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Tigard, OR 97223 top‘ . : , , _ www.tigard-or.gov tr, 9 CITY OF Tigard City of Tigard, Oregon Annual Comprehensive Financial Report For the fiscal year ended, June 30, 2022 Prepared by: City of Tigard — Finance 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 18 Organization Chart 19 Principal Officials 20 Financial Section Report of Independent Auditors 23 Management's Discussion and Analysis 27 Basic Financial Statements: Government-Wide Financial Statements Statement of Net Position 45 Statement of Activities 46 Fund Financial Statements Major Governmental Funds: Balance Sheet 48 Reconciliation of the Balance Sheet to the Statement of Net Position 49 Statement of Revenues, Expenditures,and Changes in Fund Balance 50 Reconciliation of the Statement of Revenues, Expenditures,and Changes in Fund Balance to the Statement of Activities 51 Proprietary Funds: Statement of Net Position 52 Statement of Revenues, Expenses,and Changes in Fund Net Position 53 Statement of Cash Flows 54 Notes to Basic Financial Statements 57 Required Supplementary Information: Schedules of Revenues and Expenditures—Budget and Actual: General Fund 119 Schedule of the City's Proportionate Share of the Net Pension Liability(Asset) 120 Schedule of City's Contributions—Oregon Public Employees Retirement System 122 Schedule of the Changes in the City's Total OPEB Liability and Related Ratios—Implicit Rate Subsidy Plan 124 Schedule of the City's Proportionate Share of the Net OPEB Liability(Asset)—Oregon Public Employees Retirement System, Retirement Health Insurance Account 125 Schedule of the City's Contributions—Oregon Public Employees Retirement System, Retirement Health Insurance Account 126 Other Supplementary Information: Nonmajor Governmental Funds Combining Statements: Combining Balance Sheet 129 Combining Statement of Revenues, Expenditures,and Changes in Fund Balances 130 Special Revenue Funds: Combining Balance Sheet—Nonmajor Special Revenue Funds 134 Combining Statement of Revenues, Expenditures,and Changes in Fund Balance 136 5 City of Tigard, Oregon Table of Contents,continued Financial Section,Continued Other Supplementary Information, Continued: Schedules of Revenues and Expenditures—Budget and Actual: Gas Tax Fund 138 City Gas Tax Fund 139 Transient Lodging Tax Fund 140 Construction Excise Tax Fund 141 Electrical Inspection Fund 142 Building Fund 143 Criminal Forfeiture Fund 144 Urban Forestry Fund 145 Parks Utility Fund 146 Police Levy Fund 147 Library Fund 148 Debt Service Funds: Combining Balance Sheet—Nonmajor Debt Service Funds 152 Combining Statement of Revenues, Expenditures,and Changes in Fund Balance—Nonmajor Debt Service Funds 154 Schedules of Revenues and Expenditures—Budget and Actual: Bancroft Bond Debt Service Fund 156 General Obligation Debt Service Fund 157 City Center Urban Renewal Debt Service Fund 158 Tigard Triangle Debt Service Fund 159 Capital Projects Funds: Combining Balance Sheet—Nonmajor Capital Projects Funds 164 Combining Statement of Revenues, Expenditures and Changes in Fund Balance—Nonmajor Capital Projects Funds 166 Schedule of Revenues and Expenditures—Budget and Actual: Facility Fund 168 Transportation Development Tax Fund 169 Underground Utility Fund 170 Street Maintenance Fee Fund 171 Transportation SDC Fund 172 Parks Capital Fund 173 Parks Bond Fund 174 Parks SDC Fund 175 Transportation CIP Fund 176 City Center Capital Improvements Fund 177 Tigard Triangle Capital Improvements Fund 178 Proprietary Funds: Enterprise Funds: Schedules of Revenues and Expenditures—Budget and Actual: Sanitary Sewer Fund 181 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses—Sanitary Sewer Fund 182 Stormwater Fund 183 Water Quality and Quantity Fund 184 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses—Stormwater Funds 185 Water Fund 186 Water SDC Fund 187 6 City of Tigard, Oregon Table of Contents,continued Financial Section,Continued Other Supplementary Information, Continued: Water CIP Fund 188 Water Debt Service Fund 189 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses—Water Funds 190 Reconciliation of Budgetary Fund Balance to Generally Accepted Accounting Principles Basis Net Position 191 Internal Service Funds: Combining Statement of Net Position 196 Combining Statement of Revenues, Expenses,and Changes in Fund Net Position 198 Combining Statement of Cash Flows 200 Schedules of Revenues and Expenditures—Budget and Actual: Central Service Fund 202 Public Works Administration Fund 203 Public Works Engineering Fund 204 Fleet/Property Management Fund 205 Insurance Fund 206 Other Schedules: Schedule of Bond and Bond Interest Transactions 209 Schedule of Future Debt Service Requirements of: General Obligation Bonds 210 Full Faith and Credit Bonds 211 Water Revenue Bonds 212 Safe Drinking Water Revolving Loan Funds 213 Urban Renewal and Redevelopment Bonds 214 Water Fund 215 Statistical Section Net Position by Component 220 Changes in Net Position 222 Fund Balances of Governmental Funds 226 Changes in Fund Balances of Governmental Funds 228 Governmental and Business-Type Revenues 230 Governmental and Business-Type Expenses by Function 232 General Governmental Revenues by Sources 234 General Governmental Expenditures by Function 236 Market Value and Assessed Value of Taxable Property 237 Property Tax Rates—Direct and Overlapping Governments 238 Principal Property Taxpayers 240 Property Tax Levies and Collections 241 Special Assessment Collections 242 Ratio of Annual Debt Service Expenditures for Long-Term Debt to Total Governmental Expenditures 243 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita 244 Computation of Direct and Overlapping Debt 245 Computation of Legal Debt Margin 246 Ratio of Debt by Type 248 Computation of Water Revenue Bonds Debt Coverage 250 Demographics Statistics 252 7 City of Tigard, Oregon Table of Contents,continued Statistical Section,Continued Principal Employers 253 Property Value and Construction 254 Full-time Equivalent City Government Employees by Function 255 Operating Indicators by Function/Program 256 Capital Assets Statistics by Function 258 Miscellaneous Statistical Data 259 Audit Comments and Disclosure Requirements Report of Independent Auditors Required by Oregon State Regulations 264 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 266 8 Introductory Section 9 10 e Tigard CITY December 22, 2022 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, 2022, 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 Finance Department. This report presents fairly the financial position of the various funds of the city as of June 30, 2022, 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, 2022, 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, 2022,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 The City of Tigard is located in southeast Washington County, 9 miles from " downtown Portland, Oregon. The city is included in the Metro urban growth rd 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. "`f Tigard's major greenway, 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 55,000. 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 - and development to aid with transition from farmland to residential land over the next several decades. /4 o Throughout fiscal year 2022, permitting and construction as phase of development of River Terrace was in full swing. Portland Full build out is expected to take roughly 20 years. Upon completion, River Terrace is expected to be home to --------------- t around 6,500 new residents. More information about Tigard's newest neighborhood is on the city's website at: Beaverton I • https://www.tiga rd-o r.gov/you r- government/departments/community- development/planning/projects/river-terrace. S The city is governed by an elected mayor and four council - Tigard 4 members who comprise the city council.The city's charter �� Lake established the Council-Manager form of government. a� Oswego Each member of the city council is elected at-large to serve a four-year term. The mayor presides at council meetings Tualatin • and is elected at-large for a four-year term.The mayor and council provide community leadership, develop policies to 1-205 guide the city in delivering services and achieving community goals, and encourage community engagement 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, economic development, parks and recreation, library, capital improvement project delivery, administration and central services, and utility services, including system maintenance of 12 streets, sidewalks, and trails, and the water system, operated and maintained in partnership with the City of Lake Oswego. Under an agreement with Clean Water Services, Tigard owns and maintains the wastewater and storm drainage system within the city limits. 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 of Tigard's residents in the workforce commute to a job somewhere else in the region. Every day more than 41,000 residents from a neighboring city in the region commute into Tigard for work and more than 24,000 Tigard residents commute to employment somewhere else in the Portland metro region, with an additional 3,600 residents both living and working in the City of Tigard. 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, 2022, and has declined past pre-pandemic levels. Tigard's most current unemployment rate is 3.0 percent as of June 2022, which is 0.5 percent lower than the Portland Metro area and 0.5 percent lower than the State of Oregon. Unemployment trends 12.0% - • 10.0% - to ex 8.0% � 6.0% a 4.0% d 2.0% - • 0.0% - 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 -State of Oregon 8.1% 6.8% 5.5% 4.8% 3.7% 4.0% 4.0% 11.6% 5.2% 3.5% United States 7.8% 6.1% 5.3% 4.9% 4.3% 4.0% 3.7% 11.1% 5.9% 3.6% -Portland Metro 7.6% 6.1% 5.4% 4.9% 3.7% 3.6% 4.0% 11.5% 5.4% 3.5% -Washington County 6.6% 5.6% 5.0% 4.7% 3.5% 3.5% 3.4% 10.4% 4.4% 3.0% -City of Tigard 6.6% 5.4% 4.5% 4.4% 3.5% 3.5% 3.4% 10.8% 4.4% 3.0% 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 property owners of 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. Finally, increasing development density supports regional development goals as well as the City's goals around climate mitigation through creation of walkable communities. See the notes to the basic financial statements for more information. Response to COVID-19 In 2022, 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 says the City will "support the Tigard community through a coordinated COVID response". The city has been maintaining essential services including emergency calls for services, critical maintenance, and repair work throughout the pandemic. Beginning in 2022, in coordination with public health partners such as Washington County and the Oregon Health Authority, COVID-19 related restrictions were lifted, and city services have begun resuming to pre- pandemic levels. COVID-19 Relief Efforts The City of Tigard has invested a total of$7.6 million in resources to date.This includes$4.0M for business grants & loans, $2.2M for city fees & charges assistance which supports unemployed, businesses, low- income households and delayed bill increases, $490K for non-profit and faith-based organizations, and $90K for community resiliency and mental health. 14 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 COVI D-19. To further assist in the pandemic relief effort the city initiated the following: • Partnered with Community Development Financial Institutions to provide $4 million of state, federal, and local CARES Act funding for business assistance • Resident Aid Fund of Tigard (RAFT) program provided $296,000 to prevent houselessness and assist those that are houseless • Expanded existing aid program through St.Vincent De Paul 2022 Summary of Local Statistics Number of businesses 3,442 Median household income $86,757 Median home value $431,700 General fund permanent tax rate $2.5131 per$1,000 of assessed value Total assessed value (est. 2021/2022) 7,646,182,524 Long-term Financial Planning The city prepares a comprehensive long-term financial forecast annually. Through financial forecasting, the city can develop strategies to respond to emerging financial trends. Operating fund revenues and expenditures are forecast over a six-year period, and adjusted as each year's actual results are known and as budgets are prepared for the following year. In addition,the city prepares a six-year Capital Improvement Plan (CIP)that is also updated every year.The CIP is developed in conjunction with the budget process.The impact on future operating and maintenance costs are projected from the CIP and then incorporated in the long-term financial forecast. The city's adopted fiscal year 2022—2027 CIP can be found online at https://www.tigard- or.gov/your-government/departments/public-works/capital-im provement-projects. 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 2022 budget document includes the city's financial policies noted in the appendix starting on page 433. The policies can be found online at: http://publicrecords.tigard-or.gov/Public/DocView.aspx?id=1025202&dbid=0&repo=CityOffigard. 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. • Support 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. 15 • 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 evaluate progress on Council goals. These goals are comprised of high-priority projects or programs that the City Council intends to complete or initiate during the two-year timeframe,though attainment of these goals may take several years. The goals are based on community 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 2021-2023, City Council established goals for the city as follows: 1. Implement an actionable, person-centric,and regional response to homelessness. • Re-ignite efforts focused around homelessness and identify best practices. • Facilitate city-wide conversations which will include convening an interdepartmental team to learn more about concerns and resources to serve those in need. • Develop and implement a housing insecurity and prevention plan that includes recommendations such as Safe Lots, expansion of shelter hours,wraparound services and expanded partnerships. 2. Support the Tigard community through a coordinated COVID-19 response. • Allocate and communicate how American Resource Plan funds are assisting with recovery efforts. • Address the barriers that exist within the digital divide. • Reimagine and embrace forward-thinking approaches for the delivery of city services post- pandemic. 3. Develop and implement a bold community resiliency plan. • Develop and implement a community resiliency plan that is specific to the needs of the Tigard community and organization. • Implement resiliency practices that help us achieve carbon neutrality by the year 2035. • Communicate our resiliency efforts to the community to encourage individuals and businesses to adopt new practices that support our climate goals. • Develop regional partnerships to help reduce carbon throughout the Portland metro. 4. Adopt and implement the Parks and Recreation System Plan by developing a realistic funding plan and cost-effective service delivery model. • Evaluate service delivery models for expanded park and recreation services. • Recommend feasible alternative models and funding strategies. • Enhance the equity and safety of our parks and trails system. More information about the city's goals and initiatives can be found on the city's Council Goals web page: https://www.tigard-or.gov/your-government/council/council-goals. 16 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, 2021. This was the 36th consecutive year that the city has received this esteemed award. In order to be awarded a Certificate of Achievement, the city published an easily readable and efficiently organized Annual Comprehensive Financial Report. This report satisfied both GAAP and applicable legal requirements. 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 2022. This was the 34th 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 2023 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, 2021. This is the third 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 2022 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 Finance 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, n 71 . zi Clc".4,0+ Steve Rymer Cindy Trimp City Manager Finance Director 17 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Tigard Oregon For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2021 Ciut, P 2, Executive Director/CEO 18 INTERNAL STRUCTURE & ORGANIZATIONAL CHART Tigard Community Mayor&City Councilors I I I City Manager City Attorney Assistant City Assistant City Manager Manager Police Chief City Recorder Engagement& Investment& Innovation Infrastructure _ Information Community Technology Development The Tigard Fleet& Facilities Public Library — City Management Public Works Finance _ Design & Communications — Human Resources — Municipal Court & Risk Management Management — Analysts& Administration 19 City of Tigard, Oregon Principal Officials as of July 1, 2022 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 20 Financial Section 21 22 ® MOSSADAMS Report of Independent Auditors The City Council City of Tigard, Oregon Tigard, Oregon Report on the Audit of the Financial Statements Opinions We have audited 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 (the City)as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the accompanying 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 of Tigard as of June 30, 2022, 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. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS)and the standards applicable to financial audits contained in Government Auditing Standards (Government Auditing Standards), issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 23 v22-09 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control—related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that 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 (collectively, the required supplementary information)on pages 26 through 40 and 118 through 124 be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 required supplementary information 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. 24 v22-09 Accounting principles generally accepted in the United States of America require that the budgetary comparison schedule for the General Fund on page 117 be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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. The budgetary comparison schedule for the General Fund 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. Such 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 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 comparison schedule for the General Fund is fairly stated, in all material respects, in relation to the basic financial statements as whole. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Tigard's basic financial statements. The combining and individual nonmajor fund financial statements, budgetary schedules, and other financial schedules on pages 127 through 213 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such 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. The 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 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 combining and individual nonmajor fund financial statements, budgetary schedules, and other financial schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists,we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2022 on our consideration of the City of Tigard'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 of Tigard'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. 25 v22-09 Other Reporting Required by Minimum Standards for Audits of Oregon Municipal Corporations In accordance with the Minimum Standards for Audits of Oregon Municipal Corporations, we have also issued our report dated December 22, 2022, on our consideration of the City's compliance with certain provisions of laws, regulations, contracts, and grant agreements, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-010-0000 through 162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations. 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. Xstiatp.„ , 1;11 Keith Simovic, Partner For Moss Adams LLP Portland, Oregon December 22, 2022 26 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, 2022. 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 June 30, 2022 by $553,772,060 (net position). Of this amount, $38,531,961 is restricted for transportation construction, maintenance and utility undergrounding, $12,567,803 is restricted for park development and improvements, $610,182 is restricted for tourism, $17,749,135 is restricted for water system construction and improvements, $7,626,494 is restricted for debt service, $10,863,569 is restricted for building development plan review and inspection, $602,109 is restricted for library capital improvements, $10,532,537 is restricted for urban development and improvements and $1,880,418 is restricted for law enforcement. $114,781,209 is unrestricted net position may be used to meet the city's ongoing obligations to citizens and creditors and $338,026,643 is for net investment in capital assets. • The city's total net position had a net increase of$33,840,511 or 6.5 percent from the June 30, 2021 net position. Governmental activities net position increased by $24,081,076, or 7.5 percent. The business-type activities net position increased by $9,759,435 or 5.0 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$133,544,121, an increase of $25,375,113 or 23.5 percent from fiscal year 2021. Of the combined ending governmental fund balances, $40,417,489 or approximately 30.3 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 $40,490,726, up $10,726,516 over the prior year. • The city's total debt increased by $2,704,333 or 1.9 percent from fiscal year 2021. 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. 27 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, and proprietary funds. 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. 28 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. 29 City of Tigard, Oregon Management's Discussion and Analysis 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 $553,772,060 at June 30, 2022. The largest portion of the city's net position, approximately 61.0 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 $100,964,208 or approximately 18.2 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$114,781,209 or approximately 20.7 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 $33,840,511 or 6.5 percent during the current fiscal year. Total assets for governmental activities increased by approximately$26.8 million, or approximately 7.3 percent. Noteworthy changes included an increase in cash and investments of approximately $25 million or 20.2 percent. This increase is due to the receipt of Federal American Rescue Plan Act funds (ARPA), and the sale of bonds for the Tigard Town Center Development Agency (TCDA) that have not been spent. Governmental activities liabilities decreased by approximately $3.3 million or 7.2 percent. Noteworthy changes include a decrease 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. 30 City of Tigard, Oregon Management's Discussion and Analysis Business-type activities total assets increased by approximately$5.8 million or 1.8 percent over the prior year. Cash and investments increased by approximately $9.4 million or 11.5 percent over the prior year. This increase is mainly due to higher utility rates. Capital assets decreased by $3.0 million or 1.3 percent. This decrease is due to depreciation expense being greater than the reinvestment in capital assets for the fiscal year ended June 30, 2022. Total long-term debt for business-type activities decreased by approximately $3.8 million or 3.0 percent, which primarily represents payment of principal and amortization of the bond premium on the water revenue bond issues. City of Tigard —Summary of Net Position Governmental Business-Type Total Activities Activities 2022 2021 2022 2021 2022 2021 Current and other assets $155,671,009 $131,130,015 $ 99,873,811 $ 91,084,689 $255,544,820 $222,214,704 Capital assets 237,466,635 235,250,260 232,117,657 235,139,700 469,584,292 470,389,960 Total Assets 393,137,644 366,380,275 331,991,468 326,224,389 725,129,112 692,604,664 Deferred outflows 4,561,665 4,791,279 3,574,113 3,616,594 8,135,778 8,407,873 Current and other liabilities 12,055,201 14,998,155 9,168,564 8,988,362 21,223,765 23,986,517 Long-term liabilities outstanding 31,065,644 31,470,627 119,639,473 123,847,149 150,705,117 155,317,776 Total Liabilities 43,120,845 46,468,782 128,808,037 132,835,511 171,928,882 179,304,293 Deferred inflows 7,535,175 1,740,559 28,773 36,136 7,563,948 1,776,695 Net investment in capital assets 225,906,951 222,374,600 112,119,692 104,142,931 338,026,643 326,517,531 Restricted 80,791,413 69,011,237 20,172,795 18,496,564 100,964,208 87,507,801 Unrestricted 40,344,925 31,576,376 74,436,284 74,329,841 114,781,209 105,906,217 Total Net Position $347,043,289 $322,962,213 $ 206,728,771 $196,969,336 $553,772,060 $519,931,549 31 City of Tigard, Oregon Management's Discussion and Analysis City of Tigard —Summary of Changes in Net Position Governmental Business-Type Total Activities Activities 2022 2021 2022 2021 2022 2021 Revenues Program revenues: Charges for services $ 15,539,923 $ 11,955,534 $ 33,798,787 $ 32,005,048 $ 49,338,710 $ 43,960,582 Operating grants and contributions 17,770,216 13,346,482 - - 17,770,216 13,346,482 Capital grants and contributions 6,254,712 8,959,707 3,156,083 2,838,367 9,410,795 11,798,074 General revenues: Property taxes 25,117,084 23,620,200 - - 25,117,084 23,620,200 Franchise fees 7,272,781 6,978,783 - - 7,272,781 6,978,783 Unrestricted intergovernmental revenues 3,714,888 2,426,817 - 84,220 3,714,888 2,511,037 Interest (2,181,844) 558,060 (1,313,073) 307,581 (3,494,917) 865,641 Miscellaneous 644,102 702,068 175,456 276,262 819,558 978,330 Total revenues 74,131,862 68,547,651 35,817,253 35,511,478 109,949,115 104,059,129 Expenses Community services 27,313,548 30,378,435 - - 27,313,548 30,378,435 Public works 11,755,291 14,035,986 - - 11,755,291 14,035,986 Community development 6,395,322 6,719,376 - - 6,395,322 6,719,376 Policy and administration 4,715,974 4,092,081 - - 4,715,974 4,092,081 Interest on long-term debt 623,927 543,661 - - 623,927 543,661 Sanitary sewer - - 3,198,424 3,423,460 3,198,424 3,423,460 Stormwater - - 4,159,563 4,257,993 4,159,563 4,257,993 Water - - 17,946,555 20,166,820 17,946,555 20,166,820 Total expenses 50,804,062 55,769,539 25,304,542 27,848,273 76,108,604 83,617,812 Revenues over expenses 23,327,800 12,778,112 10,512,711 7,663,205 33,840,511 20,441,317 Transfers in(out) 753,276 920,232 (753,276) (920,232) - - Changes in net position 24,081,076 13,698,344 9,759,435 6,742,973 33,840,511 20,441,317 Beginning net position 322,962,213 309,263,869 196,969,336 190,226,363 519,931,549 499,490,232 Ending net position $347,043,289 $322,962,213 $206,728,771 $196,969,336 $553,772,060 $519,931,549 32 City of Tigard, Oregon Management's Discussion and Analysis Expenses and Program Revenues—Governmental activities—June 30, 2022 $25,000,000 - $20,000,000 - $15,000,000 - $10,000,000 - ■ Revenues $5,000,000 - r • Expenses $o �tiy seN`oes �b\���s ae�e\oP�er aa�\r�stitat��\���e<cc`debt God• Co�(01(•ty Qo\\`y a'�a \�tetest or Governmental Activities Governmental activities increased the city's net position by $24,081,076. This increase is more than the approximate $13.7 million increase in net position from governmental activities experienced in fiscal year 2021. Expenses were lower in all programs except Policy and Administration when comparing fiscal year 2022 to fiscal year 2021, and most revenues were higher, especially grant revenue. Noteworthy reasons for the change from the prior year are as follows: • Property taxes constitute approximately 33.9 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 $1.5 million or 6.3 percent over 2021. 