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City Council Packet - 12/17/2024
Ti CITY rd Tigard Workshop Meeting AGENDA TIGARD CITY COUNCIL &TOWN CENTER DEVELOPMENT AGENCY MEETING DATE DECEMBER 17, 2024- 5:00 p.m. Executive Session and 6:30 p.m. Workshop AND TIME: REVISED 12/16/24 to add second Executive Session. MEETING Meeting will be held in Town Hall, 13125 SW Hall Boulevard,Tigard. See PUBLIC LOCATION: 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. 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: Carol Krager at 503-718-2419 email: carolk@tigard-or.gov or Jesse Raymundo at 503-718-2417 email:jesse.raymundo@tigard-or.gov The TDD (Telecommunications Devices for the Deaf) number is 503-684-2772. VIEW LIVESTREAM ONLINE: https://www.tigard-or.gov/boxcast Workshop meetings will be shown live on Channel 21 at 7 p.m. The meeting will rebroadcast at the following times on Channel 28: • Every Monday at 1 p.m. • Every Wednesday at 3:30 a.m. • Every Thursday at 12 p.m. • Every Friday at 12:30 p.m. SEE ATTACHED AGENDA T' CITY OF Tigard Workshop Meeting g AGENDA TIGARD CITY COUNCIL&TOWN CENTER DEVELOPMENT AGENCY MEETING DATE AND TIME: DECEMBER 17, 2024- 6:30 p.m. Workshop REVISED 12/16/24 to add second Executive Session. MEETING LOCATION: Meeting will be held in Town Hall, 13125 SW Hall Boulevard, Tigard 5:00 p.m. 1. EXECUTIVE SESSION #1: The Tigard City Council will go into Executive Session, called under ORS 192.660 (2) (i) to review and evaluate the employment-related performance of a public officer. 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. 2. 5:30 p.m. estimated tiome EXECUTIVE SESSION #2: The Tigard City Council will go into Executive Session, called under ORS 192.660 (2) (a) to consider the employment of a public officer, employee, staff member or individual agent. 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. 3. WORKSHOP MEETING A. Call to Order— City Council, &Town Center Development Agency B. Roll Call C. Pledge of Allegiance D. Call to Council and Staff for Non-Agenda Items 4. PUBLIC COMMENT A. Follow-up to Previous Public Comment B. Public Comment—Written C. Public Comment— In Person D. Public Comment— Phone-In 5. METRO PRESENTATION ON HOMELESSNESS FUNDING 6:40 p.m. estimated time 6. COMMUNITY ORGANIZATION UPDATE 7:10 p.m. estimated time 7. TIGARD YOUTH ADVISORY COUNCIL ANNUAL UPDATE 7:30 p.m. estimated time 8. PRESENTATION OF EXTERNAL FINANCIAL AUDIT BY MOSS ADAMS 7:45 p.m. estimated time 9. TCDA: CONSIDERATION OF A DEVELOPMENT ASSISTANCE AGREEMENT 8:15 p.m. estimated time 10. COUNCIL LIAISON REPORTS 11. NON-AGENDA ITEMS 12. SUPPLEMENTAL QUESTIONS AND ANSWERS 13. ADJOURNMENT 9:00 p.m. estimated timer SUPPLEMENTAL PACKET FOR D ce. / ? oc,7 %/ (DATE OF MEETING) ., Weinzi. 8 •• a T I GARD P Written Public Comment For the December 17, 2024 Tigard City Council Meeting 1. Elise Shearer Supports Just Compassion and the City providing an assistance grant 2. Kevin Bates Tigard Downtown Alliance comment on grant to Just Compassion Tigard, OR. 97223 December 16, 2024 Dear members of the TCDA board; As a citizen, I am writing to support the non-profit organization Just Compassion as they seek a $200,000 grant from the City of Tigard for the construction of their new Resource Center, projected to cost about $4.5 million. In the past, they operated a shelter of 20 beds along with the Day Center. The new Resource Center will provide 60 emergency shelter beds as well as offering many other needed services. There is a recognized need for more emergency shelter beds, as we experienced last January during the severe winter weather storm. Just Compassion has been a good partner to the City of Tigard and Washington County. It is their work with houseless individuals, in co-operation with the City and emergency services, that has helped so many people in need. I have seen and heard the empathy of the TCDA board and City Council to the needs of the unhoused community in Tigard, by supporting an Affordable Housing Director and the establishment of the CHART organization. I thank you for your humanity and ask you to continue aiding and encouraging Just Compassion in their mission to serve members of our Tigard community. Sincerely, Elise Shearer TCAC committee member cc: Patty Lofgren — cc: Sean Farrelly— Sean@tigard-or.gov Carol Krager From: Emily Tritsch Sent: Tuesday, December 17, 2024 5:08 PM To: Steve Rymer; Carol Krager;Jesse Raymundo Cc: Sambo Kirkman Subject: FW: Based on a request from council president Yi to give TDA opinion on Just Compassion request. FYI Emily Tritsch Assistant City Manager for Investment& Infrastructure City of Tigard I City Management T• i g'a OF Phone: 503.616.1228 13125 SW Hall Boulevard, Tigard OR 97223 I tigard-or.gov From: Kevin Bates Sent:Tuesday, December 17, 2024 5:01 PM To:#Councilmail<councilmail@tigard-or.gov> Subject: Based on a request from council president Yi to give TDA opinion on Just Compassion request. I'm unfortunately unable to provide in-person comments on such short notice, but I can share the feedback I've received so far. Chris Sjolin,who sits on our board,shared the following: "Hey there, as a member of the TCAC, I can say that our Council approved goals for the dispersion of TIF funds 100%can and should go toward houseless initiatives" This seemed inconsistent with what you mentioned,so I double-checked, and he reaffirmed that it aligns with the TCAC goals. If there's a discrepancy, it may be worth verifying further, or I could be misunderstanding something. If the policy is being interpreted on a case-by-case basis, I encourage the Council to clarify and establish a consistent direction—whether TIF funds can or cannot be used for houseless initiatives.That's just my personal perspective. As for Just Compassion,we fully support their work and want to see them succeed. If they apply for funding and their project aligns with the established policies and criteria,we wouldn't oppose their request. However, businesses within our oversight haven't necessarily received the information needed to make a data-driven decision.Therefore,their opinions wouldn't necessarily reflect policy or authoritative criteria. Looking ahead, I hope the TDA and TCAC can refine their focus, build a stronger working relationship,and develop clear criteria and rubrics for allocating these funds.This would help ensure decisions are guided by policy rather than the dynamics of the boards involved, keeping individual agendas in check. Dr. Kevin Bates Owner-Symposium Coffee 1 AGENDA ITEM NO. 4.C. - PUBLIC COMMENT DATE: December 17, 2024 (T imited 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 Po ) Cij4'\ City i C (0 Please spell your name as it sounds if it will help the pr- iding officer \i pronounce: ), `I�3\1 5 I �, Optional: If you want a response from staff,please leave your contact information: Check one: Phone or email For Against 0 Neutral 0 NameE PA-l City 4/)06 5 Nb it,Ths vo S Please spell your name as it sounds if it will help the presiding officer ST d N CEiCrol c `t'tf pronounce: (e_Co C '1 t'1 414 nieett U rdcte. Optional: If you want a response from staff,please leave your contact information: Check o . Phone or email For Against 0 Neutral 0 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 0 Against 0 Neutral 0 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 0 Against ❑ Neutral 0 AIS-5694 5. Workshop Meeting Meeting Date: 12/17/2024 Length (in minutes): 30 Minutes Agenda Title: Metro Presentation on Homelessness Funding Authored By: Kim Ezell Presented By: Lynn Peterson, Metro Council President; Gerritt Rosenthal, Metro Councilor, District 3; Val Galstad, Director of Strategic Operations Item Type: Update, Discussion, Direct Staff Public Hearing No Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE Presentation from Metro about the future of regional housing funding, including the Supportive Housing Services (SHS) program fund ACTION REQUESTED No action requested of Council. BACKGROUND INFORMATION From Metro Regional Housing Funding Document-- Collective action on housing and homelessness In 2018, voters across Clackamas, Multnomah, and Washington counties approved bond funding to build affordable housing throughout the region. Today, nearly 5,000 affordable homes have been created or are in development. Meanwhile, implementation of regional Supportive Housing Services funding has made a big difference in thousands of lives— helping people find stable housing and preventing evictions across the region. Yet the need remains. Homelessness and the rising gap between incomes and housing costs continues to be a daily struggle for people and families across greater Portland. And as the crisis continues, Metro affordable housing bond and Supportive Housing Services are both due to see their funding expire within a few years. Conversation on future regional housing funding Throughout 2024, Metro has hosted a wide-ranging conversation on how the region can keep working together to create affordable homes as well as providing services that keep people housed. Hundreds of community members, housing and service providers, local elected officials and staff, and others with direct experience have shared their thoughts about priorities, opportunities and lessons learned in the implementation of regional funding for affordable housing and supportive services. In these conversations, most stakeholders, community members and voters in the region agreed: • Keep making progress. Addressing the homelessness and housing crisis needs continued public investment— now and into the future. •A full range of solutions. Affordable housing, supportive services and rent assistance are all needed to address this crisis. •An open door. Accessing affordable housing and housing services should be easier for those who need it. •All hands on deck. All levels of government, community partners, housing and service providers, and leaders from all over the region need to keep working together to address the need. •Showing our work. We need better ways to ensure investments are meeting the need, benefiting communities and making good use of taxpayer dollars. • Listen to those who know. It's important for leaders to hear directly from community members and people who experience housing instability. ALTERNATIVES & RECOMMENDATION ADDITIONAL RESOURCES Attachments Future Housing Fact Sheet Housing Funding Presentation AK W November 2024 ''�'� Future regional housing funding Metro Metro is convening regional leaders and community members to determine how we can continue to work together to create affordable homes and provide services that keep people housed. Collective action on housing and homelessness In 2018,voters across Clackamas,Multnomah and Washington counties approved bond funding to build affordable housing throughout the region.Today,nearly 5,000 affordable homes have been created or are in development. Meanwhile,implementation of regional Supportive Housing Services funding has made a big difference in thousands of lives -helping people find stable housing and preventing evictions across the region. Yet the need remains. Homelessness and the rising gap between incomes and housing costs continues to be a daily struggle for people and families across greater Portland. And as the crisis continues,Metro affordable housing bond and Supportive Housing Services are both due to see their funding expire within a few years. Conversation on future regional housing funding Throughout 2024, Metro has hosted a wide-ranging conversation on how the region can keep working together to create affordable homes as well as providing services that keep people housed. Hundreds of community members,housing and service providers,local elected officials and staff,and others with direct experience have shared their thoughts about priorities, opportunities and lessons learned in the implementation of regional funding for affordable housing and supportive services. In these conversations most stakeholders, community members and voters in the region agreed: • Keep making progress.Addressing the homelessness and housing crisis needs continued public investment-now and into the future. • A full range of solutions.Affordable housing,supportive services and rent assistance are all needed to address this crisis. • An open door.Accessing affordable housing and housing services should be easier for those who need it. • All hands on deck.All levels of government, community partners,housing and service providers,and leaders from all over the region need to keep working together to address the need. • Showing our work.We need better ways to ensure investments are meeting the need,benefitting communities and making good use of taxpayer dollars. • Listen to those who know.It's important for leaders to hear directly from community members and people who experience housing instability. oregonmetro.gov 1 Metro Council direction On Oct. 17,the Metro Council adopted a resolution providing direction on principles and policies to implement an integrated and expanded regional funding program for affordable housing and supportive housing services. Potential Policy Options What we heard Current Proposed Actions SuccessfuiMetro housing bond •I Revenue Use nding down;SHS can only fund W� Expand SHS investments to services �� include affordable housing Both housing and ongoing services/rent ass stance are needed to help people C ties have unique needs andCreate a program to fund city escape homelessness opportun.ties but do not currently investments to address eceive SHS funds LLL 111 homelessness SHS income taxes are expected to Prioritize ongoing services be highly volatile and rent assistance for the most stable funding Tax Policy People and communities depend on funding to stay 5H5 tax expires in 2031,but the Extend SHS high-earner and housed.Funding will be need for housing and services will business income taxes for 20 needed for the long-term, continue years but the region needs to be strategic in finding and using funding A broad coalition built SHS and Adjust personal tax rate for the bond;continued support isI longevity;index threshold to I critical keep focus on higher-earners Equity SHS and Metro housing bond were s' Carry forward equity values; built with equity as a key value i w create inclusive oversight ' Housing and 3. structure with a diversity of voices homelessness affect us all,but especially communities of color, There are limited ways for Improve opportunities for older adults and low- community to inform SHS spending « community members and people income communities decisions today PI with lived experience to provide input Current oversight structures have • • Create a single oversight and Transparency& unclear roles and overlapping f-,5=`-4 planning committee to strategically Accountability authorities guide investments We've learned a tot in the implementation of SH5There is a need for strange Develop a regional action plan with and bond that can beaccountability mechanisms and key performance indicators and � applied moving forward evidence of impact I�j priorities that partners are required to advance in local plans Next steps The Metro Council seeks to act with responsiveness,accountability and collaboration to ensure that homelessness in the greater Portland region is as rare,brief and nonrecurring as possible.Several potential policy actions outlined above are in final discussion with partners and stakeholders.The Metro Council will consider a final policy package,including a potential ballot measure referral,this winter. 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O DO N MI(D n Q v) r., C 0_ e-r VI -1 O CD c) N. v n O O CM < El fD rD _. = = CD 0 CD AIS-5696 6. Workshop Meeting Meeting Date: 12/17/2024 Length (in minutes): 20 Minutes Agenda Title: Community Organization Update Authored By: Lindsay Bartholomew Presented By: Item Type: Update, Discussion, Direct Staff Public Hearing No Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE Community organizations serving the Tigard area are invited to give presentations before Council and share their program offerings and a brief overview of what they provide for the community. This month we are featuring Catalyst Partnerships and St. Vincent de Paul Severe Weather Supports (SWS). ACTION REQUESTED This is an update only. No action is requested. BACKGROUND INFORMATION Catalyst Partnerships - Presenter: Naomi Federiuk The City of Tigard awarded this organization $3,900 for Social Services. Catalyst Partnerships brings together donated resources and caring volunteers to do free critical construction repairs for elderly, disabled, and low-income homeowners who are unable to address needed repairs. Critical home repairs are often costly and can disproportionately affect low-income households. By providing these services for free, Catalyst Partnerships helps bridge the gap between different socioeconomic groups, ensuring that everyone can live in a safe and well maintained home. In addition, by supporting under-resourced homeowners and mobilizing thousands of local volunteers, Catalyst Partnerships contributes to the overall well-being of the Tigard community, fostering a sense of equity and solidarity among all types of residents. St. Vincent de Paul Severe Weather Supports (SWS) - Presenter: Carol Herron and Lori Kellogg The City of Tigard awarded this organization $4,900 for Social Services. The mission of St Vincent de Paul Severe Weather Supports is to serve houseless adults by providing life-saving supplies and connecting them with essential resources in their pursuit of housing. This is accomplished through personal connections and sustained relationships that honor the dignity of every individual in the spirit of social justice and equity, without regard to race, age, gender, sexual orientation, disability or religion. The low-barrier program is a bridge that makes the resources of our community available to the often invisible residents of lowest income, who are least able to advocate for themselves. We provide both an immediate safety net in a setting of social inclusion, and connections to a path out of houselessness toward stable housing. ALTERNATIVES & RECOMMENDATION N/A ADDITIONAL RESOURCES N/A AIS-5659 7. Workshop Meeting Meeting Date: 12/17/2024 Length (in minutes): 15 Minutes Agenda Title: Tigard Youth Advisory Council Annual Update Authored By: Alexandra Richardson Presented By: Alex Richardson, Management Analyst; TYAC Interim President Madi Vogel; TYAC Member Kim Vargas Item Type: Update, Discussion, Direct Staff Public Hearing No Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE Tigard Youth Advisory Council's mission is to empower, improve, and connect the lives of Tigard youth. TYAC is an advisory board to the Tigard City Council and is vital to the community—as a connection point to the local youth voice, as an engaged cadre of volunteers, and as a group of emerging community leaders. TYAC is currently comprised of ten members and is supported by Council Liaison Shriya Myneni and Teammate Liaison, Management Analyst Alex Richardson. TYAC members attend public, private, and home schools and represent grades 7 through 12. Teammate Liaison Alex Richardson will introduce this agenda item, and Interim President Madi Vogel and member Kim Vargas will present the update. The presentation will cover the previous year's accomplishments and forecast the next six months of TYAC activity. For the 2024-2025 year, members have chosen to focus on houselessness and climate action in alignment with current City Council goals, as well as youth mental health. TYAC Guiding Principles: Through empowerment, young people know they are valued by the adults in their community. Through involvement, young people serve useful roles in their school, family and community. Through volunteering, young people provide service to others in the community. Through respect, young people feel safe in their community. ACTION REQUESTED No action is requested. This update is informational only. BACKGROUND INFORMATION Dates of Previous and Potential Future Considerations The last general annual TYAC update to Council was in November 2022. TYAC members also shared with Council following the 2024 National League of Cities Congressional Cities Conference in April 2024. Tigard City Council appointed/reappointed nine TYAC members on October 15, 2024. Public Involvement TYAC recruits new members throughout the summer and fall at community and school events. Most TYAC-led events are open to the community, and members share event invitations with their school communities. Impacts (Community, Budget, Policies and Plans/Strategic Connection) TYAC's work aligns with the Tigard Community Promise (Equity, Engagement, and Excellence), Council Goals (Reduce Houselessness, Address Climate Change, and Enhance Community Safety &Access), and Strategic Priorities 1.4 (Enhance community awareness and engagement with City activities and services). ALTERNATIVES & RECOMMENDATION ADDITIONAL RESOURCES Attachments PowerPoint Presentation -TYAC Update iv illa) (-) 0 • m iv to ra n). -0 riiiL .....,, 0_ ...:, cp N.) .,... 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CO c rn 0 N N 0 Mt0 • n SD ellV) . n k O rt D0 co —1 CD v) O� D CD n (.1110 cp 0 F A 3 1 . oil! E it i. Pr i 611 .:. 4 C A . • H III .. I Al Z" CD .,, P. 44 INV I :• . .. , • /:.' 