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TCDA Packet - 3/5/2024
1111 " City of Tigard ■ Tigard Business Meeting —Agenda TIGARD • TIGARD CITY COUNCIL&TOWN CENTER DEVELOPMENT AGENCY MEETING DATE AND MARCH 5,2024- 6:30 p.m. Business Meeting TIME: MEETING LOCATION: Hybrid- City of Tigard-Town Hall- 13125 SW Hall Blvd.,Tigard, OR 97223 -See PUBLIC NOTICE below PUBLIC NOTICE: In accordance with Oregon House Bill 2560,this will be a hybrid meeting where some Council, staff or public will participate in person and some will participate remotely. How to comment: •Written public comment may be submitted electronically at www.tigard-or.gov/Comments by noon the day before the meeting date. •If attending the meeting in person,please fill out the public comment sign-in sheet at the front of the room and come to the microphone when your name is called. •If you prefer to call in,please call 503-966-4101 when instructed to be placed in the queue.We ask that you plan on limiting your testimony to two minutes. •You may comment by video through the Teams app. Go to this link to learn how to participate by video: March 5 2024 Council Meeting (https://www.tigard-or.gov/Home/Components/Calendar/Event/5251/66). Upon request,the City will endeavor to arrange for the following services: • Qualified sign language interpreters for persons with speech or hearing impairments;and • Qualified bilingual interpreters. Since these services must be scheduled with outside service providers,it is important to allow as much lead time as possible. Please notify the City of your need by 5:00 p.m. on the Thursday preceding the meeting by calling: 503-718-2419 (voice) or 503-684-2772 (TDD -Telecommunications Devices for the Deaf). SEE ATTACHED AGENDA VIEW LIVESTREAM ONLINE: https://www.tigard-or.gov/boxcast CABLE VIEWERS:The City Council meeting will be shown live on Channel 21 (1st Tuesdays) and Channel 28 (2nd& 4th Tuesdays) at 6:30 p.m.The meeting will be rebroadcast at the following times on Channel 28: Thursday 6:00 p.m. Friday 10:00 p.m. Saturday 7:30 p.m. Sunday 11:30 a.m. Monday 6:00 a.m. 11111 4 City of Tigard Tigard Business Meeting —Agenda . GARD TIGARD CITY COUNCIL&TOWN CENTER DEVELOPMENT AGENCY MEETING DATE AND TIME: MARCH 5,2024-6:30 p.m.Business Meeting MEETING LOCATION: Hybrid- City of Tigard-Town Hall- 13125 SW Hall Blvd.,Tigard, OR 97223 6:30 PM 1. BUSINESS MEETING A. Call to Order B. Roll Call C. Pledge of Allegiance D. Call to Council and Staff for Non-Agenda Items 2. PROCLAMATIONS AND RECOGNITION 3. PUBLIC COMMENT A. Follow-up to Previous Public Comment B. Public Comment—Written C. Public Comment—In Person D. Public Comment—Phone-In E. Public Comment—Video 4. CITY MANAGER REPORT 6:45 p.m. estimated time 5. PRESENTATION OF EXTERNAL FINANCIAL AUDIT BY MOSS ADAMS 6:50 p.m. estimated time 6. TOWN CENTER DEVELOPMENT AGENCY JOINT MEETING WITH THE TOWN CENTER ADVISORY COMMISSION 7:30 p.m. estimated time 7. DOWNTOWN WAYFINDING PLAN BRIEFING 8:15 p.m. estimated time 8. NON-AGENDA ITEMS 9. EXECUTIVE SESSION: The Tigard City Council may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute.All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions,as provided by ORS 192.660(4),but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision.Executive Sessions are closed to the public. 10. ADJOURNMENT 8:35 p.m. estimated time SUPPLEMENTAL PACKET FOR i a kr4 -s" (DAIE OF MEETING) TIGARD lfe`'�` 3 Written Public Comment for the March 5, 2024 Tigard City Council meeting Topic: Safe Lots (20) 1. Suzan Campbell 11. Lindsey Voorhees 2. Susan Purfield 12. Drew Brost 3. Patricia Fuhr 13. Jana Gould 4. Darrick Purfield 14. Lindsey Voorhees 5. Kathleen Whitman 1.5. Lisa Carufel 6. Grace Kelso 16. Theresa Rise 7. Jovi Wang 17. Sevrin Hamilton 8. Rebecca Smith 18. Margaret Hamilton 9. Judy Bueermann 19. Heather Jones 10. Jack Voorhees 20. Sherry Stevens Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Friday, March 1, 2024 4:29 PM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3040677 IP Address: 73.25.238.210 Submission Date: 03/01/2024 4:29 Survey Time: 10 minutes, 10 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Suzan Campbell Email Complete Address Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Item D Christ the King parking issue Comments I read the entire article referenced here and was interested in the fact that the pastor at Christ the King evidently feels that preschool students in her facility need additional protection if the preschool is running and the parking program were implemented at the same time.That being the case,what about the preschool/daycare across the street?Homes whose back yards are adjacent to this parking lot?School children waiting at bus stop?I think this program may have merit but it needs to be in a non residential area.And I would love to see rationale as to why Just Compassion has been so unresponsive in Beaverton .The pastor indicates that if the program started up before June they would take steps to protect the children at the church preschool-if she anticipates that the children in her preschool need protection she must also realize this is not a safe plan on any level. "Many people, including parents of students in a preschool program at the church, raised concerns about homeless people already sleeping overnight and hanging out on church property. Cottingham said the preschool program was ending in June,and if the Safe Parking Program started up before then,steps would be taken to protect the children." Ref article in Tigard Life Feb/March 2024 by Barbara Sherman Respectfully Suzan Campbell https://www.kptv.com/2024/02/28/neighbors-fed-up-with-homeless-camp-church-property-se- portland/?fbclid=lwAROoi2-WbEzDutHDolyd5sc2YS7ci KAbEUgO_5XY6mX3u6KZHv2KFYjQPVU_aem_AeDh51-dfedv- GHozxV48pKR2VRRkI i4X4G7ZM N64djzJGgypXG3Xm9ZY1zFT7Sttxl Attachment Supporting Documents/Images Thank you, City of Tigard 1 Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 8:49 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3043893 IP Address: 50.38.48.89 Submission Date: 03/04/2024 8:48 Survey Time: 4 minutes,5 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Susan Purfield Email Complete Address 14535 SW McFarland Blvd Tigard,OR 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Houseless Proposal at Christ The King Church-Against Comments I am writing today to express my concerns for the proposal to allow houseless vehicles at the church off 114th and Bull Mountain. I know we are in a "cooling off period"for this project but the risk to my family is not going anywhere! I live 1/4 mile from the proposed site and have 3 elementary aged children. I love my neighborhood, my neighbors and have deep compassion for those that are less fortunate than myself.While I recognize the need for this program, I do not feel that the proposed location would provide the best service to either the houseless individuals and/or the families in the community.With no drug testing required, allowing participants to qualify with a "non-recent"history of sexual and violent crimes, limited supervision, no services within the immediate area,yet surrounded by residential living(i.e.children everywhere)and a close proximity to several schools,this does not seem like the right location for this project!!As a side not,Just Compassion has stated many times that they do not disclose the location of their parking spots,yet at this point everyone is aware of this location! I would plead for you to consider alternate locations for these types of projects and that any permits for these types of requests require a public/on the record vote!Thank you for taking the time to read my comments. Attachment Supporting Documents/Images Thank you, City of Tigard This is an automated message generated by Granicus.Please do not reply directly to this email. 1 Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 8:51 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3043908 IP Address: 50.38.48.89 Submission Date: 03/04/2024 8:51 Survey Time: 2 minutes,16 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Patricia Fuhr Email Complete Address 16132 SW 113th Ave #168 Tigard,or 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Houseless Parking Location at Christ the King Church-Against Comments I am writing today to express my concerns for the proposal to allow houseless vehicles at the church off 114th and Bull Mountain. I know we are in a "cooling off period"for this project but the risk to my family is not going anywhere! My daughter and her family lives 1/4 mile from the proposed site and has 3 elementary aged children.While I recognize the need for this program, I do not feel that the proposed location would provide the best service to either the houseless individuals and/or the families in the community. With no drug testing required,allowing participants to qualify with a "non-recent" history of sexual and violent crimes, limited supervision,no services within the immediate area,yet surrounded by residential living(i.e.children everywhere)and a close proximity to several schools,this does not seem like the right location for this project!!Thank you for taking the time to read my comments. Attachment Supporting Documents/Images Thank you, City of Tigard This is an automated message generated by Granicus.Please do not reply directly to this email. 1 Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 8:53 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3043917 IP Address: 50.38.48.89 Submission Date: 03/04/2024 8:52 Survey Time: 41 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Darrick Purfield Email Complete Address 14535 SW McFarland Blvd Tigard, OR 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Homeless vehicle parking Comments I am writing today to express my concerns for the proposal to allow houseless vehicles at the church off 114th and Bull Mountain. I know we are in a "cooling off period"for this project but the risk to my family is not going anywhere! I live 1/4 mile from the proposed site and have 3 elementary aged children. I love my neighborhood,my neighbors and have deep compassion for those that are less fortunate than myself.While I recognize the need for this program, I do not feel that the proposed location would provide the best service to either the houseless individuals and/or the families in the community.With no drug testing required, allowing participants to qualify with a "non-recent" history of sexual and violent crimes, limited supervision, no services within the immediate area,yet surrounded by residential living(i.e.children everywhere)and a close proximity to several schools,this does not seem like the right location for this project!!As a side not,Just Compassion has stated many times that they do not disclose the location of their parking spots,yet at this point everyone is aware of this location! I would plead for you to consider alternate locations for these types of projects and that any permits for these types of requests require a public/on the record vote!Thank you for taking the time to read my comments. Attachment Supporting Documents/Images Thank you, City of Tigard This is an automated message generated by Granicus.Please do not reply directly to this email. 1 Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 8:54 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3043925 IP Address: 166.199.8.63 Submission Date: 03/04/2024 8:53 Survey Time: 9 minutes, 12 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Kathleen Whitman Email Complete Address 11894 SW Aspen Ridge Dr Portland,Oregon 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Safe Parking Program Comments Honorable Mayor and City Council,Those who are experiencing homelessness is sad but overnight parking 3-5 cars at Christ The King Church unsupervised is not the answer. On February 27,2024, Fox 12 News reported Neighbors fed up with homeless camp on church property in SE Portland.Crime, Drugs,and Suspicious Activity.Again on March 3,2024, Fox 12 reported Montavilla church member unhappy about encampment in parking lot.Allowing an unsupervised overnight parking site/camp to exist on private property causes harm such as vandalism,garbage,breaking windows,etcetera as reported by a member of the congregation.Since the camp sits on private property,the City of Portland does not have the authority to clear it out.The city said they've responded to the camp,sending out assessment teams through Central City Concern's Clean Start program seven times in the last month.They also said outreach teams have been visiting the location weekly since mid-December. In view of the unsuccessful efforts for overnight parking on private property, I urge the City of Tigard to use public land sites for the Safe Parking Program. I further urge that Just Compassion and/or the City of Tigard to be responsible for the funding and management of these sites. Questions. comments, please let me know. Kathleen Whitman https://www.kptv.com/2024/02/28/neighbors-fed-up-with-homeless-camp- chu rch-property-se-portla nd/ Attachment Supporting Documents/Images Thank you, City of Tigard 1 Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 10:16 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3044274 IP Address: 173.164.123.133 Submission Date: 03/04/2024 10:15 Survey Time: 2 minutes,50 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Grace Kelso Email Complete Address 14430 SW 128th PI Tigard,OR 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Safe Park-Christ the King church location Comments I'm a concerned neighbor. I feel this location is far too close to schools and children and homes.With ample space available away from these factors-why would the city fund a project risking the safety of their constituents?There is just no reason to put this program in this location. Even if people are background checked and the program vets participants bad actors may get through.This is not a risk I'm willing to take with the safety of children. Find a better location! I'm not opposed to helping people,I think it should be done responsibly and in a way that MINIMIZES risk. Please consider this!!! Attachment Supporting Documents/Images Thank you, City of Tigard This is an automated message generated by Granicus.Please do not reply directly to this email. 1 Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 10:30 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3044322 IP Address: 166.199.8.30 Submission Date: 03/04/2024 10:30 Survey Time: 58 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Jovi Wang Email Complete Address 12762 SW Rocky Mountain CT Tigard,OR 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Safe parking program Comments Dear City Council Elected Officials,We recently became aware of the proposed Safe Parking Program that Christ the King Lutheran Church and Just Compassion EWC plan to host at the bottom of our Bull Mountain Neighborhood.This parking lot currently hosts a preschool with 30 children on site daily,9am-12 through the end of May. In addition,a variety of neighbors live within feet of this parking lot,or even share a fence line with the proposed location.We do not dispute the merits of this program,or its intent.That said,we implore the city to implement funding criteria for Safe Parking locations very near schools and homes.The City has a duty to ensure funded projects keep citizens safe-this proposal currently has no plan for overnight security or recourse if overnight parking extends into nearby neighborhoods.We cannot take the risk of our children and families being exposed to dangerous activity,such as the incident that took place near the Just Compassion shelter in Beaverton recently.We implore city officials to take the safety and security of their constituents seriously as they act in support of these programs.We have the following asks of the city:Create an Open House Online Forum for us to continue to share our voices-we have not been able to fully participate to date. Explore using public property within safe distances from homes and schools for the 3 Safe Parking projects in Tigard. Ensure any funding provided by the city be met with location and security criteria to limit these projects within a reasonable distance of schools (including daycares and preschools)and home.We want to see funding decisions for this project put to a city council vote-we want our elected officials to remain transparent and accountable as they work on behalf of their constituents Ensure the permitting process for Safe Parking projects are public and available-we want to know the criteria and also be made aware when a permit has been applied for-please pos Attachment Supporting Documents/Images 1 Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 10:57 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3044417 IP Address: 209.170.255.14 Submission Date: 03/04/2024 10:56 Survey Time: 8 minutes,56 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Rebecca Smith Email Complete Address 14350 SW 114th Ave TIGARD,Oregon 97224-3713 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Safe Parking at Bull Mountain and 99 Comments I am writing to voice serious concern over the Safe Parking proposed for the church at the corner of Bull Mountain. I live on SW 114th Ave This area is already riddled with police activity.At least a every few months there is literally a manhunt,complete with drones and dogs,through out neighborhood.We have had purses stolen out of cars,we have had things taken off our porch and this is without inviting the homeless to live on my street.This is a horrifying option to our family.Why would we invite the homeless into our neighborhood?We know this will devalue our homes,cause issues in our communities. Please consider the will of the people who are actually residents of this area. Attachment Supporting Documents/Images Thank you, City of Tigard This is an automated message generated by Granicus.Please do not reply directly to this email. 1 Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 11:00 AM To: Carol Krager;Jesse Raymundo; Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3044440 IP Address: 50.38.61.190 Submission Date: 03/04/2024 10:59 Survey Time: 2 minutes,31 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Judy Bueermann Email Complete Address 11926 Sw Aspen Ridge Dr Tigard,OR 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Safe parking program Bull Mt Road and Hwy 99 Comments Dear Mayor Lueb and Councilors,Again,requesting that you consider alternatives to the"Safe Parking" program being considered at the Christ the King church parking lot on Hwy 99 and Bull Mt. Road. I understand the need for safe parking, I also know there are alternatives. I have serious concerns about the location and safety of this project. One concern is the mental health of the residents already living in this neighborhood. I have witnessed the distress. Please consider using the parking lot at Tigard's City Hall. I am sighting safety for the client and the surrounding community. I hope to encourage Mayor Lueb and ALL involved to be a groundbreaking example and use the resources at the city's disposal,(the parking at City Hall). Follow the city of Tualatin's example. Maybe build a fence around the cars to be protected while using the seer fact of proximity to the police station as a deterrent for those that were not invited into the program.The questions regarding safety in the event of something going awry has not been addressed satisfactorily. Please reconsider this matter.Thank you,Judy Bueermann Attachment Supporting Documents/Images Thank you, City of Tigard This is an automated message generated by Granicus.Please do not reply directly to this email. 1 Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 11:15 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3044495 IP Address: 73.96.138.219 Submission Date: 03/04/2024 11:15 Survey Time: 7 minutes,8 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Jack Voorhees Email Complete Address 14336 SW 128th Place Tigard,OR 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Comments Dear City Council Elected Officials,We recently became aware of the proposed Safe Parking Program that Christ the King Lutheran Church and Just Compassion EWC plan to host at the bottom of our Bull Mountain Neighborhood.This parking lot currently hosts a preschool with 30 children on site daily,9am-12 through the end of May. In addition,a variety of neighbors live within feet of this parking lot,or even share a fence line with the proposed location.We do not dispute the merits of this program,or its intent.That said,we implore the city to implement funding criteria for Safe Parking locations very near schools and homes.The City has a duty to ensure funded projects keep citizens safe-this proposal currently has no plan for overnight security or recourse if overnight parking extends into nearby neighborhoods.We have the following asks of the city:Create an Open House Online Forum for us to continue to share our voices-we have not been able to fully participate to date. Explore using public property within safe distances from homes and schools for the 3 Safe Parking projects in Tigard. Ensure any funding provided by the city be met with location and security criteria to limit these projects within a reasonable distance of schools (including daycares and preschools)and homes.We want to see funding decisions for this project put to a city council vote-we want our elected officials to remain transparent and accountable as they work on behalf of their constituents Ensure the permitting process for Safe Parking projects are public and available-we want to know the criteria and also be made aware when a permit has been applied for-please post this information publicly for all to access Attachment Supporting Documents/Images Thank you, City of Tigard 1 Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 11:16 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION*City Council Public Comment Form City Council Public Comment Form Submission#: 3044496 IP Address: 73.96.138.219 Submission Date: 03/04/2024 11:15 Survey Time: 7 minutes,25 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Lindsey Voorhees Email Complete Address 14336 SW 128th PI Portland,Oregon 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Safe Parking and Measure 110 Comments Portland and surrounding citizens are beginning to wake up and demand change.We all have compassion for the houseless and those suffering from untreated addiction and/or mental illness, but we no longer have the patience to sit back and watch our livability and safety compromised.We do not support hosting homeless vehicle parking within feet of our homes and schools.We have sadly seen that this close co-hosting leads to harm to neighbors and we do not want it spreading to Bull Mountain.We urge the council to reconsider the location and select one farther away from schools and homes.An updated parking utilization study was submitted recently. I have attached it again to confirm it has been reviewed.We use council to consider public parking lots for Safe Parking programming, if they believe it is truly an effective solution to the homeless crisis in Tigard (we are unconvinced given program effectiveness data,also attached).We have asked for the following things and have not received any communication regarding these reasonable requests: 1)Create an online open house as a platform for more constituents to share their thoughts on the Safe Parking program 2) If city funding is being considered for Safe Parking, put it to a council vote-we want to know who votes to use tax payer funds to implement programs we have concerns with 3)Schedule another in-person community meeting-the meetings hosted by Christ the King Church did not allow for ample participation. People were turned away in person and on Zoom due to capacity issues. If the city hosts a meeting, publicize it well,and avoid TTSD spring break so families with children can participate. Attachment Supporting Documents/Images TCH Parking Data Testimonv.pdf Safe Parking Program 2020 Year 1 Report(PDF).pdf 1 February 15, 2024 Dear City Council Members, My name is Jim Wilkinson. I have only recently become a resident of Bull Mountain, near 150th. I am a retired international Architect and Master Planner. I worked with the Bull Mountain Connect neighborhood planning team to conduct a parking space count and utilization survey for four parking lots at the Tigard City Hall property. It was suggested to not do a count on the day after the Superbowl (Monday 2/11), but I did one just to practice - at 10:15 am. The next day, Tuesday, February 12, 2024, I did three utilization counts. These were done at 9:30am, 4:35pm and 7:45pm. After conducting the counts, I compiled the data onto an 8.5x11 inch graphic to make it easy to print out (see page 2). The four city parking lots I gathered data on are highlighted in red with yellow tone on the attached site plan, and also numbered. The site plan is compiled from the Google Earth Pro website. The parking counts are arranged by lot and time in a matrix below the site plan. We hope you will consider the time I took as an informed neighbor to gather this current data, and use it to plan for Safe Parking projects to be hosted on public property farther away from homes and schools. I look forward to -continued engagement and discussion as this project is considered, with the goal to ensure it is executed safely for all neighbors near the proposed Christ the King Lutheran Church parking lot site. . 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J Monday 2/12 Tuesday 2/13 Tuesday 2/13 Tuesday 2113 • 10:15 am 9:30 sm 4:35 pm 7:45 pm ......./1 1 t JITTr7 1 I 1 CTTPii.. 0111 :7: 1 — (.4)41 spaces i 24 26 10 3 1 . 8 12 7 3 1 i ..,,,,(-;) / . . 26 spac.es ni 1 1 39 42 35 7 c, i 1 LaLL1 i' '... .....,..,,.....: • • k*in'l LJ 18 14 15 43 ,,---u. C)49 spaces ____ Beaverton 0 R Safe Parking Program Year 1 Report About The City of Beaverton Safe Parking Pilot Program (Safe Parking) provides a safe, legal place to park for people experiencing homelessness and living out of their vehicles. While no one should have to live in their car, providing a safe place to park can help families and individuals in this situation stabilize their lives and gain better access to services. The program was designed after a successful model in Eugene, Oregon and provides case management through a contract with Just Compassion of East Washington County. The case management focuses on identifying barriers and working towards housing stability. Timeline • Program development: July 2018- March 2019 • Program Start with two host sites (City, THPRD): April 2019 • Municipal Code Changes:September 2019 • Development Code Changes: February 2020 • Washington County adds Safe Parking code changes to Long Range Work Planning Program: March 2020 • Third host site (faith partner) is added to the program: April 2020 Program Statistics (April 2019- April 2020) Overview of people served • # of individuals served: 37 (28 adults, 9 children) • # of vehicles in the program: 17 • # of vehicles exited into housing 6 (12 individuals)- 37/12 is 32%- how is this considered a "success?" • # of vehicles continuing in the program: 6 (9 individuals) • # of vehicles exited not into housing (noncompliance or self-exited): 5 (16 individuals) Ilcmnnrnr kir Il�iS�tritir rn Gender Veterans Adults White - 16 - Female - 17 1 Black-3 Male - 11 Latinx- 4 Non-binary-0 Asian and Pacific Islander- 1 Not reported -4 Children White-5 Female - 6 N/A Latinx-4 Male -3 Non-binary - 0 The program has served both families and single adults and has identified senior women on fixed incomes as a high need population. The gap between income and rent is the primary reason for homelessness among program participants. 1 ' Safe Parking Year 1 Report Guests Exited from the Program • One vehicle, representing a family of six self-exited from the program to move closer to family support (a decision made through discussions with Just Compassion). • Four vehicles have been exited from the program for not attending case management meetings or showing progress on their plan towards housing. One of the vehicles exited from the program for non-compliance with case management housed a senior woman who was going to school with the goal of earning an associate degree and a better stream of income. She was eventually able to do so during her time in the program with additional assistance from Holy Trinity Church. Police Calls • In August, there were several calls to BPD from neighbors next to the city site regarding noise from guests. BPD responded and characterized their interaction as a welfare check (they didn't make any arrests). One vehicle of guests associated with the noise complaint was eventually exited from the program and trespassed from the parking lot. City staff changed the location of the parking spots/restrooms on the lot to address neighbor concerns about noise. Strengths of the Safe Parking Pilot Program to Date • Transition to Housing. Safe Parking has provided its participants with stability that they don't normally find when living out of their vehicles.They have had access to a regular restroom and storage and an entry point for services. This stability has allowed them the chance to have more sleep at night, work towards employment and school, and receive dedicated assistance in finding housing. • Access to Resources. Participants in the program have had access to the Just Compassion Resource Center, including meals, laundry service, laptops, assistance with rental application fees, and a permanent address to receive mail. They have also been able and more likely to access the Beaverton Severe Weather Shelter during the winter season to have a warm place to stay and a hot dinner. • Community Collaboration. The program has collaborated with Family Promise of Beaverton to provide a place for families on their waitlist to park until they are able to get into the program. This has helped keep kids in school and supported more consistent communication with the families, so they don't get lost in the system. Just Compassion has built strong partnerships with Luke Dorf, Community Action, and the Beaverton School District for referral and resourcing of guests, which has clearly increased the overall impact of the program. 2 I Safe Parking Memo • Livable Neighborhoods. BPD has worked with the program to address needs of people experiencing homelessness that they encounter living out of their vehicles in neighborhoods and public spaces. Having a place to refer people in this situation has helped alleviate neighborhood concerns and provided an alternative option to enforcement of the camping ordinance. Testimony from former program participant: "My partner and I, both working full time, were desperate to have a place to call our own. However, due to the fact that we didn't have a rental history, we had been denied by every apartment, house, and trailer park that we applied to. Finally, in October we received a business card from a policeman telling us about Just Compassion and the safe parking program. This would be a huge step up since they offered a place where we could sleep safely near our work with a restroom... Sooner than we could have ever hoped we were applying to an apartment building that was lenient and we were ACCEPTED! Now we have a one bedroom with a full kitchen, living room, and bathroom with a tub. It has done wonders for our health, both mental and physical. We are eternally grateful for Just Compassion and the safe parking program. I don't know what we would have had to do if we hadn't finally found them. They allowed us to keep our family together and let us feel like real members of society again. I will never forget that kindness." Challenges and Program Modifications • Staffing. Just Compassion was in transition over the first six months of the program, as the primary case manager left the organization and they had to rehire. A new coordinator was hired October 1, 2019 and brought a wealth of experience to case management that benefited guests working towards housing. • High Need. The need is so much greater than what can be offered. The waitlist had to be capped early on because the demand was so high.Additionally,the first guests to enter the program were previously known from the severe weather shelter and point-in-time count. While this made relationship building easier, the barriers to housing for these guests (part of the chronically homeless population) were very high. Just Compassion had to schedule more regular meetings to connect with guests. The intensive case management represents an increased cost in services provided. • Privacy. Guests staying at the city site are highly visible to neighbors and daily visitors to the location and surrounding area. This leads to a lack of privacy for these guests, as well as a higher likelihood for neighbor complaints. • Lack of affordable housing. The biggest service gap at this point is the lack of affordable and available housing. This has led to participants needing extensions on their allotted time in the program while they are waiting for housing.The longer guests need to stay in the program before they can access housing, the less turnover there is at host sites and the fewer people can be served. 3 I Safe Parking Memo • Hesitancy for host sites.Commitment of faith partners to sign on as host sites has taken significantly longer than expected. Several partners who initially stepped forward to express interest later backed away or found they had to engage in extensive internal processes to build buy in and discern as a congregation if they would participate. Outreach has included informational sessions and updates, presentations to congregations and leadership boards, discussions with local neighbors and NACs, multiple site visits to talk through program administration and potential logistics, etc. Recommendations 1. Transition from pilot to established program. 2. Increase budget to recognize additional case management provided by Just Compassion and additional guest needs such as gas vouchers. 3. Explore options for moving the city site to a new location, to provide additional privacy to program guests and reduce neighbor concerns. 4. Allow the City to place up to six vehicles on their sites as it provides more capacity for the program without increased site infrastructure costs. 5. Collaborate with Washington County on countywide Safe Parking. 6. Continue to convene quarterly internal stakeholder meetings consisting of staff from several departments. 7. Evaluate capacity and need to expand beyond the original target of five host sites. • 4 1 Safe Parking Memo Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 11:20 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION*City Council Public Comment Form City Council Public Comment Form Submission#: 3044519 IP Address: 45.143.82.104 Submission Date: 03/04/2024 11:20 Survey Time: 9 minutes,54 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Drew Brost Email Complete Address 16648 SW 88th Place Tigard,Oregon 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) "Safe Parking Program" Comments Greetings, I'm writing today to express my complete opposition to this program. I'm against having the program in Bull mountain or any other location in Tigard,due to the fact that these programs have not had long-term studies to prove they help eliminate homelessness. Homelessness on average cost communities$40,000 dollars per homeless person. Programs like the Safe Parking program will drive homelessness up in Tigard as it will enable them to have a place to stay. Not allowing a safe parking program will maintain the current level of safety of its citizens,as well as saving money on the cost that these programs inevitably lead to.You've stated that Beaverton and Portland already have such programs. How have they helped reduce the homeless population there? Have we seen reductions in homelessness due to these programs,or have they increased since implimentation?This program should be voted on by Tigard and it's citizens and I look forward to each City council member going on record with their support or opposition so we can see where they stand on said issue.Thank you Attachment Supporting Documents/Images Thank you, City of Tigard This is an automated message generated by Granicus.Please do not reply directly to this email. 1 Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 11:28 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3044561 IP Address: 73.96.138.219 Submission Date: 03/04/2024 11:28 Survey Time: 9 minutes You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Lindsey Voorhees Email Complete Address . 14336 SW 128th PI Portland,Oregon 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Addiction Treatment-Support PLUS Accountability Comments I would like the city of Tigard to consider a basic concept when promoting and/or funding programs designed to address addiction, mental health,and/or homeless crises. High levels of support MUST BE MATCHED with high levels of accountability in order to yield lasting results.This a basic concept that has been well-researched and is endorsed by many former addicts and homeless individuals. Our city seems to be considering spending millions on programs that have self-reported low effectiveness, and low-accountability (also called "low barrier" programs). I am happy to support efforts that match support with accountability, like the rehabilitation program at Clackamas County Jail(see attached report), but I will fight against spending tax payer$$ineffectively on programs with poor outcomes,or that put neighbors at increased risks for safety/reduced livability,like the Safe Parking program. I urge council to review effective programs and research the attributes needed to ensure our attempts to address these same crises in Tigard are beneficial to all. Attachment Supporting Documents/Images Clacka mas-Cou my-Ja i l-Based-SU D-Treatment.pdf Thank you, City of Tigard This is an automated message generated by Granicus.Please do not reply directly to this email. 1 u c E V m CU 2 E — E inT. y�, m y O c +J r L N n 3 Y Y ro 0 YY • t+ H O T c 0 !a -_ p.O > — _ c to O .LrnN d D -O vY pY oO r O ii S tri En • N O (f) O c Y ry m V v v i',.' 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(0 2C Q LL O C0 L y0 N w 0 m ,L O tLo a- u 111M „ m V r O dl (13a 0 (0 � s C r c s V J V � • • • • / C Y t0 v a--1 c / ay U1 y ( ' ., C V! y W .. I—L O VI f� U N N 0 ” 2 v " Y ` in G O m .., m N c NE C O N v in V u Vf W O H O ^ G (J MvMI _� W a s w e a aN fO 'C L V1 N N v +-1 v C c E D 0 V E c VI c o NO 2 0 R. Y N l) V V Q) X 0 y )FIHH U�V Uto s t e / 1 Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 11:29 AM To: Carol Krager;Jesse Raymundo; Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3044562 IP Address: 50.38.61.157 Submission Date: 03/04/2024 11:28 Survey Time: 13 minutes,46 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Lisa Carufel Email Complete Address 11903 SW Aspen Ridge Dr Tigard, OR 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Homeless Safe Parking location at Comments See attached letter to be included in the discussion regarding the location of the homeless safe parking location. Attachment Supporting Documents/Images Dear City Council Elected Officials March 4 2024.docx Thank you, City of Tigard This is an automated message generated by Granicus.Please do not reply directly to this email. 1 March 4, 2024 Dear City Council Elected Officials, We have lived in Tigard on Bull Mtn in the same house for 21 years and raised our two sons here. We love our community and have been actively involved in it. Our entire family has spent thousands of hours giving back to Tigard volunteering in schools, boy scout community projects, youth sports coaching, Youth Peer Court student volunteers, Tigard Safety Town, Meals on Wheels, Good Neighbor Ctr, and St. Anthony Community Café. We are shocked that the city would consider allowing the safe parking program located so close to residential and school activity. This parking lot currently hosts a preschool with 30 children on site daily, 9am-12 through the end of May. In addition, a variety of neighbors live within feet of this parking lot, or even share a fence line with the proposed location. There is another preschool located at St James Episcopal Church which is 69 ft away from the proposed site. Directly across the street from the proposed site at the apartments there is an elementary bus stop, 8-10 kids wait for their bus and are dropped off. This is frightening to us that this site would be considered because it's so close to young children that are vulnerable to any type of interaction with individuals and their guests parking at this site with no security monitoring. We do not dispute the merits of this program, but absolutely implore the city to restrict funding and consider criteria for locations near schools and homes. We cannot take the risk of our children and families being exposed to dangerous activity. We implore city officials to take the safety and security of their constituents seriously as they act in support of these programs. Also, the nature of Just Compassion EWC plan is the sites are to remain undisclosed. With two banners located at 114th/Gaarde entrances advertising the church as a potential site, 3 news organizations broadcasting this proposal, Next Door neighbor and Facebook ongoing discussions, and 250+ plus neighbors attending the first discussion mtg (majority opposed to this site location) this site can no longer be considered undisclosed and will jeopardize the safety of clients in the program. We have the following asks of the city: • Explore using public property farther away from homes and schools to host Safe Parking projects in Tigard • Ensure any funding provided by the city be met with location criteria to limit these projects to locate within a reasonable distance of schools (including daycares and preschools) and homes. Thank you in advance for your focused attention to this matter. Lisa and Dan Carufel Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 11:30 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION*City Council Public Comment Form City Council Public Comment Form Submission#: 3044571 IP Address: 98.246.41.51 Submission Date: 03/04/2024 11:30 Survey Time: 1 minute,31 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Theresa Rise Email Complete Address 13887 SW Uplands Drive Tigard,OR Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Safe Parking Program Comments I recently became aware of the proposed Safe Parking Program located behind Christ the King church. Because the program is new and has not been sanctioned by federal funders, little is known about how the programs operate and their impacts.This community is resistant to the proposed location and it is our hope that the city of abandon this proposed lot. I attended the Tuesday open meeting at the church and it was overwhelmingly apparent,this is not a welcome location.Tigard Mayor Heidi Lueb attempted to insult the community today by gaslighting valid concerns raised by residents.We residents are not opposed to the service, but not in a residential area where there are families,seniors and other tax paying citizens that are affected by this proposal,and not in a good way. Attachment Supporting Documents/Images Safe parking program.pdf Thank you, City of Tigard This is an automated message generated by Granicus.Please do not reply directly to this email. 1 SAFE PARKING PROGRAM I recently became aware of the proposed Safe Parking Program located behind Christ the King church. Because the program is new and has not been sanctioned by federal funders, little is known about how the programs operate and their impacts. This community is resistant to the proposed location and it is our hope that the city of abandon this proposed lot. I attended the Tuesday open meeting at the church and it was overwhelmingly apparent, this is not a welcome location. Tigard Mayor Heidi Lueb attempted to insult the community today by gaslighting valid concerns raised by residents. We residents are not opposed to the service, but not in a residential area where there are families, seniors and other tax paying citizens that are affected by this proposal, and not in a good way. Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 11:40 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3044625 IP Address: 172.59.191.238 Submission Date: 03/04/2024 11:39 Survey Time: 12 minutes, 10 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Sevrin Hamilton Email Complete Address 14420 SW 114th Ave. Tigard,OR 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Safe Parking Program at Christ the King Lutheran Church Comments Thank you Council members for your continued work to provide a safe,productive community in which to live. I am writing again regarding the Safe Parking Program.After viewing the Safe Spaces presentation made to City Council back in August 2022, I am further concerned that the citizens of Tigard are not being heard. Legitimate, reasonable,concerns were gathered from a limited survey of 125 individuals all expressing similar concerns that we have been voicing over the past couple months. I ask that the location of a Safe Parking Program be seriously reconsidered,due to the lack of onsite monitoring,its proximity to schools and residential neighborhoods,and the lack of drug testing for residents. If drug addiction is not seen as a greater problem than houselessness,or at least seen as one of the primary factors involved in individuals not able to stay in long term housing,then we are fighting a losing battle. In the years that I have worked with the homeless and houseless, both in a volunteer basis with various churches,and in my general interactions with those in our community who I have sought to help over the years,drug addiction is a major factor.The City Council needs to consider all the constituents and hear the concerns of those living in the neighborhood where a Safe Parking Program is being proposed.I look forward to my meeting with the City Manager in the next couple weeks and am thankful for a continued conversation.Thank you again Council Members for all your hard work. I hope and pray you have the wisdom and discernment to know how best to truly help the houseless,and not follow in the failing programs and policies of Multnomah County and other cities like Seattle and San Fransisco,who are painful case studies of failed attempts to truly show compasssion to those without homes.Thank you again.Sevrin Hamilton Attachment Supporting Documents/Images 1 Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 11:42 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3044642 IP Address: 73.25.212.53 Submission Date: 03/04/2024 11:42 Survey Time: 33 minutes, 57 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Margaret Hamilton Email Complete Address 14420 SW 114th Ave Tigard,OR 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Safe Parking Program at Christ the King Comments Please see attached.Thank you for your consideration. Attachment Supporting Documents/Images City Council Testimony 20240304.pdf Thank you, City of Tigard This is an automated message generated by Granicus.Please do not reply directly to this email. 