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. The City has added significant new construction in the past year. 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 33 City of Tigard, Oregon Management's Discussion and Analysis refunding bonds to defease part of the park bonds.This refunding reduced total debt service payments 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 $4.4 million increase from fiscal year 2021. This increase is due to receiving ARPA Act funding for reimbursement of expenses associated with the COVID-19 pandemic. • Overall expenses for governmental activities of $50,804,062 decreased from the prior fiscal year by approximately $5.0 million. This decrease was due to a decrease in community services activities associated with the COVID-19 related social service grants. Revenues by Source—Governmental Activities -June 30, 2022 Capital grants and contributions 13% Taxes 37% Operating grants and contributions 22% Interest 1% Franchise fees Charges for services 9% 20% Misc 1% 34 City of Tigard, Oregon Management's Discussion and Analysis Business-type Activities Business-type activities increased the city's net position by $9,759,435. The primary reasons for the current year's increases are: • Charges for services represent approximately 94.4 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 $1.8 million or 5.6 percent over fiscal year 2021, with the largest increase in water revenues. • Expenses for water operations decreased approximately $2.2 million or 11.0 percent from the prior fiscal year. The decrease is primarily due to a decrease in interest expense on debt service payments for refinanced water bonds. Expenses and Program Revenues— Business-type Activities—June 30, 2022 $25,000,000 - $22,500,000 - $20,000,000 - $17,500,000 - $15,000,000 - $12,500,000 - ■ Revenues $10,000,000 - ■ Expenses $7,500,000 - $5,000,000 - $2,500,000 - $0 r/ 2,6 c,tO Sa 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. 35 City of Tigard, Oregon Management's Discussion and Analysis As of the end of the fiscal year 2022, the city's governmental funds reported combined ending fund balances of$133,544,121 an increase of$25,375,113 over the prior year. Approximately 33.5 percent or $44.7 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$81,722,388 or 61.2 percent of the total fund balance. Most of the restricted fund balance is dedicated for park acquisition and development, building inspections, urban development and improvements or for street maintenance and improvements. Other restricted resources include library improvements, Police services, 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 expenses. General Fund The General Fund is the chief operating fund of the city. At the end of the fiscal year 2022, the unassigned fund balance was $40,490,726 or approximately 97.1 percent of the total fund balance of $41,692,399. 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 132.7 percent of total General Fund expenditures. The fund balance of the General Fund increased by $10,772,675 or 34.8 percent. The increase is primarily attributable to the receipt of federal ARPA 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 $74,436,284 with individual fund unrestricted net position at: • Sanitary Sewer $9,759,880 • Stormwater $10,307,825 • Water Funds $54,368,579 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$2,724,047 from the original budgeted numbers. Budgeted General Fund contingency was decreased by $973,288 or 60.8 percent. Following are noteworthy changes from the original budget to the final adopted budget in the General Fund: • Transfers - Budget appropriation increases totaled $1,725,000 the majority of which was to fund the HVAC system upgrades to the Library. • Community services— Budget appropriation increases totaled $841,989, the majority of which was to fund a financial aid program for Tigard businesses through grants and revolving loans. 36 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 $268,227 as a result of these budget amendments. Noteworthy variances from the final adopted budget to actual revenues in the General Fund are as follows: • Grants—variance with budget of$7,584,380 due to federal ARPA funding related to COVID relief. • Franchise fees — variance with budget of $571,425 due to higher-than-expected revenue from the primarily the following franchise service providers, electric, gas, and garbage. • Intergovernmental Revenues — variance with budget of $(976,226) due to projects not spending as much of the grant awards as was planned for the year. • Net increase(decrease) in investment fair value—variance with budget of$(807,298) due to unrealized losses on bonds held for investment caused by rising interest rates. Capital Asset and Debt Administration Capital Assets Governmental Activities The city's investment in capital assets for its governmental activities as of June 30, 2022, amounts to $237,466,635 (net of accumulated depreciation). This investment in capital assets primarily includes land, rights-of-way, buildings and improvements, machinery and equipment, office equipment and infrastructure. The infrastructure includes roads, curbs and sidewalks, signage, streetlights, and rights-of-way. The total increase in the city's investment in governmental activities capital assets was$2,216,375 or approximately 0.9 percent over the prior year. The city recorded approximately$1,352,465 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, 2022, amounts to $232,116,657 (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 $3,022,043 or 1.3 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. 37 City of Tigard, Oregon Management's Discussion and Analysis Capital Assets, net of depreciation Governmental Business-Type Total Activities Activities 2022 2021 2022 2021 2022 2021 Land $ 28,918,474 $ 28,600,663 $ 12,302,979 $ 12,302,979 $ 41,221,453 $ 40,903,642 Construction in progress 9,238,240 8,386,464 5,571,478 5,264,813 14,809,718 13,651,277 Buildings and building improvements 11,860,875 12,520,890 69,140,250 71,038,440 81,001,125 83,559,330 Land improvements 9,293,954 9,051,071 7,505,761 7,505,761 16,799,715 16,556,832 Sewer system - - 17,877,069 17,352,721 17,877,069 17,352,721 Stormwater system - - 13,469,957 12,150,930 13,469,957 12,150,930 Water system - - 104,163,956 107,268,183 104,163,956 107,268,183 Machinery and equipment 426,262 276,541 1,766,025 1,804,174 2,192,287 2,080,715 Autos and trucks 1,725,451 1,607,782 320,182 451,699 2,045,633 2,059,481 Office equipment 982,976 1,377,364 - - 982,976 1,377,364 Infrastructure 175,020,403 173,429,485 - - 175,020,403 173,429,485 Total Capital Assets $ 237,466,635 $ 235,250,260 $ 232,117,657 $ 235,139,700 $ 469,584,292 $ 470,389,960 The following chart indicates the city's capital assets as of June 30, 2022. 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 8.8% 3.2% Buildings and building Infrastructure improvements 37.3% 17.2% Office equipment -\ 0.3% Land improvements Autos and trucks 3.6% 0.4% Sewer system Machinery and Storm drainage system 3.8% Water system o equipment 22 2% 2.9/ 0.5% 38 City of Tigard, Oregon Management's Discussion and Analysis Debt Outstanding As of year-end, the city had total debt outstanding of $147,750,943. Of this amount $24,185,316 is general obligation and full faith and credit bonds; $122,210,627 represents water revenue bonds; $1,355,000 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 increased by $2,704,333 or approximately 1.9 percent during the current fiscal year. In fiscal year 2022 the city issued debt of $9,312,400 for the town center development agency for urban renewal in governmental activities.The outstanding balance on this debt is 8,919,400 at year-end. 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$1,355,000 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. During fiscal year 2022, S&P Global Ratings reviewed the city's water enterprise activities and upgraded the city's rating from AA+to AAA. 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 $408 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, 2022. 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 2022 _ 2021 2022 2021 _ 2022 2021 General obligation $ 24,185,316 $ 17,657,088 $ - $ - $ 24,185,316 $ 17,657,088 Note payable - - 1,355,000 1,472,023 1,355,000 1,472,023 Revenue bonds - - 122,210,627 125,917,499 122,210,627 125,917,499 Total Outstanding Debt $ 24,185,316 $ 17,657,088 $ 123,565,627 $ 127,389,522 $ 147,750,943 $ 145,046,610 39 City of Tigard, Oregon Management's Discussion and Analysis Total Outstanding Long-Term Debt General obligation ----- --- -- 16.4% Revenue bonds 86.8% Note payable 1.0% 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 2023: • The unemployment rate for the City of Tigard was 3.0 percent at the end of the fiscal year, June 30, 2022. This is less than the State of Oregon rate of 3.5 percent and the national average of 3.6 percent for June 2022. • Property tax revenues are the single largest sources of revenue in the General Fund and it accounts for 42 percent of ongoing revenues. Tigard's low permanent property tax levy rate ($2.51/1,000 AV), which is the second lowest of any city within Washington County with a population over 50,000 is limited and therefore, General Fund growth is particularly sensitive to taxable growth. Property tax revenues are forecasted to increase by 4 percent based on prior year's modest growth in assessed values and anticipated development. • The River Terrace subdivision will provide an increase in revenue for the city, at an estimated .5 percent annual revenue growth. This subdivision will add approximately 150 — 200 homes a year for the next five years, thus creating additional demands on city services. • The city of Tigard issues licenses for businesses operating within the city limits. As of June 30, 2022, there were 3,122 businesses licensed in the city as compared to 3,207 a year ago. Business license revenues are highly sensitive to economic conditions. With the planned economic development in urban renewal,the city projects an increase in business licenses, but any increase will be gradual over time. 40 City of Tigard, Oregon Management's Discussion and Analysis • Business-type activities are funded through water, sanitary sewer and stormwater management rates and system development charges.The city has the ability to increase rates to keep pace with growing costs as well as increasing demand on the system infrastructure. Tigard's water customer charge and water usage charge increased by 2.19 percent in fiscal year 2023. Clean Water Services sets rates for sanitary sewer and storm water management (SWM). Fiscal year 2023 budget includes minor increases for sanitary sewer and stormwater management rates. All of these factors were considered in preparing the city's budget for fiscal year 2022-2023. The current forecast shows that in the short-term the city's financial condition is stable in most funds. The fiscal year 2023 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. 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 Finance Director 13125 SW Hall Blvd. Tigard, Oregon 97223 41 No content appears on this page by design. 42 Basic Financial Section 43 44 CITY OF TIGARD,OREGON STATEMENT OF NET POSITION June 30,2022 Governmental Business-Type ASSETS Activities Activities Total Cash and investments $ 62,641,798 $ 69,913,113 $ 132,554,911 Accounts receivable,net 5,881,361 5,683,560 11,564,921 Property taxes receivable 354,451 - 354,451 Assessment liens receivable 35,549 - 35,549 Prepaids 497,047 - 497,047 Inventory 1,276 363,527 364,803 Investment in joint venture - 2,206,220 2,206,220 Property held for resale - 445,042 445,042 Restricted cash and investments 86,070,830 21,262,349 107,333,179 Net other post-employment benefit asset 188,697 - 188,697 Capital assets: Land and construction in process 38,156,714 17,874,457 56,031,171 Other capital assets(net of accumulated depreciation) 199,309,921 214,243,200 413,553,121 Total assets 393,137,644 331,991,468 725,129,112 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pension 4,474,464 - 4,474,464 Deferred outflows related to OPEB 87,201 6,449 93,650 Deferred outflows related to bond refunding - 3,567,664 3,567,664 Total deferred outflows 4,561,665 3,574,113 8,135,778 LIABILITIES Accounts payable and accrued liabilities 4,498,821 3,616,536 8,115,357 Deposits 2,179,288 13,375 2,192,663 Due to other entities/agencies 720,062 - 720,062 Unearned revenue 66,500 - 66,500 Accrued interest payable 47,570 1,507,517 1,555,087 Due within one year: Notes payable - 120,533 120,533 Bonds payable 3,115,546 3,830,772 6,946,318 Accrued compensated absences 1,692,414 79,831 1,772,245 Due in more than one year: Notes payable - 1,234,467 1,234,467 Internal balances 102,320 (102,320) - Bonds payable 21,069,770 118,379,857 139,449,627 Accrued compensated absences 70,517 2,707 73,224 Total other post-employment benefit liability 1,346,986 124,762 1,471,748 Net pension liability 8,211,051 - 8,211,051 Total liabilities 43,120,845 128,808,037 171,928,882 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pension 7,146,472 - 7,146,472 Deferred inflows related to OPEB 388,703 28,773 417,476 Total deferred inflows 7,535,175 28,773 7,563,948 NET POSITION Net investment in capital assets 225,906,951 112,119,692 338,026,643 Restricted for: Transportation construction,maintenance,and utility undergrounding 38,531,961 - 38,531,961 Park development and improvements 12,567,803 - 12,567,803 Tourism 610,182 - 610,182 Water system construction and improvements - 17,749,135 17,749,135 Debt service 5,202,834 2,423,660 7,626,494 Building development plan review and inspection 10,863,569 - 10,863,569 Library capital improvements 602,109 - 602,109 Urban development and improvements 10,532,537 - 10,532,537 Law enforcement 1,880,418 - 1,880,418 Unrestricted 40,344,925 74,436,284 _ 114,781,209 Total net position $ 347,043,289 $ 206,728,771 $ 553,772,060 The accompanying notes are an integral part of the basic financial statements. 45 CITY OF TIGARD,OREGON STATEMENT OF ACTIVITIES for the year ended June 30,2022 Program Revenues Charges Operating for Grants and Functions/Programs Expenses Services Contributions Governmental activities: Community services $ 27,313,548 $ 3,102,350 $ 12,210,099 Public works 11,755,291 8,057,384 5,560,117 Community development 6,395,322 4,323,635 Policy and administration 4,715,974 56,554 Interest on long-term debt 623,927 - - Total governmental activities 50,804,062 15,539,923 17,770,216 Business-type activities: Sanitary sewer 3,198,424 4,129,639 - Stormwater 4,159,563 5,603,506 - Water 17,946,555 24,065,642 - Total business-type activities 25,304,542 33,798,787 - Total $ 76,108,604 $ 49,338,710 $ 17,770,216 The accompanying notes are an integral part of the basic financial statements. 46 Net(Expense)Revenue and Changes in Net Position- Primary Government Capital Grants and Governmental Business-type Contributions Activities Activities Total $ - $ (12,001,099) $ - $ (12,001,099) 6,254,712 8,116,922 - 8,116,922 (2,071,687) - (2,071,687) (4,659,420) - (4,659,420) - (623,927) - (623,927) 6,254,712 (11,239,211) - (11,239,211) 402,695 - 1,333,910 1,333,910 275,616 - 1,719,559 1,719,559 2,477,772 - 8,596,859 8,596,859 3,156,083 - 11,650,328 11,650,328 $ 9,410,795 (11,239,211) 11,650,328 411,117 General Revenues: Property taxes,levied for general purposes 22,512,930 - 22,512,930 Property taxes,levied for debt service 2,604,154 - 2,604,154 Franchise fees 7,272,781 - 7,272,781 Unrestricted intergovernmental revenues 3,714,888 - 3,714,888 Investment losses (2,181,844) (1,313,073) (3,494,917) Miscellaneous 644,102 175,456 819,558 Total general revenues(expenses) 34,567,011 (1,137,617) 33,429,394 Transfers between Governmental and Business-type activities 753,276 (753,276) - Change in net position 24,081,076 9,759,435 33,840,511 Net position,beginning 322,962,213 196,969,336 519,931,549 Net position,ending $ 347,043,289 $ 206,728,771 $ 553,772,060 47 CITY OF TIGARD,OREGON GOVERNMENTAL FUNDS-BALANCE SHEET June 30,2022 Other Total General Governmental Governmental Fund Funds Funds ASSETS Cash and cash equivalents $ 40,487,497 $ 8,100,226 $ 48,587,723 Accounts receivable 3,696,153 2,143,015 5,839,168 Property taxes receivable 268,758 85,693 354,451 Assessment liens receivable - 35,549 35,549 Interest receivable 28,853 12,408 41,261 Advances to other funds 883,981 - 883,981 Prepaids 317,692 - 317,692 Restricted cash and cash equivalents - 86,070,830 86,070,830 Total assets $ 45,682,934 $ 96,447,721 $ 142,130,655 LIABILITIES Accounts payable and accrued liabilities $ 1,776,746 $ 1,834,218 $ 3,610,964 Deposits 482,096 1,523,450 2,005,546 Due to other entities/agencies 658,022 62,040 720,062 Advances from other funds - 986,301 986,301 Unearned revenue - 50,000 50,000 Total liabilities 2,916,864 4,456,009 7,372,873 DEFERRED INFLOWS OF RESOURCES Resources not yet available: Property taxes 217,468 68,584 286,052 Municipal court receivable 497,480 - 497,480 Transportation refund credits - 35,857 35,857 Intergovernmental receivables 241,251 - 241,251 Special assessment liens - 35,549 35,549 Franchise fees 117,472 - 117,472 Total deferred inflows of resources 1,073,671 139,990 1,213,661 FUND BALANCES Nonspendable: Advances to other funds 883,981 - 883,981 Note receivable - 500,000 500,000 Prepaids 317,692 - 317,692 Restricted for: Street maintenance and improvements - 37,805,756 37,805,756 Tourism - 610,182 610,182 Affordable housing - 1,011,297 1,011,297 Debt service - 5,122,512 5,122,512 Park development and improvements - 12,567,803 12,567,803 Underground utilities - 726,205 726,205 Building inspection - 10,863,569 10,863,569 Police services - 1,880,418 1,880,418 Library improvements - 602,109 602,109 Urban development and improvements - 10,532,537 10,532,537 Committed for: Street maintenance and improvements - 4,287,999 4,287,999 Urban forestry - 1,094,465 1,094,465 Assigned to: City facilities - 883,024 883,024 Park and recreation - 3,437,083 3,437,083 Unassigned 40,490,726 (73,237) 40,417,489 Total fund balances 41,692,399 91,851,722 133,544,121 Total liabilities,deferred inflows of resources and fund balances $ 45,682,934 $ 96,447,721 $ 142,130,655 The accompanying notes are an integral part of the basic financial statements. 48 CITY OF TIGARD,OREGON RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION GOVERNMENTAL FUNDS June 30,2022 Fund Balances-Governmental Funds $ 133,544,121 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 $ 362,383,855 Less accumulated depreciation (124,917,220) 237,466,635 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 (8,211,051) Deferred outflows of resources related to pensions and OPEB 4,532,062 Deferred inflows of resources related to pensions and OPEB (7,403,103) (11,082,092) 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 286,052 Franchise fees earned but not available 117,472 Municipal court receivable 497,480 Grant receivable 241,251 Transportation refund credits 35,857 Assessment liens 35,549 1,213,661 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. 11,859,578 Accrued compensated absences are not due and payable in the current period and therefore are not (1,140,116) 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 (24,185,316) Accrued interest payable, not due and payable in the current period (47,570) Net other post-employment benefit(OPEB)asset 188,697 Total other post-employment benefit(OPEB) liability (774,309) Net Position of Governmental Activities $ 347,043,289 The accompanying notes are an integral part of the basic financial statements. 49 CITY OF TIGARD,OREGON GOVERNMENTAL FUNDS- STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE for the year ended June 30,2022 Other Total General Governmental Governmental Fund Funds Funds REVENUES Taxes $ 18,404,753 $ 14,009,762 $ 32,414,515 Franchise fees 7,272,781 - 7,272,781 Special assessments - 71,140 71,140 Licenses and permits 1,393,954 3,044,495 4,438,449 Intergovernmental revenues 14,578,046 754,722 15,332,768 Charges for services 312,240 6,216,908 6,529,148 System development charges - 4,410,347 4,410,347 Fines and forfeitures 1,872,103 85,072 1,957,175 Interest earnings 272,163 514,761 786,924 Net increase(decrease) in investment fair value (807,298) (2,082,594) (2,889,892) Miscellaneous revenues 454,721 76,642 531,363 Total revenues 43,753,463 27,101,255 70,854,718 EXPENDITURES Current operating: Community services 25,605,468 1,791,106 27,396,574 Public works - 7,358,243 7,358,243 Community development 3,698,389 2,352,425 6,050,814 Policy and administration 1,212,217 - 1,212,217 Debt service: Principal - 2,777,000 2,777,000 Interest - 630,131 630,131 Capital outlay - 8,400,434 8,400,434 Total expenditures 30,516,074 23,309,339 53,825,413 Excess/(deficiency)of revenues over expenditures 13,237,389 3,791,916 17,029,305 OTHER FINANCING SOURCES(USES) Transfer in 309,000 7,234,089 7,543,089 Transfer out (2,773,714) (5,735,967) (8,509,681) Debt proceeds - 9,312,400 9,312,400 Total other financing sources (uses) (2,464,714) 10,810,522 8,345,808 Net change in fund balances 10,772,675 14,602,438 25,375,113 Fund balances-beginning of the year 30,919,724 77,249,284 108,169,008 Fund balances-end of year $ 41,692,399 $ 91,851,722 $ 133,544,121 The accompanying notes are an integral part of the basic financial statements. 50 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 30,2022 Net change in fund balances-Governmental Funds $ 25,375,113 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 7,087,170 Current year depreciation expense (5,738,382) Contributed capital 867,587 2,216,375 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 (269,654) Change in municipal court receivable 241,251 Change in intergovernmental receivable (19,813) Change in assessment liens (71,140) (119,356) 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. Bond proceeds (9,312,400) Principal payments 2,777,000 (6,535,400) 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 6,204 Change in compensated absences (108,818) Change in Pension obligations 589,219 OPEB expense (24,824) 461,781 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 2,682,563 Change in Net Position of Governmental Activities $ 24,081,076 The accompanying notes are an integral part of the basic financial statements. 51 CITY OF TIGARD,OREGON PROPRIETARY FUNDS STATEMENT OF NET POSITION June 30,2022 Business-type Activities- Governmental Enterprise Funds Activities- Sanitary Internal Sewer Stormwater Water Totals Service Funds ASSETS Current assets: Cash and cash equivalents $ 9,471,322 $ 9,624,150 $ 50,817,641 $ 69,913,113 $ 14,054,075 Accounts receivable 1,969,669 783,201 2,930,690 5,683,560 932 Prepaids - - - - 179,355 Property held for resale 185,021 260,021 - 445,042 - Inventory 26,743 26,743 310,041 363,527 1,276 Total current assets 11,652,755 10,694,115 54,058,372 76,405,242 14,235,638 Noncurrent assets: Restricted cash and cash equivalents - - 21,262,349 21,262,349 Advances to other funds 102,320 - - 102,320 - Investment in joint venture - - 2,206,220 2,206,220 - Capital assets: Land and construction in process 422,405 1,087,202 16,364,850 17,874,457 - Other capital assets(net of accumulated depreciation) 18,194,231 14,103,354 181,945,615 214,243,200 - Totalnoncurrentassets 18,718,956 15,190,556 221,779,034 255,688,546 - Total assets 30,371,711 25,884,671 275,837,406 332,093,788 14,235,638 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to OPEB 1,522 2,173 2,754 6,449 29,603 Deferred outflows related to bond refunding - - 3,567,664 3,567,664 - Total deferred outflows 1,522 2,173 3,570,418 3,574,113 29,603 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 1,933,981 327,959 1,354,596 3,616,536 887,862 Unearned revenue - - - - 16,500 Deposits - - 13,375 13,375 173,742 Accrued interest payable - - 1,507,517 1,507,517 - Accrued compensated absences 25,636 8,472 45,723 79,831 599,143 Current portion of note payable - - 120,533 120,533 - Current portion of bonds payable - - 3,830,772 3,830,772 - Total current liabilities 1,959,617 336,431 6,872,516 9,168,564 1,677,247 Noncurrent liabilities: Accrued compensated absences 869 287 1,551 2,707 23,667 Note payable-long-term portion - - 1,234,467 1,234,467 - Bonds payable-long-term portion - - 118,379,857 118,379,857 - Total OPEB liability 29,441 42,048 53,273 124,762 572,677 Total noncurrent liabilities 30,310 42,335 119,669,148 119,741,793 596,344 Total liabilities 1,989,927 378,766 126,541,664 128,910,357 2,273,591 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to OPEB 6,790 9,697 12,286 28,773 132,072 NET POSITION Net investment in capital assets 18,616,636 15,190,556 78,312,500 112,119,692 - Restricted for capital projects - - 17,749,135 17,749,135 - Restricted for debt service - - 2,423,660 2,423,660 - Unrestricted 9,759,880 10,307,825 54,368,579 74,436,284 11,859,578 Total net position $ 28,376,516 $ 25,498,381 $ 152,853,874 $ 206,728,771 $ 11,859,578 The accompanying notes are an integral part of the basic financial statements. 