1:8 Al S.,.. - - k i sw aniii° D ••• • .., I c ,, I (it; IIIL 11.1r1...WINN Ii gig. ill I Wir of .., AIS-5625 8. Workshop Meeting Meeting Date: 12/17/2024 Length (in minutes): 30 Minutes Agenda Title: Presentation of External Financial Audit by Moss Adams Authored By: Keith McClung Presented By: Assistant Finance Director McClung 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 of Tigard and the Tigard Town Center Development Agency (TCDA) for the fiscal year ending June 30, 2024. The presentation will include recommendations for opportunities for improvement noted by Moss Adams during the course of the audit. Moss Adams, the city's external audit firm, performed an audit of the city's financial operations for fiscal year ending June 30, 2024. They reported their findings to the Audit Committee on December 12, 2024. Their reports are included in the city's Comprehensive Financial Report and the TCDA financial report, which will be finalized and delivered to the Council on December 17, 2024. 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, 2024. They reported their findings to the Audit Committee on December 12, 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 Moss Adams Presentation 12.17.24 d 0 l 1 (,) a,W cri O K CD fes4 N 0 NI 1111 ID O v N Cl,1111 • ¢' CM P CA x x I + x x I + x x II '` + N X I + j i ' N X I + N X F I + N X I 1 ` + N X I + N X I + N X I't I + N X I + X I + X ' X I + N X I I i + N X I + N X I + N X i i iiit . - • ., j{I I + N X 9 I + N X I + X I + N X I + N X I + 4 N X I + N X I + N X I + N X I + X I + N X { 3 I + N X I .A,. - + N X I + N X I + N X I + N X I + iN X i + X X I + N X I NXI +X X I + X X + X xI + X X I + X• I + \ 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 + X I + X I + N X I + N X I + N X I + N X I + N X I + N X I + A N X I + N X int, CyrC CD O` Sri W N t-' E b °• r CD CD '� 0 oM d "" ct 20 5• (E) 't o C • 7d ripb 0 ,r9 ora Pa "d 31) 0 o• O . 0-1 CD a 0 EZ c4 ag Pa m m o.3 - 0 1f n m MI Q a. .2 Z p,.... K m m . - nri m m El', F C'. j:,' libi.' , , ---1 1-1—1 ED, Z -f. 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CITY OF �� Tigard .c___,....,„ ..._ , , _ ____r 13125 SW Hall Boulevard ,:i., tee_ - . _ Tigard, OR 97223 4.. 4 n .; w www.tigard-or.gov eli mr • CITY OF ar City of Tigard, Oregon Annual Comprehensive Financial Report For the fiscal year ended, June 30, 2024 Prepared by: City of Tigard - Finance Department No content appears on this page by design. City of Tigard, Oregon Table of Contents Introductory Section Letter of Transmittal 1 Certificate of Achievement for Excellence in Financial Reporting 8 Organization Chart 9 Principal Officials 10 Financial Section Report of Independent Auditors 13 Management's Discussion and Analysis 19 Basic Financial Statements: Government-Wide Financial Statements Statement of Net Position 37 Statement of Activities 38 Fund Financial Statements Major Governmental Funds: Balance Sheet 39 Reconciliation of the Balance Sheet to the Statement of Net Position 40 Statement of Revenues, Expenditures, and Changes in Fund Balance 41 Reconciliation of the Statement of Revenues,Expenditures,and Changes in Fund Balance to the Statement of Activities 42 Proprietary Funds: Statement of Net Position 43 Statement of Revenues, Expenses,and Changes in Fund Net Position 44 Statement of Cash Flows 45 Notes to Basic Financial Statements 47 Required Supplementary Information: Schedules of Revenues and Expenditures—Budget and Actual: General Fund 106 Schedule of the City's Proportionate Share of the Net Pension Liability(Asset) 107 Schedule of City's Contributions—Oregon Public Employees Retirement System 109 Schedule of the Changes in the City's Total OPEB Liability and Related Ratios—Implicit Rate Subsidy Plan 111 Schedule of the City's Proportionate Share of the Net OPEB Liability(Asset)—Oregon Public Employees Retirement System, Retirement Health Insurance Account 112 Schedule of the City's Contributions—Oregon Public Employees Retirement System, Retirement Health Insurance Account 113 Other Supplementary Information: Major Fund Schedules of Revenues and Expenditures—Budget and Actual: Facilities Capital Projects 115 Nonmajor Governmental Funds Combining Statements: Combining Balance Sheet 116 Combining Statement of Revenues, Expenditures,and Changes in Fund Balances 117 Special Revenue Funds: Combining Balance Sheet—Nonmajor Special Revenue Funds 119 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 121 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 123 City Gas Tax Fund 124 Transportation Network Company Fee Fund 125 Transient Lodging Tax Fund 126 Construction Excise Tax Fund 127 Electrical Inspection Fund 128 Building Fund 129 Criminal Forfeiture Fund 130 Urban Forestry Fund 131 Parks Utility Fund 132 Police Levy Fund 133 Library Fund 134 Pandemic Relief Fund 135 Debt Service Funds: Combining Balance Sheet—Nonmajor Debt Service Funds 137 Combining Statement of Revenues, Expenditures,and Changes in Fund Balance—Nonmajor Debt Service Funds 138 Schedules of Revenues and Expenditures—Budget and Actual Bancroft Bond Debt Service Fund 139 General Obligation Debt Service Fund 140 City Center Urban Renewal Debt Service Fund 141 Tigard Triangle Debt Service Fund 142 Capital Projects Funds: Combining Balance Sheet—Nonmajor Capital Projects Funds 144 Combining Statement of Revenues, Expenditures and Changes in Fund Balance—Nonmajor Capital Projects Funds 146 Schedule of Revenues and Expenditures—Budget and Actual: Transportation Development Tax Fund 148 Underground Utility Fund 149 Street Maintenance Fee Fund 150 Transportation SDC Fund 151 Parks Capital Fund 152 Parks Bond Fund 153 Parks SDC Fund 154 Transportation CIP Fund 155 City Center Capital Improvements Fund 156 Tigard Triangle Capital Improvements Fund 157 Proprietary Funds: Enterprise Funds: Schedules of Revenues and Expenditures—Budget and Actual: Sanitary Sewer Fund 159 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses—Sanitary Sewer Fund 160 Stormwater Fund 161 Water Quality and Quantity Fund 162 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses—Stormwater Funds 163 Water Fund 164 Water SDC Fund 165 City of Tigard, Oregon Table of Contents,continued Financial Section,Continued Other Supplementary Information,Continued: Water CIP Fund 166 Water Debt Service Fund 167 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses—Water Funds 168 Reconciliation of Budgetary Fund Balance to Generally Accepted Accounting Principles Basis Net Position 169 Internal Service Funds: Combining Statement of Net Position 171 Combining Statement of Revenues, Expenses,and Changes in Fund Net Position 173 Combining Statement of Cash Flows 175 Schedules of Revenues and Expenditures—Budget and Actual: Central Service Fund 177 Information Technology Replacement Fund 178 Facilities Replacement Fund 179 Public Works Administration Fund 180 Public Works Engineering Fund 181 Fleet/Property Management Fund 182 Fleet/Vehicle Replacement Fund 183 Insurance Fund 184 Other Schedules: Schedule of Bond and Bond Interest Transactions 186 Schedule of Future Debt Service Requirements of: General Obligation Bonds 187 Full Faith and Credit Bonds 188 Water Revenue Bonds 189 Safe Drinking Water Revolving Loan Funds 190 Urban Renewal and Redevelopment Bonds 191 Water Fund 192 Statistical Section Net Position by Component 194 Changes in Net Position 196 Fund Balances of Governmental Funds 200 Changes in Fund Balances of Governmental Funds 202 Governmental and Business-Type Revenues 204 Governmental and Business-Type Expenses by Function 206 General Governmental Revenues by Sources 207 General Governmental Expenditures by Function 209 Market Value and Assessed Value of Taxable Property 210 Property Tax Rates—Direct and Overlapping Governments 211 Principal Property Taxpayers 213 Property Tax Levies and Collections 214 Special Assessment Collections 215 Ratio of Annual Debt Service Expenditures for Long-Term Debt to Total Governmental Expenditures 216 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita 217 Computation of Direct and Overlapping Debt 218 Computation of Legal Debt Margin 219 City of Tigard, Oregon Table of Contents,continued Statistical Section,Continued Ratio of Debt by Type 221 Computation of Water Revenue Bonds Debt Coverage 223 Demographics Statistics 225 Principal Employers 226 Property Value and Construction 227 Full-time Equivalent City Government Employees by Function 228 Operating Indicators by Function/Program 229 Capital Assets Statistics by Function 231 Miscellaneous Statistical Data 232 Audit Comments and Disclosure Requirements Report of Independent Auditors Required by Oregon State Regulations 235 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 237 Introductory Section No content appears on this page by design. ak t. Tigard December 13,2024 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, 2024, 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, 2024, 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, 2024, 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 30,2024,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 1 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 fr The City of Tigard is located in southeast Washington County, 9 miles from r downtown Portland, Oregon. The city is included in the Metro urban growth rig?rd boundary, and Tigard's neighboring cities include Beaverton, Lake Oswego, :4 Tualatin, Durham,Portland,and King City.State Highway 99W,runs north and Oregon south through the eastern portion of the city as a major commuter corridor j to the City of Portland. Interstate 5 and Highway 217 connect Tigard's " '; • r ,, 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 56,000. The city can extend its corporate limits by annexation,which is permitted by state statute.Since 2012,the city has annexed over 500 acres of land west of the city that was largely farmland. Planning for development in that area, known as River Terrace, began in earnest during fiscal year 2014 and continued in fiscal year 2015 with the adoption of the River Terrace Community Plan, a long-range plan to guide public and private investment and development to aid with transition from farmland to residential land over the next several decades. Throughout fiscal year 2024, permitting and construction y'ae q 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 A 15,in 2030. Upon completion, River Terrace is expected to ' = _ be home to around 6,500 to 8,000 new residents. More Beaverton information about Tigard's newest neighborhood is on the city's website at: https://www.tigard-or.gov/your- government/departments/community- development/planning/projects/river-terrace. Tigard* The city is governed by an elected mayor and four council � Lake members who comprise the city council.The city's charter � Oswego N. established the Council-Manager form of government. 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 205 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 2 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 following three-year fiscal periods past the pandemic and a slight increase for the FY ended June 30, 2024.Tigard's most current unemployment rate is 3.4 percent as of June 2024, which is 0.5 percent lower than the Portland Metro area and 0.7 percent lower than the State of Oregon. Unemployment trends 12.0% +: 10.0°% cc c ▪ 8.0% 6.0% T o 4.0% a 2.0% • 0.0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -United States 5.5% 4.8% 3.7% 4.0% 4.0% 11.6% 5.2% 3.5% 3.6% 4.1% -State of Oregon 5.3% 4.9% 4.3% 4.0% 3.7% 11.1% 5.9% 3.6% 3.5% 4.1% Portland Metro 5.4% 4.9% 3.7% 3.6% 4.0% 11.5% 5.4% 3.5% 3.3% 3.9% Washington County 5.0% 4.7% 3.5% 3.5% 3.4% 10.4% 4.4% 3.0% 3.2% 3.5% City of Tigard 4.5% 4.4% 3.5% 3.5% 3.4% 10.8% 4.4% 3.0% 3.0% 3.4% • Fiscal year 3 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. 2024 Summary of Local Statistics Number of businesses 3,360 Median household income $101,354 Median home value $599,985 General fund permanent tax rate $2.5131 per$1,000 of assessed value Total assessed value(est. 2023/2024) $8,318,226,162 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 2024—2030 CIP can be found online at https://www.tigard- or.gov/your-government/departments/public-works/capital-improvement-projects. 4 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 2024 budget document includes the city's financial policies noted in the appendix starting on page 454. The policies can be found online at: https://publicrecords.tigard-or.gov/Public/DocView.aspx?id=1131358&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. 5 • 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/council/council-goals. 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 the city's major software systems. The implementation of the finance and payroll system was completed in the current fiscal year. Other modules such as utility billing, permitting,and asset management,are expected to be completed through fiscal year 2025. In February 2023, the urban growth boundary was expanded in the River Terrace area by an additional 500 acres to the west and south of the original River Terrace area. Planning for the area is expected to continue through fiscal year 2026 with the goal of transitioning largely farmland to residential land. This new area referred to as River Terrace 2.0, is envisioned to accommodate 3,000 to 4,500 new units of housing and construction. 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. In February 2024,the city acquired 9.5 acres of land for$14 million with the plan to construct a new Public Works and Police Department facility. The project's goal is to modernize the city's facilities to meet the demands of the growing population and establish a resilient structure for an Emergency Operations Center. Lastly, in May 2024, 78%of the voters approved a public safety renewal levy that will continue to fund a levy of $0.29/$1,000 that was first approved by voters in 2020 for another five years. The levy retains funding for 8 Patrol Police Officers, 1 School Resource Officer, 1 Property & Evidence Specialist, and 1 Records Specialist. 6 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, 2023. This was the 38th 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 2024. This was the 36th 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 2025 budget document and believes that it meets the Distinguished Budget Presentation Award's requirements. 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, Steve Rymer Eric Kang City Manager Finance Director 7 G 0 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, 2023 C444044. P- 20ze-mAla Executive Director/CEO 8 INTERNAL STRUCTURE & ORGANIZATIONAL CHART Tigard Community Mayor&City Councilors City Attorney sistant City Assistant City Manager Manager Police Chief City Recorder ngagement& Investment& Innovation Infrastructure Information Community Technology Development The Tigard Fleet&Facilities Public Library City Management Public Works Finance _ Design & Communications Human Resources Municipal Court &Risk Management Management — Analysts& Administration City of Tigard, Oregon Principal Officials as of June 30,2024 Elected Officials Name Term Expires Mayor Heidi Lueb December 31, 2026 Councilor Jeanette Shaw December 31, 2024 Councilor Maureen Wolf December 31, 2024 CouncilorYi-Kang Hu December 31, 2026 Vacant 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 10 Financial Section No content appears on this page by design. 12 ® 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, 2024, 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 as of June 30, 2024, 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 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. Emphasis of Matter—Change in Accounting Principle As discussed in Note 1 to the financial statements, in 2024,the City adopted the Governmental Accounting Standards Board's new accounting guidance Statement No. 100,Accounting Changes and Error Corrections. Our opinions are not modified with respect to this matter. 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. 13 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. 14 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's basic financial statements.The combining and individual nonmajor fund financial statements, budgetary schedules, and other financial schedules on pages 127 through 213 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the combining and individual nonmajor fund financial statements, budgetary schedules, and other financial schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report.The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed,we conclude that an uncorrected material misstatement of the other information exists,we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued our report dated December 16, 2024, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts,and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing,and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance.That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. 15 Other Reporting Required by Minimum Standards for Audits of Oregon Municipal Corporations In accordance with the Minimum Standards for Audits of Oregon Municipal Corporations, we have also issued our report dated December 16, 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. Keith Simovic, Partner for Moss Adams LLP Portland, Oregon December 16,2024 16 Management's Discussion and Analysis 17 No content appears on this page by design. 18 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, 2024. 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, 2024, by $647,096,717 (net position). Of this amount, $50,512,249 is restricted for transportation construction, maintenance and utility undergrounding, $11,870,847 is restricted for park development and improvements, $3,970,957 is restricted for affordable housing, $1,830,494 is restricted for tourism, $16,475,167 is restricted for water system construction and improvements, $10,098,035 is restricted for debt service, $14,284,990 is restricted for building development plan review and inspection, $648,561 is restricted for library capital improvements, $6,318,674 is restricted for urban development and improvements, $3,641,211 is restricted for law enforcement,and $25,136 is restricted for other post-employment benefits. $120,907,595 is unrestricted net position may be used to meet the city's ongoing obligations to citizens and creditors and $406,512,801 is for net investment in capital assets. • The city's total net position had a net increase of $50,478,395 or 8.5 percent from the June 30, 2023 net position. Governmental activities net position increased by$45,967,420,or 12.2 percent. The business-type activities net position increased by$4,510,975 or 2.1 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 $146,363,549, an increase of $16,215,805 or 12.5 percent from fiscal year 2023. Of the combined ending governmental fund balances, a deficit of$1,438,903 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$5,121,172. • The city's total debt decreased by$4,393,850 or 3.1 percent from fiscal year 2023. 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. 19 City of Tigard, Oregon Management's Discussion and Analysis 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. 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. 20 City of Tigard, Oregon Management's Discussion and Analysis 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. 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 29 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 two major funds: the General Fund and the Facilities Capital Projects 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 System Development Charges, Water Construction in Progress 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. 21 City of Tigard, Oregon Management's Discussion and Analysis 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. 