments by $27,655,069 which produced an economic gain of $16,503,405.The city also has an outstanding note payable that is part of a grant and low interest loan package provided to the city to make improvements to one of the city's water reservoirs. These funds were part of the American Recovery and Reinvestment Act(ARRA). The outstanding balance on this debt is$1,472,023 at year- end. During fiscal year 2015, in anticipation of issuing water revenue bonds,the city received a revenue bond rating of Al from Moody's Investors Service and AA-from Standard & Poor's Ratings Services. During fiscal year 2017 Moody's Investor Services reviewed the city's water enterprise activities and upgraded the city's rating from Al to Aa3. The State of Oregon statutes limit the amount of general obligation debt that cities can issue to 3.0 percent of the real market value of all taxable property within the city limits. The current debt limitation for the city for general obligation debt is $383 million, which is significantly in excess of the city's outstanding general obligation debt. The following chart indicates the city's long-term liabilities as of June 30, 2021. Additional information on the city's debt can be found in Note 6. Long-Term Debt and Other Debt in the notes to the basic financial statements of this report. Governmental Activities Business-Type Activities Total 2021 2020 2021 2020 2021 2020 General obligation $ 17,657,088 $ 19,870,531 $ - $ - $ 17,657,088 $ 19,870,531 Note payable - - 1,472,023 1,585,637 1,472,023 1,585,637 Revenue bonds - - 125,917,499 128,254,644 125,917,499 128,254,644 Total Outstanding Debt $ 17,657,088 $ 19,870,531 $ 127,389,522 $ 129,840,281 $ 145,046,610 $ 149,710,812 40 City of Tigard, Oregon Management's Discussion and Analysis Total Outstanding Long-Term Debt General obligation 12.2% 1 . Note payable 1.0% Revenue bonds 86.8% Economic Factors and Budget Information for Next Year The following economic factors currently affect the city and were considered in developing the city's budget for fiscal year 2022: COVID-19 Since March 2020, the COVID 19 pandemic has caused financial difficulties for the Tigard community and continues to impact the local, regional, state, and national economy. While preparing the FY 2022 budget, key financial staff from across the city gathered to discuss the impact of COVID on our revenue forecast, including Police, Public Works, Community Development, City Management, and Finance. Together we have gathered the data available and have made forecast of the financial impact of the COVID Pandemic on City of Tigard finances. While several individual revenues have been impacted by restrictions that COVID has caused,the City of Tigard is fortunate that the primary revenue streams for the organization have not been heavily impacted by the pandemic and resulting impacts on the economy. Tigard is not dependent on revenue streams like income tax, gross receipts (sales tax), or event revenues. Organizations like the City of Portland and Metro have understandably made budget corrections due to their dependence on these types of revenue streams for certain services. The primary General Fund revenue, property tax, is expected to be largely unaffected. Real market property values would need to drop by about 1/3rd to impact the anticipated 3% growth in assessed value. Construction, which adds to the 3% AV growth, remains an essential service through this pandemic. Further, Tigard spent fiscal years FY19 and FY20 implementing service level reductions already, bolstering Tigard's financial ability to be patient and use reserves, if needed. 41 City of Tigard, Oregon Management's Discussion and Analysis The key areas that have been impacted that the city will continue to monitor include: • Transient Lodging Tax (TLT) revenues in Tigard are down and are expected to continue to be below pre-pandemic levels for the next couple years. TLT shows up in two areas. First, Tigard's share of county-wide TLT revenues represent approximately 1.5 percent of the total General Fund revenues. This revenue source has not been dedicated to any particular service and the reduction is not enough to cause service cut at this time. Second, Tigard has its own 2.5 percent TLT within its own fund. This is a relatively new fund for the city and the revenues have not been fully committed.Tigard can afford to wait for tourism to rebound to help fund the tourism related projects these revenues support. • Gas Tax revenues are expected to plateau at 90 percent of pre-pandemic levels, in part as the economy transitions into a higher percentage of remote work employees. This is limiting the ability of the use of state and city gas tax revenues for use in capital project budgeting. • Traffic Fines. This is a key General Fund revenue that was expected to increase with the implementation of the photo enforcement traffic safety program. However, the program has been hampered by limited ability to adjudicate infractions and the expected revenues have not materialized. When the program is fully operational, the revenues are expected to pay for the cost of the program plus provide revenue that will help pay for a portion of future police facilities. Long Term General Fund This is once again an emerging issue. In FY 19 and FY 20,Tigard made service level reductions to establish the service level reserve. This is discussed in more detail in the General Fund section of the forecast. The creation of the Service Level Reserve is meant to be a mid-term solution to a long-term problem. The long-term problem is that revenues do not grow fast enough to pay for inflation on existing costs let alone, inflation plus needed increases to those services to keep up with population growth. The Service Level Reserve will allow Tigard to add limited services to keep up with population growth for a couple more years. In FY 24, Tigard's General Fund expenses are forecasted to exceed revenues and the Service Level Reserve will be depleted after FY 27. In the interim,Tigard needs to seek a long-term solution to fund services for the community through the end of the decade and beyond. Without one, Tigard will return to a cycle of slowly degrading service levels and budget cuts. Tigard's leadership will start working on options to present to the Budget Committee during the next two years. This will provide the opportunity to be proactive in maintaining both fiscal and service level health. City Facilities Over the last couple of years, Tigard has taken a hard look at our aging facilities. From a financial standpoint, the facilities that the city occupies were paid for long ago. Tigard's operations pay for the maintenance of existing space; however, with a couple of exceptions where we have had to lease space, Tigard's operations have not had to pay for the cost of the space in the equivalent of rent or a mortgage. While the plan is not fully complete, Tigard will need to invest in more, and better, seismically resilient space for housing its community services, equipment, and materials soon. Accordingly, this forecast is including the estimated cost of that space starting in FY 2023. Currently, that is showing up as a share of debt service 42 City of Tigard, Oregon Management's Discussion and Analysis payments for new/improved buildings across many of our funds that house the operations of the city. In some funds,this forecasted cost has minimal near-term impact in the six-year forecast.There are three funds where decisions to address city facilities have notable impact on the forecast. These funds are: • General Fund: As mentioned previously, the revenues in excess of program expenditures in the photo enforcement traffic safety program are being dedicated to pay for a portion of future police department space needs. If that revenue does not materialize, or is significantly lower,then Tigard will need to look to use other General Fund revenues to make up the difference, putting service levels at risk. • Parks Utility Fund: Tigard's Parks Maintenance and Recreation divisions are in the Parks Utility Fund. This fund has two primary funding sources that each pay for about half of the cost of service.This fund receives a transfer from the General Fund of$2.4 million and revenues from the Park and Recreation Fee (PARF) that is on the city's utility bill generates $2.4 million. Other utility rates (water, sewer, stormwater) are built to pay for the entirety of operations, maintenance, and capital. This means that the rates paid for other utilities likely will not need to be adjusted in the near term to pay for new facilities. The existing PARF is sufficient to only pay for half of operations and maintenance, meaning the PARF will need to increase to pay its share of new facilities.The forecast adds this cost and assumes that the decision to pay for facilities includes the decision to increase the PARF to pay for park's share. In addition to the prior demands being placed on PARF,Tigard will adopt a new Parks Master Plan.The plan includes priorities for the operations of the parks system, recreation opportunities, and organization changes. All of these priorities will require additional resources and put more pressure on the PARF. • Gas Tax Fund: The Gas Tax Fund receives the city's share of state gas tax revenues. As previously mentioned,this revenue is expected to plateau at about 90 percent of pre-pandemic forecast amounts. In addition,there is revenues from a county gas tax and registration fee revenues.These revenues pay for the Street Maintenance Division which maintains the city's streets and assets in the right of way, and the Street Lights and Signals Division which pays for the electrical bill and maintenance of the city's street lights and intersection signals. Combined, these services use about 75 percent of the fund's revenues.The remaining 25 percent have been used to help pay for transportation projects in the city's Capital Improvement Plan (CIP). Most of the other transportation related funds of the city are limited, or dedicated, to specific transportation needs. The Gas Tax Fund can be used for any transportation need within the city's right of way and has acted as a backstop to help fund complete transportation projects.The Gas Tax's expected share of city facility costs is expected to use the remaining 25 percent, effectively taking Gas Tax Fund out of the CIP. All of these factors were considered in preparing the city's budget for fiscal year 2021-2022. The current forecast shows that in the short-term the city's financial condition is stable in most funds. The fiscal year 2022 budget continued addressing a projected General Fund deficit that had been forecasted to occur earlier than what is now projected. City budgets are developed to address the continuing challenge of flat revenues and increasing expenditure rates. 43 City of Tigard, Oregon Management's Discussion and Analysis Requests for Information This financial report is designed to provide a general overview of the City of Tigard's finances for all those with an interest in the city's finances. Questions concerning any of the information provided in the report or requests for additional financial information should be addressed to: City of Tigard Financial and Information Services Director 13125 SW Hall Blvd. Tigard, Oregon 97223 44 Basic Financial Section 45 46 CITY OF TIGARD,OREGON STATEMENT OF NET POSITION June 30,2021 Governmental Business-Type ASSETS Activities Activities Total Cash and investments $ 47,205,548 $ 61,145,003 $ 108,350,551 Accounts receivable,net 6,275,436 6,754,168 13,029,604 Property taxes receivable 349,916 - 349,916 Assessment liens receivable 126,502 - 126,502 Prepaids 592,969 - 592,969 Inventory 4,400 293,298 297,698 Investment in joint venture - 1,792,758 1,792,758 Property held for resale - 445,042 445,042 Restricted cash and investments 76,504,962 20,654,420 97,159,382 Net other post-employment benefit asset 70,282 - 70,282 Capital assets: Land and construction in process 36,987,127 17,567,792 54,554,919 Other capital assets(net of accumulated depreciation) 198,263,133 217,571,908 415,835,041 Total assets 366,380,275 326,224,389 692,604,664 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pension 4,690,366 - 4,690,366 Deferred outflows related to OPEB 100,913 9,347 110,260 Deferred outflows related to bond refunding - 3,607,247 3,607,247 Total deferred outflows 4,791,279 3,616,594 8,407,873 LIABILITIES Accounts payable and accrued liabilities 4,346,095 3,710,677 8,056,772 Deposits 2,030,142 12,075 2,042,217 Due to other entities/agencies 778,807 - 778,807 Unearned revenue 3,819,913 10,347 3,830,260 Accrued interest payable 46,602 1,600,195 1,646,797 Due within one year: Notes payable - 117,022 117,022 Bonds payable 2,391,172 3,433,449 5,824,621 Accrued compensated absences 1,585,424 104,597 1,690,021 Due in more than one year: Notes payable - 1,355,001 1,355,001 Internal balances 102,320 (102,320) - Bonds payable 15,265,916 122,484,052 137,749,968 Accrued compensated absences 66,059 3,548 69,607 Total other post-employment benefit liability 1,224,089 106,868 1,330,957 Net pension liability 14,812,243 - 14,812,243 Total liabilities 46,468,782 132,835,511 179,304,293 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pension 1,350,402 - 1,350,402 Deferred inflows related to OPEB 390,157 36,136 426,293 Total deferred inflows 1,740,559 36,136 1,776,695 NET POSITION Net investment in capital assets 222,374,600 104,142,931 326,517,531 Restricted for: Transportation construction,maintenance,and utility undergrounding 35,591,514 - 35,591,514 Park development and improvements 12,960,369 - 12,960,369 Tourism 358,547 - 358,547 Water system construction and improvements - 16,052,039 16,052,039 Debt service 4,585,351 2,444,525 7,029,876 Building development plan review and inspection 10,326,188 - 10,326,188 Library capital improvements 609,144 - 609,144 Urban development and improvements 3,122,888 - 3,122,888 Law enforcement 1,457,236 - 1,457,236 Unrestricted 31,576,376 74,329,841 105,906,217 Total net position $ 322,962,213 $ 196,969,336 $ 519,931,549 The accompanying notes are an integral part of the basic financial statements. 47 CITY OF TIGARD,OREGON STATEMENT OF ACTIVITIES for the year ended June 30,2021 Program Revenues Charges Operating for Grants and Functions/Programs Expenses Services Contributions Governmental activities: Community services $ 30,378,435 $ 2,207,360 $ 7,863,015 Public works 14,035,986 5,324,404 5,174,090 Community development 6,719,376 4,324,710 - Policy and administration 4,092,081 99,060 309,377 Interest on long-term debt 543,661 - - Total governmental activities 55,769,539 11,955,534 13,346,482 Business-type activities: Sanitary sewer 3,423,460 3,348,846 - Stormwater 4,257,993 3,820,029 - Water 20,166,820 24,836,173 - Total business-type activities 27,848,273 32,005,048 - Total $ 83,617,812 $ 43,960,582 $ 13,346,482 The accompanying notes are an integral part of the basic financial statements. 48 Net(Expense)Revenue and Changes in Net Position- Primary Government Capital Grants and Governmental Business-type Contributions Activities Activities Total $ - $ (20,308,060) $ - $ (20,308,060) 8,506,808 4,969,316 - 4,969,316 452,899 (1,941,767) - (1,941,767) - (3,683,644) - (3,683,644) - (543,661) - (543,661) 8,959,707 (21,507,816) - (21,507,816) 313,056 - 238,442 238,442 329,317 - (108,647) (108,647) 2,195,994 - 6,865,347 6,865,347 2,838,367 - 6,995,142 6,995,142 $ 11,798,074 (21,507,816) 6,995,142 (14,512,674) General Revenues: Property taxes,levied for general purposes 21,247,314 - 21,247,314 Property taxes,levied for debt service 2,372,886 - 2,372,886 Franchise fees 6,978,783 - 6,978,783 Unrestricted intergovernmental revenues 2,426,817 84,220 2,511,037 Interest earnings 558,060 307,581 865,641 Miscellaneous 702,068 276,262 978,330 Total general revenues 34,285,928 668,063 34,953,991 Transfers between Governmental and Business-type activites 920,232 (920,232) - Change in net position 13,698,344 6,742,973 20,441,317 Net position,beginning 309,263,869 190,226,363 499,490,232 Net position,ending $ 322,962,213 $ 196,969,336 $ 519,931,549 49 CITY OF TIGARD,OREGON GOVERNMENTAL FUNDS-BALANCE SHEET June 30,2021 Other Total General Governmental Governmental Fund Funds Funds ASSETS Cash and cash equivalents $ 29,716,477 $ 6,334,000 $ 36,050,477 Accounts receivable 3,618,307 2,581,034 6,199,341 Property taxes receivable 283,860 66,056 349,916 Assessment liens receivable - 126,502 126,502 Interest receivable 22,775 11,685 34,460 Advances to other funds 883,981 - 883,981 Prepaids 271,533 - 271,533 Restricted cash and cash equivalents 3,749,863 72,755,099 76,504,962 Total assets $ 38,546,796 $ 81,874,376 $ 120,421,172 LIABILITIES Accounts payable and accrued liabilities $ 1,679,060 $ 1,833,603 $ 3,512,663 Deposits 455,923 1,398,477 1,854,400 Due to other entities/agencies 641,545 137,262 778,807 Advances from other funds - 986,301 986,301 Unearned revenue 3,749,863 50,000 3,799,863 Total liabilities 6,526,391 4,405,643 10,932,034 DEFERRED INFLOWS OF RESOURCES Resources not yet available: Property taxes 213,103 57,090 270,193 Municipal court receivable 497,480 - 497,480 Transportation refund credits - 35,857 35,857 Intergovernmental receivables 272,891 - 272,891 Special assessment liens - 126,502 126,502 Franchise fees 117,207 - 117,207 Total deferred inflows of resources 1,100,681 219,449 1,320,130 FUND BALANCES Nonspendable: Advances to other funds 883,981 - 883,981 Prepaids 271,533 - 271,533 Restricted for: Street maintenance and improvements - 35,033,390 35,033,390 Tourism - 358,547 358,547 Affordable housing - 748,140 748,140 Debt service - 4,419,020 4,419,020 Park development and improvements - 12,960,369 12,960,369 Underground utilities - 558,124 558,124 Building inspection - 10,326,188 10,326,188 Police services - 1,457,236 1,457,236 Library improvements - 609,144 609,144 Urban development and improvements - 3,122,888 3,122,888 Committed for: Street maintenance and improvements - 3,043,724 3,043,724 Urban forestry - 1,172,230 1,172,230 Assigned to: City facilities - 938,351 938,351 Park and recreation - 2,624,261 2,624,261 Unassigned 29,764,210 (122,328) 29,641,882 Total fund balances 30,919,724 77,249,284 108,169,008 Total liabilities,deferred inflows of resources and fund balances $ 38,546,796 $ 81,874,376 $ 120,421,172 The accompanying notes are an integral part of the basic financial statements. 50 CITY OF TIGARD,OREGON RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION GOVERNMENTAL FUNDS June 30,2021 Fund Balances-Governmental Funds $ 108,169,008 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Governmental capital assets $ 354,635,498 Less accumulated depreciation (119,385,238) 235,250,260 Pension assets or liabilities,with related deferred outflows of resources and deferred inflows of resources,are not reported in governmental funds, but are reported on the statement of net position. The amounts included in governmental activities on the statement of net position: Net pension liability (14,812,243) Deferred outflows of resources related to pensions and OPEB 4,690,366 Deferred inflows of resources related to pensions and OPEB (1,350,402) (11,472,279) Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the governmental funds and recognized as revenue in the Statement of Activities. Property taxes earned but not available 270,193 Franchise fees earned but not available 117,207 Municipal court receivable 497,480 Grant receivable 285,782 Transportation refund credits 35,857 Assessment liens 126,502 1,333,021 Internal service funds are used by management to charge the cost of administrative functions as well as fleet and property management to individual funds.The assets and liabilities of the internal service funds are included in governmental activities in the statement of activities. 9,177,015 Accrued compensated absences are not due and payable in the current period and therefore are not (969,675) reported in the funds. Long-term liabilities,including bonds payable are not due and payable in the current period and therefore,are not reported in the governmental funds. Bonds payable (17,657,088) Accrued interest payable,not due and payable in the current period (46,602) Net other post-employment benefit(OPEB)asset 70,282 Net other post-employment benefit(OPEB) liability (891,729) Net Position of Governmental Activities $ 322,962,213 The accompanying notes are an integral part of the basic financial statements. 51 CITY OF TIGARD,OREGON GOVERNMENTAL FUNDS- STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE for the year ended June 30,2021 Other Total General Governmental Governmental Fund Funds Funds REVENUES Taxes $ 17,778,222 $ 12,627,922 $ 30,406,144 Franchise fees 6,980,858 - 6,980,858 Special assessments - 90,251 90,251 Licenses and permits 1,404,096 2,301,126 3,705,222 Intergovernmental revenues 10,289,174 2,346,819 12,635,993 Charges for services 316,752 5,236,473 5,553,225 System development charges - 5,124,725 5,124,725 Fines and forfeitures 1,363,215 157,898 1,521,113 Interest earnings 263,812 583,530 847,342 Net increase (decrease) in investment fair value (94,591) (240,852) (335,443) Miscellaneous revenues 140,282 471,040 611,322 Total revenues 38,441,820 28,698,932 67,140,752 EXPENDITURES Current operating: Community services 27,429,523 1,303,404 28,732,927 Public works - 6,881,610 6,881,610 Community development 4,312,230 2,515,492 6,827,722 Policy and administration 1,029,244 - 1,029,244 Debt service: Principal - 2,205,000 2,205,000 Interest - 568,882 568,882 Capital outlay - 9,930,747 9,930,747 Total expenditures 32,770,997 23,405,135 56,176,132 Excess/(deficiency)of revenues over expenditures 5,670,823 5,293,797 10,964,620 OTHER FINANCING SOURCES(USES) Transfer in 193,091 7,928,000 8,121,091 Transfer out (2,925,787) (6,108,953) (9,034,740) Total other financing sources(uses) (2,732,696) 1,819,047 (913,649) Net change in fund balances 2,938,127 7,112,844 10,050,971 Fund balances-beginning of the year 27,981,597 70,136,440 98,118,037 Fund balances-end of year $ 30,919,724 $ 77,249,284 $ 108,169,008 The accompanying notes are an integral part of the basic financial statements. 52 CITY OF TIGARD,OREGON RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES GOVERNMENTAL FUNDS for the year ended June 30,2021 Net change in fund balances-Governmental Funds $ 10,050,971 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is depreciated over their estimated useful lives Expenditures for capital assets 8,452,271 Current year depreciation expense (5,742,483) Contributed capital 799,139 Loss on disposal of capital assets (2,385,630) 1,123,297 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds Change in deferred inflows of resources-property taxes (8,510) Change in franchise fees (2,075) Change in municipal court receivable (57,533) Change in grants receivable (281,550) Change in assessment liens (90,251) (439,919) Long-term debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of long-term debt is reported as an expenditure in the governmental funds, but a reduction of long-term liabilities in the Statement of Net Position. Principal payments 2,205,000 Amortization of premium on long-term debt 8,443 2,213,443 Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds: Change in accrued interest payable 16,778 Change in compensated absences (43,142) Pension expense (1,711,531) OPEB expense (33,041) (1,770,936) Internal service funds are used by management to charge the cost of administrative functions as well as fleet and property management to individual funds. The net revenue of internal service funds is reported with governmental activities. Change in Net Position - Internal Service Funds 2,521,488 Change in Net Position of Governmental Activities $ 13,698,344 The accompanying notes are an integral part of the basic financial statements. 53 CITY OF TIGARD,OREGON PROPRIETARY FUNDS STATEMENT OF NET POSITION June 30,2021 Business-type Activities- Governmental Enterprise Funds Activities- Sanitary Internal Sewer Stormwater Water Totals Service Funds ASSETS Current assets: Cash and cash equivalents $ 7,630,136 $ 8,821,292 $ 44,693,575 $ 61,145,003 $ 11,155,071 Accounts receivable 2,247,483 764,133 3,742,552 6,754,168 41,635 Prepaids - - - - 321,436 Property held for resale 185,021 260,021 - 445,042 - Inventory 2,778 2,778 287,742 293,298 4,400 Total current assets 10,065,418 9,848,224 48,723,869 68,637,511 11,522,542 Noncurrent assets: Restricted cash and cash equivalents - - 20,654,420 20,654,420 - Advances to other funds 102,320 - - 102,320 - Investment in joint venture - - 1,792,758 1,792,758 - Capital assets: Land and construction in process 1,367,062 2,146,357 14,054,373 17,567,792 - Other capital assets(net of accumulated depreciation) 17,798,352 12,930,679 186,842,877 217,571,908 - Total noncurrent assets 19,267,734 15,077,036 223,344,428 257,689,198 - Total assets 29,333,152 24,925,260 272,068,297 326,326,709 11,522,542 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to OPEB 2,206 3,150 3,991 9,347 42,904 Deferred outflows related to bond refunding - - 3,607,247 3,607,247 - Total deferred outflows 2,206 3,150 3,611,238 3,616,594 42,904 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 1,954,267 968,095 788,315 3,710,677 825,021 Unearned revenue - - 10,347 10,347 20,050 Deposits - - 12,075 12,075 175,742 Due to others - - - - 29,387 Accrued interest payable - - 1,600,195 1,600,195 - Accrued compensated absences 31,317 36,519 36,761 104,597 655,899 Current portion of note payable - - 117,022 117,022 - Current portion of bonds payable - - 3,433,449 3,433,449 - Current portion of revenue bonds payable - - - - Total current liabilities 1,985,584 1,004,614 5,998,164 8,988,362 1,706,099 Noncurrent liabilities: Accrued compensated absences 1,062 1,238 1,248 3,548 25,909 Note payable-long-term portion - - 1,355,001 1,355,001 - Bonds payable-long-term portion - - 122,484,052 122,484,052 - Total OPEB liability 25,218 36,018 45,632 106,868 490,547 Total noncurrent liabilities 26,280 37,256 123,885,933 123,949,469 516,456 Total liabilities 2,011,864 1,041,870 129,884,097 132,937,831 2,222,555 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to OPEB 8,527 12,179 15,430 36,136 165,876 NET POSITION Net investment in capital assets 19,165,414 15,077,036 69,900,481 104,142,931 - Restricted for capital projects - - 16,052,039 16,052,039 - Restricted for debt service - - 2,444,525 2,444,525 - Unrestricted 8,149,553 8,797,325 57,382,963 74,329,841 9,177,015 Total net position $ 27,314,967 $ 23,874,361 $ 145,780,008 $ 196,969,336 $ 9,177,015 The accompanying notes are an integral part of the basic financial statements. 54 CITY OF TIGARD,OREGON PROPRIETARY FUNDS STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET POSITION for the year ended June 30,2021 Business-type Activities- Governmental Enterprise Funds Activities- Sanitary Internal Sewer Stormwater Water Totals Service Funds OPERATING REVENUES Charges for services $ 3,348,846 $ 3,820,029 $ 24,836,173 $ 32,005,048 $ 20,041,179 Miscellaneous revenues 146,612 11,177 118,473 276,262 240,725 Total operating revenues 3,495,458 3,831,206 24,954,646 32,281,310 20,281,904 OPERATING EXPENSES Salaries and wages 527,808 811,698 1,216,954 2,556,460 11,293,100 Contracted services 31,706 492,800 2,463,610 2,988,116 2,566,109 General,administrative and other 1,971,498 2,135,290 6,096,037 10,202,825 6,126,238 Depreciation 892,448 715,146 5,296,843 6,904,437 - Total operating expenses 3,423,460 4,154,934 15,073,444 22,651,838 19,985,447 Operating income(loss) 71,998 (323,728) 9,881,202 9,629,472 296,457 NON-OPERATING REVENUES(EXPENSES) Interest earnings 63,849 69,561 463,000 596,410 74,577 Net increase(decrease)in investment fair value (26,275) (28,003) (234,551) (288,829) (28,416) Interest expense - - (3,259,825) (3,259,825) - Debt issuance cost - - (1,800,164) (1,800,164) - Intergovernmental revenue 15,871 26,207 42,142 84,220 344,989 Loss on sale of capital assets - (103,059) (933) (103,992) - Loss on investment in joint venture - - (32,454) (32,454) - Total non-operating revenue(expense) 53,445 (35,294) (4,822,785) (4,804,634) 391,150 Net income(loss)before contributions and transfers 125,443 (359,022) 5,058,417 4,824,838 687,607 System development revenue 126,567 75,877 2,054,999 2,257,443 - Capital contributions 186,489 253,440 140,995 580,924 - Transfers in 150,019 49,293 - 199,312 1,839,881 Transfers out (130,974) (285,745) (702,825) (1,119,544) (6,000) Change in net position 457,544 (266,157) 6,551,586 6,742,973 2,521,488 Net position--beginning of year 26,857,423 24,140,518 139,228,422 190,226,363 6,655,527 Net position--end of year $ 27,314,967 $ 23,874,361 $ 145,780,008 $ 196,969,336 $ 9,177,015 The accompanying notes are an integral part of the basic financial statements. 55 CITY OF TIGARD,OREGON PROPRIETARY FUNDS STATEMENT OF CASH FLOWS for the year ended June 30,2021 Business-type Activities- Governmental Enterprise Funds Activities- Sanitary Internal Sewer Stormwater Water Totals Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 14,377,912 $ 4,665,106 $ 24,278,977 $ 43,321,995 $ 19,198,790 Payments to suppliers (13,135,419) (2,879,856) (8,155,462) (24,170,737) (8,671,875) Payments to employees (525,404) (809,696) (1,235,768) (2,570,868) (11,120,470) Other receipts 146,612 11,177 118,473 276,262 244,876 Net cash provided(used)by operating activities 863,701 986,731 15,006,220 16,856,652 (348,679) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Intergovernmental revenue 15,871 26,207 42,142 84,220 344,989 Transfers to other funds (130,974) (285,745) (702,825) (1,119,544) (6,000) Transfers from other funds 150,019 - - 150,019 1,839,881 Net cash provided(used)by noncapital financing activities 34,916 (259,538) (660,683) (885,305) 2,178,870 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES System development revenue 126,567 75,877 2,054,999 2,257,443 - Principal payments - - (5,995,861) (5,995,861) - Interest payments - - (4,226,706) (4,226,706) - Bond issuance costs - - (1,800,164) (1,800,164) - Transfers in for capital assets 49,293 - 49,293 - Acquisition of capital assets (768,128) (1,106,149) (1,070,433) (2,944,710) - Net cash provided(used)by capital and related financing activities (641,561) (980,979) (11,038,165) (12,660,705) - CASH FLOWS FROM INVESTING ACTIVITIES Investment in joint venture - - (764,740) (764,740) - Interest earnings 37,574 41,558 228,449 307,581 46,161 Net cash provided(used)by investing activities 37,574 41,558 (536,291) (457,159) 46,161 Net increase(decrease)in cash and investments 294,630 (212,228) 2,771,081 2,853,483 1,876,352 Cash and investments--beginning of the year 7,335,506 9,033,520 62,576,914 78,945,940 9,278,719 Cash and investments--end of the year $ 7,630,136 $ 8,821,292 $ 65,347,995 $ 81,799,423 $ 11,155,071 RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income(loss) $ 71,998 $ (323,728) $ 9,881,202 $ 9,629,472 $ 296,457 Adjustments to reconcile operating income(loss) to net cash provided by operating activities: Cash flows reported in other categories: Depreciation expense 892,448 715,146 5,296,843 6,904,437 - Change in assets and liabilities: Receivables (238,950) (132,447) (556,546) (927,943) (14,498) Prepaid expenses - - - - (72,906) Inventory (1,789) (1,789) (20,837) (24,415) 1,299 Accounts payable and accrued liabilities 137,590 727,547 425,022 1,290,159 96,879 Customer deposits - - (650) (650) (828,540) Accrued compensated absences 839 (230) (21,641) (21,032) 142,215 OPEB liability 1,565 2,232 2,827 6,624 30,415 Net cash provided(used)by operating activities $ 863,701 $ 986,731 $ 15,006,220 $ 16,856,652 $ (348,679) Non-cash capital and related financing activities: Developer contributed sewer,stormwater and water lines $ 186,489 $ 253,440 $ 140,995 $ 580,924 $ - The accompanying notes are an integral part of the basic financial statements. 56 Fiduciary Fund This fund accounts for resources received and held by the city in a fiduciary capacity. Disbursements from this fund is made in accordance with the plan document agreement or the applicable Internal Revenue Code Section.The accrual basis of accounting is used to record transactions in the pension trust fund. Pension Trust Fund—this fund accounts for the city's retirement plan for employees. The retirement plan is a defined contribution plan 401(a). 57 58 CITY OF TIGARD,OREGON STATEMENT OF FIDUCIARY NET POSITION PENSION TRUST FUND June 30,2021 ASSETS Investments: Restricted stable value fund $ 13,873,100 Restricted corporate bonds 8,382,480 Restricted corporate stocks 17,579,833 Total assets 39,835,413 NET POSITION Restricted for pension benefits $ 39,835,413 The accompanying notes are an integral part of the basic financial statements. 59 CITY OF TIGARD,OREGON STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST FUND for the year ended June 30,2021 ADDITIONS Contributions-employer $ 2,775,406 Contributions-plan members 91,066 Investment income 8,478,947 Total additions 11,345,419 DEDUCTIONS Benefit payments and withdrawals 3,419,993 Administrative expenses 48,002 Total deductions 3,467,995 Change in net position 7,877,424 Net position of assets held in trust for pension benefits: Beginning of year 31,957,989 End of year $ 39,835,413 The accompanying notes are an integral part of the basic financial statements. 60 Notes to Basic Financial Statements 61 62 City of Tigard, Oregon Notes to Basic Financial Statements 1. Summary of Significant Accounting Policies Financial Reporting Entity The City of Tigard, Oregon under its Charter of 1961, is governed by an elected mayor and four council members who comprise the City Council. The City Council appoints a City Manager, who acts as the administrative head of government for the city. The accompanying financial statements present the city (primary government) and its component unit (the city's urban renewal agency), an entity for which the city is financially accountable. Financial accountability is defined as the appointment of a voting majority of the organization's governing board and where (1) the city is able to significantly influence the programs or services performed or provided by the organization or (2) the city is legally entitled to or can otherwise access the organization's resources. Blended component units, although legally separate entities, are, in substance, part of the city's operations. Component units may include organizations which are fiscally dependent on the city in that the city approves the budget, issues debt or levies taxes. The city has two blended component units included in this financial report. Blended Component Unit The Tigard Town Center Development Agency (TCDA), formerly the City Center Development Agency, oversees and administers the city's two urban renewal areas: the City Center Urban Renewal Area (CCURA) and the Tigard Triangle Urban Renewal Area (TTURA). Voters authorized the CCURA in 2006. The plan's duration is 20 years with maximum indebtedness of $22 million. In May 2021 the voters increased the duration to 29 years with a maximum indebtedness of $42.8 million. In May 2017 the voters approved the creation of a second urban renewal area,the TTURA,for 35 years with maximum indebtedness of$188 million. The TTURA and the CCURA were created under the provisions of the Oregon Revised Statutes, Chapter 457. The City of Tigard Council members serve as the TCDA's governing body. The activities of the TCDA are included in the city's financial statements as a blended component unit.The CCURA and the TTURA are part of a legally separate entity,which is governed by a board comprised of the City Council members, as stipulated in the Tigard Municipal Code. The Council has the ability to impose its will on the TCDA as determined based on budget adoption, taxing authority, and funding. The purpose of the TCDA is to undertake urban renewal projects and activities pursuant to the city's adopted urban renewal plans. The financial results of the TCDA are reported herein as debt service and capital project funds.The TCDA prepared a separate component unit financial report, which is published on the city's website www.tigard-or.gov or a copy can be obtained from the city's administrative offices at 13125 SW Hall Blvd, Tigard, Oregon 97223. 