52 CITY OF TIGARD,OREGON PROPRIETARY FUNDS STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET POSITION for the year ended June 30,2022 Business-type Activities- Governmental Enterprise Funds Activities- Sanitary Internal Sewer Stormwater Water Totals Service Funds OPERATING REVENUES Charges for services $ 4,129,639 $ 5,603,506 $ 24,065,642 $ 33,798,787 $ 22,816,332 Miscellaneous revenues 74,110 25,188 76,158 175,456 176,356 Total operating revenues 4,203,749 5,628,694 24,141,800 33,974,243 22,992,688 OPERATING EXPENSES Salaries and wages 481,293 829,864 1,112,077 2,423,234 11,632,459 Contracted services 30,958 459,210 2,105,846 2,596,014 3,490,670 General,administrative and other 1,836,031 2,139,710 5,756,765 9,732,506 6,866,325 Depreciation 850,142 730,779 5,294,023 6,874,944 - Total operating expenses 3,198,424 4,159,563 14,268,711 21,626,698 21,989,454 Operating income(loss) 1,005,325 1,469,131 9,873,089 12,347,545 1,003,234 NON-OPERATING REVENUES(EXPENSES) Interest earnings 77,737 60,780 437,076 575,593 75,399 Net increase(decrease)in investment fair value (205,602) (191,396) (1,491,668) (1,888,666) (154,275) Interest expense - - (3,710,190) (3,710,190) - Intergovernmental revenue - - - - 38,339 Gain on investment in joint venture - - 32,346 32,346 - Total non-operating revenue(expense) (127,865) (130,616) (4,732,436) (4,990,917) (40,537) Net income(loss)before contributions and transfers 877,460 1,338,515 5,140,653 7,356,628 962,697 System development revenue 103,697 43,510 2,370,097 2,517,304 - Capital contributions 298,998 232,106 107,675 638,779 - Transfers in 1,081 153,147 - 154,228 1,719,866 Transfers out (219,687) (143,258) (544,559) (907,504) - Change in net position 1,061,549 1,624,020 7,073,866 9,759,435 2,682,563 Net position--beginning of year 27,314,967 23,874,361 145,780,008 196,969,336 9,177,015 Net position--end of year $ 28,376,516 $ 25,498,381 $ 152,853,874 $ 206,728,771 $ 11,859,578 The accompanying notes are an integral part of the basic financial statements. 53 CITY OF TIGARD,OREGON PROPRIETARY FUNDS STATEMENT OF CASH FLOWS for the year ended June 30,2022 Business-type Activities- Governmental Enterprise Funds Activities- Sanitary Internal Sewer Stormwater Water Totals Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 16,174,059 $ 6,548,741 $ 24,878,804 $ 47,601,604 $ 22,804,364 Payments to suppliers (13,677,845) (4,227,324) (7,328,976) (25,234,145) (10,127,734) Payments to employees (483,997) (854,337) (1,097,078) (2,435,412) (11,629,832) Other receipts 74,110 25,188 76,158 175,456 172,877 Net cash provided(used)by operating activities 2,086,327 1,492,268 16,528,908 20,107,503 1,219,675 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers to other funds (219,687) (143,258) (544,559) (907,504) (6,000) Transfers from other funds 1,081 - - 1,081 1,725,866 Net cash provided(used)by noncapital financing activities (218,606) (143,258) (544,559) (906,423) 1,758,205 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES System development revenue 103,697 43,510 2,370,097 2,517,304 - Principal payments - - (3,532,023) (3,532,023) - Interest payments - - (4,055,157) (4,055,157) - Transfers in for capital assets 153,147 - 153,147 - Acquisition of capital assets (2,366) (612,193) (2,599,563) (3,214,122) - Net cash provided(used)by capital and related financing activities 101,331 (415,536) (7,816,646) (8,130,851) - CASH FLOWS FROM INVESTING ACTIVITIES Investment in joint venture - - (381,116) (381,116) - Investment loss (127,865) (130,616) (1,054,592) (1,313,073) (78,876) Net cash provided(used)by investing activities (127,865) (130,616) (1,435,708) (1,694,189) (78,876) Net increase(decrease)in cash and investments 1,841,187 802,858 6,731,995 9,376,040 2,899,004 Cash and investments--beginning of the year 7,630,136 8,821,292 65,347,995 81,799,423 11,155,071 Cash and investments--end of the year $ 9,471,323 $ 9,624,150 $ 72,079,990 $ 91,175,463 $ 14,054,075 RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income(loss) $ 1,005,325 $ 1,469,131 $ 9,873,089 $ 12,347,545 $ 1,003,234 Adjustments to reconcile operating income(loss) to net cash provided by operating activities: Cash flows reported in other categories: Depreciation expense 850,142 730,779 5,294,023 6,874,944 - Change in assets and liabilities: Receivables 277,814 (19,068) 811,862 1,070,608 40,703 Prepaid expenses - - - - 142,081 Inventory (23,965) (23,965) (22,299) (70,229) 3,124 Accounts payable and accrued liabilities (20,286) (640,136) 555,933 (104,489) 62,843 Customer deposits - - 1,300 1,300 (31,387) Accrued compensated absences (5,874) (28,998) 9,265 (25,607) (58,998) Unearned revenue - - - (3,552) OPEB liability 3,170 4,525 5,735 13,430 61,627 Net cash provided(used)by operating activities $ 2,086,326 $ 1,492,268 $ 16,528,908 $ 20,107,502 $ 1,219,675 Non-cash capital and related financing activities: Developer contributed sewer,stormwater and water lines $ 298,998 $ 232,106 $ 107,675 $ 638,779 $ - The accompanying notes are an integral part of the basic financial statements. 54 Notes to Basic Financial Statements 55 56 City of Tigard, Oregon Notes to Basic Financial Statements 1. Summary of Significant Accounting Policies Financial Reporting Entity The City of Tigard, Oregon (the City) 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 one 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. 57 City of Tigard, Oregon Notes to Basic 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. 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 and proprietary funds. Major individual governmental funds and major individual proprietary funds are reported as separate 58 City of Tigard, Oregon Notes to Basic Financial Statements columns in the fund financial statements. Nonmajor funds are combined into a single column in the basic financial statements and are detailed in the supplementary information. 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 or proprietary. 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 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. 59 City of Tigard, Oregon Notes to Basic Financial Statements 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 deferred inflow of resources created on the governmental fund balance sheet for unavailable revenue is eliminated. 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 60 City of Tigard, Oregon Notes to Basic Financial Statements 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. New Accounting Pronouncements and Accounting Standards During the fiscal year ended June 30, 2022, the city implemented the following GASB pronouncements: 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 was implemented by the city for the fiscal year ending June 30, 2022. 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. 61 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 was implemented by the city for the fiscal year ending June 30, 2022. 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. 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 62 City of Tigard, Oregon Notes to Basic Financial Statements • 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 • 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 was implemented by the city for the fiscal year ending June 30, 2022. 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. 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 those plans. GASB Statement No. 97 will be effective for the city for the fiscal year ending June 30, 2022. GASB Statement No. 97 was implemented by the city for the fiscal year ending June 30, 2022. Management has determined that the statement clarifies that the city's defined contribution plan no longer meets the requirements of reporting as a fiduciary activity and has been removed from the fiduciary fund financial statements. The following pronouncements have been issued by the Governmental Accounting Standards Board (GASB) but not yet implemented by the city: 63 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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. 99, Omnibus 2022. This statement was issued April 2022 and enhanced comparability in accounting and financial reporting to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements and accounting and financial reporting for financial guarantees. This Statement addresses a variety of topics including issues related to leases implementation, derivative instruments, nonmonetary transactions, public-private and public-public partnerships and availability payment arrangements,subscription-based information technology arrangements, LIBOR,SNAP and other terminology updates. Specifically, the paragraphs for future adoption address the following topics: • Classification and reporting of derivative instruments within the scope of Statement No. 53 • Clarification of provisions in Statement No. 87, Leases, as amended, related to the determination of the lease term,classification of a lease as a short-term lease, recognition and measurement of a lease liability and a lease asset, and identification of lease incentives • Clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, related to (a) the determination of 64 City of Tigard, Oregon Notes to Basic Financial Statements the public-private and public-public partnership (PPP) term and (b) recognition and measurement of installment payments and the transfer of the underlying PPP asset • Clarification of provisions in Statement No. 96, Subscription-Based Information Technology Arrangements, related to the subscription-based information technology arrangement (SBITA)term, classification of a SBITA as a shortterm SBITA, and recognition and measurement of a subscription liability GASB Statement No. 99 paragraphs 11-25 will be effective for the City for the fiscal year ending June 15, 2022 and paragraphs 4-10 will be effective for the City for the fiscal year ending June 30, 2024. GASB Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62. This statement was issued June 2022 to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. This Statement defines accounting changes as changes in accounting principles,changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting— understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements. GASB Statement No. 100 will be effective for the City for the fiscal year ending June 30, 2024. GASB Statement No. 101, Compensated Absences This statement was issued June 2022 to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. Other requirements include that a liability for certain types of compensated absences not be recognized until the leave commences, and that a liability for specific types of compensated absences not be recognized until the leave is used. GASB Statement No. 101 will be effective for the City for the fiscal year ending June 30, 2024. 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. 65 City of Tigard, Oregon Notes to Basic 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." 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). 66 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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 67 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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 assets 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 assets that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. 68 City of Tigard, Oregon Notes to Basic Financial Statements 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 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 69 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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. 70 City of Tigard, Oregon Notes to Basic Financial Statements 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 and the proprietary funds' Statement of 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 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 71 City of Tigard, Oregon Notes to Basic Financial Statements 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. 2. Stewardship, Compliance and Accountability Budgetary information A budget is prepared for each 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, 72 City of Tigard, Oregon Notes to Basic Financial Statements 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. Corporate indebtedness violating City investment policy and Oregon state law The City's investment policy and Oregon state law requires investment purchases of corporate indebtedness must be rated on the settlement date P-1 or Aa3 or better by Moody's Investors Service or A-1 or AA- or better by S&P Global Ratings and Fitch Ratings or an equivalent rating by any nationally recognized statistical rating organization. For the year-ended June 30, 2022, a corporate indebtedness that did not meet this requirement on the settlement date was purchased by the city and held at year-end. As of June 30, 2022, the fair value of the corporate indebtedness was $6,524,070. For additional details on investments see Note 3. 3. Cash and Investments The city maintains a cash and investment pool that is available for use by all funds. 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. 73 City of Tigard, Oregon Notes to Basic Financial Statements Cash and investments, restricted and unrestricted, at June 30, 2022: Primary Type Government Deposits with financial institutions $ 17,242,284 Money markets 5,596,397 Cash deposits 22,838,681 Cash with fiscal agent 55,808 Petty cash/cash on hand 9,296 Total cash 22,903,785 State Investment Pool (LGIP) 174,101,186 U.S. Agencies 21,870,909 Corporate bonds 21,012,210 Total investments 216,984,305 Total cash and investments $ 239,888,090 Governmental Business Type Total Activities Activities Cash and investments $ 62,641,798 $ 69,913,113 $ 132,554,911 Restricted cash and investments 86,070,830 21,262,349 107,333,179 Total cash and investments $ 148,712,628 $ 91,175,462 $ 239,888,090 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, 2022 was$22,838,681 and the total bank balance is $23,386,926. Of these deposits, $500,000 was covered by federal depository insurance and $22,886,926 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. 74 City of Tigard, Oregon Notes to Basic Financial Statements 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 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, 2022, the city's fair value in the LGIP was $174,101,186. Financial statement for the Oregon Short-Term Fund can be found on line at: http://www.oregon.gov/treasury/Divisionsf 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: 75 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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 of June 30, 2022: Fair Value Fair Value Measurement Amortized Cost Not Local Government Investment Pool (LGIP) $ 174,101,186 Measured at Fair Value U.S. Agencies 21,870,909 Level 2 Corporate Bonds 21,012,210 Level 2 Total Investments $ 216,984,305 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. 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. 76 City of Tigard, Oregon Notes to Basic Financial Statements 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- 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, 2022, the city had the following investments and maturities at fair value: Weighted Average Maturity Risk (in Investment Type Fair Value Concentration months) Local Government Investment Pool (LGIP) * $ 174,101,186 80.2% < 1 U.S. Agencies 21,870,909 10.1% 2.53 Corporate Bonds 21,012,210 9.7% 1.99 Total Investments $ 216,984,305 100.0% Portfolio weighted average maturity 4.55 * 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. 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 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. 77 City of Tigard, Oregon Notes to Basic Financial Statements At June 30, 2022 the city's investments were rated as follows: % of Fair Investment Type Moody's S & P Fitch Fair Value Value State Investment Pool (LGIP) N/R N/R N/R $ 174,101,186 80.2% Corporate Bonds Al A AA- 3,955,320 1.8% Corporate Bonds A2 A- AA- 4,929,600 2.3% Corporate Bonds A2 A- AA- 5,603,220 2.6% Corporate Bonds A2 BBB+ A 6,524,070 3.0% US Instrumentality: FHLB AAA AA+ N/R 3,187,144 1.5% US Instrumentality: FHLB AAA AA+ N/R 7,597,760 3.5% US Instrumentality: FHLB AAA AA+ N/R 6,722,310 3.1% US Instrumentality: FHLMC AAA AA+ N/R 4,363,695 2.0% Total Investments $ 216,984,305 100.0% 78 City of Tigard, Oregon Notes to Basic Financial Statements 4. Accounts Receivable Accounts receivable as of June 30, 2022 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 $ 7,139,428 $ 268,758 $ - $ 7,408,186 $ (3,414,422) $ 3,993,764 Nonmajor governmental 2,155,423 85,693 35,549 2,276,665 - 2,276,665 Internal service 932 932 932 $ 9,295,783 $ 354,451 $ 35,549 $ 9,685,783 $ (3,414,422) $ 6,271,361 Business-Type Activities Sanitary sewer $ 1,969,669 $ - $ - $ 1,969,669 $ - $ 1,969,669 Stormwater 783,201 - - 783,201 - 783,201 Water 2,930,690 - - 2,930,690 - 2,930,690 $ 5,683,560 $ - $ - $ 5,683,560 $ - $ 5,683,560 Total receivables $ 11,954,921 Shown on the Statement of Net Positions as: Accounts receivable, net $ 11,564,921 Property taxes receivable 354,451 Assessment liens receivable 35,549 $ 11,954,921 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, 2022, $4,552,560 was outstanding for municipal court receivables with a related allowance for doubtful accounts of$3,414,420. 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, 2022, the portion of the assessments receivable balance that represents delinquent accounts is insignificant. 79 City of Tigard, Oregon Notes to Basic Financial Statements 5. Capital Assets Capital asset activity for governmental activities for the year ended June 30, 2022 was as follows: Balances Balances Governmental activities June 30,2021 Additions Deletions Transfers June 30,2022 Non-depreciable: Land $ 28,600,663 $ 317,811 $ - $ - $ 28,918,474 Construction in progress 8,386,464 6,244,818 - (5,393,042) 9,238,240 Total non-depreciable 36,987,127 6,562,629 - (5,393,042) 38,156,714 Depreciable: Building and improvements 24,143,172 - - - 24,143,172 Land improvements 18,130,141 - - 733,495 18,863,636 Machinery and equipment 2,963,400 276,702 - - 3,240,102 Autos and trucks 3,921,388 579,687 (220,437) - 4,280,638 Office equipment 4,571,110 - - - 4,571,110 Infrastructure 263,919,160 549,776 - 4,659,547 269,128,483 Total depreciable 317,648,371 1,406,165 (220,437) 5,393,042 324,227,141 Accumulated depreciation: Building and improvements (11,622,282) (660,015) - - (12,282,297) Land improvements (9,079,070) (490,612) - - (9,569,682) Machinery and equipment (2,686,859) (126,981) - - (2,813,840) Autos and trucks (2,313,606) (447,981) 206,400 - (2,555,187) Office equipment (3,193,746) (394,388) - - (3,588,134) Infrastructure (90,489,675) (3,618,405) - - (94,108,080) Total accumulated depreciation (119,385,238) (5,738,382) 206,400 - (124,917,220) Net depreciable assets 198,263,133 (4,332,217) (14,037) 5,393,042 199,309,921 Governmental activities capital assets, net $235,250,260 $2,230,412 $ (14,037) $ - $237,466,635 Depreciation expense for governmental activities is charged to functions as follows: Community services $ 313,539 Public works 5,218,275 Community development 7,306 Policy and administration 199,262 Total depreciation for governmental activities $ 5,738,382 80 City of Tigard, Oregon Notes to Basic Financial Statements Capital assets activity for business-type activities for the year ended June 30, 2022, was as follows: Balances Balances Business-type activities June 30,2021 Additions Deletions Transfers June 30,2022 Non-depreciable: Land $ 12,302,979 $ - $ - $ - $ 12,302,979 Construction in progress 5,264,813 3,078,179 - (2,771,514) 5,571,478 Total non-depreciable 17,567,792 3,078,179 - (2,771,514) 17,874,457 Depreciable: Building and improvements 77,323,567 - - - 77,323,567 Land Improvements 7,505,761 - - - 7,505,761 Sewer system 32,065,427 298,997 - 947,023 33,311,447 Stormwater system 23,085,263 232,106 - 1,671,347 24,988,716 Water system 148,709,867 107,675 - - 148,817,542 Equipment 4,171,282 34,485 - 153,144 4,358,911 Autos and trucks 2,284,883 101,459 (22,156) - 2,364,186 Total depreciable 295,146,050 774,722 (22,156) 2,771,514 298,670,130 Accumulated depreciation: Building and improvements (6,285,127) (1,898,190) - - (8,183,317) Sewer system (14,712,706) (721,672) - - (15,434,378) Stormwater system (10,934,333) (584,426) - - (11,518,759) Water system (41,441,684) (3,211,902) - - (44,653,586) Equipment (2,367,108) (225,778) - - (2,592,886) Autos and trucks (1,833,184) (232,976) 22,156 - (2,044,004) Total accumulated depreciation (77,574,142) (6,874,944) 22,156 - (84,426,930) Net depreciable assets 217,571,908 (6,100,222) - 2,771,514 214,243,200 Business-type activities capital assets, net $235,139,700 $ (3,022,043) $ - $ - $232,117,657 Depreciation expense for business-type activities is charged to activities as follows: Sanitary sewer $ 850,142 Stormwater 730,779 Water 5,294,023 Total depreciation for business-type activities $ 6,874,944 81 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 2021 Full Faith and Credit Bonds In fiscal year 2021-2022 the city issued $3,604,900 in Series 2021A Tax-Exempt bonds, and $1,019,700 Series 20216 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$4,624,600. 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, 2022 the outstanding balance on the bonds was $3,458,000 for the Series 2021A and $979,400 for the Series 20216. Future maturities on the bond principal and interest on the bonds are as follows: Total Debt Series 2021A Series 20216 Year Service Requirement Issued: September 29, 2021 Issued:September 29, 2021 Ending Total Total 1.69% 2.14% June 30, Principal Interest Principal Interest Principal Interest 2023 $ 281,700 $ 79,399 $ 221,000 $ 58,440 $ 60,700 $ 20,959 2024 286,800 74,365 224,800 54,705 62,000 19,660 2025 291,900 69,239 228,500 50,906 63,400 18,333 2026 297,100 64,022 232,400 47,045 64,700 16,977 2027 302,400 58,709 236,300 43,117 66,100 15,592 2028-2032 1,595,300 210,438 1,242,900 154,312 352,400 56,126 2033-2036 1,382,200 _ 62,441 1,072,100 45,676 310,100 16,765 $ 4,437,400 $ 618,614 $ 3,458,000 $ 454,202 $ 979,400 $ 164,412 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 20196 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, 82 City of Tigard, Oregon Notes to Basic Financial Statements with the exception of acceleration. At June 30, 2022 the outstanding balance on the bonds was $1,734,000 for the Series 2019A and $3,706,000 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 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 2028-2032 1,544,000 487,703 496,000 129,799 1,048,000 357,904 2033-2034 2,551,000 133,146 798,000 35,165 1,753,000 97,981 $ 5,440,000 $1,306,708 $ 1,734,000 $ 349,281 $ 3,706,000 $ 957,427 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 $5,201,000. Future maturities of bond principal and interest on the GO Refunding Bonds are as follows: Year Ending June 30, Principal Interest Total 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 $ 5,201,000 $ 192,303 $ 5,393,303 83 City of Tigard, Oregon Notes to Basic Financial Statements Other Debt 2021 TCDA Bond: In the fiscal year 2021-2022 the city issued$4,687,800 of urban renewal bonds backed by tax increment revenue generated from within the CCDA.The bond was issued to fund urban renewal projects in the Tigard Triangle Urban Renewal Plan. The 2021 TCDA Bond will be repaid over 15 years with an interest rate of 2.85 percent. At June 30, 2022 the outstanding balance on the 2021 bond was $4,482,000 Future maturities of bond principal and interest on the TCDA bond are as follows: Year Ending June 30, Principal Interest Total 2023 $ 265,000 $ 127,737 $ 392,737 2024 272,500 120,185 392,685 2025 280,300 112,418 392,718 2026 288,300 104,430 392,730 2027 296,500 96,213 392,713 2028-2032 1,614,300 349,379 1,963,679 2033-2036 1,465,100 105,852 1,570,952 $ 4,482,000 $1,016,214 $ 5,498,213 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, 2022 the outstanding balance on the 2011B bonds was $885,000. Future maturities of bond principal and interest on the Library Bonds are as follows: Year Ending June 30, Principal Interest Total 2023 $ 885,000 $ 17,700 $ 902,700 $ 885,000 $ 17,700 $ 902,700 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 84 City of Tigard, Oregon Notes to Basic Financial Statements defeased. 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, 2022, the outstanding balance on the bonds was$3,725,000 and the balance of the unamortized premium was $14,916. Future maturities of bond principal and interest on the Parks Bonds are as follows: Year Ending June 30, Principal Interest Total 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 $ 3,725,000 $ 397,225 $ 4,122,225 Premium 14,916 Total $ 3,739,916 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. 85 City of Tigard, Oregon Notes to Basic Financial Statements At June 30, 2022, the balance on the note payable was $1,355,000. Future debt service requirements are as follows: Year Ending June 30, Principal Interest Total 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 135,661 25,522 161,183 2028-2032 715,074 64,065 779,139 Total $ 1,355,001 $ 230,054 $ 1,585,055 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, 2022 the outstanding balance on the bonds was $85,625,000 and the balance of the unamortized premium was $1,092,764. 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 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 3,640,000 1,736,362 5,376,362 2028-2032 19,340,000 7,548,313 26,888,313 2033-2037 21,490,000 5,393,375 26,883,375 2038-2042 24,385,000 2,499,506 26,884,506 2043 5,300,000 76,850 5,376,850 85,625,000 $ 24,882,956 $ 110,507,956 Premium 1,092,764 Total $ 86,717,764 86 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, 2022,the balance of the 2012 water revenue bonds was $2,365,000 and the balance of the unamortized premium was $120,990. 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, 2022, the balance of the 2015 water revenue bonds was $29,765,000 and the balance of the unamortized premium was $3,241,873. 