1 Dear City Council Members, I hope that our concerns aren't simply becoming white noise to you and that you continue to consider them with the seriousness that we take in sending them. You bear a great responsibility in your position and we appreciate the many ways that you serve our community. I just learned of the Safe Spaces initiative in late January. Since then, I have done my best to join in on the conversation and do research to find the progress of the proposed program from the time it was first presented to council until now. From what I can tell, a presentation was given to the previous city council on August 23, 2022. The Safe Spaces survey was active for the month of July, but it's unclear how the survey was "advertised" to the city residents. It was later reported that the survey received only 125 responses. Of those responses, the concerns that we hear today were expressed in those responses as reported to Council in Aug '22. City residents expressed a desire to not place safe lots near schools and property lines, and had concerns about the impact on surrounding neighborhoods. I ask that you create an Open House Online Forum for us to continue to share our voices- we have not been able to fully participate to date. The residents of Tigard should hear the complete details of this proposed program. I would assume that the survey responses would have been different in 2022 if more details of the program were included - specifically, the absence of drug tests for program participation, and no on-site security when sites are located in heavily residential neighborhoods. I sincerely want to be compassionate with the houseless community living in our City, but I want to see the program executed well, with firm accountability. I believe that compassion with firm accountability from the non-profit/City, in concert with the neighborhoods will lead to program success. The participants of this program are required to sign a "good neighbor" agreement. City Hall, nor Just Compassion are their neighbors. Our neighborhood community is the "other party" in this agreement. Please allow us the opportunity to truly be a part of the conversation. We want to see our neighborhood continue to flourish. Sincerely, Margaret Hamilton Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 11:48 AM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION* City Council Public Comment Form City Council Public Comment Form Submission#: 3044670 IP Address: 73.25.212.53 Submission Date: 03/04/2024 11:48 Survey Time: 4 minutes, 13 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Heather Jones Email Complete Address Tigard,OR 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Safe Parking Program Comments We recently became aware of the proposed Safe Parking Program that Christ the King Lutheran Church and Just Compassion EWC plan to host at the bottom of our Bull Mountain Neighborhood.This parking lot currently hosts a preschool with 30 children on site daily,9am-12pm. In addition,a variety of neighbors live within feet of this parking lot,or even share a fence line with the proposed location.We do not dispute the merits of this program,or its intent.That said,we implore the city to implement funding criteria for Safe Parking locations very near schools and homes.The City has a duty to ensure funded projects keep citizens safe-this proposal currently has no plan for overnight security or recourse if overnight parking extends into nearby neighborhoods.We cannot take the risk of our children and families being exposed to dangerous activity,such as the incident that took place near the Just Compassion shelter in Beaverton recently.We implore city officials to take the safety and security of their constituents seriously as they act in support of these programs.We have the following asks of the city:Create an Open House Online Forum for us to continue to share our voices-we have not been able to fully participate to date. Explore using public property within safe distances from homes and schools for the 3 Safe Parking projects in Tigard. Ensure any funding provided by the city be met with location and security criteria to limit these projects within a reasonable distance of schools(including daycares and preschools)and homes.We want to see funding decisions for this project put to a city council vote-we want our elected officials to remain transparent and accountable as they work on behalf of their constituents Ensure the permitting process for Safe Parking projects are public and available-we want to know the criteria and also be made aware when a permit has been applied for-please post this information publicly for all to access Attachment Supporting Documents/Images Thank you, City of Tigard 1 Carol Krager From: City of Tigard, OR <webteam@tigard-or.gov> Sent: Monday, March 4, 2024 12:00 PM To: Carol Krager;Jesse Raymundo;Webteam Subject: *NEW SUBMISSION*City Council Public Comment Form City Council Public Comment Form Submission#: 3044715 IP Address: 50.53.224.152 Submission Date: 03/04/2024 11:59 Survey Time: 16 minutes,33 seconds You have a new online form submission. Note:all answers displaying"*****"are marked as sensitive and must be viewed after your login. Name Sherry Stephens Email Complete Address Tigar , OR 97224 Which agenda item or topic are you commenting on? (Comments are due by Monday at noon) Safe Parking Program Tigard Comments The site in Tigard next to Christ the King Lutheran Church is not a suitable or safe location because of it proximity to a dense residential population.The lack of supervision and attraction of other homeless individuals will further increase safety issues.There is access to drugs across the street,it's a small area and highly visible.Children are at bus stops,school and daycares are very close by.The neighborhood opposes this and we need to live in a community that cares about us and our safety.We matter.Thank you. Attachment Supporting Documents/Images Thank you, City of Tigard This is an automated message generated by Granicus.Please do not reply directly to this email. 1 _SNDA ITEM NO. 3.C. - PUBLIC COMMENT DATE: March 5, 2024 (Limited to 2 minutes or less,please) This is a City of Tigard public meeting,subject to the State of Oregon's public meeting and records laws. All written and oral testimony becomes part of the public record.The names and cities of persons who attend or participate in City of Tigard public meetings will be included in the meeting minutes,which is a public record. Please review the"Tigard City Council Protocol for Public Comment." NAME &CITY YOU LIVE IN TOPIC Please Print Name \<e Ni y kc2.. CityW p ZJ `A, M e Please spell your name as it sounds if it will help the presiding officer LIS.fse.._ pronounce: Optional: If you want a response from staff,please leave your contact informati°jCheck one: Phone or email ^� teCOrCtl\jet For ❑ Against ❑ Neutral ❑ Name 5 l- R.V 8201-y City—ri 6A-Kb c P m i',. Please spell your name as it sounds if it will help the presiding officer pronounce: --)e Optional: If you want a response from staff,please leave your contact information: Check one: Phone or email Sec`s-► pcitx---v lu-r ph •c.r-v't For ❑ Against ❑ Neutral ❑ Name \ x\tF.t 1 c -' (S3,. City —1)34rd Please spell your name as it sounds if it will help the presiding officer pronounce: Optional: If you want a response from staff,please leave your contact information: Check one: Phone or email C\CC-OU v1'*t tf i\C AY{•Ca rv."‘ For ❑ Against ❑ Neutral ❑ Name City Please spell your name as it sounds if it will help the presiding officer pronounce: Optional: If you want a response from staff,please leave your contact information: ..... Check one: Phone or email For ❑ Against ❑ Neutral ❑ AIS-5442 5. Business Meeting Meeting Date: 03/05/2024 Length (in minutes): 40 Minutes Agenda Title: Presentation of External Financial Audit by Moss Adams Authored By: Eric Kang Presented By: Finance Director Eric Kang and Moss Adams Partner Keith Simovic Item Type: Update,Discussion,Direct Staff Public Hearing No Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE Present to the City Council the Annual Comprehensive Financial Report (ACFR) along with other related communication and results from the external financial audit for the city and the Tigard Town Center Development Agency for the fiscal year ending June 30,2023.The presentation will include recommendations for opportunities for improvement noted by Moss Adams during the course of the audit. ACTION REQUESTED No action required.Management and the external auditors from Moss Adams will present the ACFR and results from the audit to Council. BACKGROUND INFORMATION Oregon Revised Statute 297.425 requires that every city publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP)in the United States of America and audited in accordance with auditing standards generally accepted by a firm of licensed certified public accountants. Moss Adams, the city's external audit firm,performed an audit of the city's financial statements for the fiscal year ending June 30,2023.They reported their findings to the Audit Committee on February 15,2024.Their reports are included in the city's Annual Comprehensive Financial Report(ACFR) and the TCDA financial report.Moss Adams will provide an overview of audit procedures performed and highlight areas with opportunities for improvement or best practices. ALTERNATIVES & RECOMMENDATION N/A ADDITIONAL RESOURCES N/A Attachments Tigard Council Audit Presentation 2023 Communications 2023 Annual Comprehensive Financial Report Town Center Development Agency Financial Statement 4 c_i (-I) 1-1 Md • n CD 0 ..' C.i.) C.J1 0 K IQ IQ 0 0 C./1 0 0 Cr, IQ -I , CA) > H K 0.i • C,) A-, Cfq 1--,• t-i- Pzi P CD cf) r:•7•1•4 r+ cn ; 11 t• •:. ." , , , ,)1,::- .• ... , . . . . . . , . . .• . . . . . , . • ,..•• . . • . . . ,. . .. , , . . ... ' . i ). 1. -:.,' .1‘ •. •• , . , . . , . , t1/4 4 , • g.. . . . . . , . ;:,• i . '-.1,,z it , 1 i I iii iiii1P10 , .. ) , ' 1 CD 1-d CD cD CD o • cA CD r • ,.b r+ o raw CID w - (:-,----.; C ) m rr E l j m m �a3 --4t, U I M m I -0, - T l41 l ) A aim O m n C) . m c z l J C \ r T m m r f Tom m F I ! 1 --< S c D a < d < m D Z n Z , r « co - I CD 0 g 0 a Z 0 CD - CD _7 0 / % CDc. q 0 -0 CD -0 CD o CD 0 2 7 3 § D 7 0 \ \ § 3 7 q CO R m o ° 7 D ° 3 0 3 CL 0 CD k D zk_. 0_ 23 7. 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L O D CD l 1 0 + f-i- P OO —(D. 2. r—t- co cf, p °o o o C ) N n n• n i-L en N A) CD `CD N V O w I 0 IV _.� , I „ . . — . ag 1 O N CD ID N X I + N X I + X X I + N X I + N X I + N X I + x X I + X X I + N x I + N X I + N X I + N X I + N X I + x X I + N X I + N X I + N X I + X X I + X X I + N X I + x X I + x X I f N X I + N X I + x x I + N X I + N X I + N X I + x x I + N X I + N X I + N X I + N X I + N X I + N x I + N X I + N X I + N X I + N X I + x X I + N X I + N X I + N X I + N X I + N X I + N X I + X X I + N X I + N X I + N X Communication to Those Charged with Governance City Of Tigard, Oregon June 30,2023 MOSSADAMS MOSSA DAMS Communication to Those Charged with Governance To the City Council Members City of Tigard, Oregon 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, Oregon (the City) as of and for the year ended June 30, 2023, and have issued our report thereon dated February 27, 2024. Professional standards require that we provide you with the following information related to our audit. Our Responsibility Under Auditing Standards Generally Accepted in the United States of America, Generally Accepted Government Auditing Standards, and Minimum Standards for Audits of Oregon Municipal Corporations As stated in our audit contract dated June 29, 2021, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Oregon Secretary of State. Those standards require that we plan and perform the audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting.Accordingly, we considered the City's internal control solely for the purposes of determining our audit procedures and not to provide assurance concerning such internal control. We are also responsible for communicating significant matters related to the financial statement audit that, in our professional judgment, are relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and previously communicated to you in our presentation to the audit committee on August 4, 2023. However, the audit was completed 2 months later than initially communicated in our presentation to the audit committee on August 4, 2023 due to a delay in the City's completion of year end audit schedules and closing journal entries. 1 Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in the notes to the financial statements. During the year ended June 30, 2023, the City adopted the provisions of GASB Statement No. 96, Subscription-Based Information Technology Arrangements. The financial statements and related disclosures have been updated to conform to the guidance under GASB 96. No other new accounting policies were adopted that impacted financial reporting and there were no changes in the application of existing policies during the fiscal year ended June 30, 2023.We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most significant estimates affecting the financial statements include: Net Pension Liability and Related Pension Expense—This represents the amount of annual expense recognized for pensions and the related pension asset or liability. The amount is actuarially determined, with OPERS management input. We have evaluated the key factors and assumptions used to develop the annual expense in determining that it is reasonable in relation to the combined and individual financial statements taken as a whole. Unbilled Revenue—Unbilled revenue is a measure of revenue earned through the end of the reporting period that has yet to be billed. This generally represents accounts with billing cycles that start in the reporting year and end in the subsequent year. We have evaluated the key factors and assumptions used to develop unbilled revenue in determining that it is reasonable in relation to the financial statements taken as a whole. Allowance for Doubtful Accounts—This represents an estimate of the amount of accounts receivable that will not be collected.We have evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole. Recovery Periods for the Cost of Capital Assets—This represents the depreciation of capital assets. We have evaluated the key factors and assumptions used to develop the recovery periods in determining that they are reasonable in relation to the financial statements taken as a whole. Other Post-Employment Benefit Obligations—This represents the amount of annual expenses recognized for post-employment benefits and the related asset or liability. The amount is actuarially determined with management input. We have evaluated the key factors and assumptions used to develop the annual expenses in determining that it is reasonable in relation to the financial statements taken as a whole. 2 Financial Statement Disclosures The disclosures in the financial statements are consistent, clear, and understandable. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. We did not note any disclosures in the financial statements which we consider sensitive to potential users. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. For purposes of this letter, professional standards define an audit adjustment as a proposed correction of the financial statements made subsequent to the start of audit final fieldwork. An audit adjustment may or may not indicate matters that could have a significant effect on the City's financial reporting process (that is, cause future financial statements to be materially misstated). We did not identify any audit adjustments during the course of our audit procedures: Passed adjustments are those entries found during the course of the audit that management has decided to not post to the financial statements. We did not identify any passed audit adjustments during the course of our audit procedures. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated February 27, 2024. Management Consultation with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion"on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Significant Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. ***** 3 This communication is intended solely for the information and use of management and the Council Members, and is not intended to be, and should not be, used by anyone other than these specified parties. (11%,-7/1c11/4/1•5- 1-(1' Portland, Oregon February 27, 2024 4 • • • • • • X • / • - X / { / • I 1 f M OSSADAMS X / + - X / + - X / + - X / + 1 ti. A.-,, , .4-1:-. � . _ ,.., 4,„ ... .. .. y ........ ...r' • . .. .- , ) ,.. .. . : .: -, „: 4, d ill" � It. 4 .- City of Tigard, Oregon Nil ' \ . , ANNUAL COMPREHENSIVE .. FINANCIAL REPORT FISCAL YEAR ENDING JUNE 30, 2023 0 J-�ill4— �� s !' , \i A. ` 41' • s 41.-' ' , i 94 i ft 1 r aI ..' .1 4 .11 ibT S r a �t 7 w 1 ... f • A e .f •� • _� �� A b ,.,*.00„ 7 f ,.'R ., �`' CITY O F Tigardi . /1 sp.. ‘.... ,, K' -• ` 13125 SW Hall Boulevard f ... Tigard, OR 97223 www.tigard-or.gov • • CITY OF Tigard City of Tigard, Oregon Annual Comprehensive Financial Report For the fiscal year ended, June 30, 2023 Prepared by: City of Tigard — Finance Department 1 No content appears on this page by design. 2 City of Tigard, Oregon Table of Contents Introductory Section Letter of Transmittal 9 Certificate of Achievement for Excellence in Financial Reporting 16 Organization Chart 17 Principal Officials 18 Financial Section Report of Independent Auditors 21 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 117 Schedule of the City's Proportionate Share of the Net Pension Liability(Asset) 118 Schedule of City's Contributions—Oregon Public Employees Retirement System 120 Schedule of the Changes in the City's Total OPEB Liability and Related Ratios—Implicit Rate Subsidy Plan 122 Schedule of the City's Proportionate Share of the Net OPEB Liability(Asset)—Oregon Public Employees Retirement System, Retirement Health Insurance Account 123 Schedule of the City's Contributions—Oregon Public Employees Retirement System, Retirement Health Insurance Account• 124 Other Supplementary Information: Nonmajor Governmental Funds Combining Statements: Combining Balance Sheet 127 Combining Statement of Revenues, Expenditures,and Changes in Fund Balances 128 Special Revenue Funds: Combining Balance Sheet—Nonmajor Special Revenue Funds 132 Combining Statement of Revenues, Expenditures,and Changes in Fund Balance 134 3 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 136 City Gas Tax Fund 137 Transportation Network Company Fee Fund 138 Transient Lodging Tax Fund 139 Construction Excise Tax Fund 140 Electrical Inspection Fund 141 Building Fund 142 Criminal Forfeiture Fund 143 Urban Forestry Fund 144 Parks Utility Fund 145 Police Levy Fund 146 Library Fund 147 Debt Service Funds: Combining Balance Sheet—Nonmajor Debt Service Funds 151 Combining Statement of Revenues, Expenditures,and Changes in Fund Balance—Nonmajor Debt Service Funds 152 Schedules of Revenues and Expenditures—Budget and Actual: Bancroft Bond Debt Service Fund 153 General Obligation Debt Service Fund 154 City Center Urban Renewal Debt Service Fund 155 Tigard Triangle Debt Service Fund 156 Capital Projects Funds: Combining Balance Sheet—Nonmajor Capital Projects Funds 160 Combining Statement of Revenues, Expenditures and Changes in Fund Balance—Nonmajor Capital Projects Funds 162 Schedule of Revenues and Expenditures—Budget and Actual: Facility Fund 164 Transportation Development Tax Fund 165 Underground Utility Fund 166 Street Maintenance Fee Fund 167 Transportation SDC Fund 168 Parks Capital Fund 169 Parks Bond Fund 170 Parks SDC Fund 171 Transportation CIP Fund 172 City Center Capital Improvements Fund 173 Tigard Triangle Capital Improvements Fund 174 Proprietary Funds: Enterprise Funds: Schedules of Revenues and Expenditures—Budget and Actual: Sanitary Sewer Fund 177 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses—Sanitary Sewer Fund 178 Stormwater Fund 179 Water Quality and Quantity Fund 180 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses—Stormwater Funds 181 Water Fund 182 Water SDC Fund 183 4 City of Tigard, Oregon Table of Contents,continued Financial Section,Continued Other Supplementary Information,Continued: Water CIP Fund 184 Water Debt Service Fund 185 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses—Water Funds 186 Reconciliation of Budgetary Fund Balance to Generally Accepted Accounting Principles Basis Net Position 187 Internal Service Funds: Combining Statement of Net Position 192 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 194 Combining Statement of Cash Flows 196 Schedules of Revenues and Expenditures—Budget and Actual: Central Service Fund 198 Information Technology Replacement Fund 199 Facilities Replacement Fund 200 Public Works Administration Fund 201 Public Works Engineering Fund 202 Fleet/Property Management Fund 203 Fleet/Vehicle Replacement Fund 204 Insurance Fund 205 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 5 City of Tigard, Oregon Table of Contents,continued Statistical Section,Continued Ratio of Debt by Type 248 Computation of Water Revenue Bonds Debt Coverage 250 Demographics Statistics 252 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 263 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 265 6 Introductory Section 8 e Ti CITY rd g February 27, 2024 Honorable Mayor Heidi Lueb, Members of the City Council, and Citizens of the City of Tigard, Oregon We are pleased to submit the Annual Comprehensive Financial Report of the City of Tigard, Oregon, for the fiscal year ended June 30, 2023, 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, 2023, 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, 2023, 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 30,2023,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 9 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 :4 1 •§* ` i downtown Portland, Oregon. The city is included in the Metro urban growth _ y,,..'. boundary, and Tigard's neighboring cities include Beaverton, Lake Oswego, ". 4, -• Tualatin, Durham, Portland,and King City.State Highway 99W,runs north and S * south through the eastern portion of the city as a major commuter corridor 11 � to the City of Portland. Interstate 5 and Highway 217 connect Tigard's 3 ��TA - residents and workforce to the regional economy of 2.5 million residents. 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 ''''-\. .....-...\.74111 and development to aid with transition from farmland to residential land over the next several decades. l Throughout fiscal year 2023, permitting and construction ywy?s phase of development of River Terrace continued. Full Portland build out of the area, originally expected to take roughly 20 years, is now expected to be largely complete within 15, in 2030. Upon completion, River Terrace is expected to = • _ Beaverton be home to around 6,500 to 8,000 new residents. More 4 4 information about Tigard's newest neighborhood is on the - m 5 city's website at: https://www.tigard-or.gov/your- government/departments/community- ' development/planning/projects/river-terrace. Tigard 4 �- The city is governed by an elected mayor and four council ,°� Lake members who comprise the city council.The city's charter �3 Oswego established the Council-Manager form of government. m Each member of the city council is elected at-large to serve Tualatin a four-year term. The mayor presides at council meetings and is elected at-large for a four-year term.The mayor and i-los council provide community leadership,develop policies to " \ 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 10 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. More than 68% of the city's residents are in the workforce and commute to a job somewhere else in the region. More than 41,000 residents from neighboring cities in the region are employed by a company based in 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, 2023, and has declined past pre-pandemic levels. Tigard's most current unemployment rate is 3.0 percent as of June 2023, which is 0.3 percent lower than the Portland Metro area and 0.5 percent lower than the State of Oregon. Unemployment trends 12.0% - - - - --- 10.0% -10.0% - - c 8.0% • 6.0% 4.0°% • 2.0% 0.0% - 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -United States 6.8% 5.5% 4.8% 3.7% 4.0% 4.0% 11.6% 5.2% 3.5% 3.6% -State of Oregon 6.1% 5.3% 4.9% 4.3% 4.0% 3.7% 11.1% 5.9% 3.6% 3.5% -Portland Metro 6.1% 5.4% 4.9% 3.7% 3.6% 4.0% 11.5% 5.4% 3.5% 3.3% -Washington County 5.6% 5.0% 4.7% 3.5% 3.5% 3.4% 10.4% 4.4% 3.0% 3.2% -City of Tigard 5.4% 4.5% 4.4% 3.5% 3.5% 3.4% 10.8% 4.4% 3.0% 3.0% Fiscal year 11 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, primarily manufacturers, investing in equipment, facilities, and people. This program offers a 100%tax abatement for three years on new capital investments when a firm also increases employment by 10%. Four manufacturers in Tigard currently participate in this program. City of Tigard's Non-profit Low Income Housing Limited Tax 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.Seven mixed use developments benefit from or will soon be enrolled in the program. 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 for the first four floors built above a first-story commercial space. This partial property tax exemption is not limited to low- income housing, though low-income projects receive an additional property tax exemption. Financial modeling show that a vertical housing-based tax exemption moves some multi-story mixed-use projects from the red to the black.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. 2023 Summary of Local Statistics Number of businesses 3,320 Median household income $101,000 Median home value $597,395 General fund permanent tax rate $2.5131 per$1,000 of assessed value Total assessed value (est. 2022/2023) $7,955,781,910 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 2023 —2029 CIP can be found online at https://www.tigard- or.gov/your-government/departments/public-works/capital-improvement-protects. 12 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 2023 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=CityOfTigard. 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. • 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. During the fiscal year 2023, City Council established goals for the city as follows: 1. Reduce Houselessness • Create transitional housing and secure wraparound services. • Adopt a time, place, and manner ordinance. • Create grant programs to support businesses. • Secure ongoing State funding to support houselessness programs. • Provide Council with options for tenant protections. 2. Address Climate Change • Prioritize carbon responsibility in the City of Tigard operations, projects, and policies. • Build understanding on the City's climate work and how the organization is supporting it. • Provide incentives for the community to transition to more climate friendly choices. 13 • Develop educational materials to build awareness and support homeowners and renters in reducing their carbon emissions. 3. Modernize and Improve City Services • Fund the necessary teammate and financial resources to implement the new Tyler ERP system. • Secure funding and acquire land for safe and modern public facilities. • Conduct an education and awareness campaign to build understanding and gauge levels of community support for facility modernization. 4. Enhance Community Safety and Accessibility • Identify and secure funding to complete the Hall Boulevard jurisdictional transfer. • Pass a public safety renewal levy to continue existing levy funding. • Increase funding to expand connectivity and support an active, healthy, accessible community. 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/cou ncil/council-goa Is. Other initiatives include: The city continues to work on implementation of the Tyler Technologies enterprise resource planning system, a citywide project that includes a replacement of all of the city's major software systems. The implementation of the finance modules are expected to be completed in the next fiscal year with other modules, such as utility billing, permitting, and asset management, expected to be completed through fiscal year 2025. In February 2023, the city expanded the River Terrace area by annexing an additional 500 acres to the west and south of the original River Terrace area. This new area referred to has River Terrace 2.0, is expected to accommodate 3,000 to 4,500 new units of housing and construction could begin as soon as Spring 2026. The city opened the Phase 1 of Universal Plaza to public in April 2023.An urban plaza located in Downtown Tigard with an interactive water feature and splash pad. The plaza hosts public spaces, food carts, bike and pedestrian connections overlooking Fanno Creek. Funding for Phase 2 of the project to construct an overhead canopy is still being explored. The Public Works department continues to work on the construction of Reservoir 18, a new water reservoir to replace a temporary pump station that services the city's 550-foot service area. This project will provide additional storage and pumping facilities to meet the demands for the build-out of the River Terrace Community Plan. The total project cost is approximately $34 million and expected to be completed in fiscal year 2025. Lastly, the city started construction of a new inclusive playground at Cook Family Park, the oldest and most well-known park in the city.The park features a new cutting edge design that incorporates accessible equipment throughout while remaining challenging for the general population. Construction of the playground is expected to be completed in the next fiscal year. 14 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, 2022. This was the 37th 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 2023. This was the 35th 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 2024 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, 2022. This is the fourth 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 2023 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, ._1 l 7 Steve Rymer Eric Kang City Manager Finance Director 15 GD 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, 2022 ar4.4 P- 2,te-- 4:a Executive Director/CEO 16 INTERNAL STRUCTURE & ORGANIZATIONAL CHART Tigard Community Mayor& Ci Councilors City Manager City Attorney 1 I 1 1 Assistant City Assistant City Manager I Manager Police Chief City Recorder Engagement& Investment& Innovation Infrastructure Information Community Technology evelo men: The Tigard Fleet&Facilities Public Library City Management Public Ihlor Finileance. Design & Communications Human Resources Municipal Court &Risk Management Management Analysts& Administration 17 City of Tigard, Oregon Principal Officials as of June 30, 2023 Elected Officials Name Term Expires Mayor Heidi Lueb December 31, 2026 Councilor Jeanette Shaw December 31, 2024 Councilor Maureen Wolf December 31, 2024 Councilor Yi-Kang Hu December 31, 2026 Councilor Jai Raj Singh December 31, 2026 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 18 Financial Section 19 20 MOSSADAMS Report of Independent Auditors The City Council City of 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, 2023, 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, 2023, 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. 21 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 27 through 41 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. 22 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 February 27, 2024, 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. 23 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 February 27, 2024, 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. Ai .,.,, ,..,... Keith Simovic, Partner for Moss Adams LLP Portland, Oregon February 27, 2024 24 Management's Discussion and Analysis 25 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, 2023. 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, 2023 by $596,618,322 (net position). Of this amount, $43,075,732 is restricted for transportation construction, maintenance and utility undergrounding, $10,665,255 is restricted for park development and improvements, $1,191,152 is restricted for tourism, $17,631,644 is restricted for water system construction and improvements, $8,989,229 is restricted for debt service, $12,270,314 is restricted for building development plan review and inspection, $617,648 is restricted for library capital improvements, $6,498,743 is restricted for urban development and improvements, $3,176,420 is restricted for law enforcement, and $170,699 is restricted for other post-employment benefits. $140,082,267 is unrestricted net position may be used to meet the city's ongoing obligations to citizens and creditors and $352,249,219 is for net investment in capital assets. • The city's total net position had a net increase of $42,846,262 or 7.7 percent from the June 30, 2022 net position. Governmental activities net position increased by $30,128,146, or 8.7 percent. The business-type activities net position increased by $12,718,116 or 6.2 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$130,147,744, a decrease of $3,396,377 or 2.5 percent from fiscal year 2022. Of the combined ending governmental fund balances, a deficit of $1,516,052 of unassigned fund balance is reported in the other governmental funds. • At the end of the fiscal year, assigned fund balance for subsequent year's budget appropriation of fund balance for the General Fund was $34,598,377. • The city's total debt decreased by$7,066,848 or 4.8 percent from fiscal year 2022. 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 28 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 27 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 pension 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$596,618,322 at June 30, 2023. The largest portion of the city's net position, approximately 59.0 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 $104,286,836 or approximately 17.5 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$140,082,267 or approximately 23.5 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 $42,846,262 or 7.7 percent during the current fiscal year. Total assets for governmental activities increased by approximately $29.6 million, or approximately 7.5 percent and $13.9 million for business-type activities, or approximately 4.1 percent. Noteworthy changes included an increase in cash and investments of approximately $21.8 million or 9.1 percent, due to an increase in the fair market value of investments and higher than expected interest earnings of$6.8 million and $16.6 million in reserves set aside to establish the Information Technology, Fleet, and Facilities Replacement Internal Service Funds. Capital assets also increased by$18.9 million. This increase is due to depreciation expense being less than the reinvestment in capital assets for the fiscal year ended June 30, 2023. 30 City of Tigard, Oregon Management's Discussion and Analysis Governmental activities liabilities increased by approximately $2.3 million or 5.4 percent. Noteworthy changes include an increase in accounts payable and net pension liability. This increase is due to the timing of accounts payable for construction in progress at the end of the fiscal year. Business-type activities total assets increased by approximately $13.9 million or 4.2 percent over the prior year. Cash and investments increased by approximately $2.8 million or 4.0 percent over the prior year. This increase is mainly due to higher utility rates. Capital assets increased by $5.2 million or 2.3 percent. This increase is due to depreciation expense being less than the reinvestment in capital assets for the fiscal year ended June 30, 2023. Total long-term debt for business-type activities decreased by approximately $3.9 million or 3.2 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 2023 2022 2023 2022 2023 2022 Current and other assets $171,646,337 $155,671,009 $ 108,563,543 $ 99,873,811 $280,209,880 $255,544,820 Capital assets 251,098,641 237,466,635 237,348,597 232,117,657 488,447,238 469,584,292 Total Assets 422,744,978 393,137,644 345,912,140 331,991,468 768,657,118 725,129,112 Deferred outflows of resources 4,136,149 4,561,665 3,544,380 3,574,113 7,680,529 8,135,778 Current and other liabilities 14,779,964 12,055,201 15,226,127 9,168,564 30,006,091 21,223,765 Long-term liabilities outstanding 30,688,690 31,065,644 114,747,103 119,639,473 145,435,793 150,705,117 Total Liabilities 45,468,654 43,120,845 129,973,230 128,808,037 175,441,884 171,928,882 Deferred inflows of resources 4,241,038 7,535,175 36,403 28,773 4,277,441 7,563,948 Net investment in capital assets 234,640,513 225,906,951 117,608,706 112,119,692 352,249,219 338,026,643 Restricted 84,143,756 80,791,413 20,143,080 20,172,795 104,286,836 100,964,208 Unrestricted 58,387,166 40,344,925 81,695,101 74,436,284 140,082,267 114,781,209 Total Net Position $377,171,435 $347,043,289 $ 219,446,887 $206,728,771 $596,618,322 $553,772,060 Total Net Position Restricted, 17.5% Unrestricted 23.5% Net investment in capital assets 59.0% 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 2023 2022 2023 2022 2023 2022 Revenues Program revenues: Fees,fines and charges for services $ 16,648,049 $ 15,539,923 $ 36,538,333 $ 33,798,787 $ 53,186,382 $ 49,338,710 Operating grants and contributions 11,630,053 17,770,216 - - 11,630,053 17,770,216 Capital grants and contributions 11,972,303 6,254,712 4,436,172 3,156,083 16,408,475 9,410,795 General revenues: Property taxes 26,011,521 25,117,084 - - 26,011,521 25,117,084 Franchise fees 7,765,651 7,272,781 - - 7,765,651 7,272,781 Unrestricted intergovernmental revenues 3,856,820 3,714,888 - - 3,856,820 3,714,888 Interest earnings 4,654,377 (2,181,844) 2,578,236 (1,313,073) 7,232,613 (3,494,917) Miscellaneous 319,841 644,102 141,451 175,456 461,292 819,558 Total revenues 82,858,615 74,131,862 43,694,192 35,817,253 126,552,807 109,949,115 Expenses Community services 31,597,313 27,313,548 - - 31,597,313 27,313,548 Public works 14,589,053 11,755,291 - - 14,589,053 11,755,291 Community development 8,905,011 6,395,322 - - 8,905,011 6,395,322 Policy and administration 1,176,827 4,715,974 - - 1,176,827 4,715,974 Interest on long-term debt 604,699 623,927 - - 604,699 623,927 Sanitary sewer - - 3,406,337 3,198,424 3,406,337 3,198,424 Stormwater - - 4,376,231 4,159,563 4,376,231 4,159,563 Water - - 19,051,074 17,946,555 19,051,074 17,946,555 Total expenses 56,872,903 50,804,062 26,833,642 25,304,542 83,706,545 76,108,604 Revenues over expenses 25,985,712 23,327,800 16,860,550 10,512,711 42,846,262 33,840,511 Transfers in(out) 4,142,434 753,276 (4,142,434) (753,276) - - Changes in net position 30,128,146 24,081,076 12,718,116 9,759,435 42,846,262 33,840,511 Beginning net position 347,043,289 322,962,213 206,728,771 196,969,336 553,772,060 519,931,549 Ending net position $377,171,435 $347,043,289 $219,446,887 $206,728,771 $596,618,322 $553,772,060 32 City of Tigard, Oregon Management's Discussion and Analysis Expenses and Program Revenues—Governmental activities—June 30, 2023 $35,000,000 - $30,000,000 - $25,000,000 - $20,000,000 - $15,000,000 - ■ Revenues $10,000,000 - ■ Expenses $5,000,000 - dl $0 T- vr`�y seN\ces Qvb\`G�otKs ae JeWC' ate\ •sttat`o or�tet�neat CO �� ���ty 1\2, a t or\ C° QO' �ntele5 Governmental Activities Governmental activities increased the city's net position by $30,128,146. This increase is more than the approximate $24.1 million increase in net position from governmental activities experienced in fiscal year 2022. Expenses were higher in all programs except Policy and Administration when comparing fiscal year 2023 to fiscal year 2022, and most revenues were higher, especially capital grants and contributions. Noteworthy reasons for the change from the prior year are as follows: • Property taxes constitute approximately 31.4 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 $.9 million or 3.6 percent over 2022. 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 $6.1 million decrease from fiscal year 2022. This decrease is due to receiving in fiscal year 2022 ARPA Act funding for reimbursement of expenses associated with the COVID-19 pandemic. • Capital grants and contributions increased $5.7m over fiscal year 2022 due to an increase in revenue from System Development Charges and Transportation Development Tax. • Overall expenses for governmental activities of $56,872,903 increased from the prior fiscal year by approximately $6.1 million. This increase was due to an increase in community services activities, public works, and community development. Revenues by Source—Governmental Activities-June 30, 2023 Capital grants and Property taxes contributions 31% 14% • Y ' " y Franchise fees 9% Operating grantsand contributions 14% Unrestricted intergovernmental revenues 5% Charges for Misc Interest earnings services 1% 6% 20% 34 City of Tigard, Oregon Management's Discussion and Analysis Business-type Activities Business-type activities increased the city's net position by$12,718,116. The primary reasons for the current year's increases are: • Charges for services represent approximately 83.6 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 $2.7 million or 8.1 percent over fiscal year 2022, with the largest increase in water revenues. • Expenses for water operations increased approximately$1.1 million or 6.2 percent from the prior fiscal year. The increase is primarily due to an increase in general and administrative expenses. Expenses and Program Revenues—Business-type Activities—June 30, 2023 $27,500,000 - $25,000,000 - $22,500,000 $20,000,000 - $17,500,000 - $15,000,000 - $12,500,000 - ■ Revenues $10,000,000 - UM Expenses $7,500,000 - $5,000,000 Ill 11. - $2,500,000 - �, $0 , Se�e1 �atet Iate< 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 2023, the city's governmental funds reported combined ending fund balances of$130,147,744 a decrease of$3,396,377 over the prior year. Approximately 28.4 percent or$36.9 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 $86,024,674 or 66.1 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 affordable housing, 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 2023, the assigned fund balance for subsequent year's budget appropriation of fund balance was $1,869,351 or approximately 5.3 percent of the total fund balance of $35,482,358. As a measure of the General Fund's liquidity, it may be useful to compare fund balance to total fund expenditures. Assigned fund balance represents 98.1 percent of total General Fund expenditures. The fund balance of the General Fund decreased by $6,210,041 or 14.9 percent. The decrease is primarily attributable to a one-time charge of $5,939,864 to fund and establish the Information Technology Replacement, Vehicle Replacement, and Facilities Replacement Internal Service Funds. 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 $81,695,101 with individual fund unrestricted net position at: • Sanitary Sewer $10,358,363 • Stormwater $9,834,354 • Water Funds $61,502,384 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 three supplementary budget amendments to the adopted General Fund budget. Total final adopted budgeted expenditures (including transfers out) increased by$2,945,049 from the original budgeted numbers. Budgeted General Fund contingency was decreased by $521,000 or 37.2 percent. Following are noteworthy changes from the original budget to the final adopted budget in the General Fund: • Transfers - Budget appropriation increases totaled $760,000 the majority of which was to fund one- time awards to frontline employees during the COVID-19 pandemic. 