63 City of Tigard, Oregon Notes to Basic Financial Statements The city administers a single employer defined contribution plan (the Pension Plan) covering only city employees who are not eligible to participate in OPERS. Named fiduciaries on the Pension Plan are certain city management employees and the plan is fiscally dependent upon the city's contributions. As a result, the Pension Plan is reported as a fiduciary fund in the city's financial statements. Joint Venture The city has an ownership position in the Willamette Intake Facility (WIF) for the treatment and distribution of water from the Willamette River. The WIF is a joint venture of the city and the Tualatin Valley Water District and the cities of Wilsonville, Sherwood, Hillsboro and Beaverton. The financial statements of the WIF may be obtained from Tualatin Valley Water District, Finance Department, 1850 SW 170th Avenue, Beaverton, OR 97003. For more information on the WIF joint venture see note 14. Lake Oswego/Tigard Water Partnership The city has entered into an intergovernmental agreement (IGA) with the City of Lake Oswego for the Lake Oswego/Tigard Water Partnership (Partnership). The Partnership created a reliable water system to deliver high-quality drinking water to the City of Tigard and the City of Lake Oswego. The new water system replaced aging, vulnerable, at-capacity infrastructure with a cutting-edge system designed to the highest seismic resiliency standards. For more information on the Partnership see note 15. Basic Financial Statements Basic financial statements are presented at both the government-wide and fund financial level. Both levels of statements categorize activities as either governmental or business-type. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities,which rely to a significant extent on fees and charges for support. Government-wide financial statements display information on all of the non-fiduciary activities of the city. For the most part, the effect of interfund activity has been removed from these statements. These statements focus on the sustainability of the city as an entity and the change in aggregate financial position resulting from the activities of the fiscal year. These aggregated statements consist of the Statement of Net Position and the Statement of Activities. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. 64 City of Tigard, Oregon Notes to Basic Financial Statements Indirect expenses are recovered through internal service fund charges. These indirect expenses are allocated based on a full-cost approach,thereby allocating indirect expenses among functions with the objective of allocating all expenses.Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and the pension trust fund, even though the pension trust fund is excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Fund financial statements display information at the individual fund level. Each fund is considered to be a separate accounting entity. Funds are classified and summarized as governmental, proprietary, or fiduciary. Currently, the city has governmental, proprietary, and fiduciary fund types. Nonmajor funds are combined into a single column in the basic financial statements and are detailed in the supplementary information. Basis of Presentation The financial transactions of the city are recorded in individual funds. Each fund is accounted for by providing a separate set of self-balancing accounts that comprises its assets,deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures/expenses. Professional standards set forth minimum criteria (percentage of the assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues or expenditures/expenses or either fund category or the governmental and enterprise combined) for the determination of major funds. The city may also elect to add major funds that city officials believe are particularly useful to financial statement users. The city has elected to report the enterprise funds as major funds in the current financial statements. Nonmajor funds are combined in a column in the fund financial statements and detailed as supplementary information in the financial report. Measurement Focus and Basis of Accounting Measurement focus is a term used to describe which transactions are recorded within the various financial statements. Basis of accounting refers to when transactions are recorded. The financial statements of the city have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). GAAP statements include all relevant GASB pronouncements. The city applies the provisions of all applicable GASB statements that define requirements and the reporting model for the annual financial reports of state and local governments. The city has recorded capital and certain other long-term assets and liabilities in the Statement of Net Position, reported all revenues and the cost of providing services under the 65 City of Tigard, Oregon Notes to Basic Financial Statements accrual basis of accounting in the Statement of Activities, and uses the direct method of reporting cash flows. The government-wide, proprietary fund and fiduciary fund financial statements are presented on a full accrual basis of accounting with an economic resource measurement focus.An economic resource focus concentrates on an entity or fund's net position. All transactions and events that affect the total economic resources (net position) during the period are reported. An economic resources measurement focus is inextricably connected with full-accrual accounting. Under the full accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of related cash inflows and outflows. Governmental funds financial statements are presented on a modified accrual basis of accounting with a current financial resource measurement focus. This measurement focus concentrates on the fund's resources available for spending currently or in the near future. Only transactions and events affecting the fund's current financial resources during the period are reported. Similar to the connection between an economic resource measurement focus and full accrual accounting, a current financial resource measurement focus is inseparable from a modified accrual basis of accounting. Under modified accrual accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the city considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. Property taxes, intergovernmental revenues and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered susceptible to accrual as revenue of the current period. All other revenues are considered to be measurable and available only when cash is received by the city. A deferred inflow of resources, shown as unavailable revenue, arises in the governmental funds balance sheet when potential revenue does not meet both the measurable and available criteria for recognition in the current year. This unavailable revenue consists primarily of uncollected property taxes and assessments not deemed available to finance operation of the current period. In the government-wide Statement of Activities, with a full accrual basis of accounting, revenue must be recognized as soon as it is earned regardless of its availability. Thus, the liability created on the governmental fund balance sheet for unavailable revenue is eliminated. 66 City of Tigard, Oregon Notes to Basic Financial Statements Similar to the way revenues are recorded, governmental funds only record those expenditures that affect current financial resources. Principal and interest on general long-term debt is recorded as a fund liability only when due, or to the extent that it is expected to be liquidated with expendable financial resources. However, in the government-wide financial statements with full accrual basis of accounting, all expenditures affecting the economic resource status of the government must be recognized. Thus, the expense and related accrued liability for long-term portions of debt, interest, other postemployment benefits and compensated absences must be included. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government-wide statements' governmental column, a reconciliation is necessary to explain the adjustments needed to transform the fund-based financial statements into the governmental column of the government-wide presentation. This reconciliation is part of the basic financial statements. Interfund activity consists of transfers,services provided and/or used, reimbursements,advances and loans. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between enterprise and various other city functions. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services, and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the city's Sanitary Sewer, Stormwater, and Water Funds are charges to customers for sales and services. The Sanitary Sewer, Stormwater, and Water Funds recognize fees intended to recover the cost of connecting new customers to the city's utility systems as non-operating revenues. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and overheads, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The fiduciary fund accounts for the resources held by the city in a custodial capacity, on behalf of the employees of the city. 67 City of Tigard, Oregon Notes to Basic Financial Statements New Accounting Pronouncements and Accounting Standards During the fiscal year ended June 30, 2021, the city implemented the following GASB pronouncements: GASB Statement No. 84, Fiduciary Activities Issued January 2017, this statement establishes criteria for identifying fiduciary activities of all state and local governments.This statement is effective for the city for the fiscal year ended June 30, 2021. Management has determined that there is no impact to the city's current financial accounting and reporting for the types of transactions identified in this statement. GASB Statement No. 90, Majority Equity Interests Issued August 2018, the primary objective of this statement is to improve the consistency and comparability of reporting a government's majority equity interest in a legally separate organization; and to improve the relevance of financial statement information for certain component units. This statement is effective for the city for the fiscal year ended June 30, 2021. Management has determined that there is no impact to the city's current financial accounting and reporting for the types of transactions identified in this statement. The following pronouncements have been issued by the Governmental Accounting Standards Board (GASB) but not yet implemented by the city: GASB Statement No. 87, Leases This Statement was issued June 2017 to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments and increases the usefulness of governments' financial statements. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources,thereby enhancing the relevance and consistency of information about governments' leasing activities. GASB Statement No. 87 will be effective for the city for fiscal year ending June 30, 2022. GASB Statement No. 91, Conduit Debt Obligations This statement was issued May 2019, this Statement establishes accounting requirements for conduit debt obligations by issuers. The objectives of this Statement are to eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. GASB Statement No. 91 will be effective for the city for the fiscal year ending June 30, 2023. 68 City of Tigard, Oregon Notes to Basic Financial Statements GASB Statement No. 92, Omnibus 2020 This statement was issued January 2020, this Statement enhances comparability and financial reporting to improve the consistency of authoritative literature to address practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics including issues related to leases implementation, derivative instruments, postemployment benefits (pensions and other postemployment benefits [OPEB]), asset retirement obligations, risk pool and fair value measurements. Specifically, this Statement addresses the following topics: • The effective date of Statement No. 87, Leases, and Implementation Guide No 2019-3, Leases, for interim financial reports • Reporting of intra-entity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit other postemployment benefit (OPEB) plan • The applicability of Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, to reporting assets accumulated for postemployment benefits • The applicability of certain requirements of Statement No. 84, Fiduciary Activities, to postemployment benefit arrangements • Measurement of Liabilities (and assets, if any) related to asset retirement obligations (AROs) in a government acquisition • Reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers • Reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature • Terminology used to refer to derivative instruments GASB Statement No. 92 will be effective for the city for the fiscal year ending June 30, 2022. GASB Statement No. 93, Replacement of Interbank Offered Rates(IBOR) This Statement was issued March 2020 to address accounting and financial reporting implications that result from the replacement of an IBOR. This Statement is: • Providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced as the reference rate of the hedging derivative instrument's variable payment • Clarifying the hedge accounting termination provisions when a hedged item is amended to replace the reference rate • Clarifying that the uncertainty related to the continued availability of IBORs does not, by itself, affect the assessment of whether the occurrence of a hedged expected transaction is probable 69 City of Tigard, Oregon Notes to Basic Financial Statements • Removing the London Interbank Offered Rate (LIBOR) as an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap • Identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap • Clarifying the definition of reference rate, as it is used in Statement 53, as amended • Providing an exception to the lease modifications guidance in Statement 87, as amended, for certain lease contracts that are amended solely to replace an IBOR as the rate upon which variable payments depend GASB Statement No. 93 will be effective for the city for the fiscal year ending June 30, 2022. GASB Statement No. 94, Public-Private and Public-Public Partnership and Availability Payment Arrangements This Statement was issued March 2020 to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). It also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). GASB Statement No. 94 will be effective for the city for the fiscal year ending June 30, 2023. GASB Statement No. 96,Subscription-Based Information Technology Arrangements (SBITAs) This statement was issued May 2020 to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements for government end users (governments). This statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset - an intangible assets - and a corresponding subscription liability; (3) provides the capitalization criteria for outlaw other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. GASB Statement No. 96 will be effective for the City for the fiscal year ending June 30, 2023. GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - an amendment of GASB Statement No. 14 and No. 84, and a supersession of GASB Statement No. 32 This Statement was issued June 2020. The primary objectives are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans(other employee benefit plans)as fiduciary component unit in fiduciary fund financial statement; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans)that meets the definition of a pension plan and for benefits provided through 70 City of Tigard, Oregon Notes to Basic Financial Statements those plans. GASB Statement No. 97 will be effective for the city for the fiscal year ending June 30, 2022. The city will implement new GASB pronouncements no later than the required effective date. The city is currently evaluating whether or not the above listed new GASB pronouncements will have a significant impact to the city's financial statements. Assets, Deferred Outflows/Inflows of Resources, Liabilities, and Net Position/Fund Balance Cash and Investments Cash and cash equivalents are generally considered short-term, highly liquid investments with a maturity of three months or less from the purchase date. The city's cash and cash equivalents consists of cash on hand, demand deposits and cash deposits that are held in an investment pool, Local Government Investment Pool, that has the general characteristic of a demand deposit account (deposits of additional cash may be made at any time and cash may be withdrawn at any time without prior notice or penalty). Interest earned on cash and cash equivalents is allocated monthly based on each fund's average cash balance as a proportion of the city's total. For purposes of the statement of cash flows, the city considers the proprietary funds' cash and cash equivalents to be cash on hand, demand deposits and cash deposits that are held in an investment pool with original maturities of three months or less. Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. Interest earned on investments is allocated monthly based on each fund's average cash balance as a proportion of the city's total cash and investments. The city reports cash with fiscal agent and certain cash and investments as restricted because their use is limited by parties external to the city. Restrictions may be from bond proceeds, imposed by creditors, other governments, laws and/or enabling legislation. When both restricted and unrestricted resources are available for use, it is the city's policy to use restricted resources first, then unrestricted resources as they are needed. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as "Advances to/Advances from other funds". Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." 71 City of Tigard, Oregon Notes to Basic Financial Statements Property taxes are levied and become a lien on July 1. Collection dates are November 15, February 15, and May 15 following the lien date. Discounts are allowed if the amount due is received by November 15 or February 15. Taxes unpaid and outstanding on May 16 are considered delinquent. The city also has receivables outstanding for assessments on private property.These assessments include street and sidewalk improvements, sewer line installations and deferral of certain impact fees (system development charges). Proprietary fund receivables are recorded as revenue when earned, including services earned but not billed. The receivables of proprietary funds include billing for residential and commercial customers utilizing the city's water, sanitary sewer and stormwater management services. The city's receivables, including property taxes,assessments and proprietary fund receivables are deemed to be substantially collectible. Tax and assessments receivable can be recovered through foreclosure on the subject property. Services can be disconnected if proprietary fund receivables remain unpaid. Accordingly, no allowance for doubtful accounts is deemed necessary for these receivables. The city records a receivable and related allowance for municipal court accounts receivable. Accounts payable to vendors and contractors include general accounts payable, retainage payable, deposits payable and other accrued liabilities not included in short-term or long-term liabilities. Inventories and Prepaids Inventories of parts, materials and supplies are stated at cost on the first-in,first-out basis, in the proprietary funds. The consumption method is used in accounting for inventory for all funds on the budgetary basis.The consumption method is used for the government-wide presentation as well as the proprietary funds and business-type activities. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaids in both government-wide and fund financial statements using the consumption method. Payments classified as prepaid are primarily items that are being amortized such as prepaid insurance. Property Held for Resale Property held for resale is recorded as an asset and includes land and building inventory stated at the lower of cost or market. At year-end no reductions in value were necessary, therefore recorded amounts were equal to original cost. 72 City of Tigard, Oregon Notes to Basic Financial Statements Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, pathways, streetlights, etc.) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements, and in the proprietary fund statements. Capital assets are charged to expenditures as purchased or constructed in the governmental fund statements and capitalized in the proprietary fund statements. Capital assets are recorded at historical cost or estimated historical cost. Donated assets, donated works of art and similar items,and capital assets received in a service concession arrangement are recorded at acquisition value. Capital assets are defined by the city as assets with an initial, individual cost of $5,000 or more, and an estimated useful life of greater than one year. Additions or improvements and other capital outlays that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are capitalized. Other costs for repairs and maintenance are expensed as incurred. Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with accumulated depreciation reflected in the Statement of Net Position and is provided on the straight-line basis over the following estimated useful lives: Asset Years Buildings and improvements 25-40 Improvements other than buildings 10-20 Machinery and equipment 5-10 Autos and trucks 5-10 Infrastructure 20-40 Deposits In general deposits represent developer funds collected by the city, primarily when issuing permits for new construction and infrastructure development. Various funds report deposits, including the General Fund, Gas Tax Fund, Electrical Inspection Fund, Building Fund, Urban Forestry Fund, Stormwater Fund, Water Fund, and Urban Renewal Agency Capital Improvement Fund. Deposits are held by the city until the obligations for the projects have been completed or forfeited for non-compliance with development requirements as determined by city inspection staff. 73 City of Tigard, Oregon Notes to Basic Financial Statements Unearned Revenues Unearned revenues will be recognized as revenue in the fiscal year they are earned in accordance with the accrual basis of accounting. Revenue is considered earned when all eligibility criteria are met, and the amount is measurable. Deferred Outflows/Inflows of Resources Deferred outflows of resources represent a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. Deferred outflows of resources follow assets on the Statement of Net Position. Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. In the Statement of Net Position,this includes resources that are received before the city has met eligibility requirements related to time. In the governmental fund financial statements, deferred inflows of resources include revenues that are measurable but not available. For purposes of measuring the net pension (asset) liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Oregon Public Employees Retirement System (OPERS) and additions to/deductions from OPERS's fiduciary net position have been determined on the same basis as they are reported by OPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Accrued Compensated Absences It is the city's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave, since the city does not have a policy to pay any amounts when employees separate from the city.Vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only when it has matured, for example, as result of employee resignations or retirements. Long-Term Debt In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type in the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are treated as period costs in the year of issue. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources while premiums and discounts on debt issuances 74 City of Tigard, Oregon Notes to Basic Financial Statements are reported as other financing sources and uses, respectively. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Other Post-Employment Benefits (OPEB) The city's total OPEB liability is recognized as a long-term liability in the government-wide financial statements, the amount of which is actuarially determined. Net Pension Liability The city reports its proportionate share of the Net Pension Liability of the Oregon Public Employees Retirement System (OPERS). A negative Net Pension Liability is reported as a Net Pension Asset. The net pension asset/liability is measured as the portion of the present value of projected benefits payment to be provided through the pension plan to current active and inactive qualifying employees that is attributed to those employees past periods of service less the amount of the pension plan's fiduciary net position. Contributions Capital contributions from developers are credited to contribution revenue and the related capital assets are recorded in the government-wide financial statements. Fund Balances and Net Position In the fund financial statements, the fund balance for governmental funds is reported in a hierarchy of classifications based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The city reports fund balances in the following categories: Nonspendable for resources that cannot be spent because they are either in a nonspendable form or legally or contractually required to be maintained intact. Resources in nonspendable form include inventories, prepaids, deposits, advances from internal loans and property assets held for resale. Restricted for amounts with constraints placed on the use of resources are either (1) externally imposed by creditors (such as through debt covenants), grantors, contributors, laws or regulations of other governments; or (2) imposed by law through constitutional provisions or enabling legislation. Committed for amounts that City Council passes an ordinance or council resolution, a formal action made by the entity's highest level of decision-making authority, which places specific constraints on how the resources may be used. Resolutions and ordinances are considered equally binding in that the City Council can modify or rescind the ordinance or resolution at any time through passage of an additional ordinance or resolution. 75 City of Tigard, Oregon Notes to Basic Financial Statements Assigned for resources that are constrained by the government's intent to use them for a specific purpose, but are neither restricted nor committed, are reported as assigned fund balance. The City Council expresses their intent to use a resource for a specific purpose by including that resource in the adopted annual budget for funds outside of the General Fund. Assigned fund balances are not reported in the General Fund as the city has not established a policy regarding the assignment of funds. Unassigned fund balance is the residual classification for the General Fund.This classification represents fund balance that is not assigned, committed, restricted or nonspendable within the General Fund. This classification is also used to report any deficit fund balance amounts in other governmental funds. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available,the city considers restricted amounts to have been spent. Likewise,when an expenditure is incurred for purposes for which either committed or assigned fund balance is available, the city considers committed or assigned amounts to have been spent. Net Position On the government-wide Statement of Net Position, the proprietary funds' Statement of Net Position, and the fiduciary funds' Statement of Fiduciary Net Position, net position is segregated into restricted and unrestricted balances. Restrictions are limitations on how the net position may be used. Restrictions may be placed on net position by an external party that provided the resources, by enabling legislation or by the nature of the asset. The net investment in capital assets component of net position represents total capital assets less accumulated depreciation, less debt directly related to capital assets. This amount is reported on the Statement of Net Position and in the financial statements for Proprietary Fund types. Use of Estimates In preparing the city's financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements,and the reported amounts of revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates. Fund Types The city's financial operations are accounted for in the following funds: Governmental funds Governmental funds finance most governmental functions of the city. The acquisition, use and balances of the city's expendable financial resources and the related liabilities, excluding those 76 City of Tigard, Oregon Notes to Basic Financial Statements accounted for in proprietary funds, are accounted for through governmental funds. The measurement focus is upon determination of changes in current financial resources, rather than upon net position determination. The following is the city's major governmental fund: General Fund - This fund accounts for the city's general operations. It is used to account for all transactions not specifically required to be accounted for in the city's other funds. Proprietary funds Proprietary funds are used to account for the acquisition, operation and maintenance of sewer, storm drainage, and water systems in the city. These funds are entirely or predominantly self- supported through user charges to customers. The measurement focus is upon net income determination, rather than upon determination of changes in current financial resources. The following enterprise funds are the city's major proprietary funds: Enterprise funds: Sanitary Sewer Fund -This fund accounts for the city's sewer utility operations. Stormwater Fund — This fund accounts for the city's storm drainage operations which consists of the following two budgetary funds: Stormwater Fund and Water Quality/Quantity Fund. Water Fund - This fund accounts for the city's water operations which consists of the following four budgetary funds: Water Fund, Water SDC Fund, Water CIP Fund and Water Debt Service Fund. Additionally, the city reports the following fund types: Nonmajor governmental funds: Special Revenue funds account for restricted or committed revenues for specific purposes. Debt Service funds account for the accumulation of resources to pay principal and interest on the city's long-term obligations. Capital Projects funds account for the accumulation of resources for construction or acquisition of facilities and equipment. Internal service funds Internal service funds account for goods and services provided by one city department to another on a cost reimbursement basis. The internal service funds account for the activities of health insurance for employees, liability insurance, workers' compensation insurance, facilities and fleet and support and administrative services. 77 City of Tigard, Oregon Notes to Basic Financial Statements Fiduciary Fund Fiduciary funds focus on net position and changes in net position. The city's fiduciary fund is the defined contribution pension plan for the benefit of employees. 2. Stewardship, Compliance and Accountability Budgetary information A budget is prepared for each fund, except for the Pension Trust Fund, under the modified accrual basis of accounting used by governmental funds, which is in accordance with the legal requirements of Oregon local budget law. The resolution authorizing appropriations sets the maximum level of expenditures for each fund and may not legally be over expended. Appropriations lapse at the end of each fiscal year. Appropriations are made at the major program level for each fund, for example, Community Services, Public Works, Community Development, Policy and Administration, Debt Service, Capital Improvements and Contingency. The detail budget document is required to contain more detailed information for the above-mentioned expenditure categories. After budget approval, the City Council may approve supplemental budgeted appropriations if an occurrence, condition, or need exists which had not been ascertained at the time the budget was adopted. A supplemental budget may require hearings before the public, publications in newspapers and approval by the City Council. Original and supplemental budgets may be modified by the use of appropriations transfers between the levels of control. Such transfers require approval by the City Council. Management may not amend the budget without council approval.The City Council approved four supplemental budgets throughout the fiscal year. Oregon state law requires disclosure of fund expenditures in excess of budgeted appropriations. However, local budget law exempts reporting of over appropriations for a variety of situations related to the issuance, repayment and refunding of bonds as defined in ORS 294.338(3-5).This includes bonds issued under revenue bond authority as defined in ORS 287A.360 to 287A.380. Additionally, any outstanding obligation related to an approved bond redemption, in a prior adopted budget period as defined in ORS 294.338(3)(B)(iii) is also exempt. For GAAP presentation, the transfers from non-operating funds for services provided by the internal service funds and the General Fund are considered revenues and expenses/expenditures, as appropriate, but may be considered to be interfund transfers for budgetary purposes. Expenditures in Excess of Appropriations and Deficit Fund Balance Oregon state law requires disclosure of fund expenditures in excess of budgeted appropriations. For the year-ended June 30, 2021, expenditures exceeded appropriations in the Sanitary Sewer fund by $254,379 and in the Tigard Triangle debt service fund by $5,040. The Sanitary Sewer 78 City of Tigard, Oregon Notes to Basic Financial Statements fund over expenditure was due to a franchise fee payments to the general fund and the Tigard Triangle over expenditure was due to the interest payable not being sufficiently budgeted. The over expenditures were covered by charges for services and interest earnings for the year. The Tigard Triangle Capital Improvements fund reported a deficit fund balance $122,328 on a GAAP basis as June 30, 2021. This deficit is due to internal loans from the General Fund that have been spent on activities in the triangle urban renewal area. The loans or advances are repaid over time with future revenues from tax increment collections. For additional details on advances and interfund transactions see Note 7. 