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$647,096,717 at June 30, 2024. The largest portion of the city's net position, approximately 62.8 percent, is its investment in capital assets (e.g., land, construction in progress, buildings, roads, sewers, stormwater facilities, etc.), net of accumulated depreciation and any related debt used to acquire those assets that is still outstanding. The city uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the city's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since capital assets themselves cannot be used to liquidate these liabilities. The city's restricted net position in the amount of$119,676,321 or approximately 18.5 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 $120,907,595 or approximately 18.7 percent of total net position. At the end of the current year, the city is able to report positive balances in all categories of net position for governmental and business-type activities. Total net position increased by$50,478,395 or 8.5 percent during the current fiscal year. Total assets for governmental activities increased by approximately $46.2 million, or approximately 10.9 percent. For business-type activities, total assets declined $1.8 million or approximately .5 percent. Noteworthy 22 City of Tigard, Oregon Management's Discussion and Analysis changes included an increase in capital assets by approximately$49.7 million or 10.2 percent, due to the purchase of land for $14.0 million, increased investment in infrastructure of $9.3 million, increased investment in land improvements$1.8 million,and the capitalized Tyler Technologies project,$4.3 million. Construction in progress also increased $28.3 million related to several large projects including the Cach Reservoir/pump station $21.7 million, and the Aquifer Storage/Recovery Well, $2.8 million and various smaller projects totaling$3.8 million. Governmental activities liabilities increased by approximately $3.95 million or 8.7 percent. Noteworthy changes include an increase in net pension liability and other post-employment benefits. Business-type activities total assets declined by approximately $1.8 million or .5 percent over the prior year. Cash and investments decreased by approximately$21.8 million or 30.0 percent over the prior year. This decrease was offset by an increase in capital assets of$21.5 million or 9.1 percent. Total long-term debt for business-type activities decreased by approximately $3.9 million or 3.3 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 Activities Business-Type Activities Totals 2024 2023 2024 2023 2024 2023 Assets Current and other assets $189,589,356 $171,646,337 $ 85,273,211 $108,563,543 $274,862,567 $280,209,880 Capital assets,net 279,313,634 251,098,641 258,863,721 237,348,597 538,177,355 488,447,238 Total assets 468,902,990 422,744,978 344,136,932 345,912,140 813,039,922 768,657,118 Deferred outflows of resources 5,457,163 4,136,149 3,398,528 3,544,380 8,855,691 7,680,529 Liabilities Current liabilities 16,748,573 14,779,964 11,450,666 15,226,127 28,199,239 30,006,091 Long-term liabilities 32,680,446 30,688,690 112,096,930 114,747,103 144,777,376 145,435,793 Total liabilities 49,429,019 45,468,654 123,547,596 129,973,230 172,976,615 16,093,977 Deferred inflows of resources 1,792,279 4,241,038 30,002 36,403 1,822,281 4,277,441 Net position Net investment in capital assets 263,032,737 234,640,513 143,480,064 117,608,706 406,512,801 352,249,219 Restricted 100,543,247 84,143,756 19,133,074 20,143,080 119,676,321 104,286,836 Unrestricted 59,562,871 58,387,166 61,344,724 81,695,101 120,907,595 140,082,267 Total net position $423,138,855 $377,171,435 $223,957,862 $219,446,887 $647,096,717 $596,618,322 23 City of Tigard, Oregon Management's Discussion and Analysis Total Net Position June 30,2024 Restricted 18.5% Unrestricted 18.7 Net investment in capital assets 62.8% City of Tigard—Summary of Changes in Net Position Governmental Activities Business-Type Activities Totals 2024 2023 2024 2023 2024 2023 Revenues Program revenues: Fees,fines and charges for services $ 27,647,058 $ 16,648,049 $ 37,891,142 $ 36,538,333 $ 65,538,200 $ 53,186,382 Operating grants and contributions 10,321,335 11,630,053 - - 10,321,335 11,630,053 Capital grants and contributions 15,981,565 11,972,303 4,079,897 4,436,172 20,061,462 16,408,475 General revenues Property taxes 27,497,643 26,011,521 - - 27,497,643 26,011,521 Franchise fees 8,199,638 7,765,651 - - 8,199,638 7,765,651 Unrestricted intergovernmental revenues 4,660,743 3,856,820 - - 4,660,743 3,856,820 Interest and investment earnings 7,733,071 4,654,377 4,422,055 2,578,236 12,155,126 7,232,613 Miscellaneous revenues 680,546 319,841 117,466 141,451 798,012 461,292 Total revenues 102,721,599 82,858,615 46,510,560 43,694,192 149,232,159 126,552,807 Expenses Community services 34,162,742 31,597,313 - - 34,162,742 31,597,313 Public works 23,501,283 14,589,053 - - 23,501,283 14,589,053 Community development 8,507,543 8,905,011 - - 8,507,543 8,905,011 Policy and administration 2,754,893 1,176,827 - - 2,754,893 1,176,827 Interest on long-term debt 625,540 604,699 - - 625,540 604,699 Sanitary sewer - - 3,877,569 3,406,337 3,877,569 3,406,337 Stormwater - - 4,811,078 4,376,231 4,811,078 4,376,231 Water - - 20,513,116 19,051,074 20,513,116 19,051,074 Total expenses 69,552,001 56,872,903 29,201,763 26,833,642 98,753,764 83,706,545 Revenues over expenses 33,169,598 25,985,712 17,308,797 16,860,550 50,478,395 42,846,262 Transfers in(out) 12,797,822 4,142,434 (12,797,822) (4,142,434) - - Change in net position 45,967,420 30,128,146 4,510,975 12,718,116 50,478,395 42,846,262 Netposition-beginning 377,171,435 347,043,289 219,446,887 206,728,771 596,618,322 553,772,060 Net position-ending $423,138,855 $377,171,435 $223,957,862 $219,446,887 $647,096,717 $596,618,322 24 City of Tigard, Oregon Management's Discussion and Analysis Expenses and Program Revenues—Governmental activities—June 30, 2024 Governmental Activities Program Revenues and Expense Fiscal Year Ending June 30,2024 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 ■ $10,000,000 $5,000,000 ■ExpenseProgram Revenues $0 c� se'c' Qo`o\`o�ot�S eye\°��e� �\" • ecti ���ec<c- b6 co �r\..ok a�aad o°\o Qo\ci ,ce'e5 Governmental Activities Governmental activities increased the city's net position by $45,967,420, which is more than the approximate$30.1 million increase in net position from governmental activities experienced in fiscal year 2023. Expenses were higher in all programs except Community Development when comparing fiscal year 2024 to fiscal year 2023, and most revenues were higher, with the exception of operating grants and contributions. Noteworthy reasons for the change from the prior year are as follows: • Property taxes constitute approximately 26.7 percent of total governmental revenues and continues to be a major source of revenue for the funding of city programs. Property tax revenues are up by approximately$1.5 million or 5.7 percent over 2023. 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 25 City of Tigard, Oregon Management's Discussion and Analysis that date, the city refunded $9.0 million of outstanding general obligation bonds that were approved on May 21,2002, by voters to build a new library. On April 28, 2020,the city issued more than $5.9 million in general obligation refunding bonds to defease part of the park bonds. This refunding reduced total debt service payments 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 $1.3 million decrease from fiscal year 2023 as a result of reduced forfeitures in the federal grant funds. • Capital grants and contributions increased $4.0 million over fiscal year 2023 due to an increase in revenue from System Development Charges and Transportation Development Tax. • Overall expenses for governmental activities of$69,552,001 increased from the prior fiscal year by approximately$12.7 million.This increase was due to increases in policy and administration,public works, and community services, offset by a decrease in community services activities. Governmental Activities Revenues by Source Fiscal Year Ending June 30,2024 Capital grants and contributions Property taxes 15.6% 26.8% Operating grants Franchise fees and contributions 8.0% 10.0% Unrestricted intergovernmental revenues 4.5% Interest and investment earnings Fees,fines and Miscellaneous 7.5% charges for services revenues 26.9% 0.7% 26 City of Tigard, Oregon Management's Discussion and Analysis Business-type Activities Business-type activities increased the city's net position by $4,510,975. The primary reasons for the current year's increases are: • Charges for services represent approximately 81.5 percent of total business-type revenues and are composed of fees that are charged to all users for services provided such as water, sanitary sewer, and stormwater.The sanitary and stormwater fees are established by Clean Water Services (CWS) and are set by the agency each year. The city council, through an intergovernmental agreement with other water system participants, sets the water rates.Total charges for services increased by approximately$1.35 million or 3.7 percent over fiscal year 2023,with the largest increase in water revenues. • Expenses for water operations increased approximately$1.46 million or 7.7 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, 2024 $25,000,000 - $22,500,000 - $20,000,000 - $17,500,000 - $15,000,000 - $12,500,000 - ■ Revenues $10,000,000 - • Expenses $7,500,000 - $5,000,000 - $2,500,000 - $0 Sa�\tiaN Suet es 14 et �atet 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. 27 City of Tigard, Oregon Management's Discussion and Analysis As of the end of the fiscal year 2024, the city's governmental funds reported combined ending fund balances of$146,363,549 an increase of$16,215,805 over the prior year. Approximately 25.5 percent or $37.4 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 $100,199,027 or 68.5 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 2024, the assigned fund balance for subsequent year's budget appropriation of fund balance was $5,121,172 or approximately 14.4 percent of the total fund balance of$35,645,567. As a measure of the General Fund's liquidity, it may be useful to compare fund balance to total fund expenditures. Unassigned fund balance represents 78.7 percent of total General Fund expenditures. 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 $61,334,724 with individual fund unrestricted net position at: • Sanitary Sewer $11,244,367 • Stormwater $10,683,799 • Water Funds $39,416,558 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 $1,434,500 from the original budgeted numbers. Budgeted General Fund contingency was decreased by $714,962 or 79.4 percent. Following are noteworthy changes from the original budget to the final adopted budget in the General Fund: • Transfers- Budget appropriation increases totaled $1.1 million, of which funded the July 4th drone show ($80k), the electric mobility program ($110k), and the houselessness liaison ($200k). The contingency transactions account for an increase in budgeted expenditures not related to increased revenues.There was a decrease to ending General Fund budgetary fund balance of$1,434,500 as a result of these budget amendments. Noteworthy variances from the final adopted budget to actual revenues in the General Fund are as follows: 28 City of Tigard, Oregon Management's Discussion and Analysis • Licenses and permits — variance with final budget of ($531,106) due to less than expected residential permit sales. • Fines and forfeitures — variance with final budget of ($871,814) due to less than expected collections from photo enforcement program. • Franchise fees—variance with final budget of$628,938 due to higher-than-expected revenue from primarily the following franchise service providers: electric, gas, and garbage. • Interest earnings—variance with budget of$437,856 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, 2024, amounts to $279,313,634(net of accumulated depreciation). This investment in capital assets primarily includes land, 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 $28,214,993 or approximately 11.2 percent over the prior year. The city purchased approximately 9.5 acres for $14.0 million for a new Police and Public works building. 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, 2024, amounts to $258,863,721 (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 $21,515,124 or 9.1 percent. This increase is due to expenditures on capital assets being greater than depreciation expense, leading to an increase in net capital assets. 29 City of Tigard, Oregon Management's Discussion and Analysis Capital Assets, Net of Depreciation Governmental Business-Type Total Activities Activities 2024 2023 2024 2023 2024 2023 Land $ 44,166,363 $ 28,918,474 $ 12,302,979 $ 12,302,979 $ 56,469,342 $ 41,221,453 Construction in progress 22,833,792 20,176,576 41,451,884 15,806,315 64,285,676 35,982,891 SBITA in progress 730,659 1,069,653 - - 730,659 1,069,653 Buildings and building improvements 11,213,574 11,489,950 65,142,627 67,242,066 76,356,201 78,732,016 Land improvements 11,650,250 10,509,214 7,505,761 7,505,761 19,156,011 18,014,975 Sewer system - - 17,107,232 17,582,255 17,107,232 17,582,255 Stormwater system - - 12,895,132 12,949,942 12,895,132 12,949,942 Water system - - 99,675,107 101,267,829 99,675,107 101,267,829 Machinery and equipment 929,134 708,462 1,076,616 1,309,549 2,005,750 2,018,011 Autos and trucks 1,845,022 1,815,204 1,706,383 1,381,901 3,551,405 3,197,105 Office equipment 730,891 762,140 - - 730,891 762,140 SBITA 3,882,726 - - - 3,882,726 - Infrastructure 181,331,223 175,648,968 - - 181,331,223 175,648,968 Total Capital Assets $ 279,313,634 $ 251,098,641 $ 258,863,721 $ 237,348,597 $ 538,177,355 $ 488,447,238 The following chart indicates the city's capital assets as of June 30, 2024. 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 - (and,10:5% 4 Infrastructure,33.7% SBITA in progress, 0.1% m,18.5% SBITA,0.7%.J\; Office equipment,0.1% Autos and trucks,0.7%_ I Land improvements,3.6% Machinery and equipment,0.4% \ `_Sewer system,3.2% �•,_-Storm drainage system,2.4% 30 City of Tigard, Oregon Management's Discussion and Analysis Debt Outstanding As of year-end,the city had total debt outstanding of$136,290,245. Of this amount$17,772,998 is general obligation and full faith and credit bonds; $114,534,830 represents water revenue bonds; $1,110,318 represents a note payable; and $2,872,099 represents the software-based information technology agreement(SBITA) related to the adoption of GASB 96. Both general obligation bonds and full faith credit bonds are direct obligations pledging the full faith and credit of the city. Total debt decreased by$4,393,850 or approximately 3.1 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 $7,813,400 at year-end. For the business-type activity, in fiscal year 2021 the city issued refunding water revenue bonds with a par value of $86,575,000. Proceeds from these bonds were used to refund the 2012 water revenue bonds. This refunding was undertaken to reduce total debt service payments by $27,655,069 which produced an economic gain of $16,503,405. The city also has an outstanding note payable that is part of a grant and low interest loan package provided to the city to make improvements to one of the city's water reservoirs. These funds were part of the American Recovery and Reinvestment Act(ARRA). The outstanding balance on this debt is$1,110,318 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 financial activities and upgraded the city's general obligation bond 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 MA. 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 $482 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, 2024. 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 2024 2023 2024 2023 2024 2023 General obligation $ 17,772,998 $ 21,069,771 $ - $ - $ 17,772,998 $ 21,069,771 SBITA payable 2,872,099 - - - 2,872,099 - Note payable - - 1,110,318 1,234,469 1,110,318 1,234,469 Revenue bonds - - 114,534,830 118,379,855 114,534,830 118,379,855 Total Outstanding Debt $ 20,645,097 $ 21,069,771 $115,645,148 $119,614,324 $136,290,245 $140,684,095 31 City of Tigard, Oregon Management's Discussion and Analysis Total Outstanding Long-Term Debt OUTSTANDING LONG-TERM DEBT JUNE 30,2024 General obligation 13.3% PPP' Note payable 0.8% Revenue bonds 85.8% Economic Factors and Budget Information for Next Year The following economic factors currently affect the city and were considered in developing the city's budget for fiscal year 2024-2025: • The unemployment rate for the City of Tigard was 3.4 percent at the end of the fiscal year, June 30, 2024.This is less than the State of Oregon rate of 4.1 percent and the national average of 4.1 percent for June 2024. • Property tax revenues are the single largest sources of revenue in the General Fund and it accounts for 49 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, 2024,there were 3,360 businesses licensed in the city as compared to 3,320 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 1.76 percent in fiscal year 2025.Clean Water Services sets rates for sanitary sewer and storm water management (SWM). Fiscal year 2025 budget includes minor increases for sanitary sewer and stormwater management rates. 32 City of Tigard, Oregon Management's Discussion and Analysis All of these factors were considered in preparing the city's budget for fiscal year 2024-2025. The current forecast shows that in the short-term the city's financial condition is stable in most funds. The fiscal year 2024-2025 budget continued addressing a projected General Fund deficit that has been forecasted to occur in fiscal year 2029. 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 33 No content appears on this page by design. 34 Basic Financial Section 35 No content appears on this page by design. 36 CITY OF TIGARD,OREGON STATEMENT OF NET POSITION June 30,2024 Governmental Business-type Activities Activities Totals ASSETS Current assets Cash and investments $ 85,581,436 $ 50,892,649 $ 136,474,085 Accounts receivable,net 7,627,296 8,222,106 15,849,402 Inventory 3,078 447,206 450,284 Prepaids 440,503 - 440,503 Internal balances (927,532) 927,532 - Property held for resale - 445,042 445,042 Restricted cash and investments 96,339,439 22,148,217 118,487,656 Notes receivable 500,000 - 500,000 Investment in joint venture - 2,190,459 2,190,459 Net OPEB asset 25,136 - 25,136 Capital assets Capital assets,not being depreciated 67,730,817 61,260,624 128,991,441 Other capital assets,net of depreciation 211,582,817 197,603,097 409,185,914 Total assets 468,902,990 344,136,932 813,039,922 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pension 5,210,772 - 5,210,772 Deferred outflows related to OPEB 246,391 14,195 260,586 Deferred outflows related to bond refunding - 3,384,333 3,384,333 Total deferred outflow of resources 5,457,163 3,398,528 8,855,691 LIABILITIES Accounts payable and accrued liabilities 6,982,629 6,171,219 13,153,848 Due to others 743,703 - 743,703 Unearned revenue 174,367 - 174,367 Deposits 2,369,901 16,625 2,386,526 Accrued interest payable 34,933 1,453,014 1,487,947 Due within one year: Accrued compensated absences 2,554,637 137,266 2,691,903 Subscription payable 410,159 - 410,159 Notes payable - 127,874 127,874 Bonds payable 3,478,244 3,544,668 7,022,912 Due in more than one year: Accrued compensated absences 106,444 4,655 111,099 Subscription payable 2,461,941 - 2,461,941 Notes payable - 982,444 982,444 Bonds payable 14,294,754 110,990,165 125,284,919 Total OPEB liability 1,439,533 119,666 1,559,199 Net pension liability 14,377,774 - 14,377,774 Total liabilities 49,429,019 123,547,596 172,976,615 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pension 1,430,470 - 1,430,470 Deferred inflows related to OPEB 361,809 30,002 391,811 Total deferred inflow of resources 1,792,279 30,002 1,822,281 NET POSITION Net investment in capital assets 263,032,737 143,480,064 406,512,801 Restricted for: Affordable housing 3,970,957 - 3,970,957 Building inspection 14,284,990 - 14,284,990 Debt service 7,440,128 2,657,907 10,098,035 Library improvements 648,561 - 648,561 Other post-employment benefits 25,136 - 25,136 Parks development 11,870,847 - 11,870,847 Police services 3,641,211 - 3,641,211 Street maintenance 49,775,036 - 49,775,036 Tourism 1,830,494 - 1,830,494 Underground utilities 737,213 - 737,213 Urban development 6,318,674 - 6,318,674 Water system improvements - 16,475,167 16,475,167 Unrestricted 59,562,871 61,344,724 120,907,595 Total net position $ 423,138,855 $ 223,957,862 $ 647,096,717 The accompanying notes are an integral part of the basic financial statements. 37 CITY OF TIGARD,OREGON STATEMENT OF ACTIVITIES For the year ended June 30,2024 Net(Expense)Revenue and Program Revenues Changes in Net Position Fines,Fees Operating Capital Grants and Charges Grants and and Governmental Business-type Expenses for Services Contributions Contributions Activities Activities Totals Functions/Programs Governmental activities Community services $ 34,162,742 $ 2,367,035 $ 5,154,138 $ - $ (26,641,569) $ - $ (26,641,569) Public works 23,501,283 8,972,514 5,167,197 15,981,565 6,619,993 - 6,619,993 Community development 8,507,543 6,370,024 - - (2,137,519) - (2,137,519) Policy and administration 2,754,893 9,937,485 - - 7,182,592 - 7,182,592 Interest on long-term debt 625,540 - - - (625,540) - (625,540) Total governmental activities 69,552,001 27,647,058 10,321,335 15,981,565 (15,602,043) - (15,602,043) Business-type activities Sanitary sewer 3,877,569 4,909,392 - 423,315 - 1,455,138 1,455,138 Stormwater 4,811,078 6,074,316 - 418,410 - 1,681,648 1,681,648 Water 20,513,116 26,907,434 - 3,238,172 - 9,632,490 9,632,490 Total business-type activities 29,201,763 37,891,142 - 4,079,897 - 12,769,276 12,769,276 Totals $ 98,753,764 $65,538,200 $10,321,335 $ 20,061,462 (15,602,043) 12,769,276 (2,832,767) General Revenues and Transfers General revenues Property taxes General purposes 22,415,761 - 22,415,761 Debt service 2,731,024 - 2,731,024 Police local option levy 2,350,858 - 2,350,858 Franchise fees 8,199,638 - 8,199,638 Unrestricted intergovernmental revenues 4,660,743 - 4,660,743 Interest and investment earnings 7,733,071 4,422,055 12,155,126 Miscellaneous revenues 680,546 117,466 798,012 Transfers 12,797,822 (12,797,822) - Total general revenues and transfers 61,569,463 (8,258,301) 53,311,162 Change in net position 45,967,420 4,510,975 50,478,395 Net position,beginning 377,171,435 219,446,887 596,618,322 Net position,ending $ 423,138,855 $ 223,957,862 $ 647,096,717 The accompanying notes are an integral part of the basic financial statements. 