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 2022 were $14,709,857 as compared to the total debt service of$7,043,263. 87 City of Tigard, Oregon Notes to Basic Financial Statements The computation of water revenue bonds debt coverage is as follows: Gross revenues $ 24,065,642 System Development Charges (SDC) related: SDC Fund interest earnings (loss) (247,814) Reimbursement fee receipts 1,034,638 Improvement fee receipts 1,320,695 Total SDC-related 2,107,519 Operating expense: Salaries and wages 1,120,169 Contracted services 318,806 Water purchases 1,787,040 General, admin and other 6,129,769 Total operating expenses 9,355,784 Net revenues (including SDCs) 16,817,377 Net revenues (excluding SDCs) $ 14,709,858 Debt service - first lien bonds: 2012 bonds $ 2,412,300 2015 bonds 1,668,500 2020 bonds 2,962,463 Total debt service $ 7,043,263 Debt service coverage - first lien bonds (excluding system development charges) 2.09 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. 88 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 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 235,000 1,433,800 1,668,800 2028-2032 1,340,000 6,991,100 8,331,100 2033-2037 1,705,000 6,630,625 8,335,625 2038-2042 2,195,000 6,145,125 8,340,125 2043-2046 23,440,000 2,917,250 26,357,250 32,130,000 $ 29,988,800 $65,481,663 Premium 3,362,863 Total $ 35,492,863 89 City of Tigard, Oregon Notes to Basic Financial Statements Long-term debt activity, including compensated absences,for the year ended June 30, 2022 was as follows: Balances June Balances June Due in one 30,2021 Additions Retirements 30,2022 year Governmental activities Direct borrowings and placements Bonds payable $ 5,642,000 $ - $ (441,000) $ 5,201,000 $ 549,000 Bonds payable(TCDA) 5,688,000 9,312,400 (641,000) 14,359,400 800,700 Total direct borrowings and placements 11,330,000 9,312,400 (1,082,000) 19,560,400 1,349,700 Other debt Bonds payable 6,305,000 - (1,695,000) 4,610,000 1,760,000 Total governmental debt 17,635,000 9,312,400 (2,777,000) 24,170,400 3,109,700 Premium on bonds 22,088 - (7,172) 14,916 5,846 Other long-term liabilities Compensated absences 1,651,483 2,533,336 (2,421,888) 1,762,931 1,692,414 Governmental activities $ 19,308,571 $ 11,845,736 $ (5,206,060) $ 25,948,247 $ 4,807,960 Business-type activities Direct borrowings and placements Note payable $ 1,472,023 $ - $ (117,023) $ 1,355,000 $ 120,533 Bonds payable 86,575,000 - (950,000) 85,625,000 970,000 Total direct borrowings and placements 88,047,023 - (1,067,023) 86,980,000 1,090,533 Other debt Bonds payable 34,595,000 - (2,465,000) 32,130,000 2,565,000 Total business-type debt 122,642,023 - (3,532,023) 119,110,000 3,655,533 Premium on bonds 4,747,499 - (291,872) 4,455,627 295,772 Other long-term liabilities Compensated absences 108,144 157,746 (183,352) 82,538 79,831 Business-type activities $ 127,497,666 $ 157,746 $ (4,007,247) $ 123,648,165 $ 4,031,136 Expenditures for liquidating other long-term liabilities, including compensated absences 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 Sewer fund to a capital project fund for various urban renewal development projects. Repayment of these transactions occurs in years subsequent to year-end. 90 City of Tigard, Oregon Notes to Basic Financial Statements 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, 2022 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 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 74,321 9,098 (64,217) (8,586) 10,104 512 2028-2032 414,577 39,217 (363,294) (37,414) 51,283 1,803 2033-2037 355,177 20,187 (334,302) (19,667) 20,875 520 2038-2041 79,073 3,819 (79,073) (3,819) - - $ 986,301 $ 109,963 $ (883,981) $ (105,080) $ 102,320 $ 4,883 91 City of Tigard, Oregon Notes to Basic Financial Statements Transfers for fiscal year ended June 30, 2022 are as follows: Transfer To Transfer From Amount Purpose General Nonmajor Governmental $ 309,000 $ 309,000 Unrestricted portion of the city's transient lodging tax Nonmajor Governmental General 2,437,500 Fund park and various other operations Fund parks,transportation and various other capital Nonmajor Governmental 4,696,015 projects Stormwater 18,920 Fund stormwater of a city-wide facilities project Fund sanitary sewer component of a city-wide facilities Sanitary Sewer 10,694 project Fund water component of a city-wide faciities project Water 70,960 and a transportation capital project 7,234,089 Sanitary Sewer Stormwater 1,081 1,081 Fund sewer component of stormwater project Stormwater Sanitary Sewer 153,147 153,147 Fund stormwater component of sewer project Funding of central services,public works administration Internal Service General 336,214 and engineering Nonmajor Governmental 730,952 Capital project funding contracting and accounting Sanitary Sewer 55,846 Capital project funding contracting,accounting,and Stormwater 117,527 public works engineering Water 479,327 1,719,866 $ 9,417,183 Reconciliation: Transferred to governmental funds from: Sewer Fund $ 66,540 Stormwater Fund 136,447 Water Fund 550,289 Total transfers per Statement of Activities $ 753,276 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. 92 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 $ - $ 188,697 $ 188,697 Deferred Outflows of Resources Differences Between Expected and Actual Experience 7,843 - 7,843 Change in Proportionate Share - 12,677 12,677 Change in Assumptions 34,974 3,713 38,687 Difference in Earnings - - - Contributions After the Measurement Date 33,259 1,184 34,443 Total Deferred Outflows of Resources 76,076 17,574 93,650 Total OPEB Liability 1,471,748 - 1,471,748 Deferred Inflows of Resources Differences Between Expected and Actual Experience 138,349 5,250 143,599 Change in Proportionate Share - 25,160 25,160 Change in Assumptions 201,066 2,807 203,873 Difference in Earnings - 44,844 44,844 Total Deferred Inflows of Resources 339,415 78,061 417,476 OPEB Expense (Income) 96,248 (32,200) 64,048 (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 93 City of Tigard, Oregon Notes to Basic Financial Statements responsible for the premiums. As of the valuation date of July 1, 2021, 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 $1,471,748 was measured as of June 30, 2022, and was determined by an actuarial valuation as of July 1, 2021. For the fiscal year ended June 30, 2022, the city recognized OPEB expense from this plan of $96,248.At June 30, 2022,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 $ 7,843 $ (138,349) Changes of assumptions 34,974 (201,066) Contributions subsequent to the measurement date 33,259 - Total $ 76,076 $ (339,415) Deferred outflows of resources related to OPEB of $33,259 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, 2023. 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 2023 $ (66,908) 2024 (66,908) 2025 (65,688) 2026 (54,717) 2027 (31,381) Thereafter (10,996) $ (296,598) 94 City of Tigard, Oregon Notes to Basic Financial Statements Actuarial Assumptions and Other Inputs The total OPEB liability in the July 1, 2021 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 Pub-2010 General and Safety Employee and Healthy Retiree tables, sex distinct for members and dependents, with a one-year setback for male general service employees and female safety employees. Discount rate 2.16 percent (change from 2.21 percent in previous measurement period) Healthcare cost trend rate Medical and vision: 5.25 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, 2021 $ 1,330,957 Changes for the year: Service cost 131,156 Interest on total OPEB liability 32,000 Effect of economic/demographic gains and losses - Effect of assumptions changes or inputs 6,095 Benefit payments (28,460) Balance as of June 30, 2022 $ 1,471,748 Changes in assumptions is the result of the change in the discount rate from 2.21 percent to 2.16 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 (1.16 percent) or 1- 95 City of Tigard, Oregon Notes to Basic Financial Statements percentage-point higher (3.16 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 (1.16%) Rate (2.16%) (3.16%) Total OPEB Liability $ 1,601,520 $ 1,471,748 $ 1,349,657 Healthcare Cost Trend: 1% Decrease Current Healthcare (4.25) Trend Rate (5.25) 1% Increase (6.25) Total OPEB Liability $ 1,278,104 $ 1,471,748 $ 1,700,305 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. 96 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, 2019 actuarial valuation.The rates based on a percentage of payroll, first became effective July 1, 2021. The city's contribution rates for the period were 0.05% for Tier One/Tier Two members. The city's total contributions for the year ended June 30, 2022 was $1,184. OPEB Assets, Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2022,the city reported an asset of$188,697 for its proportionate share of the OPERS net OPEB asset. The net OPEB asset was measured as of June 30, 2021, and the total OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation as of December 31, 2019 rolled forward to June 30, 2021. 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, 2021, the city's proportionate share was 0.0549%,which is a decrease from its proportion of 0.0345%as of June 30, 2020. For the year ended June 30, 2022, the city recognized OPEB income from this plan of $32,000. At June 30, 2022, 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 $ - $ 5,250 Change of assumptions 3,713 2,807 Net difference between projected and actual earnings 44,844 Changes in proportionate share 12,677 25,160 Contributions subsequent to the measurement date 1,184 - Total $ 17,574 $ 78,061 Deferred outflows of resources related to OPEB of$1,184 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, 2023. 97 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 2023 $ (17,892) 2024 (19,375) 2025 (10,238) 2026 (14,166) $ (61,671) Actuarial Methods and Assumptions The total OPEB liability in the December 31, 2019 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 2.4 percent Investment rate of return 6.9 percent Salary increases 3.4 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 estimates are made about the future. Experience studies are performed as of December 31 of 98 City of Tigard, Oregon Notes to Basic Financial Statements 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 June 2021 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% 5.0% 0.0% Risk Parity 0.0% 2.5% 2.5% Total 100.0% 99 City of Tigard, Oregon Notes to Basic Financial Statements Compounded Target Annual Return Asset Class Allocation (Geometric) Global Equity 30.62% 5.85% Private Equity 25.50% 7.71% Core Fixed Income 23.75% 2.73% Real Estate 12.25% 5.66% Master Liimited Partnerships 0.75% 5.71% Infrastructure 1.50% 6.26% Commodities 0.63% 3.10% Hedge Fund of Funds-Multistrategy 1.25% 5.11% Hedge Fund Equity-Hedge 0.63% 5.31% Hedge Fund-Macro 5.62% 5.06% US Cash -2.50% 1.76% Tota I 100.00% Assumed Inflation - Mean 2.40% Discount Rate The discount rate used to measure the total OPEB liability was 6.90 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. 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 6.90 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 (5.90 percent) or 1-percentage-point higher (7.90 percent) than the current rate: ioo City of Tigard, Oregon Notes to Basic Financial Statements 1% Decrease Current Discount 1% Increase (5.90%) Rate (6.90%) (7.90%) Net OPEB Liability (Asset) $ (166,875) $ (188,697) $ (207,338) 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. 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, 101 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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. 102 City of Tigard, Oregon Notes to Basic Financial Statements 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, 2019 actuarial valuation. The rates based on a percentage of payroll, first became effective July 1, 2021. The rates in effect for the period were 24.74 percent for Tier One/Tier Two police members and 19.44 percent for OPSRP Pension Program Police member. The city's total contributions exclusive of the 6 percent "pick-up" was $1,382,744. 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$408,913 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, 2022, the city reported a liability of $8,211,051 for its proportionate share of the OPERS net pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2019 rolled forward to June 30, 2021. 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, 2021,the city's proportion of OPERS net pension liability was 0.06862 percent. 103 City of Tigard, Oregon Notes to Basic Financial Statements Annual Pension Cost For the year ended June 30, 2022,the city recognized pension expense of$888,178. At June 30, 2022,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 $ 768,608 $ - Changes of assumptions 2,055,473 21,610 Net difference between projected and actual earnings on investments - 6,078,578 Changes in proportion 197,497 653,408 Differences between employer contributions and proportionate share of contributions 3,656 392,876 Total (prior to post-MD contributions) 3,025,234 7,146,472 Contributions subsequent to the MD 1,449,230 - Total $4,474,464 $7,146,472 Deferred outflows of resources related to pensions of $1,449,230 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, 2023. 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 2023 $ (799,439) 2024 (854,324) 2025 (1,111,978) 2026 (1,541,932) 2027 186,435 $(4,121,238) Actuarial Methods and Assumptions The total pension liability in the December 31, 2019 actuarial valuation was determined using the following actuarial methods and assumptions: 104 City of Tigard, Oregon Notes to Basic Financial Statements Actuarial Methods and Assumptions Valuation Date December 31, 2019 Measurement Date June 30, 2021 Experience Study Report 2018, published July 24, 2019 Actuarial Cost Method Entry Age Normal Actuarial Assumptions: Inflation Rate 2.40 percent Long-Term Expected Rate of Return 6.90 percent Discount Rate 6.90 percent Projected Salary Increases 3.40 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 June 2021 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. 105 City of Tigard, Oregon Notes to Basic Financial Statements 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% 5.0% 0.0% Risk Parity 0.0% 2.5% 2.5% Total 100.0% Compounded Target Annual Return Asset Class Allocation (Geometric) Global Equity 30.62% 5.85% Private Equity 25.50% 7.71% Core Fixed Income 23.75% 2.73% Real Estate 12.25% 5.66% Master Liimited Partnerships 0.75% 5.71% Infrastructure 1.50% 6.26% Commodities 0.63% 3.10% Hedge Fund of Funds-Multistrategy 1.25% 5.11% Hedge Fund Equity-Hedge 0.63% 5.31% Hedge Fund-Macro 5.62% 5.06% US Cash -2.50% 1.76% Total 100.00% Assumed Inflation - Mean 2.40% Discount Rate The discount rate used to measure the total pension liability was 6.90 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. 106 City of Tigard, Oregon Notes to Basic Financial Statements 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 6.90 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 (5.90 percent) or 1-percentage-point higher (7.90 percent) than the current rate: 1% Decrease Discount Rate 1% Increase (5.90%) (6.90%) (7.90%) City's proportionate share of the net pension liability $ 16,124,541 $ 8,211,051 $ 1,590,333 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. 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 $1,852,556 for the year ended June 30, 2022. 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. The amounts accumulated under the 401a plan including investment earnings are excluded from the financial statements of the city. 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 107 City of Tigard, Oregon Notes to Basic Financial Statements 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, 2022, 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 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 108 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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, 2022, the city's property tax revenues were reduced by an estimated $19,000 as a result of the EZ program. For the fiscal year ended June 30, 2022,the Tigard Urban Renewal's property tax revenues were reduced by an estimated $2,000 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. 109 City of Tigard, Oregon Notes to Basic Financial Statements 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 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, 2022, the city's property tax revenues were reduced by an estimated $56,000 as a result of this program. For fiscal year ended June 30, 2022 the Tigard Urban Renewal's property tax revenues were reduced by an estimated $5,000 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 no City of Tigard, Oregon Notes to Basic Financial Statements 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, 2022, the city's property tax revenues were reduced by an estimated $26,000 as a result of this program. For the fiscal year ended June 30, 2022 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, 2022, the city abated property taxes totaling $101,000 under the three programs. For fiscal year ended June 30, 2022 the Tigard Urban Renewal's abated property taxes totaling $9,000 under the three programs. FY 2022 Taxes Abated Tigard Urban Tax Abatement Program City of Tigard Renewal Enterprise Zone $ 19,000 $ 2,000 Non-Profit Low Income Housing Limited Tax Exemption 56,000 5,000 Vertical Housing Development Zone 26,000 2,000 Total $ 101,000 $ 9,000 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 2022 the city paid $15,500,245 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 111 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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, 2022: Tualatin Valley Water District 39.40 City of Wilsonville 16.70 City of Sherwood 6.50 City of Tigard 10.00 City of Hillsboro 24.10 City of Beaverton 3.30 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, 2022 the city's investment in the WIF was: 112 City of Tigard, Oregon Notes to Basic Financial Statements Investment in joint venture at June 30, 2021 $ 1,792,758 Contributions 445,808 Loss for the year (32,346) Investment in joint venture at June 30, 2022 $ 2,206,220 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. 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, 2022, the outstanding debt amount for the project is $122,210,627. Operating costs and future capital expense Operating costs and future capital expenses are based on different criteria for each section of the system: 113 City of Tigard, Oregon Notes to Basic Financial Statements 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, 2022 are as follows: Project Commitment ASR Wells Rehabilitation $ 1,003,380 Cach Resevoir & Pump Station 112,206 Dirksen Nature Park 748,921 Main Street Phase 2 2,994,562 Murdock Street Sidewalk & Stormwater 374,728 PMP Design and Inspection 412,718 Red Rock Creek Stabilization and Enhancem 234,339 Reservoir 18 & Pump Station 1,523,168 Universal Plaza 574,581 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. 114 City of Tigard, Oregon Notes to Basic Financial Statements 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 The City has evaluated subsequent events through December 22, 2022, the date which the financial statement were available to be issued. As of the report date, December 22, 2022, no subsequent events were identified by management. 115 No content appears on this page by design. 116 Required Supplementary Information 118 CITY OF TIGARD,OREGON GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original _ Final Amounts budget REVENUES Taxes $ 18,452,556 $ 18,452,556 $ 18,404,753 $ (47,803) Grants - - 7,584,380 7,584,380 Licenses and permits 1,142,119 1,142,119 1,393,954 251,835 Intergovernmental revenues 7,316,572 7,969,892 6,993,666 (976,226) Charges for services 232,743 232,743 312,240 79,497 Fines and forfeitures 2,128,301 2,128,301 1,872,103 (256,198) Franchise fees 6,701,356 6,701,356 7,272,781 571,425 Interest earnings 300,675 300,675 272,163 (28,512) Net increase(decrease)in investment fair value - - (807,298) (807,298) Miscellaneous revenues 356,432 369,144 454,721 85,577 Total revenues 36,630,754 37,296,786 43,753,463 6,456,677 EXPENDITURES Community services 27,417,691 28,259,680 25,605,468 2,654,212 Public works - - - - Community development 4,410,334 4,567,392 3,698,389 869,003 Policy and administration 1,676,325 1,676,325 1,212,217 464,108 Total expenditures 33,504,350 34,503,397 30,516,074 3,987,323 Change in fund balance before other financing sources(uses) 3,126,404 2,793,389 13,237,389 10,444,000 OTHER FINANCING SOURCES(USES) Transfer in 244,000 309,000 309,000 - Interfund loan (1,000) (1,000) - 1,000 Transfer out (2,773,714) (4,498,714) (2,773,714) 1,725,000 Contingency (1,600,000) (626,712) - 626,712 Reserve for future expenditures (28,037,055) (27,285,555) - 27,285,555 Total other financing(uses) (32,167,769) (32,102,981) (2,464,714) 29,638,267 Change in fund balance (29,041,365) (29,309,592) 10,772,675 40,082,267 Fund balance-beginning of the year 29,041,365 29,309,592 30,035,743 726,151 Fund balance-end of the year $ - $ - 40,808,418 $ 40,808,418 Reconciliation of budgetary fund balance to GAAP basis net position: Interfund Loan 883,981 Total net position,GAAP basis $ 41,692,399 119 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 2022 2021 2020 City's proportion of the net pension liability (asset) 0.068617% 0.067873% 0.075025% City's proportionate share of the net pension liability (asset) $ 8,211,051 $ 14,812,243 $ 12,977,450 City's covered payroll $ 6,960,595 $ 6,307,694 $ 6,331,572 City's proportionate share of the net pension liability (asset) as a percentage of its covered payroll 117.96% 234.83% 204.96% Plan fiduciary net position as a percentage of the total pension liability 87.57% 75.79% 80.23% 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 2022 is July 1, 2020-June 30, 2021. 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. 120 2019 2018 2017 2016 2015 0.073322% 0.072960% 0.074719% 0.081488% 0.074022% $ 11,107,323 $ 9,835,041 $ 11,216,998 $ 4,678,602 $ (1,677,869) $ 5,941,342 $ 6,280,408 $ 6,610,002 $ 6,187,208 $ 6,025,900 186.95% 156.60% 169.70% 75.62% -27.84% 82.07% 83.12% 80.53% 91.88% 103.59% Change in Assumptions The PERS Board adopted assumption changes that were used to measure the June 23, 2021 total pension liability, which contributes to the net pension liability reported by the city for fiscal year 2022. The changes include lowering the long-term expected rate of return to 6.90 percent and lowering the assumed inflation to 2.40 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 23, 2021, the OPERS Board lowered the assumed earnings rate from 7.20 percent to 6.90 percent. The new assumed earnings rate affected rates on July 1, 2021. 