3. Cash and Investments The city maintains a cash and investment pool that is available for use by all funds except the Pension Trust Fund. Each fund type's portion of this pool is displayed on the combined balance sheet as "cash and investments". Unrestricted and restricted cash and investments for the primary government are reported in governmental and business-type activities. Restricted balances reported in cash and investments are restricted by legal or contractual requirements. Restricted investments reported in fiduciary activities represent the Pension Trust Fund. These investments are for the city's defined contribution plan and held separately from city funds and managed by a third party. Cash and investments, restricted and unrestricted, at June 30, 2021: Primary Fiduciary Type Government Activities Total Deposits with financial institutions $ 8,971,028 $ - $ 8,971,028 Money markets 6,146,817 - 6,146,817 Cash deposits 15,117,845 - 15,117,845 Cash with fiscal agent 308,230 - 308,230 Petty cash/cash on hand 9,671 - 9,671 Total cash 15,435,746 - 15,435,746 State Investment Pool (LGIP) 175,782,247 - 175,782,247 Asset allocation/stable value fund - 13,873,100 13,873,100 Corporate bonds 14,291,940 8,382,480 22,674,420 Corporate stocks - 17,579,833 17,579,833 Total investments 190,074,187 39,835,413 229,909,600 Total cash and investments $ 205,509,933 $ 39,835,413 $245,345,346 79 City of Tigard, Oregon Notes to Basic Financial Statements Governmental Business Type Fiduciary Total Activities Activities Activities Cash and investments $ 47,205,548 $ 61,145,003 $ - $ 108,350,551 Restricted cash and investments 76,504,962 20,654,420 39,835,413 136,994,795 Total cash and investments $ 123,710,510 $ 81,799,423 $ 39,835,413 $ 245,345,346 Deposits Custodial Credit Risk. There is a risk that, in the event of a bank failure, the city's deposits may not be returned. The city's deposit policy is in accordance with Oregon Revised Statutes (ORS) 295. Cash with financial institutions include bank demand deposits and bank money market accounts.The combined total book balance at June 30, 2021 was$15,117,845 and the total bank balance is $14,952,149. Of these deposits, $500,000 was covered by federal depository insurance and $14,452,149 was collateralized in accordance with ORS 295. The Federal Depository Insurance Corporation (FDIC) provides deposit insurance up to $250,000 for each institution. Institutions with deposits in excess of FDIC coverage participate in the Oregon Public Funds Collateralization Program (PFCP) as defined in Oregon Revised Statutes (ORS) 295. This provides additional protection for public funds in the event of a bank failure, although it does not guarantee 100 percent protection. The Office of the State Treasurer categorizes the financial institutions in Oregon. Based on that categorization, banks must pledge collateral valued at between 10 percent and 110 percent of their public fund deposits. In the event of a bank failure, the entire pool of collateral pledged by all qualified Oregon public funds bank depositories is available to repay deposits of public funds of government entities. The Office of the State Treasurer maintains a list of qualified financial institutions for the deposit of public funds in excess of FDIC insurance. The financial institutions holding city deposits are noted on the State Treasurer's qualified list. In addition, the city's policy states bank deposits of any one qualified financial institution shall not exceed 1 percent of the institution's total assets. The city is in compliance with this policy at year-end. Investments For an investment, this is the risk that, in the event of failure of the counterparty, the city will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.All of the city's investments, except for the State of Oregon Local Government Investment Pool (LGIP), are held in safekeeping by the financial institution in the city's name. The city's investment policy, which adheres to State of Oregon law, states bank deposits with any one qualified institution shall not exceed 20 percent of the portfolio. State statutes authorize the city to invest primarily in general obligations of the U.S.government and its agencies, certain bonded obligations of Oregon municipalities, bank repurchase 80 City of Tigard, Oregon Notes to Basic Financial Statements agreements, bankers'acceptances,certain commercial paper and corporate bonds and the LGIP. Annually, the city adopts an investment policy in connection with the budget process. The LGIP is administered by the Oregon State Treasury. The LGIP is an open-ended no-load diversified portfolio offered to any agency, political subdivision or public corporation of the State who by law is made the custodian of, or has control of, any fund. The LGIP is commingled with the State's short-term funds. In seeking to best serve local governments of Oregon, the Oregon Legislature established the Oregon Short-Term Fund Board, which is not registered with the U.S. Securities and Exchange Commission as an investment company. The fair value of the city's position is the same as the value of the city's pool shares. The purpose of the Board is to advise the Oregon State Treasury in the management and investment of the LGIP. The Oregon Audits Division of the Secretary of State's Office audits the LGIP annually. At June 30, 2021, the city's fair value in the LGIP was $175,782,247. Financial statement for the Oregon Short-Term Fund can be found on line at: http://www.oregon.gov/treasury/Divisions/Investment/Pages/Oregon-Short-Term-Fund- (OSTF).aspx In accordance with the implementation of GASB Statement No. 72, Fair Value Measurement and Application, the city categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows: Level 1 - unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access. Level 2 - other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, loss severities, credit risks and default rates) or other market-corroborated inputs). Level 3 - unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including each Fund's own assumptions used in determining the fair value of investments). The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. 81 City of Tigard, Oregon Notes to Basic Financial Statements The categorization of a value determined for investments is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities. The city has the following investments and recurring fair value measurements as ofJune 30,2021: Fair Value Fair Value Measurement Primary Government Amortized Cost Not Local Government Investment Pool (LGIP) $ 175,782,247 Measured at Fair Value Corporate Bonds 14,291,940 Level 2 Total Primary Government investments 190,074,187 Fiduciary Activities Asset allocation/stable value fund 13,873,100 Level 2 Corporate bonds 8,382,480 Level 2 Corporate stocks 17,579,833 Level 1 Total Fiduciary Activities investments 39,835,413 Total Investments $ 229,909,600 The LGIP includes investments in external investment pools and does not meet the requirements for "leveling" disclosures as established in GASB Statement No. 72. Therefore, fair value of the LGIP is determined by the pool's underlying portfolio. The city's Pension Trust Fund accounts for the defined contribution pension plan for eligible employees.The employees direct the investment options within the plan. Funds invested in the plan are for the sole benefit of the employee and therefore restricted. At June 30, 2021 the total restricted investments in the pension plan were $39,835,413. The value of the pension plan's investments at year-end are measured at fair value by a third-party custodian based on the net asset value of the individual mutual funds. Interest rate risk. Interest rate risk is the risk that the value of a debt security may fall when interest rates rise. In general, the market price of debt securities with longer maturities will go up or down in response to changes in interest rates more than the market price of shorter-term securities. Additionally, securities issued or guaranteed by the U.S. Government, its agencies, instrumentalities and sponsored enterprises have historically involved little risk of loss of principal if held to maturity. However, due to fluctuations in interest rates, the market value of such securities may vary prior to maturity. In accordance with its investment policy, the city manages its exposure to declines in fair value by limiting the individual maturities in its investment portfolio to eighteen months or less. The city's investment policy states that at least 30 percent of the portfolio can have maturities less than ninety days and up to 20 percent of the portfolio can have maturities from eighteen months to thirty-six months. Per the policy, no investments will be made for a period to exceed thirty- 82 City of Tigard, Oregon Notes to Basic Financial Statements six months. The city does not actively trade investments, usually holding them to maturity. The city was in compliance with its policy at year-end. At June 30, 2021, the city had the following investments and maturities at fair value: Weighted Average Maturity Risk (in Investment Type Fair Value Concentration months) Primary Government Local Government Investment Pool (LGIP) * $ 175,782,247 76.6% < 1 Corporate Bonds 14,291,940 6.2% 1.28 Total Primary Government investments 190,074,187 82.8% Fiduciary Activities Asset allocation/stable value fund 13,873,100 6.0% N/A Corporate bonds 8,382,480 3.6% ** Corporate stocks 17,579,833 7.6% N/A Total Fiduciary Activities investments 39,835,413 17.2% Total Investments $ 229,909,600 100.0% Portfolio weighted average maturity 1.32 * LGIP is considered an investment per the city's investment policy. For financial reporting, LGIP is considered cash and cash equivalents due to the liquid nature of the accounts. ** Maturity information not available for Fiduciary Activities. Concentration of credit risk: Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The city's policy for investing in individual issuers varies depending on the type of investments. Following are maximum instrument diversification per city policy.At year-end the city was in compliance with this policy. • U.S. Agency securities are restricted to no more than 90 percent. • Certificates of deposit are restricted to no more than 25 percent. • Corporate bonds are restricted to no more than 35 percent. In addition, investments in corporate bonds of any one issuer may not exceed 5 percent of the investment portfolio. Credit risk:The city's policy, which adheres to State of Oregon law, is to limit its Corporate and Municipal investments to the following: Issuers within Oregon must be rated "A" (bonds) or A- 2 / P-2 (commercial paper) or better by Standard and Poor's, Moody's Investors Service or any 83 City of Tigard, Oregon Notes to Basic Financial Statements other nationally recognized statistical rating organization. Issuers not in Oregon must be rated AA/Aa (bonds) or A-1/ P-1 (commercial paper) or better. At June 30, 2021 the city's investments were rated as follows: % of Fair Investment Type Moody's S & P Fitch Fair Value Value Primary Government State Investment Pool (LGIP) N/R N/R N/R $ 175,782,247 76.6% Corporate Bonds A2 N/R N/R 5,109,800 2.2% Corporate Bonds A2 N/R N/R 4,086,640 1.8% Corporate Bonds Al A+ N/R 5,095,500 2.2% Total Primary Government investments 190,074,187 82.8% Fiduciary Activities Asset allocation/stable value fund 13,873,100 6.0% Corporate bonds 8,382,480 3.6% Corporate stocks 17,579,833 7.6% Total Fiduciary Activities investments 39,835,413 17.2% Total Investments $ 229,909,600 100.0% Rating agency information not available for Fiduciary Activities. 84 City of Tigard, Oregon Notes to Basic Financial Statements 4. Accounts Receivable Accounts receivable as of June 30, 2021 for the city's individual major fund, nonmajor and internal service funds in the aggregate, including the applicable allowances for uncollectible accounts are noted below: Allowance Gross for Doubtful Receivables, Accounts Taxes Assessments Receivables Accounts Net Governmental Activities General $ 6,002,328 $ 283,860 $ - $ 6,286,188 $ (2,361,246) $ 3,924,942 Nonmajor governmental 2,592,719 66,056 126,502 2,785,277 - 2,785,277 Internal service 41,635 - - 41,635 - 41,635 $ 8,636,682 $ 349,916 $ 126,502 $ 9,113,100 $ (2,361,246) $ 6,751,854 Business-Type Activities Sanitary sewer $ 2,247,483 $ - $ - $ 2,247,483 $ - $ 2,247,483 Stormwater 764,133 - - 764,133 - 764,133 Water 3,742,552 - - 3,742,552 - 3,742,552 $ 6,754,168 $ - $ - $ 6,754,168 $ - $ 6,754,168 Total receivables $ 13,506,022 Shown on the Statement of Net Positions as: Accounts receivable, net $ 13,029,604 Property taxes receivable 349,916 Assessment liens receivable 126,502 $ 13,506,022 Under State of Oregon statutes, municipal court receivables are valid for ten years and are then renewable for another ten years. According to city policy, these receivables are turned over to an external collection agency after approximately 180 days. Historical collection percentages average about 25 percent. Accordingly, at June 30, 2021, $3,148,326 was outstanding for municipal court receivables with a related allowance for doubtful accounts of$2,361,246. Assessment liens receivable represent the uncollected amounts levied against benefited property for the cost of local capital improvements. Because the assessments are liens against the benefited property, an allowance for uncollectible amounts is not deemed necessary. Substantially all assessments are payable over a period of 10 to 20 years. Assessments bear interest from 5.2 to 9.4 percent. At June 30, 2021, the portion of the assessments receivable balance that represents delinquent accounts is insignificant. 85 City of Tigard, Oregon Notes to Basic Financial Statements 5. Capital Assets Capital asset activity for governmental activities for the year ended June 30, 2021 was as follows: Balances Balances Governmental activities June 30,2020 Additions Deletions Transfers June 30,2021 Non-depreciable: Land $ 26,380,089 $ 357,337 $ - $1,863,237 $ 28,600,663 Construction in progress 8,433,979 7,573,186 (2,344,406) (5,276,295) 8,386,464 Total non-depreciable 34,814,068 7,930,523 (2,344,406) (3,413,058) 36,987,127 Depreciable: Building and improvements 23,559,033 - - 584,139 24,143,172 Land improvements 18,130,141 - - - 18,130,141 Machinery and equipment 2,818,009 92,800 (12,849) 65,440 2,963,400 Autos and trucks 3,703,746 743,497 (525,855) - 3,921,388 Office equipment 4,528,321 42,789 - - 4,571,110 Infrastructure 260,713,880 441,801 - 2,763,479 263,919,160 Total depreciable 313,453,130 1,320,887 (538,704) 3,413,058 317,648,371 Accumulated depreciation: Building and improvements (10,970,264) (652,018) - - (11,622,282) Land improvements (8,514,688) (564,382) - - (9,079,070) Machinery and equipment (2,580,496) (119,212) 12,849 - (2,686,859) Autos and trucks (2,396,189) (402,048) 484,631 - (2,313,606) Office equipment (2,779,893) (413,853) - - (3,193,746) Infrastructure (86,898,705) (3,590,970) - - (90,489,675) Total accumulated depreciation (114,140,235) (5,742,483) 497,480 - (119,385,238) Net depreciable assets 199,312,895 (4,421,596) (41,224) 3,413,058 198,263,133 Governmental activities capital assets, net $234,126,963 $3,508,927 $(2,385,630) $ - $235,250,260 Depreciation expense for governmental activities is charged to functions as follows: Community services $ 313,538 Public works 5,222,377 Community development 7,306 Policy and administration 199,262 Total depreciation for governmental activities $ 5,742,483 86 City of Tigard, Oregon Notes to Basic Financial Statements Capital assets activity for business-type activities for the year ended June 30, 2021, was as follows: Balances Balances Business-type activities June 30,2020 Additions Deletions Transfers June 30,2021 Non-depreciable: Land $ 11,975,910 $ - $ - $ 327,069 $ 12,302,979 Construction in progress 2,998,627 2,593,255 - (327,069) 5,264,813 Total non-depreciable 14,974,537 2,593,255 - - 17,567,792 Depreciable: Building and improvements 77,323,567 - - - 77,323,567 Land Improvements 7,505,761 - - - 7,505,761 Sewer system 31,878,938 186,489 - - 32,065,427 Stormwater system 22,831,823 253,440 - - 23,085,263 Water system 148,568,872 140,995 - - 148,709,867 Equipment 4,009,435 161,847 - - 4,171,282 Autos and trucks 2,409,767 189,607 (314,491) - 2,284,883 Total depreciable 294,528,163 932,378 (314,491) - 295,146,050 Accumulated depreciation: Building and improvements (4,386,938) (1,898,189) - - (6,285,127) Sewer system (13,973,122) (739,584) - - (14,712,706) Stormwater system (10,349,862) (584,471) - - (10,934,333) Water system (38,219,325) (3,222,359) - - (41,441,684) Equipment (2,147,550) (219,558) - - (2,367,108) Autos and trucks (1,803,408) (240,276) 210,500 - (1,833,184) Total accumulated depreciation (70,880,205) (6,904,437) 210,500 - (77,574,142) Net depreciable assets 223,647,958 (5,972,059) (103,991) - 217,571,908 Business-type activities capital assets, net $238,622,495 $ (3,378,804) $(103,991) $ - $235,139,700 Depreciation expense for business-type activities is charged to activities as follows: Sanitary sewer $ 892,448 Stormwater 715,146 Water 5,296,843 Total depreciation for business-type activities $ 6,904,437 87 City of Tigard, Oregon Notes to Basic Financial Statements 6. Long-term Debt and Other Debt Governmental Activities Direct Borrowings and Placements General Obligation Bonds and Full Faith and Credit Bonds TCDA 2019 Full Faith and Credit Bonds In fiscal year 2019-2020 the city issued $1,896,000 in Series 2019A Tax-Exempt bonds, and $4,033,000 Series 2019B Federally Taxable bonds. The bonds were issued to fund Urban Renewal projects within the CCDA. In connection with the financing agreement, CCDA and the city executed an intergovernmental agreement (IGA) for CCDA to be obligated for the debt service payments on the bonds. The IGA constitutes indebtedness of the agency in the amount of the financing or$5,929,000. Pursuant to ORS 287A.310,the agency pledges the tax increment revenues to pay the financing payments or debt service. The outstanding bonds carry an Event of Default clause which allows the lender to exercise any remedy available at law or in equity, with the exception of acceleration. At June 30, 2021 the outstanding balance on the bonds was $1,816,000 for the Series 2019A and $3,872,000 for the Series 2019B. Future maturities of bond principal and interest on the bonds are as follows: Total Debt Series 2019A Series 2019B Year Service Requirement Issued: August 29, 2019 Issued:August 29, 2019 Ending Total Total 2.36% 2.99% June 30, Principal Interest Principal Interest Principal Interest 2022 $ 248,000 $ 158,631 $ 82,000 $ 42,858 $ 166,000 $ 115,773 2023 254,000 151,731 84,000 40,922 170,000 110,809 2024 262,000 144,666 86,000 38,940 176,000 105,726 2025 269,000 137,374 88,000 36,910 181,000 100,464 2026 276,000 129,886 90,000 34,834 186,000 95,052 2027-2031 1,502,000 529,564 484,000 141,222 1,018,000 388,342 2032-2034 2,877,000 213,486 902,000 56,452 1,975,000 157,034 $ 5,688,000 $1,465,338 $1,816,000 $ 392,138 $ 3,872,000 $ 1,073,200 2020 GO Refunding Bonds In fiscal year 2019-2020 the city issued $5,981,000 of full faith and credit General Obligation Refunding Bonds. These bonds were used to partially refund the 2011A Series Parks GO Bonds. The 2020 GO Refunding Bonds will be repaid over seven years with an interest rate of 1.34 percent. The outstanding bonds carry an Event of Default clause which allows Chase Bank to exercise any remedy available at law or in equity,with the exception of acceleration. At June 30, 2021 the outstanding balance on the bonds was $5,642,000. 88 City of Tigard, Oregon Notes to Basic Financial Statements Future maturities of bond principal and interest on the GO Refunding Bonds are as follows: Year Ending June 30, Principal Interest Total 2022 $ 441,000 $ 75,603 $ 516,603 2023 549,000 69,693 618,693 2024 1,561,000 62,337 1,623,337 2025 1,684,000 41,419 1,725,419 2026 1,407,000 18,854 1,425,854 $ 5,642,000 $ 267,906 $ 5,909,906 Other Debt General Obligation Bonds and Full Faith and Credit Bonds Library Bonds: In fiscal year 2010-2011 the city issued $8,655,000 of general obligation bonds, series 2011B, for a current refunding of bonds originally issued in 2002 to build a new library. Interest rates on the new bonds range from 3.0 percent to 4.0 percent on specific maturities. At June 30, 2021 the outstanding balance on the 2011B bonds was $1,735,000. Future maturities of bond principal and interest on the Library Bonds are as follows: Year Ending June 30, Principal Interest Total 2022 $ 850,000 $ 52,400 $ 902,400 2023 885,000 17,700 902,700 $ 1,735,000 $ 70,100 $ 1,805,100 Parks Bonds: In fiscal year 2010-2011 the city issued $17,000,000 of general obligation bonds, series 2011A at a premium of$297,213.The proceeds of the bonds were issued to acquire open spaces, protect and improve parklands. At least 80 percent of the bond proceeds went towards land acquisition for open spaces, parks or trail corridors with up to 20 percent towards improvements and development of park land. Interest rates range from 3.0 percent to 4.75 percent on specific maturities. During fiscal year 2019-2020 these bonds were partially defeasance. The outstanding bonds carry a Default and Remedies clause which allows owners of ten percent or more of the principal amount of the bonds then outstanding to exercise any remedy available at law or in equity, with the exception of acceleration. At June 30, 2021, the outstanding balance on the bonds was$4,570,000 and the balance of the unamortized premium was $22,088. 89 City of Tigard, Oregon Notes to Basic Financial Statements Future maturities of bond principal and interest on the Parks Bonds are as follows: Year Ending June 30, Principal Interest Total 2022 $ 845,000 $ 187,650 $ 1,032,650 2023 875,000 153,850 1,028,850 2024 910,000 118,850 1,028,850 2025 950,000 82,450 1,032,450 2026 990,000 42,075 1,032,075 $ 4,570,000 $ 584,875 $ 5,154,875 Premium 22,088 Total $ 4,592,088 Business-type Activities Direct Borrowings and Placements Note Payable In fiscal year 2009-2010 the city was awarded $4,796,000 in federal funds under the American Recovery and Reinvestment Act (ARRA). These funds were distributed to the city as a loan, with 50 percent constituting an ARRA Forgivable Loan and 50 percent a low-interest loan under the Safe Drinking Water Revolving Loan Fund program. These ARRA funds were used to develop a city water reservoir. In fiscal year 2011-2012 the city drew down the funds that are considered the loan portion. The interest rate on the note payable is 3.0 percent. Within the note agreement the state, in the event of default, may pursue any or all the following remedies or any other remedies available at law or in equity: • termination of the loan agreement • termination of the state's obligations to make the loan or any disbursement, • repayment of the loan due upon demand, • payment of interest earned by the city on the loan proceeds due upon demand, • acceleration of the loan, • declaration of the city's ineligibility to receive future awards, and • the withholding pursuant to ORS 285A.213(6) and OAR 123-049-0040 of other state funds. 90 City of Tigard, Oregon Notes to Basic Financial Statements At June 30, 2021, the balance on the note payable was $1,472,023. Future debt service requirements are as follows: Year Ending June 30, Principal Interest Total 2022 $ 117,022 $ 44,161 $ 161,183 2023 120,533 40,650 161,183 2024 124,149 37,034 161,183 2025 127,874 33,310 161,184 2026 131,710 29,473 161,183 2027-2031 720,244 85,672 805,916 2032 130,491 3,915 134,406 Total $ 1,472,023 $ 274,215 $ 1,746,238 Water Revenue Bonds In fiscal year 2020-2021 the city issued $86,575,000 of Water Revenue Refunding Bonds. These bonds were used to partially refund the 2012 Water Revenue Bonds. The 2020 Water Revenue Refunding Bonds will be repaid over 22 years with an interest rate between 2 and 2.9 percent. The outstanding bonds carry an Event of Default clause which allows any owner to exercise any remedy available at law or in equity, with the exception of acceleration. At June 30, 2021 the outstanding balance on the bonds was $86,575,000 and the balance of the unamortized premium was $1,104,888. Future maturities of bond principal and premium and interest on the Water Revenue Refunding Bonds are as follows: Year Ending June 30, Principal Interest Total 2022 $ 950,000 $ 2,011,663 $ 2,961,663 2023 970,000 1,992,462 2,962,462 2024 3,430,000 1,948,463 5,378,463 2025 3,500,000 1,879,162 5,379,162 2026 3,570,000 1,808,463 5,378,463 2027-2031 18,955,000 7,931,262 26,886,262 2032-2036 21,010,000 5,872,568 26,882,568 2037-2041 23,740,000 3,145,351 26,885,351 2042-2043 10,450,000 305,225 10,755,225 86,575,000 $ 26,894,619 $ 113,469,619 Premium 1,104,888 Total $ 87,679,888 91 City of Tigard, Oregon Notes to Basic Financial Statements Other Debt Water Project Financing In fiscal year 2010-2011 the City of Tigard's City Council authorized up to $160 million in bonds to help finance a joint water supply project with the City of Lake Oswego to provide Tigard a share of a local water source. The arrangement with Lake Oswego to share a water system is referred to as the Lake Oswego/Tigard Water Partnership project. In fiscal year 2011-2012 the city issued $97,720,000 of water revenue bonds to be used to fund capital projects for the water system in connection with the Lake Oswego/Tigard Water Partnership project.The bonds were issued at a premium of$8,196,325 with interest rates from 3.0 percent to 5.0 percent. During fiscal year 2020-2021 these bonds were partially defeasance. At June 30, 2021,the balance of the 2012 water revenue bonds was $4,640,000 and the balance of the unamortized premium was $237,236. In fiscal year 2014-2015 the city issued $30,810,000 of water revenue bonds with interest rates from 3.0 percent to 5.0 percent. The bonds were issued at a premium of $4,449,380. These bonds are the second of two borrowings by Tigard to help finance the joint water supply project with the City of Lake Oswego (Lake Oswego/Tigard Water Partnership project).At June 30, 2021, the balance of the 2015 water revenue bonds was $29,955,000 and the balance of the unamortized premium was $3,405,375. Net water system revenues and system development charges for the Water System are pledged to the payment of principal of and interest on the revenue bonds. Net system revenues for fiscal year 2021 were $15,038,733 as compared to the total debt service of$6,959,543. 92 City of Tigard, Oregon Notes to Basic Financial Statements The computation of water revenue bonds debt coverage is as follows: Gross revenues $ 24,836,173 System Development Charges (SDC) related: SDC Fund interest earnings 68,639 Reimbursement fee receipts 934,950 Improvement fee receipts 1,120,049 Total SDC-related 2,123,638 Operating expense: Salaries and wages 1,216,954 Contracted services 708,202 Water purchases 1,755,408 General, admin and other 6,116,876 Total operating expenses 9,797,440 Net revenues (including SDCs) 17,162,371 Net revenues (excluding SDCs) $ 15,038,733 Debt service - first lien bonds: 2012 bonds $ 2,331,580 2015 bonds 1,666,300 2020 bonds 2,961,663 Total debt service $ 6,959,543 Debt service coverage - first lien bonds (excluding system development charges) 2.16 Interest rates on the bonds range from 3 percent to 5 percent on specific maturities. The outstanding bonds carry a Default and Remedies clause which allows owners to exercise any remedy available at law or in equity, with the exception of acceleration. 93 City of Tigard, Oregon Notes to Basic Financial Statements Future maturities of bond principal and premium and interest on the revenue bonds are as follows: Year Ending June 30, Principal Interest Total 2022 $ 2,465,000 $ 1,532,880 $ 3,997,880 2023 2,565,000 1,515,800 4,080,800 2024 210,000 1,460,300 1,670,300 2025 215,000 1,451,800 1,666,800 2026 225,000 1,443,000 1,668,000 2027-2031 1,285,000 6,929,401 8,214,401 2032-2036 1,620,000 6,713,750 8,333,750 2037-2041 2,085,000 6,252,125 8,337,125 2042-2046 23,925,000 4,101,375 28,026,375 34,595,000 $ 31,400,431 $69,638,042 Premium 3,642,611 Total $ 38,237,611 Advanced Refunding of Debt In November 2020 the city issued $86,575,000 of Water Revenue Refunding Bonds and were used to defeasance part of the 2012 Water Revenue Bonds. As such the proceeds of refunding issues were placed in an irrevocable trust to provide for future debt service payments on the retired bonds. Accordingly, the escrow account assets and the liability for the defeasance bonds are not included in the city's financial statements.The refunding was undertaken to reduce total debt service payments by $27,655,069 which produced an economic gain of $16,503,405. The difference between the reacquisition price and net carrying amount of the old debt of $3,607,247 is reported as a deferred outflow of resources and is being amortized over the remaining life of the debt. 94 City of Tigard, Oregon Notes to Basic Financial Statements Long-term debt activity, including compensated absences,for the year ended June 30, 2021 was as follows: Balances June Balances June Due in one 30,2020 Additions Retirements 30,2021 year Governmental activities Direct borrowings and placements Bonds payable $ 5,981,000 $ - $ (339,000) $ 5,642,000 $ 441,000 Bonds payable (TCDA) 5,929,000 - (241,000) 5,688,000 248,000 Total direct borrowings and placements 11,910,000 - (580,000) 11,330,000 689,000 Other debt Bonds payable 7,930,000 - (1,625,000) 6,305,000 1,695,000 Total governmental debt 19,840,000 - (2,205,000) 17,635,000 2,384,000 Premium on bonds 30,531 - (8,443) 22,088 7,172 Other long-term liabilities Compensated absences 1,466,124 2,184,327 (1,998,968) 1,651,483 1,585,424 Governmental activities $ 21,336,655 $ 2,184,327 $ (4,212,411) $ 19,308,571 $3,976,596 Business-type activities Direct borrowings and placements Note payable $ 1,585,637 $ - $ (113,614) $ 1,472,023 $ 117,022 Bonds payable - 86,575,000 - 86,575,000 950,000 Total direct borrowings and placements 1,585,637 86,575,000 (113,614) 88,047,023 1,067,022 Other debt Bonds payable 119,940,000 - (85,345,000) 34,595,000 2,476,277 Total business-type debt 121,525,637 86,575,000 (85,458,614) 122,642,023 3,543,299 Premium on bonds 8,314,644 1,104,888 (4,672,033) 4,747,499 291,025 Other long-term liabilities Compensated absences 129,177 180,518 (201,551) 108,144 104,597 Business-type activities $ 129,969,458 $87,860,406 $(90,332,198) $ 127,497,666 $3,938,920 Expenditures for liquidating other long-term liabilities, including compensated absences and pension liabilities, are recorded in the General, various nonmajor Special Revenue, Enterprise, and Internal Service funds. 7. Interfund Receivables, Payables and Transfers Interfund loan transactions between funds are recorded as "advances to" and "advances from" other funds. Interfund loans represent interim financing from the General Fund and the Sanitary 95 City of Tigard, Oregon Notes to Basic Financial Statements Sewer fund to a capital project fund for various urban renewal development projects. Repayment of these transactions occurs in years subsequent to year-end. The net effect of interfund loans is reported on the Statement of Net Position as Internal Balances.The composition of interfund loans and the related elimination as of June 30, 2021 are as follows: Net Receivable Fund Payable Fund Amount Elimination Balance General Fund Nonmajor governmental fund $ 883,981 $ (883,981) $ - Sanitary Sewer Fund Nonmajor governmental fund 102,320 - 102,320 $ 986,301 $ (883,981) $ 102,320 Future maturities on the interfund loans are as follows: Interfund Loans Elimination Net Balance Year Ending June 30, Principal Interest Principal Interest Principal Interest 2022 $ - $ 9,428 $ - $ (8,916) $ - $ 512 2023 - 9,428 - (8,916) - 512 2024 - 9,428 - (8,916) - 512 2025 13,926 9,428 (3,922) (8,916) 10,004 512 2026 49,227 9,358 (39,173) (8,846) 10,054 512 2027-2031 391,653 41,611 (340,625) (39,808) 51,028 1,803 2032-2036 428,811 24,476 (397,577) (23,956) 31,234 520 2037-2041 102,684 6,234 (102,684) (6,234) - - $ 986,301 $ 119,391 $ (883,981) $ (114,508) $ 102,320 $ 4,883 96 City of Tigard, Oregon Notes to Basic Financial Statements Transfers for fiscal year ended June 30, 2021 are as follows: Transfer To Transfer From Amount Purpose General Nonmajor Governmental $ 193,091 $ 193,091 Unrestricted portion of the city's transient lodging tax Non major Governmental General 2,514,172 Fund park and various other operations Fund parks,transportation and various other capital Nonmajor Governmental 5,168,717 projects Fund water component of transportation capital Water 245,111 project 7,928,000 Sanitary Sewer Stormwater 150,019 150,019 Fund sewer component of stormwater project Stormwater Sanitary Sewer 49,293 49,293 Fund stormwater component of sewer project Funding of central services,public works Internal Service General 411,615 administration and engineering Nonmajor Governmental 747,145 Capital project funding contracting and accounting Sanitary Sewer 81,682 Capital project funding contracting,accounting,and Stormwater 135,725 public works engineering Water 457,714 1,833,881 $10,154,284 Reconciliation: Transferred to governmental funds from: Sewer Fund $ 81,682 Stormwater Fund 135,725 Water Fund 702,825 Total transfers per Statement of Activities $ 920,232 8. Post-Employment Benefits Other than Pensions (OPEB) The other post-employment benefits (OPEB) for the city combines two separate plans. The city provides an implicit rate subsidy for retiree health insurance premiums, and a contribution to the State of Oregon's PERS cost-sharing multiple-employer defined health insurance benefit plan. Financial Statement Presentation The city's two OPEB plans are presented in the aggregate on the Statement of Net Position. 97 City of Tigard, Oregon Notes to Basic Financial Statements The amounts on the financial statements relate to the plans as follows: Implicit Rate PERS RHIA Total OPEB Subsidy Plan Plan on Financials Net OPEB Asset $ - $ 70,282 $ 70,282 Deferred Outflows of Resources Differences Between Expected and Actual Experience 9,666 - 9,666 Change in Proportionate Share - 26,830 26,830 Change in Assumptions 35,294 - 35,294 Difference in Earnings - 7,816 7,816 Contributions After the Measurement Date 28,460 2,194 30,654 Total Deferred Outflows of Resources 73,420 36,840 110,260 Total OPEB Liability 1,330,957 - 1,330,957 Deferred Inflows of Resources Differences Between Expected and Actual Experience 163,504 7,185 170,689 Change in Proportionate Share - 811 811 Change in Assumptions 251,057 3,736 254,793 Total Deferred Inflows of Resources 414,561 11,732 426,293 OPEB Expense (Income) 106,601 1,949 108,550 (Included in program expenses on Statement of Activities) Implicit Rate Subsidy Plan Description The city's single-employer defined benefit postemployment healthcare plan is administered by Citycounty Insurance Services of Oregon (CIS). Benefit provisions are established through negotiations between the city and representatives of collective bargaining units or through resolutions passed by city council. No assets are accumulated in a trust that meet the criteria in paragraph 4 of Statement 75. The city's postemployment healthcare plan administrator issues a publicly available financial report that includes financial statements and required supplementary information for CIS. This report may be obtained on their website at www.cisoregon.org/About/TrustDocs. Benefits Provided The plan provides eligible retirees and their dependents under age 65 the same health care coverage at the same premium rates as offered to active employees. The retiree is 98 City of Tigard, Oregon Notes to Basic Financial Statements responsible for the premiums. As of the valuation date of July 1, 2020, the following employees were covered by the benefit terms: Inactive employees or beneficiaries receiving benefits 3 Active employees 292 295 Total OPEB Liability, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB The city's total OPEB liability of $1,330,957 was measured as of June 30, 2021, and was determined by an actuarial valuation as of July 1, 2020. For the fiscal year ended June 30, 2021, the city recognized OPEB expense from this plan of $106,601. At June 30, 2021, the city reported deferred outflows of resources and deferred inflows of resources related to this OPEB plan from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 9,666 $ (163,504) Changes of assumptions 35,294 (251,057) Contributions subsequent to the measurement date 28,460 - Total $ 73,420 $ (414,561) Deferred outflows of resources related to OPEB of $28,460 resulting from the city's contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year ended June 30: Annual Recognition 2022 $ (67,721) 2023 (67,721) 2024 (67,721) 2025 (66,501) 2026 (55,530) Thereafter (44,407) $ (369,601) 99 City of Tigard, Oregon Notes to Basic Financial Statements Actuarial Assumptions and Other Inputs The total OPEB liability in the July 1, 2020 valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Actuarial cost method Entry Age Normal Inflation 2.5 percent Salary increases 3.5 percent Healthy mortality RP-2014 healthy annuitant, sex distinct mortality tables blended 50/50 blue collar and white collar, set back one year for males. Mortality is projected on a generational basis using the Unisex Social Security Data Scale. Discount rate 2.21 percent (change from 1.29 percent in previous measurement period) Healthcare cost trend rate Medical and vision: 5.75 percent per year, decreasing to 4.00 percent Dental: 4.00 percent per year The discount rate was based on Bond Buyer 20-Year General Obligation Bond Index. Changes in the Total OPEB Liability Total OPEB Liability Balance as of June 30, 2020 $ 1,416,690 Changes for the year: Service cost 121,384 Interest on total OPEB liability 52,938 Effect of economic/demographic gains and losses (188,659) Effect of assumptions changes or inputs (19,815) Benefit payments (51,581) Balance as of June 30, 2021 $ 1,330,957 Changes in assumptions is the result of the change in the discount rate from 3.50 percent to 2.21 percent. Sensitivity of the Total OPEB Liability The following presents the city's total OPEB liability, as well as what the liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.21 percent) or 1- 100 City of Tigard, Oregon Notes to Basic Financial Statements percentage-point higher (3.21 percent) than the current discount rate. A similar sensitivity analysis is then presented for changes in the healthcare trend assumption. Discount Rate: 1% Decrease Current Discount 1% Increase (1.21%) Rate (2.21%) (3.21%) Total OPEB Liability $ 1,448,480 $ 1,330,957 $ 1,220,431 Healthcare Cost Trend: 1% Decrease Current Healthcare (6.00) Trend Rate (7.00) 1% Increase (8.00) Total OPEB Liability $ 1,156,031 $ 1,330,957 $ 1,537,385 PERS Retirement Health Insurance Account Plan Description As a member of Oregon Public Employees Retirement System (OPERS) the city contributes to the Retirement Health Insurance Account (RHIA) for each of its eligible employees. RHIA is a cost-sharing multiple-employer defined benefit other postemployment benefit plan administered by OPERS. RHIA pays a monthly contribution toward the cost of Medicare companion health insurance premiums of eligible retirees. Oregon Revised Statute (ORS) 238.420 established this trust fund. Authority to establish and amend the benefit provisions of RHIA reside with the Oregon Legislature. The plan is closed to new entrants after August 29, 2003. OPERS issues a publicly available financial report that includes financial statements and required supplementary information. OPERS produces an independently audited ACFR which can be found at: http://www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx Funding Policy Because RHIA was created by enabling legislation (ORS 238.420), contribution requirements of the plan members and the participating employers were established and may be amended only by the Oregon Legislature. ORS require that an amount equal to $60 or the total monthly cost of Medicare companion health insurance premiums coverage, whichever is less, shall be paid from the Retirement Health Insurance Account established by the employer, and any monthly cost in excess of$60 shall be paid by the eligible retired member in the manner provided in ORS 238.410. To be eligible to receive this monthly payment toward the premium cost the member must: (1) have eight years or more of qualifying service in OPERS at the time of retirement or receive a disability allowance as if the member had eight years or more of creditable service in OPERS, (2) receive both Medicare Parts A and B coverage, and (3) enroll in a OPERS-sponsored health plan. An eligible surviving spouse or dependent of a deceased PERS retiree may receive the subsidy if he or she (1) is receiving a retirement benefit or allowance from PERS or (2) was insured at the time the member died and the member retired before May 1, 1991. 