38 CITY OF TIGARD,OREGON GOVERNMENTAL FUNDS BALANCE SHEET June 30,2024 Facilities Capital Other Governmental General Fund Projects Fund Funds Total ASSETS Cash and investments $ 34,260,682 $ 1,274,253 $ 17,384,758 $ 52,919,693 Accounts receivable 4,302,140 291 2,804,740 7,107,171 Property taxes receivable 318,275 - 116,839 435,114 Prepaids 335,446 - - 335,446 Notes receivable - - 500,000 500,000 Advances to other funds 883,981 - - 883,981 Restricted cash and investments - - 96,339,439 96,339,439 Total assets $ 40,100,524 $ 1,274,544 $ 117,145,776 $ 158,520,844 LIABILITIES - Accounts payable and accrued liabilities $ 2,119,137 $ 365,066 $ 3,188,501 $ 5,672,704 Due to others 628,229 - 115,474 743,703 Unearned revenue - - 157,867 157,867 Deposits 450,826 - 1,744,833 2,195,659 Advances from other funds - - 1,811,513 1,811,513 Total liabilities 3,198,192 365,066 7,018,188 10,581,446 DEFERRED INFLOWS OF RESOURCES Unavailable revenue Property taxes 265,220 - 65,688 330,908 Municipal court revenue 991,545 - - 991,545 Transportation refund credits - - 38,485 38,485 Intergovernmental - - 211,498 211,498 Special assessment liens - - 3,413 3,413 Total deferred inflow of resources 1,256,765 - 319,084 1,575,849 FUND BALANCE Non-spendable: Prepaids 335,446 - - 335,446 Advances to other funds 883,981 - - 883,981 Restricted for: Affordable housing - - 3,970,957 3,970,957 Building inspection - - 14,284,990 14,284,990 Debt service - - 7,374,440 7,374,440 Library improvements - - 648,561 648,561 Parks development - - 11,870,847 11,870,847 Police services - - 3,641,211 3,641,211 Street maintenance - - 49,521,640 49,521,640 Tourism - - 1,830,494 1,830,494 Underground utilities - - 737,213 737,213 Urban development - - 6,318,674 6,318,674 Committed for: Street maintenance - - 6,412,788 6,412,788 Urban forestry - - 1,150,031 1,150,031 Assigned for: City facilities - 909,478 - 909,478 Park and recreation - - 3,485,561 3,485,561 Subsequent year's budget appropriation of fund balance 5,121,172 - - 5,121,172 Unassigned 29,304,968 - (1,438,903) 27,866,065 Total fund balances 35,645,567 909,478 109,808,504 146,363,549 Total liabilities,deferred inflow of resources,and fund balances $ 40,100,524 $ 1,274,544 $ 117,145,776 $ 158,520,844 The accompanying notes are an Integral part of the basic financial statements. 39 CITY OF TIGARD,OREGON RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION June 30,2024 Fund balances-Governmental Funds $ 146,363,549 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 $ 411,390,466 Less accumulated depreciation (136,690,216) 274,700,250 Pension and OPEB 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 OPEB asset 25,136 Deferred outflows related to pension 5,210,772 Deferred outflows related to OPEB 171,547 Total OPEB liability (808,629) Net pension liability (14,377,774) Deferred inflows related to pension (1,430,470) Deferred inflows related to OPEB (203,634) (11,413,052) 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 330,908 Municipal court revenue earned but not available 991,545 Intergovernmental revenue earned but not available 211,498 Transportation refund credits but not available 38,485 Assessment liens but not available 3,413 1,575,849 Long-term liabilities,including bonds payable are not due and payable in the current period and therefore,are not reported in the governmental funds. Accrued compensated absences (1,757,188) Bonds payable and accrued interest (17,807,931) (19,565,119) 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. Net Position- Internal Service Funds 31,477,378 Net Position of Governmental Activities $ 423,138,855 The accompanying notes are an integral part of the basic financial statements. 40 CITY OF TIGARD,OREGON GOVERNMENTAL FUNDS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE For the year ended June 30,2024 Other Facilities Capital Governmental General Fund Projects Fund Funds Total REVENUES Property taxes $ 19,808,254 $ - $ 7,651,434 $ 27,459,688 Gas and vehicle taxes - - 6,337,904 6,337,904 Hotel and motel taxes - - 766,024 766,024 Construction excise taxes - - 1,726,664 1,726,664 Licenses and permits 1,356,094 - 4,250,833 5,606,927 Intergovernmental revenues 7,775,227 - 1,783,862 9,559,089 Charges for services 455,018 - 7,120,563 7,575,581 System development charges - - 13,887,247 13,887,247 Fines and forfeitures 1,131,186 - 543,623 1,674,809 Franchise fees 8,199,638 - - 8,199,638 Interest and investment earnings 1,684,956 20,919 4,600,177 6,306,052 Miscellaneous revenues 296,482 3 75,360 371,845 Total revenues 40,706,855 20,922 48,743,691 89,471,468 EXPENDITURES Community services 30,510,124 - 2,472,793 32,982,917 Public works - - 9,222,240 9,222,240 Community development 4,657,139 - 3,825,706 8,482,845 Policy and administration 2,079,472 - - 2,079,472 Capital improvements - 16,470,973 15,166,803 31,637,776 Debt Service - - 3,859,579 3,859,579 Total expenditures 37,246,735 16,470,973 34,547,121 88,264,829 Change in fund balance before other financing sources(uses) 3,460,120 (16,450,051) 14,196,570 1,206,639 OTHER FINANCING SOURCES(USES) Transfer in 189,000 16,459,089 14,818,632 31,466,721 Transfer out (3,485,911) (36) (12,971,608) (16,457,555) Total other financing(uses) (3,296,911) 16,459,053 1,847,024 15,009,166 Change in fund balance 163,209 9,002 16,043,594 16,215,805 Fund balance-beginning of the year, as previously reported 35,482,358 - 94,665,386 130,147,744 Adjustment-Change from nonmajor fund to major fund - 900,476 (900,476) - Fund balance-beginning of the year, as adjusted 35,482,358 900,476 93,764,910 130,147,744 Fund balance-end of the year $ 35,645,567 $ 909,478 $ 109,808,504 $ 146,363,549 The accompanying notes are an integral part of the basic financial statements. 41 CITY OF TIGARD,OREGON RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the year ended June 30,2024 Net change in fund balances-Governmental Funds $ 16,215,805 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 $ 29,750,516 Current year depreciation expense (6,387,948) Contributed capital 239,041 23,601,609 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 37,955 Change in unavailable municipal court revenue 47,174 Change in unavailable transportation refund credits 2,628 Change in unavailable intergovernmental revenue (347,580) Change in unavailable assessment liens (23,307) (283,130) 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 3,292,300 Amortization of premium on long-term debt 4,473 3,296,773 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 12,674 Change in compensated absences (643,542) Pension expense (306,074) OPEB expense (38,310) (975,252) 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 4,111,615 Change in Net Position of Governmental Activities $ 45,967,420 The accompanying notes are an integral part of the basic financial statements. 42 CITY OF TIGARD,OREGON PROPRIETARY FUNDS STATEMENT OF NET POSITION June 30,2024 Sanitary Sewer Internal Service Fund Stormwater Fund Water Fund Totals Funds ASSETS Current assets Cash and investments $ 10,066,719 $ 9,895,985 $ 30,929,945 $ 50,892,649 $ 32,661,743 Accounts receivable 2,512,443 986,126 4,723,537 8,222,106 85,011 Inventory 14,015 14,015 419,176 447,206 3,078 Prepaids - - - - 105,057 Property held for resale 185,021 260,021 - 445,042 - Total current assets 12,778,198 11,156,147 36,072,658 60,007,003 32,854,889 Noncurrent assets Restricted cash and investments - - 22,148,217 22,148,217 - Advances to other funds 927,532 - - 927,532 - Investment in joint venture - - 2,190,459 2,190,459 - Capital assets Capital assets,not being depreciated 452,884 4,986,499 55,821,241 61,260,624 730,659 Other capital assets,net of depreciation 17,622,484 13,689,074 166,291,539 197,603,097 3,882,725 Total noncurrent assets 19,002,900 18,675,573 246,451,456 284,129,929 4,613,384 Total assets 31,781,098 29,831,720 282,524,114 344,136,932 37,468,273 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to OPEB 3,470 3,470 7,255 14,195 74,844 Deferred outflows related to bond refunding - - 3,384,333 3,384,333 - Total deferred outflow of resources 3,470 3,470 3,391,588 3,398,528 74,844 LIABILITIES Current liabilities Accounts payable and accrued liabilities 2,403,992 394,434 3,372,793 6,171,219 1,309,925 Unearned revenue - - - - 16,500 Deposits - - 16,625 16,625 174,242 Accrued interest payable - - 1,453,014 1,453,014 - Accrued compensated absences 23,459 43,329 70,478 137,266 867,737 Current portion of subscription payable - - - - 410,159 Current portion of notes payable - - 127,874 127,874 - Current portion of bonds payable - - 3,544,668 3,544,668 - Total current liabilites 2,427,451 437,763 8,585,452 11,450,666 2,778,563 Noncurrent liabilities Accrued compensated absences 796 1,469 2,390 4,655 36,156 Subscription payable,net of current portion - - - - 2,461,941 Notes payable,net of current portion - - 982,444 982,444 - Bonds payable,net of current portion - - 110,990,165 110,990,165 - Total OPEB liability 29,252 29,252 61,162 119,666 630,904 Total noncurrent liabilites 30,048 30,721 112,036,161 112,096,930 3,129,001 Total liabilities 2,457,499 468,484 120,621,613 123,547,596 5,907,564 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to OPEB 7,334 7,334 15,334 30,002 158,175 NET POSITION Net investment in capital assets 18,075,368 18,675,573 106,729,123 143,480,064 1,741,284 Restricted for: Capital projects - - 16,475,167 16,475,167 - Debt service - - 2,657,907 2,657,907 - Unrestricted 11,244,367 10,683,799 39,416,558 61,344,724 29,736,094 Total net position $ 29,319,735 $ 29,359,372 $ 165,278,755 $ 223,957,862 $ 31,477,378 The accompanying notes are an integral part of the basic financial statements. 43 CITY OF TIGARD,OREGON PROPRIETARY FUNDS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET POSITION For the year ended June 30,2024 Sanitary Sewer Internal Service Fund Stormwater Fund Water Fund Totals Funds OPERATING REVENUES Charges for services $ 4,909,392 $ 6,074,316 $ 26,907,434 $ 37,891,142 $ 30,311,970 Miscellaneous revenues 1,552 2,295 113,619 117,466 355,515 Total operating revenues 4,910,944 6,076,611 27,021,053 38,008,608 30,667,485 OPERATING EXPENSES Salaries and wages 530,724 1,018,133 1,356,615 2,905,472 13,862,122 Contracted services 41,033 536,885 2,258,448 2,836,366 2,511,881 General,administrative and other 2,413,931 2,415,889 8,312,931 13,142,751 9,934,616 Depreciation 891,881 840,171 5,217,705 6,949,757 465,927 Total operating expenses 3,877,569 4,811,078 17,145,699 25,834,346 26,774,546 Operating income(loss) 1,033,375 1,265,533 9,875,354 12,174,262 3,892,939 NON-OPERATING REVENUES(EXPENSES) Interest and investment earnings 559,662 437,419 3,424,974 4,422,055 1,427,019 Intergovernmental revenues - - - - 8,756 Loss on investment in joint venture - - (36,423) (36,423) - Interest expense - - (3,330,994) (3,330,994) (75,408) Net income(loss)before contributions and transfers 1,593,037 1,702,952 9,932,911 13,228,900 5,253,306 CONTRIBUTIONS AND TRANSFERS System development charges 155,042 24,529 3,178,904 3,358,475 - Capital contributions 268,273 393,881 59,268 721,422 - Transfer in 9,275 813,552 684,098 1,506,925 2,086,829 Transfer out (1,732,753) (174,982) (12,397,012) (14,304,747) (3,228,520) Change in net position 292,874 2,759,932 1,458,169 4,510,975 4,111,615 Net position-beginning of the year 29,026,861 26,599,440 163,820,586 219,446,887 27,365,763 Net position-end of the year $ 29,319,735 $ 29,359,372 $ 165,278,755 $ 223,957,862 $ 31,477,378 The accompanying notes are an integral part of the basic financial statements. 44 CITY OF TIGARD,OREGON PROPRIETARY FUNDS STATEMENT OF CASH FLOWS For the year ended June 30,2024 Sanitary Sewer Fund Stormwater Fund Water Fund Totals Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 20,873,325 $ 7,082,078 $ 26,272,049 $ 54,227,452 $ 30,308,342 Payments to suppliers (21,526,357) (4,445,043) (10,666,225) (36,637,625) (12,428,603) Payments to employees (529,054) (983,960) (1,329,405) (2,842,419) (13,520,472) Other receipts 1,552 2,295 113,619 117,466 355,515 Net cash provided(used)by operating activities (1,180,534) 1,655,370 14,390,038 14,864,874 4,714,782 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Advance to other funds 74,788 - - 74,788 - Intergovernmental revenue - - - - 8,756 Transfers from other funds 9,275 - - 9,275 1,017,176 Transfers to other funds (1,732,753) (174,982) (12,397,012) (14,304,747) (2,501,080) Net cash provided(used)by noncapital financing activities (1,648,690) (174,982) (12,397,012) (14,220,684) (1,475,148) CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES System development revenue 155,040 24,529 3,178,903 3,358,472 - Transfers in for capital assets - 770,210 - 770,210 - Acquisition of capital assets (30,479) (2,313,435) (24,672,105) (27,016,019) (1,691,065) Principal payments - - (3,764,149) (3,764,149) (173,933) Interest payments - - (3,445,797) (3,445,797) (75,408) Net cash provided(used)by capital financing activities 124,561 (1,518,696) (28,703,148) (30,097,283) (1,940,406) CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings 559,662 437,419 3,424,974 4,422,055 1,427,019 Net increase(decrease)in cash and investments (2,145,001) 399,111 (23,285,148) (25,031,038) 2,726,247 Cash and investments-beginning of the year 12,211,720 9,496,874 76,363,310 98,071,904 29,935,496 Cash and investments-end of the year $ 10,066,719 $ 9,895,985 $ 53,078,162 $ 73,040,866 $ 32,661,743 RECONCILIATION OF CASH AND INVESTMENTS Cash and investments $ 10,066,719 $ 9,895,985 $ 30,929,945 $ 50,892,649 $ 32,661,743 Restricted cash and investements - - 22,148,217 22,148,217 - Total cash and investments $ 10,066,719 $ 9,895,985 $ 53,078,162 $ 73,040,866 $ 32,661,743 RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income(loss) $ 1,033,375 $ 1,265,533 $ 9,875,354 $ 12,174,262 $ 3,892,939 Adjustments to reconcile operating income(loss)to net cash provided by operating activities: Depreciation expense 891,881 840,171 5,217,705 6,949,757 465,927 Change in assets and liabilities: Accounts receivable (429,209) (153,440) (632,785) (1,215,434) (133) Inventory 1,494 1,494 362,852 365,840 (308) Prepaids - - - - (105,057) Accounts payable and accrued liabilities (2,675,257) (326,901) (461,914) (3,464,072) 140,063 Deposits - - (2,600) (2,600) (3,495) Accrued compensated absences (9,092) 21,423 29,580 41,911 321,670 Total OPEB liability and related balances 6,274 7,090 1,846 15,210 3,176 Net cash provided(used)by operating activities $ (1,180,534) $ 1,655,370 $ 14,390,038 $ 14,864,874 $ 4,714,782 NON-CASH CAPITAL AND RELATED FINANCING ACTIVITIES: Contributed capital $ 268,273 $ 393,881 $ 59,268 $ 721,422 $ - Subscription issued - - - - 3,046,032 Transfers in of capital assets - 43,342 684,098 727,440 1,069,653 Transfers out of capital assets - - - - 727,440 The accompanying notes are an integral part of the basic financial statements. 45 Notes to Basic Financial Statements 46 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. 47 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. 48 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 and Facilities Capital Projects fund 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 Government Accounting Standards Board (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 49 City of Tigard, Oregon Notes to Basic Financial Statements basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of related cash inflows and outflows. Governmental funds financial statements are presented on a modified accrual basis of accounting with a current financial resource measurement focus. This measurement focus concentrates on the fund's resources available for spending currently or in the near future. Only transactions and events affecting the fund's current financial resources during the period are reported. Similar to the connection between an economic resource measurement focus and full accrual accounting, a current financial resource measurement focus is inseparable from a modified accrual basis of accounting. Under modified accrual accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the city considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. Property taxes, intergovernmental revenues and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered susceptible to accrual as revenue of the current period. All other revenues are considered to be measurable and available only when cash is received by the city. A deferred inflow of resources, shown as unavailable revenue, arises in the governmental funds balance sheet when potential revenue does not meet both the measurable and available criteria for recognition in the current year. This unavailable revenue consists primarily of uncollected property taxes and assessments not deemed available to finance operation of the current period. In the government-wide Statement of Activities, with a full accrual basis of accounting, revenue must be recognized as soon as it is earned regardless of its availability. Thus, the 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. 50 City of Tigard, Oregon Notes to Basic Financial Statements Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government-wide statements' governmental column, a reconciliation is necessary to explain the adjustments needed to transform the fund-based financial statements into the governmental column of the government-wide presentation. This reconciliation is part of the basic financial statements. Interfund activity consists of transfers,services provided and/or used,reimbursements,advances and loans. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between enterprise and various other city functions. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the city's Sanitary Sewer, Stormwater, and Water Funds are charges to customers for sales and services. The Sanitary Sewer, Stormwater, and Water Funds recognize fees intended to recover the cost of connecting new customers to the city's utility systems as non-operating revenues. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and overheads, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. New Accounting Pronouncements and Accounting Standards During the fiscal year ended June 30, 2024, the city implemented the following GASB pronouncements: 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 (SBITA), London Interbank Offer Rate (LIBOR), Supplemental Nutrition Assistance Program (SNAP) and other 51 City of Tigard, Oregon Notes to Basic Financial Statements terminology updates. Specifically, the paragraphs for future adoption address the following topics: • Classification and reporting of derivative instruments within the scope of Statement No. 53. • Clarification of provisions in Statement No. 87, Leases, as amended, related to the determination of the lease term,classification of a lease as a short-term lease, recognition and measurement of a lease liability and a lease asset, and identification of lease incentives. • Clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, related to (a) the determination of 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 SBITA term, classification of a SBITA as a short- term 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 were 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. For the fiscal year endingJune 30,2024,the Facilities Capital Project Fund,qualified as a major fund. The impact to the financial statements was a decrease of $900,476 to the nonmajor governmental fund balance. 52 City of Tigard, Oregon Notes to Basic Financial Statements The following pronouncements have been issued by GASB but not yet implemented by the city: 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. 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 to 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. 53 City of Tigard, Oregon Notes to Basic Financial Statements GASB Statement No. 103, Financial Reporting Model Improvements This statement was issued April 2024 to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government's accountability. This Statement continues the requirement that the basic financial statements be preceded by management's discussion and analysis(MD&A),which is presented as required supplementary information (RSI). MD&A provides an objective and easily readable analysis of the government's financial activities based on currently known facts, decisions, or conditions and presents comparisons between the current year and the prior year. This Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions. Furthermore, this Statement stresses that the detailed analyses should explain why balances and results of operations changed rather than simply presenting the amounts or percentages by which they changed. This Statement emphasizes that the analysis provided in MD&A should avoid unnecessary duplication by not repeating explanations that may be relevant to multiple sections and that "boilerplate" discussions should be avoided by presenting only the most relevant information,focused on the primary government. In addition, this Statement continues the requirement that information included in MD&A distinguish between that of the primary government and its discretely presented component units. GASB Statement No. 103 will be effective for the City for the fiscal year ending June 30, 2026. GASB Statement No. 104, Disclosure of Certain Capital Assets This Statement was issued September 2024 and requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital as-sets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class. This Statement also requires additional disclosures for capital assets held for sale.A capital asset is a capital asset held for sale if(a)the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date.Governments should consider relevant factors to evaluate the likelihood of the capital asset being sold within the established time frame.This Statement requires that capital assets held for sale be evaluated each reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital 54 City of Tigard, Oregon Notes to Basic Financial Statements assets held for sale are pledged as collateral for each major class of asset. GASB Statement No. 104 will be effective for the City for the fiscal year ending June 30, 2026. The city will implement new GASB pronouncements no later than the required effective date. The city is currently evaluating whether or not the above listed new GASB pronouncements will have a significant impact to the city's financial statements. Assets, Deferred Outflows/Inflows of Resources, Liabilities, and Net Position/Fund Balance Cash and Investments Cash and cash equivalents are generally considered short-term, highly liquid investments with a maturity of three months or less from the purchase date. The city's cash and cash equivalents consists of cash on hand,demand deposits and cash deposits that are held in an investment pool, Local Government Investment Pool, that has the general characteristic of a demand deposit account(deposits of additional cash may be made at any time and cash may be withdrawn at any time without prior notice or penalty). Interest earned on cash and cash equivalents is allocated monthly based on each fund's average cash balance as a proportion of the city's total. For purposes of the statement of cash flows, the city considers the proprietary funds' cash and cash equivalents to be cash on hand, demand deposits and cash deposits that are held in an investment pool with original maturities of three months or less. Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly,the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. Interest earned on investments is allocated monthly based on each fund's average cash balance as a proportion of the city's total cash and investments. The city reports cash with fiscal agent and certain cash and investments as restricted because their use is limited by parties external to the city. Restrictions may be from bond proceeds, imposed by creditors, other governments, laws and/or enabling legislation. When both restricted and unrestricted resources are available for use, it is the city's policy to use restricted resources first,then unrestricted resources as they are needed. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as "Advances to/Advances from other funds". Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." 55 City of Tigard, Oregon Notes to Basic Financial Statements Property taxes are levied and become a lien on July 1. Collection dates are November 15, February 15, and May 15 following the lien date. Discounts are allowed if the amount due is received by November 15 or February 15. Taxes unpaid and outstanding on May 16 are considered delinquent. The city also has receivables outstanding for assessments on private property.These assessments include street and sidewalk improvements,sewer line installations and deferral of certain impact fees (system development charges). Proprietary fund receivables are recorded as revenue when earned, including services earned but not billed. The receivables of proprietary funds include billing for residential and commercial customers utilizing the city's water, sanitary sewer and stormwater management services. The city's receivables, including property taxes,assessments and proprietary fund receivables are deemed to be substantially collectible. Tax and assessments receivable can be recovered through foreclosure on the subject property.Services can be disconnected if proprietary fund receivables remain unpaid. Accordingly, no allowance for doubtful accounts is deemed necessary for these receivables. The city records a receivable and related allowance for municipal court accounts receivable. Accounts payable to vendors and contractors include general accounts payable, retainage payable, deposits payable and other accrued liabilities not included in short-term or long-term liabilities. Inventories and Prepaids Inventories of parts, materials and supplies are stated at cost on the first-in,first-out basis, in the proprietary funds. The consumption method is used in accounting for inventory for all funds on the budgetary basis.The consumption method is used for the government-wide presentation as well as the proprietary funds and business-type activities. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaids in both government-wide and fund financial statements using the consumption method. Payments classified as prepaid are primarily items that are being amortized such as prepaid insurance. Property Held for Resale Property held for resale is recorded as an asset and includes land and building inventory stated at the lower of cost or market. At year-end no reductions in value were necessary, therefore recorded amounts were equal to original cost. 56 City of Tigard, Oregon Notes to Basic Financial Statements Capital Assets Capital assets, which include property, plant, equipment, infrastructure, SBITA, and other work 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. 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 Right to use software 10 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. 57 City of Tigard, Oregon Notes to Basic Financial Statements Unearned Revenues Unearned revenues will be recognized as revenue in the fiscal year they are earned in accordance with the accrual basis of accounting. Revenue is considered earned when all eligibility criteria are met, and the amount is measurable. Deferred Outflows/Inflows of Resources Deferred outflows of resources represent a consumption of net 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. 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. 58 City of Tigard, Oregon Notes to Basic Financial Statements 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 Retirement Health Insurance Account (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. 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. 59 City of Tigard, Oregon Notes to Basic Financial Statements 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. Unassigned fund balance is the residual classification for the General Fund.This classification represents fund balance that is not assigned, committed, restricted or nonspendable within the General Fund. This classification is also used to report any deficit fund balance amounts in other governmental funds. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available,the city considers restricted amounts to have been spent. Likewise,when an expenditure is incurred for purposes for which either committed or assigned fund balance is available,the city considers committed or assigned amounts to have been spent. Net Position On the government-wide Statement of Net Position 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. 60 City of Tigard, Oregon Notes to Basic Financial Statements 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 are the city's major governmental funds: 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. Facilities Capital Project Fund — This fund accounts for major city owned facility improvements. Resources are primarily transfers in from the General Fund. Proprietary funds Proprietary funds are used to account for the acquisition, operation and maintenance of sewer, storm drainage, and water systems in the city. These funds are entirely or predominantly self- supported through user charges to customers. The measurement focus is upon net income determination, rather than upon determination of changes in current financial resources. The following enterprise funds are the city's major proprietary funds: Enterprise funds: Sanitary Sewer Fund—This fund accounts for the city's sewer utility operations. Stormwater Fund — This fund accounts for the city's storm drainage operations which consists of the following two budgetary funds: Stormwater Fund and Water Quality/Quantity Fund. Water Fund — This fund accounts for the city's water operations which consists of the following four budgetary funds: Water Fund, Water SDC Fund, Water CIP Fund and Water Debt Service Fund. Additionally,the city reports the following fund types: Nonmajor governmental funds: Special Revenue funds account for restricted or committed revenues for specific purposes. 61 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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. 62 City of Tigard, Oregon Notes to Basic Financial Statements The city's actual expenditures were within budgeted amounts for the year ended June 30, 2024, with the exception of two funds; the Central Services Fund and the Public Works Engineering Fund,which reported an over expenditure of$4,019,104 and $654, respectively. For the Central Services Fund, the capital improvements appropriation was over expended as a result of the GASB 96 implementation, which required the city to capitalize the amount related to the SBITA for the Tyler Technologies implementation. While the city did not expend these funds in FY 24, GASB 96 requires that the expense be recorded in the year of implementation. This requirement was not recognized until after the fiscal year had closed. For the Public Works Engineering Fund, $654 was over expended as a result of higher than anticipated project costs that drive the actual total transfer out. 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 Standard & Poor's Global Ratings (S&P) and Fitch Ratings or an equivalent rating by any nationally recognized statistical rating organization. For the year- ended June 30, 2024, 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, 2024, the fair value of the corporate indebtedness was $6,817,650. For additional details on investments see Note 3. 3. Cash and Investments The city maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the combined balance sheet as "cash and investments". Unrestricted and restricted cash and investments for the primary government are reported in governmental and business-type activities. Restricted balances reported in cash and investments are restricted by legal or contractual requirements. 63 City of Tigard, Oregon Notes to Basic Financial Statements Cash and investments, restricted and unrestricted, at June 30, 2024: Primary Type Government Deposits with financial institutions $ 14,815,667 Cash deposits 14,815,667 Cash with fiscal agent 64,681 Petty cash/cash on hand 8,295 Total cash 14,888,643 State Investment Pool (LGIP) 38,008,387 U.S. Agencies 32,348,665 U.S.Treasury Notes 150,424,350 Corporate Bonds 17,335,080 Municipal Bonds 1,956,616 Total investments 240,073,098 Total cash and investments $ 254,961,741 Governmental Business Type Activities Activities Total Cash and investments $ 85,581,436 $ 50,892,649 $ 136,474,085 Restricted cash and investments 96,339,439 22,148,217 118,487,656 Total cash and investments $ 181,920,875 $ 73,040,866 $ 254,961,741 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 ORS 295. Cash with financial institutions includes bank demand deposits accounts.The combined total book balance at June 30, 2024 was $14,815,667 and the total bank balance is $14,865,346. Of these deposits, $500,000 was covered by federal depository insurance and $14,365,346 was collateralized in accordance with ORS 295.The Federal Depository Insurance Corporation (FDIC) provides deposit insurance up to $250,000 for each institution. Institutions with deposits in excess of FDIC coverage participate in the Oregon Public Funds Collateralization Program (PFCP) as defined in 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. 64 City of Tigard, Oregon Notes to Basic Financial Statements Based on that categorization, banks must pledge collateral valued at between 10 percent and 110 percent of their public fund deposits. In the event of a bank failure, the entire pool of collateral pledged by all qualified Oregon public funds bank depositories is available to repay deposits of public funds of government entities. The Office of the State Treasurer maintains a list of qualified financial institutions for the deposit of public funds in excess of FDIC insurance. The financial institutions holding city deposits are noted on the State Treasurer's qualified list. In addition,the city's policy states bank deposits of any one qualified financial institution shall not exceed 1 percent of the institution's total assets. The city is in compliance with this policy at year-end. Investments For an investment,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, 2024, the city's fair value in the LGIP was $38,008,387. 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 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: 65 City of Tigard, Oregon Notes to Basic Financial Statements Level 1 - unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access. Level 2 - other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, loss severities, credit risks and default rates) or other market-corroborated inputs. Level 3 - unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including each Fund's own assumptions used in determining the fair value of investments). The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities. The city has the following investments and recurring fair value measurements at June 30, 2024: Fair Value Fair Value Measurement Amortized Cost Not Local Government Investment Pool (LGIP) $ 38,008,387 Measured at Fair Value U.S.Agencies 32,348,665 Level 2 U.S.Treasury Notes 150,424,350 Level 1 Corporate Bonds 17,335,080 Level 2 Municipal Bonds 1,956,616 Level 2 Total Investments $ 240,073,098 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 66 City of Tigard, Oregon Notes to Basic Financial Statements 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, 2024,the city had the following investments and maturities at fair value: Weighted Average Maturity Risk (in Investment Type Fair Value Concentration months) Local Government Investment Pool (LGIP) * $ 38,008,387 15.8% 0.01 U.S.Agencies 32,348,665 13.5% 9.31 U.S.Treasury Notes 150,424,350 62.7% 14.68 Corporate Bonds 17,335,080 7.2% 14.37 Municipal Bonds 1,956,616 0.8% 10.17 Total Investments $ 240,073,098 100.0% Portfolio weighted average maturity 11.1 * LGIP is considered an investment per the city's investment policy. For financial reporting, LGIP is considered cash and cash equivalents due to the liquid nature of the accounts. Concentration of credit risk: Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The city's policy for investing in individual issuers varies depending on the type of investments. Following are maximum instrument diversification per city policy.At year-end the city was in compliance with this policy. • U.S. Agency securities are restricted to no more than 90 percent. • Certificates of deposit are restricted to no more than 25 percent. • Corporate bonds are restricted to no more than 35 percent. In addition, investments in corporate bonds of any one issuer may not exceed 5 percent of the investment portfolio. 67 City of Tigard, Oregon Notes to Basic Financial Statements 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, 2024, 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 $ 38,008,387 15.8% Corporate Bonds Al A- 5,770,080 2.4% Corporate Bonds A2 BBB+ 6,817,650 2.8% Corporate Bonds Aa2 AA+ 2,380,075 1.0% Corporate Bonds Al AA- 2,367,275 1.0% Municipal Bonds AAA AA+ 1,956,616 0.8% US Instrumentality: FHLB AAA AA+ 14,730,600 6.1% US Instrumentality: FHLB AAA N/R 4,828,550 2.0% US Instrumentality: FHLMC AAA AA+ 3,325,415 1.4% US Instrumentality: FHLMC Aaa AAA 9,464,100 3.9% US Instrumentality: FHLMC AAA N/R 79,392,540 33.1% US Instrumentality:Treasury Note Aaa AA+ 54,106,100 22.6% US Instrumentality:Treasury Note N/R N/R 6,986,210 2.9% US Instrumentality:Treasury Note N/R AA+ 9,939,500 4.2% Total Investments $ 240,073,098 100.0% 4. Accounts Receivable Accounts receivable as of June 30, 2024 for the city's individual major fund, nonmajor and internal service funds in the aggregate, including the applicable allowances for uncollectible accounts are noted below: Allowance Gross for Doubtful Receivables, Accounts Taxes Receivables Accounts Net Governmental Activities General $ 8,600,477 $ 318,275 $ 8,918,752 $ (4,298,337) $ 4,620,415 Nonmajor governmental 2,805,029 116,839 2,921,868 - 2,921,868 Internal service 85,013 - 85,013 - 85,013 $11,490,519 $ 435,114 $11,925,633 $ (4,298,337) $ 7,627,296 Business-Type Activities Sanitary sewer $ 2,512,443 $ - $ 2,512,443 $ - $ 2,512,443 Stormwater 986,126 - 986,126 - 986,126 Water 4,723,537 - 4,723,537 - 4,723,537 $ 8,222,106 $ - $ 8,222,106 $ - $ 8,222,106 Total receivables $15,849,402 68 City of Tigard, Oregon Notes to Basic Financial Statements 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, 2024, $5,731,113 was outstanding for municipal court receivables with a related allowance for doubtful accounts of$4,298,337. 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, 2024, the portion of the assessments receivable balance that represents delinquent accounts is insignificant. 5. Capital Assets Capital assets activity for governmental activities for the year ended June 30, 2024, was as follows: Balances Balances Governmental activities June 30,2023 Additions Deletions Transfers June 30,2024 Non-deprecia ble/amortizable: Land $ 28,918,474 $ - $ - $15,247,889 $ 44,166,363 Construction in progress 20,176,576 29,555,789 - (26,898,573) 22,833,792 Subscription development in progress 1,069,653 730,659 - (1,069,653) 730,659 Total non-depreciable/amortizable 50,164,703 30,286,448 - (12,720,337) 67,730,814 Depreciable/Amortizable: Building and improvements 24,424,456 44,814 - 357,437 24,826,707 Land improvements 20,716,607 - (22,275) 1,809,781 22,504,113 Machinery and equipment 3,670,898 251,001 (92,407) 185,209 4,014,701 Autos and trucks 4,725,705 758,890 (446,935) - 5,037,660 Office equipment 4,693,059 285,169 - - 4,978,228 Infrastructure 273,491,605 239,041 - 9,298,257 283,028,903 Subscription - 3,279,000 - 1,069,653 4,348,653 Total depreciable/amortizable 331,722,330 4,857,915 (561,617) 12,720,337 348,738,965 Accumulated depreciation/amortization: Building and improvements (12,934,506) (678,627) - - (13,613,133) Land improvements (10,207,393) (668,745) 22,275 - (10,853,863) Machinery and equipment (2,962,436) (215,538) 92,407 - (3,085,567) Autos and trucks (2,910,501) (653,577) 371,440 - (3,192,638) Office equipment (3,930,919) (316,418) - - (4,247,337) Infrastructure (97,842,637) (3,855,043) - - (101,697,680) Subscription - (465,927) - - (465,927) Total accumulated depreciation/amortization (130,788,392) (6,853,875) 486,122 - (137,156,145) Net depreciable/amortizable assets 200,933,938 (1,995,960) (75,495) 12,720,337 211,582,820 Governmental activities capital assets,net $251,098,641 $28,290,488 $ (75,495) $ - $279,313,634 69 City of Tigard, Oregon Notes to Basic Financial Statements Depreciation and amortization expense for governmental activities is charged to functions as follows: Community services $ 330,358 Public works 6,273,328 Community development 12,296 Policy and administration 237,893 Total depreciation and amortization for governmental activities $ 6,853,875 Capital assets activity for business-type activities for the year ended June 30, 2024,was as follows: Balances Balances Business-type activities June 30,2023 Additions Deletions Transfers June 30,2024 Non-depreciable: Land $ 12,302,979 $ - $ - $ - $ 12,302,979 Land Improvements 7,505,761 - - - 7,505,761 Construction in progress 15,806,315 27,010,222 - (1,364,654) 41,451,883 Total non-depreciable 35,615,055 27,010,222 - (1,364,654) 61,260,623 Depreciable: Building and improvements 77,323,567 - - - 77,323,567 Sewer system 33,756,413 268,273 - - 34,024,686 Stormwater system 25,095,025 393,881 - 189,643 25,678,549 Water system 149,124,738 59,268 - 1,175,011 150,359,017 Equipment 4,103,649 5,797 (50,511) - 4,058,935 Autos and trucks 3,269,770 727,440 (40,496) - 3,956,714 Total depreciable 292,673,162 1,454,659 (91,007) 1,364,654 295,401,468 Accumulated depreciation: Building and improvements (10,081,501) (2,099,439) - - (12,180,940) Sewer system (16,174,159) (743,295) - - (16,917,454) Stormwater system (12,145,083) (638,334) - - (12,783,417) Water system (47,856,909) (2,827,001) - - (50,683,910) Equipment (2,794,100) (238,730) 50,511 - (2,982,319) Autos and trucks (1,887,869) (402,957) 40,496 - (2,250,330) Total accumulated depreciation (90,939,621) (6,949,756) 91,007 - (97,798,370) Net depreciable assets 201,733,541 (5,495,097) - 1,364,654 197,603,098 Business-type activities capital assets,net $237,348,596 $21,515,125 $ - $ - $258,863,721 Depreciation expense for business-type activities is charged to activities as follows: Sanitary sewer $ 891,881 Stormwater 840,171 Water 5,217,704 Total depreciation for business-type activities $ 6,949,756 70 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 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, 2024, the outstanding balance on the bonds was $3,012,200 for the Series 2021A and $856,700 for the Series 2021B. Future maturities on the bond principal and interest on the 2021 Full Faith &Credit (FFC) bonds are as follows: Total Debt Series 2021A Series 20216 Service Requirement Issued:September 29,2021 Issued:September 29,2021 Fiscal Year Total Total 1.69% 2.14% of Maturity Principal Interest Principal Interest Principal Interest 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 313,400 47,795 244,400 35,062 69,000 12,733 2030-2034 1,653,000 152,828 1,285,300 111,948 367,700 40,880 2035-2036 703,300 18,954 545,000 13,854 158,300 5,100 $3,868,900 $ 464,849 $3,012,200 $ 341,056 $856,700 $ 123,793 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 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 71 City of Tigard, Oregon Notes to Basic Financial Statements 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, 2024, the outstanding balance on the bonds was $1,564,000 for the Series 2019A and $3,360,000 for the Series 2019B. Future maturities of bond principal and interest on the 2019 Full Faith and Credit (FFC) bonds are as follows: Total Debt Series 2019A Series 2019B Service Requirement Issued:August 29,2019 Issued:August 29,2019 Fiscal Year Total Total 2.36% 2.99% of Maturity Principal Interest Principal Interest Principal Interest 2025 $ 269,000 $ 137,374 $ 88,000 $ 36,910 $ 181,000 $100,464 2026 276,000 129,886 90,000 34,834 186,000 95,052 2027 284,000 122,201 92,000 32,710 192,000 89,491 2028 293,000 114,288 95,000 30,538 198,000 83,750 2029 300,000 106,126 97,000 28,296 203,000 77,830 2030-2033 1,286,000 338,537 410,000 89,798 876,000 248,739 2034 2,216,000 61,898 692,000 16,332 1,524,000 45,566 $ 4,924,000 $1,010,309 $1,564,000 $269,417 $3,360,000 $740,892 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, 2024,the outstanding balance on the bonds was$3,091,000. Future maturities of bond principal and interest on the 2020 GO Refunding Bonds are as follows: Year Ending June 30, Principal Interest Total 2025 $ 1,684,000 $ 30,137 $ 1,714,137 2026 1,407,000 9,427 1,416,427 $ 3,091,000 $ 39,564 $ 3,130,564 72 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, 2024, the outstanding balance on the 2021 bond was $3,944,500. Future maturities of bond principal and interest on the 2021 TCDA bond are as follows: Year Ending June 30, Principal Interest Total 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 313,700 79,070 392,770 2030-2034 1,707,600 256,053 1,963,653 2035-2036 753,100 32,345 785,445 $ 3,944,500 $ 768,292 $ 4,712,792 General Obligation Bonds and Full Faith and Credit Bonds 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, 2024, the outstanding balance on the bonds was$1,940,000 and the balance of the unamortized premium was $4,598. 