121 City of Tigard, Oregon Schedule of the City's Contributions Oregon Public Employees Retirement System Last Eight Fiscal Years 1 2022 2021 2020 Contractually required contributions $ 1,449,229 $ 1,344,480 $ 1,302,699 Contributions in relation to the contractually required contribution (1,449,229) (1,344,480) (1,302,699) Contribution deficiency (excess) $ - $ - $ - City's covered payroll $ 7,108,063 $ 6,960,595 $ 6,307,694 Contributions as a percentage of covered payroll 20.39% 19.32% 20.65% 110-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, 2019 December 31, 2018 December 31, 2017 Effective July 2021 -June 2022 July 2020 -June 2021 July 2019 -June 2020 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 2.40 percent 2.50 percent 2.50 percent Projected salary increases 3.40 percent 3.50 percent 3.50 percent Investment rate of return 6.90 percent 7.20 percent 7.20 percent 122 2019 2018 2017 2016 2015 $ 1,039,691 $ 937,027 $ 787,306 $ 761,228 $ 782,812 (1,039,691) (937,027) (787,306) (761,228) (782,812) $ - $ - $ - $ - $ $ 6,331,572 $ 5,941,342 $ 6,280,408 $ 6,610,002 $ 6,187,208 16.42% 15.77% 12.54% 11.52% 12.65% December 31, 2016 December 31, 2015 December 31, 2013 December 31, 2011 July 2018 -June 2019 July 2017 -June 2018 July 2015 -June 2017 July 2013 -June 2015 Entry Age Normal Entry Age Normal Entry Age Normal Projected Unit Credit Market Value Market Value Market Value Market Value 2.50 percent 2.50 percent 2.75 percent 2.75 percent 3.50 percent 3.50 percent 3.75 percent 3.75 percent 7.20 percent 7.50 percent 7.75 percent 8.00 percent 123 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 2022 2021 2020 _ 2019 2018 Total OPEB Liability(in 1,000s) Service cost $ 131 $ 121 $ 109 $ 117 $ 100 Interest 32 53 52 54 43 Changes in benefit terms - - - - - Economic/demographic losses - (189) - 15 - Changes of assumptions or other inputs 6 (19) 46 (292) (96) Benefit payments (28) (51) (59) (49) (59) Net change in OPEB liability 141 (85) 148 (155) (12) Total OPEB Liability-beginning 1,331 1,416 1,268 1,423 1,435 Total OPEB Liability-ending $ 1,472 $ 1,331 $ 1,416 $ 1,268 $ 1,423 Covered-employee payroll $ 25,775 $ 24,881 $ 23,214 $ 21,705 $ 21,438 Total OPEB Liability as a%of covered- employee payroll 5.71% 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 2022 is July 1,2020-June 30, 2021 There are no assets accumulated in a trust that meet the criteria of GASB codification P22.101 or P52.1.1 to pay related benefits for the OPEB plan. 124 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 Six Fiscal Years 1'2 2022 2021 2020 2019 2018 2017 City's proportion of the net OPEB liability(asset) 0.0549% 0.0345% 0.0607% 0.0579% 0.0613% 0.0675% City's proportionate share of the net OPEB liability(asset) $ (188,697) $ (70,282) $ (117,368) $ (64,649) $ (25,563) $ 18,323 City's covered payroll $ 6,960,595 $ 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 -2.7% -1.1% -1.9% -1.1% -0.4% 0.3% Plan fiduciary net position as a percentage of the total OPEB liability 183.9% 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 2022 is July 1,2020-June 30,2021 125 City of Tigard,Oregon Schedule of the City's Contributions Oregon Public Employees Retirement System,Retirement Health Insurance Account Last Six Fiscal years' 2022 2021 2020 2019 2018 2017 Contractually required contributions $ 1,184 $ 2,194 $ 2,463 $ 30,103 $ 29,366 $ 31,820 Contributions in relation to the contractually required contribution (1,184) (2,194) (2,463) (30,103) (29,366) (31,820) Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - City's covered payroll $ 7,108,063 $ 6,960,595 $ 6,307,694 $ 6,331,572 $ 5,941,342 $ 6,280,408 Contributions as a percentage of covered payroll 0.02% 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 31,2019 December 31,2018 December 31,2017 December 31,2016 December 31,2015 December 31,2013 Effective July 2021-June 2022 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 Entry Age Normal Actuarial valuation method: Market Value Market Value Market Value Market Value Market Value Market Value Actuarial assumption: Inflation rate 2.40 percent 2.50 percent 2.50 percent 2.50 percent 2.50 percent 2.75 percent Projected salary increases 3.40 percent 3.50 percent 3.50 percent 3.50 percent 3.50 percent 3.75 percent Investment rate of return 6.90 percent 7.20 percent 7.20 percent 7.20 percent 7.50 percent 7.75 percent 126 Other Supplementary Information 127 128 CITY OF TIGARD,OREGON COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30,2022 Special Debt Service Capital Project Revenue Funds Funds Funds Total ASSETS Cash and investments $ 3,286,557 $ - $ 4,813,669 $ 8,100,226 Accounts receivable 1,175,267 - 967,748 2,143,015 Property taxes receivable 25,826 59,867 - 85,693 Assessment liens receivable - 32,136 3,413 35,549 Interest receivable - 9,518 2,890 12,408 Restricted cash and investments 28,407,053 5,101,313 52,562,464 86,070,830 Total assets $ 32,894,703 $ 5,202,834 $ 58,350,184 $ 96,447,721 LIABILITIES Accounts payable and accrued liabilities $ 492,606 $ - $ 1,341,612 $ 1,834,218 Deposits 1,523,450 - - 1,523,450 Due to others 62,040 - - 62,040 Advances from other funds - - 986,301 986,301 Unearned revenue 50,000 - - 50,000 Total liabilities 2,128,096 - 2,327,913 4,456,009 DEFERRED INFLOWS OF RESOURCES Resources not yet available: Property taxes 20,398 48,186 - 68,584 Transportation refund credits 35,857 - - 35,857 Special assessment liens - 32,136 3,413 35,549 Total deferred inflows of resources 56,255 80,322 3,413 139,990 FUND BALANCES Non-spendable: Long-term contract - - 500,000 500,000 Restricted for: Street maintenance and improvements 11,211,229 - 26,594,527 37,805,756 Tourism 610,182 - - 610,182 Affordable housing 1,011,297 - - 1,011,297 Debt service - 5,122,512 - 5,122,512 Park development and improvements - - 12,567,803 12,567,803 Underground utilities - - 726,205 726,205 Building inspection 10,863,569 - - 10,863,569 Police services 1,880,418 - - 1,880,418 Library improvements 602,109 - - 602,109 Urban development and improvements - - 10,532,537 10,532,537 Committed for: Street maintenance and improvements - - 4,287,999 4,287,999 Urban forestry 1,094,465 - - 1,094,465 Assigned to: City facilities - - 883,024 883,024 Park and recreation 3,437,083 - - 3,437,083 Unassigned - - (73,237) (73,237) Total fund balances 30,710,352 5,122,512 56,018,858 91,851,722 Total liabilities,deferred inflows of resources and fund balances $ 32,894,703 $ 5,202,834 $ 58,350,184 $ 96,447,721 129 CITY OF TIGARD,OREGON COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS for the year ended June 30,2022 Special Debt Service Capital Project Revenue Funds Funds Funds Total REVENUES Taxes $ 9,669,722 $ 4,340,040 $ - $ 14,009,762 Special assessments - 71,140 - 71,140 Licenses and permits 3,044,495 - - 3,044,495 Intergovernmental revenues 46,221 - 708,501 754,722 Charges for services 2,570,842 - 3,646,066 6,216,908 System development charges - - 4,410,347 4,410,347 Fines and forfeitures 85,072 - - 85,072 Interest earnings 182,062 37,192 295,507 514,761 Net increase(decrease)in investment fair value (660,460) (337,749) (1,084,385) (2,082,594) Miscellaneous revenues 76,182 - 460 76,642 Total revenues 15,014,136 4,110,623 7,976,496 27,101,255 EXPENDITURES Community services 1,791,106 - - 1,791,106 Public works 7,358,243 - - 7,358,243 Community development 2,352,425 - - 2,352,425 Debt service: Principal - 2,777,000 - 2,777,000 Interest - 630,131 - 630,131 Capital outlay - - 8,400,434 8,400,434 Total expenditures 11,501,774 3,407,131 8,400,434 23,309,339 Changes in fund balance before other financing sources(uses) 3,512,362 703,492 (423,938) 3,791,916 OTHER FINANCING SOURCES(USES) Transfer in 2,971,000 - 4,263,089 7,234,089 Transfer out (2,606,471) - (3,129,496) (5,735,967) Total other financing sources(uses) 364,529 - 10,445,993 10,810,522 Changes in fund balance 3,876,891 703,492 10,022,055 14,602,438 Fund Balance-Beginning of the year 26,833,461 4,419,020 45,996,803 77,249,284 Fund Balance-End of the year $ 30,710,352 $ 5,122,512 $ 56,018,858 $ 91,851,722 130 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. 131 132 No content appears on this page by design. 133 CITY OF TIGARD,OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30,2022 City Gas Transient Construction Electrical Gas Tax Tax Lodging Tax Excise Tax Inspection Fund Fund Fund Fund Fund ASSETS Cash and investments $ - $ - $ - $ - $ - Accounts receivable 660,769 81,437 140,795 - 267 Property taxes receivable - - - - - Restricted cash and investments 7,952,267 3,488,647 469,387 1,027,581 402,142 Total assets $ 8,613,036 $ 3,570,084 $ 610,182 $ 1,027,581 $ 402,409 LIABILITIES Accounts payable $ 53,252 $ - $ - $ 16,284 $ - Due to others - - - - 603 Deposits 882,782 - - - - Unearned revenue - - - - - Total liabilities 936,034 - - 16,284 603 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 7,653,509 3,557,720 - - - Tourism - - 610,182 - - Affordable housing - - - 1,011,297 - Building inspection - - - - 401,806 Police services - - - - - Library improvements - - - - - Committed for: Urban forestry - - - - - Assigned for: Park and recreation - - - - - Total fund balances 7,653,509 3,557,720 610,182 1,011,297 401,806 Total liabilities and fund balances $ 8,613,036 $ 3,570,084 $ 610,182 $ 1,027,581 $ 402,409 134 Criminal Urban Parks Police Building Forfeiture Forestry Utility Levy Library Fund Fund Fund Fund Fund Fund Total $ - $ - $ - $ 3,286,557 $ - $ - $ 3,286,557 2,260 - 1,037 284,554 4,240 (92) 1,175,267 25,826 - 25,826 10,713,385 657,623 1,734,096 - 1,309,724 652,201 28,407,053 $ 10,715,645 $ 657,623 $ 1,735,133 $ 3,571,111 $ 1,339,790 $ 652,109 $ 32,894,703 $ 245,246 $ - $ - $ 134,028 $ 43,796 $ - $ 492,606 8,636 52,801 - - - - 62,040 - - 640,668 - - - 1,523,450 - - - - - 50,000 50,000 253,882 52,801 640,668 134,028 43,796 50,000 2,128,096 - - - - - - 35,857 - - - - 20,398 - 20,398 - - - - 20,398 - 56,255 - - - - - - 11,211,229 - - - - - - 610,182 - - - - - - 1,011,297 10,461,763 - - - - - 10,863,569 - 604,822 - - 1,275,596 - 1,880,418 - - - - - 602,109 602,109 - - 1,094,465 - - - 1,094,465 - - - 3,437,083 - - 3,437,083 10,461,763 604,822 1,094,465 3,437,083 1,275,596 602,109 30,710,352 $ 10,715,645 $ 657,623 $ 1,735,133 $ 3,571,111 $ 1,339,790 $ 652,109 $ 32,894,703 135 CITY OF TIGARD,OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE for the year ended June 30,2022 City Gas Transient Construction Electrical Gas Tax Tax Lodging Tax Excise Tax Inspection Fund Fund Fund _ Fund Fund REVENUES Taxes $ - $ - $ - $ - $ - Gas tax 5,560,118 - - - - City gas tax - 819,817 - - - Hotel/Motel tax - - 583,387 - - Construction excise tax - - - 556,014 - Licenses and permits 35,968 - - - 256,339 Charges for services - - - - - Intergovernmental revenues - - - - - Fines and forfeitures - - - - - Tree replacement revenue - - - - - Interest earnings 51,124 22,878 2,644 4,363 2,795 Net increase(decrease)in investment fair value (192,414) (80,240) (8,950) (11,447) (7,459) Miscellaneous revenues 49,378 - - - - Total revenues 5,504,174 762,455 577,081 548,930 251,675 EXPENDITURES Community services - - - - - Public works 3,292,515 - - - - Community development - - - - - Total expenditures 3,292,515 - - - - Changes in fund balance before other financing sources(uses) 2,211,659 762,455 577,081 548,930 251,675 OTHER FINANCING SOURCES(USES) Transfer in 283,500 - - - - Transfer out (1,162,785) (421,315) (325,446) (285,773) (254,267) Total other financing sources(uses) (879,285) (421,315) (325,446) (285,773) (254,267) Changes in fund balance 1,332,374 341,140 251,635 263,157 (2,592) Fund balance-Beginning of the year 6,321,135 3,216,580 358,547 748,140 404,398 Fund balance-End of the year $ 7,653,509 $ 3,557,720 $ 610,182 $1,011,297 $ 401,806 136 Criminal Urban Parks Police Building Forfeiture Forestry Utility Levy Library Fund Fund Fund Fund Fund Fund Total $ - $ - $ - $ - $ 2,150,386 $ - $ 2,150,386 - - - - - - 5,560,118 - - - - - - 819,817 - - - - - - 583,387 - - - - - - 556,014 2,752,188 - - - - - 3,044,495 - - - 2,569,383 - - 2,569,383 46,221 - - - - - 46,221 85,072 - - - - 85,072 - - 1,459 - - - 1,459 66,373 2,940 11,377 7,654 5,677 4,237 182,062 (228,549) (7,318) (33,813) (56,545) (22,453) (11,272) (660,460) 6,165 - - 20,639 - - 76,182 2,642,398 80,694 (20,977) 2,541,131 2,133,610 (7,035) 15,014,136 80,748 - - 1,710,358 - 1,791,106 - - 4,065,728 - - 7,358,243 2,352,425 - _ - - - - 2,352,425 2,352,425 80,748 - 4,065,728 1,710,358 - 11,501,774 289,973 (54) (20,977) (1,524,597) 423,252 (7,035) 3,512,362 250,000 - - 2,437,500 - - 2,971,000 - (16) (56,788) (100,081) - - (2,606,471) 250,000 (16) (56,788) 2,337,419 - - 364,529 539,973 (70) (77,765) 812,822 423,252 (7,035) 3,876,891 9,921,790 604,892 1,172,230 2,624,261 852,344 609,144 26,833,461 $ 10,461,763 $ 604,822 $ 1,094,465 $ 3,437,083 $ 1,275,596 $ 602,109 $ 30,710,352 137 CITY OF TIGARD,OREGON GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES State gas tax $ 3,624,320 $ 3,624,320 $ 4,430,594 $ 806,274 County gas tax 989,440 989,440 1,129,524 140,084 Licenses and permits 65,965 65,965 35,968 (29,997) Interest earnings 61,800 61,800 51,124 (10,676) Net increase(decrease)in investment fair value - - (192,414) (192,414) Miscellaneous revenues 62,818 62,818 49,378 (13,440) Total revenues 4,804,343 4,804,343 5,504,174 699,831 EXPENDITURES Public works 3,509,585 3,570,585 3,292,515 278,070 Change in fund balance before other financing sources(uses) 1,294,758 1,233,758 2,211,659 977,901 OTHER FINANCING SOURCES(USES) Transfer in 283,500 283,500 283,500 - Transfer out (2,467,104) (2,476,104) (1,162,785) 1,313,319 Contingency (200,000) (200,000) - 200,000 Reserve for future expenditures (4,560,533) (4,560,533) - 4,560,533 Total other financing(uses) (6,944,137) (6,953,137) (879,285) 6,073,852 Change in fund balance (5,649,379) (5,719,379) 1,332,374 7,051,753 Fund balance-Beginning of the year 5,649,379 5,719,379 6,321,135 601,756 Fund balance-End of the year $ - $ - $ 7,653,509 $ 7,653,509 * Budget appropriation is made at the debt service program level 138 CITY OF TIGARD,OREGON CITY GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES City gas tax $ 806,000 $ 806,000 $ 819,817 $ 13,817 Interest earnings 29,025 29,025 22,878 (6,147) Net increase(decrease)in investment fair value - - (80,240) (80,240) Total revenues 835,025 835,025 762,455 (72,570) OTHER FINANCING SOURCES(USES) Transfer out (2,042,337) (2,042,337) (421,315) 1,621,022 Reserve for future expenditures _ (1,814,908) (1,814,908) - 1,814,908 Total other financing sources(uses) _ (3,857,245) (3,857,245) (421,315) 3,435,930 Change in fund balance (3,022,220) (3,022,220) 341,140 3,363,360 Fund balance-Beginning of the year 3,022,220 3,022,220 3,216,580 194,360 Fund balance-End of the year $ - $ - $ 3,557,720 $ 3,557,720 * Budget appropriation is made at the debt service program level 139 CITY OF TIGARD,OREGON TRANSIENT LODGING TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Hotel/Motel tax $ 370,978 $ 370,978 $ 583,387 $ 212,409 Interest earnings 3,600 3,600 2,644 (956) Net increase(decrease)in investment fair value - - (8,950) (8,950) Total revenues 374,578 374,578 577,081 202,503 OTHER FINANCING SOURCES(USES) Transfer out (247,863) (325,863) (325,446) 417 Reserve for future expenditures _ (841,353) (776,353) - 776,353 Total other financing sources(uses) _ (1,089,216) (1,102,216) (325,446) 776,770 Change in fund balance (714,638) (727,638) 251,635 979,273 Fund balance-Beginning of the year 714,638 727,638 358,547 (369,091) Fund balance-End of the year $ - $ - $ 610,182 $ 610,182 * Budget appropriation is made at the debt service program level 140 CITY OF TIGARD,OREGON CONSTRUCTION EXCISE TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Construction excise tax $ 450,000 $ 450,000 $ 556,014 $ 106,014 Interest earnings 3,000 3,000 4,363 1,363 Net increase(decrease)in investment fair value - - (11,447) (11,447) Total revenues 453,000 453,000 548,930 95,930 EXPENDITURES Development services 559,800 559,800 - 559,800 Change in fund balance before other financing sources(uses) (106,800) (106,800) 548,930 655,730 OTHER FINANCING SOURCES(USES) Transfer out (285,773) (285,773) (285,773) - Contingency (50,000) (50,000) - 50,000 Reserve for future expenditures (223,427) (223,427) - 223,427 Total other financing sources(uses) (559,200) (559,200) (285,773) 273,427 Change in fund balance (666,000) (666,000) 263,157 929,157 Fund balance-Beginning of the year 666,000 666,000 748,140 82,140 Fund balance-End of the year $ - $ - $ 1,011,297 $ 1,011,297 141 CITY OF TIGARD,OREGON ELECTRICAL INSPECTION FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Licenses and permits $ 305,825 $ 305,825 $ 256,339 $ (49,486) Interest earnings 6,300 6,300 2,795 (3,505) Net increase(decrease)in investment fair value - - (7,459) (7,459) Total revenues 312,125 312,125 251,675 (60,450) OTHER FINANCING(USES) Transfer out (254,267) (254,267) (254,267) - Reserve for future expenditures (531,170) (531,170) - 531,170 Total other financing(uses) _ (785,437) (785,437) (254,267) 531,170 Change in fund balance (473,312) (473,312) (2,592) 470,720 Fund balance-Beginning of the year 473,312 473,312 404,398 (68,914) Fund balance-End of the year $ - $ - $ 401,806 $ 401,806 142 CITY OF TIGARD,OREGON BUILDING FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Licenses and permits $ 3,533,704 $ 3,533,704 $ 2,752,188 $ (781,516) Intergovernmental revenues 8,281 8,281 46,221 37,940 Interest earnings 112,875 112,875 66,373 (46,502) Net increase(decrease)in investment fair value - - (228,549) (228,549) Miscellaneous revenues 7,500 7,500 6,165 (1,335) Total revenues 3,662,360 3,662,360 2,642,398 (1,019,962) EXPENDITURES Community development 2,653,792 2,610,292 2,352,425 257,867 Change in fund balance before other financing sources(uses) 1,008,568 1,052,068 289,973 (762,095) OTHER FINANCING SOURCES(USES) Transfer in 250,000 250,000 250,000 - Contingency (150,000) (150,000) - 150,000 Reserve for future expenditures (12,512,918) (12,556,418) - 12,556,418 Total other financing sources(uses) (12,412,918) (12,456,418) 250,000 12,706,418 Change in fund balance (11,404,350) (11,404,350) 539,973 11,944,323 Fund balance-Beginning of the year 11,404,350 11,404,350 9,921,790 (1,482,560) Fund balance-End of the year $ - $ - $ 10,461,763 $ 10,461,763 143 CITY OF TIGARD,OREGON CRIMINAL FORFEITURE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 2,940 $ 2,940 Net increase(decrease)in investment fair value - - (7,318) (7,318) Forfeitures 101,289 101,289 85,072 (16,217) Total revenues 101,289 101,289 80,694 (20,595) EXPENDITURES Community services 362,719 386,994 80,748 306,246 Change in fund balance before other financing sources(uses) (261,430) (285,705) (54) 285,651 OTHER FINANCING SOURCES(USES) Transfer out (16) (16) (16) - Reserve for future expenditures (309,394) (309,394) _ - 309,394 Total other financing sources(uses) (309,410) (309,410) (16) 309,394 Change in fund balance (570,840) (595,115) (70) 595,045 Fund balance-Beginning of the year 570,840 595,115 604,892 9,777 Fund balance-End of the year $ - $ - $ 604,822 $ 604,822 144 CITY OF TIGARD,OREGON URBAN FORESTRY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Tree replacement revenue $ 15,000 $ 15,000 $ 1,459 $ (13,541) Interest earnings 26,400 26,400 11,377 (15,023) Net increase(decrease)in investment fair value - - (33,813) (33,813) Total revenues 41,400 41,400 (20,977) (62,377) OTHER FINANCING SOURCES(USES) Transfer out (152,088) (152,088) (56,788) 95,300 Reserve for future expenditures (883,316) (883,316) - 883,316 Total other financing sources(uses) (1,035,404) (1,035,404) (56,788) 978,616 Change in fund balance (994,004) (994,004) (77,765) 916,239 Fund balance-Beginning of the year 994,004 994,004 1,172,230 178,226 Fund balance-End of the year $ - $ - $ 1,094,465 $ 1,094,465 145 CITY OF TIGARD,OREGON PARKS UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 2,497,148 $ 2,497,148 $ 2,569,383 $ 72,235 Interest earnings 2,475 2,475 7,654 5,179 Net increase(decrease)in investment fair value - - (56,545) (56,545) Miscellaneous revenues - - 20,639 20,639 Total revenues 2,499,623 2,499,623 2,541,131 41,508 EXPENDITURES Public works 4,604,614 4,719,614 4,065,728 653,886 Change in fund balance before other financing sources(uses) (2,104,991) (2,219,991) (1,524,597) 695,394 OTHER FINANCING SOURCES(USES) Transfer in 2,437,500 2,437,500 2,437,500 - Transfer out (105,402) (112,902) (100,081) 12,821 Contingency (325,000) (210,000) - 210,000 Reserve for future expenditures (1,981,850) (1,981,850) - 1,981,850 Total other financing sources(uses) 25,248 132,748 2,337,419 2,204,671 Change in fund balance (2,079,743) (2,087,243) 812,822 2,900,065 Fund balance-Beginning of the year 2,079,743 2,087,243 2,624,261 537,018 Fund balance-End of the year $ - $ - $ 3,437,083 $ 3,437,083 146 CITY OF TIGARD,OREGON POLICE LEVY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Taxes $ 2,063,142 $ 2,063,142 $ 2,150,386 $ 87,244 Interest earnings - - 5,677 5,677 Net increase(decrease)in investment fair value - - (22,453) (22,453) Total revenues 2,063,142 2,063,142 2,133,610 70,468 EXPENDITURES Community services 2,128,599 2,142,035 1,710,358 431,677 Changes in fund balance before other financing sources(uses) (65,457) (78,893) 423,252 502,145 OTHER FINANCING SOURCES(USES) Reserve for future expenditures _ (257,495) (257,495) - 257,495 Total other financing sources(uses) _ (257,495) (257,495) - 257,495 Change in fund balance (322,952) (336,388) 423,252 759,640 Fund balance-Beginning of the year 322,952 336,388 852,344 515,956 Fund balance-End of the year $ - $ - $ 1,275,596 $ 1,275,596 * Budget appropriation is made at the debt service program level 147 CITY OF TIGARD,OREGON LIBRARY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES: Interest earnings $ 9,750 $ 9,750 $ 4,237 $ (5,513) Net increase(decrease)in investment fair value - - (11,272) _ (11,272) Total revenue 9,750 9,750 (7,035) (16,785) OTHER FINANCING SOURCES(USES) Transfer out (100,000) (100,000) - 100,000 Reserve for future expenditures (366,906) (366,906) - 366,906 Total other financing sources(uses) (466,906) (466,906) - 466,906 Change in fund balance (457,156) (457,156) (7,035) 450,121 Fund balance-Beginning of the year 457,156 457,156 609,144 151,988 Fund balance-End of the year $ - $ - $ 602,109 $ 602,109 148 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. 149 150 No content appears on this page by design. 151 CITY OF TIGARD,OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING BALANCE SHEET June 30,2022 Bancroft Bond General City Center Urban Debt Service Obligation Debt Renewal Debt Fund Service Fund Service Fund ASSETS Property taxes receivable $ - $ 37,394 $ 10,091 Assessment liens receivable 32,136 - - Intergovernmental receivable - 5,855 1,605 Restricted cash and investments 298,587 1,831,998 1,592,642 Total assets $ 330,723 $ 1,875,247 $ 1,604,338 DEFERRED INFLOWS OF RESOURCES Resources not yet available: Special assessments/liens 32,136 - - Property taxes - 30,259 8,127 Total deferred inflows of resources 32,136 30,259 8,127 FUND BALANCES Restricted for debt service 298,587 1,844,988 1,596,211 Total liabilities,deferred inflows of resources and fund balances $ 330,723 $ 1,875,247 $ 1,604,338 152 Tigard Triangle Debt Service Fund Total $ 12,382 $ 59,867 - 32,136 2,058 9,518 1,378,086 5,101,313 $ 1,392,526 $ 5,202,834 - 32,136 9,800 48,186 9,800 80,322 1,382,726 5,122,512 $ 1,392,526 $ 5,202,834 153 CITY OF TIGARD,OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES for the year ended June 30,2022 Bancroft Bond General City Center Urban Debt Service Obligation Debt Renewal Debt Fund Service Fund _ Service Fund REVENUES Taxes $ - $ 2,573,895 $ 728,711 Collection of bonded assessments 71,140 - - Interest earnings 11,399 11,685 7,626 Net increase(decrease)in investment fair value (70) (292,918) (22,508) Total revenues 82,469 2,292,662 713,829 EXPENDITURES Debt service: Principal - 2,136,000 288,300 Interest - 316,640 177,231 Total expenditures - 2,452,640 465,531 Change in fund balance before other financing sources(uses) 82,469 (159,978) 248,298 Change in fund balance 82,469 (159,978) 248,298 Fund balance-Beginning of the year 216,118 2,004,966 1,347,913 Fund balance-End of the year $ 298,587 $ 1,844,988 $ 1,596,211 154 Tigard Triangle Debt Service Fund Total $ 1,037,434 $ 4,340,040 71,140 6,482 37,192 (22,253) (337,749) 1,021,663 4,110,623 352,700 2,777,000 136,260 630,131 488,960 3,407,131 532,703 703,492 532,703 703,492 850,023 4,419,020 $ 1,382,726 $ 5,122,512 155 CITY OF TIGARD,OREGON BANCROFT BOND DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Collection of bonded assessments $ 50,000 $ 50,000 $ 71,140 $ 21,140 Interest earnings 31,425 31,425 11,399 (20,026) Net increase(decrease)in investment fair value - - (70) (70) Total revenues 81,425 81,425 82,469 1,044 OTHER FINANCING SOURCES(USES) Reserve for future expenditures _ (264,136) (264,136) - 264,136 Total other financing sources(uses) _ (264,136) (264,136) - 264,136 Change in fund balance (182,711) (182,711) 82,469 265,180 Fund balance-Beginning of the year 182,711 182,711 216,118 33,407 Fund balance-End of the year $ - $ - $ 298,587 $ 298,587 156 CITY OF TIGARD,OREGON GENERAL OBLIGATION DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Taxes $ 2,749,907 $ 2,749,907 $ 2,573,895 $ (176,012) Interest earnings 27,750 27,750 11,685 (16,065) Net increase(decrease)in investment fair value - - (292,918) (292,918) Total revenues 2,777,657 2,777,657 2,292,662 (484,995) EXPENDITURES Debt service: Principal 2,136,000 2,136,000 2,136,000 - Interest 332,400 332,400 316,640 15,760 Total expenditures 2,468,400 2,468,400 2,452,640 15,760 Change in fund balance before other financing sources(uses) 309,257 309,257 (159,978) (469,235) OTHER FINANCING SOURCES(USES) Reserve for future expenditures (8,033,948) (8,033,948) - 8,033,948 Total other financing sources(uses) (8,033,948) (8,033,948) - 8,033,948 Change in fund balance (7,724,691) (7,724,691) (159,978) 7,564,713 Fund balance-Beginning of the year 7,724,691 7,724,691 2,004,966 (5,719,725) Fund balance-End of the year $ - $ - $ 1,844,988 $ 1,844,988 157 CITY OF TIGARD,OREGON CITY CENTER URBAN RENEWAL DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Property taxes $ 697,000 $ 697,000 $ 728,711 $ 31,711 Interest earnings 8,325 8,325 7,626 (699) Net increase(decrease)in investment fair value - - (22,508) (22,508) Miscellaneous revenues - - - - Total revenues 705,325 705,325 713,829 8,504 EXPENDITURES Debt service: Principal 255,000 288,500 288,300 200 Interest 170,025 177,525 177,231 294 Total expenditures 425,025 466,025 465,531 494 Change in fund balance before other financing sources(uses) 280,300 239,300 248,298 8,998 OTHER FINANCING SOURCES(USES) Transfer out (730,000) (730,000) - 730,000 Reserve for future expenditure (175,475) (134,475) - 134,475 Total other financing sources(uses) (905,475) (864,475) - 864,475 Change in fund balance (625,175) (625,175) 248,298 873,473 Fund balance-Beginning of the year 625,175 625,175 1,347,913 722,738 Fund balance-End of the year $ - $ - $ 1,596,211 $ 1,596,211 * Budget appropriation is made at the debt service program level 158 CITY OF TIGARD,OREGON TIGARD TRIANGLE DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Property taxes $ 798,000 $ 798,000 $ 1,037,434 $ 239,434 Interest earnings - - 6,482 6,482 Net increase(decrease)in investment fair value - - (22,253) (22,253) Total revenues 798,000 798,000 1,021,663 223,663 EXPENDITURES *Debt service: Principal - 352,800 352,700 100 Interest _ 5,600 136,300 136,260 40 Total expenditures _ 5,600 489,100 488,960 140 Change in fund balance before other financing sources(uses) 792,400 308,900 532,703 223,803 OTHER FINANCING SOURCES(USES) Transfer out (5,163,500) (5,163,500) - 5,163,500 Reserve for future expenditure (3,681,000) (3,197,500) - 3,197,500 Total other financing sources(uses) (8,844,500) (8,361,000) - 8,361,000 Change in fund balance (8,052,100) (8,052,100) 532,703 8,584,803 Fund balance-Beginning of the year 52,100 52,100 850,023 797,923 Fund balance-End of the year $ (8,000,000) $ (8,000,000) $ 1,382,726 $ 9,382,726 * Budget appropriation is made at the debt service program level 159 No content appears on this page by design. 160 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. Non-major Capital Projects Funds: 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 and Recreation System 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. 161 162 No content appears on this page by design. 