101 City of Tigard, Oregon Notes to Basic Financial Statements Contributions PERS funding policy provides for employer contributions at actuarially determined rates. These contributions, expressed as a percentage of covered payroll, are intended to accumulate sufficient assets to pay benefits when due. Employer contribution rates for the period were based on the December 31, 2017 actuarial valuation.The rates based on a percentage of payroll, first became effective July 1, 2019. The city's contribution rates for the period were 0.50% for Tier One/Tier Two members, and 0.43% for OPSRP members. The city's total contributions for the year ended June 30, 2021 was $2,194. OPEB Assets, Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2021,the city reported an asset of$70,282 for its proportionate share of the OPERS net OPEB asset. The net OPEB asset was measured as of June 30, 2020, and the total OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation as of December 31, 2018 rolled forward to June 30, 2020. The city's proportion of the net OPEB asset was based on the city's contributions to the RHIA program during the measurement period relative to contributions from all participating employers. At June 30, 2020, the city's proportionate share was 0.0345%,which is a decrease from its proportion of 0.0607%as of June 30, 2019. For the year ended June 30, 2021, the city recognized OPEB expense from this plan of $1,949. At June 30, 2021, the city reported deferred outflows of resources and deferred inflows of resources related to this OPEB plan from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ - $ 7,185 Change of assumptions - 3,736 Net difference between projected and actual earnings 7,816 - Changes in proportionate share 26,830 811 Contributions subsequent to the measurement date 2,194 - Tota I $ 36,840 $ 11,732 Deferred outflows of resources related to OPEB of$2,194 resulting from the city's contributions subsequent to the measurement date will be recognized as either a reduction of the net OPEB liability or an increase in the net OPEB asset in the year ended June 30, 2022. 102 City of Tigard, Oregon Notes to Basic Financial Statements Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year ended June 30: Annual Recognition 2022 $ 6,410 2023 11,150 2024 2,889 2025 2,465 $ 22,914 Actuarial Methods and Assumptions The total OPEB liability in the December 31, 2018 actuarial valuation was determined using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Amortization method Amortized as a level percentage of payroll as layered bases over a closed 10-year period Asset valuation method Market value of assets Inflation 2.5 percent Investment rate of return 7.2 percent Salary increases 3.5 percent Healthy mortality Healthy retirees and beneficiaries: Pub-2010 Healthy Retiree, sex-distinct, generational with Unisex, Social Security Data Scale, with job category adjustment and set-backs as described in the valuation. Active members: Pub-2010 Employees, sex-distict, generational with Unisex, Social Security Data Scale, with job category adjustments and set-backs as described in the valuation. Disabled retirees: Pub-2010 Disabled retirees, sex-distinct, generational with Unisex, Social Security Data Scale, with job category adjustments and set-backs as described in the valuation. Actuarial valuations of an ongoing plan involve estimates of the value of projected benefits and assumptions about the probability of events far into the future.Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new 103 City of Tigard, Oregon Notes to Basic Financial Statements estimates are made about the future. Experience studies are performed as of December 31 of even numbered years. The methods and assumptions shown above are based on the 2018 experience study which reviewed experience for the four-year period ending on December 31, 2018. Long-Term Expected Rate of Return To develop an analytical basis for the selection of the long-term expected rate of return assumption, in May 2019 the OPERS Board reviewed long-term assumptions developed by both Milliman's capital market assumptions team and the Oregon Investment Council's (OIC) investment advisors.The table below shows Milliman's assumptions for each of the asset classes in which the plan was invested at that time based on the OIC long-term target asset allocation. The OIC's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. These assumptions are not based on historical returns, but instead are based on a forward-looking capital market economic model. Assumed Asset Allocation Asset Class/Strategy Low Range High Range Target Debt Securities 15.0% 25.0% 20.0% Public Equity 27.5% 37.5% 32.5% Real Estate 9.5% 15.5% 12.5% Private Equity 14.0% 21.0% 17.5% Alternatives Portfolio 7.5% 17.5% 15.0% Opportunity Portfolio 0.0% 3.0% 0.0% Risk Parity 0.0% 2.5% 2.5% Total 100.0% 104 City of Tigard, Oregon Notes to Basic Financial Statements Compounded Target Annual Return Asset Class Allocation (Geometric) Core Fixed Income 9.60% 4.07% Short-Term Bonds 9.60% 3.68% Bank/Leveraged Loans 3.60% 5.19% High Yield Bonds 1.20% 5.74% Large/Mid Cap US Equities 16.17% 6.30% Small Cap US Equities 1.35% 6.68% Micro Cap US Equities 1.35% 6.79% Developed Foreign Equities 13.48% 6.91% Emerging Market Equities 4.24% 7.69% Non-US Small Cap Equities 1.93% 7.25% Private Equities 17.50% 8.33% Real Estate (Property) 10.00% 5.55% Real Estate (REITS) 2.50% 6.69% Hedge Fund of Funds-Diversified 1.50% 4.06% Hedge Fund-Event-driven 0.38% 5.59% Timber 1.13% 5.61% Farmland 1.13% 6.12% Infrastructure 2.25% 6.67% Commodities 1.13% 3.79% Total 100.00% Assumed Inflation - Mean 2.50% Discount Rate The discount rate used to measure the total OPEB liability was 7.20 percent for the RHIA Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and those contributing employers are made at the contractually required rates, as actuarially determined. Based on those assumptions, the RHIA plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments for the RHIA Plan was applied to all periods of projected benefit payments to determine the total OPEB liability. 105 City of Tigard, Oregon Notes to Basic Financial Statements Sensitivity of the City's proportionate share of the net OPEB liability (asset) to changes in the discount rate The following presents the city's proportionate share of the net OPEB liability (asset) calculated using the discount rate of 7.20 percent, as well as what the city's proportionate share of the net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage- point lower (6.20 percent) or 1-percentage-point higher (8.20 percent) than the current rate: 1% Decrease Current Discount 1% Increase (6.20%) Rate (7.20%) (8.20%) Net OPEB Liability (Asset) $ (56,741) $ (70,282) $ (81,861) OPEB Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued OPERS financial report at: http://www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx 9. Pension Plan Oregon Public Employees Retirement Systems (OPERS) Plan Description City of Tigard Police Officers are provided with pensions through Oregon Public Employees Retirement System (OPERS); a cost-sharing multiple-employer defined benefit pension plan that acts as a common investment and administrative agent for government units in the State of Oregon. Police Officers hired before August 29, 2003 belong to the Tier One/Tier Two Retirement Benefit Program (established pursuant to ORS Chapter 238), while Officers hired on or after August 29, 2003 belong to the OPSRP Pension Program (established pursuant to ORS Chapter 238A). OPERS produces an independently audited ACFR which can be found at: http://www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx Benefits Provided Tier One/Tier Two Retirement Benefit Pension Benefits. The PERS retirement allowance is payable monthly for life. It may be selected from 13 retirement benefit options. These options include survivorship benefits and lump-sum refunds. The basic benefit is based on years of service and final average salary. For city sworn officers, 2.0 percent is multiplied by the number of years of service and the final average salary. Benefits may also be calculated under either a formula plus annuity (for members who were contributing before August 21, 1981) or a money match computation if a greater benefit results. A member is considered vested and will be eligible at a minimum retirement age for a service retirement allowance if he or she has had contribution in each of five calendar years or has reached at least 45 years of age before ceasing employment with a participating employer. 106 City of Tigard, Oregon Notes to Basic Financial Statements Police members are eligible after reaching age 50.Tier One police member benefits are reduced if retirement occurs prior to age 55 with fewer than 25 years of service. Tier Two members are eligible for full benefits at age 60. The ORS Chapter 238 Defined Benefit Pension Plan is closed to new members hired on or after August 29, 2003. Death Benefits. Upon the death of a non-retired member, the beneficiary receives a lump-sum refund of the member's account balance (accumulated contributions and interest). In addition, the beneficiary will receive a lump-sum payment from employer funds equal to the account balance, provided one or more of the following conditions are met: • the member was employed by a PERS employer at the time of death, • the member died within 120 days after termination of OPERS-covered employment, • the member died as a result of injury sustained while employed in a OPERS-covered job, or • the member was on an official leave of absence from a OPERS-covered job at the time of death. Disability Benefits. A member with 10 or more years of creditable service who becomes disabled from other than duty-connected causes may receive a non-duty disability benefit. A disability resulting from a job-incurred injury or illness qualifies a member for disability benefit regardless of the length of OPERS-covered service. Upon qualifying for either a non-duty or duty disability, service time is computed to age 55 for police members when determining the monthly benefit. Benefit Changes After Retirement. Members may choose to continue participation in a variable equities investment account after retiring and may experience annual benefit fluctuations due to changes in the market value of equity investments. Under ORS 238.360 monthly benefits are adjusted annually through cost-of-living changes. The COLA is capped at 2.0 percent. OPSRP Pension Program Pension Benefits. The OPSRP Pension Program (ORS Chapter 238A) provides benefits to members hired on or after August 29, 2003.This portion of OPSRP provides a life pension funded by employer contributions. Benefits are calculated by formula for members who attain normal retirement age. For police members, 1.8 percent is multiplied by the number of years of service and the final average salary. Normal retirement age for police members is age 60 or age 53 with 25 years of retirement credit.To be classified as a police member,the individual must have been employed continuously as a police member for at least five years immediately preceding retirement. A member of the OPSRP Pension Program becomes vested on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years,the date the member reaches normal retirement age, and if the pension program is terminated, the date on which termination becomes effective. Death Benefits. Upon the death of a non-retired member, the spouse or other person who is constitutionally required to be treated in the same manner as the spouse, receives for life 50 percent of the pension that would otherwise have been paid to the deceased member. 107 City of Tigard, Oregon Notes to Basic Financial Statements Disability Benefits. A member who has accrued 10 or more years of retirement credits before the member becomes disabled or a member who becomes disabled due to job-related injury shall receive a disability benefit of 45 percent of the member's salary determined as of the last full month of employment before the disability occurred. Benefit Changes After Retirement. Under ORS 238A.210 monthly benefits are adjusted annually through cost-of-living changes. The COLA is capped at 2.0 percent. OPSRP Individual Account Program (IAP) Pension Benefits. The IAP member becomes vested on the date the employee account is established or on the date the rollover account was established. If the employer makes optional employer contributions for a member, the member becomes vested on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years, the date the member reaches normal retirement age, the date the IAP is terminated, the date the active member becomes disabled, or the date the active member dies. Upon retirement, a member of the OPSRP IAP may receive the amounts in his or her employee account, rollover account, and vested employer account as a lump-sum payment or in equal installments over a 5-, 10-, 15-, 20-year period or an anticipated life span option. Each distribution option has a $200 minimum distribution limit. Death Benefits. Upon the death of a non-retired member,the beneficiary receives in a lump sum the member's account balance, rollover account balance, and vested employer optional contribution account balance. If a retired member dies before the installment payments are completed, the beneficiary may receive the remaining installment payments or choose a lump- sum payment. Recordkeeping. OPERS contracts with VOYA Financial to maintain IAP participant records. Contributions. OPERS funding policy provides for monthly employer contributions at actuarially determined rates. These contributions, expressed as a percentage of covered payroll, are intended to accumulate sufficient assets to pay benefits when due. Employer contribution rates for the period were based on the December 31, 2017 actuarial valuation. The rates based on a percentage of payroll, first became effective July 1, 2019.The rates in effect for the period were 25.25 percent for Tier One/Tier Two police members and 17.62 percent for OPSRP Pension Program Police member. The city's total contributions exclusive of the 6 percent "pick-up" was $1,350,833. Covered employees are required to contribute 6 percent of their salary to the Plan, but the employer is allowed to pay any or all of the employees' contribution in addition to the required employers' contribution. The city has elected to contribute the 6 percent "pick-up" or$396,418 of the employees' contribution. Pension Assets, Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2021, the city reported a liability of $14,812,243 for its proportionate share of the OPERS net pension liability. The net pension liability was measured as of June 30, 2020, and the 108 City of Tigard, Oregon Notes to Basic Financial Statements total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2018 rolled forward to June 30, 2020. The city's proportion of the net pension liability was based on a projection of the city's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined.At June 30, 2020,the city's proportion of OPERS net pension liability was 0.06787 percent. Annual Pension Cost For the year ended June 30, 2021, the city recognized pension expense of $3,021,778. At June 30, 2021, the city reported deferred outflows or resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources Differences between expected and actual experience $ 651,918 $ - Changes of assumptions 794,926 27,853 Net difference between projected and actual earnings on investments 1,741,727 - Changes in proportion 139,132 902,016 Differences between employer contributions and proportionate share of contributions 18,183 420,533 Total (prior to post-MD contributions) 3,345,886 1,350,402 Contributions subsequent to the MD 1,344,480 - Total $4,690,366 $1,350,402 Deferred outflows of resources related to pensions of $1,344,480 resulting from the city's contributions subsequent to the measurement date will be recognized as either a reduction of the net pension liability or an increase in the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred inflows of resources related to pensions will be recognized in pension expense as follows: Net Deferred Outflows/Inflows Amortization Period 2022 $ 407,609 2023 670,819 2024 616,661 2025 361,885 2026 (61,490) $1,995,484 109 City of Tigard, Oregon Notes to Basic Financial Statements Actuarial Methods and Assumptions The total pension liability in the December 31, 2018 actuarial valuation was determined using the following actuarial methods and assumptions: Actuarial Methods and Assumptions Valuation Date December 31, 2018 Measurement Date June 30, 2020 Experience Study Report 2018. published July 24, 2019 Actuarial Cost Method Entry Age Normal Actuarial Assumptions: Inflation Rate 2.50 percent Long-Term Expected Rate of Return 7.20 percent Discount Rate 7.20 percent Proiected Salary Increases 3.50 percent Cost of Living Adjustments (COLA) Blend of 2.00% COLA and graded COLA (1.25%/0.15%) in accordance with Moro decision, blend based on service Health retirees and beneficiaries: Pub-2010 Healthy Retiree, sex- distinct, generational with Unisex, Social Security Data Scale, with job category adjustments and set-backs as described in the valuation. Active Members: Pub-2010 Employee, sex-distinct, generational Mortality with Unisex, Social Security Data Scale, with job category adjustments and set-backs as described in the valuation. Disabled retirees: Pub-2010 Disabled Retiree, sex-distinct, generational with Unisex, Social Security Data Scale, with job category adjustments and set-backs as described in the valuation. Actuarial valuations of an ongoing plan involve estimates of the value of projected benefits and assumptions about the probability of events far into the future.Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Experience studies are performed as of December 31 of even numbered years. The methods and assumptions shown above are based on the 2018 experience study which reviewed experience for the four-year period ending on December 31, 2018. Long-Term Expected Rate of Return To develop an analytical basis for the selection of the long-term expected rate of return assumption, in May 2019 the OPERS Board reviewed long-term assumptions developed by both Milliman's capital market assumptions team and the Oregon Investment Council's (OIC) investment advisors.The table below shows Milliman's assumptions for each of the asset classes in which the plan was invested at that time based on the OIC long-term target asset allocation. The OIC's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying 110 City of Tigard, Oregon Notes to Basic Financial Statements assumptions, and includes an adjustment for the inflation assumption. These assumptions are not based on historical returns, but instead are based on a forward-looking capital market economic model. Assumed Asset Allocation Asset Class/Strategy Low Range High Range Target Debt Securities 15.0% 25.0% 20.0% Public Equity 27.5% 37.5% 32.5% Real Estate 9.5% 15.5% 12.5% Private Equity 14.0% 21.0% 17.5% Alternatives Portfolio 7.5% 17.5% 15.0% Opportunity Portfolio 0.0% 3.0% 0.0% Risk Parity 0.0% 2.5% 2.5% Total 100.0% Compounded Target Annual Return Asset Class Allocation (Geometric) Core Fixed Income 9.60% 4.07% Short-Term Bonds 9.60% 3.68% Bank/Leveraged Loans 3.60% 5.19% High Yield Bonds 1.20% 5.74% Large/Mid Cap US Equities 16.17% 6.30% Small Cap US Equities 1.35% 6.68% Micro Cap US Equities 1.35% 6.79% Developed Foreign Equities 13.48% 6.91% Emerging Market Equities 4.24% 7.69% Non-US Small Cap Equities 1.93% 7.25% Private Equities 17.50% 8.33% Real Estate (Property) 10.00% 5.55% Real Estate (REITS) 2.50% 6.69% Hedge Fund of Funds-Diversified 1.50% 4.06% Hedge Fund-Event-driven 0.38% 5.59% Timber 1.13% 5.61% Farmland 1.13% 6.12% Infrastructure 2.25% 6.67% Commodities 1.13% 3.79% Total 100.00% Assumed Inflation - Mean 2.50% 111 City of Tigard, Oregon Notes to Basic Financial Statements Discount Rate The discount rate used to measure the total pension liability was 7.20 percent for the Defined Benefit Pension Plan.The projection of cash flows used to determine the discount rate assumed that contributions from plan members and those contributing employers are made at the contractually required rates, as actuarially determined. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments for the Defined Benefit Pension Plan was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City's proportionate share of net pension liability (asset) to changes in the discount rate The following presents the city's proportionate share of the net pension liability (asset) calculated using the discount rate of 7.20 percent, as well as what the city's proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1- percentage-point lower (6.20 percent) or 1-percentage-point higher (8.20 percent) than the current rate: 1% Decrease Discount Rate 1% Increase (6.20%) (7.20%) (8.20%) City's proportionate share of the net pension liability $ 21,994,957 $ 14,812,243 $ 8,789,204 Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued OPERS financial report at: http://www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx 10. Retirement Plans— Defined Contribution Plan The city contributes to a retirement plan on behalf of all eligible employees. Contributions are to Mass Mutual, a defined contribution single employer retirement plan (The Plan) for those employees not eligible for the defined benefit plan (OPERS). The Plan is a defined contribution plan created in accordance with Internal Revenue Code Section 401(a). Employees become eligible to participate in the plans after six months of service and vest immediately. Employees may withdraw funds upon retirement or termination of employment. Employees enrolled in The Plan at June 30, 2021: Classification of eligible employees Enrollment Represented (SEIU)/Police (non-sworn) employees 122 Management employees 103 Total enrolled employees 225 112 City of Tigard, Oregon Notes to Basic Financial Statements Contributions to The Plan range from 10 to 11 percent of gross salary depending on the employment group for all eligible employees participating in the plans. The city is required to contribute to these plans under authority of City Council resolution and the plan documents. Employees may also contribute to these plans. Required and actual contributions to the plan were $2,775,406 for the year ended June 30, 2021. Contributions to the plans are made to a fiduciary. All assets and income of the Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. Since the plans are administered by the city, the assets, equity and operations of the plans are accounted for in the General Employees Pension Plan Fund, a pension trust fund. The plans invest in various money market and equity mutual funds. At June 30, 2021, the total net position of the pension plan was $39,835,413, which approximates fair value. Deferred Compensation Plans The city offers employees a voluntary deferred compensation plan created in accordance with Internal Revenue Code Section 457 and administered by the city. The Plan is a defined contribution plan. Amendments to the plan require City Council approval. The Plan is available to any individual who is an elected official of the city or who is employed by the city after completing 30 days of service. Participation in the plan is voluntary. Contributions to fiduciaries that hold the funds in trust for the plans' participants are made through salary withholdings from participating employees up to the amounts specified in the code. No contributions are required by the city. Amounts deferred are not available to employees until termination, retirement, death, or unforeseeable emergency. All assets and income of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries.The amounts accumulated under the 457 plan including investments earnings are excluded from the financial statements of the city. 11.Tax Abatements As of June 30, 2021, the city provides property tax abatements through three programs. An Enterprise Zone program, a Non-Profit Corporation Low-Income Housing program and a Vertical Housing Development Zone program. Enterprise Zone The city's Enterprise Zone (EZ) is authorized by Oregon Revised Statute (ORS) 285C.050 — 285C.250, the Oregon Enterprise Zone Act (the Act). The city created the Tigard EZ through Resolution No. 14-51.This Resolution was approved by City Council on October 28, 2014.The city subsequently expanded the EZ to include a portion of the City of Lake Oswego via Resolution No. 15-48 on October 27, 2015, and renamed the EZ the Tigard/Lake Oswego 113 City of Tigard, Oregon Notes to Basic Financial Statements Enterprise Zone. ORS 285C.255 defines the sunset of all enterprise zone programs, terminating existing programs as of June 30, 2025. The City of Tigard elected to add the following additional incentives and requirements to its program: • Fast tracking the land use review process. • Pre-application conference fees, business registration fees, and sign permit fee are waived by 50 percent. • City Council may extend the standard exemption by up to two more years if a qualifying company increases employment by 10 percent each year and new jobs are compensated (wages plus benefits) at 200 percent of Oregon Minimum Wage. • A minimum investment of$500,000 is required. • Total compensation for 75 percent of company's EZ facility jobs (wages plus benefits) must exceed 200 percent of Oregon minimum wage after one year of employment. • A company must provide benefits to employees that meet or exceed the national average of non-mandated benefits for the size of the company, and the Company must offer sufficient training and advancement opportunities for all employees. • A procurement plan increasing purchasing with Tigard based companies is required. • An application fee totaling one tenth of one percent (.001) of the value of the investment for the qualified property that is proposed in the application. This fee is capped at $25,000. • Companies applying for the two year extended abatement must pay a Community Service Fee. This fee is calculated at a rate of 20 percent of the abated taxes for years four and five. The fee is paid to the city. Applications are reviewed by the city and by the county assessor. Review includes a preauthorization consultation and a review of written application materials. For approved applications, City Council may adopt a resolution finding that; the business is eligible for the exemption under the Act, the size of the proposed investment meets requirements, the employment opportunities provide by the facility or firm and/or the nature of the activities undertaken by the facility or firm within the EZ will significantly enhance the local economy, and the activities of the facility or firm will promote the purposes for which the zone was created and increase employment within the zone. Taxes are abated via an exemption of assessed value from all applicable tax levies. These taxes are abated for a period of three tax years, beginning with the first year the property is placed in service. Applicable tax levies include the permanent rate levies and operating levies for all taxing districts that include the property. Additionally, any community service fees received by the city from participating businesses are restricted for use on economic development activities. 114 City of Tigard, Oregon Notes to Basic Financial Statements Recipients of the EZ tax abatement make commitments to the city in their application in a number of areas, including statutory requirements for an increase in full-time employment of 10 percent, no concurrent job losses in Oregon within 30 miles of the EZ, maintenance of employment levels during the exemption period, and first-source agreements with local job training providers. For the fiscal year ended June 30, 2021, the city's property tax revenues were reduced by an estimated $16,000 as a result of the EZ program. For the fiscal year ended June 30, 2021,the Tigard Urban Renewal's property tax revenues were reduced by an estimated $860 as a result of the EZ program. If necessary, abated taxes can be reassessed for reasons defined in ORS 285C.240. Reasons for reassessment include; sale of a qualifying business or subject property outside of the EZ, reduction in business operations and/or closure of a business, failure of a business to meet statutory or city requirements, and/or if they use the property for ineligible activities. At disqualification, the County Assessor will assess any previously abated taxes in a subsequent assessment year, less any amounts that have been paid to the city as a community service fee. Non-Profit Low Income Housing Limited Tax Exemption The city's Non-Profit Low Income Housing Limited Tax Exemption (NPLTE) program is authorized by ORS 307.540-548. In 1996,the city's NPLTE program was established by Tigard Municipal Code 3.50, Non-Profit Corporation Low-Income Housing, Ordinance No. 96-34. The program allows exemption from property taxes for Non-Profit Corporations owning a low-income housing facility that meet specific criteria. The criteria include: • The property is owned or being purchased by a corporation that is exempt from income taxes under section 501(c) (3) or (4) of the Internal Revenue Code as amended before December 1, 1984. • Upon liquidation,the assets of the corporation are required to be applied first in payment of all outstanding obligations, and the balance remaining, in cash and in kind, to be distributed to corporations exempt from taxation and operated exclusively for religious, charitable, scientific, literary or educational purposes or to the State of Oregon. • The property is occupied by low-income persons. • The property or portion of the property receiving the exemption, is actually and exclusively used for the purposes described in section 501(c) (3) or (4) of the Internal Revenue Code as amended before December 1, 1984. • The application for exemption has been approved by the City Council. To qualify for the exemption,the corporation shall file an application for exemption with the governing body for each assessment year of exemption. The application shall be filed on or 115 City of Tigard, Oregon Notes to Basic Financial Statements before March 1, of the assessment year for which the exemption is applied for, except that when the property designated is acquired after March 1 and before July 1, the claim for that year shall be filed within 30 days after the date of acquisition. For the fiscal year ended June 30, 2021, the city's property tax revenues were reduced by an estimated $121,000 as a result of this program. For fiscal year ended June 30, 2021 the Tigard Urban Renewal's property tax revenues were reduced by an estimated $8,000 as a result of this program. Vertical Housing Development Zone The city's Vertical Housing Development Zone (VHDZ) tax exemption program is authorized by ORS 285C.450 to 285C.480 and 307.864. This ORS allows municipalities to create special districts to encourage mixed-use development. In 2014, the city passed Resolution No. 14- 38 establishing this program. VHDZ allows for partial exemption from property taxes for mixed use multi-story development in core areas of the city. VHDZ encourages development which supports downtown revitalization. Areas identifies for this program include Tigard's Town Center and parts of the Tigard Triangle. This exemption allows for a decrease in total property tax, for new construction, of 20 percent per floor, exemption applies to new construction on the first four floors of residential development built above a non-residential ground floor. Taxes are abated via an exemption of assessed value from applicable tax levies for a period of 10 successive years, beginning in the year following the year the project was completed and would have otherwise been added to the tax rolls. For the fiscal year ended June 30, 2021, the city's property tax revenues were reduced by an estimated $27,000 as a result of this program. For the fiscal year ended June 30, 2021 the Tigard Urban Renewal's property tax revenues were reduced by an estimated $2,000 as a result of this program. For the fiscal year ended June 30, 2021, the city abated property taxes totaling $165,000 under the three programs. For fiscal year ended June 30, 2021 the Tigard Urban Renewal's abated property taxes totaling $10,960 under the three programs. FY 2021 Taxes Abated Tigard Urban Tax Abatement Program City of Tigard Renewal Enterprise Zone $ 16,000 $ 960 Non-Profit Low Income Housing Limited Tax Exemption 121,000 8,000 Vertical Housing Development Zone 28,000 2,000 Total $ 165,000 $ 10,960 116 City of Tigard, Oregon Notes to Basic Financial Statements 12.Transactions with Clean Water Services of Washington County The city collects charges for treatment of city sewage and stormwater on behalf of the Clean Water Services of Washington County and remits all collections to Clean Water Services, except for 20.56 percent of sewer service charges collected, 3.98 percent of sewer connection charges collected and 75.03 percent of stormwater service charges collected, in accordance with an agreement between the city and Clean Water Services. During fiscal year 2021 the city paid $15,362,991 to Clean Water Services under this agreement. The net amount retained by the city is reported as revenue in the enterprise funds in the proprietary funds Statement of Revenues, Expenses and Changes in Fund Net Position. Revenues are reported net because the city acts in a fiduciary capacity on behalf of Clean Water Services. 