73 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 2025 $ 950,000 $ 62,263 $ 1,012,263 2026 990,000 21,038 1,011,038 1,940,000 $ 83,300 $ 2,023,300 Premium _ 4,598 Total $ 1,944,598 Other Financing Sources—SBITA Payable In fiscal year 2023-2024 the city implemented GASB 96 resulting in the capitalization of the ERP implementation costs associated with the city's subscription-based information technology agreement(SBITA). The city entered into a SBITA with Tyler Technologies, in effect from October 1, 2020 to July 1, 2030. As of June 30, 2024, subscription assets totaled $4,348,653, with $465,927 recognized as depreciation expense. The total net asset related to the SBITA is $3,882,726, net of accumulated depreciation of$465,927. The net asset amount does not include$730,659 recognized as subscription in development and not yet implemented. At June 30, 2024 the outstanding liability balance on the SBITA totaled $2,872,099. Year Ending June 30, Principal Interest Total 2025 $ 410,159 $ 88,522 $ 498,681 2026 424,332 74,349 498,681 2027 450,408 59,494 509,901 2028 469,841 43,800 513,641 2029 486,077 27,565 513,641 2030-2031 _ 631,284 10,768 642,052 $ 2,872,099 $ 304,499 $ 3,176,598 74 City of Tigard, Oregon Notes to Basic Financial Statements 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. At June 30, 2024,the balance on the note payable was $1,110,318. Future debt service requirements are as follows: Year Ending June 30, Principal Interest Total 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 143,923 17,260 161,183 2030-2032 431,419 25,353 456,772 Total $ 1,110,318 $ 152,370 $ 1,262,688 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 75 City of Tigard, Oregon Notes to Basic Financial Statements remedy available at law or in equity, with the exception of acceleration. At June 30, 2024, the outstanding balance on the bonds was $81,225,000 and the balance of the unamortized premium was $1,036,610. 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 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 3,790,000 1,587,762 5,377,762 2030-2032 11,835,000 4,297,738 16,132,738 2033-2037 21,490,000 5,393,375 26,883,375 2038-2042 24,385,000 2,499,506 26,884,506 2043 5,300,000 76,850 5,376,850 81,225,000 $ 20,942,031 $ 102,167,031 Premium 1,036,610 Total $ 82,261,610 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 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 30,2024, the balance of the 2015 water revenue bonds was $29,355,000 and the balance of the unamortized premium was $2,918,220. 76 City of Tigard, Oregon Notes to Basic Financial Statements Future maturities of bond principal and premium and interest on the 2015 revenue bonds are as follows: Year Ending June 30, Principal Interest Total 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 $ 255,000 1,410,475 1,665,475 2030-2032 840,000 4,157,650 4,997,650 2033-2037 1,705,000 5,271,250 6,976,250 2038-2042 2,195,000 4,873,250 7,068,250 2043-2046 23,440,000 1,758,000 25,198,000 29,355,000 $ 23,222,200 $ 55,495,420 Premium 2,918,220 Total $ 32,273,220 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 2024 were $14,977,312 as compared to the total debt service of$7,123,763. 77 City of Tigard, Oregon Notes to Basic Financial Statements The computation of water revenue bonds debt coverage is as follows: CITY OF TIGARD, OREGON COMPUTATION OF WATER REVENUE BONDS DEBT COVERAGE 2024 Gross revenues $ 26,905,307 System Development Charges (SDC) related: SDC Fund interest earnings 862,350 Reimbursement fee receipts(2) 1,554,300 Improvement fee receipts (3) 1,626,245 Total SDC-related 4,042,895 Operating expense: Salaries and wages 1,356,615 Contracted services 361,917 Water purchases 1,896,531 General, admin and other 8,312,931 Total operating expenses 11,927,995 Net revenues (including SDCs) 19,020,207 Net revenues (excluding SDCs) $ 14,977,312 Debt service -first lien bonds: 2012 bonds $ - 2015 bonds 1,675,300 2020 Refunding bonds 5,448,463 Total debt service $ 7,123,763 Debt service coverage -first lien bonds (excluding system development charges) 2.10 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. 78 City of Tigard, Oregon Notes to Basic Financial Statements Long-term debt activity, including compensated absences, for the year ended June 30, 2024, was as follows: Balances June Balances June Due in one 30,2023 Additions Retirements 30,2024 year Governmental activities Direct borrowings and placements Bonds payable $ 4,652,000 $ - $ (1,561,000) $ 3,091,000 $ 1,684,000 Bonds payable(TCDA) 13,558,700 - (821,300) 12,737,400 _ 841,200 Total direct borrowings and placements 18,210,700 - (2,382,300) 15,828,400 2,525,200 Other debt Bonds payable 2,850,000 - (910,000) 1,940,000 950,000 SBITA payable - 3,046,032 (173,933) 2,872,099 410,159 Total other debt 2,850,000 3,046,032 (1,083,933) 4,812,099 1,360,159 Total governmental debt 21,060,700 3,046,032 (3,466,233) 20,640,499 3,885,359 Premium on bonds 9,071 - (4,473) 4,598 3,044 Other long-term liabilities Compensated absences 1,695,869 1,705,581 (740,369) 2,661,081 2,554,637 Governmental activities $ 22,765,640 $ 4,751,613 $ (4,211,075) $ 23,306,178 $ 6,443,039 Business-type activities Direct borrowings and placements Note payable $ 1,234,467 $ - $ (124,149) $ 1,110,318 $ 127,874 Bonds payable 84,655,000 - (3,430,000) 81,225,000 3,500,000 Total direct borrowings and placements 85,889,467 - (3,554,149) 82,335,318 3,627,874 Other debt Bonds payable 29,565,000 - (210,000) 29,355,000 215,000 Total business-type debt 115,454,467 - (3,764,149) 111,690,318 3,842,874 Premium on bonds 4,159,855 - (205,024) 3,954,830 204,737 Other long-term liabilities Compensated absences 100,010 72,742 (30,831) 141,921 137,266 Business-type activities $ 119,714,332 $ 72,742 $ (4,000,004) $ 115,787,069 $ 4,184,877 Expenditures for liquidating other long-term liabilities, including compensated absences are recorded in the General, various nonmajor Special Revenue, Enterprise, and Internal Service funds. 79 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, 2024, are as follows: Receivable Fund Payable Fund Amount Elimination Net Balance General Fund Nonmajor governmental fund $ 883,979 $ (883,979) $ - Sanitary Sewer Fund Nonmajor governmental fund 927,532 - 927,532 $ 1,811,511 $ (883,979) $ 927,532 Future maturities on the interfund loans are as follows: Interfund Loans Elimination Net Balance Year Ending June 30, Principal Interest Principal Interest Principal Interest 2025 $ 91,743 $ 42,849 $ (3,922) $ (8,916) $ 87,821 $ 33,933 2026 130,195 39,627 (39,172) (8,896) 91,023 30,731 2027 158,569 36,088 (64,217) (8,687) 94,352 27,401 2028 162,366 32,290 (64,551) (8,351) 97,815 23,939 2029 166,304 28,352 (64,889) (8,014) 101,415 20,338 2030-2033 766,225 69,633 (438,902) (31,695) 327,323 37,938 2034-2038 281,216 16,226 (153,433) (11,740) 127,783 4,486 2039-2042 54,893 1,973 (54,893) (1,973) - - $ 1,811,511 $ 267,038 $ (883,979) $ (88,272) $ 927,532 $ 178,766 80 City of Tigard, Oregon Notes to Basic Financial Statements Transfers for fiscal year ended June 30, 2024, 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 2,665,000 Fund park and various other operations Fund parks,transportation and various other capital Nonmajor Governmental 11,988,874 projects Stormwater 145,433 Fund stormwater of a city-wide facilities project Fund sanitary sewer component of a city-wide facilities Sanitary Sewer 10,392 project Fund water component of a city-wide faciities project Water 8,933 14,818,632 and a transportation capital project Facilites General 741,362 Sanitary Sewer 998,737 Stormwater 1,256 Fund various portions of the building acquisition Water 12,086,188 Nonmajor Governmental 130,466 Internal Service 2,501,080 16,459,089 Sanitary Sewer Stormwater 9,275 9,275 Fund sewer component of stormwater project Stormwater Sanitary Sewer 711,908 Water 58,302 Fund stormwater component of sewer project Transfer of capital project related to public works heavy Internal Service 43,342 813,552 equipment acquistion Transfer of capital project related to public works heavy Water Internal Service 684,097 684,097 equipment acquistion Funding of central sercices,public works administration Internal Service General 79,549 and engineering Facilities 36 Capital project funding contracting and accounting Nonmajor Governmental 663,268 Sanitary Sewer 11,716 Stormwater 19,018 Capital project funding contracting,accounting,and Water 243,589 1,017,176 public works engineering $ 33,990,821 Reconciliation: Transferred to governmental funds from: Sewer Fund $ 1,009,129 Stormwater Fund 146,689 Water Fund 12,095,121 Net transfers from (to) internal service to (from): Sewer Fund 11,716 Stormwater Fund (24,324) Water Fund (440,509) Total transfers per Statement of Activities $ 12,797,822 81 City of Tigard, Oregon Notes to Basic Financial Statements 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. The amounts on the financial statements relate to the plans as follows: Implicit Rate PERS RHIA Total OPEB Subsidy Plan Plan on Financials Net OPEB Asset $ - $ 25,136 $ 25,136 Deferred Outflows of Resources Differences Between Expected and Actual Experience 85,876 - 85,876 Change in Proportionate Share - 75,548 75,548 Change in Assumptions 22,144 - 22,144 Difference in Earnings - 71 71 Contributions After the Measurement Date 76,947 - 76,947 Total Deferred Outflows of Resources $ 184,967 $ 75,619 $ 260,586 Total OPEB Liability $ 1,559,199 $ - $ 1,559,199 Deferred Inflows of Resources Differences Between Expected and Actual Experience 88,039 631 88,670 Change in Proportionate Share - - Change in Assumptions 302,870 271 303,141 Difference in Earnings - - - Total Deferred Inflows of Resources $ 390,909 $ 902 $ 391,811 OPEB Expense (Income) $ 84,462 $ 49,194 $ 133,656 (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. 82 City of Tigard, Oregon Notes to Basic Financial Statements The city's postemployment healthcare plan administrator issues a publicly available financial report that includes financial statements and required supplementary information for CIS. This report may be obtained on their website at www.cisoregon.org/About/TrustDocs. Benefits Provided The plan provides eligible retirees and their dependents under age 65 the same health care coverage at the same premium rates as offered to active employees. The retiree is responsible for the premiums. As of the valuation date of July 1, 2023, 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 $1,553,241 was measured as of June 30, 2023, and was determined by an actuarial valuation as of July 1, 2023. For the fiscal year ended June 30, 2024, the city recognized OPEB expense from this plan of $84,462. At June 30, 2024, the city reported deferred outflows of resources and deferred inflows of resources related to this OPEB plan from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 85,876 $ 88,039 Changes of assumptions 22,144 302,870 Contributions subsequent to the measurement date 76,947 - Total $ 184,967 $ 390,909 Deferred outflows of resources related to OPEB of $76,947 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, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year ended June 30: Annual Recognition 2025 $ (84,796) 2026 (73,825) 2027 (50,489) 2028 (30,508) 2029 (18,704) Thereafter (24,567) $ (282,889) 83 City of Tigard, Oregon Notes to Basic Financial Statements Actuarial Assumptions and Other Inputs The total OPEB liability in the July 1, 2023 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 3.65 percent(change from 3.54 percent in previous measurement period) Healthcare cost trend rate Medical and vision: 6.5 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, 2023 $ 1,464,561 Changes for the year: Service cost 115,634 Interest on total OPEB liability 54,844 Effect of assumptions changes or inputs (13,436) Benefit payments (62,404) Balance as of June 30, 2024 $ 1,559,199 Changes in assumptions is the result of the change in the discount rate from 3.54 percent to 3.65 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 (2.65 percent) or 1- percentage-point higher (4.65 percent) than the current discount rate. A similar sensitivity analysis is then presented for changes in the healthcare trend assumption. 84 City of Tigard, Oregon Notes to Basic Financial Statements 1% Decrease Current Discount 1% Increase (2.65%) Rate (3.65%) (4.65%) Total OPEB Liability $ 1,688,657 $ 1,559,199 $ 1,439,061 Healthcare Cost Trend: Current Health 1% Decrease Care Trend Rates 1% Increase (5.5%) (6.5%) (7.5%) Total OPEB Liability $ 1,385,808 $ 1,559,199 $ 1,761,595 PERS Retirement Health Insurance Account Plan Description As a member of OPERS the city contributes to the 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. 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 Annual Comprehensive Financial Report (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. 85 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 31,2021 actuarial valuation.The rates based on a percentage of payroll, first became effective July 1, 2023.The city's contribution rates for the period were 0.0 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, 2024 was $0. OPEB Asset,OPEB Expense/Income,and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2024,the city reported an asset of$25,136 for its proportionate share of the OPERS net OPEB asset. The net OPEB asset was measured as of June 30, 2023, and the total OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation as of December 31, 2021 rolled forward to June 30, 2023. 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, 2023,the city's proportionate share was 0.0480 percent,which is a decrease from its proportion of 0.0549 percent as of June 30, 2022. For the year ended June 30, 2024, the city recognized OPEB income from this plan of$49,194. At June 30, 2024, the city reported deferred outflows of resources and deferred inflows of resources related to this OPEB plan from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ - $ 631 Change of assumptions - 271 Net difference between projected and actual earnings 71 - Changes in proportionate share 75,548 - Total $ 75,619 $ 902 86 City of Tigard, Oregon Notes to Basic Financial Statements Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year ended June 30: Annual Recognition Amortization Period Ending June 30, 2025 $ 57,775 2026 15,680 2027 929 2028 333 $ 74,717 Actuarial Methods and Assumptions The total OPEB liability in the December 31, 2021 actuarial valuation was determined using the following actuarial methods and assumptions: Measurement date June 30.2023 Experience Study 2020.published July 20 2021 Actuarial assumptions. Actuarial cost method Entry Age Normal 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 Retiree healthcare participation 8-14 Years of Service 10 0% 15-19 Years of Service 11 0% 20-24 Years of Service 14.0% 25-29 Years of Service 22 0% 30+Years of Service.27-0% Healthcare Cost trend rate Applied at beginning of plan year.starting with 5 9% for 2021 decreasing to 4 7%for 2028 increasing to 4 8%for 2037.increasing to 4 9%for 2046.and decreasing to an ultimate rate of 3.9%for 2074 and beyond. Mortality 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.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 lob category adjustments and set-backs as described in the valuation 87 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 January 2023 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. OIC Policy OIC Target Actual Asset ClassiStrategy Range Alocation2 Asset Class/Strategy Allocation Debt Securities 20.0 - 30.0 % 25.0% Debt Securities 20.0% Public Equity 22.5 - 32.5 27.5 Public Equity 23.3 Real Estate 9.0 - 16.5 12.5 Real Estate 13.6 Private Equity 17.5 - 27.5 20.0 Private Equity 26.5 Real Assets 2.5 - 10.0 7.5 Real Assets 9.1 Diversifying Strategies 2.5 - 10.0 7.5 Diversifying Strategies 5.0 Opportunity Portfolio' 0.0 - 5.0 0.0 Opportunity Portfolio 2.5 Total 100.0% Total 100.0% 'Opportunity Portfolio is an investment strategy.Up to 5%of total Fund assets may be invested in it. 2The target alocation of Debt Securities is increased by 5%and Public Equity is reduced by 2.5%from FY2022,and the allocation to Risk Parity is eliminated. 88 City of Tigard, Oregon Notes to Basic Financial Statements Long-Term Expected Rate of Return 1 20-Year Annual Annuallized Annual Target Arithmetic Geometric Standard Asset Class Allocation Return 2 Mean Deviation Global Equity 27.50% 8.57 % 7.07 % 17.99% Private Equity 25.50 12.89 8.83 30.00 Core Fixed Income 25.00 4.59 4.50 4.22 Real Estate 12.25 6.90 5.83 15.13 Master Limited Partnerships 0.75 9.41 6.02 27.04 Infrastructure 1.50 7.88 6.51 17.11 Hedge Fund of Funds-Muttistrategy 1.25 6.81 6.27 9.04 Hedge Fund Equity-Hedge 0.63 7.39 6.48 12.04 Hedge Fund-Macro 5.62 5.44 4.83 7.49 Assumed Inflation-Mean 2.35% 1.41 % ' Based on the OIC Statement of Investment Objectives and Policy Framework for the Oregon Public Employees Retirement Fund, including revisions adopted at the OIC meeting on January 25, 2023. 2 The arithmetic mean is a component that goes into calculating the geometric mean. Expected rates of return are presented using the geometric mean,which the Board uses in setting the discount rate. 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 1% Increase (5.90%) Rate (6.90%) (7.90%) Net OPEB Liability(Asset) $ (22,849) $ (25,136) $ (27,099) 89 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 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.Bov/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, 90 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 cost-of-living adjustment(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 91 City of Tigard, Oregon Notes to Basic Financial Statements employer contributions for a member, the member becomes vested on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years,the date the member reaches normal retirement age,the date the IAP is terminated,the date the active member becomes disabled, or the date the active member dies. Upon retirement, a member of the OPSRP IAP may receive the amounts in his or her employee account, rollover account, and vested employer account as a lump-sum payment or in equal installments over a 5-, 10-, 15-, 20-year period or an anticipated life span option. Each distribution option has a $200 minimum distribution limit. Death Benefits: Upon the death of a non-retired member,the beneficiary receives in a lump sum the member's account balance, rollover account balance, and vested employer optional contribution account balance. If a retired member dies before the installment payments are completed, the beneficiary may receive the remaining installment payments or choose a lump- sum payment. Recordkeeping:OPERS contracts with VOYA Financial to maintain IAP participant records. Contributions: OPERS funding policy provides for monthly employer contributions at actuarially determined rates. These contributions, expressed as a percentage of covered payroll, are intended to accumulate sufficient assets to pay benefits when due. Employer contribution rates for the period were based on the December 31, 2021 actuarial valuation. The rates based on a percentage of payroll,first became effective July 1, 2023.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 $1,891,068. 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$505,863 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, 2024, the city reported a liability of$14,377,774 for its proportionate share of the OPERS net pension liability.The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2021 rolled forward to June 30, 2023.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, 2024 and 2023, the city's proportion of OPERS net pension liability was 0.07676 percent and 0.06846 percent, respectively. 92 City of Tigard, Oregon Notes to Basic Financial Statements Annual Pension Cost For the year ended June 30, 2024, the city recognized pension expense of$2,213,716. At June 30, 2024, 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 $ 703,117 $ 57,009 Changes of assumptions 1,277,236 9,523 Net difference between projected and actual earnings on investments 258,427 - Changes in proportion 1,080,924 271,304 Differences between employer contributions and proportionate share of contributions - 1,092,634 Total (prior to post-MD contributions) 3,319,704 1,430,470 Contributions subsequent to the MD 1,891,068 - Tota I $5,210,772 $1,430,470 Deferred outflows of resources related to pensions of $1,891,068 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, 2025. 