36 City of Tigard, Oregon Management's Discussion and Analysis • Community services — Budget appropriation increases totaled $1,944,469, the majority of which was to fund a revolving loan program administered by a consortium of three Community Development Financial Institutions to support the construction of middle housing. The contingency transactions account for an increase in budgeted expenditures not related to increased revenues. There was an increase to ending General Fund budgetary fund balance of $835,469 as a result of these budget amendments. Noteworthy variances from the final adopted budget to actual revenues in the General Fund are as follows: • Fines and forfeitures—variance with final budget of$(310,444) due to less than expected collections from photo enforcement program. • Franchise fees — variance with final budget of $515,529 due to higher-than-expected revenue from primarily the following franchise service providers: electric, gas, and garbage. • Interest earnings—variance with budget of$569,076 due by rising interest return on investments. Capital Asset and Debt Administration Capital Assets Governmental Activities The city's investment in capital assets for its governmental activities as of June 30, 2023, amounts to $251,098,641 (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 $13,632,006 or approximately 5.7 percent over the prior year. The city recorded approximately $1,800,700 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, 2023, amounts to $237,348,597 (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 increase in the city's investment in business-type activities capital assets was $5,230,940 or 2.3 percent. This increase is due to expenditures on capital assets being greater than depreciation expense, leading to an increase 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 2023 2022 2023 2022 2023 2022 Land $ 28,918,474 $ 28,918,474 $ 12,302,979 $ 12,302,979 $ 41,221,453 $ 41,221,453 Construction in progress 20,176,576 9,238,240 15,806,315 5,571,478 35,982,891 14,809,718 Subscription development in progress 1,069,653 - - - 1,069,653 - Buildings and improvements 11,489,950 11,860,875 67,242,066 69,140,250 78,732,016 81,001,125 Land improvements 10,509,214 9,293,954 7,505,761 7,505,761 18,014,975 16,799,715 Sewer system - - 17,582,255 17,877,069 17,582,255 17,877,069 Stormwater system - - 12,949,942 13,469,957 12,949,942 13,469,957 Water system - - 101,267,829 104,163,956 101,267,829 104,163,956 Machinery and equipment 708,462 426,262 1,309,549 1,766,025 2,018,011 2,192,287 Autos and trucks 1,815,204 1,725,451 1,381,901 320,182 3,197,105 2,045,633 Office equipment 762,140 982,976 - - 762,140 982,976 Infrastructure 175,648,968 175,020,403 - - 175,648,968 175,020,403 Total capital assets,net $ 251,098,641 $ 237,466,635 $ 237,348,597 $ 232,117,657 $ 488,447,238 $ 469,584,292 The following chart indicates the city's capital assets as of June 30, 2023. 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, Net of Depreciation Land Construction in progress 8.4% 7.4% Subscription development in ---- progress Infrastructure 0.2% 36.0% ----, Buildings and improvements 16.1% Autos and trucks 0.7% Office equipment 0.2% Land improvements 3.7% Machinery and Storm drainage system equipme 2.7% Sewer system 0.40 o Water system 3.6% 20.7% 38 City of Tigard, Oregon Management's Discussion and Analysis Debt Outstanding As of year-end, the city had total debt outstanding of $140,684,095. Of this amount $21,069,771 is general obligation and full faith and credit bonds; $118,379,855 represents water revenue bonds; $1,234,469 represents a note payable. Both general obligation bonds and full faith credit bonds are direct obligations pledging the full faith and credit of the city. Total debt decreased by$7,066,848 or approximately 4.8 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$8,372,700 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$1,234,469 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 $478 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, 2023. 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 2023 2022 2023 2022 2023 2022 General obligation $ 21,069,771 $ 24,185,316 $ - $ - $ 21,069,771 $ 24,185,316 Note payable - - 1,234,469 1,355,000 1,234,469 1,355,000 Revenue bonds - - 118,379,855 122,210,627 118,379,855 122,210,627 Total Outstanding Debt $ 21,069,771 $ 24,185,316 $ 119,614,324 $ 123,565,627 $ 140,684,095 $ 147,750,943 39 City of Tigard, Oregon Management's Discussion and Analysis Total Outstanding Long-Term Debt General obligation 15.0% Revenue bonds Note payable 84% 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 2023-2024: • The unemployment rate for the City of Tigard was 3.0 percent at the end of the fiscal year, June 30, 2023. This is less than the State of Oregon rate of 3.5 percent and the national average of 3.6 percent for June 2023. • Property tax revenues are the single largest sources of revenue in the General Fund and it accounts for 48 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 4.5 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 1 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, 2023, there were 3,320 businesses licensed in the city as compared to 3,122 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. • 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 2.22 percent in fiscal year 2024. Clean Water Services sets rates for sanitary sewer and storm water management (SWM). Fiscal year 2024 budget includes minor increases for sanitary sewer and stormwater management rates. 40 City of Tigard, Oregon Management's Discussion and Analysis All of these factors were considered in preparing the city's budget for fiscal year 2023-2024. The current forecast shows that in the short-term the city's financial condition is stable in most funds. The fiscal year 2023-2024 budget continued addressing a projected General Fund deficit that has been forecasted to occur in fiscal year 2028. City budgets are developed to address the continuing challenge of expenditure rates that outpace revenues. 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 30,2023 Governmental Business-Type ASSETS Total Activities Activities Cash and investments $ 73,181,374 $ 72,757,161 $ 145,938,535 Accounts receivable,net 7,467,533 7,006,670 14,474,203 Property taxes receivable 383,997 - 383,997 Inventory 2,770 813,046 815,816 Investment in joint venture - 2,226,882 2,226,882 Property held for resale - 445,042 445,042 Restricted cash and investments 90,439,964 25,314,742 115,754,706 Net other post-employment benefit asset 170,699 - 170,699 Capital assets: Capital assets not being depreciated 50,164,703 28,109,294 78,273,997 Other capital assets(net of accumulated depreciation) 200,933,938 209,239,303 410,173,241 Total assets 422,744,978 345,912,140 768,657,118 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pension 3,949,446 - 3,949,446 Deferred outflows related to OPEB 186,703 17,132 203,835 Deferred outflows related to bond refunding - 3,527,248 3,527,248 Total deferred outflows of resources 4,136,149 3,544,380 7,680,529 LIABILITIES Accounts payable and accrued liabilities 6,843,474 9,635,290 16,478,764 Deposits 2,156,322 19,225 2,175,547 Due to other entities/agencies 691,566 - 691,566 Unearned revenue 116,188 - 116,188 Accrued interest payable 47,607 1,505,710 1,553,317 Due within one year: Notes payable - 124,149 124,149 Bonds payable 3,296,773 3,845,024 7,141,797 Accrued compensated absences 1,628,034 96,729 1,724,763 Due in more than one year: Notes payable - 1,110,318 1,110,318 Internal balances 1,002,320 (1,002,320) - Bonds payable 17,772,998 114,534,833 132,307,831 Accrued compensated absences 67,835 3,281 71,116 Total other post-employment benefit liability 1,363,570 100,991 1,464,561 Net pension liability 10,481,967 - 10,481,967 Total liabilities 45,468,654 129,973,230 175,441,884 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pension 3,758,877 - 3,758,877 Deferred inflows related to OPEB 482,161 36,403 518,564 Total deferred inflows of resources 4,241,038 36,403 4,277,441 NET POSITION Net investment in capital assets 234,640,513 117,608,706 352,249,219 Restricted for: Transportation construction,maintenance,and utility undergrounding 43,075,732 - 43,075,732 Park development and improvements 10,665,255 - 10,665,255 Tourism 1,191,152 - 1,191,152 Water system construction and improvements - 17,631,644 17,631,644 Debt service 6,477,793 2,511,436 8,989,229 Building development plan review and inspection 12,270,314 - 12,270,314 Library capital improvements 617,648 - 617,648 Urban development and improvements 6,498,743 - 6,498,743 Law enforcement 3,176,420 - 3,176,420 Other post-employment benefits 170,699 - 170,699 Unrestricted 58,387,166 81,695,101 140,082,267 Total net position $ 377,171,435 $ 219,446,887 $ 596,618,322 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 30,2023 Program Revenues Fines,Fees and Operating Charges for Grants and Functions/Programs Expenses Services Contributions Governmental activities: Community services $ 31,597,313 $ 3,249,417 $ 6,127,434 Public works 14,589,053 7,477,618 5,502,619 Community development 8,905,011 5,886,994 - Policy and administration 1,176,827 34,020 - Interest on long-term debt 604,699 - - Total governmental activities 56,872,903 16,648,049 11,630,053 Business-type activities: Sanitary sewer 3,406,337 4,572,715 - Stormwater 4,376,231 5,776,197 - Water 19,051,074 26,189,421 - Total business-type activities 26,833,642 36,538,333 - Total $ 83,706,545 $ 53,186,382 $ 11,630,053 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 $ - $ (22,220,462) $ - $ (22,220,462) 11,972,303 10,363,487 - 10,363,487 - (3,018,017) - (3,018,017) - (1,142,807) - (1,142,807) - (604,699) - (604,699) 11,972,303 (16,622,498) - (16,622,498) 620,861 - 1,787,239 1,787,239 324,919 - 1,724,885 1,724,885 3,490,392 - 10,628,739 10,628,739 4,436,172 - _ 14,140,863 14,140,863 $ 16,408,475 (16,622,498) 14,140,863 (2,481,635) General Revenues: Property taxes levied for: General purposes 21,162,115 - 21,162,115 Debt service 2,610,501 - 2,610,501 Police local option levy 2,238,905 - 2,238,905 Franchise fees 7,765,651 - 7,765,651 Unrestricted intergovernmental revenues 3,856,820 - 3,856,820 Interest earnings 4,654,377 2,578,236 7,232,613 Miscellaneous 319,841 141,451 461,292 Total general revenues 42,608,210 2,719,687 45,327,897 Transfers between Governmental and Business-type activites 4,142,434 _ (4,142,434) - Change in net position 30,128,146 12,718,116 42,846,262 Net position,beginning 347,043,289 206,728,771 553,772,060 Net position,ending $ 377,171,435 $ 219,446,887 $ 596,618,322 47 CITY OF TIGARD,OREGON GOVERNMENTAL FUNDS-BALANCE SHEET June 30,2023 Other Total General Governmental Governmental Fund Funds Funds ASSETS Cash and investments $ 34,650,137 $ 8,595,741 $ 43,245,878 Accounts receivable 4,408,658 2,952,995 7,361,653 Property taxes receivable 285,511 98,486 383,997 Other receivable - 21,002 21,002 Advances to other funds 883,981 - 883,981 Restricted cash and investments - 90,439,964 90,439,964 Total assets $ 40,228,287 $ 102,108,188 $ 142,336,475 LIABILITIES Accounts payable and accrued liabilities $ 2,556,420 $ 3,117,192 $ 5,673,612 Deposits 450,440 1,528,145 1,978,585 Due to other entities/agencies 557,837 133,729 691,566 Advances from other funds - 1,886,301 1,886,301 Unearned revenue - 99,688 99,688 Total liabilities 3,564,697 6,765,055 10,329,752 DEFERRED INFLOWS OF RESOURCES Resources not yet available: Property taxes 236,861 56,092 292,953 Municipal court receivable 944,371 - 944,371 Transportation refund credits - 35,857 35,857 Intergovernmental receivables - 559,078 559,078 Special assessment liens - 26,720 26,720 Total deferred inflows of resources 1,181,232 677,747 1,858,979 FUND BALANCES Nonspendable: Advances to other funds 883,981 - 883,981 Restricted for: Street maintenance and improvements - 42,379,145 42,379,145 Tourism - 1,191,152 1,191,152 Affordable housing - 2,107,709 2,107,709 Debt service - 6,421,701 6,421,701 Park development and improvements - 10,665,255 10,665,255 Underground utilities - 696,587 696,587 Building inspection - 12,270,314 12,270,314 Police services - 3,176,420 3,176,420 Library improvements - 617,648 617,648 Urban development and improvements - 6,498,743 6,498,743 Committed for: Street maintenance and improvements - 5,180,071 5,180,071 Urban forestry - 1,099,927 1,099,927 Assigned to: City facilities - 900,476 900,476 Park and recreation - 2,976,290 2,976,290 Subsequent year's budget appropriation of fund balance 1,869,351 - 1,869,351 Unassigned 32,729,026 (1,516,052) 31,212,974 Total fund balances 35,482,358 94,665,386 130,147,744 Total liabilities,deferred inflows of resources and fund balances $ 40,228,287 $ 102,108,188 $ 142,336,475 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 30,2023 Fund Balances-Governmental Funds $ 130,147,744 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 $ 381,887,033 Less accumulated depreciation (130,788,392) 251,098,641 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 (10,481,967) Deferred outflows of resources related to pensions and OPEB 4,058,540 Deferred inflows of resources related to pensions and OPEB (4,044,868) (10,468,295) 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 292,953 Municipal court revenue earned but not available 944,371 Intergovernmental revenue earned but not available 559,078 Transportation refund credits but not available 35,857 Assessment liens but not available 26,720 1,858,979 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. 27,365,763 Accrued compensated absences are not due and payable in the current period and therefore are not (1,113,646) 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 (21,069,771) Accrued interest payable,not due and payable in the current period (47,607) Net other post-employment benefit(OPEB)asset 170,699 Total other post-employment benefit(OPEB)liability (771,072) Net Position of Governmental Activities $ 377,171,435 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 30,2023 Other Total General Governmental Governmental Fund Funds Funds REVENUES Taxes $ 19,024,176 $ 15,597,822 $ 34,621,998 Franchise fees 7,883,123 - 7,883,123 Special assessments - 32,136 32,136 Licenses and permits 1,269,212 4,050,889 5,320,101 Intergovernmental revenues 7,371,863 637,504 8,009,367 Charges for services 309,128 6,497,531 6,806,659 System development charges - 8,920,940 8,920,940 Fines and forfeitures 1,726,596 1,122,042 2,848,638 Interest earnings 869,751 2,048,296 2,918,047 Net increase(decrease) in investment fair value 243,048 693,281 936,329 Miscellaneous revenues 66,032 63,809 129,841 Total revenues 38,762,929 39,664,250 78,427,179 EXPENDITURES Current operating: Community services 29,711,120 2,163,007 31,874,127 Public works - 7,973,375 7,973,375 Community development 4,205,370 4,741,567 8,946,937 Policy and administration 1,360,826 - 1,360,826 Debt service: Principal - 3,109,700 3,109,700 Interest - 610,507 610,507 Capital outlay - 18,531,618 18,531,618 Total expenditures 35,277,316 37,129,774 72,407,090 Excess/(deficiency)of revenues over expenditures 3,485,613 2,534,476 6,020,089 OTHER FINANCING SOURCES(USES) Transfer in 189,000 13,998,425 14,187,425 Transfer out (9,884,654) (13,719,237) (23,603,891) Total other financing sources(uses) (9,695,654) 279,188 (9,416,466) Net change in fund balances (6,210,041) 2,813,664 (3,396,377) Fund balances-beginning of the year 41,692,399 91,851,722 133,544,121 Fund balances-end of year $ 35,482,358 $ 94,665,386 $ 130,147,744 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 30,2023 Net change in fund balances-Governmental Funds $ (3,396,377) 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 18,308,444 Current year depreciation expense (6,072,503) Contributed capital 1,800,700 Disposal of capital assets (404,635) 13,632,006 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds Change in unavailable property taxes 6,901 Change in unavailable municipal court revenue 446,891 Change in unavailable intergovernmental revenue 317,827 Change in unavailable franchise fees (117,472) Change in unavailable assessment liens (8,829) 645,318 Long-term debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of long-term debt is reported as an expenditure in the governmental funds, but a reduction of long-term liabilities in the Statement of Net Position. Principal payments 3,109,700 Amortization of premium on long-term debt 5,845 3,115,545 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 (37) Change in compensated absences 26,475 Pension expense 591,661 OPEB expense 7,370 625,469 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 15,506,185 Change in Net Position of Governmental Activities $ 30,128,146 The accompanying notes are an integral part of the basic financial statements. 51 CITY OF TIGARD,OREGON PROPRIETARY FUNDS STATEMENT OF NET POSITION June 30,2023 Business-type Activities- Governmental Enterprise Funds Activities- Sanitary Internal Sewer Stormwater_ Water Totals Service Funds ASSETS Current assets: Cash and cash equivalents $ 12,211,720 $ 9,496,873 $ 51,048,568 $ 72,757,161 $ 29,935,496 Accounts receivable 2,083,232 832,686 4,090,752 7,006,670 84,878 Property held for resale 185,021 260,021 - 445,042 - Inventory 15,509 15,509 782,028 813,046 2,770 Total current assets 14,495,482 10,605,089 55,921,348 81,021,919 30,023,144 Noncurrent assets: Restricted cash and cash equivalents - - 25,314,742 25,314,742 - Advances to other funds 1,002,320 - - 1,002,320 - Investment in joint venture - - 2,226,882 2,226,882 - Capital assets: Land and construction in process 422,405 2,862,708 24,824,181 28,109,294 - Other capital assets(net of accumulated depreciation) 18,246,093 13,902,378 177,090,832 209,239,303 - Total noncurrent assets 19,670,818 16,765,086 229,456,637 265,892,541 - Total assets 34,166,300 27,370,175 285,377,985 346,914,460 30,023,144 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to OPEB 3,875 4,190 9,067 17,132 77,609 Deferred outflows related to bond refunding - - 3,527,248 3,527,248 - Total deferred outflows 3,875 4,190 3,536,315 3,544,380 77,609 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 5,079,250 721,334 3,834,706 9,635,290 1,169,862 Unearned revenue - - - - 16,500 Deposits - - 19,225 19,225 177,737 Accrued interest payable - - 1,505,710 1,505,710 - Accrued compensated absences 32,253 22,608 41,868 96,729 560,099 Current portion of note payable - - 124,149 124,149 - Current portion of bonds payable - - 3,845,024 3,845,024 - Total current liabilities 5,111,503 743,942 9,370,682 15,226,127 1,924,198 Noncurrent liabilities: Accrued compensated absences 1,094 767 1,420 3,281 22,124 Note payable-long-term portion - - 1,110,318 1,110,318 - Bonds payable-long-term portion - - 114,534,833 114,534,833 - Total OPEB liability 22,551 21,949 56,491 100,991 592,498 Total noncurrent liabilities 23,645 22,716 115,703,062 115,749,423 614,622 Total liabilities 5,135,148 766,658 125,073,744 130,975,550 2,538,820 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to OPEB 8,166 8,267 19,970 36,403 196,170 NET POSITION Net investment in capital assets 18,668,498 16,765,086 82,175,122 117,608,706 - Restricted for capital projects - - 17,631,644 17,631,644 - Restricted for debt service - - 2,511,436 2,511,436 - Unrestricted 10,358,363 9,834,354 61,502,384 81,695,101 27,365,763 Total net position $ 29,026,861 $ 26,599,440 $ 163,820,586 $ 219,446,887 $ 27,365,763 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 30,2023 Business-type Activities- Governmental Enterprise Funds Activities- Sanitary Internal Sewer Stormwater Water Totals Service Funds OPERATING REVENUES Charges for services $ 4,572,715 $ 5,776,197 $ 26,189,421 $ 36,538,333 $ 25,759,254 Miscellaneous revenues 10,520 10,152 120,779 141,451 222,432 Total operating revenues 4,583,235 5,786,349 26,310,200 36,679,784 25,981,686 OPERATING EXPENSES Salaries and wages 453,286 834,972 1,125,104 2,413,362 13,118,570 Contracted services 30,015 441,392 2,504,315 2,975,722 3,260,425 General,administrative and other 2,047,136 2,312,511 6,586,138 10,945,785 8,547,407 Depreciation 875,900 783,205 5,335,387 6,994,492 - Total operating expenses 3,406,337 4,372,080 15,550,944 23,329,361 24,926,402 Operating income(loss) 1,176,898 1,414,269 10,759,256 13,350,423 1,055,284 NON-OPERATING REVENUES(EXPENSES) Interest earnings 268,400 188,796 1,545,658 2,002,854 724,746 Net increase(decrease)in investment fair value 57,968 52,225 465,189 575,382 75,255 Interest expense - - (3,291,748) (3,291,748) - Intergovernmental revenue - - - - 92,000 Loss on sale of capital assets - (4,151) - (4,151) - Loss on investment in joint venture - - (208,382) (208,382) - Total non-operating revenue(expense) 326,368 236,870 (1,489,283) (926,045) 892,001 Net income(loss)before contributions and transfers 1,503,266 1,651,139 9,269,973 12,424,378 1,947,285 CONTRIBUTIONS AND TRANSFERS System development revenue 175,895 218,610 3,183,196 3,577,701 - Capital contributions 444,966 106,309 307,196 858,471 - Transfers in - 601,253 - 601,253 15,558,900 Transfers out (1,473,782) (1,476,252) (1,793,653) (4,743,687) (2,000,000) Change in net position 650,345 1,101,059 10,966,712 12,718,116 15,506,185 Net position--beginning of year 28,376,516 25,498,381 152,853,874 206,728,771 11,859,578 Net position--end of year $ 29,026,861 $ 26,599,440 $ 163,820,586 $ 219,446,887 $ 27,365,763 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 30,2023 Business-type Activities- Governmental Enterprise Funds Activities- Sanitary Internal Sewer Stormwater Water Totals Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 16,686,510 $ 6,833,605 $ 25,035,209 $ 48,555,324 $ 25,700,516 Payments to suppliers (11,148,006) (3,456,187) (7,082,330) (21,686,523) (11,369,184) Payments to employees (454,311) (841,177) (1,124,499) (2,419,987) (13,123,244) Other receipts 10,520 10,152 120,779 141,451 222,432 Net cash provided(used)by operating activities 5,094,713 2,546,393 16,949,159 24,590,265 1,430,520 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Advance to other funds (900,000) - - (900,000) - Intergovernmental revenue - - - - 92,000 Transfers to other funds (1,473,782) (1,476,252) (1,793,653) (4,743,687) (2,000,000) Transfers from other funds - - - - 15,558,900 Net cash provided(used)by noncapital financing activities (2,373,782) (1,476,252) (1,793,653) (5,643,687) 13,650,900 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES System development revenue 175,895 218,610 3,183,196 3,577,701 - Principal payments - - (3,655,533) (3,655,533) - Interest payments - - (3,548,913) (3,548,913) - Transfers in for capital assets - 601,253 - 601,253 - Acquisition of capital assets (482,796) (2,258,302) (8,861,783) (11,602,881) - Net cash provided(used)by capital and related financing activities (306,901) (1,438,439) (12,883,033) (14,628,373) - CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings 326,368 241,021 2,010,847 2,578,236 800,001 Net increase(decrease)in cash and investments 2,740,398 (127,277) 4,283,320 6,896,441 15,881,421 Cash and investments--beginning of the year 9,471,322 9,624,150 72,079,990 91,175,462 14,054,075 Cash and investments--end of the year $ 12,211,720 $ 9,496,873 $ 76,363,310 $ 98,071,903 $ 29,935,496 RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income(loss) $ 1,176,898 $ 1,414,269 $ 10,759,256 $ 13,350,423 $ 1,055,284 Adjustments to reconcile operating income(loss) to net cash provided by operating activities: Cash flows reported in other categories: Depreciation expense 875,900 783,205 5,335,387 6,994,492 - Change in assets and liabilities: Receivables (113,563) (49,485) (1,160,062) (1,323,110) (83,946) Prepaid expenses - - - - 179,355 Inventory 11,234 11,234 (471,987) (449,519) (1,494) Accounts payable and accrued liabilities 3,145,269 393,375 2,480,110 6,018,754 282,000 Customer deposits - - - - Accrued compensated absences 6,842 14,616 (3,986) 17,472 (40,587) Deposits - - 5,850 5,850 3,995 Total OPEB liability and related balances (7,867) (20,821) 4,591 (24,097) 35,913 Net cash provided(used)by operating activities $ 5,094,713 $ 2,546,393 $ 16,949,159 $ 24,590,265 $ 1,430,520 Non-cash capital and related financing activities: Developer contributed sewer,stormwater and water lines $ 444,966 $ 106,309 $ 307,196 $ 858,471 $ - The accompanying notes are an integral part of the basic financial statements. 54 Notes to Basic Financial Statements 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 unit 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. 58 City of Tigard, Oregon Notes to Basic Financial Statements Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual proprietary funds are reported as separate 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 and proprietary 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, 2023, the city implemented the following GASB pronouncements: 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 was implemented by the city for the fiscal year ending June 30, 2023. 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. 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 was implemented by the city for the fiscal year ending June 30, 2023. 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. 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 outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. GASB Statement No. 96 was implemented by the city for the fiscal year ending June 30, 2023. As a result, management recorded a subscription development in progress in the amount of $1,069,653 to non-depreciable capital assets for governmental activities to recognize the subscription-based information technology arrangements that qualified under this statement. The following pronouncements have been issued by the Governmental Accounting Standards Board (GASB) but not yet implemented by the city: GASB Statement No. 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 62 City of Tigard, Oregon Notes to Basic Financial Statements • Clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, related to (a) the determination of 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 were effective for the City for the fiscal year ending June 30, 2023 and paragraphs 4-10 will be effective for the City for the fiscal year ending June 30, 2024. Management has determined that for GASB Statement No. 99 paragraphs 11-25 there is no impact to the city's current financial accounting and reporting for the types of transactions identified in this portion of the statement. 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, 2025. 63 City of Tigard, Oregon Notes to Basic Financial Statements GASB Statement No. 102, Certain Risk Disclosures This statement was issued December 2023 to improve financial reporting by providing users of financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints. This Statement defines a concentration as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government's highest level of decision-making authority. Concentrations and constraints may limit a government's ability to acquire resources or control spending.This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally,this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. If a government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government's vulnerability to the risk of a substantial impact. GASB Statement No. 102 will be effective for the City for the fiscal year ending June 30, 2025. The city will implement new GASB pronouncements no later than the required effective date. The city is currently evaluating whether or not the above listed new GASB pronouncements will have a significant impact to the city's financial statements. Assets, Deferred Outflows/Inflows of Resources, Liabilities, and Net Position/Fund Balance Cash and Investments Cash and cash equivalents are generally considered short-term, highly liquid investments with a maturity of three months or less from the purchase date. The city's cash and cash equivalents consists of cash on hand, demand deposits and cash deposits that are held in an investment pool, Local Government Investment Pool, that has the general characteristic of a demand deposit account(deposits of additional cash may be made at any time and cash may be withdrawn at any time without prior notice or penalty). Interest earned on cash and cash equivalents is allocated monthly based on each fund's average cash balance as a proportion of the city's total. For purposes of the statement of cash flows, the city considers the proprietary funds' cash and cash equivalents to be cash on hand, demand deposits and cash deposits that are held in an investment pool with original maturities of three months or less. 64 City of Tigard, Oregon Notes to Basic Financial Statements 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). 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. 65 City of Tigard, Oregon Notes to Basic Financial Statements 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, infrastructure, and subscription development in progress assets (e.g. roads, pathways, streetlights, etc.) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements, and in the proprietary fund statements. Capital assets are charged to expenditures as purchased or constructed in the governmental fund statements and capitalized in the proprietary fund statements. Capital assets are recorded at historical cost or estimated historical cost. Donated assets, donated works of art and similar items,and capital assets received in a service concession arrangement are recorded at acquisition value. Capital assets are defined by the city as assets with an initial, individual cost of $5,000 or more, and an estimated useful life of greater than one year. Additions or improvements and other capital outlays that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are capitalized. Other costs for repairs and maintenance are expensed as incurred. 66 City of Tigard, Oregon Notes to Basic Financial Statements 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. The city recognizes a deferred charge related to bond refunding as the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. 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. 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. 67 City of Tigard, Oregon Notes to Basic Financial Statements 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, related to the Implicit Rate Subsidy, is recognized as a long-term liability in the government-wide financial statements, the amount of which is actuarially determined. The city's net other post-employment benefit asset, related to the RHIA plan of the Oregon Public Employees Retirement System, is recognized as an asset 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). The net pension liability is measured as the portion of the present value of projected benefits payment to be provided through the pension plan to current active and inactive qualifying employees that is attributed to those employees' past periods of service less the amount of the pension plan's fiduciary net position. 68 City of Tigard, Oregon Notes to Basic Financial Statements 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 which 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. 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. 69 City of Tigard, Oregon Notes to Basic Financial Statements 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 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. 70 City of Tigard, Oregon Notes to Basic Financial Statements 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, Capital Improvements and Contingency. The detail budget document is required to contain more detailed information for the above-mentioned expenditure categories. 71 City of Tigard, Oregon Notes to Basic Financial Statements 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 three 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. The city's actual expenditures were within budgeted amounts for the year ended June 30, 2023, except for the General Obligation Debt Service Fund reported an over expenditure of $968 in debt service. 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 to 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, 2023, 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, 2023, the fair value of the corporate indebtedness was $6,511,890. For additional details on investments see Note 3. 72 City of Tigard, Oregon Notes to Basic Financial Statements 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. Cash and investments, restricted and unrestricted, at June 30, 2023: Primary Type Government Deposits with financial institutions $ 44,781,499 Cash deposits 44,781,499 Cash with fiscal agent 59,979 Petty cash/cash on hand 9,186 Total cash 44,850,664 State Investment Pool (LGIP) 51,482,121 U.S. Agencies 149,323,266 Corporate Bonds 12,050,550 Treasury Bill 3,986,640 Total investments 216,842,577 Total cash and investments $ 261,693,241 Governmental Business Type Activities Activities Total Cash and investments $ 73,181,374 $ 72,757,161 $ 145,938,535 Restricted cash and investments 90,439,964 25,314,742 115,754,706 Total cash and investments $ 163,621,338 $ 98,071,903 $ 261,693,241 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 includes bank demand deposits accounts. The combined total book balance at June 30, 2023 was$44,781,499 and the total bank balance is$44,439,282. Of these deposits, $500,000 was covered by federal depository insurance and 43,939,282 was collateralized in accordance with ORS 295.The Federal Depository Insurance Corporation (FDIC) provides deposit insurance up to $250,000 for each institution. 73 City of Tigard, Oregon Notes to Basic Financial Statements Institutions with deposits in excess of FDIC coverage participate in the Oregon Public Funds Collateralization Program (PFCP) as defined in Oregon Revised Statutes (ORS) 295.This provides additional protection for public funds in the event of a bank failure, although it does not guarantee 100 percent protection. The Office of the State Treasurer categorizes the financial institutions in Oregon. Based on that categorization, banks must pledge collateral valued at between 10 percent and 110 percent of their public fund deposits. In the event of a bank failure, the entire pool of collateral pledged by all qualified Oregon public funds bank depositories is available to repay deposits of public funds of government entities. The Office of the State Treasurer maintains a list of qualified financial institutions for the deposit of public funds in excess of FDIC insurance. The financial institutions holding city deposits are noted on the State Treasurer's qualified list. In addition, the city's policy states bank deposits of any one qualified financial institution shall not exceed 1 percent of the institution's total assets. The city is in compliance with this policy at year-end. Investments For an investment,custodial credit risk 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, 2023, the city's fair value in the LGIP was $51,482,121. Financial statement for the Oregon Short-Term Fund can be found online at: http://www.oregon.gov/treasury/Divisions/Investment/Pages/Oregon-Short-Term-Fund- (OSTF).aspx 74 City of Tigard, Oregon Notes to Basic Financial Statements In accordance with the implementation of GASB Statement No. 72,Fair Value Measurement and Application, the city categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows: Level 1 - unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access. Level 2 - other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, loss severities, credit risks and default rates) or other market-corroborated inputs). Level 3 - unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including each Fund's own assumptions used in determining the fair value of investments). The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. 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 at June 30, 2023: Fair Value Fair Value Measurement Amortized Cost Not Local Government Investment Pool (LGIP) $ 51,482,121 Measured at Fair Value U.S. Agencies 149,323,266 Level 2 Corporate Bonds 12,050,550 Level 2 Treasury Bill 3,986,640 Level 1 Total Investments $ 216,842,577 75 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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, 2023, the city had the following investments and maturities at fair value: Weighted Average Maturity Risk (in Fair Value Concentration months) Local Government Investment Pool (LGIP) * $ 51,482,121 23.7% 0.03 U.S. Agencies 149,323,266 68.9% 13.57 Corporate Bonds 12,050,550 5.6% 17.44 Treasury Bill 3,986,640 1.8% 0.90 Total Investments $ 216,842,577 100.0% Portfolio weighted average maturity 10.34 * 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. 76 City of Tigard, Oregon Notes to Basic Financial Statements 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. At June 30, 2023, the city's investments were rated as follows: % of Fair Investment Type Moody's S & P Fair Value Value State Investment Pool (LGIP) N/R N/R $ 51,482,121 23.7% Corporate Bonds Al A- 5,538,660 2.6% Corporate Bonds A2 BBB+ 6,511,890 3.0% US Instrumentality: FHLB AAA AA+ 17,255,816 8.0% US Instrumentality: FHLMC AAA AA+ 4,468,500 2.1% US Instrumentality: Treasury Note AAA N/R 120,776,400 55.7% US Instrumentality: Treasury Note NA N/R 6,822,550 3.1% US Instrumentality: Treasury Bill N/R N/R 3,986,640 1.8% Total Investments $ 216,842,577 100.0% 77 City of Tigard, Oregon Notes to Basic Financial Statements 4. Accounts Receivable Accounts receivable as of June 30, 2023 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 for Gross Doubtful Receivables, Accounts Taxes Receivables Accounts Net Governmental Activities General $ 8,500,617 $ 285,511 $ 8,786,128 $ (4,070,957) $ 4,715,171 Nonmajor governmental 2,952,995 98,486 3,051,481 - 3,051,481 Internal service 84,878 - 84,878 - 84,878 $ 11,538,490 $ 383,997 $ 11,922,487 $ (4,070,957) $ 7,851,530 Business-Type Activities Sanitary sewer $ 2,083,232 $ - $ 2,083,232 $ - $ 2,083,232 Stormwater 832,686 - 832,686 - 832,686 Water 4,090,752 - 4,090,752 - 4,090,752 $ 7,006,670 $ - $ 7,006,670 $ - $ 7,006,670 Total receivables $ 14,858,200 Reported on the Statement of Net Positions as: Accounts receivable, net $ 14,474,203 Property taxes receivable 383,997 $ 14,858,200 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, 2023, $5,427,940 was outstanding for municipal court receivables with a related allowance for doubtful accounts of$4,070,957. 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, 2023, the portion of the assessments receivable balance that represents delinquent accounts is insignificant. 78 City of Tigard, Oregon Notes to Basic Financial Statements 5. Capital Assets Capital assets activity for governmental activities for the year ended June 30, 2023 was as follows: Balances Balances Governmental activities June 30,2022 Additions Deletions Transfers June 30,2023 Non-depreciable: Land $ 28,918,474 $ - $ - $ - $ 28,918,474 Construction in progress 9,238,240 16,169,297 (390,221) (4,840,740) 20,176,576 Subscription development in progress - 1,069,653 - - 1,069,653 Total non-depreciable 38,156,714 17,238,950 (390,221) (4,840,740) 50,164,703 Depreciable: Building and improvements 24,143,172 161,599 - 119,685 24,424,456 Land improvements 18,863,636 - - 1,852,971 20,716,607 Machinery and equipment 3,240,102 232,493 (20,624) 218,927 3,670,898 Autos and trucks 4,280,638 640,188 (195,121) - 4,725,705 Office equipment 4,571,110 121,949 - - 4,693,059 Infrastructure 269,128,483 1,713,965 - 2,649,157 273,491,605 Total depreciable 324,227,141 2,870,194 (2.15,745) 4,840,740 331,722,330 Accumulated depreciation: Building and improvements (12,282,297) (652,209) - - (12,934,506) Land improvements (9,569,682) (637,711) - - (10,207,393) Machinery and equipment (2,813,840) (169,220) 20,624 - (2,962,436) Autos and trucks (2,555,187) (536,021) 180,707 - (2,910,501) Office equipment (3,588,134) (342,785) - - (3,930,919) Infrastructure _ (94,108,080) (3,734,557) - - (97,842,637) Total accumulated depreciation (124,917,220) (6,072,503) 201,331 - (130,788,392) Net depreciable assets 199,309,921 (3,202,309) (14,414) 4,840,740 200,933,938 Governmental activities capital assets, net $ 237,466,635 $ 14,036,641 $ (404,635) $ - $ 251,098,641 Depreciation expense for governmental activities is charged to functions as follows: Community services $ 313,538 Public works 5,553,386 Community development 7,306 Policy and administration 198,273 Total depreciation for governmental activities $ 6,072,503 79 City of Tigard, Oregon Notes to Basic Financial Statements Capital assets activity for business-type activities for the year ended June 30, 2023 was as follows: Balances Balances Business-type activities June 30,2022 Additions Deletions Transfers June 30,2023 Non-depreciable: Land $ 12,302,979 $ - $ - $ - $ 12,302,979 Construction in progress 5,571,478 10,234,837 - - 15,806,315 Total non-depreciable 17,874,457 10,234,837 - - 28,109,294 Depreciable: Building and improvements 77,323,567 - - - 77,323,567 Land Improvements 7,505,761 - - - 7,505,761 Sewer system 33,311,447 444,967 - - 33,756,414 Stormwater system 24,988,716 106,309 - - 25,095,025 Water system 148,817,542 307,196 - - 149,124,738 Equipment 4,358,911 - (255,262) - 4,103,649 Autos and trucks 2,364,186 1,138,999 (233,415) - 3,269,770 Total depreciable 298,670,130 1,997,471 (488,677) - 300,178,924 Accumulated depreciation: Building and improvements (8,183,317) (1,898,184) - - (10,081,501) Sewer system (15,434,378) (739,781) - - (16,174,159) Stormwater system (11,518,759) (626,324) - - (12,145,083) Water system (44,653,586) (3,203,323) - - (47,856,909) Equipment (2,592,886) (262,029) 60,815 - (2,794,100) Autos and trucks (2,044,004) (264,851) 420,986 - (1,887,869) Total accumulated depreciation (84,426,930) (6,994,492) 481,801 - (90,939,621) Net depreciable assets 214,243,200 (4,997,021) (6,876) - 209,239,303 Business-type activities capital assets, net $ 232,117,657 $ 5,237,816 $ (6,876) $ - $ 237,348,597 Depreciation expense for business-type activities is charged to activities as follows: Sanitary sewer $ 875,900 Stormwater 783,205 Water 5,335,387 Total depreciation for business-type activities $ 6,994,492 80 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 2021B Federally Taxable bonds. The bonds were issued to fund Urban Renewal projects within the TCDA. In connection with the financing agreement, TCDA and the city executed an intergovernmental agreement (IGA) for TCDA 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, 2023, the outstanding balance on the bonds was $3,237,000 for the Series 2021A and $918,700 for the Series 2021B. Future maturities on the bond principal and interest on the 2021 FFC bonds are as follows: Total Debt Series 2021A Series 2021B 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 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 307,800 53,302 240,300 39,124 67,500 14,178 2029-2033 1,623,900 181,891 1,263,900 133,307 360,000 48,584 2034-2036 1,045,800 37,686 810,800 27,557 235,000 10,129 $ 4,155,700 $ 539,215 $ 3,237,000 $ 395,762 $ 918,700 $ 143,453 TCDA 2019 Full Faith and Credit Bonds In fiscal year 2019-2020, the city issued $1,896,000 in Series 2019A Tax-Exempt bonds, and $4,033,000 Series 2019B Federally Taxable bonds. The bonds were issued to fund Urban Renewal projects within the TCDA. In connection with the financing agreement, TCDA and the city executed an intergovernmental agreement (IGA) for TCDA to be obligated for the debt service payments on the bonds. The IGA constitutes indebtedness of the agency in the amount of the financing or$5,929,000. Pursuant to ORS 287A.310,the agency pledges the tax increment revenues to pay the financing payments or debt service. The outstanding bonds carry an Event of Default clause which allows the lender to exercise any remedy available at law or in equity, with the exception of acceleration. At June 30, 2023, the outstanding balance on the bonds was $1,650,000 for the Series 2019A and $3,536,000 for the Series 2019B. 81 City of Tigard, Oregon Notes to Basic Financial Statements Future maturities of bond principal and interest on the 2019 FFC 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 2024 $ 262,000 $ 144,666 $ 86,000 $ 38,940 $ 176,000 $ 105,726 2025 269,000 137,374 88,000 36,910 181,000 100,464 2026 276,000 129,886 90,000 34,834 186,000 95,052 2027 284,000 122,201 92,000 32,710 192,000 89,491 2028 293,000 114,288 95,000 30,538 198,000 83,750 2029-2033 1,586,000 444,663 507,000 118,094 1,079,000 326,569 2034 2,216,000 61,898 692,000 16,332 1,524,000 45,566 $ 5,186,000 $ 1,154,976 $ 1,650,000 $ 308,357 $ 3,536,000 $ 846,618 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, 2023, the outstanding balance on the bonds was $4,652,000. Future maturities of bond principal and interest on the 2020 GO Refunding Bonds are as follows: Year Ending June 30, Principal Interest Total 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 $ 4,652,000 $ 122,610 $ 4,774,610 82 City of Tigard, Oregon Notes to Basic Financial Statements Other Debt 2021 TCDA Bond: In fiscal year 2021-2022, the city issued $4,687,800 of urban renewal bonds backed by tax increment revenue generated from within the TCDA.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, 2023, the outstanding balance on the 2021 bond was $4,217,000. Future maturities of bond principal and interest on the 2021 TCDA bond are as follows: Year Ending June 30, Principal Interest Total 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 305,000 87,763 392,763 2029-2033 1,660,300 303,371 1,963,671 2034-2036 1,114,100 64,097 1,178,197 $ 4,217,000 $ 888,476 $ 5,105,476 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. During the year ended June 30, 2023, the outstanding balance of$885,000 was paid in full. 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, and 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 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, 2023, the outstanding balance on the bonds was$2,850,000 and the balance of the unamortized premium was $9,071. 83 City of Tigard, Oregon Notes to Basic Financial Statements Future maturities of bond principal and interest on the Parks Bonds are as follows: Year Ending June 30, Principal Interest Total 2024 $ 910,000 $ 118,850 $ 1,028,850 2025 950,000 82,450 1,032,450 2026 990,000 42,075 1,032,075 $ 2,850,000 $ 243,375 $ 3,093,375 Premium 9,071 Total $ 2,859,071 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. 84 City of Tigard, Oregon Notes to Basic Financial Statements At June 30, 2023, the balance on the note payable was $1,234,469. Future debt service requirements are as follows: Year Ending June 30, Principal Interest Total 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 139,731 21,452 161,183 2029-2032 575,344 42,613 617,957 Total $ 1,234,469 $ 189,404 $ 1,423,873 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, 2023, the outstanding balance on the bonds was $84,655,000 and the balance of the unamortized premium was $1,080,385. 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 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 3,715,000 1,662,813 5,377,813 2029-2033 19,735,000 7,155,507 26,890,507 2034-2038 22,000,000 4,881,215 26,881,215 2039-2043 25,065,000 1,818,509 26,883,509 84,655,000 $ 22,890,494 $ 107,545,494 Premium 1,080,385 Total $ 85,735,385 85 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 defeased. During the year ended June 30, 2023, the balance of the 2012 water revenue bonds of $2,365,000 was paid in full and the balance of the premium of$120,990 was fully amortized. 