163 CITY OF TIGARD,OREGON CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30,2022 Transportation Underground Street Transportation Facility Development Utility Maintenance SDC Fund Tax Fund _ Fund Fee Fund Fund ASSETS Cash and investments $ 909,738 $ - $ - $ 3,903,931 $ - Accounts receivable 517 6,303 224 399,680 1,313 Note receivable - - - - - Restricted cash and investments - 15,867,095 725,981 - 9,552,154 Total assets $ 910,255 $ 15,873,398 $ 726,205 $ 4,303,611 $ 9,553,467 LIABILITIES Accounts payable and accrued liabilities $ 27,231 $ - $ - $ 15,612 $ - Advances from other funds-interfund loans - - - - - Total liabilities 27,231 - - 15,612 - DEFERRED INFLOWS OF RESOURCES Special assessments/liens - 3,413 - - - FUND BALANCES(DEFICIT) Nonspendable-long-term note receivable - - - - - Restricted for: Street maintenance and improvements - 15,869,985 - - 9,553,467 Park development and improvements - - - - - Underground utilities - - 726,205 - - Urban development and improvements - - - - - Committed for: Street maintenance and improvements - - - 4,287,999 - Assigned to: City facilities 883,024 - - - - Unassigned - - - - - Total fund balances 883,024 15,869,985 726,205 4,287,999 9,553,467 Total liabilities,deferred inflows of resources and fund balance $ 910,255 $ 15,873,398 $ 726,205 $ 4,303,611 $ 9,553,467 164 Transportation Parks Parks Parks Capital City Center Capital Tigard Triangle Capital Bond SDC Improvement Improvement Improvement Fund Fund Fund Fund Fund Fund Total $ - $ - $ - $ - $ - $ - $ 4,813,669 23,290 - 3,844 38,880 - - 474,051 - - - - 500,000 500,000 163,383 799,399 11,764,560 1,863,659 4,203,110 7,623,123 52,562,464 $ 186,673 $ 799,399 $ 11,768,404 $ 1,902,539 $ 4,203,110 $ 8,123,123 $ 58,350,184 $ 259,910 $ - $ - $ 731,464 $ 307,395 $ - $ 1,341,612 - - - 757,432 228,869 986,301 259,910 - - 731,464 1,064,827 228,869 2,327,913 - - - - - 3,413 - - - - 500,000 500,000 - - 1,171,075 - - 26,594,527 - 799,399 11,768,404 - - - 12,567,803 - - - - - 726,205 - - - 3,138,283 7,394,254 10,532,537 - - - - - 4,287,999 - - - - - 883,024 (73,237) - - - - - (73,237) (73,237) 799,399 11,768,404 1,171,075 3,138,283 7,894,254 56,018,858 $ 186,673 $ 799,399 $ 11,768,404 $ 1,902,539 $ 4,203,110 $ 8,123,123 $ 58,350,184 165 CITY OF TIGARD,OREGON CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE for the year ended June 30,2022 Transportation Underground Street Transportation Facility Development Utility Maintenance SDC Fund Tax Fund Fund Fee Fund Fund REVENUES Charges for services $ - $ - $ 177,064 $ 3,419,098 $ - System development charges - 2,508,243 - - 933,792 Intergovernmental revenues - - - - - Interest earnings 5,953 100,587 4,282 21,151 61,539 Net increase(decrease) in investment fair value (17,448) (345,472) (12,098) (75,216) (214,455) Miscellaneous revenues 26 - - 204 - Total revenues (11,469) 2,263,358 169,248 3,365,237 780,876 EXPENDITURES Community development - - - - - Capital projects 163,338 - - 1,666,601 - Total expenditures 163,338 - - 1,666,601 - Change in fund balance before other financing sources(uses) (174,807) 2,263,358 169,248 1,698,636 780,876 OTHER FINANCING SOURCES(USES) Transfer in 119,525 - - - 104,700 Transfer out (45) (982,569) (1,167) (454,361) (603,353) Debt proceeds - - - - - Total other financing sources(uses) 119,480 (982,569) (1,167) (454,361) (498,653) Change in fund balance (55,327) 1,280,789 168,081 1,244,275 282,223 Fund balance-Beginning of the year 938,351 14,589,196 558,124 3,043,724 9,271,244 Fund balance-End of the year $ 883,024 $ 15,869,985 $ 726,205 $ 4,287,999 $ 9,553,467 166 Transportation Parks Parks Parks Capital City Center Capital Tigard Triangle Capital Bond SDC Improvement Improvement Improvement Fund Fund Fund Fund Fund Fund Total $ - $ - $ - $ 49,904 $ - $ - $ 3,646,066 968,312 - - - 4,410,347 51,160 - - 657,341 - - 708,501 4,600 78,881 - 18,514 - 295,507 - (11,554) (255,427) (11,986) (61,859) (78,870) (1,084,385) 148 - - 56 10 16 460 51,308 (6,954) 791,766 695,315 (43,335) (78,854) 7,976,496 1,228,445 - - 3,845,027 1,299,759 197,264 8,400,434 1,228,445 - - 3,845,027 1,299,759 197,264 8,400,434 (1,177,137) (6,954) 791,766 (3,149,712) (1,343,094) (276,118) (423,938) 834,523 - 180,000 2,685,552 338,789 - 4,263,089 - (15,491) (1,072,510) - - - (3,129,496) - - - - 1,019,700 8,292,700 9,312,400 834,523 (15,491) (892,510) 2,685,552 1,358,489 8,292,700 10,445,993 (342,614) (22,445) (100,744) (464,160) 15,395 8,016,582 10,022,055 269,377 821,844 11,869,148 1,635,235 3,122,888 (122,328) 45,996,803 $ (73,237) $ 799,399 $ 11,768,404 $ 1,171,075 $ 3,138,283 $ 7,894,254 $ 56,018,858 167 CITY OF TIGARD,OREGON FACILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ 14,175 $ 14,175 $ 5,953 $ (8,222) Net increase(decrease)in investment fair value - - (17,448) (17,448) Miscellaneous revenues - - 26 26 Total revenues 14,175 14,175 (11,469) (25,644) EXPENDITURES Capital projects 32,648,270 34,398,270 163,338 34,234,932 Total expenditures 32,648,270 34,398,270 163,338 34,234,932 Change in fund balance before other financing sources(uses) (32,634,095) (34,384,095) (174,807) 34,209,288 OTHER FINANCING SOURCES(USES) Transfer in 7,450,000 9,200,000 119,525 (9,080,475) Transfer out (45) (45) (45) - Reserve for future expenditures (1,489,280) (1,489,280) - 1,489,280 Total other financing sources(uses) 5,960,675 7,710,675 119,480 (7,591,195) Change in fund balance (26,673,420) (26,673,420) (55,327) 26,618,093 Fund balance-Beginning of the year 1,375,150 1,375,150 938,351 (436,799) Fund balance-End of the year $ (25,298,270) $ (25,298,270) $ 883,024 $ 26,181,294 168 CITY OF TIGARD,OREGON TRANSPORTATION DEVELOPMENT TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original _ Final Amounts budget REVENUES System development charges $ 2,047,119 $ 2,047,119 $ 2,508,243 $ 461,124 Interest earnings 190,425 190,425 100,587 (89,838) Net increase(decrease)in investment fair value - _ - (345,472) (345,472) Total revenues 2,237,544 2,237,544 2,263,358 25,814 EXPENDITURES OTHER FINANCING SOURCES(USES) Transfer out (2,172,986) (2,172,986) (982,569) 1,190,417 Reserve for future expenditures (15,004,236) (15,004,236) - 15,004,236 Total other financing sources(uses) (17,177,222) (17,177,222) (982,569) 16,194,653 Change in fund balance (14,939,678) (14,939,678) 1,280,789 16,220,467 Fund balance-Beginning of the year 14,939,678 14,939,678 14,589,196 (350,482) Fund balance-End of the year $ - $ - $ 15,869,985 $ 15,869,985 169 CITY OF TIGARD,OREGON UNDERGROUND UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 124,000 $ 124,000 $ 177,064 $ 53,064 Interest earnings 6,375 6,375 4,282 (2,093) Net increase(decrease)in investment fair value - - (12,098) (12,098) Total revenues 130,375 130,375 169,248 38,873 OTHER FINANCING SOURCES(USES) Transfer out (21,105) (21,105) (1,167) 19,938 Reserve for future expenditures (786,269) (786,269) - 786,269 Total other financing uses (807,374) (807,374) (1,167) 806,207 Change in fund balance (676,999) (676,999) 168,081 845,080 Fund balance-Beginning of the year 676,999 676,999 558,124 (118,875) Fund balance-End of the year $ - $ - $ 726,205 $ 726,205 170 CITY OF TIGARD,OREGON STREET MAINTENANCE FEE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,233,984 $ 3,233,984 $ 3,419,098 $ 185,114 Interest earnings 22,575 22,575 21,151 (1,424) Net increase(decrease)in investment fair value - - (75,216) (75,216) Miscellaneous revenues - - 204 204 Total revenues 3,256,559 3,256,559 3,365,237 108,678 EXPENDITURES Capital projects 2,840,000 2,840,000 1,666,601 1,173,399 Change in fund balance before other financing sources(uses) 416,559 416,559 1,698,636 1,282,077 OTHER FINANCING SOURCES(USES) Transfer out (454,361) (454,361) (454,361) - Reserve for future expenditures (2,848,397) (2,848,397) - 2,848,397 Total other financing sources(uses) (3,302,758) (3,302,758) (454,361) 2,848,397 Change in fund balance (2,886,199) (2,886,199) 1,244,275 4,130,474 Fund balance-Beginning of the year 2,886,199 2,886,199 3,043,724 157,525 Fund balance-End of the year $ - $ - $ 4,287,999 $ 4,287,999 171 CITY OF TIGARD,OREGON TRANSPORTATION SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts _budget REVENUES System development charges $ 701,855 $ 701,855 $ 933,792 $ 231,937 Interest earnings 108,000 108,000 61,539 (46,461) Net increase(decrease)in investment fair value - - (214,455) (214,455) Miscellaneous revenues - - - - Total revenues 809,855 809,855 780,876 (28,979) OTHER FINANCING SOURCES(USES) Transfer in - - 104,700 104,700 Transfer out (5,484,140) (5,488,912) (603,353) 4,885,559 Reserve for future expenditures (1,919,964) (1,966,692) - 1,966,692 Total other financing sources(uses) (7,404,104) (7,455,604) (498,653) 6,956,951 Change in fund balance (6,594,249) (6,645,749) 282,223 6,927,972 Fund balance-Beginning of the year 6,489,549 6,541,049 9,271,244 2,730,195 Fund balance-End of the year $ (104,700) $ (104,700) $ 9,553,467 $ 9,658,167 172 CITY OF TIGARD,OREGON PARKS CAPITAL FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues $ 151,945 $ (461,055) $ 51,160 $ 512,215 Miscellaneous revenues - - 148 148 Total revenues 151,945 (461,055) 51,308 512,363 EXPENDITURES Capital projects 9,766,945 10,299,945 1,228,445 9,071,500 Change in fund balance before other financing sources(uses) (9,615,000) (10,761,000) (1,177,137) 9,583,863 OTHER FINANCING SOURCES(USES) Transfer in 8,977,500 10,123,500 834,523 (9,288,977) Reserve for future expenditures (12,500) (12,500) - 12,500 Total other financing sources(uses) 8,965,000 10,111,000 834,523 (9,276,477) Change in fund balance (650,000) (650,000) (342,614) 307,386 Fund balance-Beginning of the year 650,000 650,000 269,377 (380,623) Fund balance-End of the year $ - $ - $ (73,237) $ (73,237) 173 CITY OF TIGARD,OREGON PARKS BOND FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 4,600 $ 4,600 Net increase(decrease)in investment fair value - - (11,554) (11,554) Total revenues - - (6,954) (6,954) OTHER FINANCING SOURCES(USES) Transfer out (834,185) (834,185) (15,491) 818,694 Reserve for future expenditures 7,685 (2,315) - 2,315 Total other financing uses (826,500) (836,500) (15,491) 821,009 Change in fund balance (826,500) (836,500) (22,445) 814,055 Fund balance-Beginning of the year 826,500 836,500 821,844 (14,656) Fund balance-End of the year $ - $ - $ 799,399 $ 799,399 174 CITY OF TIGARD,OREGON PARKS SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES System development charges $ 1,495,466 $ 1,495,466 $ 968,312 $ (527,154) Interest earnings 158,325 158,325 78,881 (79,444) Net increase(decrease)in investment fair value - - (255,427) (255,427) Total revenues 1,653,791 1,653,791 791,766 (862,025) OTHER FINANCING SOURCES(USES) Transfer in 180,000 180,000 180,000 - Transfer out (5,509,700) (6,728,700) (1,072,510) 5,656,190 Reserve for future expenditures (4,122,915) (3,161,915) - 3,161,915 Total other financing sources(uses) (9,452,615) (9,710,615) (892,510) 8,818,105 Change in fund balance (7,798,824) (8,056,824) (100,744) 7,956,080 Fund balance-Beginning of the year 7,798,824 8,056,824 11,869,148 3,812,324 Fund balance-End of the year $ - $ - $ 11,768,404 $ 11,768,404 175 CITY OF TIGARD,OREGON TRANSPORTATION CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues $ 1,864,279 $ 2,306,667 $ 657,341 $ (1,649,326) Miscellaneous revenues - - 56 56 Charges for services - - 49,904 49,904 Net increase(decrease)in investment fair value - - (11,986) (11,986) Total revenues 1,864,279 2,306,667 695,315 (1,611,352) EXPENDITURES Capital projects 13,269,500 13,725,660 3,845,027 9,880,633 Change in fund balance before other financing sources(uses) (11,405,221) (11,418,993) (3,149,712) 8,269,281 OTHER FINANCING SOURCES(USES) Transfer in 11,180,221 11,193,993 2,685,552 (8,508,441) Reserve for future expenditures (1,722,526) (1,722,526) - _ 1,722,526 Total other financing sources 9,457,695 9,471,467 2,685,552 (6,785,915) Change in fund balance (1,947,526) (1,947,526) (464,160) 1,483,366 Fund balance-Beginning of the year 1,947,526 1,947,526 1,635,235 (312,291) Fund balance-End of the year $ - $ - $ 1,171,075 $ 1,171,075 176 CITY OF TIGARD,OREGON CITY CENTER CAPITAL IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 18,514 $ 18,514 Net increase(decrease)in investment fair value - - (61,859) (61,859) Miscellaneous revenues - - 10 10 Total revenues - - (43,335) (43,335) EXPENDITURES * Capital projects 4,588,000 4,787,000 1,299,759 3,487,241 Change in fund balance before other financing sources(uses) (4,588,000) (4,787,000) (1,343,094) 3,443,906 OTHER FINANCING SOURCES(USES) Transfer in 2,301,000 2,387,000 338,789 (2,048,211) Debt proceeds - - 1,019,700 1,019,700 Reserve for future expenditures (25,600) (25,600) - 25,600 Total other financing sources 2,275,400 2,361,400 1,358,489 (1,002,911) Change in fund balance (2,312,600) (2,425,600) 15,395 2,440,995 Fund balance-Beginning of the year 2,312,600 2,425,600 3,880,320 1,454,720 Fund balance-End of the year $ - $ - 3,895,715 $ 3,895,715 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 $ 3,138,283 * For budgetary purposes expenditures are appropriated as capital projects, however on the GAAP statements non-capital transactions are recorded as program expenditures 177 CITY OF TIGARD,OREGON TIGARD TRIANGLE CAPITAL IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Net increase(decrease)in investment fair value $ - $ - $ (78,870) $ (78,870) Miscellaneous revenues - - 16 16 Total revenues - - (78,854) (78,854) EXPENDITURES * Capital projects 2,190,000 2,190,000 197,264 1,992,736 Change in fund balance before other financing sources(uses) (2,190,000) (2,190,000) (276,118) 1,913,882 OTHER FINANCING SOURCES(USES) Transfer in 5,163,500 5,163,500 - (5,163,500) Debt proceeds - - 8,292,700 8,292,700 Transfer out (2,973,500) (2,973,500) - 2,973,500 Total other financing sources 2,190,000 2,190,000 8,292,700 6,102,700 Change in fund balance - - 8,016,582 8,016,582 Fund balance-Beginning of the year - - 106,541 106,541 Fund balance-End of the year $ - $ - 8,123,123 $ 8,123,123 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 $ 7,894,254 * For budgetary purposes expenditures are appropriated as capital projects, however on the GAAP statements non-capital transactions are recorded as program expenditures 178 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 or 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. 179 180 CITY OF TIGARD,OREGON SANITARY SEWER FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts _budget REVENUES Charges for services $ 3,412,921 $ 3,412,921 $ 4,129,639 $ 716,718 Connection fees 92,200 92,200 104,541 12,341 Interest earnings 82,725 82,725 77,737 (4,988) Net increase(decrease)in investment fair value - - (205,602) (205,602) Miscellaneous revenues 42,100 42,100 74,110 32,010 Total revenues 3,629,946 3,629,946 4,180,425 550,479 EXPENDITURES Public works 2,654,196 2,692,196 2,340,761 351,435 Capital projects 100,000 100,000 12,587 87,413 Total expenditures 2,754,196 2,792,196 2,353,348 438,848 Change in fund balance before other financing sources(uses) 875,750 837,750 1,827,077 989,327 OTHER FINANCING SOURCES(USES) Transfer in - - 1,081 1,081 Transfer out (1,463,846) (1,467,146) (219,687) 1,247,459 Contingency (200,000) (162,000) - 162,000 Reserve for future expenditures (6,804,490) (6,804,490) - 6,804,490 Total other financing sources(uses) (8,468,336) (8,433,636) (218,606) 8,215,030 Change in fund balance (7,592,586) (7,595,886) 1,608,471 9,204,357 Fund balance-Beginning of the year 7,592,586 7,595,886 7,943,378 347,492 Fund balance-End of the year $ - $ - $ 9,551,849 $ 9,551,849 181 CITY OF TIGARD,OREGON SANITARY SEWER FUND RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30,2022 Operating and Non-Operating Expenditures/ Revenues Expenses Budgetary basis $ 4,181,506 $ 2,353,348 Unavailable revenue (844) - Contributed capital 298,998 - Interfund loan payments - - Loss on disposal of capital assets - - Compensated absences - (5,873) Expenditures capitalized - (2,363) Depreciation expense - 850,142 Net OPEB obligation _ - 3,170 Operating and non-operating revenue and expenses-GAAP basis $ 4,479,660 $ 3,198,424 182 CITY OF TIGARD,OREGON STORMWATER FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 5,653,512 $ 5,653,512 $ 5,603,506 $ (50,006) Licenses and permits - - 43,510 43,510 Interest earnings 104,925 104,925 52,227 (52,698) Net increase(decrease)in investment fair value - - (165,253) (165,253) Miscellaneous revenues 5,000 5,000 25,188 20,188 Total revenues 5,763,437 5,763,437 5,559,178 (204,259) EXPENDITURES Public works 3,828,774 3,848,774 3,219,669 629,105 Capital projects 4,777,500 4,805,500 845,779 3,959,721 Total expenditures 8,606,274 8,654,274 4,065,448 4,588,826 Change in fund balance before other financing sources(uses) (2,842,837) (2,890,837) 1,493,730 4,384,567 OTHER FINANCING USES Transfer in 1,395,000 1,395,000 153,147 (1,241,853) Transfer out (347,528) (353,228) (143,258) 209,970 Contingency (275,000) (255,000) - 255,000 Reserve for future expenditures (5,566,176) (5,566,176) - 5,566,176 Total other financing uses (4,793,704) (4,779,404) 9,889 4,789,293 Change in fund balance (7,636,541) (7,670,241) 1,503,619 9,173,860 Fund balance-Beginning of the year 7,636,541 7,670,241 7,288,801 (381,440) Fund balance-End of the year $ - $ - $ 8,792,420 $ 8,792,420 183 CITY OF TIGARD,OREGON WATER QUALITY/QUANTITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 2,000 $ 2,000 $ - $ (2,000) Connection fees - - - - Interest earnings 19,350 19,350 8,553 (10,797) Net increase(decrease)in investment fair value - - _ (26,143) (26,143) Total revenues 21,350 21,350 (17,590) (38,940) OTHER FINANCING SOURCES(USES) Transfer out (340,000) (340,000) - 340,000 Reserve for future expenditures (765,913) (765,913) - _ 765,913 Total other financing sources(uses) (1,105,913) (1,105,913) - 1,105,913 Change in fund balance (1,084,563) (1,084,563) (17,590) 1,066,973 Fund balance-Beginning of the year 1,084,563 1,084,563 1,331,305 246,742 Fund balance-End of the year $ - $ - $ 1,313,715 $ 1,313,715 184 CITY OF TIGARD,OREGON STORMWATER FUNDS RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30,2022 Operating and Non-operating Expenditures/ Revenues Expenses Stormwater $ 5,712,325 $ 4,208,706 Water Quality/Quantity (17,590) - Total,budgetary basis 5,694,735 4,208,706 Contributed capital 232,106 - Cornpensated absences - (28,998) Expenditures capitalized - (612,189) Depreciation expense - 730,779 Net OPEB obligation - 4,523 Operating and non-operating revenue and expenses-GAAP basis $ 5,926,841 $ 4,302,821 185 CITY OF TIGARD,OREGON WATER FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 26,197,790 $ 26,197,790 $ 24,065,642 $ (2,132,148) Interest earnings 375,525 375,525 314,163 (61,362) Net increase(decrease)in investment fair value - - (1,077,708) (1,077,708) Miscellaneous revenues 50,000 50,000 76,072 26,072 Total revenues 26,623,315 26,623,315 23,378,169 (3,245,146) EXPENDITURES Public works 10,646,000 10,897,400 9,253,758 1,643,642 Total expenditures 10,646,000 10,897,400 9,253,758 1,643,642 Change in fund balance before other financing sources(uses) 15,977,315 15,725,915 14,124,411 (1,601,504) OTHER FINANCING SOURCES(USES) Transfer in 25,000 25,000 - (25,000) Transfer out (22,320,789) (22,365,289) (8,868,392) 13,496,897 Contingency (475,000) (333,000) - 333,000 Reserve for future expenditures (31,095,757) (31,095,757) - 31,095,757 Total other financing sources(uses) (53,866,546) (53,769,046) (8,868,392) 44,900,654 Change in fund balance (37,889,231) (38,043,131) 5,256,019 43,299,150 Fund balance-Beginning of the year 37,914,231 38,068,131 48,509,172 10,441,041 Fund balance-End of the year $ 25,000 $ 25,000 $ 53,765,191 $ 53,740,191 186 CITY OF TIGARD,OREGON WATER SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES System development charges $ 1,870,435 $ 1,870,435 $ 2,355,333 $ 484,898 Interest earnings 193,650 193,650 109,104 (84,546) fair value - - (356,919) (356,919) Total revenues 2,064,085 2,064,085 2,107,518 43,433 OTHER FINANCING SOURCES(USES) Transfer out (7,770,538) (7,770,538) (936,263) 6,834,275 Reserve for future expenditures _ (7,788,132) (7,788,132) - 7,788,132 Total other financing sources(uses) _ (15,558,670) (15,558,670) (936,263) 14,622,407 Change in fund balance (13,494,585) (13,494,585) 1,171,255 14,665,840 Fund balance-Beginning of the year 13,494,585 13,494,585 16,052,039 2,557,454 Fund balance-End of the year $ - $ - $ 17,223,294 $ 17,223,294 187 CITY OF TIGARD,OREGON WATER CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Net increase(decrease)in investment fair value $ - $ - $ (22,367) $ (22,367) Miscellaneous revenues - - 86 86 Total revenues - - (22,281) (22,281) EXPENDITURES Capital projects - - 3,071,156 (3,071,156) Total expenditures - - 3,071,156 (3,071,156) Change in fund balance before other financing sources(uses) - - (3,093,437) (3,093,437) OTHER FINANCING SOURCES(USES) Transfer in 15,090,000 15,126,000 2,057,467 (13,068,533) Reserve for future expenditures (1,850,125) (1,850,125) - 1,850,125 Total other financing sources(uses) 13,239,875 13,275,875 2,057,467 (11,218,408) Change in fund balance 13,239,875 13,275,875 (1,035,970) (14,311,845) Fund balance-Beginning of the year 1,850,125 1,850,125 1,561,811 (288,314) Fund balance-End of the year $ 15,090,000 $ 15,126,000 $ 525,841 $ (14,600,159) 188 CITY OF TIGARD,OREGON WATER DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 13,809 $ 13,809 Net increase(decrease)in investment fair value - - (34,674) (34,674) Total revenues - - (20,865) (20,865) EXPENDITURES Debt service: Principal 3,532,100 3,532,100 3,532,023 77 Interest 3,672,264 3,672,264 3,670,607 1,657 Total expenditures 7,204,364 7,204,364 7,202,630 1,734 Change in fund balance before other financing sources(uses) (7,204,364) (7,204,364) (7,223,495) (19,131) OTHER FINANCING SOURCES(USES) Transfer in 7,213,000 7,213,000 7,202,630 (10,370) Reserve for future expenditures _ (7,208,579) (7,208,579) - 7,208,579 Total other financing sources(uses) _ 4,421 4,421 7,202,630 7,198,209 Change in fund balance (7,199,943) (7,199,943) (20,865) 7,179,078 Fund balance-Beginning of the year 7,199,943 7,199,943 2,444,525 (4,755,418) Fund balance-End of the year $ - $ - $ 2,423,660 $ 2,423,660 189 CITY OF TIGARD,OREGON WATER FUNDS RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30,2022 Operating and Non-operating Expenditures/ Revenues Expenses Water $ 23,378,169 $ 18,122,150 Water SDC 2,107,518 936,263 Water CIP 2,035,186 3,071,156 Water Debt Service 7,181,765 7,202,630 Total,budgetary basis 34,702,638 29,332,199 Unavailable revenue 14,764 - Contributed capital 107,675 - Loss on investment in joint venture 32,346 - Elimination of water interfund transfers (9,260,097) (9,260,097) Compensated absences - 9,265 Expenditures capitalized - (2,980,675) Principal payments - (3,532,023) Accrued interest - (384,549) Amortization of bond premium - 39,583 Depreciation expense - 5,294,023 Net OPEB obligation - 5,734 Operating and non-operating revenue and expenses-GAAP basis $ 25,597,326 $ 18,523,460 190 CITY OF TIGARD,OREGON ENTERPRISE FUNDS RECONCILIATION OF BUDGETARY FUND BALANCE TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET POSITION June 30,2022 Total Total Total Sanitary Sewer Stormwater Water Sanitary Sewer Fund $ 9,551,849 $ - $ - Stormwater Fund - 8,792,420 - Water Quality/Quantity Fund - 1,313,715 - Water Fund - - 53,765,191 Water SDC Fund - - 17,223,294 Water CIP Fund - - 525,841 Water Debt Service Fund - - 2,423,660 Fund balance-budget basis 9,551,849 10,106,135 73,937,986 Adjustments from budgetary basis to generally accepted accounting principles basis: Capital assets,net 18,616,636 15,190,556 198,310,465 Investment in joint venture - - 2,206,220 Sewer funds payable (21,759) - - Assets held for resale 185,021 260,021 - Unavailable revenue 3,663 - 14,764 Compensated absences (26,505) (8,759) (47,274) Long-term debt - - (123,565,629) Accrued interest payable - - (1,507,517) Interfund loans 102,320 - - Deferred Outflow OPEB 1,522 2,173 2,754 Deferred Outflow bond refunding - - 3,567,664 Deferred Inflow OPEB (6,790) (9,697) (12,286) OPEB liability (29,441) (42,048) (53,273) Total Net Position-GAAP basis $ 28,376,516 $ 25,498,381 $ 152,853,874 191 No content appears on this page by design. 192 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. 193 194 No content appears on this page by design. 