13. Risk Management The city is exposed to various risks of loss related to torts; employment liability;theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and others; and natural disasters. The city is insured through a member trust consisting of cities and counties in Oregon and purchases public entity insurance through the trust to deal with liability risks with nominal deductibles. Employee injuries are insured through SAIF, the State Accident Insurance Fund. Settled claims resulting from these risks have not exceeded public entity insurance coverage in any of the past three fiscal years and there has not been any material change to insurance coverages from the previous year. 14.Joint Venture Willamette Intake Facilities Commission Willamette Intake Facilities Commission (the Commission or WIF) was organized in April 2018 under Oregon Revised Statute (ORS) 190 and was established by an agreement between the cities of Wilsonville, Hillsboro, Tigard, Beaverton, Sherwood, and Tualatin Valley Water District. The Commission is governed by a six-member board,with one representative appointed by each member jurisdiction. The purpose of the Commission is to provide for the ownership, management, and operation of the Willamette intake facilities which are used to withdraw and transmit water to the parties. The Commission is managed by Tualatin Valley Water District. Expenses are allocated on a unit basis by the Commission. Each joint venturer's apportioned share of the general administration expenses is determined by the following formula: 25 percent of the administrative costs for the fiscal year is divided evenly among the Commission's membership; the remainder is divided among the Commission membership according to their percentage share of the capacity ownership in the intake facilities. 117 City of Tigard, Oregon Notes to Basic Financial Statements Operations, maintenance, and repair expenses that are a result of use of the facilities are allocated based on each party's proportionate use of the WIF. Operations, maintenance, and repair expenses unrelated to usage will be allocated based on each party's proportionate ownership of the WIF. The following percentages were in effect at June 30, 2021: Tualatin Valley Water District 39.40 City of Wilsonville 16.67 City of Sherwood 6.47 City of Tigard 10.00 City of Hillsboro 24.13 City of Beaverton 3.33 The investment in joint venture is recorded at cost in the Water Fund, and the city's share of the annual net income or loss is used to adjust the ending balance of the city's equity interest in the joint venture. Financial statements for the WIF may be obtained from Tualatin Valley Water District, Finance Department at 1850 SW 170th Avenue, Beaverton, Oregon 97003. At June 30, 2021 the city's investment in the WIF was: Investment in joint venture at June 30, 2020 $ 1,060,472 Contributions 764,740 Loss for the year (32,454) Investment in joint venture at June 30, 2021 $ 1,792,758 15. Lake Oswego/Tigard Water Partnership The city has an intergovernmental agreement (IGA) with the City of Lake Oswego for the Lake Oswego/Tigard Water Partnership (Partnership). The city's investment in the Partnership is estimated at approximately $170 million. The Partnership built a water system that has the capacity to produce 38 million gallons of usable water per day (MGD). Tigard's portion is 18 of the 38 MGD, or 47.37 percent. While the Partnership is still operating under the original agreement, recently the cities have adopted a Lake Oswego/Tigard Water Partnership Operations plan.The cities are also discussing a long-term governance agreement. Assets Upon completion of the multi-year project Lake Oswego conveyed to Tigard an undivided proportionate interest of the supply facilities and property. The city then recorded its share of capital assets in land, land improvements, building and improvements, water system infrastructure and equipment. Depreciation for the depreciable assets is based on each asset's respective useful life. 118 City of Tigard, Oregon Notes to Basic Financial Statements Debt As stated in Note 6, the city issued $97.7 million in revenue bonds during fiscal year 2012 to partially fund the project. The city issued an additional $30.8 million in revenue bonds in fiscal year 2015 for the continuing water infrastructure needs. In 2020 $86.6 million in revenue refunding bonds were issued. As of June 30, 2021, the outstanding debt amount for the project is $125,917,501. Operating costs and future capital expense Operating costs and future capital expenses are based on different criteria for each section of the system: Allocation Percentage Water System Section Fixed Cost Variable Cost Water treatment plant, pipe infrastructure, raw water intake facility 47.37% Based on usage Waluga Resevoir 51.43% Based on usage Pipeline after Waluga Resevoir, Bonita pump station 100.00% 100.00% The monthly operating costs paid to Lake Oswego are based on an annual budget for fixed costs and projected usage for variable costs. Annually, a true up is completed based on actual usage. The city exclusively operates the Bonita pump station and therefore does not pay Lake Oswego for those costs. For the fixed costs associated with the Waluga Reservoir,Tigard's portion is 1.8 of the 3.5 million gallon capacity, or 51.43 percent. The revenue and expenses associated with ongoing operations of the system are recorded within water operations. 16. Commitments The city has entered into various contracts with outstanding commitments at year end. The contracts are for various projects and will be paid for with debt proceeds, property taxes, gas taxes, and various other sources. The major commitments outstanding at June 30, 2021 are as follows: 119 City of Tigard, Oregon Notes to Basic Financial Statements Project Commitment Pavement Management Program Design $ 221,895 Main Street Phase 2 Design 224,713 ASR Wells Rehabilitation 142,606 Cach Reservoir& Pump Station 206,476 OR 99W Streetlight 109,219 Ramp Improvements 250,000 17. Contingent Liabilities The city is a defendant in various lawsuits, nearly all of these lawsuits are covered by the city's insurance policies. Although the outcome of these lawsuits is not presently determinable, it is the opinion of management that resolution of these matters will not have a material adverse effect on the financial condition of the city. Claims not covered by the city's insurer would be recognized when it appeared probable that the loss had been incurred and the amount could be reasonably estimated. 18. Subsequent Event On September 29, 2021 the city issued $4,644,800 in Town Center Development Agency Urban Renewal and Redevelopment bonds and $4,581,600 in City of Tigard Full Faith and Credit bonds for the city's urban renewal areas.These bond issuances will be used to fund projects within the City Center Urban Renewal Area and the Tigard Triangle Urban Renewal Area. 120 Required Supplementary Information 122 CITY OF TIGARD,OREGON GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Taxes $ 17,753,872 $ 17,753,872 $ 17,778,222 $ 24,350 Licenses and permits 1,133,252 1,133,252 1,404,096 270,844 Intergovernmental revenues 7,428,909 10,810,077 10,289,174 (520,903) Charges for services 243,132 260,132 316,752 56,620 Fines and forfeitures 2,258,261 2,258,261 1,363,215 (895,046) Franchise fees 6,615,979 6,615,979 6,980,858 364,879 Interest earnings 400,900 400,900 263,812 (137,088) Net increase(decrease)in investment fair value - - (94,591) (94,591) Miscellaneous revenues 356,432 356,432 140,282 (216,150) Total revenues 36,190,737 39,588,905 38,441,820 (1,147,085) EXPENDITURES Community services 26,625,243 30,185,079 27,429,523 2,755,556 Community development 4,190,174 4,911,090 4,312,230 598,860 Policy and administration 1,875,778 1,875,705 1,029,244 846,461 Total expenditures 32,691,195 36,971,874 32,770,997 4,200,877 Change in fund balance before other financing sources(uses) 3,499,542 2,617,031 5,670,823 3,053,792 OTHER FINANCING SOURCES(USES) Transfer in 354,000 354,000 193,091 (160,909) Transfer out (2,673,115) (2,961,615) (2,925,787) 35,828 Contingency (1,650,000) (677,389) - 677,389 Reserve for future expenditures (25,510,850) (25,486,650) - 25,486,650 Total other financing(uses) (29,479,965) (28,771,654) (2,732,696) 26,038,958 Change in fund balance (25,980,423) (26,154,623) 2,938,127 29,092,750 Fund balance-beginning of the year 25,980,423 26,154,623 27,097,616 942,993 Fund balance-end of the year $ - $ - 30,035,743 $ 30,035,743 Reconciliation of budgetary fund balance to GAAP basis net position: Interfund Loan 883,981 Total net position,GAAP basis $ 30,919,724 123 City of Tigard Oregon Schedule of the City's Proportionate Share of the Net Pension Liability(Asset) Oregon Public Employees Retirement System Last Eight Fiscal Years 1,2 2021 2020 2019 City's proportion of the net pension liability (asset) 0.067873% 0.075025% 0.073322% City's proportionate share of the net pension liability (asset) $ 14,812,243 $ 12,977,450 $ 11,107,323 City's covered payroll $ 6,307,694 $ 6,331,572 $ 5,941,342 City's proportionate share of the net pension liability (asset) as a percentage of its covered payroll 234.83% 204.96% 186.95% Plan fiduciary net position as a percentage of the total pension liability 75.79% 80.23% 82.07% 110-year trend information required by GASB Statement 68 will be presented prospectively 2 Amounts presented are for the measurement period reported during the fiscal year, which for FY 2021 is July 1, 2019 -June 30, 2020. NOTES TO SCHEDULE Changes in Benefit Terms Senate Bill 822 was enacted during the 2013 Oregon regular legislative session to lower the cap on the cost-of-living adjustment (COLA) from 2 percent to 1.5 percent for 2013, and eliminated the tax remedy benefit for recipients who do not pay Oregon state income taxes because they do not reside in Oregon. Senate Bill 861 was enacted during the 2013 Oregon special legislative session, further lowering the post-retirement COLA for years beyond 2013 to 1.25% on the first $60,000 of annual benefit and 0.15% on annual benefits above $60,000. The combined impact of these Senate Bills are reflected in the June 30, 2014 total pension liability, resulting in a net pension asset reported by the City for fiscal year 2015. The Oregon Supreme Court (Court) ruled in Moro v. State of Oregon on April 30, 2015 that certain provisions of Senate Bill 822 and Senate Bill 861 were unconstitutional. The Court ruled that benefits could be modified prospectively, but not retrospectively. As a result, those who retired before the bills were passed will continue to receive a COLA tied to the Consumer Price Index that normally results in a 2% increase annually. OPERS members who have accrued benefits before and after the effective dates of the 2013 legislation will have a blended COLA rate when they retire. The impact of the Court's decision is reflected in the June 30, 2015 total pension liability, which contributes to the net pension liability reported by the City for fiscal year 2016. 124 2018 2017 2016 2015 2014 0.072960% 0.074719% 0.081488% 0.074022% 0.074022% $ 9,835,041 $ 11,216,998 $ 4,678,602 $ (1,677,869) $ 3,777,455 $ 6,280,408 $ 6,610,002 $ 6,187,208 $ 6,025,900 $ 5,426,379 156.60% 169.70% 75.62% -27.84% 69.61% 83.12% 80.53% 91.88% 103.59% 91.97% Change in Assumptions The PERS Board adopted assumption changes that were used to measure the June 30, 2016 total pension liability, which contributes to the net pension liability reported by the city for fiscal year 2017. The changes include lowering the long-term expected rate of return to 7.50 percent and lowering the assumed inflation to 2.50 percent. In addition,the healthy mortality assumption was changed to reflect an updated mortality improvement scale for all groups, and assumptions were updated for merit increases, unused sick leave, and vacation pay. On July 28, 2017, the OPERS Board lowered the assumed earnings rate from 7.50 percent to 7.20 percent. The new assumed earnings rate affected rates on July 1, 2018. 125 City of Tigard, Oregon Schedule of the City's Contributions Oregon Public Employees Retirement System Last Eight Fiscal Years' 2021 2020 2019 Contractually required contributions $ 1,344,480 $ 1,302,699 $ 1,039,691 Contributions in relation to the contractually required contribution (1,344,480) (1,302,699) (1,039,691) Contribution deficiency (excess) $ - $ - $ - City's covered payroll $ 6,960,595 $ 6,307,694 $ 6,331,572 Contributions as a percentage of covered payroll 19.32% 20.65% 16.42% 1 10-year trend information required by GASB Statement 68 will be presented prospectively NOTES TO SCHEDULE Actuarial Assumptions and Methods Used to Actuarially Determine Contributions: Actuarial Valuation December 31, 2018 December 31, 2017 December 31, 2016 Effective July 2020 -June 2021 July 2019 -June 2020 July 2018 -June 2019 Actuarial cost method: Entry Age Normal Entry Age Normal Entry Age Normal Actuarial valuation method: Market Value Market Value Market Value Actuarial assumption: Inflation rate 2.50 Percent 2.50 Percent 2.50 Percent Projected salary increases 3.50 percent 3.50 percent 3.50 percent Investment rate of return 7.20 percent 7.20 percent 7.20 percent 126 2018 2017 2016 2015 2014 $ 937,027 $ 787,306 $ 761,228 $ 782,812 $ 722,108 (937,027) (787,306) (761,228) (782,812) (722,108) $ - $ - $ - $ - $ $ 5,941,342 $ 6,280,408 $ 6,610,002 $ 6,187,208 $ 6,025,900 15.77% 12.54% 11.52% 12.65% 11.98% December 31, 2015 December 31, 2013 December 31, 2011 July 2017 -June 2018 July 2015 -June 2017 July 2013 -June 2015 Entry Age Normal Entry Age Normal Projected Unit Credit Market Value Market Value Market Value 2.50 Percent 2.75 percent 2.75 percent 3.50 percent 3.75 percent 3.75 percent 7.50 percent 7.75 percent 8.00 percent 127 City of Tigard,Oregon Schedule of the Changes in the City's Total OPEB Liability and Related Ratios Implicit Rate Subsidy Plan Last Four Fiscal Years 1,2 2021 2020 2019 2018 Total OPEB Liability(in 1,000s) Service cost $ 121 $ 109 $ 117 $ 100 Interest 53 52 54 43 Changes in benefit terms - - - - Economic/demographic losses (189) - 15 - Changes of assumptions or other inputs (19) 46 (292) (96) Benefit payments (51) (59) (49) (59) Net change in OPEB liability (85) 148 (155) (12) Total OPEB Liability- beginning 1,416 1,268 1,423 1,435 Total OPEB Liability-ending $ 1,331 $ 1,416 $ 1,268 $ 1,423 Covered-employee payroll $ 24,881 $ 23,214 $ 21,705 $ 21,438 Total OPEB Liability as a %of covered payroll 5.35% 6.10% 5.84% 6.64% 110-year trend information required by GASB Statement 75 will be presented prospectively 2 Amounts presented are for the measurement period reported during the fiscal year, which for FY 2021 is July 1, 2019-June 30, 2020 128 City of Tigard,Oregon Schedule of the City's Proportionate Share of the Net OPEB Liability(Asset) Oregon Public Employees Retirement System,Retiremen Health Insurance Account Last Five Fiscal Years 1,2 2021 2020 2019 2018 2017 City's proportion of the net OPEB liability(asset) 0.0345% 0.0607% 0.0579% 0.0613% 0.0675% City's proportionate share of the net OPEB liability(asset) $ (70,282) $ (117,368) $ (64,649) $ (25,563) $ 18,323 City's covered payroll $ 6,307,694 $ 6,331,572 $ 5,941,342 $ 6,280,408 $ 6,610,002 City's proportionate share of the net OPEB liability(asset) as a percentage of its covered payroll -1.1% -1.9% -1.1% -0.4% 0.3% Plan fiduciary net position as a percentage of the total OPEB liability 150.1% 144.4% 124.0% 108.9% 80.5% 110-year trend information required by GASB Statement 75 will be presented prospectively 2 Amounts presented are for the measurement period reported during the fiscal year,which for FY 2021 is July 1,2019- June 30,2020 129 City of Tigard,Oregon Schedule of the City's Contributions Oregon Public Employees Retirement System,Retirement Health Insurance Account Last Five Fiscal Years' 2021 2020 2019 2018 2017 Contractually required contributions $ 2,194 $ 2,463 $ 30,103 $ 29,366 $ 31,820 Contributions in relation to the contractually required contribution (2,194) (2,463) (30,103) (29,366) (31,820) Contribution deficiency(excess) $ - $ - $ - $ - $ - City's covered payroll $ 6,960,595 $ 6,307,694 $ 6,331,572 $ 5,941,342 $ 6,280,408 Contributions as a percentage of covered payroll 0.03% 0.04% 0.48% 0.49% 0.51% 110-year trend information required by GASB Statement 75 will be presented prospectively NOTES TO SCHEDULE Actuarial Assumptions and Methods Used to Actuarially Determine Contributions: Actuarial Valuation December 31,2018 December 31,2017 December 31,2016 December 31,2015 December 31,2013 Effective July 2020-June 2021 July 2019-June 2020 July 2018-June 2019 July 2017-June 2018 July 2015-June 2017 Actuarial cost method: Entry Age Normal Entry Age Normal Entry Age Normal Entry Age Normal Entry Age Normal Actuarial valuation method: Market Value Market Value Market Value Market Value Market Value Actuarial assumption: Inflation rate 2.50 Percent 2.50 percent 2.50 percent 2.50 percent 2.75 percent Projected salary increases 3.50 percent 3.50 percent 3.50 percent 3.50 percent 3.75 percent Investment rate of return 7.20 percent 7.20 percent 7.20 percent 7.50 percent 7.75 percent 130 Other Supplementary Information 131 132 CITY OF TIGARD,OREGON COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30,2021 Special Debt Service Capital Project Revenue Funds Funds Funds Total ASSETS Cash and investments $ 2,538,436 $ - $ 3,795,564 $ 6,334,000 Accounts receivable 891,286 - 1,689,748 2,581,034 Property taxes receivable 20,951 45,105 - 66,056 Assessment liens receivable - 123,089 3,413 126,502 Interest receivable - 9,919 1,766 11,685 Restricted cash and investments 25,751,959 4,407,238 42,595,902 72,755,099 Total assets $ 29,202,632 $ 4,585,351 $ 48,086,393 $ 81,874,376 LIABILITIES Accounts payable and accrued liabilities $ 733,727 $ - $ 1,099,876 $ 1,833,603 Deposits 1,398,477 - - 1,398,477 Due to others 137,262 - - 137,262 Advances from other funds - - 986,301 986,301 Unearned revenue 50,000 - - 50,000 Total liabilities 2,319,466 - 2,086,177 4,405,643 DEFERRED INFLOWS OF RESOURCES Resources not yet available: Property taxes 13,848 43,242 - 57,090 Transportation refund credits 35,857 - - 35,857 Special assessment liens - 123,089 3,413 126,502 Total deferred inflows of resources 49,705 166,331 3,413 219,449 FUND BALANCES Restricted for: Street maintenance and improvements 9,537,715 - 25,495,675 35,033,390 Tourism 358,547 - - 358,547 Affordable housing 748,140 - - 748,140 Debt service - 4,419,020 - 4,419,020 Park development and improvements - - 12,960,369 12,960,369 Underground utilities - - 558,124 558,124 Building inspection 10,326,188 - - 10,326,188 Police services 1,457,236 - - 1,457,236 Library improvements 609,144 - - 609,144 Urban development and improvements - - 3,122,888 3,122,888 Committed for: Street maintenance and improvements - - 3,043,724 3,043,724 Urban forestry 1,172,230 - - 1,172,230 Assigned to: City facilities - - 938,351 938,351 Park and recreation 2,624,261 - - 2,624,261 Unassigned - - (122,328) (122,328) Total fund balances 26,833,461 4,419,020 45,996,803 77,249,284 Total liabilities,deferred inflows of resources and fund balances $ 29,202,632 $ 4,585,351 $ 48,086,393 $ 81,874,376 133 CITY OF TIGARD,OREGON COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS for the year ended June 30,2021 Special Debt Service Capital Project Revenue Funds Funds Funds Total REVENUES Taxes $ 8,848,538 $ 3,779,384 $ - $ 12,627,922 Special assessments - 90,251 - 90,251 Licenses and permits 2,301,126 - - 2,301,126 Intergovernmental revenues 140,454 - 2,206,365 2,346,819 Charges for services 1,995,000 - 3,241,473 5,236,473 System development charges - - 5,124,725 5,124,725 Fines and forfeitures 157,898 - - 157,898 Interest earnings 188,782 60,773 333,975 583,530 Net increase(decrease)in investment fair value (60,036) (4,747) (176,069) (240,852) Miscellaneous revenues 54,102 26,335 390,603 471,040 Total revenues 13,625,864 3,951,996 11,121,072 28,698,932 EXPENDITURES Community services 1,303,404 - - 1,303,404 Public works 6,881,610 - - 6,881,610 Community development 2,179,761 - 335,731 2,515,492 Debt service: Principal - 2,205,000 - 2,205,000 Interest - 568,882 - 568,882 Capital outlay - - 9,930,747 9,930,747 Total expenditures 10,364,775 2,773,882 10,266,478 23,405,135 Changes in fund balance before other financing sources(uses) 3,261,089 1,178,114 854,594 5,293,797 OTHER FINANCING SOURCES(USES) Transfer in 2,769,500 - 5,158,500 7,928,000 Transfer out (2,005,043) - (4,103,910) (6,108,953) Total other financing sources(uses) 764,457 - 1,054,590 1,819,047 Changes in fund balance 4,025,546 1,178,114 1,909,184 7,112,844 Fund Balance-Beginning of the year 22,807,915 3,240,906 44,087,619 70,136,440 Fund Balance-End of the year $ 26,833,461 $ 4,419,020 $ 45,996,803 $ 77,249,284 134 Special Revenue Funds The balance sheet and statement of revenues, expenditures and changes in fund balance of the non-major special revenue funds are reported in the combining governmental fund statements. Fund statements for the major special revenue funds are reported in the basic financial statements. Schedules of revenues, expenditures and changes in fund balance — budget and actual — are also presented here for each special revenue fund. Gas Tax Fund–This fund records shared revenues from the State of Oregon and Washington County taxes on sale of motor vehicle fuel. The city uses these revenues to fund various construction, reconstruction, improvements, repairs, maintenance and operation of public highways, roads and streets. City Gas Tax Fund–This fund accounts for revenues generated from Tigard's local gas tax and funds projects for transportation improvements. Transient Lodging Tax Fund–This fund accounts for revenues generated from Tigard's local hotel/motel tax and funds projects to promote tourism. Construction Excise Tax Fund–This fund accounts for revenues generated from Tigard's construction excise tax and funds projects to promote affordable housing. Electrical Inspection Fund–This fund accounts for fees charged for permits, plan check fees and inspection of electrical improvements. Building Fund–This fund accounts for fees charged for building inspection and plan review activities. Criminal Forfeiture Fund–This fund accounts for funds and property seized from criminals. Urban Forestry Fund–This fund accounts for funds collected from developers in lieu of preserving trees, which the city can use to plant trees in public right-of-way and other public properties. Parks Utility Fund–This fund accounts for fees charged for the maintenance and operation of city parks, trails, and green spaces. Police Levy Fund–This fund accounts for the local option property tax levy that was passed to fund addition police operations. Library Fund–This fund accounts for the amounts received from several donations and bequests for various special projects and artwork. 135 136 No content appears on this page by design. 137 CITY OF TIGARD,OREGON NON MAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30,2021 City Gas Transient Construction Electrical Gas Tax Tax Lodging Tax Excise Tax Inspection Fund Fund Fund Fund Fund ASSETS Cash and investments $ - $ - $ - $ - $ - Accounts receivable 494,578 79,943 60,869 - 243 Property taxes receivable - - - - - Restricted cash and investments 6,824,987 3,149,001 297,678 829,788 404,758 Total assets $ 7,319,565 $ 3,228,944 $ 358,547 $ 829,788 $ 405,001 LIABILITIES Accounts payable $ 143,340 $ - $ - $ - $ - Due to others - - - 81,648 603 Deposits 831,597 - - - - Unearned revenue - - - - - Total liabilities 974,937 - - 81,648 603 DEFERRED INFLOWS OF RESOURCES Transportation refund credits 23,493 12,364 - - - Property taxes - - - - - Total deferred inflow of resources 23,493 12,364 - - - FUND BALANCE Restricted for: Street maintenance and improvements 6,321,135 3,216,580 - - - Tourism - - 358,547 - - Affordable housing - - - 748,140 - Building inspection - - - - 404,398 Police services - - - - - Library improvements - - - - - Committed for: Urban forestry - - - - - Assigned for: Park and recreation - - - - - Total fund balances 6,321,135 3,216,580 358,547 748,140 404,398 Total liabilities and fund balances $ 7,319,565 $ 3,228,944 $ 358,547 $ 829,788 $ 405,001 138 Criminal Urban Parks Police Building Forfeiture Forestry Utility Levy Library Fund Fund Fund Fund Fund Fund Total $ - $ - $ - $ 2,538,436 $ - $ - $ 2,538,436 1,941 - 960 248,574 4,178 - 891,286 20,951 - 20,951 10,306,254 660,823 1,738,150 - 881,256 659,264 25,751,959 $ 10,308,195 $ 660,823 $ 1,739,110 $ 2,787,010 $ 906,385 $ 659,264 $ 29,202,632 $ 386,405 $ 920 $ - $ 162,749 $ 40,193 $ 120 $ 733,727 55,011 - - - - 137,262 566,880 - - - 1,398,477 - 50,000 50,000 386,405 55,931 566,880 162,749 40,193 50,120 2,319,466 - - - - - - 35,857 - - - - 13,848 - 13,848 - - - - 13,848 - 49,705 - - - - - - 9,537,715 - - - - - - 358,547 - - - - - 748,140 9,921,790 - - - - - 10,326,188 604,892 - - 852,344 - 1,457,236 - - - - - 609,144 609,144 - - 1,172,230 - - - 1,172,230 2,624,261 - - 2,624,261 9,921,790 604,892 1,172,230 2,624,261 852,344 609,144 26,833,461 $ 10,308,195 $ 660,823 $ 1,739,110 $ 2,787,010 $ 906,385 $ 659,264 $ 29,202,632 139 CITY OF TIGARD,OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE for the year ended June 30,2021 City Gas Transient Construction Electrical Gas Tax Tax Lodging Tax Excise Tax Inspection Fund Fund Fund Fund Fund REVENUES Taxes $ - $ - $ - $ - $ - Gas tax 5,129,164 - - - - City gas tax - 695,284 - - - Hotel/Motel tax - - 324,614 - - Construction excise tax - - - 628,371 - Licenses and permits 9,022 - - - 242,393 Charges for services - - - - - Intergovernmental revenues 26,485 - - - - Fines and forfeitures - - - - - Tree replacement revenue - - - - - Interest earnings 49,568 22,004 5,691 2,608 3,380 Net increase(decrease)in investment fair value (9,958) (8,244) (5,100) 3,212 (1,011) Miscellaneous revenues 44,140 - - - - Total revenues 5,248,421 709,044 325,205 634,191 244,762 EXPENDITURES Community services - - - - - Public works 3,088,969 - - - - Community development - - - - - Total expenditures 3,088,969 - - - - Changes in fund balance before other financing sources(uses) 2,159,452 709,044 325,205 634,191 244,762 OTHER FINANCING SOURCES(USES) Transfer in 226,000 - - - - Transfer out (765,057) (166,032) (718,961) (1,000) (253,978) Total other financing sources(uses) (539,057) (166,032) (718,961) (1,000) (253,978) Changes in fund balance 1,620,395 543,012 (393,756) 633,191 (9,216) Fund balance-Beginning of the year 4,700,740 2,673,568 752,303 114,949 413,614 Fund balance-End of the year $ 6,321,135 $ 3,216,580 $ 358,547 $ 748,140 $ 404,398 140 Criminal Urban Parks Police Building Forfeiture Forestry Utility Levy Library Fund Fund Fund Fund Fund Fund Total $ - $ - $ - $ - $ 2,071,105 $ - $ 2,071,105 - - - - - - 5,129,164 - - - - - - 695,284 - - - - - - 324,614 - - - - - - 628,371 2,049,711 - - - - - 2,301,126 - - - 1,830,277 - - 1,830,277 77,186 - - 34,098 2,685 - 140,454 157,898 - - - - 157,898 - - 164,723 - - - 164,723 76,203 3,967 13,633 4,353 1,762 5,613 188,782 (34,184) 1,971 (4,907) (3,880) 3,430 (1,365) (60,036) 3,960 - - 6,002 - - 54,102 2,172,876 163,836 173,449 1,870,850 2,078,982 4,248 13,625,864 76,766 - - 1,226,638 - 1,303,404 - - 3,792,641 - - 6,881,610 2,179,761 - - - - - 2,179,761 2,179,761 76,766 - 3,792,641 1,226,638 - 10,364,775 (6,885) 87,070 173,449 (1,921,791) 852,344 4,248 3,261,089 250,000 - - 2,293,500 - - 2,769,500 - (15) (29,667) (70,333) - - (2,005,043) 250,000 (15) (29,667) 2,223,167 - - 764,457 243,115 87,055 143,782 301,376 852,344 4,248 4,025,546 9,678,675 517,837 1,028,448 2,322,885 - 604,896 22,807,915 $ 9,921,790 $ 604,892 $ 1,172,230 $ 2,624,261 $ 852,344 $ 609,144 $ 26,833,461 141 CITY OF TIGARD,OREGON GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES State gas tax $ 3,930,000 $ 3,930,000 $ 4,022,629 $ 92,629 County gas tax 985,000 985,000 1,106,535 121,535 Licenses and permits 65,965 65,965 9,022 (56,943) Intergovernmental revenues - - 26,485 26,485 Interest earnings 82,400 82,400 49,568 (32,832) Net increase(decrease)in investment fair value - - (9,958) (9,958) Miscellaneous revenues 62,818 62,818 44,140 (18,678) Total revenues 5,126,183 5,126,183 5,248,421 122,238 EXPENDITURES Public works 3,576,621 3,686,384 3,088,969 597,415 Change in fund balance before other financing sources(uses) 1,549,562 1,439,799 2,159,452 719,653 OTHER FINANCING SOURCES(USES) Transfer in 226,000 301,000 226,000 (75,000) Transfer out (1,196,946) (1,326,946) (765,057) 561,889 Contingency (200,000) (146,170) - 146,170 Reserve for future expenditures (2,955,626) (3,105,693) - 3,105,693 Total other financing(uses) (4,126,572) (4,277,809) (539,057) 3,738,752 Change in fund balance (2,577,010) (2,838,010) 1,620,395 4,458,405 Fund balance-Beginning of the year 2,577,010 2,838,010 4,700,740 1,862,730 Fund balance-End of the year $ - $ - $ 6,321,135 $ 6,321,135 142 CITY OF TIGARD,OREGON CITY GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES City gas tax $ 875,000 $ 875,000 $ 695,284 $ (179,716) Interest earnings 38,700 38,700 22,004 (16,696) Net increase(decrease)in investment fair value - - (8,244) (8,244) Miscellaneous revenues 10,000 10,000 - (10,000) Total revenues 923,700 923,700 709,044 (214,656) OTHER FINANCING SOURCES(USES) Transfer out (566,476) (566,476) (166,032) 400,444 Reserve for future expenditures (2,324,546) (2,324,546) - 2,324,546 Total other financing sources(uses) (2,891,022) (2,891,022) (166,032) 2,724,990 Change in fund balance (1,967,322) (1,967,322) 543,012 2,510,334 Fund balance-Beginning of the year 1,967,322 1,967,322 2,673,568 706,246 Fund balance-End of the year $ - $ - $ 3,216,580 $ 3,216,580 143 CITY OF TIGARD,OREGON TRANSIENT LODGING TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Hotel/Motel tax $ 565,000 $ 565,000 $ 324,614 $ (240,386) Interest earnings 4,800 4,800 5,691 891 Net increase(decrease)in investment fair value - - (5,100) (5,100) Total revenues 569,800 569,800 325,205 (244,595) OTHER FINANCING SOURCES(USES) Transfer out (662,602) (883,102) (718,961) 164,141 Reserve for future expenditures (836,525) (626,525) - 626,525 Total other financing sources(uses) (1,499,127) (1,509,627) (718,961) 790,666 Change in fund balance (929,327) (939,827) (393,756) 546,071 Fund balance-Beginning of the year 929,327 939,827 752,303 (187,524) Fund balance-End of the year $ - $ - $ 358,547 $ 358,547 144 CITY OF TIGARD,OREGON CONSTRUCTION EXCISE TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Construction excise tax $ 450,000 $ 450,000 $ 628,371 $ 178,371 Interest earnings 4,000 4,000 2,608 (1,392) Net increase(decrease)in investment fair value - - 3,212 3,212 Total revenues 454,000 454,000 634,191 180,191 EXPENDITURES Development services 430,000 430,000 - 430,000 Change in fund balance before other financing sources(uses) 24,000 24,000 634,191 610,191 OTHER FINANCING SOURCES(USES) Transfer out (1,000) (1,000) (1,000) - Reserve for future expenditures (73,000) (73,000) - 73,000 Total other financing sources(uses) (74,000) (74,000) (1,000) 73,000 Change in fund balance (50,000) (50,000) 633,191 683,191 Fund balance-Beginning of the year 50,000 50,000 114,949 64,949 Fund balance-End of the year $ - $ - $ 748,140 $ 748,140 145 CITY OF TIGARD,OREGON ELECTRICAL INSPECTION FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Licenses and permits $ 305,825 $ 305,825 $ 242,393 $ (63,432) Interest earnings 8,400 8,400 3,380 (5,020) Net increase(decrease)in investment fair value - - (1,011) (1,011) Total revenues 314,225 314,225 244,762 (69,463) OTHER FINANCING(USES) Transfer out (253,978) (253,978) (253,978) - Reserve for future expenditures (501,968) (501,968) - 501,968 Total other financing(uses) (755,946) (755,946) (253,978) 501,968 Change in fund balance (441,721) (441,721) (9,216) 432,505 Fund balance-Beginning of the year 441,721 441,721 413,614 (28,107) Fund balance-End of the year $ - $ - $ 404,398 $ 404,398 146 CITY OF TIGARD,OREGON BUILDING FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Licenses and permits $ 3,533,704 $ 3,533,704 $ 2,049,711 $ (1,483,993) Intergovernmental revenues 8,281 8,281 77,186 68,905 Interest earnings 150,500 150,500 76,203 (74,297) Net increase(decrease)in investment fair value - - (34,184) (34,184) Miscellaneous revenues 7,500 7,500 3,960 (3,540) Total revenues 3,699,985 3,699,985 2,172,876 (1,527,109) EXPENDITURES Community development 2,260,005 2,279,405 2,179,761 99,644 Change in fund balance before other financing sources(uses) 1,439,980 1,420,580 (6,885) (1,427,465) OTHER FINANCING SOURCES(USES) Transfer in 250,000 250,000 250,000 - Contingency (150,000) (130,600) - 130,600 Reserve for future expenditures (11,909,584) (11,909,584) - 11,909,584 Total other financing sources(uses) (11,809,584) (11,790,184) 250,000 12,040,184 Change in fund balance (10,369,604) (10,369,604) 243,115 10,612,719 Fund balance-Beginning of the year 10,369,604 10,369,604 9,678,675 (690,929) Fund balance-End of the year $ - $ - $ 9,921,790 $ 9,921,790 147 CITY OF TIGARD,OREGON CRIMINAL FORFEITURE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 3,967 $ 3,967 Net increase(decrease)in investment fair value - - 1,971 1,971 Forfeitures - 101,371 157,898 56,527 Total revenues - 101,371 163,836 62,465 EXPENDITURES Community services 277,246 304,396 76,766 227,630 Change in fund balance before other financing sources(uses) (277,246) (203,025) 87,070 290,095 OTHER FINANCING SOURCES(USES) Transfer out (15) (15) (15) - Reserve for future expenditures (9,266) (9,266) - 9,266 Total other financing sources(uses) (9,281) (9,281) (15) 9,266 Change in fund balance (286,527) (212,306) 87,055 299,361 Fund balance-Beginning of the year 286,527 212,306 517,837 305,531 Fund balance-End of the year $ - $ - $ 604,892 $ 604,892 148 CITY OF TIGARD,OREGON URBAN FORESTRY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Tree replacement revenue $ 15,000 $ 15,000 $ 164,723 $ 149,723 Interest earnings 35,200 35,200 13,633 (21,567) Net increase(decrease)in investment fair value - - (4,907) (4,907) Total revenues 50,200 50,200 173,449 123,249 OTHER FINANCING SOURCES(USES) Transfer out (151,947) (151,947) (29,667) 122,280 Reserve for future expenditures (837,040) (837,040) - 837,040 Total other financing sources(uses) (988,987) (988,987) (29,667) 959,320 Change in fund balance (938,787) (938,787) 143,782 1,082,569 Fund balance-Beginning of the year 938,787 938,787 1,028,448 89,661 Fund balance-End of the year $ - $ - $ 1,172,230 $ 1,172,230 149 CITY OF TIGARD,OREGON PARKS UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 1,957,622 $ 1,957,622 $ 1,830,277 $ (127,345) Intergovernmental revenues - 10,276 34,098 23,822 Interest earnings 3,300 3,300 4,353 1,053 Net increase(decrease)in investment fair value - - (3,880) (3,880) Miscellaneous revenues - - 6,002 6,002 Total revenues 1,960,922 1,971,198 1,870,850 (100,348) EXPENDITURES Public works 4,551,954 4,569,770 3,792,641 777,129 Change in fund balance before other financing sources(uses) (2,591,032) (2,598,572) (1,921,791) 676,781 OTHER FINANCING SOURCES(USES) Transfer in 2,293,500 2,293,500 2,293,500 - Transfer out (100,333) (107,833) (70,333) 37,500 Debt proceeds 2,500,000 2,500,000 - (2,500,000) Contingency (125,000) (109,960) - 109,960 Reserve for future expenditures (3,796,445) (3,796,445) - 3,796,445 Total other financing sources(uses) 771,722 779,262 2,223,167 1,443,905 Change in fund balance (1,819,310) (1,819,310) 301,376 2,120,686 Fund balance-Beginning of the year 1,819,310 1,819,310 2,322,885 503,575 Fund balance-End of the year $ - $ - $ 2,624,261 $ 2,624,261 150 CITY OF TIGARD,OREGON POLICE LEVY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Taxes $ 2,193,790 $ 2,193,790 $ 2,071,105 $ (122,685) Grants - - 2,685 2,685 Interest earnings - - 1,762 1,762 Net increase(decrease)in investment fair value - - 3,430 3,430 Total revenues 2,193,790 2,193,790 2,078,982 (114,808) EXPENDITURES Community services 2,185,959 2,185,959 1,226,638 959,321 Changes in fund balance before other financing sources(uses) 7,831 7,831 852,344 844,513 OTHER FINANCING SOURCES(USES) Reserve for future expenditures (7,831) (7,831) - 7,831 Total other financing sources(uses) (7,831) (7,831) - 7,831 Change in fund balance - - 852,344 852,344 Fund balance-Beginning of the year - - - - Fund balance-End of the year $ - $ - $ 852,344 $ 852,344 151 CITY OF TIGARD,OREGON LIBRARY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES: Interest earnings $ 13,000 $ 13,000 $ 5,613 $ (7,387) Net increase(decrease)in investment fair value - - (1,365) (1,365) Total revenue 13,000 13,000 4,248 (8,752) OTHER FINANCING SOURCES(USES) Transfer out (160,000) (160,000) - 160,000 Reserve for future expenditures (356,078) (356,078) - 356,078 Total other financing sources(uses) (516,078) (516,078) - 516,078 Change in fund balance (503,078) (503,078) 4,248 507,326 Fund balance-Beginning of the year 503,078 503,078 604,896 101,818 Fund balance-End of the year $ - $ - $ 609,144 $ 609,144 152 Debt Service Funds The balance sheet and statement of revenues, expenditures and changes in fund balance of the non- major debt service funds are reported in the combining non-major governmental fund statements. Schedules of revenues, expenditures and changes in fund balance — budget and actual — are also presented for each debt service fund. Bancroft Bond Debt Service Fund – This fund accounts for payment of Bancroft improvement bond principal and interest. Revenues are derived from the collection of assessments against benefitted property and interest earnings. General Obligation Debt Service Fund – This fund accounts for payment of general obligation bond principal and interest. Revenues are derived from property taxes and interest earnings. City Center Urban Renewal Debt Service Fund –This fund accounts for principal and interest payments on debt for the City Center Urban Renewal Area and transfers to the City Center Capital Improvement Fund. Revenues are from property taxes and interest earnings. Tigard Triangle Debt Service Fund –This fund accounts for principal and interest payments on debt for the Tigard Triangle Urban Renewal Area and transfers to the Tigard Triangle Improvement Fund. Revenues are from property taxes and interest earnings. 