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 the city to help finance the joint water supply project with the City of Lake Oswego (Lake Oswego/Tigard Water Partnership project).At June 30, 2023, the balance of the 2015 water revenue bonds was $29,565,000 and the balance of the unamortized premium was $3,079,470. Future maturities of bond principal and premium and interest on the 2015 revenue bonds are as follows: Year Ending June 30, Principal Interest Total 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 245,000 1,422,975 1,667,975 2029-2033 1,400,000 6,927,500 8,327,500 2034-2038 1,795,000 6,543,125 8,338,125 2039-2043 2,310,000 6,032,500 8,342,500 2044-2046 22,930,000 1,758,000 24,688,000 29,565,000 $ 28,473,000 $ 58,038,000 Premium 3,079,470 Total $ 32,644,470 86 City of Tigard, Oregon Notes to Basic Financial Statements Net water system revenues and system development charges for the Water System are pledged to the payment of principal and interest on the revenue bonds. Net system revenues for fiscal year 2023 were $17,081,463 as compared to the total debt service of$7,043,263. The computation of water revenue bonds debt coverage is as follows: Gross revenues $ 27,296,414 System Development Charges (SDC) related: SDC Fund interest earnings (loss) 366,519 Reimbursement fee receipts 1,442,870 Improvement fee receipts 1,740,326 Total SDC-related 3,549,715 Operating expense: Salaries and wages 1,130,422 Contracted services 612,201 Water purchases 1,892,114 General, admin and other 6,580,214 Total operating expenses 10,214,951 Net revenues (including SDCs) 20,631,178 Net revenues (excluding SDCs) $ 17,081,463 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) 2.43 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. 87 City of Tigard, Oregon Notes to Basic Financial Statements Long-term debt activity, including compensated absences,for the year ended June 30, 2023 was as follows: Balances Balances Due in one June 30,2022 Additions Retirements June 30,2023 year Governmental activities Direct borrowings and placements Bonds payable $ 5,201,000 $ - $ (549,000) $ 4,652,000 $ 1,561,000 Bonds payable(TCDA) 14,359,400 - (800,700) 13,558,700 821,300 Total direct borrowings and placements 19,560,400 - (1,349,700) 18,210,700 2,382,300 Other debt Bonds payable 4,610,000 - (1,760,000) 2,850,000 910,000 Total governmental debt 24,170,400 - (3,109,700) 21,060,700 3,292,300 Premium on bonds 14,916 - (5,845) 9,071 4,473 Other long-term liabilities Compensated absences 1,762,931 2,461,885 (2,528,947) 1,695,869 1,628,034 Governmental activities $ 25,948,247 $ 2,461,885 $ (5,644,492) $ 22,765,640 $ 4,924,807 Business-type activities Direct borrowings and placements Note payable $ 1,355,000 $ - $ (120,531) $ 1,234,469 $ 124,149 Bonds payable 85,625,000 - (970,000) 84,655,000 3,430,000 Total direct borrowings and placements 86,980,000 - (1,090,531) 85,889,469 3,554,149 Other debt Bonds payable 32,130,000 - (2,565,000) 29,565,000 210,000 Total business-type debt 119,110,000 - (3,655,531) 115,454,469 3,764,149 Premium on bonds 4,455,627 - (295,772) 4,159,855 205,024 Other long-term liabilities Compensated absences 82,538 162,717 (145,245) 100,010 96,729 Business-type activities $123,648,165 $ 162,717 $ (4,096,549) $ 119,714,333 $ 4,065,902 Expenditures for liquidating other long-term liabilities, including compensated absences are recorded in the General, various nonmajor Special Revenue, Enterprise, and Internal Service funds. 88 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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, 2023 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 1,002,320 - 1,002,320 $ 1,886,301 $ (883,981) $ 1,002,320 Future maturities on the interfund loans are as follows: Interfund Loans Elimination Net Balance Year Ending June 30, Principal Interest Principal Interest Principal Interest 2024 $ 74,788 $ 45,878 $ (74,788) $ (45,366) $ - $ 512 2025 91,743 42,849 (16,955) (5,887) 74,788 36,962 2026 130,195 39,627 (42,374) (5,694) 87,821 33,933 2027 158,569 36,088 (67,546) (5,357) 91,023 30,731 2028 162,366 32,290 (68,014) (4,889) 94,352 27,401 2029-2033 932,529 97,985 (405,977) 21,017 526,552 119,002 2034-2038 281,216 16,226 (153,432) (11,740) 127,784 4,486 2039-2042 54,895 1,973 (54,895) (1,973) - - $ 1,886,301 $ 312,916 $ (883,981) $ (59,889) $ 1,002,320 $ 253,027 89 City of Tigard, Oregon Notes to Basic Financial Statements Transfers for fiscal year ended June 30, 2023 are as follows: Transfer To Transfer From Amount Purpose General Nonmajor Governmental $ 189,000 $ 189,000 Unrestricted portion of the city's transient lodging tax Nonmajor Governmental General 2,677,555 Fund park and various other operations Fund parks,transportation and various other capital Nonmajor Governmental 10,842,019 projects Stormwater 438,835 Fund stormwater of a city-wide facilities project Fund sanitary sewer component of a city-wide facilities Sanitary Sewer 4,079 project Fund water component of a city-wide faciities project Water 35,937 and a transportation capital project 13,998,425 Stormwater Sanitary Sewer 601,253 601,253 Fund stormwater component of sewer project Funding of central services,public works administration Internal Service General 7,207,099 and engineering Nonmajor Governmental 2,688,217 Capital project funding contracting and accounting Sanitary Sewer 868,450 Capital project funding contracting,accounting,and Stormwater 1,037,417 Water 1,757,717 public works engineering Internal Service 2,000,000 Funding for contracting and accounting 15,558,900 $ 30,347,578 Reconciliation: Transferred to governmental funds from: Sanitary Sewer Fund $ 872,529 Stormwater Fund 1,198,417 Water Fund 2,071,488 Total transfers per Statement of Activities $ 4,142,434 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. 90 City of Tigard, Oregon Notes to Basic Financial Statements The amounts on the financial statements relate to the plans as follows: Total OPEB on Implicit Rate PERS RHIA Statement of Subsidy Plan Plan Net Position Net OPEB Asset $ - $ 170,699 $ 170,699 Deferred Outflows of Resources Differences Between Expected and Actual Experience 100,873 - 100,873 Changes in Proportionate Share - 10,527 10,527 Change of Assumptions 28,559 1,337 29,896 Contributions Subsequent to the Measurement Date 62,404 135 62,539 Total Deferred Outflows of Resources 191,836 11,999 203,835 Total OPEB Liability 1,464,561 - 1,464,561 Deferred Inflows of Resources Differences Between Expected and Actual Experience 113,194 4,626 117,820 Changes in Proportionate Share - 10,329 10,329 Change of Assumptions 371,707 5,690 377,397 Net Difference Between Projected and Actual Earnings - 13,018 13,018 Total Deferred Inflows of Resources 484,901 33,663 518,564 OPEB Expense(Income) 84,943 (20,694) 64,249 (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. 91 City of Tigard, Oregon Notes to Basic Financial Statements 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 responsible for the premiums. As of the valuation date of July 1, 2022, the following employees were covered by the benefit terms: Inactive employees or beneficiaries receiving benefits 8 Active employees 295 303 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 $1,464,561 was measured as of June 30, 2022, and was determined by an actuarial valuation as of July 1, 2022. For the fiscal year ended June 30, 2023, the city recognized OPEB expense from this plan of $84,943.At June 30, 2023,the city reported deferred outflows of resources and deferred inflows of resources related to this OPEB plan from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources Differences between expected and actual experience $ 100,873 $ 113,194 Changes of assumptions 28,559 371,707 Total (prior to post-MD contributions) 129,432 484,901 Contributions subsequent to the measurement date 62,404 - Tota I $ 191,836 $ 484,901 Deferred outflows of resources related to OPEB of $62,404 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, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Net Deferred Outflows/(Inflows) Amortization Period Ending June 30, 2024 $ (84,377) 2025 (83,157) 2026 (72,186) 2027 (48,850) 2028 (28,869) Thereafter (38,030) $ (355,469) 92 City of Tigard, Oregon Notes to Basic Financial Statements Actuarial Assumptions and Other Inputs The total OPEB liability in the July 1, 2022 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 2.4 percent Salary increases 3.4 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 3.54 percent(change from 2.16 percent in previous measurement period) Healthcare cost trend rate Medical and vision:6.75 percent per year,decreasing to 3.75 percent Dental:4.00 percent per year,decreasing to 3.75 percent 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, 2022 $ 1,471,748 Changes for the year: Service cost 134,972 Interest on total OPEB liability 34,348 Effect of change to benefit terms - Effect of economic/demographic gains and losses 108,027 Effect of assumptions changes or inputs (251,275) Benefit payments (33,259) Balance as of June 30,2023 $ 1,464,561 Changes in assumptions is the result of the change in the discount rate from 2.16 percent to 3.54 percent; inflation rate decreased from 2.5 percent to 2.4 percent; and salary increases decreased from 3.5 percent to 3.4 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 (2.54 percent) or 1- percentage-point higher (4.54 percent) than the current discount rate. A similar sensitivity analysis is then presented for changes in the healthcare trend assumption. 93 City of Tigard, Oregon Notes to Basic Financial Statements Discount Rate: 1% Decrease Current Discount 1% Increase (2.54%) Rate (3.54%) (4.54%) Total OPEB Liability $ 1,586,047 $ 1,464,561 $ 1,351,749 Healthcare Cost Trend: Current Health 1% Decrease Care Trend Rate 1% Increase (5.75%) (6.75%) (7.75%) Total OPEB Liability $ 1,301,150 $ 1,464,561 $ 1,655,390 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. 94 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 percent for Tier One/Tier Two police members and zero percent for OPSRP police members. The city's total contributions for the year ended June 30, 2023 was $135. OPEB Asset,OPEB Expense/Income,and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2023,the city reported an asset of$170,699 for its proportionate share of the OPERS net OPEB asset. The net OPEB asset was measured as of June 30, 2022, and the total OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation as of December 31, 2020 rolled forward to June 30, 2022. 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 the measurement date of June 30, 2022,the city's proportionate share was 0.0480 percent,which is a decrease from its proportion of 0.0549 percent as of June 30, 2021. For the year ended June 30, 2023, the city recognized OPEB income from this plan of $20,694. At June 30, 2023, the city reported deferred outflows of resources and deferred inflows of resources related to this OPEB plan from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources Differences between expected and actual experience $ - $ 4,626 Change of assumptions 1,337 5,690 Net difference between projected and actual earnings - 13,018 Changes in proportionate share 10,527 10,329 Total (prior to post-MD contributions) 11,864 33,663 Contributions subsequent to the measurement date 135 - Total $ 11,999 $ 33,663 Deferred outflows of resources related to OPEB of $135 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, 2024. 95 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: Net Deferred Outflows/(Inflows) Amortization Period Ending June 30, 2024 $ (13,337) 2025 (4,416) 2026 (8,215) 2027 4,169 $ (21,799) Actuarial Methods and Assumptions The total OPEB liability in the December 31, 2020 actuarial valuation was determined using the following actuarial methods and assumptions: Measurement date June 30, 2022 Experience study report 2020, published July 20,2021 Actuarial cost method Entry age normal Inflation rate 2.4 percent Long-term expected rate of return 6.9 percent Discount rate 6.9 percent Projected salary increases 3.4 percent Retiree healthcare participation Healthy retirees 27.5%; Disabled retirees 15.0% 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. 96 City of Tigard, Oregon Notes to Basic Financial Statements 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 2020 experience study which reviewed experience for the four-year period ending on December 31, 2020. 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 25.0% 35.0% 30.0% Real Estate 7.5% 17.5% 12.5% Private Equity 15.0% 27.5% 20.0% Risk Parity 0.0% 3.5% 2.5% Real Assets 2.5% 10.0% 7.5% Diversifying Strategies 2.5% 10.0% 7.5% Opportunity Portfolio 0.0% 5.0% 0.0% Tota I 100.0% 97 City of Tigard, Oregon Notes to Basic Financial Statements Compounded Annual Return Asset Class Target 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 Limited 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 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 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 OPEB 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 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: 1% Decrease Current Discount Rate (5.90%) (6.90%) 1% Increase (7.90%) Net OPEB Liability(Asset) $ (153,848) $ (170,699) $ (185,145) 98 City of Tigard, Oregon Notes to Basic Financial Statements OPEB Plan Fiduciary Net Position Detailed information about the OPEB 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, 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, 99 City of Tigard, Oregon Notes to Basic Financial Statements • 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. 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 100 City of Tigard, Oregon Notes to Basic Financial Statements 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. Record keeping. 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 members. The city's total contributions exclusive of the 6 percent "pick-up" was $1,667,814. 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$467,336 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, 2023, the city reported a liability of $10,481,967 for its proportionate share of the OPERS net pension liability. The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2020 rolled forward to June 30, 2022. 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, 2023 and 2022, the city's proportion of OPERS net pension liability was 0.06846 percent and 0.06862 percent, respectively. 101 City of Tigard, Oregon Notes to Basic Financial Statements Annual Pension Cost For the year ended June 30, 2023, the city recognized pension expense of$1,068,157. At June 30, 2023, 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 $ 508,815 $ 65,367 Changes of assumptions 1,644,677 15,026 Net difference between projected and actual earnings on investments - 1,873,973 Changes in proportion 128,140 471,696 Differences between employer contributions and proportionate share of contributions - 1,332,815 Total (prior to post-MD contributions) 2,281,632 3,758,877 Contributions subsequent to the MD 1,667,814 - Total $ 3,949,446 $ 3,758,877 Deferred outflows of resources related to pensions of $1,667,814 resulting from the city's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. 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 Ending June 30, 2024 $ (368,646) 2025 (625,676) 2026 (1,054,205) 2027 670,274 2028 (98,992) $ (1,477,245) Actuarial Methods and Assumptions The total pension liability in the December 31, 2020 actuarial valuation was determined using the following actuarial methods and assumptions: 102 City of Tigard, Oregon Notes to Basic Financial Statements Actuarial Methods and Assumptions Valuation Date December 31,2020 Measurement Date June 30,2022 Experience Study Report 2020,published July 20,2021 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 Healthy 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 with Unisex, Mortality 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 2020 experience study which reviewed experience for the four-year period ending on December 31, 2020. 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. 103 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 25.0% 35.0% 30.0% Real Estate 7.5% 17.5% 12.5% Private Equity 15.0% 27.5% 20.0% Risk Parity 0.0% 3.5% 2.5% Real Assets 2.5% 10.0% 7.5% Diversifying Strategies 2.5% 10.0% 7.5% Opportunity Portfolio 0.0% 5.0% 0.0% Total 100.0% Compounded Annual Return Asset Class Target 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 Limited 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. 104 City of Tigard, Oregon Notes to Basic Financial Statements Sensitivity of the City's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the city's proportionate share of the net pension liability 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(asset) $ 18,588,862 $ 10,481,967 $ 3,696,870 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 $1,427,752 for the year ended June 30, 2023. 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 Plan 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 105 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, 2023, 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 106 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, 2023, the city's property tax revenues were reduced by an estimated $13,000 as a result of the EZ program. For the fiscal year ended June 30, 2023, the Tigard Urban Renewal's property tax revenues were reduced by an estimated $1,000 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. 107 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, 2023, the city's property tax revenues were reduced by an estimated $59,000 as a result of this program. For fiscal year ended June 30, 2023,the Tigard Urban Renewal's property tax revenues were reduced by an estimated $6,000 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 identified for this program include Tigard's Town Center and parts of the Tigard Triangle. This exemption allows for a decrease in total property tax, for new construction, of 20 percent per floor, exemption applies to new construction on the first four floors of residential development built above a non-residential ground floor. 108 City of Tigard, Oregon Notes to Basic Financial Statements 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, 2023, the city's property tax revenues were reduced by an estimated $35,000 as a result of this program. For the fiscal year ended June 30, 2023, the Tigard Urban Renewal's property tax revenues were reduced by an estimated $3,000 as a result of this program. For the fiscal year ended June 30, 2023, the city abated property taxes totaling $107,000 under the three programs. For fiscal year ended June 30, 2023, the Tigard Urban Renewal's abated property taxes totaling $10,000 under the three programs. FY 2023 Taxes Abated City of Tigard Urban Tax Abatement Program Tigard Renewal Enterprise Zone $ 13,000 $ 1,000 Non-Profit Low Income Housing Limited Tax Exemption 59,000 6,000 Vertical Housing Development Zone 35,000 3,000 Total $ 107,000 $ 10,000 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 2023, the city paid $16,799,103 to Clean Water Services under this agreement. The net amount retained by the city is reported as revenue in the enterprise funds in the proprietary funds Statement of Revenues, Expenses and Changes in Fund Net Position. Revenues are reported net because the city acts in a fiduciary capacity on behalf of Clean Water Services. 13. Risk Management The city is exposed to various risks of loss related to torts; employment liability;theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and others; and natural disasters. The city is insured through a member trust consisting of cities and counties in Oregon and purchases public entity insurance through the trust to deal with liability risks with 109 City of Tigard, Oregon Notes to Basic Financial Statements 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, 2023: Tualatin Valley Water District 39.4 City of Wilsonville 16.7 City of Sherwood 6.5 City of Tigard 10.0 City of Hillsboro 24.1 City of Beaverton 3.3 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, 2023 the city's investment in the WIF was: 110 City of Tigard, Oregon Notes to Basic Financial Statements Investment in joint venture at June 30,2022 $ 2,206,220 Contributions 58,306 Loss for the year (37,644) Investment in joint venture at June 30,2023 $ 2,226,882 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, 2023, the outstanding debt amount for the project is $118,379,857. 111 City of Tigard, Oregon Notes to Basic Financial Statements Operating costs and future capital expense Operating costs and future capital expenses are based on different criteria for each section of the system: Allocation Percentage Water System Section Fixed Cost Variable Cost Water treatment plant, pipe infrastructure, raw water intake facility 47.37% Based on usage Waluga Resevoir 51.43% Based on usage Pipeline after Waluga Resevoir, Bonita pump station 100.00% 100.00% The monthly operating costs paid to Lake Oswego are based on an annual budget for fixed costs and projected usage for variable costs. Annually, a true up is completed based on actual usage. The city exclusively operates the Bonita pump station and therefore does not pay Lake Oswego for those costs. For the fixed costs associated with the Waluga Reservoir, Tigard's portion is 1.8 of the 3.5 million gallon capacity, or 51.43 percent. The revenue and expenses associated with ongoing operations of the system are recorded within water operations. 16. Commitments The city has entered into various contracts with outstanding commitments at year end. The contracts are for various projects and will be paid for with debt proceeds, property taxes, gas taxes, and various other sources. The major commitments outstanding at June 30, 2023 are as follows: Project Commitment ASR Wells Rehabilitation $ 2,505,893 Cach Resevoir& Pump Station 607,600 Tigard Street Bridge Replacement 525,166 Main Street Phase 2 754,781 Murdock Street Sidewalk&Stormwater 223,998 PMP Design and Inspection 132,557 Red Rock Creek Stabilization and Enhancement 125,758 Reservoir 18& Pump Station 4,257,710 Universal Plaza 253,231 Kruger Creek Stabilization 562,007 Pacific Highway Street Lights 500,774 Pipeline Renewal and Replacement 433,341 112 City of Tigard, Oregon Notes to Basic Financial Statements 17. Contingent Liabilities The city is a defendant in various lawsuits, nearly all of these lawsuits are covered by the city's insurance policies. Although the outcome of these lawsuits is not presently determinable, it is the opinion of management that resolution of these matters will not have a material adverse effect on the financial condition of the city. Claims not covered by the city's insurer would be recognized when it appeared probable that the loss had been incurred and the amount could be reasonably estimated. 113 No content appears on this page by design. 114 Required Supplementary Information 115 116 CITY OF TIGARD,OREGON GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Taxes $ 19,180,658 $ 19,180,658 $ 19,024,176 $ (156,482) Licenses and permits 1,131,598 1,121,598 1,269,212 147,614 Intergovernmental revenues 7,215,734 7,378,314 7,371,863 (6,451) Charges for services 224,742 234,742 309,128 74,386 Fines and forfeitures 2,037,040 2,037,040 1,726,596 (310,444) Franchise fees 7,367,594 7,367,594 7,883,123 515,529 Interest earnings 300,675 300,675 869,751 569,076 Net increase (decrease)in investment fair value - - 243,048 243,048 Miscellaneous revenues 203,166 203,166 66,032 (137,134) Total revenues 37,661,207 37,823,787 38,762,929 939,142 EXPENDITURES Community services 30,726,267 32,670,736 29,711,120 2,959,616 Public works 74,000 - - - Community development 4,681,956 4,953,536 4,205,370 748,166 Policy and administration 1,661,638 1,704,638 1,360,826 343,812 Total expenditures 37,143,861 39,328,910 35,277,316 4,051,594 Change in fund balance before other financing sources(uses) 517,346 (1,505,123) 3,485,613 4,990,736 OTHER FINANCING SOURCES(USES) Transfer in 189,000 189,000 189,000 - Transfer out (10,785,099) (11,545,099) (9,884,654) 1,660,445 Contingency (1,400,000) (879,000) - 879,000 Reserve for future expenditures (22,070,087) (20,644,087) - 20,644,087 Total other financing(uses) (34,066,186) (32,879,186) (9,695,654) 23,183,532 Change in fund balance (33,548,840) (34,384,309) (6,210,041) 28,174,268 Fund balance-beginning of the year 33,548,840 34,384,309 40,808,418 6,424,109 Fund balance-end of the year $ - $ - 34,598,377 $ 34,598,377 Reconciliation of budgetary fund balance to GAAP basis fund balance: Interfund Loan 883,981_ Total fund balance,GAAP basis $ 35,482,358 117 City of Tigard Oregon Schedule of the City's Proportionate Share of the Net Pension Liability(Asset) Oregon Public Employees Retirement System Last Nine Fiscal Years 1'2 2023 2022 2021 City's proportion of the net pension liability (asset) 0.068456% 0.068617% 0.067873% City's proportionate share of the net pension liability (asset) $ 10,481,967 $ 8,211,051 $ 14,812,243 City's covered payroll $ 7,108,063 $ 6,960,595 $ 6,307,694 City's proportionate share of the net pension liability (asset) as a percentage of its covered payroll 147.47% 117.96% 234.83% Plan fiduciary net position as a percentage of the total pension liability 84.55% 87.57% 75.79% 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 2023 is July 1, 2021 -June 30, 2022. 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. 118 2020 2019 2018 2017 2016 2015 0.075025% 0.073322% 0.072960% 0.074719% 0.081488% 0.074022% $ 12,977,450 $ 11,107,323 $ 9,835,041 $ 11,216,998 $ 4,678,602 $ (1,677,869) $ 6,331,572 $ 5,941,342 $ 6,280,408 $ 6,610,002 $ 6,187,208 $ 6,025,900 204.96% 186.95% 156.60% 169.70% 75.62% -27.84% 80.23% 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. 119 City of Tigard, Oregon Schedule of the City's Contributions Oregon Public Employees Retirement System Last Nine Fiscal Years 1 2023 2022 2021 2020 Contractually required contributions $ 1,667,814 $ 1,449,229 $ 1,344,480 $ 1,302,699 Contributions in relation to the contractually required contribution (1,667,814) (1,449,229) (1,344,480) (1,302,699) Contribution deficiency (excess) $ - $ - $ - $ - City's covered payroll $ 7,454,550 $ 7,108,063 $ 6,960,595 $ 6,307,694 Contributions as a percentage of covered payroll 22.37% 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, 2017 Effective July 2021 -June 2023 July 2019 -June 2021 Actuarial cost method: Entry Age Normal Entry Age Normal Actuarial valuation method: Market Value Market Value Actuarial assumption: Inflation rate 2.50 percent 2.50 percent Projected salary increases 3.50 percent 3.50 percent Investment rate of return 7.20 percent 7.20 percent 120 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, 2015 December 31, 2013 December 31, 2011 July 2017 -June 2019 July 2015 -June 2017 July 2013 -June 2015 Entry Age Normal Entry Age Normal Projected Unit Credit Market Value Market Value Market Value 2.50 percent 2.75 percent 2.75 percent 3.50 percent 3.75 percent 3.75 percent 7.50 percent 7.75 percent 8.00 percent 121 City of Tigard,Oregon Schedule of the Changes in the City's Total OPEB Liability and Related Ratios Implicit Rate Subsidy Plan Last Six Fiscal Years 1,2 2023 2022 2021 2020 2019 2018 Total OPEB Liability(in 1,000s) Service cost $ 135 $ 131 $ 121 $ 109 $ 117 $ 100 Interest 34 32 53 52 54 43 Changes in benefit terms - - - - - - Economic/demographic losses 108 - (189) - 15 - Changes of assumptions or other inputs (251) 6 (19) 46 (292) (96) Benefit payments (33) (28) (51) (59) (49) (59) Net change in OPEB liability (7) 141 (85) 148 (155) (12) Total OPEB Liability-beginning 1,472 1,331 1,416 1,268 1,423 1,435 Total OPEB Liability-ending $ 1,465 $ 1,472 $ 1,331 $ 1,416 $ 1,268 $ 1,423 Covered-employee payroll $ 28,158 $ 25,775 $ 24,881 $ 23,214 $ 21,705 $ 21,438 Total OPEB Liability as a%of covered- employee payroll 5.20% 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 2023 is July 1,2021-June 30,2022 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. 122 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 Seven Fiscal Years 1'2 2023 2022 2021 2020 2019 2018 2017 City's proportion of the net OPEB liability(asset) 0.0480% 0.0549% 0.0345% 0.0607% 0.0579% 0.0613% 0.0675% City's proportionate share of the net OPEB liability(asset) $ (170,699) $ (188,697) $ (70,282) $ (117,368) $ (64,649) $ (25,563) $ 18,323 City's covered payroll $ 7,108,063 $ 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 -2.4% -2.7% -1.1% -1.9% -1.1% -0.4% 0.3% Plan fiduciary net position as a percentage of the total OPEB liability 194.6% 183.9% 150.1% 144.4% 124.0% 108.9% 80.5% '10-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 2023 is July 1,2021-June 30,2022 123 City of Tigard,Oregon Schedule of the City's Contributions Oregon Public Employees Retirement System,Retirement Health Insurance Account Last Seven Fiscal Years' 2023 2022 2021 2020 2019 2018 2017 Contractually required contributions $ 135 $ 1,184 $ 2,194 $ 2,463 $ 30,103 $ 29,366 $ 31,820 Contributions in relation to the contractually required contribution (135) (1,184) (2,194) (2,463) (30,103) (29,366) (31,820) Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $ - City's covered payroll $ 7,454,550 $ 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 0.00% 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 31,2017 December 31,2015 December 31,2013 Effective July 2021-June 2023 July 2019-June 2021 July 2017-June 2019 July 2015-June 201; Actuarial cost method: Entry Age Normal Entry Age Normal Entry Age Normal Entry Age Normal Actuarial valuation method: Market Value Market Value Market Value Market Value Actuarial assumption: Inflation rate 2.50 percent 2.50 percent 2.50 percent 2.75 percent Projected salary increases 3.50 percent 3.50 percent 3.50 percent 3.75 percent Investment rate of return 7.20 percent 7.20 percent 7.50 percent 7.75 percent 124 Other Supplementary Information 125 126 CITY OF TIGARD,OREGON COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30,2023 Special Debt Service Capital Project Revenue Funds Funds Funds Total ASSETS Cash and investments $ 2,839,720 $ - $ 5,756,021 $ 8,595,741 Accounts receivable 1,187,933 - 1,765,062 2,952,995 Property taxes receivable 30,599 67,887 - 98,486 Other receivables - 21,002 - 21,002 Restricted cash and investments 33,272,476 6,388,904 50,778,584 90,439,964 Total assets $ 37,330,728 $ 6,477,793 $ 58,299,667 $ 102,108,188 LIABILITIES Accounts payable and accrued liabilities $ 772,006 $ - $ 2,345,186 $ 3,117,192 Deposits 1,528,145 - - 1,528,145 Due to others 133,729 - - 133,729 Advances from other funds - - 1,886,301 1,886,301 Unearned revenue 99,688 - - 99,688 Total liabilities 2,533,568 - 4,231,487 6,765,055 DEFERRED INFLOWS OF RESOURCES Resources not yet available: Property taxes - 56,092 - 56,092 Transportation refund credits 35,857 - - 35,857 State grants - - 559,078 559,078 Special assessment liens - - 26,720 26,720 Total deferred inflows of resources 35,857 56,092 585,798 677,747 FUND BALANCES Restricted for: Street maintenance and improvements 11,321,843 - 31,057,302 42,379,145 Tourism 1,191,152 - - 1,191,152 Affordable housing 2,107,709 - - 2,107,709 Debt service - 6,421,701 - 6,421,701 Park development and improvements - - 10,665,255 10,665,255 Underground utilities - - 696,587 696,587 Building inspection 12,270,314 - - 12,270,314 Police services 3,176,420 - - 3,176,420 Library improvements 617,648 - - 617,648 Urban development and improvements - - 6,498,743 6,498,743 Committed for: Street maintenance and improvements - - 5,180,071 5,180,071 Urban forestry 1,099,927 - - 1,099,927 Assigned to: City facilities - - 900,476 900,476 Park and recreation 2,976,290 - - 2,976,290 Unassigned - - (1,516,052) (1,516,052) Total fund balances 34,761,303 6,421,701 53,482,382 94,665,386 Total liabilities,deferred inflows of resources and fund balances $ 37,330,728 $ 6,477,793 $ 58,299,667 $ 102,108,188 127 CITY OF TIGARD,OREGON COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS for the year ended June 30,2023 Special Debt Service Capital Project Revenue Funds Funds Funds Total REVENUES Taxes $ 10,856,282 $ 4,741,540 $ - $ 15,597,822 Special assessments - 32,136 - 32,136 Licenses and permits 4,050,889 - - 4,050,889 Intergovernmental revenues 371,373 - 266,131 637,504 Charges for services 2,746,071 - 3,751,460 6,497,531 System development charges - - 8,920,940 8,920,940 Fines and forfeitures 1,122,042 - - 1,122,042 Interest earnings 730,039 195,432 1,122,825 2,048,296 Net increase(decrease) in investment fair value 228,017 50,288 414,976 693,281 Miscellaneous revenues 63,552 - 257 63,809 Total revenues 20,168,265 5,019,396 14,476,589 39,664,250 EXPENDITURES Community services 2,163,007 - - 2,163,007 Public works 7,973,375 - - 7,973,375 Community development 3,134,336 - 1,607,231 4,741,567 Debt service: Principal - 3,109,700 - 3,109,700 Interest - 610,507 - 610,507 Capital outlay - - 18,531,618 18,531,618 Total expenditures 13,270,718 3,720,207 20,138,849 37,129,774 Changes in fund balance before other financing sources(uses) 6,897,547 1,299,189 (5,662,260) 2,534,476 OTHER FINANCING SOURCES(USES) Transfer in 2,708,500 - 11,289,925 13,998,425 Transfer out (5,555,096) - (8,164,141) (13,719,237) Total other financing sources(uses) (2,846,596) - 3,125,784 279,188 Changes in fund balance 4,050,951 1,299,189 (2,536,476) 2,813,664 Fund Balance-Beginning of the year 30,710,352 5,122,512 56,018,858 91,851,722 Fund Balance-End of the year $ 34,761,303 $ 6,421,701 $ 53,482,382 $ 94,665,386 128 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. Transportation Network Company Fee Fund–This fund accounts for revenues generated for fees charged to Transportation Network companies to fund public safety and transportation projects. 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. 129 130 No content appears on this page by design. 131 CITY OF TIGARD,OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30,2023 Transportation City Gas Network Transient Construction Gas Tax Tax Company Fee Lodging Tax Excise Tax Fund Fund Fund Fund Fund ASSETS Cash and investments $ - $ - $ - $ - $ - Accounts receivable 565,557 93,758 47,271 128,944 936 Property taxes receivable - - - - - Restricted cash and investments 8,823,266 2,691,876 138,389 1,062,208 2,155,226 Total assets $ 9,388,823 $ 2,785,634 $ 185,660 $ 1,191,152 $ 2,156,162 LIABILITIES Accounts payable $ 82,149 $ - $ - $ - $ 48,453 Due to others - - - - - Deposits 895,925 - - - - Unearned revenue - - 24,343 - - Total liabilities 978,074 - 24,343 - 48,453 DEFERRED INFLOWS OF RESOURCES Transportation refund credits 23,493 12,364 - - - FUND BALANCE Restricted for: Street maintenance and improvemei 8,387,256 2,773,270 161,317 - - Tourism - - - 1,191,152 - Affordable housing - - - - 2,107,709 Building inspection - - - - - Police services - - - - - Library improvements - - - - - Committed for: Urban forestry - - - - - Assigned for: Park and recreation - - - - - Total fund balances 8,387,256 2,773,270 _ 161,317 1,191,152 2,107,709 Total liabilities and fund balances $ 9,388,823 $ 2,785,634 $ 185,660 $ 1,191,152 $ 2,156,162 132 Electrical Criminal Urban Parks Police Inspection Building Forfeiture Forestry Utility Levy Library Fund Fund Fund Fund Fund Fund Fund Total $ - $ - $ - $ - $ 2,839,720 $ - $ - $ 2,839,720 2,537 27,532 1,699 5,248 305,553 7,405 1,493 1,187,933 30,599 - 30,599 495,437 12,225,686 1,738,219 1,726,899 - 1,549,115 666,155 33,272,476 $ 497,974 $ 12,253,218 $ 1,739,918 $ 1,732,147 $ 3,145,273 $ 1,587,119 $ 667,648 $ 37,330,728 $ - $ 401,848 $ 3,621 $ - $ 168,983 $ 66,952 $ - $ 772,006 603 78,427 54,699 - - - - 133,729 - - - 632,220 - - - 1,528,145 - - - - - 25,345 50,000 _ 99,688 603 480,275 58,320 632,220 168,983 92,297 50,000 2,533,568 - - - - - - - 35,857 - - - - - - 11,321,843 - - - - - - 1,191,152 - - - - - - - 2,107,709 497,371 11,772,943 - - - - - 12,270,314 - 1,681,598 - - 1,494,822 - 3,176,420 - - - - - - 617,648 617,648 - - - 1,099,927 - - - 1,099,927 - - - - 2,976,290 - - 2,976,290 497,371 11,772,943 1,681,598 1,099,927 2,976,290 1,494,822 617,648 34,761,303 $ 497,974 $ 12,253,218 $ 1,739,918 $ 1,732,147 $ 3,145,273 $ 1,587,119 $ 667,648 $ 37,330,728 133 CITY OF TIGARD,OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE for the year ended June 30,2023 Transportation City Gas Network Transient Construction Gas Tax Tax Company Fee Lodging Tax Excise Tax Fund Fund Fund Fund Fund REVENUES Taxes $ - $ - $ - $ - $ - Gas tax 5,502,618 - - - - City gas tax - 816,290 - - - Hotel/Motel tax - - - 739,729 - Construction excise tax - - - - 1,558,740 Licenses and permits 11,686 - 158,731 - - Charges for services - - - - - Intergovernmental revenues - - - - 259,086 Fines and forfeitures - - - - - Tree replacement revenue - - - - - Interest earnings 173,540 77,164 2,685 25,515 41,855 Net increase(decrease)in investment fair value 74,581 28,564 (99) 7,013 6,699 Miscellaneous revenues 46,555 - - - - Total revenues 5,808,980 922,018 161,317 772,257 1,866,380 EXPENDITURES Community services - - - - - Public works 3,441,047 - - - - Community development - - - - 519,333 Total expenditures 3,441,047 - - - 519,333 Changes in fund balance before other financing sources(uses) 2,367,933 922,018 161,317 772,257 1,347,047 OTHER FINANCING SOURCES(USES) Transfer in 208,500 - - - - Transfer out (1,842,686) (1,706,468) - (191,287) (250,635) Total other financing sources(uses) (1,634,186) (1,706,468) - (191,287) (250,635) Changes in fund balance 733,747 (784,450) 161,317 580,970 1,096,412 Fund balance-Beginning of the year 7,653,509 3,557,720 - 610,182 1,011,297 Fund balance-End of the year $ 8,387,256 $ 2,773,270 $ 161,317 $ 1,191,152 $ 2,107,709 134 Electrical Criminal Urban Parks Police Inspection Building Forfeiture Forestry Utility Levy Library Fund Fund Fund Fund Fund Fund Fund Total $ - $ - $ - $ - $ - $ 2,238,905 $ - $ 2,238,905 - - - - - - - 5,502,618 - - - - - - - 816,290 - - - - - - - 739,729 - - - - - - - 1,558,740 335,954 3,544,518 - - - - - 4,050,889 - - - 2,724,120 - - 2,724,120 - 112,287 - - - - - 371,373 - 1,122,042 - - - - 1,122,042 - - - 21,951 - - - 21,951 10,271 238,279 37,666 32,529 39,109 38,420 13,006 730,039 1,867 67,038 4,025 8,808 9,028 17,960 2,533 228,017 - 6,394 - - 10,603 - - 63,552 348,092 3,968,516 1,163,733 63,288 2,782,860 2,295,285 15,539 20,168,265 - - 86,948 - - 2,076,059 - 2,163,007 - - - - 4,532,328 - - 7,973,375 2,615,003 - - - - - 3,134,336 2,615,003 86,948 - 4,532,328 2,076,059 13,270,718 348,092 1,353,513 1,076,785 63,288 (1,749,468) 219,226 15,539 6,897,547 - 250,000 - - 2,250,000 - - 2,708,500 (252,527) (292,333) (9) (57,826) (961,325) - - (5,555,096) (252,527) (42,333) (9) (57,826) 1,288,675 - (2,846,596) 95,565 1,311,180 1,076,776 5,462 (460,793) 219,226 15,539 4,050,951 401,806 10,461,763 604,822 1,094,465 3,437,083 1,275,596 602,109 30,710,352 $ 497,371 $ 11,772,943 $ 1,681,598 $ 1,099,927 $ 2,976,290 $ 1,494,822 $ 617,648 $ 34,761,303 135 CITY OF TIGARD,OREGON GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original _ Final Amounts budget REVENUES State gas tax $ 4,160,966 $ 4,160,966 $ 4,380,332 $ 219,366 County gas tax 967,654 967,654 1,122,286 154,632 Licenses and permits 7,029 7,029 11,686 4,657 Interest earnings 61,800 61,800 173,540 111,740 Net increase(decrease)in investment fair value - - 74,581 74,581 Miscellaneous revenues 62,818 62,818 46,555 (16,263) Total revenues 5,260,267 5,260,267 5,808,980 548,713 EXPENDITURES Public works 3,754,763 3,787,763 3,441,047 346,716 Change in fund balance before other financing sources(uses) 1,505,504 1,472,504 2,367,933 895,429 OTHER FINANCING SOURCES(USES) Transfer in 208,500 208,500 208,500 - Transfer out (3,771,764) (3,872,622) (1,842,686) 2,029,936 Contingency (200,000) (167,000) - 167,000 Reserve for future expenditures (4,718,702) (4,718,702) - 4,718,702 Total other financing(uses) (8,481,966) (8,549,824) (1,634,186) 6,915,638 Change in fund balance (6,976,462) (7,077,320) 733,747 7,811,067 Fund balance-Beginning of the year 6,976,462 7,077,320 7,653,509 576,189 Fund balance-End of the year $ - $ - $ 8,387,256 $ 8,387,256 136 CITY OF TIGARD,OREGON CITY GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES City gas tax $ 925,343 $ 925,343 $ 816,290 $ (109,053) Interest earnings 29,025 29,025 77,164 48,139 Net increase(decrease)in investment fair value - - 28,564 28,564 Total revenues 954,368 954,368 922,018 (32,350) OTHER FINANCING SOURCES(USES) Transfer out (2,312,159) (3,177,159) (1,706,468) 1,470,691 Reserve for future expenditures (790,477) (790,477) - 790,477 Total other financing sources(uses) (3,102,636) (3,967,636) (1,706,468) 2,261,168 Change in fund balance (2,148,268) (3,013,268) (784,450) 2,228,818 Fund balance-Beginning of the year 2,148,268 3,013,268 3,557,720 544,452 Fund balance-End of the year $ - $ - $ 2,773,270 $ 2,773,270 * Budget appropriation is made at the debt service program level 137 CITY OF TIGARD,OREGON TRANSPORTATION NETWORK COMPANY FEE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Licenses and permits $ - $ - $ 158,731 $ 158,731 Interest earnings - - 2,685 2,685 Net increase(decrease) in investment fair value - - (99) (99) Total revenues - - 161,317 161,317 Fund balance-Beginning of the year - - - - Fund balance-End of the year $ - $ - $ 161,317 $ 161,317 138 CITY OF TIGARD,OREGON TRANSIENT LODGING TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Hotel/Motel tax $ 464,198 $ 464,198 $ 739,729 $ 275,531 Interest earnings 3,600 3,600 25,515 21,915 Net increase(decrease) in investment fair value - - 7,013 7,013 Total revenues 467,798 467,798 772,257 304,459 OTHER FINANCING SOURCES(USES) Transfer out (191,287) (191,287) (191,287) - Reserve for future expenditures (806,972) (806,972) - 806,972 Total other financing sources(uses) (998,259) (998,259) (191,287) 806,972 Change in fund balance (530,461) (530,461) 580,970 1,111,431 Fund balance-Beginning of the year 530,461 530,461 610,182 79,721 Fund balance-End of the year $ - $ - $ 1,191,152 $ 1,191,152 139 CITY OF TIGARD,OREGON CONSTRUCTION EXCISE TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Construction excise tax $ 625,000 $ 625,000 $ 1,558,740 $ 933,740 Intergovernmental revenues 125,000 125,000 259,086 134,086 Interest earnings 3,000 3,000 41,855 38,855 Net increase(decrease) in investment fair value - - 6,699 6,699 Total revenues 753,000 753,000 1,866,380 1,113,380 EXPENDITURES Community development 400,000 400,000 519,333 (119,333) * Change in fund balance before other financing sources(uses) 353,000 353,000 1,347,047 994,047 OTHER FINANCING SOURCES(USES) Transfer out (250,635) (250,635) (250,635) - Contingency (50,000) (50,000) - 50,000 Reserve for future expenditures (573,569) (573,569) - 573,569 Total other financing sources(uses) (874,204) (874,204) (250,635) 623,569 Change in fund balance (521,204) (521,204) 1,096,412 1,617,616 Fund balance-Beginning of the year 521,204 521,204 1,011,297 490,093 Fund balance-End of the year $ - $ - $ 2,107,709 $ 2,107,709 *This is not considered an overexpenditure due to the amount being due to a specific-purpose grant. 140 CITY OF TIGARD,OREGON ELECTRICAL INSPECTION FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Licenses and permits $ 305,825 $ 305,825 $ 335,954 $ 30,129 Interest earnings 6,300 6,300 10,271 3,971 Net increase (decrease) in investment fair value - - 1,867 1,867 Total revenues 312,125 312,125 348,092 35,967 OTHER FINANCING(USES) Transfer out (252,527) (252,527) (252,527) - Reserve for future expenditures (521,854) (521,854) - 521,854 Total other financing(uses) (774,381) (774,381) (252,527) 521,854 Change in fund balance (462,256) (462,256) 95,565 557,821 Fund balance-Beginning of the year 462,256 462,256 401,806 (60,450) Fund balance-End of the year $ - $ - $ 497,371 $ 497,371 141 CITY OF TIGARD,OREGON BUILDING FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Licenses and permits $ 3,533,704 $ 3,533,704 $ 3,544,518 $ 10,814 Intergovernmental revenues 8,281 8,281 112,287 104,006 Interest earnings 112,875 112,875 238,279 125,404 Net increase(decrease) in investment fair value - - 67,038 67,038 Miscellaneous revenues 7,500 7,500 6,394 (1,106) Total revenues 3,662,360 3,662,360 3,968,516 306,156 EXPENDITURES Community development 2,814,346 2,896,346 2,615,003 281,343 Change in fund balance before other financing sources(uses) 848,014 766,014 1,353,513 587,499 OTHER FINANCING SOURCES(USES) Transfer in 250,000 250,000 250,000 - Transfer out (293,125) (293,125) (292,333) 792 Contingency (150,000) (150,000) - 150,000 Reserve for future expenditures (11,867,495) (11,785,495) - 11,785,495 Total other financing sources(uses) (12,060,620) (11,978,620) (42,333) 11,936,287 Change in fund balance (11,212,606) (11,212,606) 1,311,180 12,523,786 Fund balance-Beginning of the year 11,212,606 11,212,606 10,461,763 (750,843) Fund balance-End of the year $ - $ - $ 11,772,943 $ 11,772,943 142 CITY OF TIGARD,OREGON CRIMINAL FORFEITURE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 37,666 $ 37,666 Net increase(decrease) in investment fair value - - 4,025 4,025 Forfeitures 101,289 101,289 1,122,042 1,020,753 Total revenues 101,289 101,289 1,163,733 1,062,444 EXPENDITURES Community services 404,721 404,721 86,948 317,773 Change in fund balance before other financing sources(uses) (303,432) (303,432) 1,076,785 1,380,217 OTHER FINANCING SOURCES(USES) Transfer out (9) (9) (9) - Reserve for future expenditures (254,438) (254,438) - 254,438 Total other financing sources(uses) (254,447) (254,447) (9) 254,438 Change in fund balance (557,879) (557,879) 1,076,776 1,634,655 Fund balance-Beginning of the year 557,879 557,879 604,822 46,943 Fund balance-End of the year $ - $ - $ 1,681,598 $ 1,681,598 143 CITY OF TIGARD,OREGON URBAN FORESTRY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Tree replacement revenue $ 15,000 $ 15,000 $ 21,951 $ 6,951 Interest earnings 26,400 26,400 32,529 6,129 Net increase(decrease) in investment fair value - - 8,808 8,808 Miscellaneous revenues - - - - Total revenues 41,400 41,400 63,288 21,888 OTHER FINANCING SOURCES(USES) Transfer out (151,236) (168,036) (57,826) 110,210 Reserve for future expenditures (951,706) (934,906) - 934,906 Total other financing sources(uses) (1,102,942) (1,102,942) (57,826) 1,045,116 Change in fund balance (1,061,542) (1,061,542) 5,462 1,067,004 Fund balance-Beginning of the year 1,061,542 1,061,542 1,094,465 32,923 Fund balance-End of the year $ - $ - $ 1,099,927 $ 1,099,927 144 CITY OF TIGARD,OREGON PARKS UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 2,497,148 $ 2,497,148 $ 2,724,120 $ 226,972 Intergovernmental revenues - 25,100 - (25,100) Interest earnings 2,475 2,475 39,109 36,634 Net increase(decrease) in investment fair value - - 9,028 9,028 Miscellaneous revenues - - 10,603 10,603 Total revenues 2,499,623 2,524,723 2,782,860 258,137 EXPENDITURES Public works 4,957,532 5,074,632 4,532,328 542,304 Change in fund balance before other financing sources(uses) (2,457,909) (2,549,909) (1,749,468) 800,441 OTHER FINANCING SOURCES(USES) Transfer in 2,250,000 2,250,000 2,250,000 - Transfer out (968,724) (968,724) (961,325) 7,399 Contingency (125,000) (125,000) - 125,000 Reserve for future expenditures (1,664,511) (1,572,511) - 1,572,511 Total other financing sources(uses) (508,235) (416,235) 1,288,675 1,704,910 Change in fund balance (2,966,144) (2,966,144) (460,793) 2,505,351 Fund balance-Beginning of the year 2,966,144 2,966,144 3,437,083 470,939 Fund balance-End of the year $ - $ - $ 2,976,290 $ 2,976,290 145 CITY OF TIGARD,OREGON POLICE LEVY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Taxes $ 2,145,668 $ 2,145,668 $ 2,238,905 $ 93,237 Interest earnings - - 38,420 38,420 Net increase(decrease) in investment fair value - - 17,960 17,960 Total revenues 2,145,668 2,145,668 2,295,285 149,617 EXPENDITURES Community services 2,402,427 2,402,427 2,076,059 326,368 Changes in fund balance before other financing sources(uses) (256,759) (256,759) 219,226 475,985 OTHER FINANCING SOURCES(USES) Reserve for future expenditures (714,546) (714,546) - 714,546 Change in fund balance (971,305) (971,305) 219,226 1,190,531 Fund balance-Beginning of the year 971,305 971,305 1,275,596 304,291 Fund balance-End of the year $ - $ - $ 1,494,822 $ 1,494,822 * Budget appropriation is made at the debt service program level 146 CITY OF TIGARD,OREGON LIBRARY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES: Interest earnings $ 9,750 $ 9,750 $ 13,006 $ 3,256 Net increase(decrease)in investment fair value - - 2,533 2,533 Total revenue 9,750 9,750 15,539 5,789 OTHER FINANCING SOURCES(USES) Transfer out (100,000) (100,000) - 100,000 Reserve for future expenditures (428,644) (428,644) - 428,644 Total other financing sources(uses) (528,644) (528,644) - 528,644 Change in fund balance (518,894) (518,894) 15,539 534,433 Fund balance-Beginning of the year 518,894 518,894 602,109 83,215 Fund balance-End of the year $ - $ - $ 617,648 $ 617,648 147 No content appears on this page by design. 