195 CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION June 30, 2022 Central Public Works Services Administration Fund Fund ASSETS Cash and investments $ 4,485,846 $ 1,066,071 Accounts receivable 12 - Prepaids 158,142 - Inventory - - Total assets 4,644,000 1,066,071 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to OPEB 11,596 5,280 LIABILITIES Accounts payable and accrued liabilities 500,553 60,628 Customer deposits - - Unearned revenue 16,500 - Accrued compensated absences 454,924 51,900 Net OPEB obligation 224,337 102,141 Total liabilities 1,196,314 214,669 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to OPEB 51,737 23,556 NET POSITION Net position, unrestricted $ 3,407,545 $ 833,126 196 Public Works Fleet/Property Engineering Management Insurance Fund Fund Fund Total $ 4,819,744 $ 2,169,933 $ 1,512,481 $ 14,054,075 920 932 - 21,213 - 179,355 1,276 - 1,276 4,819,744 2,192,422 1,513,401 14,235,638 10,407 2,320 - 29,603 157,111 132,086 37,484 887,862 173,742 - - 173,742 - 16,500 91,977 22,385 1,624 622,810 201,325 44,874 - 572,677 624,155 199,345 39,108 2,273,591 46,430 10,349 - 132,072 $ 4,159,566 $ 1,985,048 $ 1,474,293 $ 11,859,578 197 CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION for the year ended June 30, 2022 Central Public Works Services Administration Fund Fund OPERATING REVENUES Charges for services $ 12,372,031 $ 2,514,609 Miscellaneous revenues 22,147 1,670 Total operating revenues 12,394,178 2,516,279 OPERATING EXPENSES Salaries and wages 7,149,430 1,194,559 Contracted services 2,850,464 26,084 General, administrative and other 3,336,562 1,027,277 Total operating expenses 13,336,456 2,247,920 Operating income (loss) (942,278) 268,359 NONOPERATING REVENUE Interest revenue 36,706 3,974 Net increase (decrease) in investment fair value (55,389) (6,980) Intergovernmental revenues - 13,339 Total non-operating revenue (18,683) 10,333 Income (loss) before contributions and transfers (960,961) 278,692 CONTRIBUTIONS AND TRANSFERS Transfer in 1,025,710 32,446 Transfer out - (5,000) Change in net position 64,749 306,138 Net position - Beginning of year 3,342,796 526,988 Net position - End of year $ 3,407,545 $ 833,126 198 Public Works Fleet/Property Engineering Management Insurance Fund Fund Fund Total $ 5,150,478 $ 2,779,214 $ - $ 22,816,332 27,128 73,900 51,511 _ 176,356 5,177,606 2,853,114 51,511 22,992,688 2,256,304 1,003,674 28,492 11,632,459 264,326 349,796 - 3,490,670 1,396,277_ 1,000,819 105,390 6,866,325 3,916,907 2,354,289 133,882 21,989,454 1,260,699 498,825 (82,371) 1,003,234 16,611 7,982 10,126 75,399 (39,581) (20,990) (31,335) (154,275) 25,000 - - 38,339 2,030 (13,008) (21,209) (40,537) 1,262,729 485,817 (103,580) 962,697 667,710 - - 1,725,866 (1,000) - (6,000) 1,930,439 484,817 (103,580) 2,682,563 2,229,127 1,500,231 1,577,873 9,177,015 $ 4,159,566 $ 1,985,048 $ 1,474,293 $ 11,859,578 199 CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS for the year ended June 30, 2022 Central Services Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 12,378,280 Payments to suppliers (6,079,472) Payments to employees (7,129,886) Other receipts 18,597 Net cash provided (used) by operating activities (812,481) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Intergovernmental revenues - Transfer from other funds 1,025,710 Transfer to other funds Net cash flows from noncapital financing activities 1,025,710 CASH FLOWS FROM INVESTING ACTIVITIES Investment loss (18,683) Net increase in cash and investments 194,546 Cash and investments--beginning of the year 4,291,300 Cash and investments--end of the year $ 4,485,846 RECONCILIATION OF OPERATING INCOME (LOSS)TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss) $ (942,278) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities CHANGE IN ASSETS AND LIABILITIES Receivables 6,249 Prepaids 163,294 Inventory - Accounts payable (55,740) Unearned revenue (3,552) Customer deposits - Accrued compensated absences (4,594) Net OPEB Obligation 24,140 Net cash provided (used) by operating activities $ (812,481) 200 Public Works Public Works Fleet/Property Administration Engineering Management Insurance Fund Fund Fund Fund Total $ 2,514,609 $ 5,153,474 $ 2,758,001 $ - $ 22,804,364 (1,044,244) (1,609,055) (1,324,769) (70,194) (10,127,734) (1,199,741) (2,240,026) (1,032,380) (27,799) (11,629,832) 1,670 27,128 73,900 51,582 172,877 272,294 1,331,521 474,752 (46,411) 1,219,675 13,339 25,000 - - 38,339 32,446 667,710 - - 1,725,866 (5,000) - (1,000) - (6,000) 40,785 692,710 (1,000) - 1,758,205 (3,006) (22,970) (13,008) (21,209) (78,876) 310,073 2,001,261 460,744 (67,620) 2,899,004 755,998 2,818,483 1,709,189 1,580,101 11,155,071 $ 1,066,071 $ 4,819,744 $ 2,169,933 $ 1,512,481 $ 14,054,075 $ 268,359 $ 1,260,699 $ 498,825 $ (82,371) $ 1,003,234 34,383 - 71 40,703 - - (21,213) 142,081 - - 3,124 - 3,124 9,117 51,548 22,722 35,196 62,843 - - - - (3,552) - (31,387) - - (31,387) (16,173) (5,387) (33,537) 693 (58,998) 10,991 21,665 4,831 - 61,627 $ 272,294 $ 1,331,521 $ 474,752 $ (46,411) $ 1,219,675 201 CITY OF TIGARD,OREGON CENTRAL SERVICES FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 12,428,617 $ 12,628,617 $ 12,372,031 $ (256,586) Interest earnings - - 36,706 36,706 Net increase(decrease)in investment fair value - - (55,389) (55,389) Miscellaneous revenues 90,000 90,000 22,147 (67,853) Total revenues 12,518,617 12,718,617 12,375,495 (343,122) EXPENDITURES Policy and administration 14,537,452 15,419,002 13,312,316 2,106,686 Change in fund balance before other financing sources(uses) (2,018,835) (2,700,385) (936,821) 1,763,564 OTHER FINANCING SOURCES(USES) Transfer in 1,025,710 1,025,710 1,025,710 - Contingency (500,000) (171,600) - 171,600 Reserve for future expenditures (1,328,740) (1,328,740) - 1,328,740 Total other financing sources(uses) (803,030) (474,630) 1,025,710 1,500,340 Change in fund balance (2,821,865) (3,175,015) 88,889 3,263,904 Fund balance-Beginning of the year 2,821,865 3,136,865 3,583,134 446,269 Fund balance-End of the year $ - $ (38,150) 3,672,023 $ 3,710,173 Reconciliation of budgetary fund balance to GAAP basis net position: Net OPEB liability (224,337) Deferred Outflow OPEB 11,596 Deferred Inflow OPEB (51,737) Total net position,GAAP basis $ 3,407,545 202 CITY OF TIGARD,OREGON PUBLIC WORKS ADMINISTRATION FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 2,511,309 $ 2,511,309 $ 2,514,609 $ 3,300 Intergovernmental revenues - - 13,339 13,339 Interest earnings - - 3,974 3,974 Net increase(decrease)in investment fair value - - (6,980) (6,980) Miscellaneous revenues - - 1,670 1,670 Total revenues 2,511,309 2,511,309 2,526,612 15,303 EXPENDITURES Policy and administration 2,533,386 2,533,386 2,236,929 296,457 Change in fund balance before other financing sources(uses) (22,077) (22,077) 289,683 311,760 OTHER FINANCING SOURCES(USES) Transfer in 32,446 32,446 32,446 - Transfer out (5,000) (5,000) (5,000) - Contingency (125,000) (125,000) - 125,000 Reserve for future expenditures (372,972) (372,972) - 372,972 Total other financing sources(uses) (470,526) (470,526) 27,446 497,972 Change in fund balance (492,603) (492,603) 317,129 809,732 Fund balance-Beginning of the year 492,603 492,603 636,414 143,811 Fund balance-End of the year $ - $ - 953,543 $ 953,543 Reconciliation of budgetary fund balance to GAAP basis net position: Net OPEB liability (102,141) Deferred Outflow OPEB 5,280 Deferred Inflow OPEB (23,556) Total net position,GAAP basis $ 833,126 203 CITY OF TIGARD,OREGON PUBLIC WORKS ENGINEERING FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 4,290,918 $ 4,290,918 $ 5,150,478 $ 859,560 Intergovernmental revenues 153,369 153,369 25,000 (128,369) Interest earnings - - 16,611 16,611 Net increase(decrease)in investment fair value - - (39,581) (39,581) Miscellaneous revenues 5,094 5,094 27,128 22,034 Total revenues 4,449,381 4,449,381 5,179,636 730,255 EXPENDITURES Policy and administration 4,586,633 4,751,633 3,895,242 856,391 Change in fund balance before other financing sources(uses) (137,252) (302,252) 1,284,394 1,586,646 OTHER FINANCING SOURCES(USES) Transfer in 667,710 667,710 667,710 - Contingency (150,000) (90,000) - 90,000 Reserve for future expenditures (2,536,447) (2,536,447) - 2,536,447 Total other financing sources(uses) (2,018,737) (1,958,737) 667,710 2,626,447 Change in fund balance (2,155,989) (2,260,989) 1,952,104 4,213,093 Fund balance-Beginning of the year 2,155,989 2,260,989 2,444,810 183,821 Fund balance-End of the year $ - $ - 4,396,914 $ 4,396,914 Reconciliation of budgetary fund balance to GAAP basis net position: Net OPEB liability (201,325) Deferred Outflow OPEB 10,407 Deferred Inflow OPEB (46,430) Total net position,GAAP basis $ 4,159,566 204 CITY OF TIGARD,OREGON FLEET/PROPERTY MANAGEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance Actual with final Original Final Amounts _budget REVENUES Charges for services $ 2,753,660 $ 2,753,660 $ 2,779,214 $ 25,554 Interest earnings - - 7,982 7,982 Net increase(decrease)in investment fair value - - (20,990) (20,990) Miscellaneous revenues 5,000 5,000 73,900 68,900 Total revenues 2,758,660 2,758,660 2,840,106 81,446 EXPENDITURES Policy and administration 2,790,658 2,790,658 2,349,458 441,200 Change in fund balance before other financing sources(uses) (31,998) (31,998) 490,648 522,646 OTHER FINANCING SOURCES(USES) Transfer out (1,000) (1,000) (1,000) - Contingency (125,000) (125,000) - 125,000 Reserve for future expenditures (807,013) (807,013) - 807,013 Total other financing sources(uses) (933,013) (933,013) (1,000) 932,013 Change in fund balance (965,011) (965,011) 489,648 1,454,659 Fund balance-Beginning of the year 965,011 965,011 1,548,303 583,292 Fund balance-End of the year $ - $ - 2,037,951 $ 2,037,951 Reconciliation of budgetary fund balance to GAAP basis net position: Net OPEB liability (44,874) Deferred Outflow OPEB 2,320 Deferred Inflow OPEB (10,349) Total net position,GAAP basis $ 1,985,048 205 CITY OF TIGARD,OREGON INSURANCE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2022 Budgeted Amounts Variance _ Actual with final Original Final _ Amounts budget REVENUES Interest earnings $ 19,875 $ 19,875 $ 10,126 $ (9,749) Net increase(decrease)in investment fair value - - (31,335) (31,335) Miscellaneous revenues 39,000 39,000 51,511 12,511 Total revenues 58,875 58,875 30,302 (28,573) EXPENDITURES Policy and administration 244,561 244,561 133,882 110,679 Total expenditures 244,561 244,561 133,882 110,679 Change in fund balance before other financing sources(uses) (185,686) (185,686) (103,580) 82,106 OTHER FINANCING SOURCES(USES) Contingency (25,000) (25,000) - 25,000 Reserve for future expenditures (1,174,247) (1,174,247) - 1,174,247 Total other financing sources(uses) (1,199,247) (1,199,247) - 1,199,247 Change in fund balance (1,384,933) (1,384,933) (103,580) 1,281,353 Fund balance-Beginning of the year 1,384,933 1,384,933 1,577,873 192,940 Fund balance-End of the year $ - $ - $ 1,474,293 $ 1,474,293 206 Other Schedules 207 208 CITY OF TIGARD,OREGON SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS For the fiscal year ended June 30,2022 Interest Transactions Original Outstanding Matured/ Outstanding Issue June 30,2021 Additions Called Paid Matured Paid June 30,2022 General Obligation Bonds Issued February 3,2011 $ 8,655,000 $ 1,735,000 $ - $ 850,000 $ (850,000) $ 885,000 $ 52,400 $ (52,400) Issued April 28,2020 5,981,000 5,642,000 - 441,000 (441,000) 5,201,000 76,590 (76,590) Issued February 3,2011 17,000,000 4,570,000 - 845,000 (845,000) 3,725,000 187,650 (187,650) $ 11,947,000 $ - $ 2,136,000 $ (2,136,000) $ 9,811,000 $ 316,640 $ (316,640) Full Faith&Credit Bonds Issued September 1,2019 $ 5,929,000 $ 5,688,000 $ - $ 248,000 $ (248,000) $ 5,440,000 $ 158,630 $ (158,630) Issued October 1,2021 4,624,600 - 4,624,600 187,200 (187,200) 4,437,400 55,623 (55,623) $ 5,688,000 $ 4,624,600 $ 435,200 $ (435,200) $ 9,877,400 $ 214,253 $ (214,253) Water Revenue Bonds Issued May 1,2012 $97,720,000 $ 4,640,000 $ - $ 2,275,000 $ (2,275,000) $ 2,365,000 $ 140,100 $ (140,100) Issued May 1,2015 30,810,000 29,955,000 - 190,000 (190,000) 29,765,000 1,476,300 (1,476,300) Issued November 3,2020 86,575,000 86,575,000 - 950,000 (950,000) 85,625,000 2,010,047 (2,010,047) $ 121,170,000 $ - $ 3,415,000 $ (3,415,000) $ 117,755,000 $3,626,447 $(3,626,447) Long-term Note Issued December 1,2011 $ 2,398,000 $ 1,472,023 $ - $ 117,023 $ (117,023) $ 1,355,000 $ 44,161 $ (44,161) Urban Renewal Bonds Issued October 1,2021 $ 4,687,800 $ - $ 4,687,800 $ 205,800 $ (205,800) $ 4,482,000 $ 89,810 $ (89,810) 209 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF GENERAL OBLIGATION BONDS For the fiscal year ended June 30,2022 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 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 $ 9,811,000 $ 607,228 $ 885,000 $ 17,700 $ 5,201,000 $ 192,303 $ 3,725,000 $ 397,225 210 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF FULL FAITH&CREDIT BONDS For the fiscal year ended June 30,2022 Total Debt Series 2019A Series 2019B Series 2021A Series 2021B Service Requirement Issued:August 29,2019 Issued:August 29,2019 Issued:September 29,2021 Issued:September 29,2021 Fiscal Year Total Total 2.36% 2.99% 1.69% 2.14% of Maturity Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2023 $ 535,700 $ 231,130 $ 84,000 $ 40,922 $ 170,000 $ 110,809 $ 221,000 $ 58,440 $ 60,700 $ 20,959 2024 548,800 219,031 86,000 38,940 176,000 105,726 224,800 54,705 62,000 19,660 2025 560,900 206,613 88,000 36,910 181,000 100,464 228,500 50,906 63,400 18,333 2026 573,100 193,908 90,000 34,834 186,000 95,052 232,400 47,045 64,700 16,977 2027 586,400 180,910 92,000 32,710 192,000 89,491 236,300 43,117 66,100 15,592 2028 600,800 167,590 95,000 30,538 198,000 83,750 240,300 39,124 67,500 14,178 2029 613,400 153,921 97,000 28,296 203,000 77,830 244,400 35,062 69,000 12,733 2030 626,900 139,955 99,000 26,007 209,000 71,760 248,500 30,932 70,400 11,256 2031 641,700 125,664 101,000 23,671 216,000 65,511 252,700 26,732 72,000 9,750 2032 656,500 111,011 104,000 21,287 222,000 59,053 257,000 22,462 73,500 8,209 2033 671,400 96,003 106,000 18,833 229,000 52,415 261,300 18,119 75,100 6,636 2034 2,558,500 80,630 692,000 16,332 1,524,000 45,566 265,800 13,703 76,700 5,029 2035 348,500 12,598 - - - - 270,200 9,210 78,300 3,388 2036 354,800 6,356 - - - - 274,800 4,644 80,000 1,712 $ 9,877,400 $ 1,925,320 $ 1,734,000 $ 349,280 $ 3,706,000 $ 957,427 $ 3,458,000 $ 454,201 $ 979,400 $ 164,412 211 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF WATER REVENUE BONDS For the fiscal year ended June 30,2022 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 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 - - $ 117,755,000 $ 54,871,765 $ 2,365,000 $ 47,300 $29,765,000 $29,941,500 $ 85,625,000 $ 24,882,965 212 CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF SAFE DRINKING WATER REVOLVING LOAN FUNDS For the fiscal year ended June 30, 2022 Issued: December 1, 2011 Fiscal Year 3.00% of Maturity Principal Interest 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 $ 1,355,001 $ 230,054 213 CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF URBAN RENEWAL AND REDEVELOPMENT BONDS For the fiscal year ended June 30, 2022 Issued: September 29, 2021 Fiscal Year 2.85% of Maturity Principal Interest 2023 $ 265,000 $ 127,737 2024 272,500 120,185 2025 280,300 112,418 2026 288,300 104,430 2027 296,500 96,213 2028 305,000 87,763 2029 313,700 79,070 2030 322,600 70,130 2031 331,800 60,936 2032 341,200 51,480 2033 351,000 41,755 2034 361,000 31,752 2035 371,300 21,463 2036 381,800 10,881 $ 4,482,000 $ 1,016,213 214 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS WATER FUND For the fiscal year ended June 30,2022 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 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 - - - - $ 119,110,001 $ 55,101,819 $ 2,365,000 $ 47,300 $ 29,765,000 $ 29,941,500 $ 85,625,000 $ 24,882,965 $ 1,355,001 $230,054 215 No content appears on this page by design. 216 Statistical Section This part of the City of Tigard's comprehensive annual 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. 216-232 Revenue Capacity—These schedules contain information to help the reader assess the city's most significant local revenue source, property taxes. 233-238 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. 239-247 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. 248-250 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. 251-255 217 218 No content appears on this page by design. 219 CITY OF TIGARD,OREGON NET POSITION BY COMPONENT for the last ten fiscal years (accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year 2013 2014(Restated) 2015 GOVERNMENTAL ACTIVITIES Net investment in capital assets $ 181,196,030 $ 185,242,899 $ 189,748,234 Restricted 12,041,725 10,941,117 12,376,136 Unrestricted 14,311,478 13,596,004 13,031,415 Total governmental activities net position 207,549,233 209,780,020 215,155,785 BUSINESS-TYPE ACTIVITIES Net investment in capital assets 74,044,470 79,627,259 84,867,665 Restricted 9,683,852 10,551,442 11,250,300 Unrestricted 18,523,616 16,721,508 21,256,129 Total business-type activities net position 102,251,938 106,900,209 117,374,094 PRIMARY GOVERNMENT Net investment in capital assets 255,240,500 264,870,158 274,615,899 Restricted 21,725,577 21,492,559 23,626,436 Unrestricted 32,835,094 30,317,512 34,287,544 Total primary government net position $ 309,801,171 $ 316,680,229 $ 332,529,879 Source: Annual Comprehensive Financial Report of the City. 220 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2016 2017(Restated) 2018 2019 2020 2021 2022 $ 195,142,143 $ 199,214,099 $ 207,113,453 $ 216,080,286 $ 216,281,021 $ 222,374,600 $ 225,906,951 20,392,998 26,313,186 38,019,099 40,908,235 61,695,111 69,011,237 80,791,413 11,024,212 21,105,136 26,937,963 36,208,160 31,287,737 31,576,376 40,344,925 226,559,353 246,632,421 272,070,515 293,196,681 309,263,869 322,962,213 347,043,289 95,247,967 104,870,812 110,785,680 110,542,303 108,782,212 104,142,931 112,119,692 12,279,628 15,387,870 18,811,969 20,044,161 22,974,348 18,496,564 20,172,795 21,847,155 30,803,556 38,881,215 50,316,066 58,469,800 74,329,841 74,436,284 129,374,750 151,062,238 168,478,864 180,902,530 190,226,360 196,969,336 206,728,771 290,390,110 304,084,911 317,899,133 326,622,589 325,063,233 326,517,531 338,026,643 32,672,626 41,701,056 56,831,068 60,952,396 84,669,459 87,507,801 100,964,208 32,871,367 51,908,692 65,819,178 86,524,226 89,757,537 105,906,217 114,781,209 $ 355,934,103 $ 397,694,659 $ 440,549,379 $ 474,099,211 $ 499,490,229 $ 519,931,549 $ 553,772,060 221 CITY OF TIGARD,OREGON CHANGES IN NET POSITION for the last ten fiscal years (accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year 2013 2014(Restated) 2015 EXPENSES Governmental activities Community services $ 19,085,777 $ 23,078,512 $ 18,542,379 Public works 8,585,063 8,399,436 10,408,399 Community development 3,988,011 4,267,328 4,688,686 Policy and administration 1,339,254 1,732,016 1,323,435 Interest on long-term debt 1,226,774 1,147,024 1,185,507 Total governmental activities expenses 34,224,879 38,624,316 36,148,406 Business-type activities Sewer 2,114,054 2,617,625 2,518,708 Stormwater 2,045,399 1,958,551 2,077,589 Water 11,989,337 11,730,347 10,839,483 Total business-type activities program expenses 16,148,790 16,306,523 15,435,780 Total primary government expenses $ 50,373,669 $ 54,930,839 $ 51,584,186 PROGRAM REVENUES Governmental activities Charges for services: Community services $ 2,252,945 $ 1,872,350 $ 1,731,639 Public works 2,120,366 2,519,515 2,239,431 Community development 2,579,329 1,765,005 3,040,501 Policy and administration 105,755 65,233 142,277 Operating grants and contributions 6,924,053 6,318,382 6,508,556 Capital grants and contributions 2,173,900 1,804,398 2,021,422 Total governmental activities program revenues 16,156,348 14,344,883 15,683,826 Business-type activities Charges for services: Sewer 1,203,187 1,727,206 1,773,388 Stormwater 2,629,694 2,733,346 2,899,180 Water 14,907,664 15,985,607 18,804,645 Capital grants and contributions 1,675,987 1,111,346 2,066,696 Total business-type activities program revenues 20,416,532 21,557,505 25,543,909 Total primary government program revenues $ 36,572,880 $ 35,902,388 $ 41,227,735 Source: Annual Comprehensive Financial Report of the City. 222 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2016 2017(Restated) 2018 2019 2020 2021 2022 $ 25,089,790 $ 23,268,637 $ 24,099,976 $ 23,370,174 $ 25,961,675 $ 30,378,435 $ 27,313,548 10,865,800 8,263,304 8,900,831 12,129,476 9,578,442 14,035,986 11,755,291 7,030,142 5,807,204 5,330,390 5,146,891 5,817,188 6,719,376 6,395,322 1,226,166 3,528,933 2,945,936 3,688,137 3,383,319 4,092,081 4,715,974 958,204 949,136 863,803 771,834 760,211 543,661 623,927 45,170,102 41,817,214 42,140,936 45,106,512 45,500,835 55,769,539 50,804,062 2,536,988 2,586,769 2,789,140 3,128,483 3,044,154 3,423,460 3,198,424 2,123,162 2,737,825 2,470,085 3,261,312 3,433,481 4,257,993 4,159,563 14,720,167 8,244,491 14,123,903 17,223,333 19,418,199 20,166,820 17,946,555 19,380,317 13,569,085 19,383,128 23,613,128 25,895,834 27,848,273 25,304,542 $ 64,550,419 $ 55,386,299 $ 61,524,064 $ 68,719,640 $ 71,396,669 $ 83,617,812 $ 76,108,604 $ 1,879,576 $ 2,482,811 $ 1,557,082 $ 1,628,237 $ 1,500,919 $ 2,207,360 $ 3,102,350 2,860,543 5,165,280 4,708,329 4,797,891 5,220,273 5,324,404 8,057,384 4,684,733 4,341,128 6,518,737 6,432,190 4,292,102 4,324,710 4,323,635 119,195 363,583 340,446 345,505 90,582 99,060 56,554 7,756,718 6,880,727 8,321,435 9,594,291 9,625,070 13,346,482 17,770,216 11,785,524 15,691,507 16,307,318 12,268,270 8,542,864 8,959,707 6,254,712 29,086,289 34,925,036 37,753,347 35,066,384 29,271,810 34,261,723 39,564,851 1,791,302 3,013,314 3,208,783 3,389,281 3,666,422 3,348,846 4,129,639 3,058,382 3,275,083 3,620,431 3,812,133 4,017,864 3,820,029 5,603,506 20,918,497 20,926,322 23,078,013 23,751,073 22,607,832 24,836,173 24,065,642 5,806,590 7,670,388 6,795,717 3,285,377 3,139,146 2,838,367 3,156,083 31,574,771 34,885,107 36,702,944 34,237,864 33,431,264 34,843,415 36,954,870 $ 60,661,060 $ 69,810,143 $ 74,456,291 $ 69,304,248 $ 62,703,074 $ 69,105,138 $ 76,519,721 223 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 2013 2014(Restated) 2015 NET(EXPENSE)REVENUE Governmental activities $ (18,068,531) $ (24,279,433) $ (20,464,580) Business-type activities 4,267,742 5,250,982 10,108,129 Total primary government net expenses (13,800,789) (19,028,451) (10,356,451) GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities: Property taxes 15,338,744 15,796,663 16,523,361 Franchise fees 5,855,956 5,542,647 5,687,456 Unrestricted intergovernmental revenues 2,500,240 2,955,652 3,004,341 Interest earnings 248,812 421,211 434,401 Miscellaneous 316,512 776,154 247,154 Transfers between Governmental and Business-type 120,227 1,017,893 (56,368) Total governmental activities 24,380,491 26,510,220 25,840,345 Business-type activities: Investment earnings(losses) 114,661 270,415 131,485 Miscellaneous 157,360 144,767 177,903 Unrestricted intergovernmental revenues - - - Transfers between Governmental and Business-type (120,227) (1,017,893) _ 56,368 Total business-type activities 151,794 (602,711) 365,756 Total primary government 24,532,285 25,907,509 26,206,101 CHANGES IN NET POSITION Governmental activities(restated) 6,311,960 2,230,787 5,375,765 Business-type activities(restated) 4,419,536 4,648,271 10,473,885 Total primary government $ 10,731,496 $ 6,879,058 $ 15,849,650 Source: Annual Comprehensive Financial Report of the City. 224 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2016 2017(Restated) 2018 2019 2020 2021 2022 $ (16,083,813) $ (6,892,178) $ (4,387,589) $ (10,040,128) $ (16,229,025) $ (21,507,816) $ (11,239,211) 12,194,454 21,316,022 17,319,816 10,624,736 7,535,430 6,995,142 11,650,328 (3,889,359) 14,423,844 12,932,227 584,608 (8,693,595) (14,512,674) 411,117 17,177,591 17,616,798 18,387,321 19,101,543 20,325,728 23,620,200 25,117,084 5,734,540 5,890,113 6,095,852 6,211,736 6,360,563 6,978,783 7,272,781 2,840,903 2,074,428 3,022,051 2,522,428 2,484,051 2,426,817 3,714,888 688,087 824,213 1,683,282 2,416,827 2,520,783 558,060 (2,181,844) 228,779 268,380 416,785 453,435 502,164 702,068 644,102 817,481 291,314 220,392 460,325 102,924 920,232 753,276 27,487,381 26,965,246 29,825,683 31,166,294 32,296,213 35,206,160 35,320,287 302,890 106,628 139,926 1,606,834 1,770,933 307,581 (1,313,073) 193,645 270,628 177,276 652,421 120,392 276,262 175,456 127,148 285,524 - - - 84,220 - (817,481) (291,314) (220,392) (460,325) (102,924) (920,232) (753,276) (193,798) 371,466 96,810 1,798,930 1,788,401 (252,169) (1,890,893) 27,293,583 27,336,712 29,922,493 32,965,224 34,084,614 34,953,991 33,429,394 11,403,568 20,073,068 25,438,094 21,126,166 16,067,188 13,698,344 24,081,076 12,000,656 21,687,488 17,416,626 12,423,666 9,323,831 6,742,973 9,759,435 $ 23,404,224 $ 41,760,556 $ 42,854,720 $ 33,549,832 $ 25,391,019 $ 20,441,317 $ 33,840,511 225 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 2013 2014 2015 GENERAL FUND Nonspendable $ 472,941 $ 508,374 $ 542,543 Unassigned 9,687,736 11,474,700 12,115,436 Total General Fund $ 10,160,677 $ 11,983,074 $ 12,657,979 ALL OTHER GOVERNMENTAL FUNDS Nonspendable $ 14,986 $ 16,055 $ 11,225 Restricted 14,859,784 12,504,001 11,791,605 Committed 4,020,435 4,457,233 2,801,857 Assigned 670,223 905,166 1,156,788 Unassigned (601,324) (752,925) (352,684) Total all other governmental funds $ 18,964,104 $ 17,129,530 $ 15,408,791 Source: Annual Comprehensive Financial Report of the City. 226 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2016 2017 2018 2019 2020 2021 2022 $ 664,254 $ 706,412 $ 705,495 $ 225,974 $ 1,158,584 $ 1,155,514 $ 1,201,673 12,970,670 14,884,712 19,356,804 23,121,341 26,823,013 29,764,210 40,490,726 $ 13,634,924 $ 15,591,124 $ 20,062,299 $ 23,347,315 $ 27,981,597 $ 30,919,724 $ 41,692,399 $ - $ 16,485 $ 17,040 $ 17,560 $ 18,080 $ - $ 500,000 18,250,934 31,914,910 45,521,700 51,414,137 91,514,895 69,593,046 81,722,388 3,260,236 4,341,838 3,307,731 3,325,235 3,556,651 4,215,954 5,382,464 1,597,773 1,725,086 1,738,216 2,388,659 3,257,280 3,562,612 4,320,107 (617,329) (725,296) (724,477) - (228,869) (122,328) (73,237) $ 22,491,614 $ 37,273,023 $ 49,860,210 $ 57,145,591 $ 98,118,037 $ 77,249,284 $ 91,851,722 227 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 2013 2014 2015 REVENUES Taxes $ 18,208,253 $ 18,822,449 $ 19,575,665 City gas tax 830,031 638,852 558,740 Franchise fees 5,724,192 5,542,647 5,691,960 Special assessments 43,170 258,831 35,359 Licenses and permits 3,175,118 3,098,875 4,030,120 Intergovernmental revenues 6,040,986 6,386,961 6,370,732 Charges for service 4,624,844 4,982,211 4,342,534 System development charges 2,007,935 955,678 961,450 Fines and forfeitures 1,038,948 929,293 924,266 Investment income(loss) 254,237 424,221 434,401 Miscellaneous 206,443 312,815 413,736 Total revenues 42,154,157 42,352,833 43,338,963 EXPENDITURES Current operating: Community services 18,636,382 19,420,335 20,325,635 Public works 6,551,980 6,914,185 7,512,446 Community development 3,937,089 4,219,481 4,640,737 Policy and administration 711,385 701,172 778,840 Debt service: Principal 1,992,500 2,445,993 2,117,045 Interest 1,264,795 1,178,637 1,118,238 Refunded bonds - - - Refunding bond issuance cost - - - Capital outlay 6,357,256 7,657,993 8,924,317 Total expenditures 39,451,387 42,537,796 45,417,258 Excess(deficiency)of revenues over(under)expenditures 2,702,770 (184,963) (2,078,295) OTHER FINANCING SOURCES(USES) Proceeds from bond/long-term note - - 1,300,000 Operating transfers in 4,735,619 6,420,053 6,178,215 Operating transfers out (4,880,803) (6,247,267) (6,445,754) Total other financing sources(uses) (145,184) 172,786 1,032,461 Net change in fund balances $ 2,557,586 $ (12,177) $ (1,045,834) Debt services as a percentage of non-capital expenditures 10.92% 11.60% 8.98% Source: Annual Comprehensive Financial Report of the City. 228 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2016 2017 2018 2019 2020 2021 2022 $ 20,191,927 $ 20,704,055 $ 21,822,129 $ 25,248,472 $ 25,582,940 $ 29,710,860 $ 31,594,698 712,408 844,866 887,038 888,913 831,411 695,284 819,817 5,732,448 5,886,791 6,102,443 6,218,353 6,365,589 6,980,858 7,272,781 65,243 52,146 50,036 59,999 46,554 90,251 71,140 5,751,472 6,662,790 7,648,235 5,178,056 4,050,568 3,705,222 4,438,449 6,684,667 8,228,693 8,737,359 9,498,510 9,364,516 12,635,993 15,332,768 4,869,821 5,930,289 6,636,913 4,648,396 5,369,990 5,553,225 6,529,148 6,104,579 11,733,901 9,860,311 4,240,910 5,606,246 5,124,725 4,410,347 972,560 713,059 698,508 843,100 828,444 1,521,113 1,957,175 653,879 799,748 1,659,107 2,343,694 2,315,941 511,899 (2,102,968) 220,894 349,098 1,204,701 1,284,229 526,208 611,322 531,363 51,959,898 61,905,436 65,306,780 60,452,632 60,888,407 67,140,752 70,854,718 20,784,186 21,925,169 22,631,248 22,051,531 23,708,112 28,732,927 27,396,574 7,606,128 8,291,205 8,899,175 6,105,157 6,153,581 6,881,610 7,358,243 6,981,903 5,807,836 5,345,399 5,272,175 5,875,274 6,827,722 6,050,814 831,876 787,681 795,586 993,346 843,032 1,029,244 1,212,217 2,361,892 2,378,100 2,454,000 2,530,800 3,117,619 2,205,000 2,777,000 1,059,733 977,539 892,206 799,646 809,003 568,882 630,131 - - - - 5,725,537 - - - - - - 59,234 - - 6,200,291 4,705,720 6,742,438 8,907,102 8,064,935 9,930,747 8,400,434 45,826,009 44,873,250 47,760,052 46,659,757 54,356,327 56,176,132 53,825,413 6,133,889 17,032,186 17,546,728 13,792,875 6,532,080 10,964,620 17,029,305 1,650,000 - - - 11,910,000 - 9,312,400 6,378,318 4,755,215 4,174,624 8,808,520 6,385,695 8,121,091 7,543,089 (6,102,439) (5,049,792) (4,662,990) (9,952,900) (7,043,924) (9,034,740) (8,509,681) 1,925,879 (294,577) (488,366) (1,144,380) 11,251,771 (913,649) 8,345,808 $ 8,059,768 $ 16,737,609 $ 17,058,362 $ 12,648,495 $ 17,783,851 $ 10,050,971 $ 25,375,113 9.00% 8.56% 8.28% 8.82% 8.48% 5.81% 8.11% 229 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 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 2022 15,539,923 17,770,216 6,254,712 25,117,084 7,272,781 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 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 - - 2022 33,798,787 - 3,156,083 - - Source: Annual Comprehensive Financial Report of the City-Statement of Activities. 