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 June 30, 2025 $ 76,388 2026 (425,585) 2027 1,499,210 2028 621,947 2029 117,274 $ 1,889,234 Actuarial Methods and Assumptions The total pension liability in the December 31, 2021 actuarial valuation was determined using the following actuarial methods and assumptions: 93 City of Tigard, Oregon Notes to Basic Financial Statements Actuarial Methods and Assumptions Valuation Date December 31, 2021 Measurement Date June 30, 2023 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 Health retirees and beneficiaries: Pub-2010 Healthy Retiree, sex- distinct, generational with Unisex, Social Security Data Scale, with job category adjustments and set-backs as described in the valuation. Active Members: Pub-2010 Employee, sex-distinct, generational Mortality with Unisex, Social Security Data Scale, with job category adjustments and set-backs as described in the valuation. Disabled retirees: Pub-2010 Disabled Retiree, sex-distinct, generational with Unisex, Social Security Data Scale, with job category adjustments and set-backs as described in the valuation. Actuarial valuations of an ongoing plan involve estimates of the value of projected benefits and assumptions about the probability of events far into the future.Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Experience studies are performed as of December 31 of even numbered years. The methods and assumptions shown above are based on the 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 January 2023 the OPERS Board reviewed long-term assumptions developed by both Milliman's capital market assumptions team and the 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. 94 City of Tigard, Oregon Notes to Basic Financial Statements OIC Policy OIC Target Actual Asset Class,+Strategy Range Allocation' Asset Class/Strategy Allocation Debt Securities 20.0 - 30 0 % 25.0% Debt Secunties 20.0 % Public Equity 22.5 - 32.5 27,5 Public Equity 23 3 Real Estate 9.0 - 16.5 12.5 Real Estate 13.6 Private Equity 17.5 - 27.5 20.0 Private Equity 26.5 Real Assets 2.5 - 10.0 7.5 Real Assets 9.1 Diversifying Strategies 2.5 - 10.0 7.5 Diversifying Strategies 5.0 Opportunity Portfolio' 0,0 - 5.0 0.0 Opportunity Portfolio 2.5 Total 100.0% Total 100.0% 'Opportunity Portfolio is an investment strategy. Up to 5%of total Fund assets may be invested in it. 2The target allocation of Debt Securities is increased by 5%and Public Equity is reduced by 2.5%from FY2022.and the allocation to Risk Parity is elirrinated. Lona-Term Expected Rate of Return` 20-Year Annual Annuualtized Annual Target Arithmetic Geometric Standard Asset Class Allocation Return 2 Mean Deviation Global Equity 27.50 % 8.57% 7.07 % 17.99% Private Equity 25.50 12,89 8.83 30 00 Core Fixed Income 25.00 4.59 4.50 4.22 Real Estate 12 25 6.90 5.83 15.13 Master Limited Partnerships 0 75 9.41 6.02 27.04 Infrastructure 1.50 7.88 6.51 17.11 Hedge Fund of Funds- Multistrategy 1.25 6 81 6.27 9.04 Hedge Fund Equity• Hedge 0..63 7.39 6.48 12.04 Hedge Fund-Macro 5.62 5.44 4.83 7 49 Assumed Inflation-Mean 2.35 % 1 41 °%o ' Based on the OIC Statement of Investment Objectives and Policy Framework for the Oregon Public Employees Retirement Fund, including revisions adopted at the OIC meeting on January 25, 2023. 2 The arithmetic mean is a component that goes into calculating the geometric mean Expected rates of return are presented using the geornetnc mean,wtech the Board uses in setting the discount rate. 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. 95 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 $ 23,749,375 $ 14,377,774 $ 6,534,737 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 Empower, 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 $2,210,020 for the year ended June 30, 2024. 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 96 City of Tigard, Oregon Notes to Basic Financial Statements contribution plan. Amendments to the plan require City Council approval. The Plan is available to any individual who is an elected official of the city or who is employed by the city after completing 30 days of service. Participation in the plan is voluntary. Contributions to fiduciaries that hold the funds in trust for the plans' participants are made through salary withholdings from participating employees up to the amounts specified in the code. No contributions are required by the city. Amounts deferred are not available to employees until termination, retirement, death, or unforeseeable emergency. All assets and income of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries.The amounts accumulated under the 457 plan including investments earnings are excluded from the financial statements of the city. 11.Tax Abatements As of June 30, 2024, 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 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. 97 City of Tigard, Oregon Notes to Basic Financial Statements • A procurement plan increasing purchasing with Tigard based companies is required. • An application fee totaling one tenth of one percent(.001) of the value of the investment for the qualified property that is proposed in the application. This fee is capped at $25,000. • Companies applying for the two-year extended abatement must pay a Community Service Fee. This fee is calculated at a rate of 20 percent of the abated taxes for years four and five.The fee is paid to the city. Applications are reviewed by the city and by the county assessor. Review includes a preauthorization consultation and a review of written application materials. For approved applications, City Council may adopt a resolution finding that: the business is eligible for the exemption under the Act, the size of the proposed investment meets requirements, the employment opportunities provide by the facility or firm and/or the nature of the activities undertaken by the facility or firm within the EZ will significantly enhance the local economy, and the activities of the facility or firm will promote the purposes for which the zone was created and increase employment within the zone. Taxes are abated via an exemption of assessed value from all applicable tax levies. These taxes are abated for a period of three tax years, beginning with the first year the property is placed in service.Applicable tax levies include the permanent rate levies and operating levies for all taxing districts that include the property. Additionally, any community service fees received by the city from participating businesses are restricted for use on economic development activities. 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, 2024,the city's property tax revenues were reduced by an estimated $12,000 as a result of the EZ program. For the fiscal year ended June 30, 2024,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. 98 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, 2024,the city's property tax revenues were reduced by an estimated $68,000 as a result of this program. For fiscal year ended June 30, 2024,the Tigard Urban Renewal's property tax revenues were reduced by an estimated $8,000 as a result of this program. Vertical Housing Development Zone The city's Vertical Housing Development Zone (VHDZ) tax exemption program is authorized by ORS 285C.450 to 285C.480 and 307.864. This ORS allows municipalities to create special districts to encourage mixed-use development. In 2014, the city passed Resolution No. 14- 38 establishing this program. VHDZ allows for partial exemption from property taxes for mixed use multi-story development in core areas of the city.VHDZ encourages development which supports downtown revitalization. Areas 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. 99 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, 2024,the city's property tax revenues were reduced by an estimated $85,000 as a result of this program. For the fiscal year ended June 30, 2024, the Tigard Urban Renewal's property tax revenues were reduced by an estimated $10,000 as a result of this program. For the fiscal year ended June 30, 2024, the city abated property taxes totaling $165,000 under the three programs. For fiscal year ended June 30, 2024, the Tigard Urban Renewal's abated property taxes totaling$19,000 under the three programs. FY 2024 Taxes Abated City of Tigard Urban Tax Abatement Program Tigard Renewal Enterprise Zone $ 12,000 $ 1,000 Non-Profit Low Income Housing Limited Tax Exemption 68,000 8,000 Vertical Housing Development Zone 85,000 10,000 Total $ 165,000 $ 19,000 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 75.07 percent of stormwater service charges collected, in accordance with an agreement between the city and Clean Water Services. During fiscal year 2024, the city paid $17,554,344 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. ioo City of Tigard, Oregon Notes to Basic Financial Statements 13. Risk Management The city is exposed to various risks of loss related to torts; employment liability;theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and others; and natural disasters.The city is insured through a member trust consisting of cities and counties in Oregon and purchases public entity insurance through the trust to deal with liability risks with nominal deductibles. Employee injuries are insured through SAIF, the State Accident Insurance Fund. Settled claims resulting from these risks have not exceeded public entity insurance coverage in any of the past three fiscal years and there has not been any material change to insurance coverages from the previous year. 14.Joint Venture Willamette Intake Facilities Commission Willamette Intake Facilities Commission (the Commission) was organized in April 2018 under 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, 2024: 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 3.3 101 City of Tigard, Oregon Notes to Basic Financial Statements 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, 2024 the city's investment in the WIF was: Investment in joint venture at June 30, 2023 $ 2,226,882 Contributions - Loss for the year (36,423) Investment in joint venture at June 30, 2024 $ 2,190,459 15. Lake Oswego/Tigard Water Partnership The city has an 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 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 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, 2024, the outstanding debt amount for the project is $115,645,148. 102 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. Deficit Fund Balances The city's governmental funds reported combined ending fund balances of $146,363,549, an increase of $16,215,805 or 12.5 percent from fiscal year 2023. Of the combined ending governmental fund balances, a deficit of$1,438,903 of unassigned fund balance is reported in City Center Capital Improvements Fund within the other governmental funds. 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. 103 City of Tigard, Oregon Notes to Basic Financial Statements 18. 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, 2024 are as follows: Project Commitments Lasich Property Site Dev.Plan& Boat Laun $ 125,811 Vactor Flush Sewer Cleaner Truck 406,199 Acel I a 2 year renewal w/18 mo 124,068 Prepare Implementation Plan Meter Modernization 141,451 Cooper Creek/Cook Park Stream 162,803 Copier leases NASPO 140606/OR 118,260 ASR 3 &2 Well house Improvements 1,508,270 Kruger Creek Stabilization 931,853 ASR Wells 2&3 Refurbushment 486,304 SRTS Templeton-Twa I ity Improvements 152,478 Tigard ERP Project Staffing 126,049 Community Land Trust 560,000 Tigard St(Fanno Creek)Bridge Replacement 194,994 Pipeline Renewal and Replacement Program 245,726 Red Rock Creek Stabilization 463,064 Police Body Worn Cameras,Fleet Cameras,Tasers 258,121 Tyler Technologies Public Sector Software Solution 508,352 Ca ch Reservoir&Pump Stations Owner's Rep 421,128 ASR Wells Rehabilitation,Design&Construction 257,300 PMP Preventative Maintenance Chip Seal 611,961 PMP Pavement Maintenance Slurry SeaI 494,325 SRTS Locust Street Si dewa I ks 1,102,889 Safe Streets and Roads for All (SS4A) 315,699 72nd Avenue Pre-Design 514,712 River Terrace 2.0 Planning Services 750,357 River Terrace 2.0 Community Engagement Services 173,425 PMP Engineering and Inspection 629,231 Government Affairs Consulting&Lobbying 144,000 Total Commitments $ 11,928,830 104 Required Supplementary Information CITY OF TIGARD,OREGON GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Property taxes $ 19,931,900 $ 19,931,900 $ 19,808,254 $ (123,646) Licenses and permits 1,887,200 1,887,200 1,356,094 (531,106) Intergovernmental revenues 7,427,600 7,737,600 7,775,227 37,627 Charges for services 266,200 266,200 455,018 188,818 Fines and forfeitures 2,003,000 2,003,000 1,131,186 (871,814) Franchise fees 7,570,700 7,570,700 8,199,638 628,938 Interest and investment earnings 1,247,100 1,247,100 1,684,956 437,856 Miscellaneous revenues 225,000 225,000 296,483 71,483 Total revenues 40,558,700 40,868,700 40,706,856 (161,844) EXPENDITURES Community services 31,739,617 32,534,579 30,510,124 2,024,455 Community development 4,866,001 4,976,001 4,657,139 318,862 Policy and administration 2,346,101 2,546,101 2,079,472 466,629 Contingency 900,000 185,038 - 185,038 Total expenditures 39,851,719 40,241,719 37,246,735 2,994,984 Change in fund balance before other financing sources(uses) _ 706,981 626,981 3,460,121 _ 2,833,140 OTHER FINANCING SOURCES(USES) Transfer in 743,217 823,217 189,000 (634,217) Transfer out (3,319,549) (4,754,049) (3,485,911) 1,268,138 Total other financing(uses) (2,576,332) (3,930,832) (3,296,911) 633,921 Change in fund balance (1,869,351) (3,303,851) 163,210 3,467,061 Fund balance-beginning of the year 31,426,635 31,426,635 34,598,377 3,171,742 Reserve for expenditures and fund balance-end of the year $ 29,557,284 $ 28,122,784 34,761,587 $ 6,638,803 Reconciliation of budgetary fund balance to GAAP basis fund balance: Advances to other funds 883,980 Total fund balance,GAAP basis $ 35,645,567 106 City of Tigard Oregon Schedule of the City's Proportionate Share of the Net Pension Liability(Asset) Oregon Public Employees Retirement System Last Ten Fiscal Years 1'2 2024 2023 2022 City's proportion of the net pension liability (asset) 0.076761% 0.068456% 0.068617% City's proportionate share of the net pension liability(asset) $ 14,377,774 $ 10,481,967 $ 8,211,051 City's covered payroll $ 7,454,550 $ 7,108,063 $ 6,960,595 City's proportionate share of the net pension liability(asset) as a percentage of its covered payroll 192.87% 147.47% 117.96% Plan fiduciary net position as a percentage of the total pension liability 81.68% 84.55% 87.57% 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 2024 is July 1, 2022-June 30, 2023. 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. 107 2021 2020 2019 2018 2017 2016 2015 0.067873% 0.075025% 0.073322% 0.072960% 0.074719% 0.081488% 0.074022% $ 14,812,243 $ 12,977,450 $ 11,107,323 $ 9,835,041 $ 11,216,998 $ 4,678,602 $ (1,677,869) $ 6,307,694 $ 6,331,572 $ 5,941,342 $ 6,280,408 $ 6,610,002 $ 6,187,208 $ 6,025,900 234.83% 204.96% 186.95% 156.60% 169.70% 75.62% -27.84% 75.79% 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. 108 City of Tigard,Oregon Schedule of the City's Contributions Oregon Public Employees Retirement System Last Ten Fiscal Years 2024 2023 2022 2021 2020 Contractually required contributions $ 1,891,068 $ 1,667,814 $ 1,449,229 $ 1,344,480 $ 1,302,699 Contributions in relation to the contractually required contribution (1,891,068) (1,667,814) (1,449,229) (1,344,480) (1,302,699) Contribution deficiency(excess) $ - $ - $ - $ - $ City's covered payroll $ 8,634,665 $ 7,454,550 $ 7,108,063 $ 6,960,595 $ 6,307,694 Contributions as a percentage of covered payroll 21.90% 22.37% 20.39% 19.32% 20.65% NOTES TO SCHEDULE Actuarial Assumptions and Methods Used to Actuarially Determine Contributions: Actuarial Valuation December 31,2021 December 31, 2019 December 31, 2017 Effective July 2023-June 2025 July 2021-June 2023 July 2019-June 2021 Actuarial cost method: Entry Age Normal Entry Age Normal Entry Age Normal Actuarial valuation method: Market Value Market Value Market Value Actuarial assumption: Inflation rate 2.40 percent 2.40 percent 2.50 percent Projected salary increases 3.40 percent 3.40 percent 3.50 percent Investment rate of return 6.90 percent 6.90 percent 7.20 percent 109 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 110 City of Tigard,Oregon Schedule of the Changes in the City's Total OPEB Liability and Related Ratios Implicit Rate Subsidy Plan Last Seven Fiscal Years 1'2 2024 2023 2022 2021 2020 2019 2018 Total OPEB Liability(in 1,000s) Service cost $ 115 $ 135 $ 131 $ 121 $ 109 $ 117 $ 100 Interest 55 34 32 53 52 54 43 Changes in benefit terms - - - - - - - Economic/demographic losses - 108 - (189) - 15 - Changes of assumptions or other inputs (13) (251) 6 (19) 46 (292) (96) Benefit payments (62) (33) (28) (51) (59) (49) (59) Net change in OPEB liability 94 (7) 141 (85) 148 (155) (12) Total OPEB Liability-beginning 1,465 1,472 1,331 1,416 1,268 1,423 1,435 Total OPEB Liability-ending $ 1,559 $ 1,465 $ 1,472 $ 1,331 $ 1,416 $ 1,268 $ 1,423 Covered-employee payroll $ 30,733 $ 28,158 $ 25,775 $ 24,881 $ 23,214 $ 21,705 $ 21,438 Total OPEB Liability as a%of covered- employee payroll 5.07% 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 2024 is July 1,2022-June 30,2023. 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. 111 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 Eight Fiscal Years''2 2024 2023 2022 2021 2020 2019 2018 2017 City's proportion of the net OPEB liability(asset) 0.0069% 0.0480% 0.0549% 0.0345% 0.0607% 0.0579% 0.0613% 0.0675% City's proportionate share of the net OPEB liability(asset) $ (25,136) $ (170,699) $ (188,697) $ (70,282) $ (117,368) $ (64,649) $ (25,563) $ 18,323 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 $ 6,610,002 City's proportionate share of the net OPEB liability(asset)as a percentage of its covered payroll -0.3% -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 201.6% 194.6% 183.9% 150.1% 144.4% 124.0% 108.9% 80.5% 110-year trend information required by GASB Statement 75 will be presented prospectively. 2 Amounts presented are for the measurement period reported during the fiscal year,which for FY 2024 is July 1,2022-June 30,2023. 112 City of Tigard,Oregon Schedule of the City's Contributions Oregon Public Employees Retirement System,Retirement Health Insurance Account Last Eight Fiscal Years' 2024 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 $8,634,665 $ 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% 0.00% 0.02% 0.03% 0.04% 0.48% 0.49% 0.51% '10-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 31,2021 December 31,2019 December 31,2017 December 31,2015 December 31,201 Effective July 2023-June 2025 July 2021-June 2023 July 2019-June 2021 July 2017-June 2019 July 2015-June 20: Actuarial cost method: Entry Age Normal Entry Age Normal Entry Age Normal Entry Age Normal Entry Age Norma Actuarial valuation method: Market Value Market Value Market Value Market Value Market Value Actuarial assumption: Inflation rate 2.40 percent 2.40 percent 2.50 percent 2.50 percent 2.75 percent Projected salary increases 3.40 percent 3.40 percent 3.50 percent 3.50 percent 3.75 percent Investment rate of return 7.40 percent 7.40 percent 7.20 percent 7.50 percent 7.75 percent 113 Other Supplementary Information 114 CITY OF TIGARD,OREGON FACILITIES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Interest and investment earnings $ 61,100 $ 61,100 $ 20,919 $ (40,181) Miscellaneous revenues - - 3 3 Total revenues 61,100 61,100 20,922 (40,178) EXPENDITURES Capital improvements 17,310,000 18,952,000 16,470,973 2,481,027 Change in fund balance before other financing sources(uses) (17,248,900) (18,890,900) (16,450,051) 2,440,849 OTHER FINANCING SOURCES(USES) Transfer in 17,310,000 18,952,000 16,459,089 (2,492,911) Transfer out (36) (36) (36) - Total other financing(uses) 17,309,964 18,951,964 16,459,053 (2,492,911) Change in fund balance 61,064 61,064 9,002 (52,062) Fund balance-beginning of the year 1,527,000 1,527,000 900,476_ (626,524) Reserve for expenditures and fund balance-end of the year $ 1,588,064 $ 1,588,064 $ 909,478 $ (678,586) 115 CITY OF TIGARD,OREGON NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET June 30,2024 Special Revenue Debt Service Capital Project Funds Funds Funds Total ASSETS Cash and investments $ 5,002,692 $ - $ 12,382,066 $ 17,384,758 Accounts receivable 1,577,071 32,925 1,194,744 2,804,740 Property taxes receivable 35,759 81,080 - 116,839 Notes receivable - - 500,000 500,000 Restricted cash and investments 38,519,156 7,326,123 50,494,160 96,339,439 Total assets $ 45,134,678 $ 7,440,128 $ 64,570,970 $ 117,145,776 LIABILITIES Accounts payable and accrued liabilities $ 1,849,552 $ - $ 1,338,949 $ 3,188,501 Due to others 115,474 - - 115,474 Unearned revenue 157,867 - - 157,867 Deposits 1,744,833 - - 1,744,833 Advances from other funds - - 1,811,513 1,811,513 Total liabilities 3,867,726 - _ 3,150,462 7,018,188 DEFERRED INFLOWS OF RESOURCES Unavailable revenue Property taxes - 65,688 - 65,688 Transportation refund credits 38,485 - - 38,485 Intergovernmental - - 211,498 211,498 Special assessment liens - - 3,413 3,413 Total deferred inflow of resources 38,485 65,688 214,911 319,084 FUND BALANCE Restricted for: Affordable housing 3,970,957 - - 3,970,957 Building inspection 14,284,990 - - 14,284,990 Debt service - 7,374,440 - 7,374,440 Library improvements 648,561 - - 648,561 Parks development - - 11,870,847 11,870,847 Police services 3,641,211 - - 3,641,211 Street maintenance 12,216,662 - 37,304,978 49,521,640 Tourism 1,830,494 - - 1,830,494 Underground utilities - - 737,213 737,213 Urban development - - 6,318,674 6,318,674 Committed for: Street maintenance - - 6,412,788 6,412,788 Urban forestry 1,150,031 - - 1,150,031 Assigned for: Park and recreation 3,485,561 - - 3,485,561 Unassigned - - (1,438,903) (1,438,903) Total fund balances 41,228,467 7,374,440 61,205,597 109,808,504 Total liabilities,deferred inflow of resources,and fund balances $ 45,134,678 $ 7,440,128 $ 64,570,970 $ 117,145,776 116 CITY OF TIGARD,OREGON NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE For the year ended June 30,2024 Special Revenue Debt Service Capital Project Funds Funds Funds Total REVENUES Property taxes $ 2,350,858 $ 5,300,576 $ - $ 7,651,434 Gas and vehicle taxes 6,337,904 - - 6,337,904 Hotel and motel taxes 766,024 - - 766,024 Construction excise taxes 1,726,664 - - 1,726,664 Licenses and permits 4,250,833 - - 4,250,833 Intergovernmental revenues 306,898 - 1,476,964 1,783,862 Charges for services 2,968,588 - 4,151,975 7,120,563 System development charges - - 13,887,247 13,887,247 Fines and forfeitures 543,623 - - 543,623 Interest and investment earnings 1,781,660 388,652 2,429,865 4,600,177 Miscellaneous revenues 72,835 - 2,525 75,360 Total revenues 21,105,887 5,689,228 21,948,576 48,743,691 EXPENDITURES Community services 2,472,793 - - 2,472,793 Public works 9,222,240 - - 9,222,240 Community development 3,162,855 - 662,851 3,825,706 Capital improvements - - 15,166,803 15,166,803 Debt Service - 3,859,579 - 3,859,579 Total expenditures 14,857,888 3,859,579 15,829,654 34,547,121 Change in fund balance before other financing sources(uses) 6,247,999 1,829,649 6,118,922 14,196,570 OTHER FINANCING SOURCES(USES) Transfer in 3,123,500 - 11,695,132 14,818,632 Transfer out (2,904,335) (876,910) (9,190,363) (12,971,608) Total other financing(uses) 219,165 (876,910) 2,504,769 1,847,024 Change in fund balance 6,467,164 952,739 8,623,691 16,043,594 Fund balance-beginning of the year, as previously reported 34,761,303 6,421,701 53,482,382 94,665,386 Adjustment-Change from nonmajor fund to major fund - - (900,476) (900,476) Fund balance-beginning of the year, as adjusted 34,761,303 6,421,701 52,581,906 93,764,910 Fund balance-end of the year $ 41,228,467 $ 7,374,440 $ 61,205,597 $ 109,808,504 117 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. Pandemic Relief Fund–This fund accounts for the amounts received from the pandemic related ARPA funds for assisting houselessness and establishing community support services. 