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 CITY OF TIGARD,OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING BALANCE SHEET June 30,2023 Bancroft General City Center Tigard Bond Obligation Urban Triangle Debt Service Debt Renewal Debt Debt Service Fund Service Fund Service Fund Fund Total ASSETS Property taxes receivable $ - $ 39,404 $ 11,548 $ 16,935 $ 67,887 Other receivable 286 10,726 4,282 5,708 21,002 Restricted cash and investments 339,632 1,984,641 1,975,011 2,089,620 6,388,904 Total assets $ 339,918 $ 2,034,771 $ 1,990,841 $ 2,112,263 $ 6,477,793 DEFERRED INFLOWS OF RESOURCES Resources not yet available: Property taxes $ - $ 32,715 $ 9,537 $ 13,840 $ 56,092 FUND BALANCES Restricted for debt service 339,918 2,002,056 1,981,304 2,098,423 6,421,701 Total liabilities,deferred inflows of resources and fund balances $ 339,918 $ 2,034,771 $ 1,990,841 $ 2,112,263 $ 6,477,793 151 CITY OF TIGARD,OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES for the year ended June 30,2023 Bancroft General City Center Tigard Bond Obligation Urban Triangle Debt Service Debt Renewal Debt Debt Service Fund Service Fund Service Fund Fund Total REVENUES Taxes $ - $ 2,610,501 $ 809,231 $ 1,321,808 $ 4,741,540 Collection of bonded assessments 32,136 - - - 32,136 Interest earnings 9,385 65,576 57,736 62,735 195,432 Net increase(decrease) in investment fair value (190) 32,202 9,449 8,827 50,288 Total revenues 41,331 2,708,279 876,416 1,393,370 5,019,396 EXPENDITURES Debt service: Principal - 2,309,000 314,700 486,000 3,109,700 Interest - 242,211 176,623 191,673 610,507 Total expenditures - 2,551,211 491,323 677,673 3,720,207 Change in fund balance 41,331 157,068 385,093 715,697 1,299,189 Fund balance-Beginning of the year 298,587 1,844,988 1,596,211 1,382,726 5,122,512 Fund balance-End of the year $ 339,918 $ 2,002,056 $ 1,981,304 $ 2,098,423 $ 6,421,701 152 CITY OF TIGARD,OREGON BANCROFT BOND DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Collection of bonded assessments $ - $ - $ 32,136 $ 32,136 Interest earnings 1,425 1,425 9,385 7,960 Net increase(decrease)in investment fair value - - (190) (190) Total revenues 1,425 1,425 41,331 39,906 OTHER FINANCING SOURCES(USES) Reserve for future expenditures (298,968) (298,968) - 298,968 Change in fund balance (297,543) (297,543) 41,331 338,874 Fund balance-Beginning of the year 297,543 297,543 298,587 1,044 Fund balance-End of the year $ - $ - $ 339,918 $ 339,918 153 CITY OF TIGARD,OREGON GENERAL OBLIGATION DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Taxes $ 2,859,903 $ 2,859,903 $ 2,610,501 $ (249,402) Interest earnings 27,750 27,750 65,576 37,826 Net increase (decrease) in investment fair value - - 32,202 32,202 Miscellaneous revenues - - - - Total revenues 2,887,653 2,887,653 2,708,279 (179,374) EXPENDITURES *Debt service: Principal 2,309,000 2,309,000 2,309,000 - Interest 241,243 241,243 242,211 (968) Total expenditures 2,550,243 2,550,243 2,551,211 (968) Change in fund balance before other financing sources(uses) 337,410 337,410 157,068 (180,342) OTHER FINANCING SOURCES(USES) Reserve for future expenditures (2,651,633) (2,651,633) - 2,651,633 Change in fund balance (2,314,223) (2,314,223) 157,068 2,471,291 Fund balance-Beginning of the year 2,314,223 2,314,223 1,844,988 (469,235) Fund balance-End of the year $ - $ - $ 2,002,056 $ 2,002,056 * Budget appropriation is made at the debt service program level 154 CITY OF TIGARD,OREGON CITY CENTER URBAN RENEWAL DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Property taxes $ 773,146 $ 773,146 $ 809,231 $ 36,085 Interest earnings 2,132 2,132 57,736 55,604 Net increase(decrease) in investment fair value - - 9,449 9,449 Total revenues 775,278 775,278 876,416 101,138 EXPENDITURES *Debt service: Principal 346,000 346,000 314,700 31,300 Interest 194,000 194,000 176,623 17,377 Total expenditures 540,000 540,000 491,323 48,677 Change in fund balance before other financing sources(uses) 235,278 235,278 385,093 149,815 OTHER FINANCING SOURCES(USES) Transfer out (349,500) (799,500) - 799,500 Reserve for future expenditure (738,529) (288,529) - 288,529 Total other financing sources(uses) (1,088,029) (1,088,029) - 1,088,029 Change in fund balance (852,751) (852,751) 385,093 1,237,844 Fund balance-Beginning of the year 852,751 852,751 1,596,211 743,460 Fund balance-End of the year $ - $ - $ 1,981,304 $ 1,981,304 * Budget appropriation is made at the debt service program level 155 CITY OF TIGARD,OREGON TIGARD TRIANGLE DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Property taxes $ 1,421,550 $ 1,421,550 $ 1,321,808 $ (99,742) Interest earnings 3,416 3,416 62,735 59,319 Net increase(decrease) in investment fair value - - 8,827 8,827 Total revenues 1,424,966 1,424,966 1,393,370 (31,596) EXPENDITURES *Debt service: Principal 500,000 500,000 486,000 14,000 Interest 200,000 200,000 191,673 8,327 Total expenditures 700,000 700,000 677,673 22,327 Change in fund balance before other financing sources(uses) 724,966 724,966 715,697 (9,269) OTHER FINANCING SOURCES(USES) Transfer out (1,719,500) (1,719,500) - 1,719,500 Reserve for future expenditure (371,951) (371,951) - 371,951 Total other financing sources(uses) (2,091,451) (2,091,451) - 2,091,451 Change in fund balance (1,366,485) (1,366,485) 715,697 2,082,182 Fund balance-Beginning of the year 1,366,485 1,366,485 _ 1,382,726 16,241 Fund balance-End of the year $ - $ - $ 2,098,423 $ 2,098,423 * Budget appropriation is made at the debt service program level 156 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. 157 158 No content appears on this page by design. 159 CITY OF TIGARD,OREGON CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30,2023 Transportation Underground Street Transportation Facility Development Utility Maintenance SDC Fund Tax Fund Fund Fee Fund Fund ASSETS Cash and investments $ 987,851 $ - $ - $ 4,768,170 $ - Accounts receivable 2,420 46,529 2,003 436,406 25,167 Note receivable - - - - - Restricted cash and investments - 18,711,249 694,584 - 11,318,137 Total assets $ 990,271 $ 18,757,778 $ 696,587 $ 5,204,576 $ 11,343,304 LIABILITIES Accounts payable and accrued liabilities $ 89,795 $ - $ - $ 24,505 $ - Advances from other funds-interfund loans - - - - - Unearned revenue-special assessments - - - - - Total liabilities 89,795 - - 24,505 - DEFERRED INFLOWS OF RESOURCES Special assessments/liens - 3,413 - - - FUND BALANCES(DEFICIT) Restricted for: Street maintenance and improvements - 18,754,365 - - 11,343,304 Park development and improvements - - - - - Underground utilities - - 696,587 - - Urban development and improvements - - - - - Committed for: Street maintenance and improvements - - - 5,180,071 - Assigned to: City facilities 900,476 - - - - Unassigned - - - - - Total fund balances 900,476 18,754,365 696,587 5,180,071 11,343,304 Total liabilities,deferred inflows of resources and fund balance $ 990,271 $ 18,757,778 $ 696,587 $ 5,204,576 $ 11,343,304 160 Transportation City Center Tigard Triangle Parks Parks Parks Capital Capital Capital Capital Bond SDC Improvement Improvement Improvement Fund Fund Fund Fund Fund Fund Total $ - $ - $ - $ - $ - $ - $ 5,756,021 23,307 - 32,042 664,317 2,837 30,034 1,265,062 - - - - - 500,000 500,000 496,526 781,688 9,549,196 2,270,375 759,052 6,197,777 50,778,584 $ 519,833 $ 781,688 $ 9,581,238 $ 2,934,692 $ 761,889 $ 6,727,811 $ 58,299,667 $ 194,197 $ - $ - $ 1,415,981 $ 620,509 $ 199 $ 2,345,186 - - - - 1,657,432 228,869 1,886,301 - - - 559,078 - - 559,078 194,197 - - 1,975,059 2,277,941 229,068 4,790,565 23,307 - - - - - 26,720 959,633 - - 31,057,302 302,329 781,688 9,581,238 - - - 10,665,255 - 696,587 - - - - 6,498,743 6,498,743 - - - - - 5,180,071 - - - - 900,476 (1,516,052) - (1,516,052) 302,329 781,688 9,581,238 959,633 (1,516,052) 6,498,743 53,482,382 $ 519,833 $ 781,688 $ 9,581,238 $ 2,934,692 $ 761,889 $ 6,727,811 $ 58,299,667 161 CITY OF TIGARD,OREGON CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE for the year ended June 30,2023 Transportation Underground Street Transportation Facility Development Utility Maintenance SDC Fund Tax Fund Fund Fee Fund _ Fund REVENUES Charges for services $ - $ - $ 1,120 $ 3,695,535 $ - System development charges - 3,622,572 - - 2,509,020 Intergovernmental revenues - - - - - Interest earnings 14,072 368,022 16,554 97,870 223,475 Net increase(decrease) in investment fair value 4,314 106,878 2,531 20,171 67,880 Miscellaneous revenues - - - 140 _ - Total revenues 18,386 4,097,472 20,205 3,813,716 2,800,375 EXPENDITURES Community development - - - - - Capital projects 508,086 - - 2,590,641 - Total expenditures 508,086 - - 2,590,641 - Change in fund balance before other financing sources(uses) (489,700) 4,097,472 20,205 1,223,075 2,800,375 OTHER FINANCING SOURCES(USES) Transfer in 507,178 - - - 89,700 Transfer out (26) (1,213,092) (49,823) (331,003) (1,100,238) Total other financing sources(uses) 507,152 (1,213,092) (49,823) (331,003) (1,010,538) Change in fund balance 17,452 2,884,380 (29,618) 892,072 1,789,837 Fund balance-Beginning of the year 883,024 15,869,985 726,205 4,287,999 9,553,467 Fund balance-End of the year $ 900,476 $ 18,754,365 $ 696,587 $ 5,180,071 $ 11,343,304 162 Transportation City Center Tigard Triangle Parks Parks Parks Capital Capital Capital Capital Bond SDC Improvement Improvement Improvement Fund Fund Fund Fund Fund Fund Total $ - $ - $ - $ 54,805 $ - $ - $ 3,751,460 - - 2,789,348 - - - 8,920,940 - - - 266,131 - - 266,131 - 24,042 206,874 - 34,687 137,229 1,122,825 - 5,208 79,310 8,610 45,583 74,491 414,976 28 - _ - 89 - - 257 28 29,250 3,075,532 329,635 80,270 211,720 14,476,589 - - - - - 1,607,231 1,607,231 3,161,056 - _ - 5,521,778 6,750,057 - 18,531,618 3,161,056 - - 5,521,778 6,750,057 1,607,231 20,138,849 (3,161,028) 29,250 3,075,532 (5,192,143) (6,669,787) (1,395,511) (5,662,260) 3,536,594 - 160,300 4,980,701 2,015,452 - 11,289,925 - (46,961) (5,422,998) - - - (8,164,141) 3,536,594 (46,961) (5,262,698) 4,980,701 2,015,452 - 3,125,784 375,566 (17,711) (2,187,166) (211,442) (4,654,335) (1,395,511) (2,536,476) (73,237) 799,399 11,768,404 1,171,075 3,138,283 7,894,254 56,018,858 $ 302,329 $ 781,688 $ 9,581,238 $ 959,633 $ (1,516,052) $ 6,498,743 $ 53,482,382 163 CITY OF TIGARD,OREGON FACILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ 14,175 $ 14,175 $ 14,072 $ (103) Net increase(decrease)in investment fair value - - 4,314 4,314 Total revenues 14,175 14,175 18,386 4,211 EXPENDITURES Capital projects 2,100,000 2,632,500 508,086 2,124,414 Change in fund balance before other financing sources(uses) (2,085,825) (2,618,325) (489,700) 2,128,625 OTHER FINANCING SOURCES(USES) Transfer in 2,200,000 2,732,500 507,178 (2,225,322) Transfer out (26) (26) (26) - Reserve for future expenditures (1,053,149) (1,053,149) - 1,053,149 Total other financing sources(uses) 1,146,825 1,679,325 507,152 (1,172,173) Change in fund balance (939,000) (939,000) 17,452 956,452 Fund balance-Beginning of the year 939,000 939,000 883,024 (55,976) Fund balance-End of the year $ - $ - $ 900,476 $ 900,476 164 CITY OF TIGARD,OREGON TRANSPORTATION DEVELOPMENT TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES System development charges $ 1,819,465 $ 1,819,465 $ 3,622,572 $ 1,803,107 Interest earnings 190,425 190,425 368,022 177,597 Net increase(decrease) in investment fair value - - 106,878 106,878 Total revenues 2,009,890 2,009,890 4,097,472 2,087,582 OTHER FINANCING SOURCES(USES) Transfer out (4,500,817) (4,500,817) (1,213,092) 3,287,725 Reserve for future expenditures (13,185,827) (13,185,827) - 13,185,827 Total other financing sources(uses) (17,686,644) (17,686,644) (1,213,092) 16,473,552 Change in fund balance (15,676,754) (15,676,754) 2,884,380 18,561,134 Fund balance-Beginning of the year 15,676,754 15,676,754 15,869,985 193,231 Fund balance-End of the year $ - $ - $ 18,754,365 $ 18,754,365 165 CITY OF TIGARD,OREGON UNDERGROUND UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 124,000 $ 124,000 $ 1,120 $ (122,880) Interest earnings 6,375 6,375 16,554 10,179 Net increase(decrease) in investment fair value - - 2,531 2,531 Total revenues 130,375 130,375 20,205 (110,170) OTHER FINANCING SOURCES(USES) Transfer out (102,654) (102,654) (49,823) 52,831 Reserve for future expenditures (715,116) (715,116) - 715,116 Total other financing uses (817,770) (817,770) (49,823) 767,947 Change in fund balance (687,395) (687,395) (29,618) 657,777 Fund balance-Beginning of the year 687,395 687,395 _ 726,205 38,810 Fund balance-End of the year $ - $ - $ 696,587 $ 696,587 166 CITY OF TIGARD,OREGON STREET MAINTENANCE FEE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,363,343 $ 3,363,343 $ 3,695,535 $ 332,192 Interest earnings 22,575 22,575 97,870 75,295 Net increase(decrease) in investment fair value - - 20,171 20,171 Miscellaneous revenues - - 140 140 Total revenues 3,385,918 3,385,918 3,813,716 427,798 EXPENDITURES Capital projects 3,440,000 4,120,000 2,590,641 1,529,359 Change in fund balance before other financing sources(uses) (54,082) (734,082) 1,223,075 1,957,157 OTHER FINANCING SOURCES(USES) Transfer out (331,003) (331,003) (331,003) - Reserve for future expenditures (2,620,837) (2,620,837) - 2,620,837 Total other financing sources(uses) (2,951,840) (2,951,840) (331,003) 2,620,837 Change in fund balance (3,005,922) (3,685,922) 892,072 4,577,994 Fund balance-Beginning of the year 3,005,922 3,685,922 4,287,999 602,077 Fund balance-End of the year $ - $ - $ 5,180,071 $ 5,180,071 167 CITY OF TIGARD,OREGON TRANSPORTATION SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES System development charges $ 1,521,440 $ 1,521,440 $ 2,509,020 $ 987,580 Interest earnings 108,000 108,000 223,475 115,475 Net increase(decrease) in investment fair value - - 67,880 67,880 Total revenues 1,629,440 1,629,440 2,800,375 1,170,935 OTHER FINANCING SOURCES(USES) Transfer in 89,700 89,700 89,700 - Transfer out (6,098,204) (6,098,204) (1,100,238) 4,997,966 Reserve for future expenditures (4,376,074) (4,376,074) - 4,376,074 Total other financing sources(uses) (10,384,578) (10,384,578) (1,010,538) 9,374,040 Change in fund balance (8,755,138) (8,755,138) 1,789,837 10,544,975 Fund balance-Beginning of the year 8,755,138 8,755,138 9,553,467 798,329 Fund balance-End of the year $ - $ - $ 11,343,304 $ 11,343,304 168 CITY OF TIGARD,OREGON PARKS CAPITAL FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues $ 4,696,695 $ 4,743,406 $ - $ (4,743,406) Miscellaneous revenues - - 28 28 Total revenues 4,696,695 4,743,406 28 (4,743,378) EXPENDITURES Capital projects 13,817,500 15,316,011 3,161,056 12,154,955 Change in fund balance before other financing sources(uses) (9,120,805) (10,572,605) (3,161,028) 7,411,577 OTHER FINANCING SOURCES(USES) Transfer in 9,136,000 10,587,800 3,536,594 (7,051,206) Reserve for future expenditures (281,923) (281,923) - 281,923 Total other financing sources(uses) 8,854,077 10,305,877 3,536,594 (6,769,283) Change in fund balance (266,728) (266,728) 375,566 642,294 Fund balance-Beginning of the year 266,728 266,728 (73,237) (339,965) Fund balance-End of the year $ - $ - $ 302,329 $ 302,329 169 CITY OF TIGARD,OREGON PARKS BOND FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 24,042 $ 24,042 Net increase(decrease)in investment fair value - - 5,208 5,208 Total revenues - - 29,250 29,250 OTHER FINANCING SOURCES(USES) Transfer out (826,457) (826,457) (46,961) 779,496 Change in fund balance (826,457) (826,457) (17,711) 808,746 Fund balance-Beginning of the year 826,457 826,457 799,399 (27,058) Fund balance-End of the year $ - $ - $ 781,688 $ 781,688 170 CITY OF TIGARD,OREGON PARKS SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES System development charges $ 1,495,466 $ 1,495,466 $ 2,789,348 $ 1,293,882 Interest earnings 158,325 158,325 206,874 48,549 Net increase(decrease) in investment fair value - - 79,310 79,310 Total revenues 1,653,791 1,653,791 3,075,532 1,421,741 OTHER FINANCING SOURCES(USES) Transfer in 160,300 160,300 160,300 - Transfer out (8,506,295) (9,941,295) (5,422,998) 4,518,297 Contingency - - - - Reserve for future expenditures (3,313,585) (3,263,585) - 3,263,585 Total other financing sources(uses) (11,659,580) (13,044,580) (5,262,698) 7,781,882 Change in fund balance (10,005,789) (11,390,789) (2,187,166) 9,203,623 Fund balance-Beginning of the year 10,005,789 11,390,789 11,768,404 377,615 Fund balance-End of the year $ - $ - $ 9,581,238 $ 9,581,238 171 CITY OF TIGARD,OREGON TRANSPORTATION CAPITAL IMPROVEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues $ 2,009,360 $ 2,265,653 $ 266,131 $ (1,999,522) Charges for services - - 54,805 54,805 Net increase(decrease) in investment fair value - - 8,610 8,610 Miscellaneous revenues - - 89 89 Total revenues 2,009,360 2,265,653 329,635 (1,936,018) EXPENDITURES Capital projects 17,517,500 18,982,651 5,521,778 13,460,873 Change in fund balance before other financing sources(uses) (15,508,140) (16,716,998) (5,192,143) 11,524,855 OTHER FINANCING SOURCES(USES) Transfer in 15,283,140 16,491,998 4,980,701 (11,511,297) Reserve for future expenditures (2,047,752) (2,047,752) - 2,047,752 Total other financing sources 13,235,388 14,444,246 4,980,701 (9,463,545) Change in fund balance (2,272,752) (2,272,752) (211,442) 2,061,310 Fund balance-Beginning of the year 2,272,752 2,272,752 1,171,075 (1,101,677) Fund balance-End of the year $ - $ - $ 959,633 $ 959,633 172 CITY OF TIGARD,OREGON CITY CENTER CAPITAL IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues $ 1,818,000 $ 1,818,000 $ - $ (1,818,000) Interest earnings 10,868 10,868 34,687 23,819 Net increase(decrease) in investment fair value - - 45,583 45,583 Total revenues 1,828,868 1,828,868 80,270 (1,748,598) EXPENDITURES * Capital projects 6,671,500 7,121,500 6,750,057 371,443 Total expenditures 6,671,500 7,121,500 6,750,057 371,443 Change in fund balance before other financing sources(uses) (4,842,632) (5,292,632) (6,669,787) (1,377,155) OTHER FINANCING SOURCES(USES) Transfer in 349,500 799,500 2,015,452 1,215,952 Debt proceeds 900,000 900,000 900,000 - Reserve for future expenditures (798,996) (798,996) - 798,996 Total other financing sources 450,504 900,504 2,915,452 2,014,948 Change in fund balance (4,392,128) (4,392,128) (3,754,335) 637,793 Fund balance-Beginning of the year 4,392,128 4,392,128 3,895,715 (496,413) Fund balance-End of the year $ - $ - 141,380 $ 141,380 Reconciliation of budgetary fund balance to GAAP basis fund balance: Interfund loans are treated as other financing sources(uses) (1,657,432) on a budgetary basis Fund balance-GAAP basis $ (1,516,052) * For budgetary purposes expenditures are appropriated as capital projects, however on the GAAP statements non-capital transactions are recorded as program expenditures 173 CITY OF TIGARD,OREGON TIGARD TRIANGLE CAPITAL IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 137,229 $ 137,229 Net increase(decrease) in investment fair value - - 74,491 74,491 Total revenues - - 211,720 211,720 EXPENDITURES Community development 2,219,500 2,219,500 1,607,231 612,269 * Capital projects 1,000,000 1,000,000 - 1,000,000 Total expenditures 3,219,500 3,219,500 1,607,231 1,612,269 Change in fund balance before other financing sources(uses) (3,219,500) (3,219,500) (1,395,511) 1,823,989 OTHER FINANCING SOURCES(USES) Transfer in 1,719,500 1,719,500 - (1,719,500) Transfer out (2,958,000) (2,958,000) - 2,958,000 Reserve for future expenditures (3,306,241) (3,306,241) - 3,306,241 Total other financing sources (4,544,741) (4,544,741) - 4,544,741 Change in fund balance (7,764,241) (7,764,241) (1,395,511) 6,368,730 Fund balance-Beginning of the year 7,764,241 7,764,241 8,123,123 358,882 Fund balance-End of the year $ - $ - 6,727,612 $ 6,727,612 Reconciliation of budgetary fund balance to GAAP basis fund balance: Interfund loans are treated as other financing sources(uses) on a budgetary basis (228,869) Fund balance-GAAP basis $ 6,498,743 * For budgetary purposes expenditures are appropriated as capital projects,however on the GAAP statements non-capital transactions are recorded as program expenditures 174 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. 175 176 CITY OF TIGARD,OREGON SANITARY SEWER FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,560,731 $ 3,560,731 $ 4,572,715 $ 1,011,984 Connection fees 92,200 92,200 177,600 85,400 Interest earnings 82,725 82,725 268,400 185,675 Net increase(decrease) in investment fair value - - 57,968 57,968 Miscellaneous revenues 42,100 42,100 10,520 (31,580) Total revenues 3,777,756 3,777,756 5,087,203 1,309,447 EXPENDITURES Public works 3,225,698 3,250,698 2,903,662 347,036 Capital projects 245,000 245,000 110,595 134,405 Total expenditures 3,470,698 3,495,698 3,014,257 481,441 Change in fund balance before other financing sources(uses) 307,058 282,058 2,072,946 1,790,888 OTHER FINANCING SOURCES(USES) Transfer out (3,067,150) (3,067,150) (1,473,782) 1,593,368 Interfund loan (900,000) (900,000) (900,000) - Contingency (200,000) (175,000) - 175,000 Reserve for future expenditures (4,857,411) (4,857,411) - 4,857,411 Total other financing sources(uses) (9,024,561) (8,999,561) (2,373,782) 6,625,779 Change in fund balance (8,717,503) (8,717,503) (300,836) 8,416,667 Fund balance-Beginning of the year 8,717,503 8,717,503 9,551,849 834,346 Fund balance-End of the year $ - $ - $ 9,251,013 $ 9,251,013 177 CITY OF TIGARD,OREGON SANITARY SEWER FUND RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30,2023 Operating and Non-Operating Expenditures/ Revenues Expenses Budgetary basis $ 5,087,203 $ 3,014,257 Unavailable revenue (1,705) - Contributed capital 444,966 - Compensated absences - 6,842 Expenditures capitalized - (482,796) Depreciation expense - 875,900 Net OPEB obligation - (7,866) Operating and non-operating revenue and expenses-GAAP basis $ 5,530,464 $ 3,406,337 178 CITY OF TIGARD,OREGON STORMWATER FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 5,869,141 $ 5,869,141 $ 5,776,197 $ (92,944) Licenses and permits - - 216,191 216,191 Interest earnings 104,925 104,925 164,218 59,293 Net increase(decrease)in investment fair value - - 45,082 45,082 Miscellaneous revenues 5,000 5,000 10,152 5,152 Total revenues 5,979,066 5,979,066 6,211,840 232,774 EXPENDITURES Public works 4,377,319 4,425,319 3,807,404 617,915 Capital projects 7,939,000 7,939,000 2,045,978 5,893,022 Total expenditures 12,316,319 12,364,319 5,853,382 6,510,937 Change in fund balance before other financing sources(uses) (6,337,253) (6,385,253) 358,458 6,743,711 OTHER FINANCING USES Transfer in 2,155,500 2,155,500 601,253 (1,554,247) Transfer out (1,479,317) (1,479,317) (1,198,417) 280,900 Contingency (275,000) (227,000) - 227,000 Reserve for future expenditures (3,570,536) (3,570,536) - 3,570,536 Total other financing uses (3,169,353) (3,121,353) (597,164) 2,524,189 Change in fund balance (9,506,606) (9,506,606) (238,706) 9,267,900 Fund balance-Beginning of the year 9,506,606 9,506,606 8,792,420 (714,186) Fund balance-End of the year $ - $ - $ 8,553,714 $ 8,553,714 179 CITY OF TIGARD,OREGON WATER QUALITY/QUANTITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 2,000 $ 2,000 $ 2,419 $ 419 Interest earnings 19,350 19,350 24,578 5,228 Net increase(decrease) in investment fair value - - 7,143 7,143 Total revenues 21,350 21,350 34,140 12,790 OTHER FINANCING SOURCES(USES) Transfer out (340,000) (340,000) (277,835) 62,165 Reserve for future expenditures (1,034,004) (1,034,004) - 1,034,004 Total other financing sources(uses) (1,374,004) (1,374,004) (277,835) 1,096,169 Change in fund balance (1,352,654) (1,352,654) (243,695) 1,108,959 Fund balance-Beginning of the year 1,352,654 1,352,654 1,313,715 (38,939) Fund balance-End of the year $ - $ - $ 1,070,020 $ 1,070,020 180 CITY OF TIGARD,OREGON STORMWATER FUNDS RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30,2023 Operating and Non-operating Expenditures/ Revenues Expenses Stormwater $ 6,813,093 $ 7,051,799 Water Quality/Quantity 34,140 277,835 Total,budgetary basis 6,847,233 7,329,634 Contributed capital 106,309 - Loss on disposal of capital assets (4,151) - Compensated absences - 14,616 Expenditures capitalized - (2,258,302) Depreciation expense - 783,205 Net OPEB obligation - (20,821) Operating and non-operating revenue and expenses-GAAP basis $ 6,949,391 $ 5,848,332 181 CITY OF TIGARD,OREGON WATER FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 27,621,401 $ 27,621,401 $ 26,189,421 $ (1,431,980) Interest earnings 375,525 375,525 1,106,993 731,468 Net increase(decrease)in investment fair value - - 329,639 329,639 Miscellaneous revenues 50,000 50,000 50,008 8 Total revenues 28,046,926 28,046,926 27,676,061 (370,865) EXPENDITURES Public works 11,271,128 11,495,128 9,661,532 1,833,596 Change in fund balance before other financing sources(uses) 16,775,798 16,551,798 18,014,529 1,462,731 OTHER FINANCING SOURCES(USES) Transfer out (29,460,272) (30,239,772) (16,132,312) 14,107,460 Contingency (475,000) (411,000) - 411,000 Reserve for future expenditures (37,635,714) (37,635,714) - 37,635,714 Total other financing sources(uses) (67,570,986) (68,286,486) (16,132,312) 52,154,174 Change in fund balance (50,795,188) (51,734,688) 1,882,217 53,616,905 Fund balance-Beginning of the year 50,795,188 51,734,688 53,765,191 2,030,503 Fund balance-End of the year $ - $ - $ 55,647,408 $ 55,647,408 182 CITY OF TIGARD,OREGON WATER SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES System development charges $ 2,054,999 $ 2,054,999 $ 3,183,196 $ 1,128,197 Interest earnings 193,650 193,650 366,519 172,869 Net increase(decrease) in investment fair value - - 103,854 103,854 Miscellaneous revenues - - 70,731 70,731 Total revenues 2,248,649 2,248,649 3,724,300 1,475,651 OTHER FINANCING SOURCES(USES) Transfer out (8,124,345) (8,737,845) (3,315,950) 5,421,895 Reserve for future expenditures (8,049,890) (8,049,890) - 8,049,890 Total other financing sources(uses) (16,174,235) (16,787,735) (3,315,950) 13,471,785 Change in fund balance (13,925,586) (14,539,086) 408,350 14,947,436 Fund balance-Beginning of the year 13,925,586 14,539,086 17,223,294 2,684,208 Fund balance-End of the year $ - $ - $ 17,631,644 $ 17,631,644 183 CITY OF TIGARD,OREGON WATER CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Net increase(decrease) in investment fair value $ - $ - $ 16,066 $ 16,066 Miscellaneous revenues - - 40 40 Total revenues - - 16,106 16,106 EXPENDITURES Capital projects 27,920,000 28,850,500 9,415,203 19,435,297 Change in fund balance before other financing sources(uses) (27,920,000) (28,850,500) (9,399,097) 19,451,403 OTHER FINANCING SOURCES(USES) Transfer in 27,920,000 28,850,500 10,450,163 (18,400,337) Reserve for future expenditures (2,542,661) (2,542,661) - 2,542,661 Total other financing sources(uses) 25,377,339 26,307,839 10,450,163 (15,857,676) Change in fund balance (2,542,661) (2,542,661) 1,051,066 3,593,727 Fund balance-Beginning of the year 2,542,661 2,542,661 525,841 (2,016,820) Fund balance-End of the year $ - $ - $ 1,576,907 $ 1,576,907 184 CITY OF TIGARD,OREGON WATER DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 72,146 $ 72,146 Net increase(decrease) in investment fair value - - 15,630 15,630 Total revenues - - 87,776 87,776 EXPENDITURES Debt service: Principal 3,655,534 3,655,534 3,655,533 1 Interest 3,548,913 3,548,913 3,548,913 - Total expenditures 7,204,447 7,204,447 7,204,446 1 Change in fund balance before other financing sources(uses) (7,204,447) (7,204,447) (7,116,670) 87,777 OTHER FINANCING SOURCES(USES) Transfer in 7,213,000 7,213,000 7,204,446 (8,554) Reserve for future expenditures (2,723,425) (2,723,425) - 2,723,425 Total other financing sources(uses) 4,489,575 4,489,575 7,204,446 2,714,871 Change in fund balance (2,714,872) (2,714,872) 87,776 2,802,648 Fund balance-Beginning of the year 2,714,872 2,714,872 2,423,660 (291,212) Fund balance-End of the year $ - $ - $ 2,511,436 $ 2,511,436 185 CITY OF TIGARD,OREGON WATER FUNDS RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30,2023 Operating and Non-operating Expenditures/ Revenues Expenses Water $ 27,676,061 $ 25,793,844 Water SDC 3,724,300 3,315,950 Water CIP 10,466,269 9,415,203 Water Debt Service 7,292,222 7,204,446 Total,budgetary basis 49,158,852 45,729,443 Contributed capital 307,196 - Loss on investment in joint venture (208,382) - Elimination of water interfund transfers (17,654,609) (17,654,609) Compensated absences - (3,986) Expenditures capitalized - (8,861,783) Principal payments - (3,655,533) Accrued interest - (1,809) Amortization of bond premium - (295,772) Amortization of deferred outflows related to bond refunding - 40,416 Depreciation expense - 5,335,387 Net OPEB obligation - 4,591 Operating and non-operating revenue and expenses-GAAP basis $ 31,603,057 $ 20,636,345 186 CITY OF TIGARD,OREGON ENTERPRISE FUNDS RECONCILIATION OF BUDGETARY FUND BALANCE TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET POSITION June 30,2023 Total Total Total Sanitary Sewer Stormwater Water Sanitary Sewer Fund $ 9,251,013 $ - $ - Stormwater Fund - 8,553,714 - Water Quality/Quantity Fund - 1,070,020 - Water Fund - - 55,647,408 Water SDC Fund - - 17,631,644 Water CIP Fund - - 1,576,907 Water Debt Service Fund - - 2,511,436 Fund balance-budget basis 9,251,013 9,623,734 77,367,395 Adjustments from budgetary basis to generally accepted accounting principles basis: Capital assets,net 18,668,498 16,765,086 201,915,013 Investment in joint venture - - 2,226,882 Sewer funds payable (21,760) - - Assets held for resale 185,021 260,021 - Unavailable revenue 1,958 - 14,764 Compensated absences (33,347) (23,375) (43,288) Long-term debt - - (119,614,324) Accrued interest payable - - (1,505,710) Interfund loans 1,002,320 - - Deferred Outflow OPEB 3,875 4,190 9,067 Deferred Outflow bond refunding - - 3,527,248 Deferred Inflow OPEB (8,166) (8,267) (19,970) OPEB liability (22,551) (21,949) (56,491) Total Net Position-GAAP basis $ 29,026,861 $ 26,599,440 $ 163,820,586 187 No content appears on this page by design. 188 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. IT Replacement Fund — Accounts for activity related to the replacement of IT equipment, including computers, servers, and software. Resources are charges to city departments and internal customers that use the IT equipment. Facilities Replacement Fund—Accounts for activity related to the replacement of facility assets. Resources are charges to city departments and internal customers that occupy and use the facilities. 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. Fleet/Vehicle Replacement Fund — Accounts for activity related to replacement of vehicles. Resources are charges to city departments and internal customers that use the vehicles. 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. 189 190 No content appears on this page by design. 191 CITY OF TIGARD,OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION June 30,2023 Central IT Facilities Services Replacement Replacement Fund Fund Fund ASSETS Cash and investments $ 4,288,213 $ 3,182,060 $ 4,517,085 Accounts receivable 3,138 1,830 3,578 Inventory - - - Total assets 4,291,351 3,183,890 4,520,663 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to OPEB 37,349 - - LIABILITIES Accounts payable and accrued liabilities 626,760 - - Customer deposits - - - Unearned revenue 16,500 - - Accrued compensated absences 416,610 - - Total OPEB liability 285,126 - - Total liabilities 1,344,996 - - DEFERRED INFLOWS OF RESOURCES Deferred inflows related to OPEB 94,402 - - NET POSITION Net position,unrestricted $ 2,889,302 $ 3,183,890 $ 4,520,663 192 Public Works Public Works Fleet/Property Fleet/Vehicle Administration Engineering Management Replacement Insurance Fund Fund Fund Fund Fund Total $ 1,333,703 $ 5,869,956 $ 1,605,641 $ 7,540,457 $ 1,598,381 $ 29,935,496 1,076 3,878 59,892 6,721 4,765 84,878 2,770 - - 2,770 1,334,779 5,873,834 1,668,303 7,547,178 1,603,146 30,023,144 22,610 12,327 5,323 - - 77,609 83,877 136,682 263,703 58,512 328 1,169,862 177,737 - - - 177,737 16,500 58,482 80,867 26,264 - - 582,223 172,616 94,115 40,641 - - 592,498 314,975 489,401 330,608 58,512 328 2,538,820 57,151 31,161 13,456 - 196,170 $ 985,263 $ 5,365,599 $ 1,329,562 $ 7,488,666 $ 1,602,818 $ 27,365,763 193 CITY OF TIGARD,OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION for the year ended June 30,2023 Central IT Facilities Services Replacement Replacement Fund Fund Fund OPERATING REVENUES Charges for services $ 13,450,425 $ 1,211,897 $ 323,760 Miscellaneous revenues 7,956 - - Total operating revenues 13,458,381 1,211,897 323,760 OPERATING EXPENSES Salaries and wages 8,597,406 - - Contracted services 2,658,717 - - General,administrative and other 3,569,943 121,250 - Total operating expenses 14,826,066 121,250 - Operating income(loss) (1,367,685) 1,090,647 323,760 NONOPERATING REVENUE Interest revenue 144,621 67,042 103,734 Net increase(decrease)in investment fair value 34,999 (2,278) (3,236) Intergovernmental revenues 92,000 - - Total non-operating revenue 271,620 64,764 100,498 Income(loss)before contributions and transfers (1,096,065) 1,155,411 424,258 CONTRIBUTIONS AND TRANSFERS Transfer in 1,577,822 2,028,479 4,096,405 Transfer out (1,000,000) - - Change in net position (518,243) 3,183,890 4,520,663 Net position-Beginning of year,as originally stated 3,407,545 - - Net position-End of year $ 2,889,302 $ 3,183,890 $ 4,520,663 194 Public Works Public Works Fleet/Property Fleet/Vehicle Administration Engineering Management Replacement Insurance Fund Fund Fund Fund Fund Total $ 2,698,177 $ 4,221,708 $ 3,066,967 $ 715,119 $ 71,201 $ 25,759,254 1,332 3,614 76,431 47,962 85,137 222,432 2,699,509 4,225,322 3,143,398 763,081 156,338 25,981,686 1,355,706 2,195,238 961,136 - 9,084 13,118,570 75,949 185,860 338,151 - 1,748 3,260,425 1,211,253 1,264,261 1,548,247 772,085 60,368 8,547,407 2,642,908 3,645,359 2,847,534 772,085 71,200 24,926,402 56,601 579,963 295,864 (9,004) 85,138 1,055,284 33,319 129,105 34,689 177,774 34,462 724,746 3,911 24,377 13,961 (5,404) 8,925 75,255 92,000 37,230 153,482 48,650 172,370 43,387 892,001 - 93,831 733,445 344,514 163,366 128,525 1,947,285 58,306 472,588 - 7,325,300 - 15,558,900 - - (1,000,000) - - (2,000,000) 152,137 1,206,033 (655,486) 7,488,666 128,525 15,506,185 833,126 4,159,566 1,985,048 - 1,474,293 11,859,578 $ 985,263 $ 5,365,599 $ 1,329,562 $ 7,488,666 $ 1,602,818 $ 27,365,763 195 CITY OF TIGARD,OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS for the year ended June 30,2023 IT Facilities Central Services Replacement Replacement Fund Fund Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 13,447,299 $ 1,210,067 $ 320,182 Payments to suppliers (5,944,312) (121,250) - Payments to employees (8,558,019) - - Other receipts 7,956 -Net cash provided(used) by operating activities (1,047,076) 1,088,817 320,182 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Intergovernmental revenues 92,000 - - Transfer from other funds 1,577,822 2,028,479 4,096,405 Transfer to other funds (1,000,000) -Net cash flows from noncapital financing activities 669,822 2,028,479 4,096,405 CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings 179,621 64,764 100,498 Net increase in cash and investments (197,633) 3,182,060 4,517,085 Cash and investments--beginning of the year 4,485,846 - - Cash and investments--end of the year $ 4,288,213 $ 3,182,060 $ 4,517,085 RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES Operating income(loss) $ (1,367,685) $ 1,090,647 $ 323,760 Adjustments to reconcile operating income(loss)to net cash provided(used)by operating activities CHANGE IN ASSETS AND LIABILITIES Receivables (3,126) (1,830) (3,578) Prepaids 158,142 - - Inventory - - - Accounts payable 126,206 - - Customer deposits - - - Accrued compensated absences (38,314) - - Total OPEB liability and related balances 77,701 -Net cash provided(used) by operating activities $ (1,047,076) $ 1,088,817 $ 320,182 196 Public Works Public Works Fleet/Property Fleet/Vehicle Administration Engineering Management Replacement Insurance Fund Fund Fund Fund Fund Total $ 2,697,101 $ 4,221,825 $ 3,028,288 $ 708,398 $ 67,356 $ 25,700,516 (1,263,953) (1,470,550) (1,756,275) (713,573) (99,271) (11,369,184) (1,262,384) (2,330,747) (961,386) - (10,708) (13,123,244) 1,332 3,614 76,431 47,962 85,137 222,432 172,096 424,142 387,058 42,787 42,514 1,430,520 - - - 92,000 58,306 472,588 - 7,325,300 - 15,558,900 - - (1,000,000) - - (2,000,000) 58,306 472,588 (1,000,000) 7,325,300 - 13,650,900 37,230 153,482 48,650 172,370 43,386 800,001 267,632 1,050,212 (564,292) 7,540,457 85,900 15,881,421 1,066,071 4,819,744 2,169,933 - 1,512,481 14,054,075 $ 1,333,703 $ 5,869,956 $ 1,605,641 $ 7,540,457 $ 1,598,381 $ 29,935,496 $ 56,601 $ 579,963 $ 295,864 $ (9,004) $ 85,138 $ 1,055,284 (1,076) (3,878) (59,892) (6,721) (3,845) (83,946) - - 21,213 - - 179,355 - - (1,494) - - (1,494) 23,249 (20,429) 131,617 58,512 (37,155) 282,000 - 3,995 - - - 3,995 6,582 (11,110) 3,879 - (1,624) (40,587) 86,740 (124,399) (4,129) - - 35,913 $ 172,096 $ 424,142 $ 387,058 $ 42,787 $ 42,514 $ 1,430,520 197 CITY OF TIGARD,OREGON CENTRAL SERVICES FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 14,630,084 $ 14,630,084 $ 13,450,425 $ (1,179,659) Intergovernmental revenues - 92,000 92,000 - Interest earnings - - 144,621 144,621 Net increase(decrease)in investment fair value - - 34,999 34,999 Miscellaneous revenues 30,000 30,000 7,956 (22,044) Total revenues 14,660,084 14,752,084 13,730,001 (1,022,083) EXPENDITURES Policy and administration 17,006,163 18,664,163 14,748,365 3,915,798 Change in fund balance before other financing sources(uses) (2,346,079) (3,912,079) (1,018,364) 2,893,715 OTHER FINANCING SOURCES(USES) Transfer in 887,822 1,577,822 1,577,822 - Transfer out (1,000,000) (1,000,000) (1,000,000) - Contingency (500,000) (110,000) - 110,000 Reserve for future expenditures (52,804) (52,804) - 52,804 Total other financing sources(uses) (664,982) 415,018 577,822 162,804 Change in fund balance (3,011,061) (3,497,061) (440,542) 3,056,519 Fund balance-Beginning of the year 3,011,061 3,497,061 3,672,023 174,962 Fund balance-End of the year $ - $ - 3,231,481 $ 3,231,481 Reconciliation of budgetary fund balance to GAAP basis net position: Total OPEB liability (285,126) Deferred Outflow OPEB 37,349 Deferred Inflow OPEB (94,402) Total net position,GAAP basis $ 2,889,302 198 CITY OF TIGARD,OREGON INFORMATION TECHNOLOGY REPLACEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 1,210,316 $ 1,210,316 $ 1,211,897 $ 1,581 Interest earnings - - 67,042 67,042 Net increase(decrease)in investment fair value - - (2,278) (2,278) Total revenues 1,210,316 1,210,316 1,276,661 66,345 EXPENDITURES Policy and administration 135,500 135,500 121,250 14,250 Change in fund balance before other financing sources(uses) 1,074,816 1,074,816 1,155,411 80,595 OTHER FINANCING SOURCES(USES) Transfer in 2,028,479 2,028,479 2,028,479 - Reserve for future expenditures (3,103,295) (3,103,295) - 3,103,295 Total other financing sources(uses) (1,074,816) (1,074,816) 2,028,479 3,103,295 Change in fund balance - - 3,183,890 3,183,890 Fund balance-Beginning of the year - - - - Fund balance-End of the year $ - $ - $ 3,183,890 $ 3,183,890 199 CITY OF TIGARD,OREGON FACILITIES REPLACEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 323,760 $ 323,760 $ 323,760 $ - Interest earnings - - 103,734 103,734 Net increase (decrease)in investment fair value - - (3,236) (3,236) Total revenues 323,760 323,760 424,258 100,498 OTHER FINANCING SOURCES(USES) Transfer in 4,096,405 4,096,405 4,096,405 - Reserve for future expenditures (4,420,165) (4,420,165) - 4,420,165 Total other financing sources(uses) (323,760) (323,760) 4,096,405 4,420,165 Change in fund balance - - 4,520,663 4,520,663 Fund balance-Beginning of the year - - - - Fund balance-End of the year $ - $ - $ 4,520,663 $ 4,520,663 200 CITY OF TIGARD,OREGON PUBLIC WORKS ADMINISTRATION FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,003,163 $ 3,003,163 $ 2,698,177 $ (304,986) Interest earnings - - 33,319 33,319 Net increase (decrease)in investment fair value - - 3,911 3,911 Miscellaneous revenues - - 1,332 1,332 Total revenues 3,003,163 3,003,163 2,736,739 (266,424) EXPENDITURES Policy and administration 3,164,721 3,226,721 2,556,168 670,553 Change in fund balance before other financing sources(uses) (161,558) (223,558) 180,571 404,129 OTHER FINANCING SOURCES(USES) Transfer in 58,306 58,306 58,306 - Contingency (125,000) (63,000) - 63,000 Reserve for future expenditures (303,092) (303,092) - 303,092 Total other financing sources(uses) (369,786) (307,786) 58,306 366,092 Change in fund balance (531,344) (531,344) 238,877 770,221 Fund balance-Beginning of the year 531,344 531,344 953,543 422,199 Fund balance-End of the year $ - $ - 1,192,420 $ 1,192,420 Reconciliation of budgetary fund balance to GAAP basis net position: Total OPEB liability (172,616) Deferred Outflow OPEB 22,610 Deferred Inflow OPEB (57,151) Total net position,GAAP basis $ 985,263 201 CITY OF TIGARD,OREGON PUBLIC WORKS ENGINEERING FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,681,089 $ 3,681,089 $ 4,221,708 $ 540,619 Interest earnings - - 129,105 129,105 Net increase (decrease) in investment fair value - - 24,377 24,377 Miscellaneous revenues 5,094 5,094 3,614 (1,480) Total revenues 3,686,183 3,686,183 4,378,804 692,621 EXPENDITURES Policy and administration 4,568,292 4,771,292 3,769,758 1,001,534 Change in fund balance before other financing sources(uses) (882,109) (1,085,109) 609,046 1,694,155 OTHER FINANCING SOURCES(USES) Transfer in 643,653 643,653 472,588 (171,065) Contingency (150,000) (150,000) - 150,000 Reserve for future expenditures (2,522,333) (2,398,333) - 2,398,333 Total other financing sources(uses) (2,028,680) (1,904,680) 472,588 2,377,268 Change in fund balance (2,910,789) (2,989,789) 1,081,634 4,071,423 Fund balance-Beginning of the year 2,910,789 2,989,789 4,396,914 1,407,125 Fund balance-End of the year $ - $ - 5,478,548 $ 5,478,548 Reconciliation of budgetary fund balance to GAAP basis net position: Total OPEB liability (94,115) Deferred Outflow OPEB 12,327 Deferred Inflow OPEB (31,161) Total net position,GAAP basis $ 5,365,599 202 CITY OF TIGARD,OREGON FLEET/PROPERTY MANAGEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,064,063 $ 3,064,063 $ 3,066,967 $ 2,904 Interest earnings - - 34,689 34,689 Net increase (decrease) in investment fair value - - 13,961 13,961 Miscellaneous revenues 5,000 5,000 76,431 71,431 Total revenues 3,069,063 3,069,063 3,192,048 122,985 EXPENDITURES Policy and administration 3,252,535 3,402,035 2,851,663 550,372 Change in fund balance before other financing sources(uses) (183,472) (332,972) 340,385 673,357 OTHER FINANCING SOURCES(USES) Transfer out (1,000,000) (1,000,000) (1,000,000) - Contingency (125,000) (79,000) - 79,000 Reserve for future expenditures (92,364) (92,364) - 92,364 Total other financing sources(uses) (1,217,364) (1,171,364) (1,000,000) 171,364 Change in fund balance (1,400,836) (1,504,336) (659,615) 844,721 Fund balance-Beginning of the year 1,400,836 1,504,336 2,037,951 533,615 Fund balance-End of the year $ - $ - 1,378,336 $ 1,378,336 Reconciliation of budgetary fund balance to GAAP basis net position: Total OPEB liability (40,641) Deferred Outflow OPEB 5,323 Deferred Inflow OPEB (13,456) Total net position,GAAP basis $ 1,329,562 203 CITY OF TIGARD,OREGON FLEET/VEHICLE REPLACEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final _ Amounts budget REVENUES Charges for services $ 716,700 $ 716,700 $ 715,119 $ (1,581) Interest earnings - - 177,774 177,774 Net increase(decrease)in investment fair value - - (5,404) (5,404) Miscellaneous revenues - - 47,962 47,962 Total revenues 716,700 716,700 935,451 218,751 EXPENDITURES Policy and administration 1,065,000 1,065,000 772,085 292,915 Change in fund balance before other financing sources(uses) (348,300) (348,300) 163,366 511,666 OTHER FINANCING SOURCES(USES) Transfer in 7,325,300 7,325,300 7,325,300 - Reserve for future expenditures (6,977,000) (6,977,000) - 6,977,000 Total other financing sources(uses) 348,300 348,300 7,325,300 6,977,000 Change in fund balance - - 7,488,666 7,488,666 Fund balance-Beginning of the year - - - - Fund balance-End of the year $ - $ - $ 7,488,666 $ 7,488,666 204 CITY OF TIGARD,OREGON INSURANCE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2023 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 427,077 $ 427,077 $ 71,201 $ (355,876) Interest earnings 19,875 19,875 34,462 14,587 Net increase(decrease) in investment fair value - - 8,925 8,925 Miscellaneous revenues 39,000 39,000 85,137 46,137 Total revenues 485,952 485,952 199,725 (286,227) EXPENDITURES Policy and administration 485,990 485,990 71,200 414,790 Change in fund balance before other financing sources(uses) (38) (38) 128,525 128,563 OTHER FINANCING SOURCES(USES) Contingency (25,000) (25,000) - 25,000 Reserve for future expenditures (1,359,671) (1,359,671) - 1,359,671 Total other financing sources(uses) (1,384,671) (1,384,671) - 1,384,671 Change in fund balance (1,384,709) (1,384,709) 128,525 1,513,234 Fund balance-Beginning of the year 1,384,709 1,384,709 1,474,293 89,584 Fund balance-End of the year $ - $ - $ 1,602,818 $ 1,602,818 205 No content appears on this page by design. 