153 154 No content appears on this page by design. 155 CITY OF TIGARD,OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING BALANCE SHEET June 30,2021 Bancroft Bond General City Center Urban Debt Service Obligation Debt Renewal Debt Fund Service Fund Service Fund ASSETS Property taxes receivable $ - $ 39,837 $ 2,594 Assessment liens receivable 123,089 - - Interest receivable - 6,532 1,738 Restricted cash and investments 216,118 1,987,906 1,351,055 Total assets $ 339,207 $ 2,034,275 $ 1,355,387 DEFERRED INFLOWS OF RESOURCES Resources not yet available: Special assessments/liens 123,089 - Property taxes - 29,309 7,474 Total deferred inflows of resources 123,089 29,309 7,474 FUND BALANCES Restricted for debt service 216,118 2,004,966 1,347,913 Total liabilities,deferred inflows of resources and fund balances $ 339,207 $ 2,034,275 $ 1,355,387 156 Tigard Triangle Debt Service Fund Total $ 2,674 $ 45,105 1,649 124,738 8,270 852,159 4,407,238 $ 856,482 $ 4,585,351 - 123,089 6,459 43,242 6,459 166,331 850,023 4,419,020 $ 856,482 $ 4,585,351 157 CITY OF TIGARD,OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES for the year ended June 30,2021 Bancroft Bond General City Center Urban Debt Service Obligation Debt Renewal Debt Fund Service Fund Service Fund REVENUES Taxes $ - $ 2,372,888 $ 663,795 Collection of bonded assessments 90,251 - - Interest earnings 25,048 24,115 7,647 Net increase(decrease) in investment fair value (11) (7,972) 799 Miscellaneous revenues - 26,335 - Total revenues 115,288 2,415,366 672,241 EXPENDITURES Debt service: Principal - 1,964,000 241,000 Interest - 394,578 169,264 Total expenditures - 2,358,578 410,264 Change in fund balance 115,288 56,788 261,977 Fund balance-Beginning of the year 100,830 1,948,178 1,085,936 Fund balance-End of the year $ 216,118 $ 2,004,966 $ 1,347,913 158 Tigard Triangle Debt Service Fund Total $ 742,701 $ 3,779,384 90,251 3,963 60,773 2,437 (4,747) 26,335 749,101 3,951,996 2,205,000 5,040 568,882 5,040 2,773,882 744,061 1,178,114 105,962 3,240,906 $ 850,023 $ 4,419,020 159 CITY OF TIGARD,OREGON BANCROFT BOND DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Collection of bonded assessments $ 50,000 $ 50,000 $ 90,251 $ 40,251 Interest earnings 31,900 31,900 25,048 (6,852) Net increase(decrease)in investment fair value - - (11) (11) Total revenues 81,900 81,900 115,288 33,388 OTHER FINANCING SOURCES(USES) Reserve for future expenditures (149,881) (149,881) - 149,881 Total other financing sources(uses) (149,881) (149,881) - 149,881 Change in fund balance (67,981) (67,981) 115,288 183,269 Fund balance-Beginning of the year 67,981 67,981 100,830 32,849 Fund balance-End of the year $ - $ - $ 216,118 $ 216,118 160 CITY OF TIGARD,OREGON GENERAL OBLIGATION DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Taxes $ 2,684,141 $ 2,684,141 $ 2,372,888 $ (311,253) Interest earnings 37,000 37,000 24,115 (12,885) Net increase(decrease)in investment fair value - - (7,972) (7,972) Miscellaneous revenues - - 26,335 26,335 Total revenues 2,721,141 2,721,141 2,415,366 (305,775) EXPENDITURES Debt service: Principal 2,030,000 2,030,000 1,964,000 66,000 Interest 686,000 686,000 394,578 291,422 Total expenditures 2,716,000 2,716,000 2,358,578 357,422 Change in fund balance before other financing sources(uses) 5,141 5,141 56,788 51,647 OTHER FINANCING SOURCES(USES) Reserve for future expenditures (1,715,736) (1,715,736) - 1,715,736 Total other financing sources(uses) (1,715,736) (1,715,736) - 1,715,736 Change in fund balance (1,710,595) (1,710,595) 56,788 1,767,383 Fund balance-Beginning of the year 1,710,595 1,710,595 1,948,178 237,583 Fund balance-End of the year $ - $ - $ 2,004,966 $ 2,004,966 161 CITY OF TIGARD,OREGON CITY CENTER URBAN RENEWAL DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Property taxes $ 590,000 $ 590,000 $ 663,795 $ 73,795 Interest earnings 11,100 11,100 7,647 (3,453) Net increase(decrease)in investment fair value - - 799 799 Total revenues 601,100 601,100 672,241 71,141 EXPENDITURES Debt service: Principal 80,000 245,000 241,000 4,000 Interest 50,025 180,025 169,264 10,761 Total expenditures 130,025 425,025 410,264 14,761 Change in fund balance before other financing sources(uses) 471,075 176,075 261,977 85,902 OTHER FINANCING SOURCES(USES) Transfer out (412,000) (412,000) - 412,000 Reserve for future expenditure (625,175) (330,175) - 330,175 Total other financing sources(uses) (1,037,175) (742,175) - 742,175 Change in fund balance (566,100) (566,100) 261,977 828,077 Fund balance-Beginning of the year 566,100 566,100 1,085,936 519,836 Fund balance-End of the year $ - $ - $ 1,347,913 $ 1,347,913 162 CITY OF TIGARD,OREGON TIGARD TRIANGLE DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Property taxes $ 450,000 $ 450,000 $ 742,701 $ 292,701 Interest earnings - - 3,963 3,963 Net increase(decrease)in investment fair value - - 2,437 2,437 Total revenues 450,000 450,000 749,101 299,101 EXPENDITURES *Debt service: Interest - - 5,040 (5,040) Total expenditures - - 5,040 (5,040) Change in fund balance before other financing sources(uses) 450,000 450,000 744,061 294,061 OTHER FINANCING SOURCES(USES) Transfer out (8,481,900) (8,481,900) - 8,481,900 Debt proceeds 8,000,000 8,000,000 - (8,000,000) Reserve for future expenditure (52,100) (52,100) - 52,100 Total other financing sources(uses) (534,000) (534,000) - 534,000 Change in fund balance (84,000) (84,000) 744,061 828,061 Fund balance-Beginning of the year 84,000 84,000 105,962 21,962 Fund balance-End of the year $ - $ - $ 850,023 $ 850,023 * Budget appropriation is made at the debt service program level 163 No content appears on this page by design. 164 Capital Project Funds Combining statements for all individual non-major capital projects funds are reported here. The combined totals are reported in the combining non-major governmental fund statements. Schedules of revenues, expenditures and changes in fund balance— budget and actual — are also presented here for each capital projects fund. Facility Fund –Accounts for major city owned facility improvements. Resources are primarily transfers in from the General Fund. Transportation Development Tax Fund –Accounts for traffic impact fees collected on roads within the city's urban service areas. This fund replaced the Traffic Impact Fee Fund starting July 1, 2009. Funds will be used for highways and transit capital improvements in the city's Capital Improvement Plan. Underground Utility Fund – Accounts for resources received from developers for future underground utility improvements. Street Maintenance Fee Fund – Accounts for revenues and expenditures for the Street Maintenance Fee.This fee provides revenue designated for use in the maintenance of existing city streets. Transportation System Development Charges (SDC) Fund – This fund was established to track the revenues and expenditures associated with the collection of transportation system development charges. The fee is collected on the issue of building permits for any new residential multi-family, or commercial construction to assist with infrastructure capacity needs. Parks Capital Fund – Accounts for revenues earmarked for improvements to park and recreational facilities within the city. Resources are primarily transfers in of system development charges and other funds and grants and donations. Expenditures consist of various park,trail development and open space acquisition projects. Parks Bond Fund –Accounts for the voter approved a $17 million parks bond debt issued for purchase of land and green spaces to develop city parks. Parks System Development Charges (SDC) Fund –Accounts for revenues associated with the collection of Parks System Development Charges. Resources are used to fund the acquisition, development and expansion of additional recreation spaces and facilities that are included in the city's Park Master Plan. Transportation Capital Improvement Project Fund–Accounts for capital improvement projects funded with transportation revenues; including Gas Tax, Traffic Impact Fees and Transportation Development Tax. City Center Capital Improvement Fund –This fund was established in FY 2007-08 for the creation of a new urban renewal agency to improve downtown Tigard. Expenses are for capital improvements within the urban renewal plan. Resources are from financing proceeds or transfers in from the City Center Urban Renewal Debt Service Fund. Tigard Triangle Improvement Fund–This fund was established in FY 2016-17 for the creation of a new urban renewal agency to improve the Tigard Triangle area. Expenses are for capital improvements within the urban renewal plan. Resources are from financing proceeds or transfers in from the Tigard Triangle Debt Service Fund. 165 166 No content appears on this page by design. 167 CITY OF TIGARD,OREGON CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30,2021 Transportation Underground Street Transportation Facility Development Utility Maintenance SDC Fund Tax Fund Fund Fee Fund Fund ASSETS Cash and investments $ 985,606 $ - $ - $ 2,809,958 $ - Accounts receivable 488 6,012 222 391,106 915 Restricted cash and investments - 14,586,597 557,902 - 9,270,329 Total assets $ 986,094 $ 14,592,609 $ 558,124 $ 3,201,064 $ 9,271,244 LIABILITIES Accounts payable and accrued liabilities $ 47,743 $ - $ - $ 157,340 $ - Advances from other funds-interfund loans - - - - - Total liabilities 47,743 - - 157,340 - DEFERRED INFLOWS OF RESOURCES Special assessments/liens - 3,413 - - - FUND BALANCES(DEFICIT) Restricted for: Street maintenance and improvements - 14,589,196 - - 9,271,244 Park development and improvements - - - - - Underground utilities - - 558,124 - - Urban development and improvements - - - - - Committed for: Street maintenance and improvements - - - 3,043,724 - Assigned to: City facilities 938,351 - - - - Unassigned - - - - - Total fund balances 938,351 14,589,196 558,124 3,043,724 9,271,244 Total liabilities,deferred inflows of resources and fund balance $ 986,094 $ 14,592,609 $ 558,124 $ 3,201,064 $ 9,271,244 168 Transportation Parks Parks Parks Capital City Center Capital Tigard Triangle Capital Bond SDC Improvement Improvement Improvement Fund Fund Fund Fund Fund Fund Total $ - $ - $ - $ - $ - $ - $ 3,795,564 - 2,942 1,293,242 - - 1,694,927 529,766 821,844 11,866,206 897,132 3,959,585 106,541 42,595,902 $ 529,766 $ 821,844 $ 11,869,148 $ 2,190,374 $ 3,959,585 $ 106,541 $ 48,086,393 $ 260,389 $ - $ - $ 555,139 $ 79,265 $ - $ 1,099,876 - - - 757,432 228,869 986,301 260,389 - - 555,139 836,697 228,869 2,086,177 - - - - - - 3,413 - - 1,635,235 - - 25,495,675 269,377 821,844 11,869,148 - - - 12,960,369 - - - - - 558,124 - - - - 3,122,888 - 3,122,888 - - - - - 3,043,724 - - - - - 938,351 - - - - (122,328) (122,328) 269,377 821,844 11,869,148 1,635,235 3,122,888 (122,328) 45,996,803 $ 529,766 $ 821,844 $ 11,869,148 $ 2,190,374 $ 3,959,585 $ 106,541 $ 48,086,393 169 CITY OF TIGARD,OREGON CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE for the year ended June 30,2021 Transportation Underground Street Transportation Facility Development Utility Maintenance SDC Fund Tax Fund Fund Fee Fund Fund REVENUES Charges for services $ - $ - $ - $ 3,196,547 $ - System development charges - 1,819,465 - - 1,521,439 Intergovernmental revenues - - - - - Interest earnings 6,985 107,971 4,274 16,447 71,648 Net increase(decrease)in investment fair value (2,987) (49,639) (1,378) (6,499) (37,483) Miscellaneous revenues - - - 146 - Total revenues 3,998 1,877,797 2,896 3,206,641 1,555,604 EXPENDITURES Community development - - - - - Capital projects 465,782 - - 2,305,823 - Total expenditures 465,782 - - 2,305,823 - Change in fund balance before other financing sources(uses) (461,784) 1,877,797 2,896 900,818 1,555,604 OTHER FINANCING SOURCES(USES) Transfer in 465,782 - - - - Transfer out (42) (1,015,961) (1,030) (385,297) (1,340,923) Total other financing sources(uses) 465,740 (1,015,961) (1,030) (385,297) (1,340,923) Change in fund balance 3,956 861,836 1,866 515,521 214,681 Fund balance- Beginning of the year 934,395 13,727,360 556,258 2,528,203 9,056,563 Fund balance- End of the year $ 938,351 $ 14,589,196 $ 558,124 $ 3,043,724 $ 9,271,244 170 Transportation Parks Parks Parks Capital City Center Capital Tigard Triangle Capital Bond SDC Improvement Improvement Improvement Fund Fund Fund Fund Fund Fund Total $ - $ - $ - $ 44,926 $ - $ - $ 3,241,473 - - 1,783,821 - - - 5,124,725 169,620 - - 1,806,317 - 230,428 2,206,365 - 6,402 93,039 - 27,209 - 333,975 - (3,833) (43,652) (10,908) (19,690) - (176,069) 638 - - 22 389,797 - 390,603 170,258 2,569 1,833,208 1,840,357 397,316 230,428 11,121,072 - - - - 211,844 123,887 335,731 1,645,345 - - 4,612,060 901,737 - 9,930,747 1,645,345 - - 4,612,060 1,113,581 123,887 10,266,478 (1,475,087) 2,569 1,833,208 (2,771,703) (716,265) 106,541 854,594 1,547,141 - - 2,681,298 464,279 - 5,158,500 - (7,288) (1,353,369) - - - (4,103,910) 1,547,141 (7,288) (1,353,369) 2,681,298 464,279 - 1,054,590 72,054 (4,719) 479,839 (90,405) (251,986) 106,541 1,909,184 197,323 826,563 11,389,309 1,725,640 3,374,874 (228,869) 44,087,619 $ 269,377 $ 821,844 $ 11,869,148 $ 1,635,235 $ 3,122,888 $ (122,328) $ 45,996,803 171 CITY OF TIGARD,OREGON FACILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ 18,900 $ 18,900 $ 6,985 $ (11,915) Net increase(decrease)in investment fair value - - (2,987) (2,987) Total revenues 18,900 18,900 3,998 (14,902) EXPENDITURES Capital projects 7,883,000 7,981,500 465,782 7,515,718 Change in fund balance before other financing sources(uses) (7,864,100) (7,962,600) (461,784) 7,500,816 OTHER FINANCING SOURCES(USES) Transfer in 7,983,000 8,081,500 465,782 (7,615,718) Transfer out (42) (42) (42) - Contingency (50,000) (50,000) - 50,000 Reserve for future expenditures (404,929) (404,929) - 404,929 Total other financing sources(uses) 7,528,029 7,626,529 465,740 (7,160,789) Change in fund balance (336,071) (336,071) 3,956 340,027 Fund balance-Beginning of the year 336,071 336,071 934,395 598,324 Fund balance-End of the year $ - $ - $ 938,351 $ 938,351 172 CITY OF TIGARD,OREGON TRANSPORTATION DEVELOPMENT TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES System development charges $ 2,043,589 $ 2,043,589 $ 1,819,465 $ (224,124) Interest earnings 253,900 253,900 107,971 (145,929) Net increase(decrease) in investment fair value - - (49,639) (49,639) Total revenues 2,297,489 2,297,489 1,877,797 (370,053) OTHER FINANCING SOURCES(USES) Transfer out (1,067,671) (1,067,671) (1,015,961) 51,710 Reserve for future expenditures (13,709,909) (13,709,909) - 13,709,909 Total other financing sources(uses) (14,777,580) (14,777,580) (1,015,961) 13,761,619 Change in fund balance (12,480,091) (12,480,091) 861,836 13,391,566 Fund balance-Beginning of the year 12,480,091 12,480,091 13,727,360 1,247,269 Fund balance-End of the year $ - $ - $ 14,589,196 $ 14,638,835 173 CITY OF TIGARD,OREGON UNDERGROUND UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 124,000 $ 124,000 $ - $ (124,000) Interest earnings 8,500 8,500 4,274 (4,226) Net increase(decrease)in investment fair value - - (1,378) (1,378) Total revenues 132,500 132,500 2,896 (129,604) OTHER FINANCING SOURCES(USES) Transfer out (11,030) (11,030) (1,030) 10,000 Reserve for future expenditures (693,520) (693,520) - 693,520 Total other financing uses (704,550) (704,550) (1,030) 703,520 Change in fund balance (572,050) (572,050) 1,866 573,916 Fund balance-Beginning of the year 572,050 572,050 556,258 (15,792) Fund balance-End of the year $ - $ - $ 558,124 $ 558,124 174 CITY OF TIGARD,OREGON STREET MAINTENANCE FEE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,109,600 $ 3,109,600 $ 3,196,547 $ 86,947 Interest earnings 30,100 30,100 16,447 (13,653) Net increase(decrease)in investment fair value - - (6,499) (6,499) Miscellaneous revenues - - 146 146 Total revenues 3,139,700 3,139,700 3,206,641 66,941 EXPENDITURES Capital projects 2,740,000 2,740,000 2,305,823 434,177 Change in fund balance before other financing sources(uses) 399,700 399,700 900,818 501,118 OTHER FINANCING SOURCES(USES) Transfer out (235,230) (460,297) (385,297) 75,000 Contingency (100,000) - - - Reserve for future expenditures (2,307,846) (2,257,779) - 2,257,779 Total other financing sources(uses) (2,643,076) (2,718,076) (385,297) 2,332,779 Change in fund balance (2,243,376) (2,318,376) 515,521 2,833,897 Fund balance-Beginning of the year 2,243,376 2,318,376 2,528,203 209,827 Fund balance-End of the year $ - $ - $ 3,043,724 $ 3,043,724 175 CITY OF TIGARD,OREGON TRANSPORTATION SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES System development charges $ 701,855 $ 701,855 $ 1,521,439 $ 819,584 Interest earnings 144,000 144,000 71,648 (72,352) Net increase(decrease)in investment fair value - - (37,483) (37,483) Total revenues 845,855 845,855 1,555,604 709,749 OTHER FINANCING SOURCES(USES) Transfer out (3,428,362) (3,888,783) (1,340,923) 2,547,860 Reserve for future expenditures (5,643,031) (5,595,031) - 5,595,031 Total other financing sources(uses) (9,071,393) (9,483,814) (1,340,923) 8,142,891 Change in fund balance (8,225,538) (8,637,959) 214,681 8,852,640 Fund balance-Beginning of the year 8,225,538 8,637,959 9,056,563 418,604 Fund balance-End of the year $ - $ - $ 9,271,244 $ 9,271,244 176 CITY OF TIGARD,OREGON PARKS CAPITAL FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues $ 350,000 $ 46,445 $ 169,620 $ 123,175 Miscellaneous revenues - - 638 638 Total revenues 350,000 46,445 170,258 123,813 EXPENDITURES Capital projects 10,354,000 6,505,945 1,645,345 4,860,600 Change in fund balance before other financing sources(uses) (10,004,000) (6,459,500) (1,475,087) 4,984,413 OTHER FINANCING SOURCES(USES) Transfer in 10,004,000 6,459,500 1,547,141 (4,912,359) Reserve for future expenditures (432,919) (432,919) - 432,919 Total other financing sources(uses) 9,571,081 6,026,581 1,547,141 (4,479,440) Change in fund balance (432,919) (432,919) 72,054 504,973 Fund balance-Beginning of the year 432,919 432,919 197,323 (235,596) Fund balance-End of the year $ - $ - $ 269,377 $ 269,377 177 CITY OF TIGARD,OREGON PARKS BOND FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 6,402 $ 6,402 Net increase(decrease)in investment fair value - - (3,833) (3,833) Total revenues - - 2,569 2,569 OTHER FINANCING SOURCES(USES) Transfer out (807,165) (807,165) (7,288) 799,877 Reserve for future expenditures (236) (236) - 236 Total other financing uses (807,401) (807,401) (7,288) 800,113 Change in fund balance (807,401) (807,401) (4,719) 802,682 Fund balance-Beginning of the year 807,401 807,401 826,563 19,162 Fund balance-End of the year $ - $ - $ 821,844 $ 821,844 178 CITY OF TIGARD,OREGON PARKS SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES System development charges $ 1,495,466 $ 1,495,466 $ 1,783,821 $ 288,355 Interest earnings 211,100 211,100 93,039 (118,061) Net increase(decrease)in investment fair value - - (43,652) (43,652) Total revenues 1,706,566 1,706,566 1,833,208 126,642 OTHER FINANCING SOURCES(USES) Transfer out (6,045,300) (6,128,300) (1,353,369) 4,774,931 Reserve for future expenditures (5,319,349) (5,319,349) - 5,319,349 Total other financing sources(uses) (11,364,649) (11,447,649) (1,353,369) 10,094,280 Change in fund balance (9,658,083) (9,741,083) 479,839 10,220,922 Fund balance-Beginning of the year 9,658,083 9,741,083 11,389,309 1,648,226 Fund balance-End of the year $ - $ - $ 11,869,148 $ 11,869,148 179 CITY OF TIGARD,OREGON TRANSPORTATION CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues $ 4,253,533 $ 4,421,337 $ 1,806,317 $ (2,615,020) Miscellaneous revenues - - 22 22 Charges for services - - 44,926 44,926 Net increase(decrease)in investment fair value - - (10,908) (10,908) Total revenues 4,253,533 4,421,337 1,840,357 (2,580,980) EXPENDITURES Capital projects 9,081,033 9,887,258 4,612,060 5,275,198 Change in fund balance before other financing sources(uses) (4,827,500) (5,465,921) (2,771,703) 2,694,218 OTHER FINANCING SOURCES(USES) Transfer in 4,827,500 5,465,921 2,681,298 (2,784,623) Reserve for future expenditures (923,402) (923,402) - 923,402 Total other financing sources 3,904,098 4,542,519 2,681,298 (1,861,221) Change in fund balance (923,402) (923,402) (90,405) 832,997 Fund balance-Beginning of the year 923,402 923,402 1,725,640 802,238 Fund balance-End of the year $ - $ - $ 1,635,235 $ 1,635,235 180 CITY OF TIGARD,OREGON CITY CENTER CAPITAL IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 27,209 $ 27,209 Net increase(decrease)in investment fair value - - (19,690) (19,690) Miscellaneous revenues - - 389,797 389,797 Total revenues - - 397,316 397,316 EXPENDITURES * Capital projects 3,192,900 5,192,900 1,113,581 4,079,319 Total expenditures 3,192,900 5,192,900 1,113,581 4,079,319 Change in fund balance before other financing sources(uses) (3,192,900) (5,192,900) (716,265) 4,476,635 OTHER FINANCING SOURCES(USES) Transfer in 412,000 2,412,000 464,279 (1,947,721) Reserve for future expenditures (2,312,600) (2,312,600) - 2,312,600 Total other financing sources (1,900,600) 99,400 464,279 364,879 Change in fund balance (5,093,500) (5,093,500) (251,986) 4,841,514 Fund balance-Beginning of the year 5,093,500 5,093,500 4,132,306 (961,194) Fund balance-End of the year $ - $ - 3,880,320 $ 3,880,320 Reconciliation of budgetary fund balance to GAAP basis net position: Interfund loans are treated as revenue on a budgetary basis (757,432) Fund net position-GAAP basis $ 3,122,888 * For budgetary purposes expenditures are appropriated as capital projects, however on the GAAP statements non-capital transactions are recorded as program expenditures 181 CITY OF TIGARD,OREGON TIGARD TRIANGLE CAPITAL IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues $ - $ - $ 230,428 $ 230,428 EXPENDITURES Community development 2,181,900 2,181,900 123,887 2,058,013 * Capital projects 6,300,000 6,300,000 - 6,300,000 Total expenditures 8,481,900 8,481,900 123,887 8,358,013 Change in fund balance before other financing sources(uses) (8,481,900) (8,481,900) 106,541 8,588,441 OTHER FINANCING SOURCES(USES) Transfer in 8,481,900 8,481,900 - (8,481,900) Change in fund balance - - 106,541 106,541 Fund balance-Beginning of the year - - - - Fund balance-End of the year $ - $ - 106,541 $ 106,541 Reconciliation of budgetary fund balance to GAAP basis net position: Interfund loans are treated as revenue on a budgetary basis (228,869) Fund net position-GAAP basis $ (122,328) * For budgetary purposes expenditures are appropriated as capital projects, however on the GAAP statements non-capital transactions are recorded as program expenditures 182 Enterprise Funds For GAAP reporting purposes, the city reports three proprietary funds as major funds. These funds are the Sanitary Sewer Fund, the Stormwater Fund (which consists of the Stormwater Fund and the Water Quality/Quantity Fund) and the Water Fund (which includes the Water Fund, Water SDC Fund, Water CIP Fund and Water Debt Service Fund). For budgetary and legal purposes, these funds are accounted for separately as listed below. The city's enterprise funds meet the criteria for major fund reporting and are reported in the basic financial statements. Schedules of revenues and changes in fund net position — budget and actual are presented here for each individual enterprise fund as required by Oregon regulations. Sanitary Sewer Fund–Accounts for the city's sewer utility operations. Stormwater Fund – Accounts for the city's storm drainage operations and includes the following fund: • Water Quality/Quantity Fund – Accounts for the fees charged to new development for the additional impact on the stormwater system. Water Fund–Accounts for the city's water utility operations and includes the following funds: • Water SDC Fund – Accounts for the water impact fees charged to new development. • Water CIP Fund – Accounts for capital projects to expand or improve the city's water system infrastructure. • Water Debt Service Fund – Accounts for debt service on the water revenue bonds and long-term note. 183 184 CITY OF TIGARD,OREGON SANITARY SEWER FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,333,205 $ 3,333,205 $ 3,348,846 $ 15,641 Connection fees 92,200 92,200 129,369 37,169 Intergovernmental revenues - - 15,871 15,871 Interest earnings 110,300 110,300 63,849 (46,451) Net increase(decrease)in investment fair value - - (26,275) (26,275) Miscellaneous revenues 42,100 42,100 146,612 104,512 Total revenues 3,577,805 3,577,805 3,678,272 100,467 EXPENDITURES Public works 2,342,147 2,344,151 2,598,530 (254,379) Capital projects 1,079,000 1,079,000 698,209 380,791 Total expenditures 3,421,147 3,423,151 3,296,739 126,412 Change in fund balance before other financing sources(uses) 156,658 154,654 381,533 226,879 OTHER FINANCING SOURCES(USES) Transfer in 234,500 234,500 150,019 (84,481) Transfer out (464,320) (467,570) (130,974) 336,596 Contingency (200,000) (194,746) - 194,746 Reserve for future expenditures (5,742,556) (5,742,556) - 5,742,556 Total other financing sources(uses) (6,172,376) (6,170,372) 19,045 6,189,417 Change in fund balance (6,015,718) (6,015,718) 400,578 6,416,296 Fund balance-Beginning of the year 6,015,718 6,015,718 7,542,800 1,527,082 Fund balance-End of the year $ - $ - $ 7,943,378 $ 7,943,378 185 CITY OF TIGARD,OREGON SANITARY SEWER FUND RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30,2021 Operating and Non-Operating Expenditures/ Revenues Expenses Budgetary basis $ 3,828,291 $ 3,296,739 Unavailable revenue (2,802) - Contributed capital 186,489 - Compensated absences - 839 Expenditures capitalized - (768,130) Depreciation expense - 892,447 Net OPEB obligation - 1,565 Operating and non-operating revenue and expenses-GAAP basis $ 4,011,978 $ 3,423,460 186 CITY OF TIGARD,OREGON STORM WATER FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 4,044,297 $ 4,044,297 $ 3,820,029 $ (224,268) Licenses and permits - - 75,877 75,877 Federal grants - - 26,207 26,207 Interest earnings 139,900 139,900 59,383 (80,517) Net increase(decrease)in investment fair value - - (25,530) (25,530) Miscellaneous revenues 5,000 5,000 11,177 6,177 Total revenues 4,189,197 4,189,197 3,967,143 (222,054) EXPENDITURES Public works 3,509,897 3,515,907 3,277,521 238,386 Capital projects 2,269,500 2,688,000 1,266,415 1,421,585 Total expenditures 5,779,397 6,203,907 4,543,936 1,659,971 Change in fund balance before other financing sources(uses) (1,590,200) (2,014,710) (576,793) 1,437,917 OTHER FINANCING USES Transfer in 601,000 601,000 49,293 (551,707) Transfer out (442,866) (448,616) (285,745) 162,871 Contingency (225,000) (213,240) - 213,240 Reserve for future expenditures (5,595,480) (5,595,480) - 5,595,480 Total other financing uses (5,662,346) (5,656,336) (236,452) 5,419,884 Change in fund balance (7,252,546) (7,671,046) (813,245) 6,857,801 Fund balance-Beginning of the year 7,252,546 7,671,046 8,102,046 431,000 Fund balance-End of the year $ - $ - $ 7,288,801 $ 7,288,801 187 CITY OF TIGARD,OREGON WATER QUALITY/QUANTITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 2,000 $ 2,000 $ - $ (2,000) Interest earnings 25,800 25,800 10,178 (15,622) Net increase(decrease)in investment fair value - - (2,473) (2,473) Total revenues 27,800 27,800 7,705 (20,095) OTHER FINANCING SOURCES(USES) Transfer out (265,000) (265,000) - 265,000 Reserve for future expenditures (1,033,439) (1,033,439) - 1,033,439 Total other financing sources(uses) (1,298,439) (1,298,439) - 1,298,439 Change in fund balance (1,270,639) (1,270,639) 7,705 1,278,344 Fund balance-Beginning of the year 1,270,639 1,270,639 1,323,600 52,961 Fund balance-End of the year $ - $ - $ 1,331,305 $ 1,331,305 188 CITY OF TIGARD,OREGON STORMWATER FUNDS RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30,2021 Operating and Non-operating Expenditures/ Revenues Expenses Stormwater $ 4,016,436 $ 4,829,681 Water Quality/Quantity 7,705 - Total,budgetary basis 4,024,141 4,829,681 Contributed capital 253,440 - Loss on disposal of capital assets (103,059) - Compensated absences - (230) Expenditures capitalized - (1,106,149) Depreciation expense - 715,145 Net OPEB obligation - 2,232 Operating and non-operating revenue and expenses-GAAP basis $ 4,174,522 $ 4,440,679 189 CITY OF TIGARD,OREGON WATER FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 22,908,411 $ 22,908,411 $ 24,836,173 $ 1,927,762 Grants - - 42,142 42,142 Interest earnings 500,700 500,700 298,117 (202,583) Net increase(decrease)in investment fair value - - (118,650) (118,650) Miscellaneous revenues 50,000 50,000 118,345 68,345 Total revenues 23,459,111 23,459,111 25,176,127 1,717,016 EXPENDITURES Public works 10,361,223 10,447,545 9,298,378 1,149,167 Change in fund balance before other financing sources(uses) 13,097,888 13,011,566 15,877,749 2,866,183 OTHER FINANCING SOURCES(USES) Transfer out (23,067,947) (23,076,447) (8,470,196) 14,606,251 Contingency (475,000) (408,488) - 408,488 Reserve for future expenditures (28,249,772) (28,289,772) - 28,289,772 Total other financing sources(uses) (51,792,719) (51,774,707) (8,470,196) 43,304,511 Change in fund balance (38,694,831) (38,763,141) 7,407,553 46,170,694 Fund balance-Beginning of the year 38,694,831 38,763,141 41,101,619 2,338,478 Fund balance-End of the year $ - $ - $ 48,509,172 $ 48,509,172 190 CITY OF TIGARD,OREGON WATER SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES System development charges $ 1,870,435 $ 1,870,435 $ 2,054,999 $ 184,564 Interest earnings 258,200 258,200 122,926 (135,274) value - - (54,287) (54,287) Total revenues 2,128,635 2,128,635 2,123,638 (4,997) OTHER FINANCING SOURCES(USES) Transfer out (4,390,268) (4,430,268) (1,731,318) 2,698,950 Reserve for future expenditures (10,784,514) (10,784,514) - 10,784,514 Total other financing sources(uses) (15,174,782) (15,214,782) (1,731,318) 13,483,464 Change in fund balance (13,046,147) (13,086,147) 392,320 13,478,467 Fund balance-Beginning of the year 13,046,147 13,086,147 15,659,719 2,573,572 Fund balance-End of the year $ - $ - $ 16,052,039 $ 16,052,039 191 CITY OF TIGARD,OREGON WATER CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Net increase(decrease)in investment fair value $ - $ - $ (7,560) $ (7,560) Miscellaneous revenues - - 128 128 Total revenues - - (7,432) (7,432) EXPENDITURES Capital projects 10,868,000 10,908,000 2,332,215 8,575,785 Change in fund balance before other financing sources(uses) (10,868,000) (10,908,000) (2,339,647) 8,568,353 OTHER FINANCING SOURCES(USES) Transfer in 10,868,000 10,908,000 2,333,965 (8,574,035) Reserve for future expenditures (1,671,726) (1,671,726) - 1,671,726 Total other financing sources(uses) 9,196,274 9,236,274 2,333,965 (6,902,309) Change in fund balance (1,671,726) (1,671,726) (5,682) 1,666,044 Fund balance-Beginning of the year 1,671,726 1,671,726 1,567,493 (104,233) Fund balance-End of the year $ - $ - $ 1,561,811 $ 1,561,811 192 CITY OF TIGARD,OREGON WATER DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 41,957 $ 41,957 Net increase(decrease)in investment fair value - - (54,054) (54,054) Total revenues - - (12,097) (12,097) EXPENDITURES Debt service: Principal 2,505,000 2,505,000 2,483,614 21,386 Interest 6,000,000 6,000,000 4,329,106 1,670,894 Total expenditures 8,505,000 8,505,000 6,812,720 1,692,280 Change in fund balance before other financing sources(uses) (8,505,000) (8,505,000) (6,824,817) 1,680,183 OTHER FINANCING SOURCES(USES) Debt proceeds - - 86,141,433 86,141,433 Debt refinancing - - (91,089,735) (91,089,735) Debt issuance cost - - (261,710) (261,710) Transfer in 8,408,000 8,408,000 7,164,725 (1,243,275) Reserve for future expenditures (6,974,649) (6,974,649) - 6,974,649 Total other financing sources(uses) 1,433,351 1,433,351 1,954,713 521,362 Change in fund balance (7,071,649) (7,071,649) (4,870,104) 2,201,545 Fund balance-Beginning of the year 7,071,649 7,071,649 7,314,629 242,980 Fund balance-End of the year $ - $ - $ 2,444,525 $ 2,444,525 193 CITY OF TIGARD,OREGON WATER FUNDS RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30,2021 Operating and Non-operating Expenditures/ Revenues Expenses Water $ 25,176,127 $ 17,768,574 Water SDC 2,123,638 1,731,318 Water CIP 2,326,533 2,332,215 Water Debt Service 93,294,061 98,164,165 Total,budgetary basis 122,920,359 119,996,272 Contributed capital 140,995 - Loss on disposal of capital assets 933 - Loss on investment in joint venture (32,454) - Elimination of water interfund transfers (9,498,690) (9,498,690) Elimination of debt refinancing (86,141,433) (89,992,096) Compensated absences - (21,642) Expenditures capitalized - (1,835,175) Principal payments - (2,483,614) Accrued interest - (628,467) Depreciation expense - 5,296,843 Net OPEB obligation - 2,827 Operating and non-operating revenue and expenses-GAAP basis $ 27,389,710 $ 20,836,258 194 CITY OF TIGARD,OREGON ENTERPRISE FUNDS RECONCILIATION OF BUDGETARY FUND BALANCE TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET POSITION June 30,2021 Total Total Total Sanitary Sewer Stormwater Water Sanitary Sewer Fund $ 7,943,378 $ - $ - Stormwater Fund - 7,288,801 - Water Quality/Quantity Fund - 1,331,305 - Water Fund - - 48,509,172 Water SDC Fund - - 16,052,039 Water CIP Fund - - 1,561,811 Water Debt Service Fund - - 2,444,525 Fund balance-budget basis 7,943,378 8,620,106 68,567,547 Adjustments from budgetary basis to generally accepted accounting principles basis: Capital assets, net 19,165,414 15,077,036 200,897,250 Investment in joint venture - - 1,792,758 Sewer funds payable (21,780) - - Assets held for resale 185,021 260,021 - Unavailable revenue 4,529 - - Compensated absences (32,379) (37,757) (38,009) Long-term debt - - (127,389,524) Accrued interest payable - - (1,600,195) Interfund loans 102,320 - - Deferred Outflow OPEB 2,206 3,150 3,991 Deferred Outflow bond refunding - - 3,607,247 Deferred Inflow OPEB (8,527) (12,179) (15,430) OPEB liability (25,218) (36,018) (45,632) Total Net Position-GAAP basis $ 27,314,967 $ 23,874,361 $ 145,780,008 195 No content appears on this page by design. 