230 General Revenues Investment Gain(Loss)on Intergovernmental Earnings Disposition of Revenues (Loss) Capital Assets Miscellaneous Total $ 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 3,714,888 (2,181,844) - 644,102 74,131,862 General Revenues Investment Gain(Loss)on Intergovernmental Earnings Disposition of Revenues (Loss) Capital Assets Miscellaneous Total $ - $ 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 - (1,313,073) - 175,456 35,817,253 231 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 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 2022 27,313,548 11,755,291 6,395,322 4,715,974 CITY OF TIGARD,OREGON BUSINESS-TYPE EXPENSES BY FUNCTION For the last ten fiscal years Fiscal Year Ended June 30 Sewer Stormwater Water Total 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 2022 3,198,424 4,159,563 17,946,555 25,304,542 Source: Annual Comprehensive Financial Report of the City. 232 Interest on Long-Term Debt Total $ 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 55,769,539 623,927 50,804,062 233 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 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 2022 32,414,515 7,272,781 4,438,449 15,332,768 * Includes special assessments collections, investment earnings(loss),and other revenues. Information derived from Annual Comprehensive Financial Reports for all Governmental Fund Types 234 Charges System For Development Fines and Miscellaneous Services Charges Forfeitures Revenues* Total $ 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 6,529,148 4,410,347 1,957,175 (1,500,465) 70,854,718 235 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 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 2022 27,396,574 13,409,057 1,212,217 8,400,434 3,407,131 53,825,413 Information derived from Annual Comprehensive Financial Reports for all Governmental Fund Types 236 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 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% 2022 7,159,650,490 294,394,734 192,137,300 7,646,182,524 3.11 13,613,164,237 56.17% *per$1,000 of assessed value/including phase in rates Source: Washington County Assessment and Taxation 237 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 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 2022 2.51 0.34 0.25 - 3.11 3.01 7.78 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. 238 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 $ 6.77 $ 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 - 1.06 25.35 8.03 2.12 - 0.68 - 1.06 25.68 8.03 2.12 - 0.66 - 1.06 25.77 239 CITY OF TIGARD,OREGON PRINCIPAL PROPERTY TAXPAYERS For current and nine years ago 2022 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 $ 258,197,567 1 3.66% $ 190,885,380 1 3.70% PPR Washington Square LLC 155,486,561 2 2.21% 123,817,544 2 2.40% Lincoln Center LLC 112,140,241 3 1.59% 82,545,029 3 1.60% Portland General Electric 53,212,000 4 0.76% Comcast Corporation 48,217,000 5 0.68% 30,954,386 6 0.60% ROIC Oregon LLC 39,708,780 6 0.56% Northwest Natural Gas 39,262,000 7 0.56% PPR Square Too LLC 38,379,970 8 0.54% 29,530,410 7 0.57% KW Fund VI Arbor Heights LLC 29,808,120 9 0.42% Icon Owner Pool 1 West LLC 29,596,210 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 $ 804,008,449 10.99% $ 635,173,433 12.31% Source: Washington County Assessment&Taxation records. 240 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 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% 2022 23,755,171 23,118,616 97.32% 252,349 23,370,965 98.38% 354,452 1.49% 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 241 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 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% - - 2022 - - 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. 242 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% 2022 2,777,000 630,131 3,407,131 53,825,413 6.33% Source: Annual Comprehensive Financial Report of the City. 243 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 2022 55,854 7,646,182,524 24,185,316 5,202,834 18,982,482 0.25% 339.86 Source: City budget documents,Annual Comprehensive Financial Reports of the City and Washington Department of Assessment and Taxation. 244 CITY OF TIGARD,OREGON COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30,2022 Percent Amount Applicable Applicable Net Debt Inside City of Inside City of Jurisdiction Outstanding Tigard* Tigard Tigard/Tualatin School District#23-J $ 311,603,983 49.71% $ 154,897,717 Metro 873,470,000 3.34% 29,191,367 Beaverton School District#48 907,677,133 3.78% 34,287,504 Portland Community College 496,110,000 4.20% 20,833,643 Washington County 181,686,051 10.26% 18,647,711 Tualatin Valley Fire&Rescue District 60,075,000 10.96% 6,585,422 Sub-Total of Overlapping Debt 2,830,622,167 264,443,364 City of Tigard 24,185,316 100.00% 24,185,316 Total for Overlapping Debt $ 2,854,807,483 $ 288,628,680 *The City of Tigard does not calculate this percentage;it is provided by the State of Oregon. Source: Oregon State Treasury Debt Management Division. 245 CITY OF TIGARD,OREGON COMPUTATION OF LEGAL DEBT MARGIN For the last ten fiscal years 2013 2014 2015 2016 Debt limit $ 201,826,506 $ 210,982,614 $ 230,989,826 $ 242,482,552 Total net debt applicable to limit 28,800,576 26,820,000 24,775,000 22,670,000 Legal debt margin $ 173,025,930 $ 184,162,614 $ 206,214,826 $ 219,812,552 Total net debt applicable to the limit as a percentage of debt limit 14.27% 12.71% 10.73% 9.35% 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. 246 2017 2018 2019 2020 2021 2022 $ 269,677,150 $ 296,512,995 $ 322,625,386 $ 338,510,748 $ 383,710,880 408,394,927 20,505,000 18,269,800 15,965,000 19,840,000 17,635,000 24,170,400 $ 249,172,150 $ 137,195,419 $ 306,660,386 $ 318,670,748 $ 366,075,880 384,224,527 7.60% 6.16% 4.95% 5.86% 4.60% 5.92% Legal Debt Margin Calculation at June 30,2022 True cash value(2021-2022) $ 13,613,164,237 Limit as a percent 3% Debt Limit(as a percent of real market value) 408,394,927 Debt applicable to limit: Gross bonded debt $ 24,185,316 Excludable debt-Bancroft improvement bonds,bond premium, capital lease and commercial bank loan (14,916) Debt subject to limitation 24,170,400 Legal debt margin-amount available for future indebtedness 384,224,527 Total net debt applicable to the limit as a percent of debt limit 5.92% 247 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 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 - - - 2022 55,854 24,185,316 - - - *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. 248 Business-type Activities Percentage Notes Payable Revenue Total Primary of Personal Per Debt Bonds* Government Income** Capita $ 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 1,472,023 125,917,499 145,046,610 6.59% 2,660 1,355,000 122,210,627 147,750,943 6.39% 2,645 249 CITY OF TIGARD,OREGON COMPUTATION OF WATER REVENUE BONDS DEBT COVERAGE For the last ten fiscal years 2013 2014 2015 Gross revenues $ 14,907,664 $ 16,079,753 $ 18,944,301 System Development Charges(SDC)related: SDC Fund investment earnings(loss) 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. 250 2016 2017 2018 2019 2020 2021 2022 $ 20,918,497 $ 20,926,322 $ 23,078,014 $ 23,751,073 $ 22,607,832 $ 24,836,173 $ 24,065,642 35,173 6,660 4,694 343,069 351,524 68,639 (247,814) 1,242,297 3,010,263 1,924,587 921,379 1,258,967 934,950 1,034,638 1,569,645 3,521,776 2,319,737 949,056 1,600,366 1,120,049 1,320,695 2,847,115 6,538,699 4,249,018 2,213,504 3,210,857 2,123,638 2,107,519 1,117,286 1,148,575 874,348 1,005,720 1,172,511 1,216,954 1,120,169 353,396 445,840 407,450 453,971 704,045 708,202 318,806 4,212,357 1,339,637 1,869,824 1,685,669 1,685,705 1,755,408 1,787,040 3,111,194 3,572,450 3,931,142 4,498,769 5,258,318 6,096,039 6,129,769 8,794,233 6,506,502 7,082,764 7,644,129 8,820,579 9,776,603 9,355,784 14,971,379 20,958,519 20,244,268 18,320,448 16,998,110 17,183,208 16,817,377 $ 12,124,264 $ 14,419,820 $ 15,995,250 $ 16,106,944 $ 13,787,253 $ 15,059,570 $ 14,709,858 $ 4,719,850 $ 6,561,800 $ 6,561,050 $ 6,563,750 $ 6,563,050 $ 2,331,580 $ 2,412,300 1,378,238 1,670,300 1,667,900 1,666,000 1,668,800 1,666,300 1,668,500 - - - - - 2,961,663 2,962,463 $ 6,098,088 $ 8,232,100 $ 8,228,950 $ 8,229,750 $ 8,231,850 $ 6,959,543 $ 7,043,263 1.99 1.75 1.94 1.96 1.67 2.16 2.09 251 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(31 of dollars)(3) Area(4) 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 11,859 40,350 2,200,649 4.4% 2022 55,854 136,896 11,860 41,370 2,310,680 3.5% Sources of Information: (1)Portland State University Population Research Center (2)Tigard/Tualatin School District#23-1-City student totals not available (3)Washington State University-Northwest Income Indicators Project (4)US Department of Labor, Bureau of Labor Statistics 252 CITY OF TIGARD,OREGON PRINCIPAL EMPLOYERS For current year and nine years ago 2022 2013 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Tigard-Tualatin School District#23-1 1,400 1 4.35% 779 2 2.76% Consumer Cellular 461 2 1.43% Nordstrom 440 3 1.37% 428 3 1.52% Costco Wholesale Corporation 407 4 1.26% 300 6 1.06% Conduent Inc 367 5 1.14% City of Tigard 342 6 1.06% 255 7 0.90% Comcast 271 7 0.84% Fred Meyer Inc 263 8 0.82% Macy's Department Stores 256 9 0.80% 390 5 1.38% Cheesecake Factory 250 10 0.78% Capital One 861 1 3.05% Oregon Public Employees Retirement 396 4 1.40% WinCo 176 8 0.62% JC Penny 144 9 0.51% Total 4,457 13.85% 3,729 13.20% Source: City of Tigard Business License Records 253 CITY OF TIGARD,OREGON PROPERTY VALUE AND CONSTRUCTION For the last ten fiscal years Fiscal Commercial Construction(1) Residential Construction(1) Year Ended Number of Number of June 30 Permits Value Permits Value 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 2022 6 2,510,969 188 90,793,908 (1)From City of Tigard Building Department. Multi-family permits are included in the number of permits issued for residential construction. 254 CITY OF TIGARD,OREGON FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION For the last ten fiscal years Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 GOVERNMENTAL ACTIVITIES Community services Police 84.50 84.50 82.50 83.50 87.50 88.50 84.50 85.00 97.00 94.00 Library 34.80 34.80 34.80 38.30 39.70 40.90 38.80 39.20 39.20 39.20 Public works Administration 9.00 9.20 9.20 9.00 9.50 9.75 9.00 9.95 8.95 10.00 Parks maintenance 9.75 9.75 10.75 11.67 12.17 10.40 10.50 12.50 15.30 15.40 Recreation - - - - 0.33 2.35 1.00 2.35 2.45 2.65 Street maintenance 7.00 7.25 7.25 6.33 7.00 7.45 7.50 8.25 7.30 7.00 Healthy Streams 1.00 - - - - - - - - - Engineering 12.00 13.00 14.00 14.00 17.00 19.00 19.00 20.00 23.00 22.00 Community development Administration 2.00 2.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Building inspection 7.80 8.80 9.00 9.00 13.00 13.00 13.60 14.10 15.35 15.35 Development Services(a) 4.80 3.80 3.80 3.80 - - - - - - Community Planning 9.00 9.00 9.00 9.00 13.50 13.50 12.65 12.65 13.65 15.65 Economic Development 1.00 2.00 2.00 2.00 2.00 3.00 2.00 3.00 3.00 3.00 Policy and Administration City management 4.00 4.00 5.00 5.50 4.90 5.90 3.90 3.90 4.90 4.90 City attorney(b) - - - - - - 1.10 1.10 1.10 1.10 Human resources 4.80 4.80 4.50 4.80 4.50 4.34 4.14 4.14 5.00 5.00 Information technology 6.30 5.80 7.00 7.00 8.00 9.00 9.00 12.00 12.00 18.00 Risk management 2.10 2.10 2.10 2.30 1.50 1.76 1.76 2.06 2.00 2.10 Finance administration 3.00 3.00 3.00 3.00 3.00 3.50 3.00 3.00 4.00 4.00 Financial operations 4.60 4.60 4.60 4.60 4.80 5.30 4.80 4.80 5.80 5.80 Utility Billing 6.50 6.80 6.80 6.80 6.80 7.20 7.20 7.70 7.70 7.20 Design&Communication 3.05 3.05 3.05 3.05 4.25 4.75 4.75 5.35 5.60 5.60 Contracts&Purchasing 1.80 2.00 2.00 2.00 2.00 2.00 2.00 2.50 2.50 3.00 City Recorder/Records 4.15 4.15 4.15 3.35 3.85 3.85 3.85 3.25 3.25 3.25 Municipal court 3.65 3.65 3.65 3.65 3.50 3.50 3.50 6.50 9.90 9.90 Fleet maintenance(c) 1.50 0.95 1.95 1.80 2.35 2.85 2.60 2.60 2.75 2.75 Property management(c) 3.75 3.85 4.85 5.20 4.90 6.55 6.65 6.65 6.50 7.50 BUSINESS-TYPE ACTIVITIES Public works Sanitary sewer 6.25 6.50 5.50 6.00 6.50 6.25 6.25 5.50 5.50 5.60 Stormwater 5.25 5.50 6.50 7.00 7.50 9.00 8.25 5.75 5.50 5.60 Water 12.50 12.00 13.00 13.00 13.00 11.25 12.50 14.05 14.05 13.80 Green team - - - - - - - 4.00 4.30 4.30 Total 255.85 256.85 261.95 268.65 286.05 297.85 286.80 304.85 330.55 336.65 Source: City of Tigard Finance Department (a) Development services was budgeted with Building in FY 2016-17. (b) City attorney was changed from a contract to an employee in FY 2017-18. (c) Fleet/Property Management budgeted with Public Works until FY 2015-16. 255 CITY OF TIGARD,OREGON OPERATING INDICATORS BY FUNCTION/PROGRAM For the last ten fiscal years Functions/Programs 2013 2014 2015 GOVERNMENTAL ACTIVITIES Community services Police-number of traffic citations issued* 8,939 7,177 6,462 Police-number of calls for service* 52,420 48,840 47,247 Library-number of items in collection 250,454 245,000 248,225 Library-materials checked out each year 1,459,334 1,385,376 1,280,376 Public works Acres of park land maintained 248 253 255 Crack sealing completed annually(linear feet) 160,000 160,000 160,000 Vehicles maintained to industry standard 148 157 160 Community development Number of inspections(Tigard) 12,500 12,382 9,009 Number of permits(all types)in Tigard 3,049 3,404 2,958 Number of development applications 357 341 251 Policy and administration Number of job applications 2,500 2,000 2,100 Laptops and computers to maintain 503 523 525 Insured value of city's real property**** (in millions) $ 82 $ 82 $ 82 Number of utility bills sent 238,400 241,500 244,000 Average fine amount collected $ 140 $ 140 $ 160 BUSINESS-TYPE ACTIVITIES Sewer Miles of sewer lines cleaned 42 42 42 Miles of sewer lines video inspected 24 21 21 Stormwater Miles of stormwater lines cleaned 32 21 21 Number of water quality facilities improved*** 125 126 126 Total number of catch basins cleaned*** 2,768 2,840 2,840 Water Number of accounts 18,362 18,445 18,524 *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 256 2016 2017 2018 2019 2020 2021 2022 5,745 5,057 5,260 5,972 5,167 16,504 23,790 43,299 41,874 42,075 42,482 38,810 35,441 35,886 253,725 229,344 238,919 220,877 222,438 235,894 254,822 1,243,774 1,159,446 1,227,561 1,216,642 1,310,382 1,157,942 1,186,552 301 301 305 306 311 389 550 160,000 107,727 262,659 92,400 521,298 760,682 - 146 162 152 156 164 161 160 10,814 27,551 25,793 17,540 18,736 14,503 18,442 3,860 4,281 4,189 3,776 3,384 3,507 4,609 388 818 843 876 875 984 986 2,200 3,726 2,605 3,393 2,503 3,302 3,567 530 585 593 601 702 741 788 $ 82 $ 120 $ 122 $ 129 $ 130 $ 133 $ 135 256,500 248,560 254,150 258,252 260,260 262,490 268,092 $ 160 $ 149 $ 133 $ 119 $ 109 $ 79 $ 89 42 51 57 59 63 54 46 24 23 29 30 25 46 25 21 23 20 26 21 21 14 126 133 138 143 152 181 186 2,917 3,939 2,620 2,737 2,864 2,904 1,358 18,767 19,311 19,689 19,849 20,064 20,196 20,269 257 CITY OF TIGARD,OREGON CAPITAL ASSETS STATISTICS BY FUNCTION For the last ten fiscal years Functions/Programs 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 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 20 20 20 20 21 24 24 29 31 33 Acres of park and greenspaces 493.0 499.0 514.0 514.0 548.0 552.0 553.0 558.0 558.0 558.0 Miles of streets 150.0 150.0 150.0 150.0 157.0 175.7 175.7 189.7 324.0 326 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 166.9 166.9 166.9 168.0 168.3 168.5 168.7 168.7 168.7 168.7 Stormwater Total miles of stormwater lines* 126.0 130.0 130.0 130.0 131.2 131.8 136.7 135.1 135.1 135.1 Number of water quality facilities* 125 126 126 126 164 210 240 240 240 240 Water Water mains in miles 248.0 248.0 248.0 248.0 251.3 251.3 260.0 260.0 265.0 265.0 Number of reservoirs 13 13 13 14 14 14 14 14 14 14 Source:City of Tigard Finance Department *GIS data improvement 258 CITY OF TIGARD,OREGON MISCELLANEOUS STATISTICAL DATA June 30,2022 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 326 Police protection: -Number of stations 1 -Number of sworn police officers 72 Education: - Attendance centers 17 -Number of teachers\FTE 714 -Number of students 11,859 Building Permits issued (2021-2022) 809 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) 254,822 Employees: -Classified service(union) 192 -Unclassified (non-union) 140 Information obtained from the various departments of the City of Tigard and Tigard/Tualatin School District#23-J City student totals not available. 259 No content appears on this page by design. 260 Audit Comments and Disclosure Requirements 261 262 No content appears on this page by design. 263 0 MOSSADAMS Report of Independent Auditors Required by Oregon State Regulations The City Council City of Tigard, Oregon Tigard, Oregon We have audited, 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 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 (City)as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise City's basic financial statements, and have issued our report thereon dated December 22, 2022. 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, and grant agreements, including provisions of Oregon Revised Statutes (ORS) as specified in Oregon Administrative Rules (OAR) 162-010-0000 to 162-010-0330, of the Minimum Standards for Audits of Oregon Municipal Corporations, 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. We performed procedures to the extent we considered necessary to address the required comments and disclosures which included, but were not limited to, the following: • Accounting records and internal control • Public fund deposits • Indebtedness • Budget • Insurance and fidelity bonds • Programs funded from outside sources • Highway funds • Investments • Public contracts and purchasing 264 v22-09 In connection with our testing, nothing came to our attention that caused us to believe the City was not in substantial compliance with certain provisions of laws, regulations, contracts, and grant agreements, including the provisions of ORS as specified in OAR 162-010-0000 through 162-010- 0330 of the Minimum Standards for Audits of Oregon Municipal Corporations, 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 funds invested in certain corporate bond investments that had credit ratings below the limits set under ORS 294.035 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) as a basis for designing 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 entity'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 or significant deficiencies 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 not to provide an opinion on the effectiveness of the entity's internal control or on compliance. Accordingly, this communication is not suitable for any other purpose. This report is intended solely for the information and use of the City Council and management of the City and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these parties. Aaan, Keith Simovic, Partner for Moss Adams LLP Portland, Oregon December 22, 2022 265 ® 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 (the City)as of and for the year ended June 30, 2022, 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 22, 2022. Report on 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) as a basis for designing 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 entity'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 or significant deficiencies may exist that were not identified. 266 v22-09 Report on 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 entity'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 entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. (1Wr nt-M'5" I-IP Portland, Oregon December 22, 2022 267 REPORT OF INDEPENDENT AUDITORS AND SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS CITY OF TIGARD, OREGON FEDERAL GRANT PROGRAMS June 30, 2022 0 MOSSADAMS Table of Contents PAGE Reports: Report of Independent Auditors on the Financial Statements for the Year Ended June 30, 2022 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 1-2 Report of Independent Auditors on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 3-5 Schedules: Schedule of Expenditures of Federal Awards 6-7 Notes to the Schedule of Expenditures of Federal Awards 8 Schedule of Findings and Questioned Costs 9 * Incorporated by reference only. 0 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 (the City)as of and for the year ended June 30, 2022, 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 22, 2022. Report on 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) as a basis for designing 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 entity'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 or significant deficiencies may exist that were not identified. Page 1 Report on 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 entity'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 entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. (1tXr Portland, Oregon December 22, 2022 Page 2 0 MOSSADAMS Report of Independent Auditors on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance The City Council City of Tigard, Oregon Tigard, Oregon Report on Compliance for The Major Federal Program Opinion on The Major Federal Program We have audited the City of Tigard, Oregon's (the "City")compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the City's major federal program for the year ended June 30, 2022. The City's major federal program is identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2022. Basis for Opinion on The Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the major federal program. Our audit does not provide a legal determination of City's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City's federal programs. Page 3 Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of the major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Page 4 Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2022 and have issued our report thereon date December 22, 2022, which contained an unmodified opinion on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the financial statements as a whole. (icr* ndl/14/4 1-1P Portland, Oregon March 31, 2023 Page 5 City of Tigard Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2022 Federal Agency or Federal Grantor/Pass-through Grantor Assistance Listing Pass-through Program Title Number Number Expenditures U.S. Department of the Treasury Direct: COVID-19- Coronavirus State and Local Fiscal Recovery Funds 21.027 1505-0271 $ 7,499,726 Total U.S. Department of the Treasury 7,499,726 U.S. Department of Justice Direct: Equitable Sharing Program 16.922 FY 2022 58,041 Total U.S. Department of Justice 58,041 U.S. Department of Transportation Pass-through: Metro Federal Transit Formula Grants 20.507 936342 61,982 Federal Transit Formula Grants 20.507 FY 2022 4,994 Total Federal Transit Cluster 66,976 Pass-through: Oregon Department of Transportation National Priority Safety Programs 20.616 FY 2022 2,517 See notes to schedule of expenditures of federal awards. Page 6 City of Tigard Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2022 Federal Agency or Federal Grantor/Pass-through Grantor Assistance Listing Pass-through Program Title Number Number Expenditures Pass-through: Oregon Impact National Priority Safety Programs 20.616 FY 2022 $ 580 National Priority Safety Programs 20.616 FY 2022 3,816 National Priority Safety Programs 20.616 FY 2022 841 State and Community Highway Safety 20.600 FY 2022 2,017 Total Highway Safety Cluster 9,771 Total U.S. Department of Transportation 76,747 U.S. Department of Housing and Urban Development Pass-through: Washington County Community Development Block Grants/Entitlement Grants 14.218 19-0791 474,307 Total CDBG - Entitlement Grants Cluster 474,307 Total U.S. Department of Housing and Urban Development 474,307 U.S. Department of Homeland Security Pass-through: Washington County Urban Area Security Initiative 97.067 20-1525 13,337 Total U.S. Department of Homeland Security 13,337 Total Federal Financial Assistance $ 8,122,158 See notes to schedule of expenditures of federal awards. Page 7 City of Tigard Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2022 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes all federal grant activity of the City of Tigard, Oregon (the "City"), under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because this Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City. 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported using the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable. 3. Election of De Minimis Indirect Rate The City of Tigard has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance during the fiscal year ended June 30, 2022. See schedule of expenditures of federal awards. Page 8 City of Tigard Schedule of Findings and Questioned Costs For the Year Ended June 30, 2022 Section I — Summary of Auditor's Results Financial Statements Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting: • Material weakness(es) identified? ❑ Yes ® No • Significant deficiency(ies) identified? ❑ Yes ® None reported Noncompliance material to financial statements noted? ❑ Yes ® No Federal Awards Internal control over major federal programs: • Material weakness(es) identified? ❑ Yes ❑ No • Significant deficiency(ies) identified? ❑ Yes ❑ None reported Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? ❑ Yes ❑ No Identification of Major Programs and type of Auditor's report issued on compliance for major federal programs: Federal Type of Auditor's Report Assistance Issued on Compliance for Listing Number Name of Federal Program or Cluster Major Federal Programs 21.027 COVID-19— Coronavirus State and Local Unmodified Fiscal Recovery Funds Dollar threshold used to distinguish between type A and type B programs: $ 750,000 Auditee qualified as low-risk auditee? ❑ Yes ® No Section II — Financial Statement Findings None reported. Section III — Federal Award Findings and Questioned Costs None reported. 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