206 Other Schedules 207 208 CITY OF TIGARD,OREGON SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS For the fiscal year ended June 30,2023 Interest Transactions Original Outstanding Matured/ Outstanding Issue June 30,2022 Additions Called Paid Matured Paid June 30,2023 General Obligation Bonds Issued February 3,2011 $ 8,655,000 $ 885,000 $ - $ 885,000 $ (885,000) $ - $ 17,700 $ (17,700) Issued April 28,2020 5,981,000 5,201,000 - 549,000 (549,000) 4,652,000 69,693 (69,693) Issued February 3,2011 17,000,000 3,725,000 - 875,000 (875,000) 2,850,000 153,850 (153,850) $ 9,811,000 $ - $ 2,309,000 $ (2,309,000) $ 7,502,000 $ 241,243 $ (241,243) Full Faith&Credit Bonds Issued August 29,2019 $ 5,929,000 $ 5,440,000 $ - $ 254,000 $ (254,000) $ 5,186,000 $ 151,731 $ (151,731) Issued September 29,2021 4,624,600 4,437,400 - 281,700 (281,700) 4,155,700 79,399 (79,399) $ 9,877,400 $ - $ 535,700 $ (535,700) $ 9,341,700 $ 231,130 $ (231,130) Water Revenue Bonds Issued May 1,2012 $97,720,000 $ 2,365,000 $ - $ 2,365,000 $ (2,365,000) $ - $ 47,300 $ (47,300) Issued May 3,2015 30,810,000 29,765,000 - 200,000 (200,000) 29,565,000 1,468,500 (1,468,500) Issued November 3,2020 86,575,000 85,625,000 - 970,000 (970,000) 84,655,000 1,992,463 (1,992,463) $ 117,755,000 $ - $ 3,535,000 $ (3,535,000) $ 114,220,000 $3,508,263 $(3,508,263) Long-term Note Issued December 1,2011 $ 2,398,000 $ 1,355,000 $ - $ 120,531 $ (120,531) $ 1,234,469 $ 40,650 $ (40,650) Urban Renewal Bonds Issued September 29,2021 $ 4,687,800 $ 4,482,000 $ - $ 265,000 $ (265,000) $ 4,217,000 $ 127,737 $ (127,737) 209 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF GENERAL OBLIGATION BONDS For the fiscal year ended June 30,2023 Total Debt Series 2020 Series 2011A Service Requirement Issued:April 28,2020 Issued:February 3,2011 Fiscal Year Total Total 1.34% 3.00%to 4.75% of Maturity Principal Interest Principal Interest Principal Interest 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 $ 7,502,000 $ 365,985 $ 4,652,000 $ 122,610 $ 2,850,000 $ 243,375 210 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF FULL FAITH&CREDIT BONDS For the fiscal year ended June 30,2023 Total Debt Series 2019A Series 20198 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 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 80,629 692,000 16,331 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 6,357 - - - - 274,800 4,645 80,000 1,712 $ 9,341,700 $ 1,694,190 $ 1,650,000 $ 308,357 $ 3,536,000 $ 846,618 $ 3,237,000 $ 395,762 $ 918,700 $ 143,453 211 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF WATER REVENUE BONDS For the fiscal year ended June 30,2023 Total Debt Service Requirement Issued:May 3,2015 Issued:November 3,2020 Fiscal Year Total Total 3.00%to 5.00% 2.00%to 2.90% of Maturity Principal Interest Principal Interest Principal Interest 2024 $ 3,640,000 $ 3,408,763 $ 210,000 $ 1,460,300 $ 3,430,000 $ 1,948,463 2025 3,715,000 3,330,962 215,000 1,451,800 3,500,000 1,879,162 2026 3,795,000 3,251,463 225,000 1,443,000 3,570,000 1,808,463 2027 3,875,000 3,170,162 235,000 1,433,800 3,640,000 1,736,362 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 2,819,162 280,000 1,386,050 3,945,000 1,433,112 2032 4,315,000 2,727,662 290,000 1,374,250 4,025,000 1,353,412 2033 4,415,000 2,629,382 305,000 1,359,375 4,110,000 1,270,007 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 2,029,722 395,000 1,271,875 4,620,000 757,847 2039 5,160,000 1,886,482 420,000 1,251,500 4,740,000 634,982 2040 5,310,000 1,736,432 440,000 1,230,000 4,870,000 506,432 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 - - $ 114,220,000 $ 51,363,494 $ 29,565,000 $ 28,473,000 $ 84,655,000 $ 22,890,494 212 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF SAFE DRINKING WATER REVOLVING LOAN FUNDS For the fiscal year ended June 30,2023 Issued:December 1,2011 Fiscal Year 3.00% of Maturity Principal Interest 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 130,492 3,915 $ 1,234,469 $ 189,404 213 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF URBAN RENEWAL AND REDEVELOPMENT BONDS For the fiscal year ended June 30,2023 Issued:September 29,2021 Fiscal Year 2.85% of Maturity Principal Interest 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 $ 4,217,000 $ 888,476 214 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS WATER FUND For the fiscal year ended June 30,2023 Total Debt Service Requirement Water Revenue Bonds ARRA Water Loan Issued:May 3,2015 Issued:November 3,2020 Issued:December 1,2011 Fiscal Year Total Total 3.00%to 5.00% 2.00%to 2.90% 3.00% of Maturity Principal Interest Principal Interest Principal Interest Principal Interest 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 3,364,272 215,000 1,451,800 3,500,000 1,879,162 127,874 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 3,195,684 235,000 1,433,800 3,640,000 1,736,362 135,661 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 4,445,490 2,731,575 290,000 1,374,250 4,025,000 1,353,410 130,490 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 2,029,721 395,000 1,271,875 4,620,000 757,846 - - 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 1,412,499 485,000 1,184,125 5,150,000 228,374 - - 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 - - - - $ 115,454,467 $ 51,552,898 $ 29,565,000 $ 28,473,000 $ 84,655,000 $ 22,890,494 $ 1,234,467 $ 189,404 215 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 2014(Restated) 2015 2016 GOVERNMENTAL ACTIVITIES Net investment in capital assets $ 185,242,899 $ 189,748,234 $ 195,142,143 Restricted 10,941,117 12,376,136 20,392,998 Unrestricted 13,596,004 13,031,415 11,024,212 Total governmental activities net position 209,780,020 215,155,785 226,559,353 BUSINESS-TYPE ACTIVITIES Net investment in capital assets 79,627,259 84,867,665 95,247,967 Restricted 10,551,442 11,250,300 12,279,628 Unrestricted 16,721,508 21,256,129 21,847,155 Total business-type activities net position 106,900,209 117,374,094 129,374,750 PRIMARY GOVERNMENT Net investment in capital assets 264,870,158 274,615,899 290,390,110 Restricted 21,492,559 23,626,436 32,672,626 Unrestricted 30,317,512 34,287,544 32,871,367 Total primary government net position $ 316,680,229 $ 332,529,879 $ 355,934,103 Source: Annual Comprehensive Financial Report of the City. 220 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2017(Restated) 2018 2019 2020 2021 2022 2023 $ 199,214,099 $ 207,113,453 $ 216,080,286 $ 216,281,021 $ 222,374,600 $ 225,906,951 $ 234,640,513 26,313,186 38,019,099 40,908,235 61,695,111 69,011,237 80,791,413 83,693,756 21,105,136 26,937,963 36,208,160 31,287,737 31,576,376 40,344,925 58,837,166 246,632,421 272,070,515 293,196,681 309,263,869 322,962,213 347,043,289 377,171,435 104,870,812 110,785,680 110,542,303 108,782,212 104,142,931 112,119,692 117,608,706 15,387,870 18,811,969 20,044,161 22,974,348 18,496,564 20,172,795 20,143,080 30,803,556 38,881,215 50,316,066 58,469,800 74,329,841 74,436,284 81,695,101 151,062,238 168,478,864 180,902,530 190,226,360 196,969,336 206,728,771 219,446,887 304,084,911 317,899,133 326,622,589 325,063,233 326,517,531 338,026,643 352,249,219 41,701,056 56,831,068 60,952,396 84,669,459 87,507,801 100,964,208 103,836,836 51,908,692 65,819,178 86,524,226 89,757,537 105,906,217 114,781,209 140,532,267 $ 397,694,659 $ 440,549,379 $ 474,099,211 $ 499,490,229 $ 519,931,549 $ 553,772,060 $ 596,618,322 221 CITY OF TIGARD,OREGON CHANGES IN NET POSITION for the last ten fiscal years (accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year 2014(Restated) 2015 2016 EXPENSES Governmental activities Community services $ 23,078,512 $ 18,542,379 $ 25,089,790 Public works 8,399,436 10,408,399 10,865,800 Community development 4,267,328 4,688,686 7,030,142 Policy and administration 1,732,016 1,323,435 1,226,166 Interest on long-term debt 1,147,024 1,185,507 958,204 Total governmental activities expenses 38,624,316 36,148,406 45,170,102 Business-type activities Sanitary sewer 2,617,625 2,518,708 2,536,988 Stormwater 1,958,551 2,077,589 2,123,162 Water 11,730,347 10,839,483 14,720,167 Total business-type activities program expenses 16,306,523 15,435,780 19,380,317 Total primary government expenses $ 54,930,839 $ 51,584,186 $ 64,550,419 PROGRAM REVENUES Governmental activities Fees, Fines and Charges for services: Community services $ 1,872,350 $ 1,731,639 $ 1,879,576 Public works 2,519,515 2,239,431 2,860,543 Community development 1,765,005 3,040,501 4,684,733 Policy and administration 65,233 142,277 119,195 Operating grants and contributions 6,318,382 6,508,556 7,756,718 Capital grants and contributions 1,804,398 2,021,422 11,785,524 Total governmental activities program revenues 14,344,883 15,683,826 29,086,289 Business-type activities Charges for services: Sanitary sewer 1,727,206 1,773,388 1,791,302 Stormwater 2,733,346 2,899,180 3,058,382 Water 15,985,607 18,804,645 20,918,497 Capital grants and contributions 1,111,346 2,066,696 5,806,590 Total business-type activities program revenues 21,557,505 25,543,909 31,574,771 Total primary government program revenues $ 35,902,388 $ 41,227,735 $ 60,661,060 Source: Annual Comprehensive Financial Report of the City. 222 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2017(Restated) 2018 2019 2020 2021 2022 2023 $ 23,268,637 $ 24,099,976 $ 23,370,174 $ 25,961,675 $ 30,378,435 $ 27,313,548 $ 31,597,313 8,263,304 8,900,831 12,129,476 9,578,442 14,035,986 11,755,291 14,589,053 5,807,204 5,330,390 5,146,891 5,817,188 6,719,376 6,395,322 8,905,011 3,528,933 2,945,936 3,688,137 3,383,319 4,092,081 4,715,974 1,176,827 949,136 863,803 771,834 760,211 543,661 623,927 604,699 41,817,214 42,140,936 45,106,512 45,500,835 55,769,539 50,804,062 56,872,903 2,586,769 2,789,140 3,128,483 3,044,154 3,423,460 3,198,424 3,406,337 2,737,825 2,470,085 3,261,312 3,433,481 4,257,993 4,159,563 4,376,231 8,244,491 14,123,903 17,223,333 19,418,199 20,166,820 17,946,555 19,051,074 13,569,085 19,383,128 23,613,128 25,895,834 27,848,273 25,304,542 26,833,642 $ 55,386,299 $ 61,524,064 $ 68,719,640 $ 71,396,669 $ 83,617,812 $ 76,108,604 $ 83,706,545 $ 2,482,811 $ 1,557,082 $ 1,628,237 $ 1,500,919 $ 2,207,360 $ 3,102,350 $ 3,249,417 5,165,280 4,708,329 4,797,891 5,220,273 5,324,404 8,057,384 7,477,618 4,341,128 6,518,737 6,432,190 4,292,102 4,324,710 4,323,635 5,886,994 363,583 340,446 345,505 90,582 99,060 56,554 34,020 6,880,727 8,321,435 9,594,291 9,625,070 13,346,482 17,770,216 11,630,053 15,691,507 16,307,318 12,268,270 8,542,864 8,959,707 6,254,712 11,972,303 34,925,036 37,753,347 35,066,384 29,271,810 34,261,723 39,564,851 40,250,405 3,013,314 3,208,783 3,389,281 3,666,422 3,348,846 4,129,639 4,572,715 3,275,083 3,620,431 3,812,133 4,017,864 3,820,029 5,603,506 5,776,197 20,926,322 23,078,013 23,751,073 22,607,832 24,836,173 24,065,642 26,189,421 7,670,388 6,795,717 3,285,377 3,139,146 2,838,367 3,156,083 4,436,172 34,885,107 36,702,944 34,237,864 33,431,264 34,843,415 36,954,870 40,974,505 $ 69,810,143 $ 74,456,291 $ 69,304,248 $ 62,703,074 $ 69,105,138 $ 76,519,721 $ 81,224,910 223 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 2014(Restated) 2015 2016 NET(EXPENSE)REVENUE Governmental activities $ (24,279,433) $ (20,464,580) $ (16,083,813) Business-type activities 5,250,982 10,108,129 12,194,454 Total primary government net expenses (19,028,451) (10,356,451) (3,889,359) GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities: Property taxes 15,796,663 16,523,361 17,177,591 Franchise fees 5,542,647 5,687,456 5,734,540 Unrestricted intergovernmental revenues 2,955,652 3,004,341 2,840,903 Interest earnings 421,211 434,401 688,087 Miscellaneous 776,154 247,154 228,779 Transfers between Governmental and Business-type 1,017,893 (56,368) 817,481 Total governmental activities 26,510,220 25,840,345 27,487,381 Business-type activities: Investment earnings(losses) 270,415 131,485 302,890 Miscellaneous 144,767 177,903 193,645 Unrestricted intergovernmental revenues - - 127,148 Transfers between Governmental and Business-type (1,017,893) _ 56,368 (817,481) Total business-type activities (602,711) 365,756 (193,798) Total primary government 25,907,509 26,206,101 27,293,583 CHANGES IN NET POSITION Governmental activities(restated) 2,230,787 5,375,765 11,403,568 Business-type activities(restated) 4,648,271 10,473,885 12,000,656 Total primary government $ 6,879,058 $ 15,849,650 $ 23,404,224 Source: Annual Comprehensive Financial Report of the City. 224 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2017(Restated) 2018 2019 2020 2021 2022 2023 $ (6,892,178) $ (4,387,589) $ (10,040,128) $ (16,229,025) $ (21,507,816) $ (11,239,211) $ (16,622,498) 21,316,022 17,319,816 10,624,736 7,535,430 6,995,142 11,650,328 14,140,863 14,423,844 12,932,227 584,608 (8,693,595) (14,512,674) 411,117 (2,481,635) 17,616,798 18,387,321 19,101,543 20,325,728 23,620,200 25,117,084 26,011,521 5,890,113 6,095,852 6,211,736 6,360,563 6,978,783 7,272,781 7,765,651 2,074,428 3,022,051 2,522,428 2,484,051 2,426,817 3,714,888 3,856,820 824,213 1,683,282 2,416,827 2,520,783 558,060 (2,181,844) 4,654,377 268,380 416,785 453,435 502,164 702,068 644,102 319,841 291,314 220,392 460,325 102,924 920,232 753,276 4,142,434 26,965,246 29,825,683 31,166,294 32,296,213 35,206,160 35,320,287 46,750,644 106,628 139,926 1,606,834 1,770,933 307,581 (1,313,073) 2,578,236 270,628 177,276 652,421 120,392 276,262 175,456 141,451 285,524 - - - 84,220 - - (291,314) (220,392) (460,325) (102,924) (920,232) (753,276) (4,142,434) 371,466 96,810 1,798,930 1,788,401 (252,169) (1,890,893) _ (1,422,747) 27,336,712 29,922,493 32,965,224 34,084,614 34,953,991 33,429,394 45,327,897 20,073,068 25,438,094 21,126,166 16,067,188 13,698,344 24,081,076 30,128,146 21,687,488 17,416,626 12,423,666 9,323,831 6,742,973 9,759,435 12,718,116 $ 41,760,556 $ 42,854,720 $ 33,549,832 $ 25,391,019 $ 20,441,317 $ 33,840,511 $ 42,846,262 225 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 2014 2015 2016 GENERAL FUND Nonspendable $ 508,374 $ 542,543 $ 664,254 Assigned - - - Unassigned 11,474,700 12,115,436 12,970,670 Total General Fund $ 11,983,074 $ 12,657,979 $ 13,634,924 ALL OTHER GOVERNMENTAL FUNDS Nonspendable $ 16,055 $ 11,225 $ - Restricted 12,504,001 11,791,605 18,250,934 Committed 4,457,233 2,801,857 3,260,236 Assigned 905,166 1,156,788 1,597,773 Unassigned (752,925) (352,684) (617,329) Total all other governmental funds $ 17,129,530 $ 15,408,791 $ 22,491,614 Source: Annual Comprehensive Financial Report of the City. 226 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2017 2018 2019 2020 2021 2022 _ 2023 $ 706,412 $ 705,495 $ 225,974 $ 1,158,584 $ 1,155,514 $ 1,201,673 $ 883,981 - - - - - - 1,869,351 14,884,712 19,356,804 23,121,341 26,823,013 29,764,210 40,490,726 32,729,026 $ 15,591,124 $ 20,062,299 $ 23,347,315 $ 27,981,597 $ 30,919,724 $ 41,692,399 $ 35,482,358 $ 16,485 $ 17,040 $ 17,560 $ 18,080 $ - $ 500,000 $ - 31,914,910 45,521,700 51,414,137 91,514,895 69,593,046 81,722,388 86,024,674 4,341,838 3,307,731 3,325,235 3,556,651 4,215,954 5,382,464 6,279,998 1,725,086 1,738,216 2,388,659 3,257,280 3,562,612 4,320,107 3,876,766 (725,296) (724,477) - (228,869) (122,328) (73,237) (1,516,052) $ 37,273,023 $ 49,860,210 $ 57,145,591 $ 98,118,037 $ 77,249,284 $ 91,851,722 $ 94,665,386 227 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 2014 2015 2016 REVENUES Taxes $ 18,822,449 $ 19,575,665 $ 20,191,927 City gas tax 638,852 558,740 712,408 Franchise fees 5,542,647 5,691,960 5,732,448 Special assessments 258,831 35,359 65,243 Licenses and permits 3,098,875 4,030,120 5,751,472 Intergovernmental revenues 6,386,961 6,370,732 6,684,667 Charges for service 4,982,211 4,342,534 4,869,821 System development charges 955,678 961,450 6,104,579 Fines and forfeitures 929,293 924,266 972,560 Investment income(loss) 424,221 434,401 653,879 Miscellaneous 312,815 413,736 220,894 Total revenues 42,352,833 43,338,963 51,959,898 EXPENDITURES Current operating: Community services 19,420,335 20,325,635 20,784,186 Public works 6,914,185 7,512,446 7,606,128 Community development 4,219,481 4,640,737 6,981,903 Policy and administration 701,172 778,840 831,876 Debt service: Principal 2,445,993 2,117,045 2,361,892 Interest 1,178,637 1,118,238 1,059,733 Refunded bonds - - - Refunding bond issuance cost - - - Capital outlay 7,657,993 8,924,317 6,200,291 Total expenditures 42,537,796 45,417,258 45,826,009 Excess(deficiency)of revenues over(under)expenditures (184,963) (2,078,295) 6,133,889 OTHER FINANCING SOURCES(USES) Proceeds from bond/long-term note - 1,300,000 1,650,000 Operating transfers in 6,420,053 6,178,215 6,378,318 Operating transfers out (6,247,267) (6,445,754) (6,102,439) Total other financing sources(uses) 172,786 1,032,461 1,925,879 Net change in fund balances $ (12,177) $ (1,045,834) $ 8,059,768 Debt services as a percentage of non-capital expenditures 11.60% 8.98% 9.00% Source: Annual Comprehensive Financial Report of the City. 228 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2017 2018 2019 2020 2021 2022 2023 $ 20,704,055 $ 21,822,129 $ 25,248,472 $ 25,582,940 $ 29,710,860 $ 31,594,698 $ 33,805,708 844,866 887,038 888,913 831,411 695,284 819,817 816,290 5,886,791 6,102,443 6,218,353 6,365,589 6,980,858 7,272,781 7,883,123 52,146 50,036 59,999 46,554 90,251 71,140 32,136 6,662,790 7,648,235 5,178,056 4,050,568 3,705,222 4,438,449 5,320,101 8,228,693 8,737,359 9,498,510 9,364,516 12,635,993 15,332,768 8,009,367 5,930,289 6,636,913 4,648,396 5,369,990 5,553,225 6,529,148 6,806,659 11,733,901 9,860,311 4,240,910 5,606,246 5,124,725 4,410,347 8,920,940 713,059 698,508 843,100 828,444 1,521,113 1,957,175 2,848,638 799,748 1,659,107 2,343,694 2,315,941 511,899 (2,102,968) 3,854,376 349,098 1,204,701 1,284,229 526,208 611,322 531,363 129,841 61,905,436 65,306,780 60,452,632 60,888,407 67,140,752 70,854,718 78,427,179 21,925,169 22,631,248 22,051,531 23,708,112 28,732,927 27,396,574 31,874,127 8,291,205 8,899,175 6,105,157 6,153,581 6,881,610 7,358,243 7,973,375 5,807,836 5,345,399 5,272,175 5,875,274 6,827,722 6,050,814 8,946,937 787,681 795,586 993,346 843,032 1,029,244 1,212,217 1,360,826 2,378,100 2,454,000 2,530,800 3,117,619 2,205,000 2,777,000 3,109,700 977,539 892,206 799,646 809,003 568,882 630,131 610,507 - - - 5,725,537 - - - - - - 59,234 - - - 4,705,720 6,742,438 8,907,102 _ 8,064,935 9,930,747 8,400,434 18,531,618 44,873,250 47,760,052 46,659,757 54,356,327 56,176,132 53,825,413 72,407,090 17,032,186 17,546,728 13,792,875 6,532,080 10,964,620 17,029,305 6,020,089 - - - 11,910,000 - 9,312,400 - 4,755,215 4,174,624 8,808,520 6,385,695 8,121,091 7,543,089 14,187,425 (5,049,792) (4,662,990) (9,952,900) (7,043,924) (9,034,740) (8,509,681) (23,603,891) (294,577) (488,366) (1,144,380) 11,251,771 (913,649) 8,345,808 (9,416,466) $ 16,737,609 $ 17,058,362 $ 12,648,495 $ 17,783,851 $ 10,050,971 $ 25,375,113 $ (3,396,377) 8.56% 8.28% 8.82% 8.48% 5.81% 8.11% 7.42% 229 CITY OF TIGARD,OREGON GOVERNMENTAL REVENUES For the last ten fiscal years Program Revenues Fiscal Fees,Fines Operating Capital Year Ended and Charges Grants and Grants and Franchise June 30 for Services Contributions Contributions Taxes Fees 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 2023 16,648,049 11,630,053 11,972,303 26,011,521 7,765,651 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 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 - - 2023 36,538,333 - 4,436,172 - - 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 $ 2,955,652 $ 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 3,856,820 4,654,377 - 319,841 82,858,615 General Revenues Investment Gain(Loss)on Intergovernmental Earnings Disposition of Revenues (Loss) Capital Assets Miscellaneous Total $ - $ 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 - 2,578,236 - 141,451 43,694,192 231 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 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 2023 31,597,313 14,589,053 8,905,011 1,176,827 CITY OF TIGARD,OREGON BUSINESS-TYPE EXPENSES BY FUNCTION For the last ten fiscal years Fiscal Year Ended June 30 Sewer Stormwater Water Total 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 2023 3,406,337 4,376,231 19,051,074 26,833,642 Source: Annual Comprehensive Financial Report of the City. 232 Interest on Long-Term Debt Total $ 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 50,804,062 604,699 56,872,903 233 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 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 2023 34,621,998 7,883,123 5,320,101 8,009,367 * Includes special assessments collections, investment earnings(loss),and other revenues. Source:Annual Comprehensive Financial Report for all Governmental Fund Types 234 Charges System For Development Fines and Miscellaneous Services Charges Forfeitures Revenues* Total $ 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 6,806,659 8,920,940 2,848,638 4,016,353 78,427,179 235 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 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 2023 31,874,127 16,920,312 1,360,826 18,531,618 3,720,207 72,407,090 Source:Annual Comprehensive Financial Report 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 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 3.35 12,790,362,675 57.70% 2022 7,159,650,490 294,394,734 192,137,300 7,646,182,524 3.40 13,613,164,237 56.17% 2023 7,450,122,850 295,490,460 210,168,600 7,955,781,910 3.44 15,936,353,145 49.92% *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 Direct Rates Fiscal Total Year Ended Perm Debt Local Option Urban City of Washington June 30 _ Rate Svc Levy Renewal Phase In Tigard County 2014 $ 2.51 $ 0.44 $ 0.06 $ 0.43 $ 3.44 $ 2.96 2015 2.51 0.42 0.07 1.24 4.24 2.83 2016 2.51 0.42 0.07 2.51 5.52 2.83 2017 2.51 0.39 0.08 1.68 4.66 2.95 2018 2.51 0.36 0.08 - 2.95 2.94 2019 2.51 0.35 0.08 - 2.95 2.94 2020 2.51 0.34 0.17 - 3.02 2.93 2021 2.51 0.33 0.29 0.21 - 3.35 2.96 2022 2.51 0.34 0.29 0.25 - 3.40 3.01 2023 2.51 0.34 0.29 0.30 - 3.44 3.00 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 Tigard/ Washington Tualatin Beaverton Tualatin County Hillsboro Total Direct School School Valley Rural Fire Portland School Other & District District Fire&Rescue District Community District Taxing Overlapping No.23-J No.48-J District No.2 College No.1-J Agencies Rates $ 7.41 $ 8.05 $ 1.91 $ 1.69 $ 0.73 $ 7.41 $ 0.78 $ 34.38 7.43 8.04 1.88 - 0.72 - 0.77 25.91 7.43 7.96 2.10 - 0.58 - 0.70 27.11 7.41 7.92 2.09 - 0.68 - 0.71 26.42 7.73 8.05 2.07 - 0.60 - 0.80 25.15 7.71 8.02 2.07 - 0.69 - 0.85 25.24 7.70 7.91 2.05 - 0.68 - 1.03 25.33 7.79 8.03 2.12 - 0.68 - 1.03 25.95 7.78 8.03 2.12 - 0.66 - 1.06 26.06 7.74 8.19 2.11 - 0.67 - 1.03 26.19 239 CITY OF TIGARD,OREGON PRINCIPAL PROPERTY TAXPAYERS For current and nine years ago 2023 2014 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% $ 149,069,426 1 3.81% PPR Washington Square LLC 155,486,561 2 2.21% 81,987,770 2 2.10% Lincoln Center LLC 112,140,241 3 1.59% 70,459,982 3 1.80% Portland General Electric 53,212,000 4 0.76% 27,993,097 6 0.72% Comcast Corporation 48,217,000 5 0.68% ROIC Oregon LLC 39,708,780 6 0.56% Northwest Natural Gas 39,262,000 7 0.56% 22,926,300 7 0.59% PPR Square Too LLC 38,379,970 8 0.54% KW Fund VI Arbor Heights LLC 29,808,120 9 0.42% Icon Owner Pool 1 West LLC 29,596,210 10 0.42% 21,297,560 8 0.54% Frontier Communications 50,038,200 4 1.28% Walton CWOR Park LLC 31,848,060 5 0.81% Constance Robinson(Trust) 20,747,710 9 0.53% Macy's Department Stores 18,888,280 10 0.48% Total $ 804,008,449 11.41% $ 495,256,385 12.66% 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 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% 2023 24,609,140 23,587,963 95.85% 232,895 23,820,858 96.80% 355,514 1.44% 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 682. 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 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% - - 2023 - - 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 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% 2023 3,109,700 610,507 3,720,207 72,407,090 5.14% 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 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 2023 55,868 7,955,781,910 21,069,771 6,477,793 14,591,978 0.18% 261.19 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 30,2023 Percent Amount Applicable Applicable Net Debt Inside City of Inside City of Jurisdiction Outstanding Tigard* Tigard Tigard/Tualatin School District#23-J $ 298,969,280 49.77% $ 148,797,011 Tualatin Hills Park&Rec District $ 47,825,680 0.00% 48 Metro 822,713,920 3.48% 28,665,821 Beaverton School District#48 1,155,458,918 3.72% 42,964,584 Portland Community College 669,475,000 4.38% 29,300,243 Washington County 163,168,758 10.18% 16,614,496 Northwest Regional ESD 13,670,000 8.10% 1,107,366 Tualatin Valley Fire&Rescue District 55,780,000 10.92% 6,093,351 Sub-Total of Overlapping Debt 3,227,061,556 273,542,920 City of Tigard 21,069,771 100.00% 21,069,771 Total for Overlapping Debt $ 3,248,131,327 $ 294,612,691 *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 2014 2015 2016 2017 Debt limit $ 210,982,614 $ 230,989,826 $ 242,482,552 $ 269,677,150 Total net debt applicable to limit 26,820,000 24,775,000 22,670,000 20,505,000 Legal debt margin $ 184,162,614 $ 206,214,826 $ 219,812,552 $ 249,172,150 Total net debt applicable to the limit as a percentage of debt limit 12.71% 10.73% 9.35% 7.60% 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 2018 2019 2020 2021 2022 2023 $ 296,512,995 $ 322,625,386 $ 338,510,748 $ 383,710,880 $ 478,090,594 478,090,594 18,269,800 15,965,000 19,840,000 17,635,000 24,170,400 21,060,700 $ 137,195,419 $ 306,660,386 $ 318,670,748 $ 366,075,880 $ 453,920,194 457,029,894 6.16% 4.95% 5.86% 4.60% 5.06% Legal Debt Margin Calculation at June 30,2023 True cash value(2022-2023) $ 15,936,353,145 Limit as a percent 3% Debt Limit(as a percent of real market value) 478,090,594 Debt applicable to limit: Gross bonded debt $ 21,069,771 Excludable debt-Bancroft improvement bonds,bond premium, capital lease and commercial bank loan (9,071) Debt subject to limitation 21,060,700 Legal debt margin-amount available for future indebtedness 457,029,894 Total net debt applicable to the limit as a percent of debt limit 4.41% 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 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 - - - 2023 55,868 21,069,771 - - - * 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 Department of Assessment and Taxation. 248 Business-type Activities Percentage Notes Payable Revenue Total Primary of Personal Per Debt Bonds* Government Income** Capita $ 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 1,234,469 118,379,855 140,684,095 5.05% 2,518 249 CITY OF TIGARD,OREGON COMPUTATION OF WATER REVENUE BONDS DEBT COVERAGE For the last ten fiscal years 2014 2015 2016 Gross revenues $ 16,079,753 $ 18,944,301 $ 20,918,497 System Development Charges(SDC) related: SDC Fund investment earnings(loss) - 9,294 35,173 Reimbursement fee receipts(2) 442,651 308,896 1,242,297 Improvement fee receipts(3) 389,460 503,853 1,569,645 Total SDC-related 832,111 822,043 2,847,115 Operating expense: Salaries and wages 1,225,170 1,462,677 1,117,286 Contracted services 400,972 336,178 353,396 Water purchases 3,199,292 2,644,491 4,212,357 General,admin and other 2,548,678 2,781,892 3,111,194 Total operating expenses 7,374,112 7,225,238 8,794,233 Net revenues(including SDCs) 9,537,752 12,541,106 14,971,379 Net revenues(excluding SDCs) $ 8,705,641 $ 11,719,063 $ 12,124,264 Debt service-first lien bonds: 2012 bonds $ 4,719,850 $ 4,719,850 $ 4,719,850 2015 bonds - - 1,378,238 2020 bonds - - - Total debt service $ 4,719,850 $ 4,719,850 $ 6,098,088 Debt service coverage-first lien bonds (excluding system development charges) 1.84 2.48 1.99 (�) 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 2017 2018 2019 2020 2021 2022 2023 $ 20,926,322 $ 23,078,014 $ 23,751,073 $ 22,607,832 $ 24,836,173 $ 24,065,642 $ 27,296,414 6,660 4,694 343,069 351,524 68,639 (247,814) 366,519 3,010,263 1,924,587 921,379 1,258,967 934,950 1,034,638 1,442,870 3,521,776 2,319,737 949,056 1,600,366 1,120,049 1,320,695 1,740,326 6,538,699 4,249,018 2,213,504 3,210,857 2,123,638 2,107,519 3,549,715 1,148,575 874,348 1,005,720 1,172,511 1,216,954 1,120,169 1,130,422 445,840 407,450 453,971 704,045 708,202 318,806 612,201 1,339,637 1,869,824 1,685,669 1,685,705 1,755,408 1,787,040 1,892,114 3,572,450 3,931,142 4,498,769 5,258,318 6,096,039 6,129,769 6,580,214 6,506,502 7,082,764 7,644,129 8,820,579 9,776,603 9,355,784 10,214,951 20,958,519 20,244,268 18,320,448 16,998,110 17,183,208 16,817,377 20,631,178 $ 14,419,820 $ 15,995,250 $ 16,106,944 $ 13,787,253 $ 15,059,570 $ 14,709,858 $ 17,081,463 $ 6,561,800 $ 6,561,050 $ 6,563,750 $ 6,563,050 $ 2,331,580 $ 2,412,300 $ 2,412,300 1,670,300 1,667,900 1,666,000 1,668,800 1,666,300 1,668,500 1,668,500 - - - - 2,961,663 2,962,463 2,962,463 $ 8,232,100 $ 8,228,950 $ 8,229,750 $ 8,231,850 $ 6,959,543 $ 7,043,263 $ 7,043,263 1.75 1.94 1.96 1.67 2.16 2.09 2.43 251 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(3) _ of dollars)(3) Area(4) 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 11,764 40,350 2,200,649 4.4% 2022 55,854 136,896 11,860 41,370 2,310,680 3.5% 2023 55,868 142,403 11,764 49,836 2,784,238 3.0% Sources of Information: (1)Portland State University Population Research Center (2)Tigard/Tualatin School District#23-1-NCES-City student totals not available (3)Washington State University-Northwest Income Indicators Project&US Census Bureau (4)US Department of Labor, Bureau of Labor Statistics 252 CITY OF TIGARD,OREGON PRINCIPAL EMPLOYERS For current year and nine years ago 2023 2014 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Tigard-Tualatin School District#23-J 1,400 1 4.37% 779 2 2.76% Consumer Cellular 461 2 1.44% Nordstrom 440 3 1.37% 422 3 1.49% Costco Wholesale Corporation 403 4 1.26% 273 6 0.97% Conduent Inc 367 5 1.14% City of Tigard 352 6 1.10% 257 7 0.91% Comcast 313 7 0.98% Macy's Department Stores 268 8 0.84% 404 4 1.43% Cheesecake Factory 250 9 0.78% 250 8 0.89% Biamp Systems 245 10 0.76% Capital One 861 1 3.05% Oregon Public Employees Retirement 396 5 1.40% Home Depot 241 9 0.85% Gerber Legendary Blades 232 10 0.82% Total 4,499 14.03% 4,115 14.57% 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 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 2023 14 88,837,838 201 88,054,231 (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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 GOVERNMENTAL ACTIVITIES Community services Police 84.50 82.50 83.50 87.50 88.50 84.50 85.00 97.00 94.00 93.00 Library 34.80 34.80 38.30 39.70 40.90 38.80 39.20 39.20 39.20 39.30 Public works Administration 9.20 9.20 9.00 9.50 9.75 9.00 9.95 8.95 10.00 11.00 Parks maintenance 9.75 10.75 11.67 12.17 10.40 10.50 12.50 15.30 15.40 15.40 Recreation - - - 0.33 2.35 1.00 2.35 2.45 2.65 2.65 Street maintenance 7.25 7.25 6.33 7.00 7.45 7.50 8.25 7.30 7.00 7.00 Healthy Streams - - - - - - - - - - Engineering 13.00 14.00 14.00 17.00 19.00 19.00 20.00 23.00 22.00 22.00 Community development Administration 2.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Building inspection 8.80 9.00 9.00 13.00 13.00 13.60 14.10 15.35 15.35 16.35 Development Services(a) 3.80 3.80 3.80 - - - - - - - Community Planning 9.00 9.00 9.00 13.50 13.50 12.65 12.65 13.65 15.65 14.65 Economic Development 2.00 2.00 2.00 2.00 3.00 2.00 3.00 3.00 3.00 3.00 Policy and Administration City management 4.00 5.00 5.50 4.90 5.90 3.90 3.90 4.90 4.90 8.90 City attorney(b) - - - - - 1.10 1.10 1.10 1.10 1.10 Human resources 4.80 4.50 4.80 4.50 4.34 4.14 4.14 5.00 5.00 5.00 Information technology 5.80 7.00 7.00 8.00 9.00 9.00 12.00 12.00 18.00 20.00 Risk management 2.10 2.10 2.30 1.50 1.76 1.76 2.06 2.00 2.10 2.30 Finance administration 3.00 3.00 3.00 3.00 3.50 3.00 3.00 4.00 4.00 5.00 Financial operations 4.60 4.60 4.60 4.80 5.30 4.80 4.80 5.80 5.80 5.80 Utility Billing 6.80 6.80 6.80 6.80 7.20 7.20 7.70 7.70 7.20 7.20 Design&Communication 3.05 3.05 3.05 4.25 4.75 4.75 5.35 5.60 5.60 5.35 Contracts&Purchasing 2.00 2.00 2.00 2.00 2.00 2.00 2.50 2.50 3.00 3.00 City Recorder/Records 4.15 4.15 3.35 3.85 3.85 3.85 3.25 3.25 3.25 3.00 Municipal court 3.65 3.65 3.65 3.50 3.50 3.50 6.50 9.90 9.90 9.65 Fleet maintenance(c) 0.95 1.95 1.80 2.35 2.85 2.60 2.60 2.75 2.75 2.50 Property management(c) 3.85 4.85 5.20 4.90 6.55 6.65 6.65 6.50 7.50 7.00 BUSINESS-TYPE ACTIVITIES Public works Sanitary sewer 6.50 5.50 6.00 6.50 6.25 6.25 5.50 5.50 5.60 5.60 Stormwater 5.50 6.50 7.00 7.50 9.00 8.25 5.75 5.50 5.60 5.60 Water 12.00 13.00 13.00 13.00 11.25 12.50 14.05 14.05 13.80 13.80 Green team - - - - - - 4.00 4.30 4.30 4.30 Total 256.85 261.95 268.65 286.05 297.85 286.80 304.85 330.55 336.65 342.45 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. (`) 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 2014 2015 2016 GOVERNMENTAL ACTIVITIES Community services Police-number of traffic citations issued 7,177 6,462 5,745 Police-number of calls for service 48,840 47,247 43,299 Library-number of items in collection 245,000 248,225 253,725 Library-materials checked out each year 1,385,376 1,280,376 1,243,774 Public works Acres of park land maintained 253 255 301 Crack sealing completed annually(linear feet) 160,000 160,000 160,000 Vehicles maintained to industry standard 157 160 146 Community development Number of inspections(Tigard) 12,382 9,009 10,814 Number of permits(all types)in Tigard 3,404 2,958 3,860 Number of development applications 341 251 388 Policy and administration Number of job applications 2,000 2,100 2,200 Laptops and computers to maintain 523 525 530 Insured value of city's real property**** (in millions) $ 82 $ 82 $ 82 Number of utility bills sent 241,500 244,000 256,500 Average fine amount collected $ 140 $ 160 $ 160 BUSINESS-TYPE ACTIVITIES Sewer Miles of sewer lines cleaned 42 42 42 Miles of sewer lines video inspected 21 21 24 Stormwater Miles of stormwater lines cleaned 21 21 21 Number of water quality facilities improved 126 126 126 Total number of catch basins cleaned 2,840 2,840 2,917 Water Number of accounts 18,445 18,524 18,767 **** Includes value of contents of buildings. Source: City of Tigard Finance Department 256 2017 2018 2019 2020 2021 2022 2023 5,057 5,260 5,972 5,167 16,504 23,790 17,315 41,874 42,075 42,482 38,810 35,441 35,886 34,829 229,344 238,919 220,877 222,438 235,894 254,822 210,000 1,159,446 1,227,561 1,216,642 1,310,382 1,157,942 1,186,552 1,200,000 301 305 306 311 389 550 389 107,727 262,659 92,400 521,298 760,682 - - 162 152 156 164 161 160 161 27,551 25,793 17,540 18,736 14,503 18,442 18,470 4,281 4,189 3,776 3,384 3,507 4,609 4,106 818 843 876 875 984 986 924 3,726 2,605 3,393 2,503 3,302 3,567 2,563 585 593 601 702 741 788 766 $ 120 $ 122 $ 129 $ 130 $ 133 $ 135 $ 143 248,560 254,150 258,252 260,260 262,490 268,092 262,382 $ 149 $ 133 $ 119 $ 109 $ 79 $ 89 $ 100 51 57 59 63 54 46 58 23 29 30 25 46 25 27 23 20 26 21 21 14 - 133 138 143 152 181 186 200 3,939 2,620 2,737 2,864 2,904 1,358 2,376 19,311 19,689 19,849 20,064 20,196 20,269 20,395 257 CITY OF TIGARD,OREGON CAPITAL ASSETS STATISTICS BY FUNCTION For the last ten fiscal years Functions/Programs 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 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 21 24 24 29 31 33 35 Acres of park and greenspaces 499 514 514 548 552 553 558 558 558 563 Miles of streets 150.0 150.0 #### #### #### #### #### #### 326.0 326.0 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 #### #### #### #### #### #### 168.7 168.7 Stormwater Total miles of stormwater lines 130.0 130.0 #### #### #### #### #### #### 135.1 135.1 Number of water quality facilities 126 126 126 164 210 240 240 240 240 240 Water Water mains in miles 248.0 248.0 #### #### #### #### #### #### 265.0 265.0 Number of reservoirs 13 13 14 14 14 14 14 14 14 14 Source:City of Tigard Finance Department 258 CITY OF TIGARD,OREGON MISCELLANEOUS STATISTICAL DATA June 30,2023 Date of Incorporation 1961 Form of government Mayor/Council with a City Manager as the administrative head of the 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 18 -Number of teachers\FTE 695 -Number of students 11,764 Building Permits issued(2022-2023) 809 Recreation and culture: - Number of parks 27 developed and 8 underdeveloped,totaling 35 at 389 acres -Greenways 168.78 acres -Number of libraries 1 -Number of volumes(estimated) 210,000 Employees: -Classified service(union) 200 -Unclassified(non-union) 182 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 ® 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, 2023, and the related notes to the financial statements,which collectively comprise the City's basic financial statements, and have issued our report thereon dated February 27, 2024. 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. 263 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. (IltrW 7q-ctr''-it/14,- X' Portland, Oregon February 27, 2024 264 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, 2023, and the related notes to the financial statements, which collectively comprise City's basic financial statements, and have issued our report thereon dated February 27, 2024. 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 265 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 certain corporate bond investments that had credit ratings below the limits set under ORS 294.035 The City had over-expenditures of$968 in the General Obligation Debt Service Fund for the year ended June 30, 2023. 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. Ate-- Keith Simovic, artner for Moss Adams LLP Portland, Oregon February 27, 2024 266 267 �� • CITY OF Tigard 13125 SW Hall Boulevard, Tigard, Oregon 97223 • www.tigard-or.gov AIS-5415 6. Business Meeting Meeting Date: 03/05/2024 Length (in minutes): 45 Minutes Agenda Title: Town Center Development Agency Joint Meeting with Town Center Advisory Commission Authored By: Sean Farrelly Presented By: TCAC Chair Gabe Velasquez and Vice-Chair Elise Shearer Item Type: Joint Meeting-Board or Other Juris. Town Center Development Agency Public Hearing No Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE Annual joint meeting of the Board of the Town Center Development Agency(ICDA) with the Town Center Advisory Commission (ICAC.) ACTION REQUESTED Team recommends the TCDA Board hold the joint meeting with the Town Center Advisory Commission to discuss their 2023 Annual Report and their 2023-2024 strategic plan. BACKGROUND INFORMATION The Town Center Advisory Commission (TCAC) makes recommendations to the Board of the Town Center Development Agency(TCDA) on Tax Increment Financing (TIF) District policy,budget and implementation measures for both the Tigard Triangle and the City Center TIF Districts.The TCAC meets annually with the Board of the TCDA to share information and receive feedback.The TCAC leadership elected at the January meeting are Chair Gabe Velasquez and Vice-Chair Elise Shearer.The team liaison to the TCAC is Redevelopment Manager Sean Farrelly. Two items will inform the joint meeting discussion- the TCAC's 2023 Annual Report, and the 2023-24 strategic plan.The 2023 Annual Report was previously provided in the November 30,2023 Council Newsletter and is included as an attachment for the Board's review. Last year,the TCAC developed a strategic plan for 2023-24,including areas of emphasis,aspirational goals, strategies, and action plans. The plan was slightly revised and updated at their February meeting.The TCAC will review the strategic plan with the TCDA Board.The TCAC's adopted strategic plan as well as the City Center Redevelopment Action Plan and the New Tigard Triangle: Planning for Equitable Development documents will guide teammate's implementation of the TIF District plans. A brief PowerPoint presentation from the TCAC will be available prior to this meeting. A brief PowerPoint presentation from the TCAC will be available prior to this meeting. Dates of Previous and Potential Future Considerations The TCAC meets annually with the Town Center Development Agency Board.The last joint meeting was February 7, 2023. Impacts (Community, Budget,Policies and Plans/Strategic Connection) Tigard Strategic Plan 2020-2025 •Strategic Priority 3: Ensure development and growth supports the vision •Objectives •3.1 Pursue land development that maximizes public health benefits while increasing connection between people and community destinations. •3.2 Focus development-associated resources in parts of the city that have the capacity to serve,house, employ,and attract the most people with the least impact on Tigard's natural systems and the climate •3.3 Understand the effects of development on vulnerable Tigard residents and mitigate these impacts within projects and over time. •3.4 Proactively intervene as necessary to meet the housing needs of all community members. • 3.5 Plan and create in a manner that reduces climate impacts to the maximum extent practicable, especially for those most vulnerable. City Center TIF Plan Tigard Triangle TIF Plan ALTERNATIVES& RECOMMENDATION Not Applicable ADDITIONAL RESOURCES Attachments 2023 TCAC Annual Report TCAC Strategic Plan 2023-24 2023 Annual Report of the Town Center Advisory Commission To the Board of the Town Center Development Agency December 1, 2023 The Town Center Advisory Commission (TCAC) formally adopted a strategic plan for 2023- 2024 at their June 14, 2023 meeting. The plan includes a vision, and three areas of emphasis, with Key Performance Indicators (KPI's). Vision:As a commission and through our TIF districts,we will enable, encourage and support redevelopment in the goal of becoming the most walkable community in the Pacific Northwest where people of all ages and abilities enjoy healthy and interconnected lives. Aspirational Goal: Continue to facilitate and promote opportunities for the development of affordable housing, provide support for equitable business development, and advance efforts toward improved walkability, equity, and connectivity within and between both TIF districts. A. Equitable Business Development Strategies: Advocate for stakeholders in all TIF districts using data collection, analysis and summary in the focus areas of: parking, safety, unconventional business opportunities, program and service awareness and possible locations for business development. Action Plans: (1)Advocacy and Support for Business Owners in TIF Districts (2)Analysis and Summary of the Parking Survey (3) Planning for Unconventional Business Opportunities Accomplishments: • Parking committee with 2 TCAC members held meetings • New parking data collection performed and shared with committee • Improvement grants committee (2 TCAC members) awarded five grants • Two food carts at Universal Plaza (third one being considered with input from TCAC member) • Presentation by Tigard Downtown Alliance Board president to TCAC • Two meetings with TDA executive director and TCAC chair or vice chair B. Connectivity and Access Strategies: Advocate for funding in all TIF districts through intentional, strategic support in the form of letters of support, position statements and advisory recommendations to decision-makers.Active support for acquisition of Hall Blvd. by City of Tigard. Perform ad- hoc research to identify walkability issues and potential solutions. Document and report on pertinent studies, such as the Red Rock Creek Study, and legislative actions that may impact safety, pedestrian projects,walkability and way-finding. Action Plans: (1)Advocacy and Support for adequate connectivity, access, mobility and safety related funding: Hall Blvd and 72nd Ave Improvement projects (2)Active support for ownership of Hall Blvd. by the City of Tigard (3)Ad-hoc (personal) research on walkability issues within and between two TIF districts (4) Planning for Wayfinding, signage and technology solutions to encourage multi- modal connectivity between and within TIF districts Accomplishments: • TCAC was briefed on the Downtown Reimagined project which has recommendations for Hall Blvd and other street improvements, and proposes a new Downtown connectivity plan • TCAC wrote letter of support for RAISE grant for phase 1 of 72nd Ave (city was not selected this round) • City awarded state allocation of$3M for Hall Blvd pedestrian improvements C. Affordable Housing and Houselessness Attend, update, monitor, report and present with new and pertinent information from housing and houseless stakeholder groups. Coordinate and share information acting as liaisons to TCAC with local organizations to ensure information flow and coordination to improve efficiency. Develop suggested strategies and policies to address housing issues within the purview/scope of TCAC to City officials and decision makers. Support funding needs and development assistance available for shelter, transitional and affordable housing. Action Plans: (1) Identify liaisons to attend regular housing and houseless stakeholder meetings. (2)Active participation and information