196 Internal Service Funds Combining statements for internal service funds are reported here. The combined totals are reported alongside the enterprise funds in the basic financial statements. Schedules of revenues, expenses and changes in fund net position — budget and actual — are presented here for each internal service fund as required by Oregon regulations. Internal Service Funds: Central Services Fund — Accounts for the central administrative functions within the city. Expenditures are primarily payroll and related expenses for city policy and administration functions. Resources are charges for services to city departments and internal customers. Public Works Administration Fund — Accounts for activity related to the administration of public works in the city. Resources are charges for services to city departments and internal customers. Public Works Engineering Fund — Accounts for activity related to engineering in the city. Resources are charges for services to city departments and internal customers. Fleet/Property Management Fund —Accounts for activity related to the fleet maintenance and property management divisions in the city. Resources are charges for services to city departments and internal customers. Insurance Fund — Accounts for the city's risk management program and insurance coverage premiums and related costs to help reduce the overall insurance cost to the city. Resources are primarily refunds of prior years' premiums. 197 198 No content appears on this page by design. 199 CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION June 30, 2021 Central Public Works Services Administration Fund Fund ASSETS Cash and investments $ 4,291,300 $ 755,998 Accounts receivable 6,261 - Prepaids 321,436 - Inventory - - Total assets 4,618,997 755,998 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to OPEB 16,807 7,652 LIABILITIES Accounts payable and accrued liabilities 556,295 51,511 Customer deposits - - Due to others - - Unearned revenue 20,050 - Accrued compensated absences 459,518 68,073 Net OPEB obligation 192,165 87,493 Total liabilities 1,228,028 207,077 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to OPEB 64,980 29,585 NET POSITION Net position, unrestricted $ 3,342,796 $ 526,988 200 Public Works Fleet/Property Engineering Management Insurance Fund Fund Fund Total $ 2,818,483 $ 1,709,189 $ 1,580,101 $ 11,155,071 34,383 - 991 41,635 321,436 4,400 - 4,400 2,852,866 1,713,589 1,581,092 11,522,542 15,083 3,362 - 42,904 105,563 109,364 2,288 825,021 175,742 - - 175,742 29,387 - - 29,387 - - - 20,050 97,364 55,922 931 681,808 172,452 38,437 - 490,547 580,508 203,723 3,219 2,222,555 58,314 12,997 - 165,876 $ 2,229,127 $ 1,500,231 $ 1,577,873 $ 9,177,015 201 CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION for the year ended June 30, 2021 Central Public Works Services Administration Fund Fund OPERATING REVENUES Charges for services $ 11,121,943 $ 2,256,449 Miscellaneous revenues 11,149 1,246 Total operating revenues 11,133,092 2,257,695 OPERATING EXPENSES Salaries and wages 6,915,345 1,124,152 Contracted services 1,508,731 118,825 General, administrative and other 2,955,581 936,762 Total operating expenses 11,379,657 2,179,739 Operating income (loss) (246,565) 77,956 NONOPERATING REVENUE Interest revenue 35,088 4,279 Net increase (decrease) in investment fair value (6,511) (2,308) Intergovernmental revenues 255,877 7,169 Total non-operating revenue 284,454 9,140 Income (loss) before contributions and transfers 37,889 87,096 CONTRIBUTIONS AND TRANSFERS Transfer in 1,064,819 29,038 Transfer out - (5,000) Change in net position 1,102,708 111,134 Net position - Beginning of year, as originally stated 2,240,088 415,854 Net position - End of year $ 3,342,796 $ 526,988 202 Public Works Fleet/Property Engineering Management Insurance Fund Fund Fund Total $ 3,529,703 $ 3,133,084 $ - $ 20,041,179 18,128 109,650 100,552 240,725 3,547,831 3,242,734 100,552 20,281,904 2,244,470 982,497 26,636 11,293,100 276,739 661,814 - 2,566,109 1,255,057 921,113 57,725 6,126,238 3,776,266 2,565,424 84,361 19,985,447 (228,435) 677,310 16,191 296,457 14,778 8,432 12,000 74,577 (13,852) (363) (5,382) (28,416) 28,443 53,500 - 344,989 29,369 61,569 6,618 391,150 (199,066) 738,879 22,809 687,607 746,024 - - 1,839,881 (1,000) - (6,000) 546,958 737,879 22,809 2,521,488 1,682,169 762,352 1,555,064 6,655,527 $ 2,229,127 $ 1,500,231 $ 1,577,873 $ 9,177,015 203 CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS for the year ended June 30,2021 Public Works Central Services Administration Fund Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 11,130,703 $ 2,256,449 Payments to suppliers (4,404,618) (1,078,966) Payments to employees (6,788,858) (1,106,635) Other receipts 14,699 1,246 Net cash provided (used) by operating activities (48,074) 72,094 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Intergovernmental revenues 255,877 7,169 Transfer from other funds 1,064,819 29,038 Transfer to other funds - (5,000) Net cash flows from noncapital financing activities 1,320,696 31,207 CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings 28,577 1,971 Net increase in cash and investments 1,301,199 105,272 Cash and investments--beginning of the year 2,990,101 650,726 Cash and investments--end of the year $ 4,291,300 $ 755,998 RECONCILIATION OF OPERATING INCOME (LOSS)TO NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES Operating income (loss) $ (246,565) $ 77,956 Adjustments to reconcile operating income (loss)to net cash provided (used) by operating activities CHANGE IN ASSETS AND LIABILITIES Receivables 8,760 - Prepaids (77,706) - Inventory - - Accounts Payable 137,400 (23,379) Customer Deposits 3,550 - Accrued compensated absences 114,570 12,091 Net OPEB Obligation 11,917 5,426 Net cash provided (used) by operating activities $ (48,074) $ 72,094 204 Public Works Fleet/Property Engineering Management Insurance Fund Fund Fund Total $ 2,672,657 $ 3,138,981 $ - $ 19,198,790 (1,549,910) (1,563,943) (74,438) (8,671,875) (2,219,604) (979,403) (25,970) (11,120,470) 18,128 109,650 101,153 244,876 (1,078,729) 705,285 745 (348,679) 28,443 53,500 - 344,989 746,024 - - 1,839,881 (1,000) - (6,000) 774,467 52,500 - 2,178,870 926 8,069 6,618 46,161 (303,336) 765,854 7,363 1,876,352 3,121,819 943,335 1,572,738 9,278,719 $ 2,818,483 $ 1,709,189 $ 1,580,101 $ 11,155,071 $ (228,435) $ 677,310 $ 16,191 $ 296,457 (24,956) 1,097 601 (14,498) - 4,800 (72,906) - 1,299 - 1,299 (18,114) 17,685 (16,713) 96,879 (832,090) - - (828,540) 14,175 713 666 142,215 10,691 2,381 - 30,415 $ (1,078,729) $ 705,285 $ 745 $ (348,679) 205 CITY OF TIGARD,OREGON CENTRAL SERVICES FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 11,662,196 $ 11,512,129 $ 11,121,943 $ (390,186) Intergovernmental revenues - 26,086 255,877 229,791 Interest earnings - - 35,088 35,088 Net increase(decrease)in investment fair value - - (6,511) (6,511) Miscellaneous revenues 90,000 90,000 11,149 (78,851) Total revenues 11,752,196 11,628,215 11,417,546 (210,669) EXPENDITURES Policy and administration 12,023,748 12,645,045 11,367,740 1,277,305 Change in fund balance before other financing sources(uses) (271,552) (1,016,830) 49,806 1,066,636 OTHER FINANCING SOURCES(USES) Transfer in 699,752 1,064,819 1,064,819 - Contingency (400,000) (19,789) - 19,789 Reserve for future expenditures (2,024,823) (2,024,823) - 2,024,823 Total other financing sources(uses) (1,725,071) (979,793) 1,064,819 2,044,612 Change in fund balance (1,996,623) (1,996,623) 1,114,625 3,111,248 Fund balance-Beginning of the year 1,996,623 1,996,623 2,468,509 471,886 Fund balance-End of the year $ - $ - 3,583,134 $ 3,583,134 Reconciliation of budgetary fund balance to GAAP basis net position: Net OPEB liability (192,165) Deferred Outflow OPEB 16,807 Deferred Inflow OPEB (64,980) Total net position,GAAP basis $ 3,342,796 206 CITY OF TIGARD,OREGON PUBLIC WORKS ADMINISTRATION FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 2,247,499 $ 2,247,499 $ 2,256,449 $ 8,950 Intergovernmental revenues - - 7,169 7,169 Interest earnings - - 4,279 4,279 Net increase(decrease)in investment fair value - - (2,308) (2,308) Miscellaneous revenues - - 1,246 1,246 Total revenues 2,247,499 2,247,499 2,266,835 19,336 EXPENDITURES Policy and administration 2,267,255 2,290,015 2,174,313 115,702 Change in fund balance before other financing sources(uses) (19,756) (42,516) 92,522 135,038 OTHER FINANCING SOURCES(USES) Transfer in 29,038 29,038 29,038 - Transfer out (5,000) (5,000) (5,000) - Contingency (125,000) (102,240) - 102,240 Reserve for future expenditures (334,585) (334,585) - 334,585 Total other financing sources(uses) (435,547) (412,787) 24,038 436,825 Change in fund balance (455,303) (455,303) 116,560 571,863 Fund balance-Beginning of the year 455,303 455,303 519,854 64,551 Fund balance-End of the year $ - $ - 636,414 $ 636,414 Reconciliation of budgetary fund balance to GAAP basis net position: Net OPEB liability (87,493) Deferred Outflow OPEB 7,652 Deferred Inflow OPEB (29,585) Total net position,GAAP basis $ 526,988 207 CITY OF TIGARD,OREGON PUBLIC WORKS ENGINEERING FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,867,963 $ 3,867,963 $ 3,529,703 $ (338,260) Intergovernmental revenues 149,192 149,192 28,443 (120,749) Interest earnings - - 14,778 14,778 Net increase(decrease)in investment fair value - - (13,852) (13,852) Miscellaneous revenues 90,000 90,000 18,128 (71,872) Total revenues 4,107,155 4,107,155 3,577,200 (529,955) EXPENDITURES Policy and administration 4,651,827 4,651,827 3,765,575 886,252 Change in fund balance before other financing sources(uses) (544,672) (544,672) (188,375) 356,297 OTHER FINANCING SOURCES(USES) Transfer in 1,019,323 1,019,323 746,024 (273,299) Contingency (150,000) (150,000) - 150,000 Reserve for future expenditures (1,983,685) (1,983,685) - 1,983,685 Total other financing sources(uses) (1,114,362) (1,114,362) 746,024 1,860,386 Change in fund balance (1,659,034) (1,659,034) 557,649 2,216,683 Fund balance-Beginning of the year 1,659,034 1,659,034 1,887,161 228,127 Fund balance-End of the year $ - $ - 2,444,810 $ 2,444,810 Reconciliation of budgetary fund balance to GAAP basis net position: Net OPEB liability (172,452) Deferred Outflow OPEB 15,083 Deferred Inflow OPEB (58,314) Total net position,GAAP basis $ 2,229,127 208 CITY OF TIGARD,OREGON FLEET/PROPERTY MANAGEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,196,366 $ 3,196,366 $ 3,133,084 $ (63,282) Intergovernmental revenues - 54,000 53,500 (500) Interest earnings - - 8,432 8,432 Net increase(decrease)in investment fair value - - (363) (363) Miscellaneous revenues 5,000 5,000 109,650 104,650 Total revenues 3,201,366 3,255,366 3,304,303 48,937 EXPENDITURES Policy and administration 3,014,543 3,267,425 2,563,043 704,382 Change in fund balance before other financing sources(uses) 186,823 (12,059) 741,260 753,319 OTHER FINANCING SOURCES(USES) Transfer out (1,000) (1,000) (1,000) - Contingency (125,000) - - - Reserve for future expenditures (872,037) (798,155) - 798,155 Total other financing sources(uses) (998,037) (799,155) (1,000) 798,155 Change in fund balance (811,214) (811,214) 740,260 1,551,474 Fund balance-Beginning of the year 811,214 811,214 808,043 (3,171) Fund balance-End of the year $ - $ - 1,548,303 $ 1,548,303 Reconciliation of budgetary fund balance to GAAP basis net position: Net OPEB liability (38,437) Deferred Outflow OPEB 3,362 Deferred Inflow OPEB (12,997) Total net position,GAAP basis $ 1,500,231 209 CITY OF TIGARD,OREGON INSURANCE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2021 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ 26,500 $ 26,500 $ 12,000 $ (14,500) Net increase(decrease)in investment fair value - - (5,382) (5,382) Miscellaneous revenues 39,000 39,000 100,552 61,552 Total revenues 65,500 65,500 107,170 41,670 EXPENDITURES Policy and administration 239,814 239,814 84,361 155,453 Change in fund balance before other financing sources(uses) (174,314) (174,314) 22,809 197,123 OTHER FINANCING SOURCES(USES) Contingency (25,000) (25,000) - 25,000 Reserve for future expenditures (1,093,250) (1,093,250) - 1,093,250 Total other financing sources(uses) (1,118,250) (1,118,250) - 1,118,250 Change in fund balance (1,292,564) (1,292,564) 22,809 1,315,373 Fund balance-Beginning of the year 1,292,564 1,292,564 1,555,064 262,500 Fund balance-End of the year $ - $ - $ 1,577,873 $ 1,577,873 210 Other Schedules 211 212 CITY OF TIGARD,OREGON SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS For the fiscal year ended June 30,2021 Interest Transactions Original Outstanding Matured/ Outstanding Issue June 30,2020 Additions Called Paid Matured Paid June 30,2021 General Obligation Bonds Issued February 3,2011 $ 8,655,000 $ 2,550,000 $ - $ 815,000 $ (815,000) $ 1,735,000 $ 85,700 $ (85,700) Issued April 28,2020 5,981,000 5,981,000 - 339,000 (339,000) 5,642,000 88,828 (88,828) Issued February 3,2011 17,000,000 5,380,000 - 810,000 (810,000) 4,570,000 220,050 (220,050) $ 13,911,000 $ - $ 1,964,000 $ (1,964,000) $ 11,947,000 $ 394,578 $ (394,578) Full Faith&Credit Bonds Issued September 1,2019 $ 5,929,000 $ 5,929,000 $ - $ 241,000 $ (241,000) $ 5,688,000 $ 165,332 $ (165,332) Revenue Bonds Issued May 1,2012 $97,720,000 $ 89,800,000 $ - $85,160,000 $ (85,160,000) $ 4,640,000 $ 2,303,675 $ (2,303,675) Issued May 1,2015 30,810,000 30,140,000 - 185,000 (185,000) 29,955,000 1,483,800 (1,483,800) Issued November 3,2020 86,575,000 - 86,575,000 - - 86,575,000 494,062 (494,062) $ 119,940,000 $86,575,000 $85,345,000 $ (85,345,000) $ 121,170,000 $4,281,537 $ (4,281,537) Long-term Note Issued December 1,2011 $ 2,398,000 $ 1,585,637 $ - $ 113,614 $ (113,614) $ 1,472,023 $ 47,569 $ (47,569) 213 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF GENERAL OBLIGATION BONDS For the fiscal year ended June 30,2021 Total Debt Series 2011B Series 2020 Series 2011A Service Requirement Issued:February 3,2011 Issued:April 28,2020 Issued:February 3,2011 Fiscal Year Total Total 3.00%to 4.00% 1.34% 3.00%to 4.75% of Maturity Principal Interest Principal Interest Principal Interest Principal Interest 2022 $ 2,136,000 $ 315,653 $ 850,000 $ 52,400 $ 441,000 $ 75,603 $ 845,000 $ 187,650 2023 2,309,000 241,243 885,000 17,700 549,000 69,693 875,000 153,850 2024 2,471,000 181,187 - - 1,561,000 62,337 910,000 118,850 2025 2,634,000 123,869 - - 1,684,000 41,419 950,000 82,450 2026 2,397,000 60,929 - - 1,407,000 18,854 990,000 42,075 $ 11,947,000 $ 922,881 $ 1,735,000 $ 70,100 $ 5,642,000 $ 267,906 $ 4,570,000 $ 584,875 214 CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF FULL FAITH & CREDIT BONDS For the fiscal year ended June 30, 2021 Total Debt Series 2019A Series 2019B Service Requirement Issued: August 29, 2019 Issued: August 29, 2019 Fiscal Year Total Total 2.36% 2.99% of Maturity Principal Interest Principal Interest Principal Interest 2022 $ 248,000 $ 158,631 $ 82,000 $ 42,858 $ 166,000 $ 115,773 2023 254,000 151,731 84,000 40,922 170,000 110,809 2024 262,000 144,666 86,000 38,940 176,000 105,726 2025 269,000 137,374 88,000 36,910 181,000 100,464 2026 276,000 129,886 90,000 34,834 186,000 95,052 2027 284,000 122,201 92,000 32,710 192,000 89,491 2028 293,000 114,288 95,000 30,538 198,000 83,750 2029 300,000 106,126 97,000 28,296 203,000 77,830 2030 308,000 97,767 99,000 26,007 209,000 71,760 2031 317,000 89,182 101,000 23,671 216,000 65,511 2032 326,000 80,340 104,000 21,287 222,000 59,053 2033 335,000 71,248 106,000 18,833 229,000 52,415 2034 2,216,000 61,898 692,000 16,332 1,524,000 45,566 $ 5,688,000 $ 1,465,337 $ 1,816,000 $ 392,137 $ 3,872,000 $ 1,073,200 215 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF WATER REVENUE BONDS For the fiscal year ended June 30,2021 Total Debt Service Requirement Issued:May 1,2012 Issued:May 3,2015 Issued:November 3,2020 Fiscal Year Total Total 3.00%to 5.00% 3.00%to 5.00% 2.00%to 2.90% of Maturity Principal Interest Principal Interest Principal Interest Principal Interest 2022 $ 3,415,000 $ 3,544,543 $ 2,275,000 $ 56,580 $ 190,000 $ 1,476,300 $ 950,000 $ 2,011,663 2023 3,535,000 3,508,263 2,365,000 47,300 200,000 1,468,500 970,000 1,992,463 2024 3,640,000 3,408,763 - - 210,000 1,460,300 3,430,000 1,948,463 2025 3,715,000 3,330,963 - - 215,000 1,451,800 3,500,000 1,879,163 2026 3,795,000 3,251,463 - - 225,000 1,443,000 3,570,000 1,808,463 2027 3,875,000 3,170,163 - - 235,000 1,433,800 3,640,000 1,736,363 2028 3,960,000 3,085,788 - - 245,000 1,422,975 3,715,000 1,662,813 2029 4,045,000 2,998,238 - - 255,000 1,410,475 3,790,000 1,587,763 2030 4,135,000 2,908,563 - - 270,000 1,397,350 3,865,000 1,511,213 2031 4,225,000 2,819,163 - - 280,000 1,386,050 3,945,000 1,433,113 2032 4,315,000 2,727,663 - - 290,000 1,374,250 4,025,000 1,353,413 2033 4,415,000 2,629,383 - - 305,000 1,359,375 4,110,000 1,270,008 2034 4,520,000 2,524,333 - - 325,000 1,343,625 4,195,000 1,180,708 2035 4,630,000 2,412,228 - - 340,000 1,327,000 4,290,000 1,085,228 2036 4,750,000 2,292,713 - - 360,000 1,309,500 4,390,000 983,213 2037 4,880,000 2,165,345 - - 375,000 1,291,125 4,505,000 874,220 2038 5,015,000 2,029,723 - - 395,000 1,271,875 4,620,000 757,848 2039 5,160,000 1,886,483 - - 420,000 1,251,500 4,740,000 634,983 2040 5,310,000 1,736,433 - - 440,000 1,230,000 4,870,000 506,433 2041 5,460,000 1,579,494 - - 455,000 1,207,625 5,005,000 371,869 2042 5,635,000 1,412,500 - - 485,000 1,184,125 5,150,000 228,375 2043 5,810,000 1,236,100 - - 510,000 1,159,250 5,300,000 76,850 2044 7,265,000 964,875 - - 7,265,000 964,875 - - 2045 7,635,000 592,375 - - 7,635,000 592,375 - - 2046 8,030,000 200,750 - - 8,030,000 200,750 - - $ 121,170,000 $ 58,416,308 $ 4,640,000 $ 103,880 $29,955,000 $31,417,800 $ 86,575,000 $ 26,894,628 216 CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF SAFE DRINKING WATER REVOLVING LOAN FUNDS For the fiscal year ended June 30, 2021 Issued: December 1, 2011 Fiscal Year 3.00% of Maturity Principal Interest 2022 $ 117,022 $ 44,161 2023 120,533 40,650 2024 124,149 37,034 2025 127,874 33,310 2026 131,710 29,473 2027 135,661 25,522 2028 139,731 21,452 2029 143,923 17,260 2030 148,241 12,943 2031 152,688 8,495 2032 130,491 3,915 $ 1,472,023 $ 274,215 217 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS WATER FUND For the fiscal year ended June 30,2021 Total Debt Service Requirement Water Revenue Bonds ARRA Water Loan Issued:May 1,2012 Issued:May 3,2015 Issued:November 3,2020 Issued:December 1,2011 Fiscal Year Total Total 3.00%to 5.00% 3.00%to 5.00% 2.00%to 2.90% 3.00% of Maturity Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2022 $ 3,532,022 $ 3,588,704 $ 2,275,000 $ 56,580 $ 190,000 $ 1,476,300 $ 950,000 $ 2,011,663 $ 117,022 $ 44,161 2023 3,655,533 3,548,913 2,365,000 47,300 200,000 1,468,500 970,000 1,992,463 120,533 40,650 2024 3,764,149 3,445,797 - - 210,000 1,460,300 3,430,000 1,948,463 124,149 37,034 2025 3,842,874 3,364,273 - - 215,000 1,451,800 3,500,000 1,879,163 127,874 33,310 2026 3,926,710 3,280,936 - - 225,000 1,443,000 3,570,000 1,808,463 131,710 29,473 2027 4,010,661 3,195,685 - - 235,000 1,433,800 3,640,000 1,736,363 135,661 25,522 2028 4,099,731 3,107,240 - - 245,000 1,422,975 3,715,000 1,662,813 139,731 21,452 2029 4,188,923 3,015,498 - - 255,000 1,410,475 3,790,000 1,587,763 143,923 17,260 2030 4,283,241 2,921,506 - - 270,000 1,397,350 3,865,000 1,511,213 148,241 12,943 2031 4,377,688 2,827,658 - - 280,000 1,386,050 3,945,000 1,433,113 152,688 8,495 2032 4,445,491 2,731,578 - - 290,000 1,374,250 4,025,000 1,353,413 130,491 3,915 2033 4,415,000 2,629,383 - - 305,000 1,359,375 4,110,000 1,270,008 - - 2034 4,520,000 2,524,333 - - 325,000 1,343,625 4,195,000 1,180,708 - - 2035 4,630,000 2,412,228 - - 340,000 1,327,000 4,290,000 1,085,228 - - 2036 4,750,000 2,292,713 - - 360,000 1,309,500 4,390,000 983,213 - - 2037 4,880,000 2,165,345 - - 375,000 1,291,125 4,505,000 874,220 - - 2038 5,015,000 2,029,723 - - 395,000 1,271,875 4,620,000 757,848 - - 2039 5,160,000 1,886,483 - - 420,000 1,251,500 4,740,000 634,983 - - 2040 5,310,000 1,736,433 - - 440,000 1,230,000 4,870,000 506,433 - - 2041 5,460,000 1,579,494 - - 455,000 1,207,625 5,005,000 371,869 - - 2042 5,635,000 1,412,500 - - 485,000 1,184,125 5,150,000 228,375 - - 2043 5,810,000 1,236,100 - - 510,000 1,159,250 5,300,000 76,850 - - 2044 7,265,000 964,875 - - 7,265,000 964,875 - - - - 2045 7,635,000 592,375 - - 7,635,000 592,375 - - - - 2046 8,030,000 200,750 - - 8,030,000 200,750 - - - - $ 122,642,023 $58,690,523 $ 4,640,000 $ 103,880 $29,955,000 $31,417,800 $86,575,000 $26,894,628 $1,472,023 $274,215 218 Statistical Section This part of the City of Tigard's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, required supplementary information and other supplementary information says about the city's overall financial health. Contents Page Financial Trends—These schedules contain trend information to help the reader understand how financial performance has changed over time. 222-238 Revenue Capacity—These schedules contain information to help the reader assess the city's most significant local revenue source, property taxes. 239-244 Debt Capacity—These schedules contain information to help the reader assess the affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future. 245-253 Demographic and Economic Information—These schedules offer demographic and economic indicators to help the reader understand the environment within the city's financial activities take place. 254-256 Operating Information—These schedules contain service and infrastructure data to help the reader understand how the information in the city's financial report relates to the services the city provides and the activities it performs. 257-261 219 220 No content appears on this page by design. 221 CITY OF TIGARD,OREGON NET POSITION BY COMPONENT for the last ten fiscal years (accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year 2012 2013 2014(Restated) GOVERNMENTAL ACTIVITIES Net investment in capital assets $ 179,626,050 $ 181,196,030 $ 185,242,899 Restricted 13,180,057 12,041,725 10,941,117 Unrestricted 8,431,166 14,311,478 13,596,004 Total governmental activities net position 201,237,273 207,549,233 209,780,020 BUSINESS-TYPE ACTIVITIES Net investment in capital assets 65,218,645 74,044,470 79,627,259 Restricted 13,184,382 9,683,852 10,551,442 Unrestricted 19,429,375 18,523,616 16,721,508 Total business-type activities net position 97,832,402 102,251,938 106,900,209 PRIMARY GOVERNMENT Net investment in capital assets 244,844,695 255,240,500 264,870,158 Restricted 26,364,439 21,725,577 21,492,559 Unrestricted 27,860,541 32,835,094 30,317,512 Total primary government net position $ 299,069,675 $ 309,801,171 $ 316,680,229 Source: Annual Comprehensive Financial Report of the City. 222 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2015 2016 2017(Restated) 2018 2019 2020 2021 $ 189,748,234 $ 195,142,143 $ 199,214,099 $ 207,113,453 $ 216,080,286 $ 216,281,021 $ 222,374,600 12,376,136 20,392,998 26,313,186 38,019,099 40,908,235 61,695,111 69,011,237 13,031,415 11,024,212 21,105,136 26,937,963 36,208,160 31,287,737 31,576,376 215,155,785 226,559,353 246,632,421 272,070,515 293,196,681 309,263,869 322,962,213 84,867,665 95,247,967 104,870,812 110,785,680 110,542,303 108,782,212 104,142,931 11,250,300 12,279,628 15,387,870 18,811,969 20,044,161 22,974,348 18,496,564 21,256,129 21,847,155 30,803,556 38,881,215 50,316,066 58,469,800 74,329,841 117,374,094 129,374,750 151,062,238 168,478,864 180,902,530 190,226,360 196,969,336 274,615,899 290,390,110 304,084,911 317,899,133 326,622,589 325,063,233 326,517,531 23,626,436 32,672,626 41,701,056 56,831,068 60,952,396 84,669,459 87,507,801 34,287,544 32,871,367 51,908,692 65,819,178 86,524,226 89,757,537 105,906,217 $ 332,529,879 $ 355,934,103 $ 397,694,659 $ 440,549,379 $ 474,099,211 $ 499,490,229 $ 519,931,549 223 CITY OF TIGARD,OREGON CHANGES IN NET POSITION for the last ten fiscal years (accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year 2012 2013 2014(Restated) EXPENSES Governmental activities Community services $ 20,025,191 $ 19,085,777 $ 23,078,512 Public works 12,489,448 8,585,063 8,399,436 Community development 4,709,751 3,988,011 4,267,328 Policy and administration 2,117,198 1,339,254 1,732,016 Interest on long-term debt 1,125,259 1,226,774 1,147,024 Total governmental activities expenses 40,466,847 34,224,879 38,624,316 Business-type activities Sewer 1,743,929 2,114,054 2,617,625 Stormwater 1,649,715 2,045,399 1,958,551 Water 7,807,706 11,989,337 11,730,347 Total business-type activities program expenses 11,201,350 16,148,790 16,306,523 Total primary government expenses $ 51,668,197 $ 50,373,669 $ 54,930,839 PROGRAM REVENUES Governmental activities Charges for services: Community services $ 1,191,417 $ 2,252,945 $ 1,872,350 Public works 1,915,631 2,120,366 2,519,515 Community development 1,684,287 2,579,329 1,765,005 Policy and administration 84,065 105,755 65,233 Operating grants and contributions 6,952,717 6,924,053 6,318,382 Capital grants and contributions 1,049,774 2,173,900 1,804,398 Total governmental activities program revenues 12,877,891 16,156,348 14,344,883 Business-type activities Charges for services: Sewer 1,025,732 1,203,187 1,727,206 Stormwater 2,402,189 2,629,694 2,733,346 Water 11,895,044 14,907,664 15,985,607 Capital grants and contributions 2,871,726 1,675,987 1,111,346 Total business-type activities program revenues 18,194,691 20,416,532 21,557,505 Total primary government program revenues $ 31,072,582 $ 36,572,880 $ 35,902,388 Source: Annual Comprehensive Financial Report of the City. 224 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2015 2016 2017(Restated) 2018 2019 2020 2021 $ 18,542,379 $ 25,089,790 $ 23,268,637 $ 24,099,976 $ 23,370,174 $ 25,961,675 $ 30,378,435 10,408,399 10,865,800 8,263,304 8,900,831 12,129,476 9,578,442 14,035,986 4,688,686 7,030,142 5,807,204 5,330,390 5,146,891 5,817,188 6,719,376 1,323,435 1,226,166 3,528,933 2,945,936 3,688,137 3,383,319 4,092,081 1,185,507 958,204 949,136 863,803 771,834 760,211 543,661 36,148,406 45,170,102 41,817,214 42,140,936 45,106,512 45,500,835 55,769,539 2,518,708 2,536,988 2,586,769 2,789,140 3,128,483 3,044,154 3,423,460 2,077,589 2,123,162 2,737,825 2,470,085 3,261,312 3,433,481 4,257,993 10,839,483 14,720,167 8,244,491 14,123,903 17,223,333 19,418,199 20,166,820 15,435,780 19,380,317 13,569,085 19,383,128 23,613,128 25,895,834 27,848,273 $ 51,584,186 $ 64,550,419 $ 55,386,299 $ 61,524,064 $ 68,719,640 $ 71,396,669 $ 83,617,812 $ 1,731,639 $ 1,879,576 $ 2,482,811 $ 1,557,082 $ 1,628,237 $ 1,500,919 $ 2,207,360 2,239,431 2,860,543 5,165,280 4,708,329 4,797,891 5,220,273 5,324,404 3,040,501 4,684,733 4,341,128 6,518,737 6,432,190 4,292,102 4,324,710 142,277 119,195 363,583 340,446 345,505 90,582 99,060 6,508,556 7,756,718 6,880,727 8,321,435 9,594,291 9,625,070 13,346,482 2,021,422 11,785,524 15,691,507 16,307,318 12,268,270 8,542,864 8,959,707 15,683,826 29,086,289 34,925,036 37,753,347 35,066,384 29,271,810 34,261,723 1,773,388 1,791,302 3,013,314 3,208,783 3,389,281 3,666,422 3,348,846 2,899,180 3,058,382 3,275,083 3,620,431 3,812,133 4,017,864 3,820,029 18,804,645 20,918,497 20,926,322 23,078,013 23,751,073 22,607,832 24,836,173 2,066,696 5,806,590 7,670,388 6,795,717 3,285,377 3,139,146 2,838,367 25,543,909 31,574,771 34,885,107 36,702,944 34,237,864 33,431,264 34,843,415 $ 41,227,735 $ 60,661,060 $ 69,810,143 $ 74,456,291 $ 69,304,248 $ 62,703,074 $ 69,105,138 225 CITY OF TIGARD,OREGON CHANGES IN NET POSITION(CONTINUED) for the last ten fiscal years (accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year 2012 2013 2014(Restated) NET(EXPENSE)REVENUE Governmental activities $ (27,588,956) $ (18,068,531) $ (24,279,433) Business-type activities 6,993,341 4,267,742 5,250,982 Total primary government net expenses (20,595,615) (13,800,789) (19,028,451) GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities: Property taxes 15,182,467 15,338,744 15,796,663 Franchise fees 4,880,635 5,855,956 5,542,647 Unrestricted intergovernmental revenues 4,798,949 2,500,240 2,955,652 Interest earnings 283,273 248,812 421,211 Miscellaneous 1,583,989 316,512 776,154 Transfers between Governmental and Business-type 2,991,566 120,227 1,017,893 Total governmental activities 29,720,879 24,380,491 26,510,220 Business-type activities: Interest earnings 73,228 114,661 270,415 Miscellaneous 155,164 157,360 144,767 Unrestricted intergovernmental revenues - - - Transfers between Governmental and Business-type (2,991,566) (120,227) (1,017,893) Total business-type activities (2,763,174) 151,794 (602,711) Total primary government 26,957,705 24,532,285 25,907,509 CHANGES IN NET POSITION Governmental activities(restated) 2,131,923 6,311,960 2,230,787 Business-type activities(restated) 4,230,167 4,419,536 4,648,271 Total primary government $ 6,362,090 $ 10,731,496 $ 6,879,058 Source: Annual Comprehensive Financial Report of the City. 226 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2015 2016 2017(Restated) 2018 2019 2020 2021 $ (20,464,580) $ (16,083,813) $ (6,892,178) $ (4,387,589) $ (10,040,128) $ (16,229,025) $ (21,507,816) 10,108,129 12,194,454 21,316,022 17,319,816 10,624,736 7,535,430 6,995,142 (10,356,451) (3,889,359) 14,423,844 12,932,227 584,608 (8,693,595) (14,512,674) 16,523,361 17,177,591 17,616,798 18,387,321 19,101,543 20,325,728 23,620,200 5,687,456 5,734,540 5,890,113 6,095,852 6,211,736 6,360,563 6,978,783 3,004,341 2,840,903 2,074,428 3,022,051 2,522,428 2,484,051 2,426,817 434,401 688,087 824,213 1,683,282 2,416,827 2,520,783 558,060 247,154 228,779 268,380 416,785 453,435 502,164 702,068 (56,368) 817,481 291,314 220,392 460,325 102,924 920,232 25,840,345 27,487,381 26,965,246 29,825,683 31,166,294 32,296,213 35,206,160 131,485 302,890 106,628 139,926 1,606,834 1,770,933 307,581 177,903 193,645 270,628 177,276 652,421 120,392 276,262 127,148 285,524 - - - 84,220 56,368 (817,481) (291,314) (220,392) (460,325) (102,924) (920,232) 365,756 (193,798) 371,466 96,810 1,798,930 1,788,401 (252,169) 26,206,101 27,293,583 27,336,712 29,922,493 32,965,224 34,084,614 34,953,991 5,375,765 11,403,568 20,073,068 25,438,094 21,126,166 16,067,188 13,698,344 10,473,885 12,000,656 21,687,488 17,416,626 12,423,666 9,323,831 6,742,973 $ 15,849,650 $ 23,404,224 $ 41,760,556 $ 42,854,720 $ 33,549,832 $ 25,391,019 $ 20,441,317 227 CITY OF TIGARD,OREGON FUND BALANCES OF GOVERNMENTAL FUNDS for the last ten fiscal years (modified accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year 2012 2013 2014 GENERAL FUND Nonspendable $ 471,975 $ 472,941 $ 508,374 Unassigned 7,378,411 9,687,736 11,474,700 Total General Fund $ 7,850,386 $ 10,160,677 $ 11,983,074 ALL OTHER GOVERNMENTAL FUNDS Nonspendable $ - $ 14,986 $ 16,055 Restricted 15,568,787 14,859,784 12,504,001 Committed 3,217,309 4,020,435 4,457,233 Assigned 428,823 670,223 905,166 Unassigned (498,110) (601,324) (752,925) Total all other governmental funds $ 18,716,809 $ 18,964,104 $ 17,129,530 Source: Annual Comprehensive Financial Report of the City. 228 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2015 2016 2017 2018 2019 2020 2021 $ 542,543 $ 664,254 $ 706,412 $ 705,495 $ 225,974 $ 1,158,584 $ 1,155,514 12,115,436 12,970,670 14,884,712 19,356,804 23,121,341 26,823,013 29,764,210 $ 12,657,979 $ 13,634,924 $ 15,591,124 $ 20,062,299 $ 23,347,315 $ 27,981,597 $ 30,919,724 $ 11,225 $ - $ 16,485 $ 17,040 $ 17,560 $ 18,080 $ - 11,791,605 18,250,934 31,914,910 45,521,700 51,414,137 91,514,895 69,593,046 2,801,857 3,260,236 4,341,838 3,307,731 3,325,235 3,556,651 4,215,954 1,156,788 1,597,773 1,725,086 1,738,216 2,388,659 3,257,280 3,562,612 (352,684) (617,329) (725,296) (724,477) - (228,869) (122,328) $ 15,408,791 $ 22,491,614 $ 37,273,023 $ 49,860,210 $ 57,145,591 $ 98,118,037 $ 77,249,284 229 CITY OF TIGARD,OREGON CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS for the last ten fiscal years (modified accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year 2012 2013 2014 REVENUES Taxes $ 17,767,128 $ 18,208,253 $ 18,822,449 City gas tax* - 830,031 638,852 Franchise fees 4,880,635 5,724,192 5,542,647 Special assessments 38,776 43,170 258,831 Licenses and permits 2,444,551 3,175,118 3,098,875 Intergovernmental revenues 6,586,757 6,040,986 6,386,961 Charges for service 2,087,993 4,624,844 4,982,211 System development charges 971,660 2,007,935 955,678 Fines and forfeitures 1,092,296 1,038,948 929,293 Interest earnings 262,080 254,237 424,221 Miscellaneous 633,575 206,443 312,815 Total revenues 36,765,451 42,154,157 42,352,833 EXPENDITURES Current operating: Community services 19,638,469 18,636,382 19,420,335 Public works 6,354,390 6,551,980 6,914,185 Community development 3,902,223 3,937,089 4,219,481 Policy and administration 819,034 711,385 701,172 Debt service: Principal 1,894,125 1,992,500 2,445,993 Interest 1,652,691 1,264,795 1,178,637 Refunded bonds - - - Refunding bond issuance cost - - - Capital outlay 4,037,766 6,357,256 7,657,993 Total expenditures 38,298,698 39,451,387 42,537,796 Excess(deficiency)of revenues over(under)expenditures (1,533,247) 2,702,770 (184,963) OTHER FINANCING SOURCES(USES) Proceeds from bond/long-term note - - - Operating transfers in 6,969,663 4,735,619 6,420,053 Operating transfers out (5,575,062) (4,880,803) (6,247,267) Total other financing sources(uses) 1,394,601 (145,184) 172,786 Net change in fund balances $ (138,646) $ 2,557,586 $ (12,177) Debt services as a percentage of non-capital expenditures 12.75% 10.92% 11.60% * City gas tax was broken out of intergovernmental revenues beginning in fiscal year 2013. Source: Annual Comprehensive Financial Report of the City. 230 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2015 2016 2017 2018 2019 2020 2021 $ 19,575,665 $ 20,191,927 $ 20,704,055 $ 21,822,129 $ 25,248,472 $ 25,582,940 $ 29,710,860 558,740 712,408 844,866 887,038 888,913 831,411 695,284 5,691,960 5,732,448 5,886,791 6,102,443 6,218,353 6,365,589 6,980,858 35,359 65,243 52,146 50,036 59,999 46,554 90,251 4,030,120 5,751,472 6,662,790 7,648,235 5,178,056 4,050,568 3,705,222 6,370,732 6,684,667 8,228,693 8,737,359 9,498,510 9,364,516 12,635,993 4,342,534 4,869,821 5,930,289 6,636,913 4,648,396 5,369,990 5,553,225 961,450 6,104,579 11,733,901 9,860,311 4,240,910 5,606,246 5,124,725 924,266 972,560 713,059 698,508 843,100 828,444 1,521,113 434,401 653,879 799,748 1,659,107 2,343,694 2,315,941 511,899 413,736 220,894 349,098 1,204,701 1,284,229 526,208 611,322 43,338,963 51,959,898 61,905,436 65,306,780 60,452,632 60,888,407 67,140,752 20,325,635 20,784,186 21,925,169 22,631,248 22,051,531 23,708,112 28,732,927 7,512,446 7,606,128 8,291,205 8,899,175 6,105,157 6,153,581 6,881,610 4,640,737 6,981,903 5,807,836 5,345,399 5,272,175 5,875,274 6,827,722 778,840 831,876 787,681 795,586 993,346 843,032 1,029,244 2,117,045 2,361,892 2,378,100 2,454,000 2,530,800 3,117,619 2,205,000 1,118,238 1,059,733 977,539 892,206 799,646 809,003 568,882 - - - - - 5,725,537 - - - - - - 59,234 - 8,924,317 6,200,291 4,705,720 6,742,438 8,907,102 8,064,935 8,452,271 45,417,258 45,826,009 44,873,250 47,760,052 46,659,757 54,356,327 54,697,656 (2,078,295) 6,133,889 17,032,186 17,546,728 13,792,875 6,532,080 12,443,096 1,300,000 1,650,000 - - - 11,910,000 - 6,178,215 6,378,318 4,755,215 4,174,624 8,808,520 6,385,695 8,121,091 (6,445,754) (6,102,439) (5,049,792) (4,662,990) (9,952,900) (7,043,924) (9,034,740) 1,032,461 1,925,879 (294,577) (488,366) (1,144,380) 11,251,771 (913,649) $ (1,045,834) $ 8,059,768 $ 16,737,609 $ 17,058,362 $ 12,648,495 $ 17,783,851 $ 11,529,447 8.98% 9.00% 8.56% 8.28% 8.82% 8.48% 6.00% 231 CITY OF TIGARD,OREGON GOVERNMENTAL REVENUES For the last ten fiscal years Program Revenues Fiscal Charges Operating Capital Year Ended for Grants and Grants and Franchise June 30 Services Contributions Contributions Taxes Fees 2012 $ 4,875,400 $ 6,952,717 $ 1,049,774 $ 15,182,467 $ 4,880,635 2013 7,058,395 6,924,053 2,173,900 15,338,744 5,855,956 2014 6,222,103 6,318,382 1,804,398 15,796,663 5,542,647 2015 7,153,848 6,508,556 2,021,422 16,523,361 5,687,456 2016 9,544,047 7,756,718 11,785,524 17,177,591 5,734,540 2017 12,352,802 6,880,727 15,691,507 17,616,798 5,890,113 2018 13,124,594 8,321,435 16,307,318 18,387,321 6,095,852 2019 13,203,823 9,594,291 12,268,270 19,101,543 6,211,736 2020 11,103,876 9,625,070 8,542,864 20,325,728 6,360,563 2021 11,955,534 13,346,482 8,959,707 23,620,200 6,978,783 CITY OF TIGARD,OREGON BUSINESS-TYPE REVENUES For the last ten fiscal years Program Revenues Fiscal Charges Operating Capital Year Ended for Grants and Grants and Franchise June 30 Services Contributions Contributions Taxes Fees 2012 $ 15,322,964 $ - $ 2,871,726 $ - $ - 2013 18,740,545 - 1,675,987 - - 2014 20,446,159 - 1,111,346 - - 2015 23,477,213 - 2,066,696 - - 2016 25,768,181 - 5,806,590 - - 2017 27,214,719 - 7,670,388 - - 2018 29,907,227 - 6,795,717 - - 2019 30,952,487 - 3,285,377 - - 2020 30,292,118 - 3,139,146 - - 2021 32,005,048 - 2,838,367 - - Source: Annual Comprehensive Financial Report of the City-Statement of Activities. 