sharing from stakeholder organizations (in item 1 above) to TCAC (3) Monitor data obtained by City pursuant to desired outcome: "Grow Collaborative Partnerships" (4) Provide development assistance to Just Compassion and CPAH Accomplishments: • TCAC recommended $1 million development assistance grant to Family Promise of Tualatin Valley's A Bridge to Home project, later approved by TCDA Board • TCAC toured A Bridge to Home and CPAH's Red Rock Creek Commons • City staff houselessness point person made presentation to the TCAC and receives TCAC minutes • TCAC member attends CHART meetings • TCAC representative invited Just Compassion to apply for development assistance for its capital expansion On Behalf of the Town Center Advisory Commission, Torn Murphy - Chair.TCAC Town Center Advisory Commission (TCAC) Tigard, Oregon Strategic Plan 2023-2024 Revised 2/14/24 Vision As a commission and through our TIF districts, we will enable, encourage and support redevelopment with the goal of becoming the most walkable community in the Pacific Northwest where people of all ages and abilities enjoy healthy and interconnected lives. Aspirational Continue to facilitate and promote opportunities for the development of affordable Goal housing, provide support for measures to reduce houselessness, provide support for equitable business development, and advance efforts toward improved walkability, equity,and connectivity within and between both TIF districts. Areas of Equitable Business Connectivity and Access Affordable Housing and Emphasis Development Houselessness Strategies Advocate for stakeholders Support city's goal to obtain Support for physical facilities in both TIF districts using funding to improve and take and additional shelter space data collection, analysis ownership of Hall Blvd. and services for persons and summary in the focus Support the city's grant experiencing houselessness. areas of:parking, safety, request for 72nd Ave. Development of additional unconventional business improvements. Look for shelter space and affordable opportunities, program other opportunities in the housing through a and service awareness, Triangle for pedestrian consciously-integrated and possible locations for improvements. programmatic response that business development. includes the city,public and private entities, and local housing nonprofits working effectively in Tigard to address that deficiency. TCAC supports Tigard's Strategic Priorities: • Set the standard for excellence in public service and customer experience. • Create a well-connected, attractive, and accessible pedestrian network. • Ensure that development and growth support the vision. Our plan will incorporate the principles of equity, environment, economy, engagement and excellence in our work as an advisory commission. The four goals of the City of Tigard: 1) Reduce Houselessness 2) Improve Climate 3) Enhance Community Safety and Access 4) Modernize and Improve City Services Prepared for ICAC by Amanda Sharp , ideate business consulting May 2 0 2 3 sharp . amanda . k@gmail . com 'Wage Area of Equitable Business Development Emphasis Aspirational Safety and security for businesses in both TIF districts. Outreach programs for new Goals businesses seeking to open in Tigard.A plan for unconventional business opportunity/development and support and for identifying potential locations for these businesses.Awareness of the current and needed services and resources available for equitable development. New,diverse and active participation in forums to better understand business and development needs and goals. *SUPPORTS CITY GOALS 3,4 Strategies Advocate for stakeholders in all TIF districts using data collection, analysis and summary in the focus areas of:parking, safety, unconventional business opportunities,program and service awareness and possible locations for business development. Action Plans 1) Advocacy and Support for Business Owners in • Attend meetings of TDA and TIF Districts Tigard Chamber-and/or- a. Communication process such as a • Schedule listening sessions survey or listening session with a data Identify key questions and collection process to understand the record responses at each needs for safety,security and meeting attended.Track these beautification and report at TCAC meetings. b. Ongoing support with business • Ask business owners what owners'groups to continue would help: create a forum for conversations and communication in ongoing feedback by June 30, support of needs analysis 2024 * note overlap with item 3 c. TCAC member liaison attendance at below TDA meetings to listen and learn the business needs of TIF District business owners 2) Analysis and Summary of the Parking Survey • TCAC members create a report a. Formal review of parking survey and presentation including results with written summary recommendations for the future (by Dec 2024) b. Report-out to TCAC at a commission meeting with the analysis and potential next steps 3) Planning for Unconventional Business • Use available list, update Opportunities records with phone and contact a. Use community-generated list to information (by Dec 31, 2024) make calls to potential businesses • Work with city staff to create a b. Create a plan and script to contact by contact schedule for list (by phone with follow-up materials or June 30, 2024) calls • Create a script for calls and c. Create outreach program with collect resources and materials marketing materials and strategy for that can be used to forward to new TIF district businesses that can business owners as follow up. also be used to support recruitment (see item 3) Include basic of new businesses that the questions from Action plan#1, community wants items 1-2-3) (by June 30, 2024) See * above Prepared for TCAC b y Amanda S h a r p , idea t o business c o n s u I t I n g May 2 0 2 3 sharp . amanda . k@gmail . com Wage i. Identify locations that would • Offer support and request be viable for food carts or participation in future other unconventional conversations about businesses development in TIF districts/invite to meetings by Aug 30, 2024) • Meet to create a plan to identify potential locations by July 31, 2024 • Work with city staff, real estate professionals, etc. • Identify 3-5 possible sites by Dec 31, 2024 d. Develop an inventory/list of available . Collect resources and materials current programs, services and that can be used to forward to resources that support TIF district business owners as follow-up. businesses • Create an inventory and virtual i. Work with social media packet of business coordinator and economic development resources development manager to available and related to TCAC share marketing strategies support, and include other city and resources and economic development resources if available (by June 1, 2024) Prepared for TCAC by Amanda Sharp , ideate business consulting May 2 0 2 3 sharp . amanda . k@gmail . com 3IPage Area of Connectivity and Access Emphasis Aspirational Adequately-funded, improved Hall Blvd.,with Tigard ownership. Approved and activated Goals grant funding for 72nd Ave improvement projects. Improved environmental impact and connectivity for pedestrian and multi-modal improvements between and within TIF districts. *SUPPORTS CITY GOALS 2,3,4 Strategies Advocate for funding in all TIF districts through intentional, strategic support in the form of letters of support, position statements and advisory recommendations to decision-makers. Active support for acquisition of Hall Blvd. by City of Tigard. Perform ad-hoc research to identify walkability issues and potential solutions. Document and report on pertinent studies, such as the Red Rock Creek Trail Study, and legislative actions that may impact safety, pedestrian projects, walkability and wayfinding. Action Plans 1) Advocacy and Support for adequate • Provide letters of support, position connectivity, access, mobility and statements, quotes or other support for safety related funding: Hall Blvd and Hall Blvd. and 72nd Ave.funding 72nd Ave Improvement projects opportunities including public safety levy, a. Hall Blvd: Support adequate grants, etc. funding for Hall Blvd. o Describe community safety, access transfer of ownership and environmental impacts as b. 72nd Ave: Support for 72nd results of a funded project Ave. grant funding leading • Publicly support funding opportunities to enhanced community including public safety levy,grants, etc. safety and accessibility for through agendized report at TCAC or all modes of transportation other public meetings by Dec 31, 2024. • Identify key improvements needed using available data, qualitative analysis from c. Hall Blvd/72nd Ave: Support City staffers, and public input on the for safety improvements, services needed to achieve improved directional signage, connectivity and access; document and crosswalks, and generally record findings with recommendations to improved pedestrian access TCAC by Dec 31, 2024. to services 2) Active support for ownership of Hall • Report to TCAC with ongoing progress to Blvd. by the City of Tigard complete transfer(at least 2 by Dec 31, a. Support secure funding to 2024) complete transfer • Provide position statements to decision- makers regarding improvements to Hall Blvd.that impact TIF districts and TCAC goals(by Dec 31, 2024) • Meet with city staff to understand potential funding options (such as levies) that may also provide funding for safety measures, sidewalks, and pedestrian access (by Dec 31, 2024). Provide a report to at least one TCAC meeting(by Dec.31, 2024) Prepared for TCAC by Amanda Sharp , ideate business consulting Ma ' ii ' sharp . amanda . k@gmail . com 4IParle 3) Ad-hoc(personal) research on . TCAC(connectivity and access members) walkability issues within and walk the TIF districts(by December 31, between two TIF districts 2024) a. Ask pedestrians and patrons • TCAC members create a report and of local business to identify present to TCAC including walkability issues recommendations for the future (by Dec. b. Note issues identified 31, 2024) c. Investigate status of grant • Presentation will include next steps application for Wall Street including suggestions on how to identify railroad crossing the specific improvements needed (by d. Report-out to TCAC at a Dec. 31, 2024) commission meeting with the analysis and potential next steps e. Coordinate with Tigard Transportation Advisory Committee on projects that can connect the two TIF districts 4) Planning for wayfinding, signage and • Use existing and recent survey results and technology solutions to encourage meet with City staff to request an multi-modal connectivity between inventory of requested recommendations and within TIF districts to improve wayfinding and connectivity a. Create an inventory of (by March 30, 2024) recommendations to • Work with city staff to create a prioritized improve paths for list of improvements (March 30, 2024) pedestrians, bikes, and • TCAC(connectivity and access members) mobility devices research possible web-based tools or b. Research possible apps that could be implemented in TIF technology tools that may districts. assist in wayfinding • Support reasonable and strategic budget c. Support funding within the requests for wayfinding/signage and web TCAC budget for wayfinding tools by attending Council meetings or consulting and signage affirming support at TCAC meetings. projects • Meet with interested TCAC members to d. Create a plan to support use create a plan for next steps in a strategic of web tools and to market outreach campaign and engage the community o Include City Staff, such as social to use new wayfinding and media coordinator and economic TIF districts paths, crossings, development manager bike lanes, etc. o Include business owners: bike i. Work with social shops, shoe stores, etc. media coordinator • Document plan and submit to TCAC and economic during a public meeting(by June 1, 2024) development • Continue support through 2024-25 TCAC manager to share Strategic Plan marketing strategies and resources Prepared f o r TCAC hy Amanda Sharp , ideate business cons u l t i n g Ma ) 2 0 2 sharp . amanda . k@gmail . com 5IP - �, e Area of Affordable Housing and Houselessness Emphasis Aspirational Measurable improvements in available shelter and services to relieve the humanitarian Goals crisis of houselessness. Measurable improvements in available affordable housing to address the deficit of rental housing inventory. Improved coordination of programs, providers and funding breaking down silos and inefficiencies. *SUPPORTS CITY GOALS 1,4 Strategies Attend, update, monitor, report and present with new and pertinent information from housing and houseless stakeholder groups. Coordinate and share information acting as liaisons to TCAC with local organizations to ensure information flow and coordination to improve efficiency. Develop suggested strategies and policies to address housing issues within the purview/scope of TCAC to City officials and decision makers. Support funding needs and development assistance available for shelter, transitional and affordable housing. Action Plans 1) Identify liaisons to attend regular • One representative to attend CHART third housing and houseless stakeholder Wednesday of every month with meetings. attendance recorded in meeting minutes. a. TCAC chair or alternate to attend (at least 3 meetings by Dec 31, 2024) CHART(Community Homeless • Designation of at least one representative Assessment& Response Team) from TCAC to attend service provider meetings meetings (by June 30, 2024) b. Designate liaisons to attend • Designation of at least one representative board meetings of affordable from TCAC to serve as point of contact for housing and community service other city and/or county housing and providers such as houseless program information c. Family Promise, Community coordination (by June 30, 2024) Partners for Affordable Housing, • Liaison/representatives to attend service Just Compassion Designate point provider meetings with report to TCAC as of contact for city or county verification of attendance (at least 3 by housing and houseless initiative Dec 31, 2024). information 2) Active participation and information • Liaison/representatives to attend service sharing from stakeholder provider meetings with report to TCAC as organizations (in item 1 above)to verification of attendance(at least 3 by TCAC Dec 31, 2024). a. Attend meetings • Report to TCAC with ongoing progress b. Provide Reports to TCAC regarding increased inventory of shelter c. Return feedback from TCAC to and housing(at least 2 by Dec 31, 2024) stakeholder groups o Engage TCAC for feedback to provide d. Include City staff at future meetings, including position statements or other forms of support or advice 3) Monitor data obtained by City • Quarterly or as available,share data pursuant to desired outcome: "Grow available to the City regarding impacts of Collaborative Partnerships" programmatic efforts (at least 1 by Dec a. Monitor data obtained by City 31, 2024) b. Arrange for presentations to • Connect with local experts, such as Kim TCAC by local, regional, and/or Ezell, to arrange an annual TCAC national experts presentation P r e p a t e d tor TCAC hy Amanda Sharp , I d eat e h u s I n e s s cons u I t i n g May 2 0 2 3 sharp . a m a n d a . k@ g m a i l . c o m 6IF i. Work with City staff to schedule TCAC presentation 4) Consider providing development • Obtain current project budget from J.C. assistance including gap funding/documented at a. Just Compassion TCAC meeting i. Expand transitional • Obtain projection of anticipated revenues housing and wrap-around for City Center District for next 3 fiscal services years ii. Site, develop and partner to operate transitional • Acquire data on the estimated increase in housing with wrap-around services, shelter, or housing anticipated services in Tigard upon project completion-report to TCAC in minutes (by Dec 31, 2024) • Identify existing funding commitments, coordinate with Just Compassion on available potential funding • Recommend set-aside for next 3 fiscal years)++ • Work with CPAH designee,to obtain project budget and project schedule (by Sept 1, 2024) b. Community Partners for • Obtain a projection of anticipated Affordable Housing revenues for Triangle District for next 2 i. Woodland Hearth Project fiscal years, or reasonable timeframe. ii. Identify existing (See Goal 4, bullet 2+ commitments of the • Acquire data on the estimated increase in Triangle District's TIF services,shelter,or housing anticipated funds for next 2 fiscal upon project completion-report to TCAC years in minutes (by Dec 31, 2024) iii. Coordinate and make • Identify existing funding commitments, recommendation for coordinate with CPAH on available funding potential funding • Recommend set-aside for next 2 fiscal years [amount net of forgivable loan previously committed] See Goal 4, bullets 3-4++ Prepared for TCAC by Amanda Sharp , ideate business consulting May 2 0 2 3 sharp . amanda . k@gmail . com 71 P a g e IIIIIIIIIIINIII 11111 A TCDA Town Center Development Agency (A Component Unit of the City of Tigard, Oregon) AnnualFinancial FOR THE FISCAL YEAR ENDING JUNE 30, 2023 • • • • 5. -, 44- �-,-,5 - • . .4 ... . j((� l _IL\ , l l 4-' ,r..pi .i, . :,,,,,, ._______ . .....•4 + v 01 3U -_. r a s�._.r s - e _ '�E_ "' "'avA '� ter. - s '" R '� r _- - - i • ---'..-1-1-'."--1-: "t-*- _ .a.t> ' g ,, j£ 4rL.' i. tx,c ' ` mac..' � -er4',' ''''.1'.-... : '• •: tr f, a+- h t Prepared by: City of Tigard - Finance Departmen TOWN CENTER DEVELOPMENT AGENCY (A Component Unit of the City of Tigard, Oregon) ANNUAL FINANCIAL REPORT For the fiscal year ended June 30, 2023 Prepared by: City of Tigard — Finance Department No content appears on this page by design. Town Center Development Agency Table of Contents Introductory Section: List of Officials 1 Financial Section: Independent Auditor's Report 2 Management's Discussion and Analysis 5 Basic Financial Statements: Government-Wide Financial Statements Statement of Net Position 10 Statement of Activities 11 Fund Financial Statements—Governmental Funds Balance Sheet and Reconciliation 12 Statement of Revenues, Expenditures and Changes in Fund Balance and Reconciliation 13 Notes to the Basic Financial Statements 14 Other Supplementary Information: Schedule of Revenues, Expenditures and Changes in Fund Balance— Budget and Actual: City Center Capital Projects Fund 21 Tigard Triangle Capital Projects Fund 22 City Center Debt Service Fund 23 Tigard Triangle Debt Service Fund 24 Audit Comments and Disclosure Requirements: Independent Auditor's Report Required by Oregon State Regulations 25 Town Center Development Agency List of Officials Fiscal Year 2022-2023 TOWN CENTER DEVELOPMENT AGENCY BUDGET COMMITTEE Jake Schlack Mayor Heidi Lueb Timothy Cadman Councilor Yi-Kang Hu Leah Voit Councilor Jeanette Shaw Kelli Pement Councilor Jai Raj Singh Clarissa Benfield Councilor Maureen Wolf TOWN CENTER DEVELOPMENT AGENCY BOARD Heidi Lueb, Chair Yi-Kang Hu Maureen Wolf Jai Raj Singh Jeanette Shaw EXECUTIVE DIRECTOR Steve Rymer COMMUNITY DEVELOPMENT DIRECTOR Kenny Asher REDEVELOPMENT PROJECT MANAGER for DOWNTOWN Sean Farrelly FINANCE DIRECTOR Eric Kang TOWN CENTER DEVELOPMENT AGENCY City of Tigard 113125 Hall Blvd. I Tigard,OR 97223 1503-639-4171 1 INDEPENDENT AUDITOR'S REPORT ® MOSSADAMS Report of Independent Auditors Board Members Town Center Development Agency(A component unit of the 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 and each major fund of the Town Center Development Agency(the Agency), a component unit of City of Tigard, Oregon, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Agency'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 and each major fund of the Agency as of June 30, 2023, and the respective changes in financial position 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). 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 Agency 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 ofManagementfor 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. 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 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, 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 Agency'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. 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. Emphasis ofMatter As discussed in Note 1, the financial statements present only the Agency and do not purport to, and do not, present fairly the financial position of City of Tigard, Oregon, as of June 30, 2023, the changes in its financial position, or, where applicable, its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 5 through 9 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. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Agency's basic financial statements. The budgetary schedules on pages 21 through 24 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 budgetary 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 section 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 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 February 27, 2024, on our consideration of the Agency'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. 41*(4. Keith Simovic, Partner for Moss Adams LLP Portland, Oregon February 27, 2024 No content appears on this page by design. Town Center Development Agency Management's Discussion and Analysis As part of this Annual Financial Report,the Town Center Development Agency(agency),a component unit of the City of Tigard, Oregon, offers readers this narrative overview and analysis of the financial activities of the agency for the fiscal year ended June 30, 2023. It focuses on significant financial issues, major financial activities, and resulting changes in financial position, as well as economic factors affecting the agency. 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 report. Financial Highlights • The assets of the agency exceeded its liabilities at the close of the most recent fiscal year by $7,563,576. Of this amount, $4,103,104 is restricted for the repayment of debt, and $3,576,577 is for net investment in capital assets. The agency has an unrestricted deficit net position of $116,105. • The agency's net position (assets less liabilities)increased$2,440,532 over the course of the year, primarily due to property tax and intergovernmental revenues exceeding expenses. • In the fund financial statements for fiscal year 2022-23, of the expenditures in the capital projects fund types ($8,357,288), the majority were for capital outlay in the amount of$6,640,821, most of which was for the downtown plaza construction.The payments in the debt service fund types ($1,168,996)were for principal and interest payments on commercial bank borrowings and to the City of Tigard. • Also in the fund financial statements,the agency recognized$2,131,039 in revenue from property taxes, $2,015,452 in intergovernmental revenues, $292,387 in interest earnings, and $138,350 in net increase in investments fair value. Overview of the Financial Statements The following discussion and analysis is intended to serve as an introduction to the agency's basic financial statements. The agency's basic financial statements include three components: 1. Government-wide financial statements, 2. Fund financial statements, and 3. Notes to the financial statements. Government-wide financial statements Government-wide financial statements are designed to provide readers with a broad overview of the agency's finances, in a manner that is similar to a private-sector business. The Statement of Net Position presents information on all of the agency's assets and liabilities, with the difference between the two 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 agency is improving or deteriorating. The Statement of Activities presents information on how the agency's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in the statement for some items that will result in cash flows in a future period such as earned, but uncollected property taxes. 5 Town Center Development Agency Management's Discussion and Analysis The government-wide financial statements indicate that the functions of the agency are principally supported by property taxes and are considered governmental activities. The agency does not have business-type activities in which costs are covered through user fees or charges. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or functions. The agency uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the agency are considered governmental funds. Governmental funds are used to account for agency functions that are supported primarily by taxes and intergovernmental revenues.These are essentially the same functions that are reported as governmental activities in the government-wide financial statements. Unlike government-wide financial statements, governmental fund financial statements focus on the acquisition and use of spendable resources, as well as balances of available spendable resources at the end of the fiscal year.Such information may be useful in evaluating the agency's near-term requirements. The agency maintains four separate governmental funds consisting of the City Center Debt Service Fund, City Center Capital Projects Fund, Tigard Triangle Debt Service Fund and Tigard Triangle Capital Projects Fund.The Capital Projects Funds function as the agency's general operations funds for the separate urban renewal areas. Fund information is presented as combined amounts for Capital Projects Funds and Debt Service Funds in the governmental funds balance sheet and in the governmental funds statement of revenues and expenditures. Notes to the basic Financial Statements The notes provide additional information that is essential for a full understanding of the data provided in the government-wide and fund financial statements. They are an integral part of the financial statements and should be read in conjunction with them. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of the agency's financial position. In the case of the agency, assets exceeded liabilities by$7,563,576 in fiscal year 2023 compared to a net position of$5,123,044 in fiscal year 2022. A significant portion of the agency's net position(47.3 percent) reflects its net investment in capital assets, consisting of land, construction in progress, and infrastructure. The agency uses these capital assets in the redevelopment of the designated City Center Urban Renewal area and the Tigard Triangle Urban Renewal area and, as such, are not available for future spending. In fiscal year 2023, capital assets increased by a net amount of $6,584,961 as the agency continued construction on the downtown universal plaza project. $4,103,104 or 54.2 percent of net position is restricted for the payment of debt incurred by the agency. The agency has an unrestricted deficit in net position of$116,105 (-1.5% of net position). 6 Town Center Development Agency Management's Discussion and Analysis Town Center Development Agency Statement of Net Position June 30, 2023 2022 ASSETS: Cash and restricted cash $11,021,460 $14,796,961 Receivables 571,344 526,136 Capital assets, net of accumulated depreciation 12,064,749 5,479,788 Total assets 23,657,553 20,802,885 LIABILITIES: Accounts payable and other short-term liabilities 1,545,064 1,134,840 Long-term liabilities 14,548,913 14,545,001 Total liabilities 16,093,977 15,679,841 NET POSITION: Net investment in capital assets 3,576,577 1,960,320 Restricted for debt service 4,103,104 2,978,937 Unrestricted (116,105) _ 183,787 Total net position $ 7,563,576 $ 5,123,044 Town Center Development Agency Change in Net Position For the Year Ended June 30, REVENUES: 2023 2022 General revenues $ 4,582,678 $ 1,956,086 Total revenues 4,582,678 1,956,086 EXPENSES: Community development 1,772,327 408,186 Interest on long-term debt 369,819 327,018 Total expenses 2,142,146 735,204 Change in net position 2,440,532 1,220,882 Net position - beginning 5,123,044 3,902,162 Net position -ending $ 7,563,576 $ 5,123,044 7 Town Center Development Agency Management's Discussion and Analysis Capital Assets and Debt Administration Capital Assets As of June 30, 2023, the agency had invested $12,064,749 in capital assets as reflected in the following table: Governmental Activities 2023 2022 Land $ 1,279,951 $ 1,279,951 Construction in progress 9,214,042 2,573,221 Infrastructure 1,951,748 1,951,748 Accumulated depreciation (380,992) (325,132) Total $12,064,749 $ 5,479,788 The Town Center Development Agency purchased the 9110 SW Burnham Street property in 2014. For six years it continued the lease with Ferguson Plumbing. In March 2020 the Agency facilitated the relocation of the business to a new location, in order to prepare the site to be redeveloped as a public plaza. Landscape architects and associated consultants were engaged in February 2020 to start designing the plaza. In June 2020 the existing building was demolished and development of the plaza began. Construction of the plaza was fully underway from June 2020 through the fiscal year 2022-2023. In January 2021 the Main Street at Fanno Creek property was sold to developers who began construction of a mixed- use building on the site.Additional information on the agency's capital assets can be found on page 18 of this report. Debt Under the Intergovernmental Agreement(IGA) between the agency and the City of Tigard (the City), loans from the city to the agency are repaid in ten equal payments on the principal starting ten years after the loan;however,interest payments start in the second year after the loan. In fiscal year 2022-23,the agency did receive one loan from the city in the amount of$900,000, and only made interest payments on the outstanding loans. In fiscal year 2021-22, the agency issued $4,687,800 in Urban Renewal and Redevelopment bonds solely backed by tax increment revenue generated from the Tigard Triangle Urban Renewal Plan. Additionally, the city issued $4,624,600 in full faith and credit financing agreement (bonds). The bonds were issued to fund Urban Renewal projects within the agency. At June 30, 2023, the outstanding balance on this debt was $8,372,700. In fiscal year 2019-20,the city issued $5,929,000 in full faith and credit financing agreement(bonds).The bonds were issued to fund Urban Renewal projects within the agency. At June 30, 2023, the outstanding balance on the bonds was$5,186,000. Additional information on the agency's debt can be found on pages 19-20 of this report. 8 Town Center Development Agency Management's Discussion and Analysis Budgetary Highlights The Town Center Development Agency budget consists of four funds: The City Center Capital Projects Fund, which functions as the agency's general operations fund for the Downtown Urban Renewal Area, and the Tigard Triangle Capital Projects Fund, which functions as the agency's general operations for the Triangle Urban Renewal Area. The agency also has a City Center Debt Service Fund and Tigard Triangle Debt Service Fund.The Capital Projects Fund activity is supported by loans from the City of Tigard and the bonds issuances.The city loans will be repaid with interest once the agency begins generating enough tax increment revenue.The focus of the fiscal year 2022-23 budget was primarily on the Universal Plaza. The budget for fiscal year 2023-24 will include further construction of Universal Plaza, Main Street Green Street improvements, and Streetscape Improvements. The agency will also provide development assistance to support affordable housing in the area. The agency will further engage the Agency's merchants and business owners together with the Tigard Downtown Alliance to promote new businesses in the district. Economic Factors The Town Center Development Agency is an urban renewal agency approved by voters in 2006. The primary funding source for the agency is property tax increment financing, which generally means that the property taxes resulting from growth in property value within the Urban Renewal area can be used to finance improvement projects and programs. In order to facilitate the redevelopment of the Urban Renewal area, the agency adopted a City Center Urban Renewal Plan that allows the agency to incur a maximum amount of indebtedness (amount of tax increment financing for projects and programs) of $22,000,000 for a duration of 20 years. In 2021,the voters approved an amendment to the plan extending the duration to 29 years and increasing the maximum indebtedness to$42,800,000.As of fiscal year 2022- 23, the total debt issued is $12.5 million. Current and proposed projects include additional façade improvement grants for local businesses, redevelopment of Main Street where it connects to Fanno Creek, completion of Tigard Street Heritage trail for improved pedestrian traffic and construction of Universal Plaza offering more public space for events and local activities. In May 2017 the voters approved the creation of a second urban renewal area,the Tigard Triangle Urban Renewal Area, for 35 years with maximum principal indebtedness of$188 million. As of fiscal year 2022- 23,the total debt issued is $8.9 million. No new debt will be incurred after the fiscal year 2052-53 as part of this plan.The agency's ability to borrow additional funds will remain constrained for several more years as tax increment revenue is based on property tax increases over time and growth was fairly slow at the time the agency was created. Despite the slow growth,the agency has been able to leverage state,county and local funds to make major improvements to streets, bicycle and pedestrian paths in the district. The agency will continue to seek additional funding from outside sources for redevelopment opportunities as planning continues for affordable housing and infrastructure improvements. Requests for Information This financial report is designed to provide a general overview of the agency's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, City of Tigard, 13125 SW Hall Blvd.,Tigard, Oregon 97223. 9 No content appears on this page by design. Basic Financial Statements No content appears on this page by design. Town Center Development Agency Statement of Net Position June 30,2023 Governmental Activities ASSETS: Property taxes receivable $ 28,483 Accounts receivable 42,861 Note receivable 500,000 Restricted cash and cash equivalents 11,021,460 Land and construction in progress 10,493,993 Other capital assets, net of accumulated depreciation 1,570,756 Total assets 23,657,553 LIABILITIES: Accounts payable and other accrued liabilities 620,708 Interest payable 28,268 Due within one year: Advances from city 74,788 Bonds payable 821,300 Due within more than one year: Advances from city 1,811,513 Bonds payable 12,737,400 Total liabilities 16,093,977 NET POSITION: Net investment in capital assets 3,576,577 Restricted for debt service 4,103,104 Unrestricted (116,105) Total net position $ 7,563,576 The accompanying notes are an integral part of the basic financial statements. 10 Town Center Development Agency Statement of Activities Year Ended June 30,2023 Net (Expense)/Revenue Program and Change in Net Revenues Position Rental Income and Total Charges for Governmental Functions/Programs Expenses Services Activities Governmental activities: Community development $ 1,772,327 $ - $ (1,772,327) Interest on long-term debt 369,819 - (369,819) Total governmental activities $ 2,142,146 $ - (2,142,146) General revenues: Property taxes 2,136,489 Interest earnings and net increase in investment fair value 430,737 Intergovernmental 2,015,452 Total revenues 4,582,678 Change in net position 2,440,532 Net position -beginning 5,123,044 Net position -ending $ 7,563,576 The accompanying notes are an integral part of the basic financial statements. 11 Town Center Development Agency Balance Sheet-Governmental Funds and Reconciliation to the Statement of Net Position June 30,2023 Tigard Tigard City Center Triangle City Center Triangle Total Capital Capital Debt Service Debt Service Governmental Projects Fund Projects Fund Fund Fund Funds ASSETS: Property taxes receivable $ - $ - $ 11,548 $ 16,935 $ 28,483 Accounts receivable 2,837 30,034 4,282 5,708 42,861 Note receivable - 500,000 - - 500,000 Restricted cash and cash equivalents 759,052 6,197,777 1,975,011 2,089,620 11,021,460 Total assets $ 761,889 $ 6,727,811 $ 1,990,841 $ 2,112,263 $ 11,592,804 LIABILITIES: Accounts payable and accrued liabilities $ 620,509 $ 199 $ - $ - $ 620,708 DEFERRED INFLOWS OF RESOURCES: Unavailable revenues-property taxes - - 9,537 13,840 23,377 FUND BALANCES: Restricted for: Debt service - - 1,981,304 2,098,423 4,079,727 Urban development and improvements 141,380 6,727,612 - - 6,868,992 Total fund balances 141,380 6,727,612 1,981,304 2,098,423 10,948,719 Total liabilities,deferred inflows of resources and fund balances $ 761,889 $ 6,727,811 $ 1,990,841 $ 2,112,263 Capital assets used in governmental activities are not financial resources and are not reported in the funds. 12,064,749 Property taxes that do not provide current financial resources 23,377 Interest on long-term debt not accrued in the fund statements (28,268) Long-term liabilities-not reported in the funds: Loans from City of Tigard,not due and payable in the current period (1,886,301) Bonds,not due and payable in the current period (13,558,700) Net Position of Governmental Activities $ 7,563,576 The accompanying notes are an integral part of the basic financial statements. 12 Town Center Development Agency Statement of Revenues,Expenditures and Changes in Fund Balance-Governmental Funds and Reconciliation to the Statement of Activities Year Ended June 30,2023 Tigard Tigard City Center Triangle City Center Triangle Total Capital Capital Debt Service Debt Service Governmental Projects Fund Projects Fund Fund Fund Funds REVENUES: Taxes $ - $ - $ 809,231 $ 1,321,808 $ 2,131,039 Interest earnings 34,687 137,229 57,736 62,735 292,387 Net increase in investment fair value 45,583 74,491 9,449 8,827 138,350 Intergovernmental revenues 2,015,452 - - - 2,015,452 Total revenues 2,095,722 211,720 876,416 1,393,370 4,577,228 EXPENDITURES: Community Development 109,236 1,607,231 - - 1,716,467 Capital projects 6,640,821 - - - 6,640,821 Debt service Principal - - 314,700 486,000 800,700 Interest - - 176,623 191,673 368,296 Total expenditures 6,750,057 1,607,231 491,323 677,673 9,526,284 Change in fund balance before other financing sources(uses) (4,654,335) (1,395,511) 385,093 715,697 (4,949,056) Other financing sources(uses): Debt issuance 900,000 - - - 900,000 Change in fund balance (3,754,335) (1,395,511) 385,093 715,697 (4,049,056) Fund balance-beginning 3,895,715 8,123,123 1,596,211 1,382,726 14,997,775 Fund balance-ending $ 141,380 $ 6,727,612 $ 1,981,304 $ 2,098,423 $ 10,948,719 Net change in fund balances-total governmental funds $ (4,049,056) Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets. Expenditures for capitalized assets 6,640,821 Depreciation reported in the government-wide statements (55,860) Property taxes that do not provide current financial resources 5,450 Interest on long-term debt not accrued in the fund statements (1,523) Long-term liabilities not reported in the funds (900,000) Principal payments expensed on the fund financial statements 800,700 Change in Net Position of Governmental Activities $ 2,440,532 The accompanying notes are an integral part of the basic financial statements. 13 Town Center Development Agency Notes to the Basic Financial Statements 1. Summary of Significant Accounting Policies: The financial statements of the Town Center Development Agency(agency), previously Tigard City Center Development Agency (CCDA), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. GAAP statements include all relevant Governmental Accounting Standards Board (GASB) pronouncements. The Agency The Town Center Development Agency,formerly the CCDA,was approved on May 16, 2006 with plans to commence operations during fiscal year 2009 under the provisions of Oregon Revised Statutes, Chapter 457 (ORS 457), to provide improvements in the downtown area so that it will be economically healthy while maintaining its "uniquely Tigard" character. The plan's duration is 20 years with maximum indebtedness of$22 million. In May 2021,the voters approved an amendment to the plan extending the duration to 29 years and increasing the maximum indebtedness to$43 million. In May 2017,the voters approved the creation of a second urban renewal area,the Tigard Triangle Urban Renewal Area,for 35 years with maximum indebtedness of$188 million. The agency is a legally separate entity, which is governed by a board comprised of the City Council of the City of Tigard, Oregon (the city), as stipulated in the bylaws. The Council has the ability to impose its will on the agency as determined on the basis of budget adoption,taxing authority, and funding. The purpose of the agency is to undertake urban renewal projects and activities pursuant to the city's downtown redevelopment plan. The financial results of the agency are reported herein as debt service funds and capital projects funds. The agency boundaries include primarily the city's central business district, general commercial district, professional commercial district and the Tigard Triangle (an area bordered by 1-5, Highway 217, and Highway 99 East). The agency is a blended component unit of the City of Tigard and its financial activities are included in the basic financial statements of the city, which can be viewed on the city's website at http://www.tigard-or.gov. Basic Financial Statements The agency's financial operations are presented at both the government-wide and fund financial levels. All activities of the agency are categorized as governmental activities. Government-wide financial statements The Statement of Net Position and the Statement of Activities display information about the agency as a whole. These statements include all the financial activities of the agency. The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the agency's governmental activities. Direct expenses are clearly identifiable with a specific function. All costs are supported by general revenues which include property taxes and interest earnings. Fund financial statements These statements display information at the individual fund level. Each fund is considered to be a separate accounting entity. Funds are classified and summarized as governmental, proprietary and fiduciary. Currently the agency has only governmental fund types. 14 Town Center Development Agency Notes to the Basic Financial Statements Basis of Presentation The financial transactions of the agency 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 balance, revenues and expenditures. GASB Statement No. 34 sets forth 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. For purposes of presentation, each of the agency's funds is presented as a major fund. The City Center Debt Service Fund accounts for the accumulation of resources and payments for long- term borrowings related to the City Center Urban Renewal Area. The Tigard Triangle Debt Service Fund accounts for the accumulation of resources and payments for long- term borrowings related to the Tigard Triangle Urban Renewal Area. The City Center Capital Projects Fund accounts for the acquisition and development of capital assets related to the City Center Urban Renewal Area. The Tigard Triangle Capital Projects accounts for the acquisition and development of capital assets related to the Tigard Triangle Urban Renewal Area. 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, regardless of the measurement focus. The government-wide financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded as program revenues when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of 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 agency considers revenues to be available if they are collectible within 60 days of the end of the current fiscal period. The agency considers property taxes subject to accrual. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, payment on long-term borrowing is recorded only when payment is due. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government-wide statements, reconciliation is necessary to explain the adjustments needed to transform the fund-based financial statements into the government-wide presentation. These reconciliations are presented with the governmental fund statements. 15 Town Center Development Agency Notes to the Basic Financial Statements Cash and Investments The city maintains a common cash and cash equivalents pool for all city funds, including funds of the agency. Interest is earned and allocated monthly on pooled cash and cash equivalents based on each fund's cash balances as a proportion of the city's total pooled cash and cash equivalents. The agency considers cash and cash equivalents to include the pooled cash, since the pool has the general characteristics of a demand deposit account, in that any participating fund may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty. The agency reports certain cash and cash equivalents as restricted because their use is limited by parties external to the agency. Restrictions may be imposed by creditors, other governments, laws and/or enabling legislation. Receivables and Payables 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 majority of the agency's receivables are property taxes, which are deemed to be substantially collectible. Capital Assets Capital assets,which include property, plant, equipment and infrastructure assets (e.g. roads, pathways, street lights, etc.) are reported in the government-wide financial statements. Capital assets are charged to expenditures as purchased or constructed in the governmental fund statements, and capitalized in the government-wide financial statements. Capital assets are recorded at historical cost or estimated historical cost. Upon disposal of an asset, cost and accumulated depreciation (if applicable) is removed from the accounts and, if appropriate, a gain or loss on the disposal is recognized. Capital assets are defined for the agency 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. Donated capital assets are recorded at their estimated acquisition value at the time of donation. Other costs for repairs and maintenance are expensed as incurred. Depreciation on exhaustible assets is calculated on the straight-line basis over the following estimated useful lives: Asset Years Buildings and improvements 25-40 Improvements other than buildings 10-20 Infrastructure 20-40 Deferred Inflows of Resources In addition to liabilities, the governmental fund balance sheet reports a separate section for deferred inflows of resources. Deferred inflows of resources represent unavailable revenue that will be recognized in a future period. The agency reports delinquent property tax revenue in this section under the modified accrual basis of accounting. These revenues are deferred and recognized as an inflow of resources in the period that the revenues become available. 16 Town Center Development Agency Notes to the Basic Financial Statements Net Position and Fund Balance Net position is reported on the Statement of Net Position. Within net position, the net investment in capital assets represents total capital assets less accumulated depreciation, less any debt related to the acquisition of the assets. Of the total net position, the majority is net investment in capital assets and amounts restricted for debt service. In the fund financial statements, the fund balance for governmental funds is reported in classifications that comprise a hierarchy 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. Fund balance is reported as restricted when the constraints placed on the use of resources are either: (a) externally imposed by creditors (such as through debt covenants), grantors, contributors or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Use of Estimates In preparing the agency'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. 2. Stewardship, Compliance, and Accountability: Budgets The agency's budget is prepared in accordance with Oregon local budget law. All annual appropriations lapse at fiscal year-end. During the month of February each year, the agency submits requests for appropriations to the executive director so that a budget may be prepared. In June,the proposed budget is presented to the agency's board of directors for approval. The board holds public hearings and a final budget must be prepared and adopted no later than June 30. The adopted budget is prepared by fund and function. The legal level of budgetary control,(i.e.,the level at which expenditures may not legally exceed appropriations) is the fund and function level. 3. Cash and Investments: The agency's cash and investments reported on the Statement of Net Position and Balance Sheet represent the agency's share of the city's cash and investment pool. The agency's participation in the cash and investment pool is involuntary. Interest earnings from this pool are allocated to the agency on a monthly basis based on the cash and investment balance of the agency to the total investments in the pool. At June 30, 2023, the agency's share of the city's cash and investment pool, including restricted and unrestricted, totaled $11,021,460 all of which is restricted by the requirements of the agency's property tax levy. It is not practical to determine the investment risk,collateral risk or insurance coverage for the agency's share of its pooled investments. Investments for the city as well as its component unit are reported at fair value. Information about the pooled investments is included in the city's annual financial report and may be obtained by contacting the city's Finance Department at 13125 SW Hall Blvd.,Tigard, OR 97223 or found online at: https://www.tigard-or.gov/your-government/departments/finance. 17 Town Center Development Agency Notes to the Basic Financial Statements 4. Receivables and Payables: 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 agency's receivables, including property taxes and assessments are deemed to be substantially collectible. Tax and assessments receivable can be recovered through foreclosure on the subject property. In October 2021, the agency issued a promissory note to lend $500,000 to Community Partners for Affordable Housing for affordable housing development assistance,with a term of five years at an interest rate of 2%.The repayment of principal and accrued interest are due at the end of the five year note term. The promissory note contains provisions for loan forgiveness if certain requirements are met. As of June 30, 2023,the outstanding balance of the note receivable is $500,000. Accounts payable to vendors and contractors include general accounts payable not included in other short-term or long-term liabilities. 5. Capital Assets: Capital assets include a property purchase for redevelopment projects on Main Street, construction of Universal Plaza,the completion of two projects for the Strolling Street landscaping program, Main Street gateway improvements and public artwork. Balance Balance June 30, 2022 Additions Deletions June 30, 2023 Land $ 1,279,951 $ - $ - 1,279,951 Construction in Progress 2,573,221 6,640,821 - 9,214,042 Infrastructure 1,951,748 - - 1,951,748 Total Cost 5,804,920 6,640,821 - 12,445,741 Depreciation- Infrastructure (325,132) (55,860) - (380,992) Capital Assets, Net $ 5,479,788 $ 6,584,961 $ - 12,064,749 6. Long-term Borrowing: The agency has two urban renewal district areas approved to finance improvement projects with property tax increment financing. The first area is the City Center Urban Renewal District (CCUR) with a maximum indebtedness of$22 million for a duration of 20 years. As of fiscal year 2022-2023, the CCUR issued $12.5 million in total debt against the maximum indebtedness. The second area is the Tigard Triangle Urban Renewal District (TTUR) with a maximum indebtedness of$188 million for a duration of 35 years. As of fiscal year 2022-2023, the TTUR issued $8.9M in total debt against the maximum indebtedness. 18 Town Center Development Agency Notes to the Basic Financial Statements In order to finance improvement projects, the agency and the city entered into an intergovernmental agreement (IGA) that states the city will loan the agency resources as needed to cover project costs related to the Town Center Urban Renewal Plan. All of the outstanding debt of the agency is considered from direct borrowings and placements. The terms of the IGA state that the agency agrees to repay the principal and accrued interest on all loan amounts solely from tax increment revenues. The interest rate calculated for the loans is based on the same average rate as that earned on other funds invested by the city at the time of the loan, which currently ranges from 0.50%to 4.05%. Interest-only payments are scheduled to be paid to the city prior to July 1, each fiscal year. During the fiscal year ending June 30, 2025,the agency will begin making principal payments to the city on outstanding loans. Payments are to be made as tax increment revenue or other funding sources are available. In no case shall the repayment timeline exceed the life of the agency. Under the terms of the IGA, the city may forgive or reduce the interest and/or principal due from the agency. The agency may also repay the debt early. The agency received one loan in the amount of$900,000 from the city for fiscal year 2022-2023. In fiscal year 2022-2023, the agency elected to repay none of the outstanding principal on the loans. In fiscal year 2021-2022, the agency issued Urban Renewal and Redevelopment bond for $4,687,800 in Series 2021 Federally Taxable bonds.The bonds were issued to fund Urban Renewal projects within the Tigard Triangle Urban Renewal Plan.The bond is backed solely by tax increment revenue generated from the Tigard Triangle Urban Renewal Area. At June 30, 2023, the outstanding balance on the bond was $4,217,000. In fiscal year 2021-2022,the city issued full faith and credit financing agreement(bonds)for$3,604,900 in Series 2021A Tax-Exempt bonds, and $1,019,700 Series 2021B Federally Taxable bonds. The bonds were issued to fund Urban Renewal projects within the CCUR. In connection with the financing agreement, CCUR and the city executed an intergovernmental agreement(IGA)for CCUR to be obligated for the debt service payments on the bonds. The IGA constitutes indebtedness of the agency in the amount of the financing of$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, 2023, the outstanding balance on the bonds was $3,237,000 for the Series 2021A and $918,700 for the Series 2021B. In fiscal year 2019-2020,the city issued full faith and credit financing agreement (bonds)for$1,896,000 in Series 2019A Tax-Exempt bonds, and $4,033,000 Series 20198 Federally Taxable bonds. The bonds were issued to fund Urban Renewal projects within the CCUR. In connection with the financing agreement, CCUR and the city executed an intergovernmental agreement(IGA)for CCUR to be obligated for the debt service payments on the bonds. The IGA constitutes indebtedness of the agency in the amount of the financing of$5,929,000. Pursuant to ORS 287A.310,the agency pledges the tax increment revenues to pay the financing payments or debt service.The outstanding bonds carry an Event of Default clause which allows the lender to exercise any remedy available at law or in equity, with the exception of acceleration. At June 30, 2023, the outstanding balance on the bonds was $1,650,000 for the Series 2019A and $3,536,000 for the Series 2019B. 19 Long-term debt activity for the year ended June 30, 2023 was as follows: Borrowing Transactions Interest Outstanding Outstanding Due in Outstanding Debt June 30,2022 Additions Paid June 30,2023 Paid one year Loans from City of Tigard for urban renewal projects: Loan#5 June 30,2013 $ 102,320 $ - $ - $ 102,320 $ 512 $ - Loan#5 June 30,2013 40,112 - - 40,112 200 - Loan#6 June 30,2014 361,000 - - 361,000 1,949 - Loan#7 June 30,2015 254,000 - - 254,000 1,270 - Loan#8 June 30,2019 183,273 - - 183,273 5,040 - Loan#9 June 30,2020 45,596 - - 45,596 456 - Loan#10 June 30,2023 - 900,000 - 900,000 - 74,788 2019A Bonds with Key Bank 1,734,000 - (84,000) 1,650,000 40,922 86,000 20196 Bonds with Key Bank 3,706,000 - (170,000) 3,536,000 110,809 176,000 2021 Bonds with Zions Bank 4,482,000 - (265,000) 4,217,000 127,737 272,500 2021A Bonds with Zions Bank 3,458,000 - (221,000) 3,237,000 58,440 224,800 2021B Bonds with Zions Bank 979,400 - (60,700) 918,700 20,959 62,000 Total $ 15,345,701 $ 900,000 $ (800,700) $ 15,445,001 $ 368,294 $ 896,088 Future requirements related to long-term borrowing are as follows: Fiscal Year Loans from City Key Bank Bonds Zions Bank Bonds Totals Ending June 30, Principal Interest Principal Interest Principal Interest Principal Interest 2024 $ 74,788 $ 45,878 $ 262,000 $ 144,666 $ 559,300 $ 194,550 $ 896,088 $ 385,094 2025 91,743 42,849 269,000 137,374 572,200 181,658 932,943 361,881 2026 130,195 39,627 276,000 129,886 585,400 168,451 991,595 337,964 2027 158,569 36,088 284,000 122,200 598,900 154,922 1,041,469 313,210 2028 162,366 32,290 293,000 114,288 612,800 141,064 1,068,166 287,642 2029-2033 932,529 97,985 1,586,000 444,662 3,284,200 485,263 5,802,729 1,027,910 2034-2038 281,216 16,226 2,216,000 61,899 2,159,900 101,782 4,657,116 179,907 2039-2042 54,895 1,973 - - - - 54,895 _ 1,973 $ 1,886,301 $ 312,916 $ 5,186,000 $ 1,154,975 $ 8,372,700 $ 1,427,690 $ 15,445,001 $ 2,895,581 7. Risk Management: As a component unit of the city, the agency is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;errors and omissions;and natural disasters for which the city carries commercial insurance. The city has established risk management programs for liability insurance coverage. The agency is covered under policies and programs insuring the city. There were no insurance claims attributable to the agency as of June 30, 2023. 8. Commitments: The agency has entered into a contract with an outstanding commitment of$253,231 at June 30, 2023 for the Universal Plaza project.The contract will be paid with debt proceeds, property taxes, and various other sources. 20 No content appears on this page by design. Other Supplementary Information No content appears on this page by design. Town Center Development Agency City Center Capital Projects Fund Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual Year Ended June 30,2023 Variance with Budgeted Amounts _ Actual Final Budget Original Final Amounts Over(Under) REVENUES: Intergovernmental revenues $ 1,818,000 $ 1,818,000 $ 2,015,452 $ 197,452 Interest earnings 10,868 10,868 34,687 23,819 Net increase in investment fair value - - 45,583 45,583 Total revenues 1,828,868 1,828,868 2,095,722 266,854 EXPENDITURES: Capital projects* 6,671,500 7,121,500 6,750,057 371,443 Total expenditures 6,671,500 7,121,500 6,750,057 371,443 Change in fund balance before other financing sources(uses) (4,842,632) (5,292,632) (4,654,335) 638,297 OTHER FINANCING SOURCES: Transfers in 349,500 799,500 - (799,500) Debt issuance 900,000 900,000 900,000 - Reserve for future expenditure (798,996) (798,996) - 798,996 Total other financing sources 450,504 900,504 900,000 (504) Change in fund balance (4,392,128) (4,392,128) (3,754,335) 637,793 Fund balance-Beginning of the year 4,392,128 4,392,128 3,895,715 (496,413) Fund balance-End of the year $ - $ - $ 141,380 $ 141,380 * For budgetary purposes expenditures are appropriated as capital projects,however on the GAAP statements non-capital transactions are recorded as program expenditures. 21 Town Center Development Agency Tigard Triangle Capital Projects Fund Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual Year Ended June 30,2023 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Over(Under) REVENUES: Interest earnings $ - $ - $ 137,229 $ 137,229 Net increase in investment fair value - - 74,491 74,491 Total revenues - - 211,720 211,720 EXPENDITURES: Community development 5,177,500 5,177,500 1,607,231 3,570,269 Capital projects 1,000,000 1,000,000 - 1,000,000 Total expenditures 6,177,500 6,177,500 1,607,231 4,570,269 Change in fund balance before other financing sources(uses) (6,177,500) (6,177,500) (1,395,511) 4,781,989 OTHER FINANCING SOURCES: Transfers in 1,719,500 1,719,500 - (1,719,500) Reserve for future expenditures (3,306,241) (3,306,241) - 3,306,241 Total other financing sources (1,586,741) (1,586,741) - 1,586,741 Change in fund balance (7,764,241) (7,764,241) (1,395,511) 6,368,730 Fund balance-Beginning of the year 7,764,241 7,764,241 8,123,123 358,882 Fund balance-End of the year $ - $ - $ 6,727,612 $ 6,727,612 22 Town Center Development Agency City Center Debt Service Fund Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual Year Ended June 30,2023 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Over(Under) REVENUES: Property taxes $ 773,146 $ 773,146 $ 809,231 $ 36,085 Interest earnings 2,132 2,132 57,736 55,604 Net increase in investment fair value - - 9,449 9,449 Total revenues 775,278 775,278 876,416 101,138 EXPENDITURES: * Debt service: Principal 346,000 346,000 314,700 31,300 Interest 194,000 194,000 176,623 17,377 Total expenditures 540,000 540,000 491,323 48,677 Change in fund balance before other financing sources(uses) 235,278 235,278 385,093 149,815 OTHER FINANCING USES Transfers out (349,500) (799,500) - 799,500 Reserve for future expenditure (738,529) (288,529) - 288,529 Total other financing sources(uses) (1,088,029) (1,088,029) - 1,088,029 Change in fund balance (852,751) (852,751) 385,093 1,237,844 Fund balance-Beginning of the year 852,751 852,751 1,596,211 743,460 Fund balance-End of the year $ - $ - $ 1,981,304 $ 1,981,304 * Budget appropriation for the Urban Renewal Agency is made at the debt service program level. 23 Town Center Development Agency Tigard Triangle Debt Service Fund Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual Year Ended June 30,2023 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Over(Under) REVENUES: Property taxes $ 1,421,550 $ 1,421,550 $ 1,321,808 $ (99,742) Interest earnings 3,416 3,416 62,735 59,319 Net increase in investment fair value - - 8,827 8,827 Total revenues 1,424,966 1,424,966 1,393,370 (31,596) EXPENDITURES: * Debt service: Principal 500,000 500,000 486,000 14,000 Interest 200,000 200,000 191,673 8,327 Change in fund balance before other financing sources(uses) 724,966 724,966 715,697 (9,269) OTHER FINANCING SOURCES(USES) Transfers out (1,719,500) (1,719,500) - 1,719,500 Reserve for future expenditure (371,951) (371,951) - 371,951 Total other financing sources(uses) (2,091,451) (2,091,451) - 2,091,451 Change in fund balance (1,366,485) (1,366,485) 715,697 2,082,182 Fund balance-Beginning of the year 1,366,485 1,366,485 1,382,726 16,241 Fund balance-End of the year $ - $ - $ 2,098,423 $ 2,098,423 * Budget appropriation for the Urban Renewal Agency is made at the debt service program level. 24 INDEPENDENT AUDITOR'S REPORT REQUIRED BY OREGON STATE REGULATIONS 0 MOSSADAMS Report of Independent Auditors Required by Oregon State Regulations Board Members Town Center Development Agency(A component unit of the City of Tigard, Oregon) Tigard, Oregon We have audited, in accordance with auditing standards generally accepted in the United States of America the financial statements of the governmental activities and each major fund of the Town Center Development Agency(the Agency)a component unit of City of Tigard, Oregon, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise Agency's basic financial statements, and have issued our report thereon dated February 27, 2024. Compliance As part of obtaining reasonable assurance about whether the Agency'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 Investments Public contracts and purchasing In connection with our testing, nothing came to our attention that caused us to believe the Agency 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. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Agency'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 Agency's internal control. Accordingly, we do not express an opinion on the effectiveness of the Agency'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 Board Members and management of the Agency and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these parties. Xsieef..., ec.............. Keith Simovic, Partner for Moss Adams LLP Portland, Oregon February 27, 2024 AIS-5415 6. Business Meeting Meeting Date: 03/05/2024 Length (in minutes):45 Minutes Agenda Title: Town Center Development Agency Joint Meeting with Town Center Advisory Commission Authored By: Sean Farrelly Presented By: TCAC Chair Gabe Velasquez and Vice-Chair Elise Shearer Item Type: Joint Meeting-Board or Other Juris. Town Center Development Agency Public Hearing No Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE Annual joint meeting of the Board of the Town Center Development Agency (TCDA) with the Town Center Advisory Commission (ICAC.) ACTION REQUESTED Team recommends the TCDA Board hold the joint meeting with the Town Center Advisory Commission to discuss their 2023 Annual Report and their 2023-2024 strategic plan. BACKGROUND INFORMATION The Town Center Advisory Commission (ICAC) makes recommendations to the Board of the Town Center Development Agency (TCDA) on Tax Increment Financing (TIF) District policy, budget and implementation measures for both the Tigard Triangle and the City Center TIF Districts.The TCAC meets annually with the Board of the TCDA to share information and receive feedback. The TCAC leadership elected at the January meeting are Chair Gabe Velasquez and Vice-Chair Elise Shearer. The team liaison to the TCAC is Redevelopment Manager Sean Farrelly. Two items will inform the joint meeting discussion- the TCAC's 2023 Annual Report, and the 2023-24 strategic plan. The 2023 Annual Report was previously provided in the November 30, 2023 Council Newsletter and is included as an attachment for the Board's review. Last year, the TCAC developed a strategic plan for 2023-24,including areas of emphasis, aspirational goals, strategies, and action plans. The plan was slightly revised and updated at their February meeting.The TCAC will review the strategic plan with the TCDA Board. The TCAC's adopted strategic plan as well as the City Center Redevelopment Action Plan and the New Tigard Triangle: Planning for Equitable Development documents will guide teammate's implementation of the TIF District plans. A brief PowerPoint presentation from the TCAC will be available prior to this meeting. A brief PowerPoint presentation from the TCAC will be available prior to this meeting. Dates of Previous and Potential Future Considerations The TCAC meets annually with the Town Center Development Agency Board. The last joint meeting was February 7,2023. Impacts (Community, Budget, Policies and Plans/Strategic Connection) Tigard Strategic Plan 2020-2025 •Strategic Priority 3: Ensure development and growth supports the vision •Objectives •3.1 Pursue land development that maximizes public health benefits while increasing connection between people and community destinations. •3.2 Focus development-associated resources in parts of the city that have the capacity to serve, house, employ, and attract the most people with the least impact on Tigard's natural systems and the climate •3.3 Understand the effects of development on vulnerable Tigard residents and mitigate these impacts within projects and over time. •3.4 Proactively intervene as necessary to meet the housing needs of all community members. •3.5 Plan and create in a manner that reduces climate impacts to the maximum extent practicable, especially for those most vulnerable. 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Lor, o..);, _I.„ i r 2023 Annual Report of the Town Center Advisory Commission To the Board of the Town Center Development Agency December 1,2023 The Town Center Advisory Commission (TCAC) formally adopted a strategic plan for 2023- 2024 at their June 14, 2023 meeting. The plan includes a vision, and three areas of emphasis,with Key Performance Indicators (KPI's). Vision:As a commission and through our TIF districts,we will enable, encourage and support redevelopment in the goal of becoming the most walkable community in the Pacific Northwest where people of all ages and abilities enjoy healthy and interconnected lives. Aspirational Goal: Continue to facilitate and promote opportunities for the development of affordable housing, provide support for equitable business development, and advance efforts toward improved walkability, equity, and connectivity within and between both TIF districts. A. Equitable Business Development Strategies: Advocate for stakeholders in all TIF districts using data collection, analysis and summary in the focus areas of: parking, safety, unconventional business opportunities, program and service awareness and possible locations for business development. Action Plans: (1)Advocacy and Support for Business Owners in TIF Districts (2)Analysis and Summary of the Parking Survey (3) Planning for Unconventional Business Opportunities Accomplishments: • Parking committee with 2 TCAC members held meetings • New parking data collection performed and shared with committee • Improvement grants committee (2 TCAC members) awarded five grants • Two food carts at Universal Plaza (third one being considered with input from TCAC member) • Presentation by Tigard Downtown Alliance Board president to TCAC • Two meetings with TDA executive director and TCAC chair or vice chair B. Connectivity and Access Strategies: Advocate for funding in all TIF districts through intentional, strategic support in the form of letters of support, position statements and advisory recommendations to decision-makers.Active support for acquisition of Hall Blvd.by City of Tigard. Perform ad- hoc research to identify walkability issues and potential solutions. Document and report on pertinent studies, such as the Red Rock Creek Study, and legislative actions that may impact safety, pedestrian projects,walkability and way-finding. Action Plans: (1)Advocacy and Support for adequate connectivity, access, mobility and safety related funding: Hall Blvd and 72nd Ave Improvement projects (2)Active support for ownership of Hall Blvd.by the City of Tigard (3)Ad-hoc (personal) research on walkability issues within and between two TIF districts (4) Planning for Wayfinding, signage and technology solutions to encourage multi- modal connectivity between and within TIF districts Accomplishments: • TCAC was briefed on the Downtown Reimagined project which has recommendations for Hall Blvd and other street improvements, and proposes a new Downtown connectivity plan • TCAC wrote letter of support for RAISE grant for phase 1 of 72nd Ave (city was not selected this round) • City awarded state allocation of$3M for Hall Blvd pedestrian improvements C. Affordable Housing and Ho uselessness Attend, update, monitor, report and present with new and pertinent information from housing and houseless stakeholder groups. Coordinate and share information acting as liaisons to TCAC with local organizations to ensure information flow and coordination to improve efficiency. Develop suggested strategies and policies to address housing issues within the purview/scope of TCAC to City officials and decision makers. Support funding needs and development assistance available for shelter, transitional and affordable housing. Action Plans: (1) Identify liaisons to attend regular housing and houseless stakeholder meetings. (2)Active participation and information sharing from stakeholder organizations (in item 1 above) to TCAC (3) Monitor data obtained by City pursuant to desired outcome: "Grow Collaborative Partnerships" (4) Provide development assistance to Just Compassion and CPAH Accomplishments: • TCAC recommended $1 million development assistance grant to Family Promise of Tualatin Valley's A Bridge to Home project, later approved by TCDA Board • TCAC toured A Bridge to Home and CPAH's Red Rock Creek Commons • City staff houselessness point person made presentation to the TCAC and receives TCAC minutes • TCAC member attends CHART meetings • TCAC representative invited Just Compassion to apply for development assistance for its capital expansion On Behalf of the Town Center Advisory Commission, IP 1L� Tom Murphy Chair,TCAC Town Center Advisory Commission (TCAC) Tigard, Oregon Strategic Plan 2023-2024 Revised 2/14/24 Vision As a commission and through our TIF districts, we will enable, encourage and support redevelopment with the goal of becoming the most walkable community in the Pacific Northwest where people of all ages and abilities enjoy healthy and interconnected lives. Aspirational Continue to facilitate and promote opportunities for the development of affordable Goal housing, provide support for measures to reduce houselessness, provide support for equitable business development, and advance efforts toward improved walkability, equity, and connectivity within and between both TIF districts. Areas of Equitable Business Connectivity and Access Affordable Housing and Emphasis Development Houselessness Strategies Advocate for stakeholders Support city's goal to obtain Support for physical facilities in both TIF districts using funding to improve and take and additional shelter space data collection, analysis ownership of Hall Blvd. and services for persons and summary in the focus Support the city's grant experiencing houselessness. areas of:parking, safety, request for 72nd Ave. Development of additional unconventional business improvements. Look for shelter space and affordable opportunities, program other opportunities in the housing through a and service awareness, Triangle for pedestrian consciously-integrated and possible locations for improvements. programmatic response that business development. includes the city,public and private entities, and local housing nonprofits working effectively in Tigard to address that deficiency. TCAC supports Tigard's Strategic Priorities: • Set the standard for excellence in public service and customer experience. • Create a well-connected, attractive, and accessible pedestrian network. • Ensure that development and growth support the vision. Our plan will incorporate the principles of equity, environment, economy, engagement and excellence in our work as an advisory commission. The four goals of the City of Tigard: 1) Reduce Houselessness 2) Improve Climate 3) Enhance Community Safety and Access 4) Modernize and Improve City Services Prepared for TCAC by Amanda Sharp, ideate business consulting May 2 0 2 3 sharp . a m a n d a . k@ g m a i I c o m 1 1 P a g e Area of Equitable Business Development Emphasis Aspirational Safety and security for businesses in both TIF districts. Outreach programs for new Goals businesses seeking to open in Tigard.A plan for unconventional business opportunity/development and support and for identifying potential locations for these businesses.Awareness of the current and needed services and resources available for equitable development. New,diverse and active participation in forums to better understand business and development needs and goals. *SUPPORTS CITY GOALS 3,4 Strategies Advocate for stakeholders in all TIF districts using data collection, analysis and summary in the focus areas of:parking, safety, unconventional business opportunities,program and service awareness and possible locations for business development. Action Plans 1) Advocacy and Support for Business Owners in • Attend meetings of TDA and TIF Districts Tigard Chamber-and/or- a. Communication process such as a • Schedule listening sessions survey or listening session with a data Identify key questions and collection process to understand the record responses at each needs for safety,security and meeting attended.Track these beautification and report at TCAC meetings. b. Ongoing support with business • Ask business owners what owners' groups to continue would help: create a forum for conversations and communication in ongoing feedback by June 30, support of needs analysis 2024 * note overlap with item 3 c. TCAC member liaison attendance at below TDA meetings to listen and learn the business needs of TIF District business owners 2) Analysis and Summary of the Parking Survey • TCAC members create a report a. Formal review of parking survey and presentation including results with written summary recommendations for the future (by Dec 2024) b. Report-out to TCAC at a commission meeting with the analysis and potential next steps 3) Planning for Unconventional Business • Use available list, update Opportunities records with phone and contact a. Use community-generated list to information (by Dec 31, 2024) make calls to potential businesses • Work with city staff to create a b. Create a plan and script to contact by contact schedule for list (by phone with follow-up materials or June 30, 2024) calls • Create a script for calls and c. Create outreach program with collect resources and materials marketing materials and strategy for that can be used to forward to new TIF district businesses that can business owners as follow up. also be used to support recruitment (see item 3) Include basic of new businesses that the questions from Action plan#1, community wants items 1-2-3) (by June 30, 2024) See * above Prepared for TCAC by Amanda Sharp, ideate business consulting May 2 0 2 3 sharp . amanda . k@gmail . com2 I P a g e i. Identify locations that would • Offer support and request be viable for food carts or participation in future other unconventional conversations about businesses development in TIF districts/invite to meetings by Aug 30, 2024) • Meet to create a plan to identify potential locations by July 31, 2024 • Work with city staff, real estate professionals, etc. • Identify 3-5 possible sites by Dec 31, 2024 d. Develop an inventory/list of available . Collect resources and materials current programs, services and that can be used to forward to resources that support TIF district business owners as follow-up. businesses • Create an inventory and virtual i. Work with social media packet of business coordinator and economic development resources development manager to available and related to TCAC share marketing strategies support, and include other city and resources and economic development resources if available (by June 1, 2024) Prepared for TCAC by Amanda Sharp, ideate business consulting May 2 0 2 3 sharp . amanda . k@gmail . com3 I P a g e Area of Connectivity and Access Emphasis Aspirational Adequately-funded, improved Hall Blvd.,with Tigard ownership.Approved and activated Goals grant funding for 72"d Ave improvement projects. Improved environmental impact and connectivity for pedestrian and multi-modal improvements between and within TIF districts. *SUPPORTS CITY GOALS 2,3,4 Strategies Advocate for funding in all TIF districts through intentional, strategic support in the form of letters of support,position statements and advisory recommendations to decision-makers. Active support for acquisition of Hall Blvd. by City of Tigard. Perform ad-hoc research to identify walkability issues and potential solutions. Document and report on pertinent studies, such as the Red Rock Creek Trail Study, and legislative actions that may impact safety, pedestrian projects, walkability and wayfinding. Action Plans 1) Advocacy and Support for adequate • Provide letters of support, position connectivity, access, mobility and statements, quotes or other support for safety related funding: Hall Blvd and Hall Blvd. and 72nd Ave. funding 72nd Ave Improvement projects opportunities including public safety levy, a. Hall Blvd: Support adequate grants, etc. funding for Hall Blvd. o Describe community safety, access transfer of ownership and environmental impacts as b. 72nd Ave: Support for 72nd results of a funded project Ave. grant funding leading • Publicly support funding opportunities to enhanced community including public safety levy,grants, etc. safety and accessibility for through agendized report at TCAC or all modes of transportation other public meetings by Dec 31, 2024. • Identify key improvements needed using available data, qualitative analysis from c. Hall Blvd/72nd Ave: Support City staffers,and public input on the for safety improvements, services needed to achieve improved directional signage, connectivity and access; document and crosswalks, and generally record findings with recommendations to improved pedestrian access TCAC by Dec 31, 2024. to services 2) Active support for ownership of Hall • Report to TCAC with ongoing progress to Blvd. by the City of Tigard complete transfer(at least 2 by Dec 31, a. Support secure funding to 2024) complete transfer • Provide position statements to decision- makers regarding improvements to Hall Blvd.that impact TIF districts and TCAC goals(by Dec 31, 2024) • Meet with city staff to understand potential funding options (such as levies) that may also provide funding for safety measures, sidewalks, and pedestrian access(by Dec 31, 2024). Provide a report to at least one TCAC meeting(by Dec.31, 2024) Prepared for TCAC by Amanda Sharp, ideate business consulting May 2 0 2 3 sharp . amanda . k@gmail . com 4l P a g e 3) Ad-hoc (personal) research on • TCAC(connectivity and access members) walkability issues within and walk the TIF districts(by December 31, between two TIF districts 2024) a. Ask pedestrians and patrons • TCAC members create a report and of local business to identify present to TCAC including walkability issues recommendations for the future (by Dec. b. Note issues identified 31, 2024) c. Investigate status of grant • Presentation will include next steps application for Wall Street including suggestions on how to identify railroad crossing the specific improvements needed (by d. Report-out to TCAC at a Dec. 31, 2024) commission meeting with the analysis and potential next steps e. Coordinate with Tigard Transportation Advisory Committee on projects that can connect the two TIF districts 4) Planning for wayfinding, signage and • Use existing and recent survey results and technology solutions to encourage meet with City staff to request an multi-modal connectivity between inventory of requested recommendations and within TIF districts to improve wayfinding and connectivity a. Create an inventory of (by March 30, 2024) recommendations to • Work with city staff to create a prioritized improve paths for list of improvements (March 30, 2024) pedestrians, bikes, and • TCAC(connectivity and access members) mobility devices research possible web-based tools or b. Research possible apps that could be implemented in TIF technology tools that may districts. assist in wayfinding • Support reasonable and strategic budget c. Support funding within the requests for wayfinding/signage and web TCAC budget for wayfinding tools by attending Council meetings or consulting and signage affirming support at TCAC meetings. projects • Meet with interested TCAC members to d. Create a plan to support use create a plan for next steps in a strategic of web tools and to market outreach campaign and engage the community o Include City Staff, such as social to use new wayfinding and media coordinator and economic TIF districts paths, crossings, development manager bike lanes, etc. o Include business owners: bike i. Work with social shops,shoe stores, etc. media coordinator • Document plan and submit to TCAC and economic during a public meeting(by June 1, 2024) development • Continue support through 2024-25 TCAC manager to share Strategic Plan marketing strategies and resources Prepared for TCAC by Amanda Sharp, ideate business consulting May 2 0 2 3 sharp . a m a n d a . k@ g m a i I . c o m 5 I P a g e Area of Affordable Housing and Houselessness Emphasis Aspirational Measurable improvements in available shelter and services to relieve the humanitarian Goals crisis of houselessness. Measurable improvements in available affordable housing to address the deficit of rental housing inventory. Improved coordination of programs, providers and funding breaking down silos and inefficiencies. *SUPPORTS CITY GOALS 1,4 Strategies Attend, update, monitor, report and present with new and pertinent information from housing and houseless stakeholder groups. Coordinate and share information acting as liaisons to TCAC with local organizations to ensure information flow and coordination to improve efficiency. Develop suggested strategies and policies to address housing issues within the purview/scope of TCAC to City officials and decision makers. Support funding needs and development assistance available for shelter, transitional and affordable housing. Action Plans 1) Identify liaisons to attend regular • One representative to attend CHART third housing and houseless stakeholder Wednesday of every month with meetings. attendance recorded in meeting minutes. a. TCAC chair or alternate to attend (at least 3 meetings by Dec 31, 2024) CHART(Community Homeless • Designation of at least one representative Assessment& Response Team) from TCAC to attend service provider meetings meetings (by June 30, 2024) b. Designate liaisons to attend • Designation of at least one representative board meetings of affordable from TCAC to serve as point of contact for housing and community service other city and/or county housing and providers such as houseless program information c. Family Promise, Community coordination (by June 30, 2024) Partners for Affordable Housing, . Liaison/representatives to attend service Just Compassion Designate point provider meetings with report to TCAC as of contact for city or county verification of attendance (at least 3 by housing and houseless initiative Dec 31, 2024). information 2) Active participation and information • Liaison/representatives to attend service sharing from stakeholder provider meetings with report to TCAC as organizations (in item 1 above)to verification of attendance (at least 3 by TCAC Dec 31, 2024). a. Attend meetings • Report to TCAC with ongoing progress b. Provide Reports to TCAC regarding increased inventory of shelter c. Return feedback from TCAC to and housing(at least 2 by Dec 31, 2024) stakeholder groups o Engage TCAC for feedback to provide d. Include City staff at future meetings, including position statements or other forms of support or advice 3) Monitor data obtained by City • Quarterly or as available,share data pursuant to desired outcome: "Grow available to the City regarding impacts of Collaborative Partnerships" programmatic efforts (at least 1 by Dec a. Monitor data obtained by City 31, 2024) b. Arrange for presentations to • Connect with local experts,such as Kim TCAC by local, regional, and/or Ezell,to arrange an annual TCAC national experts presentation Prepared for TCAC by Amanda Sharp, ideate business consulting May 2 0 2 3 s h a rp . a m a n d a . k@ g m a i l . c o m Wage i. Work with City staff to schedule TCAC presentation 4) Consider providing development • Obtain current project budget from J.C. assistance including gap funding/documented at a. Just Compassion TCAC meeting i. Expand transitional • Obtain projection of anticipated revenues housing and wrap-around for City Center District for next 3 fiscal services years ii. Site, develop and partner to operate transitional • Acquire data on the estimated increase in housing with wrap-around services, shelter, or housing anticipated services in Tigard upon project completion- report to TCAC in minutes (by Dec 31, 2024) • Identify existing funding commitments, coordinate with Just Compassion on available potential funding • Recommend set-aside for next 3 fiscal years)++ • Work with CPAH designee,to obtain project budget and project schedule (by Sept 1, 2024) b. Community Partners for • Obtain a projection of anticipated Affordable Housing revenues for Triangle District for next 2 i. Woodland Hearth Project fiscal years, or reasonable timeframe. ii. Identify existing (See Goal 4, bullet 2+ commitments of the • Acquire data on the estimated increase in Triangle District's TIF services,shelter,or housing anticipated funds for next 2 fiscal upon project completion-report to TCAC years in minutes (by Dec 31, 2024) iii. Coordinate and make • Identify existing funding commitments, recommendation for coordinate with CPAH on available funding potential funding • Recommend set-aside for next 2 fiscal years [amount net of forgivable loan previously committed] See Goal 4, bullets 3-4++ Prepared for TCAC by Amanda Sharp, ideate business consulting May 2 0 2 3 sharp . amanda . k@gmail . com7 P a g e AIS-5433 7. Business Meeting Meeting Date: 03/05/2024 Length (in minutes): 20 Minutes Agenda Title: Downtown Wayfinding Plan Briefing Authored By: Sean Farrelly Presented By: Project Manager Danelle Hauther,Redevelopment Project Manager Sean Farrelly Item Type: Update,Discussion,Direct Staff Town Center Development Agency Public Hearing No Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE Downtown Wayfinding Plan briefing to the Board of the Town Center Development Agency. ACTION REQUESTED This is a briefing on the Downtown Wayfinding Plan,which is starting up.Teammates are available to answer questions. BACKGROUND INFORMATION The Town Center Development Agency(TCDA) has been focusing on the growth and redevelopment of Downtown Tigard.The City Center TIF Plan has the objectives to provide pedestrian-oriented streetscape improvements,including street trees, street furniture,planters and other landscape enhancements,that will create a safe and visually appealing destination for pedestrians" and to"implement pedestrian and bicycle system improvements that will enhance connectivity between downtown and surrounding residential and commercial areas." The TCDA is developing a Wayfinding System Plan to help orient visitors to Downtown,benefiting pedestrians and cyclists as they move throughout the city center and connect to surrounding trails,pathways,and neighborhoods. In addition to being functional,the wayfinding system will help strengthen the Downtown area's sense of place.The plan will include a branding concept that will build on the character of Downtown Tigard.The primary focus of the system will be pedestrians and cyclists;however,key intersections will include automobile-oriented signs. The project scope of work includes signage and branding concept development;a wayfinding design and branding design plan that includes a planning-level placement map showing the sign types, the number of signs and their locations within rights-of-way;and design of signs,including drawings with sufficient detail to obtain a future competitive fabrication bid.A team,led by Alta Planning+Design,will provide consulting on the project. Construction documentation,engineering and permitting, sign fabrication,sign installation,and construction administration are not included in this project and will be funded in a separate contract in FY 25-26. Dates of Previous and Potential Future Considerations This is the first time the issue has been presented to the Board. Public Involvement Impacts (Community,Budget,Policies and Plans/Strategic Connection) Tigard Strategic Plan 2020-2025 •Strategic Priority 2: Create a well-connected,attractive,and accessible pedestrian network •Objective 2.1: Create a well-connected pedestrian network that links all Tigard residents and businesses. •Objective 2.2:Tigard's pedestrian network is attractive, accessible, safe, and well maintained. •City Center TIF Plan •Goal 3: Downtown's transportation system should be multi-modal, connecting people,places and activities safely and conveniently. • Goal 4: Downtown's streetscape and public spaces should be pedestrian-friendly and not visually dominated by the automobile. ALTERNATIVES & RECOMMENDATION This is a briefing. ADDITIONAL RESOURCES Fiscal Impact Cost: $75,000 Budgeted (yes or no): Yes Where Budgeted (department/program): TCDA Additional Fiscal Notes: Funding for the manufacture and installation of the signage will be planned for FY25-26. Attachments Wayfinding project overview ppt I Ko v � � 0 � CI uio AI oD o *111N p gy .-i • O __., _ �M Fir V D * ,..•?‘ (-) glic , , 41,.- (D .., ,. Ado 1.4% ...,. , , „ /„.. . , D ...mainraimmy .: :r�^ CD -- - = . - VI AP 12. gm. CD lir ii= CD , iNCI O -13 3 co CD � dm. (0liel CD n k< Go ir;), & _ , tr . :: .i: _.1 / ,„ 4 1,,,,, ,......, _• 4,6440r, f.,._O tsz.,, , 4 '...1.1:ft. CD'T' L iriy, el',ill,*V* 'i,) 4 1 i# #i''' Aitip>2,1-. g.tle. ' 0? 11 ' , n,4.4 A* y•w i►+ .wt Ait ...it,. :,, , . -_, •• *. . .. .•,, : ri i m xi cra in- o D t71 10 II © 'v a P m = c, d w -,..1 O m a. 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