232 General Revenues Gain(Loss)on Intergovernmental Interest Disposition of Revenues Earnings Capital Assets Miscellaneous Total $ 4,798,949 $ 283,273 $ - $ 1,583,989 $ 39,607,204 2,500,240 248,812 - 316,508 40,416,608 2,955,652 421,211 - 776,154 39,837,210 3,004,341 434,401 (25,998) 273,152 41,580,539 2,840,903 688,087 - 228,779 55,756,189 2,074,428 824,213 - 268,380 61,598,968 3,022,051 1,683,282 - 416,785 67,358,638 2,522,428 2,416,827 - 453,435 65,772,353 2,484,051 2,520,783 - 502,164 61,465,099 2,426,817 558,060 - 702,068 68,547,651 General Revenues Gain(Loss)on Intergovernmental Interest Disposition of Revenues Earnings Capital Assets Miscellaneous Total $ - $ 73,228 $ - $ 155,164 $ 18,423,082 114,661 - 157,360 20,688,553 - 270,415 - 144,767 21,972,687 - 131,485 - 177,903 25,853,297 127,148 302,890 - 193,645 32,198,454 285,524 106,628 - 270,628 35,547,887 - 139,926 - 177,276 37,020,146 - 1,606,834 - 652,421 36,497,119 - 1,770,933 - 120,392 35,322,589 84,220 307,581 - 276,262 35,511,478 233 CITY OF TIGARD,OREGON GOVERNMENTAL EXPENSES BY FUNCTION For the last ten fiscal years Fiscal Year Ended Community Community Policy and June 30 Services Public Works Development Administration 2012 $ 20,025,189 $ 12,489,448 $ 4,709,750 $ 2,117,198 2013 19,085,777 8,585,063 3,988,011 1,339,254 2014(Restated) 23,078,512 8,399,436 4,267,328 1,732,016 2015 18,542,379 10,408,399 4,688,686 1,323,435 2016 25,089,790 10,865,800 7,030,142 1,226,166 2017(Restated) 23,268,637 8,263,304 5,807,204 3,528,933 2018 24,099,976 8,900,831 5,330,390 2,945,936 2019 23,370,174 12,129,476 5,146,891 3,688,137 2020 25,961,675 9,578,442 5,817,188 3,383,319 2021 30,378,435 14,035,986 6,719,376 4,092,081 CITY OF TIGARD,OREGON BUSINESS-TYPE EXPENSES BY FUNCTION For the last ten fiscal years Fiscal Year Ended June 30 Sewer Stormwater Water Total 2012 $ 1,743,929 $ 1,649,718 $ 7,807,706 $ 11,201,353 2013 2,114,054 2,045,399 11,989,337 16,148,790 2014 2,617,625 1,958,551 11,730,347 16,306,523 2015 2,518,708 2,077,589 10,839,483 15,435,780 2016 2,536,988 2,123,162 14,720,167 19,380,317 2017(Restated) 2,586,769 2,737,825 8,244,491 13,569,085 2018 2,789,140 2,470,085 14,123,903 19,383,128 2019 3,128,483 3,261,312 17,223,333 23,613,128 2020 3,044,154 3,433,481 19,418,199 25,895,834 2021 3,423,460 4,257,993 20,166,820 27,848,273 Source: Annual Comprehensive Financial Report of the City. 234 Interest on Long-Term Debt Total $ 1,125,259 $ 40,466,844 1,226,774 34,224,879 1,147,024 38,624,316 1,185,507 36,148,406 958,204 45,170,102 949,136 41,817,214 863,803 42,140,936 771,834 45,106,512 760,211 45,500,835 543,661 55,769,539 235 CITY OF TIGARD,OREGON GENERAL GOVERNMENTAL REVENUES BY SOURCES- BUDGETARY BASIS For the last ten fiscal years Fiscal Licenses Inter- Year Ended Franchise and governmental June 30 Taxes Fees Permits Revenues 2012 $ 17,767,128 $ 4,880,635 $ 2,444,551 $ 6,586,757 2013 18,208,253 5,724,192 3,175,118 6,871,017 2014 19,720,132 5,542,647 3,098,875 6,386,961 2015 19,575,665 5,691,960 4,030,120 6,929,472 2016 20,904,335 5,732,448 5,751,472 6,684,667 2017 21,548,921 5,886,791 6,662,790 8,228,693 2018 22,709,167 6,102,443 7,648,235 8,737,359 2019 26,137,385 6,218,353 5,178,056 9,498,510 2020 26,414,351 6,365,589 4,050,568 9,364,516 2021 30,406,144 6,980,858 3,705,222 12,635,993 * Includes special assessments collections,interest earnings,and other revenues. Information derived from Annual Comprehensive Financial Reports for all Governmental Fund Types 236 Charges System For Development Fines and Miscellaneous Services Charges Forfeitures Revenues* Total $ 2,087,993 $ 971,660 $ 1,092,296 $ 934,431 $ 36,765,451 4,624,844 2,007,935 1,038,948 503,850 42,154,157 4,982,211 955,678 929,293 737,036 42,352,833 4,342,534 961,450 924,266 883,496 43,338,963 4,869,821 6,104,579 972,560 940,016 51,959,898 5,930,289 11,733,901 713,059 1,200,992 61,905,436 6,636,913 9,860,311 698,508 2,913,844 65,306,780 4,648,396 4,240,910 843,100 3,687,922 60,452,632 5,369,990 5,606,246 828,444 2,888,703 60,888,407 5,553,225 5,124,725 1,521,113 1,213,472 67,140,752 237 CITY OF TIGARD,OREGON GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION- BUDGETARY BASIS For the last ten fiscal years City-Wide Support Fiscal Public Works Functions, Year Ended Community and Community Policy and Capital Projects Debt June 30 Services Development Administration and Other Service Total 2012 $ 19,638,468 $ 10,256,613 $ 819,034 $ 4,037,766 $ 3,546,817 $ 38,298,698 2013 18,636,382 10,489,069 711,385 6,357,256 3,257,295 39,451,387 2014 19,420,335 11,133,666 701,172 7,657,993 3,624,630 42,537,796 2015 20,325,635 12,153,183 778,840 8,924,317 3,235,283 45,417,258 2016 20,784,186 14,588,031 831,876 6,200,291 3,421,625 45,826,009 2017 21,925,169 14,099,041 787,681 4,705,720 3,355,639 44,873,250 2018 22,631,248 14,244,574 795,586 6,742,438 3,346,206 47,760,052 2019 22,051,531 11,377,332 993,346 11,087,518 3,330,446 48,840,173 2020 23,708,112 11,425,756 843,032 8,783,405 9,652,422 54,412,727 2021 28,732,927 13,709,332 1,029,244 9,930,747 2,773,882 56,176,132 Information derived from Annual Comprehensive Financial Reports for all Governmental Fund Types 238 CITY OF TIGARD,OREGON MARKET VALUE AND ASSESSED VALUE OF TAXABLE PROPERTY For the last ten fiscal years Fiscal Assessed Value Assessed Year Total Estimated Real to Value Ended Personal Public Utility Total Assessed Direct Market Value as a% June 30 Real Property Property Property Value Tax Rate* (RMV) of RMV 2012 $ 4,740,820,190 $ 233,150,042 $ 185,094,100 $ 5,159,064,332 $ 3.02 $ 6,916,823,794 75% 2013 4,879,417,110 234,122,196 168,258,100 5,281,797,406 4.28 6,727,550,189 78.51% 2014 5,066,140,190 235,966,170 165,074,260 5,467,180,620 3.44 7,032,753,815 77.74% 2015 5,269,294,630 252,215,379 188,500,300 5,710,010,309 4.24 7,699,660,882 74.16% 2016 5,468,508,420 257,861,916 181,220,400 5,907,590,736 5.52 8,082,751,732 73.09% 2017 5,685,260,390 269,725,107 168,515,800 6,123,501,297 4.66 8,989,238,324 68.12% 2018 5,981,800,420 284,167,678 185,901,766 6,451,869,864 2.95 9,883,766,510 65.28% 2019 6,314,865,980 285,495,149 165,706,700 6,766,067,829 2.95 10,754,179,526 62.92% 2020 6,605,395,460 275,633,450 165,371,900 7,046,400,810 3.02 11,283,691,608 62.45% 2021 6,894,538,760 286,915,023 198,521,700 7,379,975,483 3.06 12,790,362,675 57.70% *per$1,000 of assessed value/including phase in rates Source: Washington County Assessment and Taxation 239 CITY OF TIGARD,OREGON PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS (Dollars per$1,000 of Assessed Value rounded to the nearest cent) For the last ten fiscal years City of Tigard Tigard/ Direct Rates Tualatin Fiscal Total School Year Ended Perm Debt Urban City of Washington District June 30 Rate Svc Renewal Phase In Tigard County No.23-J 2012 $ 2.51 $ 0.45 $ 0.06 $ 0.83 $ 3.02 $ 2.97 $ 7.44 2013 2.51 0.44 0.06 1.27 4.28 2.96 7.38 2014 2.51 0.44 0.06 0.43 3.44 2.96 7.41 2015 2.51 0.42 0.07 1.24 4.24 2.83 7.43 2016 2.51 0.42 0.07 2.51 5.52 2.83 7.43 2017 2.51 0.39 0.08 1.68 4.66 2.95 7.41 2018 2.51 0.36 0.08 - 2.95 2.94 7.73 2019 2.51 0.35 0.08 - 2.95 2.94 7.71 2020 2.51 0.34 0.17 - 3.02 2.93 7.70 2021 2.51 0.33 0.21 3.06 2.96 7.79 Taxes levied may be composed of three types of levies: (1)a base operating levy, (2)a special operating levy approved by the voters in the district and (3)a debt service levy. Each district with outstanding General Obligation bonded debt is required to levy taxes sufficient with other available funds,to meet principal and interest payments when due. Assessment and tax rolls are prepared and maintained by Washington County for all taxing districts with territory in the County.The County collects all taxes against property in the County(except assessments for improvements charged to benefited property)and distributes taxes collected at least monthly. No charges are made to the taxing districts for these services. NOTE:-Not all taxing districts are charged on each parcel of property,actual rates on tax bills are a combination of the above depending upon the location of the parcel and the school district and sewer and water district boundaries. Total overlapping tax rates for property in Tigard in 2015 ranged from $13.31/$1,000 to$16.60/$1,000. Source: Washington County Department of Assessment and Taxation. 240 Overlapping Rates Washington Beaverton Tualatin County Hillsboro Total Direct School Valley Rural Fire Portland School Other & District Fire&Rescue District Community District Taxing Overlapping No.48-J District No.2 College No.1-J Agencies Rates $ 6.86 $ 1.92 $ 1.69 $ 0.60 $ 7.47 $ 1.88 $ 33.85 6.77 1.91 1.69 0.66 7.50 0.72 33.87 8.05 1.91 1.69 0.73 7.41 0.78 34.38 8.04 1.88 - 0.72 - 0.77 25.91 7.96 2.10 - 0.58 - 0.70 27.11 7.92 2.09 - 0.68 - 0.71 26.42 8.05 2.07 - 0.60 - 0.80 25.15 8.02 2.07 - 0.69 - 0.85 25.24 7.91 2.05 - 0.68 - 0.99 25.28 8.03 2.12 0.68 0.99 25.62 241 CITY OF TIGARD,OREGON PRINCIPAL PROPERTY TAXPAYERS For current and nine years ago 2021 2012 Percentage Percentage Taxable of Total City Taxable of Total City Taxpayer Assessed Value Rank Assessed Value Assessed Value Rank Assessed Value Pacific Realty Associates $ 245,889,887 1 3.49% $ 190,885,380 1 3.70% PPR Washington Square LLC 146,100,715 2 2.07% 123,817,544 2 2.40% Lincoln Center LLC 105,641,669 3 1.50% 82,545,029 3 1.60% Polygon WLH LLC 52,368,120 4 0.74% Portland General Electric 50,339,931 5 0.71% 30,954,386 6 0.60% ROIC Oregon LLC 37,429,370 6 0.53% PPR Square Too LLC 36,145,800 7 0.51% Comcast Corporation 38,403,000 8 0.55% 29,530,410 7 0.57% Washington Square Porperty lnvestmen 33,286,038 9 0.47% Northwest Natural Gas 32,558,800 10 26,811,900 8 0.52% Frontier Communications 61,908,772 4 1.20% Walton CWOR Park LLC 41,272,515 5 0.80% Constance Robinson(Trust) 24,893,947 9 0.48% Macy's Department Stores 22,553,550 10 0.44% Total $ 778,163,330 10.58% $ 635,173,433 12.31% Source: Washington County Assessment&Taxation records. 242 CITY OF TIGARD,OREGON PROPERTY TAX LEVIES AND COLLECTIONS For the last ten fiscal years Fiscal Percent Percent Year Percent Delinquent Total Tax Outstanding Delinquent Ended Total Tax Current Tax of Levy Tax Total Tax Collections Delinquent Taxes To June 30 Levy Collections Collections Collections Collections To Tax Levy Taxes Tax Levy 2012 $ 15,594,066 $ 14,835,580 95.14% $ 240,430 $ 15,076,010 96.68% $ 737,903 4.73% 2013 15,878,914 15,161,562 95.48% 232,090 15,393,652 96.94% 704,610 4.44% 2014 16,326,904 15,532,675 95.14% 318,264 15,850,939 97.08% 740,392 4.53% 2015 16,999,999 16,251,269 95.60% 302,878 16,554,147 97.38% 713,889 4.20% 2016 17,261,106 16,496,169 95.57% 236,347 16,732,516 96.94% 775,731 4.49% 2017 18,145,192 17,322,014 95.46% 230,652 17,552,666 96.73% 857,408 4.73% 2018 18,484,904 17,649,531 95.48% 195,660 17,845,191 96.54% 851,931 4.61% 2019 19,292,388 18,519,287 95.99% 614,510 19,133,797 99.18% 308,522 1.60% 2020 19,872,169 19,065,112 95.94% 196,858 19,261,970 96.93% 332,405 1.67% 2021 22,843,543 22,171,105 97.06% 206,825 22,377,930 97.96% 349,916 1.53% Taxes are levied as of July 1 each year and are payable in three installments,without interest,on November 15, February 15 and May 15. Interest is charged at the rate of 1%per month on delinquent taxes. Tax liens are foreclosed after three year's delinquencies.Taxpayers receive a discount of 3%for payment in full by November 15 and 2%for payment of two thirds of the total taxes due. Source:Washington County Property Tax Schedule. 2021 Increase is new Public Safety Tax levy 243 CITY OF TIGARD,OREGON SPECIAL ASSESSMENT COLLECTIONS For the last ten fiscal years Fiscal Current Ratio of Total Year Ended Assessments Assessments Collections Assessments Outstanding June 30 Due(1) Collected(2) to Amount Due Added Assessments 2012 $ 38,776 $ 28,365 73.15% $ - $ 826,012 2013 62,500 118,888 190.22% 196,615 903,739 2014 457,983 457,983 100.00% - 445,756 2015 72,045 72,045 100.00% - 373,711 2016 77,392 77,392 100.00% - 296,319 2017 83,100 83,100 100.00% - 213,219 2018 89,000 89,000 100.00% - 124,219 2019 95,800 95,800 100.00% - 28,419 2020 28,419 28,419 100.00% - - 2021 - - 0.00% - - (1)This amount is equal to the matured principal on Bancroft improvement bonds. (2)Represents collections of current assessments for payment of Bancroft improvement bonds as well as assessment collections on projects for which such bonds have not been issued. Source: City assessment records. 244 CITY OF TIGARD,OREGON RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR LONG-TERM DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES For the last ten fiscal years Percent of Fiscal Total General Debt Service to Year Ended Total Debt Governmental Total General June 30 Principal Interest Service Expenditures Expenditures 2012 $ 1,894,126 $ 1,652,691 $ 3,546,817 $ 38,298,698 9.26% 2013 1,992,500 1,264,795 3,257,295 39,451,387 8.26% 2014 2,445,993 1,178,637 3,624,630 42,537,796 8.52% 2015 2,117,045 1,118,238 3,235,283 45,417,258 7.12% 2016 2,361,892 1,059,733 3,421,625 45,829,009 7.47% 2017 2,378,100 977,539 3,355,639 44,873,250 7.48% 2018 2,454,000 892,206 3,346,206 47,760,052 7.01% 2019 2,530,800 799,646 3,330,446 48,840,173 6.82% 2020 8,843,419 809,003 9,652,422 54,412,727 17.74% 2021 2,205,000 568,882 2,773,882 56,176,132 4.94% Source: Annual Comprehensive Financial Report of the City. 245 CITY OF TIGARD,OREGON RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA For the last ten fiscal years Gross General Less Debt Ratio of Net Fiscal Obligation Service Net Bonded Debt Net Bonded Year Ended Assessed Bonded Debt Monies Bonded to Assessed Debt Per June 30 Population Value Outstanding Available Debt Value Capita 2012 48,415 $ 5,159,064,332 $ 30,735,000 $ 1,466,537 $ 29,268,463 0.57% $ 604.53 2013 48,695 5,281,797,406 29,397,612 1,555,741 27,841,871 0.53% 571.76 2014 50,444 5,467,180,620 27,504,927 2,147,352 25,357,575 0.46% 502.69 2015 50,787 5,710,010,309 24,990,106 1,828,324 23,161,782 0.41% 456.06 2016 51,253 5,907,590,736 22,862,084 1,982,373 20,879,711 0.35% 407.39 2017 51,902 6,123,501,297 20,675,137 1,832,468 18,842,669 0.31% 363.04 2018 53,697 6,451,869,864 18,419,297 2,233,505 16,185,792 0.25% 301.43 2019 53,450 6,766,067,829 16,094,594 2,501,277 13,593,317 0.20% 254.32 2020 54,520 7,046,400,810 19,870,531 1,517,668 18,352,863 0.26% 336.63 2021 54,539 7,379,975,483 17,657,088 4,585,351 13,071,737 0.18% 239.68 Source: City budget documents,Annual Comprehensive Financial Reports of the City and Washington Department of Assessment and Taxation. 246 CITY OF TIGARD,OREGON COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30,2021 Percent Amount Applicable Applicable Net Debt Inside City of Inside City of Jurisdiction Outstanding Tigard* Tigard Tigard/Tualatin School District#23-J $ 322,883,542 47.46% $ 153,231,165 Metro 920,585,000 3.31% 30,461,237 Beaverton School District#48 957,104,907 3.85% 36,870,552 Portland Community College 545,535,000 4.17% 22,722,078 Washington County 196,818,344 10.30% 20,275,045 Tualatin Valley Fire&Rescue District 17,325,000 10.97% 1,899,704 Sub-Total of Overlapping Debt 2,960,251,793 265,459,781 City of Tigard 17,657,088 100.00% 17,657,088 Total for Overlapping Debt $ 2,977,908,881 $ 283,116,869 *The City of Tigard does not calculate this percentage; it is provided by the State of Oregon. Source: Oregon State Treasury Debt Management Division. 247 CITY OF TIGARD,OREGON COMPUTATION OF LEGAL DEBT MARGIN For the last ten fiscal years 2012 2013 2014 2015 Debt limit $ 207,504,714 $ 201,826,506 $ 210,982,614 $ 230,989,826 Total net debt applicable to limit 30,735,000 28,800,576 26,820,000 24,775,000 Legal debt margin $ 176,769,714 $ 173,025,930 $ 184,162,614 $ 206,214,826 Total net debt applicable to the limit as a percentage of debt limit 14.81% 14.27% 12.71% 10.73% Note: Pursuant to Oregon Revised Statutes 223.295 outstanding general obligation debt is limited to 3%real market value. Source: Washington County Department of Assessment and Taxation. 248 2016 2017 2018 2019 2020 2021 $ 242,482,552 $ 269,677,150 $ 296,512,995 $ 322,625,386 $ 338,510,748 383,710,880 22,670,000 20,505,000 18,269,800 15,965,000 19,840,000 17,635,000 $ 219,812,552 $ 137,195,419 $ 278,243,195 $ 306,660,386 $ 318,670,748 366,075,880 9.35% 7.60% 6.16% 4.95% 5.86% 4.60% Legal Debt Margin Calculation at June 30,2021 True cash value(2020-2021) $ 12,790,362,675 Limit as a percent 3% Debt Limit(as a percent of real market value) 383,710,880 Debt applicable to limit: Gross bonded debt $ 17,657,088 Excludable debt-Bancroft improvement bonds,bond premium, capital lease and commercial bank loan (22,088) Debt subject to limitation 17,635,000 Legal debt margin-amount available for future indebtedness 366,075,880 Total net debt applicable to the limit as a percent of debt limit 4.60% 249 CITY OF TIGARD,OREGON RATIO OF DEBT BY TYPE For the last ten fiscal years Governmental Activities Fiscal General Bank Year Ended Obligation Bancroft Loan Capital June 30 Population Bonded Debt Bonded Debt Payable Lease 2012 48,415 $ 30,735,000 $ 966,239 $ - $ - 2013 48,695 28,805,000 903,739 - 58,074 2014 50,444 27,059,171 445,756 - 58,074 2015 50,787 24,990,106 373,711 1,300,000 44,482 2016 51,253 22,862,084 296,319 1,170,000 30,290 2017 51,902 20,675,137 213,219 1,040,000 15,472 2018 52,785 18,419,297 124,019 910,000 - 2019 53,450 16,094,594 28,419 780,000 - 2020 54,520 19,870,531 - - - 2021 54,539 17,657,088 - - - *Revenue bonds issued for improvements to the Tigard Water Service Area(TWSA)are liabilities of the City of Tigard, but were not issued as full faith and credit obligations. Debt service on these bonds will be paid by customers of TWSA,which includes residents in the cities of Tigard,Durham and King City,and an unincorporated area of Washington County. ** Personal income is not available for the City of Tigard,so per capita income for Washington County is used. Sources: City budget documents,Annual Comprehensive Financial Reports of the City and Washington County Deaprtment of Assessment and Taxation. 250 Business-type Activities Percentage Notes Payable Revenue Total Primary of Personal Per Debt Bonds* Government Income** Capita $ 2,398,000 $ 105,367,290 $ 139,466,529 9.44% $ 2,881 2,293,486 104,896,687 136,956,986 8.65% 2,813 2,201,107 104,896,686 134,660,794 7.92% 2,670 2,105,957 139,643,153 168,457,409 9.51% 3,317 2,007,952 139,003,308 165,369,953 9.00% 3,227 1,907,007 136,420,282 160,271,117 9.00% 3,088 1,803,034 133,775,926 155,032,276 8.45% 2,937 1,695,942 131,055,591 149,654,546 7.72% 2,800 1,585,637 128,254,644 149,710,812 7.03% 2,746 1,472,023 124,812,611 143,941,722 6.54% 2,639 251 CITY OF TIGARD,OREGON COMPUTATION OF WATER REVENUE BONDS DEBT COVERAGE For the last nine fiscal years(1) 2013 2014 2015 Gross revenues $ 14,907,664 $ 16,079,753 $ 18,944,301 System Development Charges(SDC) related: SDC Fund interest earnings 4,746 - 9,294 Reimbursement fee receipts(2) 881,294 442,651 308,896 Improvement fee receipts(3) 660,425 389,460 503,853 Total SDC-related 1,546,465 832,111 822,043 Operating expense: Salaries and wages 1,131,531 1,225,170 1,462,677 Contracted services 249,857 400,972 336,178 Water purchases 3,177,982 3,199,292 2,644,491 General, admin and other 2,316,605 2,548,678 2,781,892 Total operating expenses 6,875,975 7,374,112 7,225,238 Net revenues(including SDCs) 9,578,154 9,537,752 12,541,106 Net revenues(excluding SDCs) $ 8,031,689 $ 8,705,641 $ 11,719,063 Debt service-first lien bonds: 2012 bonds $ 3,539,888 $ 4,719,850 $ 4,719,850 2015 bonds - - - 2020 bonds - - - Total debt service $ 3,539,888 $ 4,719,850 $ 4,719,850 Debt service coverage-first lien bonds (excluding system development charges) 2.27 1.84 2.48 (1) Revenue bonds were issued in May 2012 and February 2015. One of the debt covenants requires debt service coverage(Net revenues divided by debt service)to be a minimum of 1.1x. (2) Reimbursement fees may not be available to pay debt service on the 2012 Bonds until City Council takes action to authorize that use of those fees for the projects. (3) Improvement fees have been approved for the projects related to the Lake Oswego-Tigard Water Partnership. Tigard anticipated approximately 85%of the bond proceeds to be used to finance projects related to the Partnership and approximately 15%of the bond proceeds to be used to finance projects that are not directly related to the partnership. 252 2016 2017 2018 2019 2020 2021 $ 20,918,497 $ 20,926,322 $ 23,078,014 $ 23,751,073 $ 22,607,832 $ 24,836,173 35,173 6,660 4,694 343,069 351,524 68,639 1,242,297 3,010,263 1,924,587 921,379 1,258,967 934,950 1,569,645 3,521,776 2,319,737 949,056 1,600,366 1,120,049 2,847,115 6,538,699 4,249,018 2,213,504 3,210,857 2,123,638 1,117,286 1,148,575 874,348 1,005,720 1,172,511 1,216,954 353,396 445,840 407,450 453,971 704,045 708,202 4,212,357 1,339,637 1,869,824 1,685,669 1,685,705 1,755,408 3,111,194 3,572,450 3,931,142 4,498,769 5,258,318 6,096,039 8,794,233 6,506,502 7,082,764 7,644,129 8,820,579 9,776,603 14,971,379 20,958,519 20,244,268 18,320,448 16,998,110 17,183,208 $ 12,124,264 $ 14,419,820 $ 15,995,250 $ 16,106,944 $ 13,787,253 $ 15,059,570 $ 4,719,850 $ 6,561,800 $ 6,561,050 $ 6,563,750 $ 6,563,050 $ 2,331,580 1,378,238 1,670,300 1,667,900 1,666,000 1,668,800 1,666,300 - - - - 2,961,663 $ 6,098,088 $ 8,232,100 $ 8,228,950 $ 8,229,750 $ 8,231,850 $ 6,959,543 1.99 1.75 1.94 1.96 1.67 2.16 253 CITY OF TIGARD,OREGON DEMOGRAPHICS STATISTICS For the last ten fiscal years Assessed Total Unemployment Value Personal Rate Fiscal of Taxable Income (Portland) Year Ended Property School Per Capita (thousands Metropolitan June 30 Population(1) Per Capita Enrollment(2) Income(3) of dollars)(3) Area(4) 2012 48,415 $ 109,094 12,691 30,522 1,477,723 8.0% 2013 48,695 112,274 12,688 32,527 1,583,902 7.6% 2014 50,444 113,195 12,718 33,709 1,700,417 6.1% 2015 50,787 116,321 12,676 34,878 1,771,349 5.4% 2016 51,253 119,476 12,718 35,837 1,836,754 4.9% 2017 51,902 124,309 12,808 34,312 1,780,861 3.7% 2018 52,785 128,182 12,890 34,755 1,834,543 3.6% 2019 53,450 126,587 12,701 36,281 1,939,219 4.0% 2020 54,520 129,244 12,624 39,040 2,128,461 11.5% 2021 54,539 135,316 11,714 40,350 2,200,649 4.4% Sources of Information: (1)Portland State University Population Research Center (2)Tigard/Tualatin School District#23-J -City student totals not available (3)Washington State University-Northwest Income Indicators Project (4)US Department of Labor, Bureau of Labor Statistics 254 CITY OF TIGARD,OREGON PRINCIPAL EMPLOYERS For current year and nine years ago 2021 2012 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Tigard-Tualatin School District#23-J 1,397 1 4.52% 1,088 1 3.85% Macy's Department Stores 503 2 1.63% 704 2 2.49% Nordstrom 474 3 1.53% 579 3 2.05% Costco Wholesale Corporation 430 4 1.39% 323 5 1.14% City of Tigard 335 5 1.08% 250 6 0.89% Gerber Legendary Blades 232 6 0.75% Home Depot 207 7 0.67% Fred Meyer Inc 204 8 0.66% Landmark Ford Incorporated 200 9 0.65% Snyder Roofing of Oregon LLC 160 10 0.52% Oregon Public Employees Retirement 396 4 1.40% WinCo 176 9 0.62% Capital One 173 10 0.61% University of Phoenix 196 8 0.69% Veris Industries LLC 248 7 0.88% Total 4,142 13.39% 4,133 14.62% Source: City of Tigard Business License Records 255 CITY OF TIGARD,OREGON PROPERTY VALUE AND CONSTRUCTION For the last ten fiscal years Fiscal Commercial Construction 111 Residential Construction(1) Year Ended Number of Number of June 30 Permits Value Permits Value 2012 5 $ 2,589,566 104 $ 27,794,839 2013 8 20,053,155 174 41,954,242 2014 9 24,964,563 72 21,410,225 2015 10 31,518,023 280 45,546,665 2016 5 18,381,597 242 81,847,774 2017 7 12,874,739 450 156,457,972 2018 12 43,256,706 339 147,036,484 2019 12 68,338,543 205 83,341,594 2020 5 16,986,000 170 55,073,502 2021 6 14,014,260 194 91,367,879 (1)From City of Tigard Building Department. Multi-family permits are included in the number of permits issued for residential construction. 256 CITY OF TIGARD,OREGON FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION For the last ten fiscal years Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 GOVERNMENTAL ACTIVITIES Community services Police 91.10 84.50 84.50 82.50 83.50 87.50 88.50 84.50 85.00 97.00 Library 38.80 34.80 34.80 34.80 38.30 39.70 40.90 38.80 39.20 39.20 Public works Administration 8.75 9.00 9.20 9.20 9.00 9.50 9.75 9.00 9.95 8.95 Parks maintenance 9.75 9.75 9.75 10.75 11.67 12.17 10.40 10.50 12.50 15.30 Recreation - - - - - 0.33 2.35 1.00 2.35 2.45 Street maintenance 7.00 7.00 7.25 7.25 6.33 7.00 7.45 7.50 8.25 7.30 Healthy Streams - 1.00 - - - - - - - - Engineering 11.80 12.00 13.00 14.00 14.00 17.00 19.00 19.00 20.00 23.00 Community development Administration 3.00 2.00 2.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 Building inspection 8.10 7.80 8.80 9.00 9.00 13.00 13.00 13.60 14.10 15.35 Development Services(a) 5.90 4.80 3.80 3.80 3.80 - - - - - Community Planning 9.00 9.00 9.00 9.00 9.00 13.50 13.50 12.65 12.65 13.65 Development Engineering(e) - - - - - - - - - - Economic Development 1.50 1.00 2.00 2.00 2.00 2.00 3.00 2.00 3.00 3.00 Policy and Administration City management 4.20 4.00 4.00 5.00 5.50 4.90 5.90 3.90 3.90 4.90 City attorney(`) - - - - - - - 1.10 1.10 1.10 Human resources 5.00 4.80 4.80 4.50 4.80 4.50 4.34 4.14 4.14 5.00 Information technology 7.00 6.30 5.80 7.00 7.00 8.00 9.00 9.00 12.00 12.00 Risk management 2.30 2.10 2.10 2.10 2.30 1.50 1.76 1.76 2.06 2.00 Finance administration 3.00 3.00 3.00 3.00 3.00 3.00 3.50 3.00 3.00 4.00 Financial operations 4.50 4.60 4.60 4.60 4.60 4.80 5.30 4.80 4.80 5.80 Utility Billing 6.30 6.50 6.80 6.80 6.80 6.80 7.20 7.20 7.70 7.70 Design&Communication 3.25 3.05 3.05 3.05 3.05 4.25 4.75 4.75 5.35 5.60 Contracts&Purchasing 2.30 1.80 2.00 2.00 2.00 2.00 2.00 2.00 2.50 2.50 City Recorder/Records 3.35 4.15 4.15 4.15 3.35 3.85 3.85 3.85 3.25 3.25 Municipal court 3.75 3.65 3.65 3.65 3.65 3.50 3.50 3.50 6.50 9.90 Fleet maintenance(d) 2.60 1.50 0.95 1.95 1.80 2.35 2.85 2.60 2.60 2.75 Property management(d) 4.25 3.75 3.85 4.85 5.20 4.90 6.55 6.65 6.65 6.50 BUSINESS-TYPE ACTIVITIES Public works Sanitary sewer 6.25 6.25 6.50 5.50 6.00 6.50 6.25 6.25 5.50 5.50 Stormwater 6.25 5.25 5.50 6.50 7.00 7.50 9.00 8.25 5.75 5.50 Water 12.75 12.50 12.00 13.00 13.00 13.00 11.25 12.50 14.05 14.05 Green team - - - - - - - - 4.00 4.30 Total 271.75 255.85 256.85 261.95 268.65 286.05 297.85 286.80 304.85 330.55 Source: City of Tigard Finance Department (a) Development services was budgeted with Building in FY 2016-17. (b) Development Engineering was budgeted with Capital Construction&Transportation as Engineering until FY 2006-07. (`) City attorney was changed from a contract to an employee in FY 2017-18. (d) Fleet/Property Management budgeted with Public Works until FY 2015-16. 257 CITY OF TIGARD,OREGON OPERATING INDICATORS BY FUNCTION/PROGRAM For the last ten fiscal years Functions/Programs 2012 2013 2014 GOVERNMENTAL ACTIVITIES Community services Police-number of traffic citations issued* 8,308 8,939 7,177 Police-number of calls for service* 52,226 52,420 48,840 Library-number of items in collection 244,154 250,454 245,000 Library-materials checked out each year 1,522,422 1,459,334 1,385,376 Public works Acres of park land maintained 243 248 253 Crack sealing completed annually(linear feet) 160,000 160,000 160,000 Vehicles maintained to industry standard 149 148 157 Community development Number of inspections(Tigard) 10,000 12,500 12,382 Number of permits(all types)in Tigard 3,047 3,049 3,404 Number of development applications 381 357 341 Policy and administration Number of job applications 1,100 2,500 2,000 Laptops and computers to maintain 491 503 523 Insured value of city's real property**** (in millions) $ 82 $ 82 $ 82 Number of utility bills sent 236,389 238,400 241,500 Average fine amount collected $ 126 $ 140 $ 140 BUSINESS-TYPE ACTIVITIES Sewer Miles of sewer lines cleaned 41 42 42 Miles of sewer lines video inspected 23 24 21 Stormwater Miles of stormwater lines cleaned 31 32 21 Number of water quality facilities improved*** 90 125 126 Total number of catch basins cleaned*** 4,368 2,768 2,840 Water Number of accounts 18,153 18,362 18,445 *Data tracked on a calendar year. Data present is as of the previous December 31st. ***GIS data improvement **** Includes value of contents of buildings. Source: City of Tigard Finance Department 258 2015 2016 2017 2018 2019 2020 2021 6,462 5,745 5,057 5,260 5,972 5,167 16,504 47,247 43,299 41,874 42,075 42,482 38,810 35,441 248,225 253,725 229,344 238,919 220,877 222,438 235,894 1,280,376 1,243,774 1,159,446 1,227,561 1,216,642 1,310,382 1,157,942 255 301 301 305 306 311 389 160,000 160,000 107,727 262,659 92,400 521,298 760,682 160 146 162 152 156 164 161 9,009 10,814 27,551 25,793 17,540 18,736 14503 2,958 3,860 4,281 4,189 3,776 3,384 3507 251 388 818 843 876 875 984 2,100 2,200 3,726 2,605 3,393 2,503 3,302 525 530 585 593 601 702 741 $ 82 $ 82 $ 120 $ 122 $ 129 $ 130 $ 133 244,000 256,500 248,560 254,150 258,252 260,260 262,490 $ 160 $ 160 $ 149 $ 133 $ 119 $ 109 $ 79 42 42 51 57 59 63 54 21 24 23 29 30 25 46 21 21 23 20 26 21 21 126 126 133 138 143 152 181 2,840 2,917 3,939 2,620 2,737 2,864 2,904 18,524 18,767 19,311 19,689 19,849 20,064 20,196 259 CITY OF TIGARD,OREGON CAPITAL ASSETS STATISTICS BY FUNCTION For the last ten fiscal years Functions/Programs 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 GOVERNMENTAL ACTIVITIES Community services Police stations 1 1 1 1 1 1 1 1 1 1 Library buildings 1 1 1 1 1 1 1 1 1 1 Public works Number of parks 18 20 20 20 20 21 24 24 29 31 Acres of park and greenspaces 447.0 493.0 499.0 514.0 514.0 548.0 552.0 553.0 558.0 558.0 Miles of streets 150.0 150.0 150.0 150.0 150.0 157.0 175.7 175.7 189.7 324 Policy and administration City-owned building facilities 5 5 5 5 5 5 5 5 5 5 BUSINESS-TYPE ACTIVITIES Sewer Total miles of sanitary sewer lines 166.1 166.9 166.9 166.9 168.0 168.3 168.5 168.7 168.7 168.7 Stormwater Total miles of stormwater lines* 131.0 126.0 130.0 130.0 130.0 131.2 131.8 136.7 135.1 135.1 Number of water quality facilities* 92 125 126 126 126 164 210 240 240 240 Water Water mains in miles 248.0 248.0 248.0 248.0 248.0 251.3 251.3 260.0 260.0 265 Number of reservoirs 13 13 13 13 14 14 14 14 14 14 Source:City of Tigard Finance Department *GIS data improvement 260 CITY OF TIGARD,OREGON MISCELLANEOUS STATISTICAL DATA June 30,2021 Date of Incorporation 1961 Mayor/Council with a City Manager as the administrative head of the Form of government government of the City Area(Square Miles-incorporated area) 12.7 Miles of streets 324 Police protection: -Number of stations 1 -Number of sworn police officers 69 Education: - Attendance centers 17 -Number of teachers\FTE 702 -Number of students 11,714 Building Permits issued (2020-2021) 630 Recreation and culture: -Number of parks 26 developed and 7 underdeveloped,totaling 33 at 389 acres -Greenways 168.78 acres -Number of libraries 1 -Number of volumes(estimated) 213,402 Employees: -Classified service(union) 184 -Unclassified(non-union) 151 Information obtained from the various departments of the City of Tigard and Tigard/Tualatin School District#23-.I City student totals not available. 261 No content appears on this page by design. 262 Audit Comments and Disclosure Requirements 263 264 No content appears on this page by design. 265 ® MOSSADAMS Report of Independent Auditors on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Oregon Minimum Audit Standards City Council City of Tigard, Oregon We have audited the basic financial statements of the City of Tigard, Oregon (City) as of and for the year ended June 30, 2021, and have issued our report thereon dated December 6, 2021. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and the provisions of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Oregon Secretary of State. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free from material misstatement. Compliance As part of obtaining reasonable assurance about whether the City's basic financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, grants, including provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules OAR 162-010-0000 to 162-010-0330, as set forth below, noncompliance with which could have a direct and material effect on the financial statements: • The use of approved depositories to secure the deposit of public funds. • The requirements relating to debt. • The requirements relating to the preparation, adoption and execution of the annual budgets for fiscal year 2021 and 2022. • The requirements relating to insurance and fidelity bond coverage. • The appropriate laws, rules and, regulations pertaining to programs funded wholly or partially by other governmental agencies. • The requirements pertaining to the use of revenue from taxes on motor vehicle use fuel funds. • The statutory requirements pertaining to the investment of public funds. • The requirements pertaining to the awarding of public contracts and the construction of public improvements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our test disclosed no instances of noncompliance that are required to be reported under Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Oregon Secretary of State, except those noted below: • The City had funds invested in the Oregon local government investment pool that were in excess of the annual limit set under ORS 294.810. • The City had over-expenditures of$5,040 in the Tigard Triangle Debt Service Fund for the year ended June 30, 2021. 266 Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting (internal control)to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be deficiencies, significant deficiencies or material weaknesses. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and does not provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Oregon Secretary of State, in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. AY1CCQ.0A0. -))'IMsr2, Amanda McCleary-Moore, Partner for Moss Adams LLP Portland, Oregon December 6, 2021 267 (1) MOSSADAMS Report of Independent Auditors on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The City Council City of Tigard, Oregon Tigard, Oregon We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Tigard, Oregon (the City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 6, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control)to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 268 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. 1'r0 actio mb--LLP Portland, Oregon December 6, 2021 269