118 CITY OF TIGARD,OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30,2024 Transient Construction Electrical City Gas Tax Transportation Lodging Tax Excise Tax Inspection Gas Tax Fund Fund TNC Fund Fund Fund Fund ASSETS Cash and investments $ - $ - $ - $ - $ - $ - Accounts receivable 641,571 101,645 79,439 152,097 166,552 2,374 Property taxes receivable - - - - - - Restricted cash and investments 10,064,845 2,611,190 161,148 1,678,397 4,163,708 624,732 Total assets $ 10,706,416 $ 2,712,835 $ 240,587 $ 1,830,494 $ 4,330,260 $ 627,106 LIABILITIES Accounts payable and accrued liabilities $ 168,017 $ - $ - $ - $ 359,303 $ 8,718 Due to others - - - - - 603 Unearned revenue - - 79,066 - - - Deposits 1,157,608 - - - - - Total liabilities 1,325,625 - 79,066 - 359,303 9,321 DEFERRED INFLOWS OF RESOURCES Unavailable revenue Transportation refund credits 26,121 12,364 - - - FUND BALANCE Restricted for: Affordable housing - - - - 3,970,957 - Building inspection - - - - - 617,785 Library improvements - - - - - - Police services - - - - - - Street maintenance 9,354,670 2,700,471 161,521 - - - Tourism - - - 1,830,494 - - Committed for: Urban forestry - - - - - - Assigned for: Park and recreation - - - - - - Total fund balances 9,354,670 2,700,471 161,521 1,830,494 3,970,957 617,785 Total liabilities,deferred inflow of resources,and fund balances $ 10,706,416 $ 2,712,835 $ 240,587 $ 1,830,494 $ 4,330,260 $ 627,106 119 Criminal Library Forfeiture Urban Parks Utility Police Levy Donations and Pandemic Building Fund Fund Forestry Fund Fund Fund Bequest Fund Relief Fund Total $ - $ - $ 1,720,586 $ 3,282,106 $ - $ - $ - $ 5,002,692 43,173 4,196 8,527 364,748 10,090 2,659 - 1,577,071 - - - 35,759 - - 35,759 14,781,398 2,059,738 - - 1,678,098 695,902 - 38,519,156 $ 14,824,571 $ 2,063,934 $ 1,729,113 $ 3,646,854 $ 1,723,947 $ 698,561 $ - $ 45,134,678 $ 1,085,745 $ - $ - $ 161,293 $ 66,476 $ - $ - $ 1,849,552 63,478 51,393 - - - - - 115,474 - - - 28,801 50,000 - 157,867 8,143 - 579,082 - - - - 1,744,833 1,157,366 51,393 579,082 161,293 95,277 50,000 - 3,867,726 - - - - - - - 38,485 - - - - - 3,970,957 13,667,205 - - - - - - 14,284,990 - - - - 648,561 - 648,561 2,012,541 - - 1,628,670 - - 3,641,211 - - - - - - - 12,216,662 - - - - - - - 1,830,494 - 1,150,031 - - - - 1,150,031 3,485,561 - - - 3,485,561 13,667,205 2,012,541 1,150,031 3,485,561 1,628,670 648,561 - 41,228,467 $ 14,824,571 $ 2,063,934 $ 1,729,113 $ 3,646,854 $ 1,723,947 $ 698,561 $ - $ 45,134,678 120 CITY OF TIGARD,OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE For the year ended June 30,2024 Transient Construction Electrical City Gas Tax Transportation Lodging Tax Excise Tax Inspection Gas Tax Fund Fund TNC Fund Fund Fund Fund REVENUES Property taxes $ - $ - $ - $ - $ - $ - Gas and vehicle taxes 5,512,149 825,755 - - - - Hotel and motel taxes - - - 766,024 - - Construction excise taxes - - - - 1,726,664 - Licenses and permits 12,393 - 49,397 - - 347,859 Intergovernmental revenues - - - - 165,000 - Charges for services - - - - - - Fines and forfeitures - - - - - - Interest and investment earnings 422,146 149,110 7,457 65,429 137,448 25,992 Miscellaneous revenues 47,405 - - - - - Total revenues 5,994,093 974,865 56,854 831,453 2,029,112 373,851 EXPENDITURES Community services - - - - - - Public works 4,059,133 - - - - - Community development - - 56,650 - 165,000 - Total expenditures 4,059,133 - 56,650 - 165,000 - Change in fund balance before other financing sources(uses) 1,934,960 974,865 204 831,453 1,864,112 373,851 OTHER FINANCING SOURCES(USES) Transfer in 208,500 - - - - - Transfer out (1,176,046) (1,047,664) - (192,111) (864) (253,437) Total other financing(uses) (967,546) (1,047,664) - (192,111) (864) (253,437) Change in fund balance 967,414 (72,799) 204 639,342 1,863,248 120,414 Fund balance-beginning of the year 8,387,256 2,773,270 161,317 1,191,152 2,107,709 497,371 Fund balance-end of the year $ 9,354,670 $ 2,700,471 $ 161,521 $ 1,830,494 $ 3,970,957 $ 617,785 121 Criminal Library Forfeiture Urban Parks Utility Police Levy Donations and Pandemic Building Fund Fund Forestry Fund Fund Fund Bequest Fund Relief Fund Total $ - $ - $ - $ - $ 2,350,858 $ - $ - $ 2,350,858 - - - - - - 6,337,904 - - - - - - - 766,024 - - - - - - - 1,726,664 3,841,184 - - - - - - 4,250,833 141,898 - - - - - - 306,898 - - 23,516 2,945,072 - - - 2,968,588 - 543,623 - - - - - 543,623 598,418 86,045 79,225 102,407 77,070 30,913 - 1,781,660 9,828 - - 15,602 - - - 72,835 4,591,328 629,668 102,741 3,063,081 2,427,928 30,913 - 21,105,887 - 178,713 - - 2,294,080 - - 2,472,793 - - - 5,163,107 - - - 9,222,240 2,941,205 - - - - - - 3,162,855 2,941,205 178,713 - 5,163,107 2,294,080 - - 14,857,888 1,650,123 450,955 102,741 (2,100,026) 133,848 30,913 - 6,247,999 250,000 - - 2,665,000 - - - 3,123,500 (5,861) (120,012) (52,637) (55,703) - - - (2,904,335) 244,139 (120,012) (52,637) 2,609,297 - - - 219,165 1,894,262 330,943 50,104 509,271 133,848 30,913 - 6,467,164 11,772,943 1,681,598 1,099,927 2,976,290 1,494,822 617,648 - 34,761,303 $ 13,667,205 $ 2,012,541 $ 1,150,031 $ 3,485,561 $ 1,628,670 $ 648,561 $ - $ 41,228,467 122 CITY OF TIGARD,OREGON GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Gas and vehicle taxes $ 5,304,800 $ 5,304,800 $ 5,512,149 $ 207,349 Licenses and permits 7,000 7,000 12,393 5,393 Interest and investment earnings 270,100 270,100 422,146 152,046 Miscellaneous revenues 47,000 47,000 47,405 405 Total revenues 5,628,900 5,628,900 5,994,093 365,193 EXPENDITURES Public works 4,275,837 4,275,837 4,059,133 216,704 Change in fund balance before other financing sources(uses) 1,353,063 1,353,063 1,934,960 581,897 OTHER FINANCING SOURCES(USES) Transfer in 208,500 208,500 208,500 - Transfer out (3,778,842) (2,276,051) (1,176,046) 1,100,005 Total other financing(uses) (3,570,342) (2,067,551) (967,546) 1,100,005 Change in fund balance (2,217,279) (714,488) 967,414 1,681,902 Fund balance-beginning of the year 6,753,000 6,753,000 8,387,256 1,634,256 Reserve for expenditures and fund balance-end of the year $ 4,535,721 $ 6,038,512 $ 9,354,670 $ 3,316,158 123 CITY OF TIGARD,OREGON CITY GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Gas and vehicle taxes $ 960,700 $ 960,700 $ 825,755 $ (134,945) Interest and investment earnings 95,600 95,600 149,110 53,510 Total revenues 1,056,300 1,056,300 974,865 (81,435) OTHER FINANCING SOURCES(USES) Transfer out (775,299) (2,556,299) (1,047,664) 1,508,635 Change in fund balance 281,001 (1,499,999) (72,799) 1,427,200 Fund balance-beginning of the year 2,389,000 2,389,000 2,773,270 384,270 Reserve for expenditures and fund balance-end of the year $ 2,670,001 $ 889,001 $ 2,700,471 $ 1,811,470 124 CITY OF TIGARD,OREGON TRANSPORTATION TNC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Licenses and permits $ 100,000 $ 100,000 $ 49,397 $ (50,603) Interest and investment earnings 11,000 11,000 7,457 (3,543) Total revenues 111,000 111,000 56,854 (54,146) EXPENDITURES Community development - 56,650 56,650 - Change in fund balance 111,000 54,350 204 (54,146) Fund balance-beginning of the year 275,000 275,000 161,317 (113,683) Reserve for expenditures and fund balance-end of the year $ 386,000 $ 329,350 $ 161,521 $ (167,829) 125 CITY OF TIGARD,OREGON TRANSIENT LODGING TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Hotel and motel taxes $ 832,000 $ 832,000 $ 766,024 $ (65,976) Interest and investment earnings 5,200 5,200 65,429 60,229 Total revenues 837,200 837,200 831,453 (5,747) OTHER FINANCING SOURCES(USES) Transfer out (192,111) (272,111) (192,111) 80,000 Change in fund balance 645,089 565,089 639,342 74,253 Fund balance-beginning of the year 1,224,000 1,224,000 1,191,152 (32,848) Reserve for expenditures and fund balance-end of the year $ 1,869,089 $ 1,789,089 $ 1,830,494 $ 41,405 126 CITY OF TIGARD,OREGON CONSTRUCTION EXCISE TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Construction excise taxes $ 900,000 $ 900,000 $ 1,726,664 $ 826,664 Intergovernmental revenues 141,481 141,481 165,000 23,519 Interest and investment earnings 50,300 50,300 137,448 87,148 Total revenues 1,091,781 1,091,781 2,029,112 937,331 EXPENDITURES Community development 541,481 541,481 165,000 376,481 Change in fund balance before other financing sources(uses) 550,300 550,300 1,864,112 1,313,812 OTHER FINANCING SOURCES(USES) Transfer out (864) (864) (864) - Change in fund balance 549,436 549,436 1,863,248 1,313,812 Fund balance-beginning of the year 1,257,000 1,257,000 2,107,709 850,709 Reserve for expenditures and fund balance-end of the year $ 1,806,436 $ 1,806,436 $ 3,970,957 $ 2,164,521 127 CITY OF TIGARD,OREGON ELECTRICAL INSPECTION FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Licenses and permits $ 345,000 $ 345,000 $ 347,859 $ 2,859 Interest and investment earnings 20,000 20,000 25,992 5,992 Total revenues 365,000 365,000 373,851 8,851 OTHER FINANCING SOURCES(USES) Transfer out (253,437) (253,437) (253,437) - Change in fund balance 111,563 111,563 120,414 8,851 Fund balance-beginning of the year 500,000 500,000 497,371 (2,629) Reserve for expenditures and fund balance-end of the year $ 611,563 $ 611,563 $ 617,785 $ 6,222 128 CITY OF TIGARD,OREGON BUILDING FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Licenses and permits $ 3,379,000 $ 3,379,000 $ 3,841,184 $ 462,184 Intergovernmental revenues 43,000 43,000 141,898 98,898 Interest and investment earnings 446,600 446,600 598,418 151,818 Miscellaneous revenues 5,600 5,600 9,828 4,228 Total revenues 3,874,200 3,874,200 4,591,328 717,128 EXPENDITURES Community development 3,075,252 3,075,252 2,941,205 134,047 Change in fund balance before other financing sources(uses) 798,948 798,948 1,650,123 851,175 OTHER FINANCING SOURCES(USES) Transfer in 250,000 250,000 250,000 - Transfer out (6,000) (5,861) 139 Total other financing(uses) 250,000 244,000 244,139 139 Change in fund balance 1,048,948 1,042,948 1,894,262 851,314 Fund balance-beginning of the year 11,165,000 11,165,000 11,772,943 607,943 Reserve for expenditures and fund balance-end of the year $ 12,213,948 $ 12,207,948 $ 13,667,205 $ 1,459,257 129 CITY OF TIGARD,OREGON CRIMINAL FORFEITURE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Fines and forfeitures $ 100,000 $ 100,000 $ 543,623 $ 443,623 Interest and investment earnings 44,200 44,200 86,045 41,845 Total revenues 144,200 144,200 629,668 485,468 EXPENDITURES Community services 604,223 629,223 178,713 450,510 Change in fund balance before other financing sources(uses) (460,023) (485,023) 450,955 935,978 OTHER FINANCING SOURCES(USES) Transfer out (12) (120,012) (120,012) - Change in fund balance (460,035) (605,035) 330,943 935,978 Fund balance-beginning of the year 1,105,000 1,105,000 1,681,598 576,598 Reserve for expenditures and fund balance-end of the year $ 644,965 $ 499,965 $ 2,012,541 $ 1,512,576 130 CITY OF TIGARD,OREGON URBAN FORESTRY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 10,000 $ 10,000 $ 23,516 $ 13,516 Interest and investment earnings 38,900 38,900 79,225 40,325 Total revenues 48,900 48,900 102,741 53,841 OTHER FINANCING SOURCES(USES) Transfer out (151,682) (151,682) (52,637) 99,045 Change in fund balance (102,782) (102,782) 50,104 152,886 Fund balance-beginning of the year 973,000 973,000 1,099,927 126,927 Reserve for expenditures and fund balance-end of the year $ 870,218 $ 870,218 $ 1,150,031 $ 279,813 131 CITY OF TIGARD,OREGON PARKS UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 2,704,700 $ 2,704,700 $ 2,945,072 $ 240,372 Interest and investment earnings 99,500 99,500 102,407 2,907 Miscellaneous revenues 2,000 2,000 15,602 13,602 Total revenues 2,806,200 2,806,200 3,063,081 256,881 EXPENDITURES Public works 5,691,083 5,691,083 5,163,107 527,976 Change in fund balance before other financing sources(uses) (2,884,883) (2,884,883) (2,100,026) 784,857 OTHER FINANCING SOURCES(USES) Transfer in 2,665,000 2,665,000 2,665,000 - Transfer out (54,447) (55,847) (55,703) 144 Total other financing(uses) 2,610,553 2,609,153 2,609,297 144 Change in fund balance (274,330) (275,730) 509,271 785,001 Fund balance-beginning of the year 2,487,000 2,487,000 2,976,290 489,290 Reserve for expenditures and fund balance-end of the year $ 2,212,670 $ 2,211,270 $ 3,485,561 $ 1,274,291 132 CITY OF TIGARD,OREGON POLICE LEVY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Property taxes $ 2,247,500 $ 2,247,500 $ 2,350,858 $ 103,358 Interest and investment earnings 48,100 48,100 77,070 28,970 Total revenues 2,295,600 2,295,600 2,427,928 132,328 EXPENDITURES Community services 2,384,669 2,552,885 2,294,080 258,805 Change in fund balance (89,069) (257,285) 133,848 391,133 Fund balance-beginning of the year 1,202,000 1,202,000 1,494,822 292,822 Reserve for expenditures and fund balance-end of the year $ 1,112,931 $ 944,715 $ 1,628,670 $ 683,955 133 CITY OF TIGARD,OREGON LIBRARY DONATIONS AND BEQUEST FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Interest and investment earnings $ 20,400 $ 20,400 $ 30,913 $ 10,513 Fund balance-beginning of the year 510,000 510,000 617,648 107,648 Reserve for expenditures and fund balance-end of the year $ 530,400 $ 530,400 $ 648,561 $ 118,161 134 CITY OF TIGARD,OREGON PANDEMIC RELIEF FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget EXPENDITURES Policy and administration $ 1,507,755 $ 1,507,755 $ - $ 1,507,755 OTHER FINANCING SOURCES(USES) Transfer out (1,344,217) (1,344,217) - 1,344,217 Change in fund balance (2,851,972) (2,851,972) - 2,851,972 Fund balance-beginning of the year 4,004,365 4,004,365 - (4,004,365) Reserve for expenditures and fund balance-end of the year $ 1,152,393 $ 1,152,393 $ - $ (1,152,393) 135 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. 136 CITY OF TIGARD,OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING BALANCE SHEET June 30,2024 City Center Tigard Triangle Bancroft Debt GO Debt Debt Service Debt Service Service Fund Service Fund Fund Fund Total ASSETS Accounts receivable $ 879 $ 16,032 $ 7,506 $ 8,508 $ 32,925 Property taxes receivable - 43,793 14,082 23,205 81,080 Restricted cash and investments 354,784 2,176,399 1,604,532 3,190,408 7,326,123 Total assets $ 355,663 $ 2,236,224 $ 1,626,120 $ 3,222,121 $ 7,440,128 DEFERRED INFLOWS OF RESOURCES Unavailable revenue Property taxes $ - $ 35,711 $ 11,395 $ 18,582 $ 65,688 FUND BALANCE Restricted for: Debt service 355,663 2,200,513 1,614,725 3,203,539 7,374,440 Total liabilities,deferred inflow of resources,and fund balances $ 355,663 $ 2,236,224 $ 1,626,120 $ 3,222,121 $ 7,440,128 137 CITY OF TIGARD,OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE For the year ended June 30,2024 City Center Tigard Triangle Bancroft Debt GO Debt Debt Service Debt Service Service Fund Service Fund Fund Fund Total REVENUES Property taxes $ - $ 2,721,428 $ 929,133 $ 1,650,015 $ 5,300,576 Interest and investment earnings 15,745 130,214 109,906 132,787 388,652 Total revenues 15,745 2,851,642 1,039,039 1,782,802 5,689,228 EXPENDITURES Debt Service - 2,653,185 528,708 677,686 3,859,579 Change in fund balance before other financing sources(uses) 15,745 198,457 510,331 1,105,116 1,829,649 OTHER FINANCING SOURCES(USES) Transfer out - - (876,910) - (876,910) Change in fund balance 15,745 198,457 (366,579) 1,105,116 952,739 Fund balance-beginning of the year 339,918 2,002,056 1,981,304 2,098,423 6,421,701 Fund balance-end of the year $ 355,663 $ 2,200,513 $ 1,614,725 $ 3,203,539 $ 7,374,440 138 CITY OF TIGARD,OREGON BANCROFT DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Interest and investment earnings $ 13,400 $ 13,400 $ 15,745 $ 2,345 Fund balance-beginning of the year 334,000 334,000 339,918 5,918 Reserve for expenditures and fund balance-end of the year $ 347,400 $ 347,400 $ 355,663 $ 8,263 139 CITY OF TIGARD,OREGON GO DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Property taxes $ 3,005,700 $ 3,005,700 $ 2,721,428 $ (284,272) Interest and investment earnings 87,900 87,900 130,214 42,314 Total revenues 3,093,600 3,093,600 2,851,642 (241,958) EXPENDITURES Debt Service 2,652,187 2,652,187 2,653,185 (998) Change in fund balance 441,413 441,413 198,457 (242,956) Fund balance-beginning of the year 2,197,000 2,197,000 2,002,056 (194,944) Reserve for expenditures and fund balance-end of the year $ 2,638,413 $ 2,638,413 $ 2,200,513 $ (437,900) 140 CITY OF TIGARD,OREGON CITY CENTER DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Property taxes $ 848,511 $ 848,511 $ 929,133 $ 80,622 Interest and investment earnings 4,035 4,035 109,906 105,871 Total revenues 852,546 852,546 1,039,039 186,493 EXPENDITURES Debt Service 574,750 574,750 603,496 (28,746) Change in fund balance before other financing sources(uses) 277,796 277,796 435,543 157,747 OTHER FINANCING SOURCES(USES) Transfer out (1,270,000) (1,270,000) (802,122) 467,878 Change in fund balance (992,204) (992,204) (366,579) 625,625 Fund balance-beginning of the year 1,031,989 1,031,989 1,981,304 949,315 Reserve for expenditures and fund balance-end of the year $ 39,785 $ 39,785 $ 1,614,725 $ 1,574,940 141 CITY OF TIGARD,OREGON TIGARD TRIANGLE DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Property taxes $ 1,574,893 $ 1,574,893 $ 1,650,015 $ 75,122 Interest and investment earnings 5,317 5,317 132,787 127,470 Total revenues 1,580,210 1,580,210 1,782,802 202,592 EXPENDITURES Debt Service 745,000 745,000 677,686 67,314 Change in fund balance before other financing sources(uses) 835,210 835,210 1,105,116 269,906 OTHER FINANCING SOURCES(USES) Transfer out (630,000) (630,000) - 630,000 Change in fund balance 205,210 205,210 1,105,116 899,906 Fund balance-beginning of the year 388,194 388,194 2,098,423 1,710,229 Reserve for expenditures and fund balance-end of the year $ 593,404 $ 593,404 $ 3,203,539 $ 2,610,135 142 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: 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. 143 CITY OF TIGARD,OREGON NONMAJOR CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30,2024 Transportation Street Development Underground Maintenance Transportation Tax Fund Utility Fund Fund SDC Fund ASSETS Cash and investments $ - $ - $ - $ 12,382,066 Accounts receivable 72,217 3,371 548,618 47,266 Notes receivable - - - - Restricted cash and investments 23,554,244 733,842 5,878,950 - Total assets $ 23,626,461 $ 737,213 $ 6,427,568 $ 12,429,332 LIABILITIES Accounts payable and accrued liabilities $ - $ - $ 14,780 $ - Advances from other funds - - - - Total liabilities - - 14,780 - DEFERRED INFLOWS OF RESOURCES Unavailable revenue Intergovernmental - - - - Special assessment liens 3,413 - - Total deferred inflow of resources 3,413 - - - FUND BALANCE Restricted for: Parks development - - - - Street maintenance 23,623,048 - - 12,429,332 Underground utilities - 737,213 - - Urban development - - - - Committed for: Street maintenance - - 6,412,788 - Unassigned - - - - Total fund balances 23,623,048 737,213 6,412,788 12,429,332 Total liabilities,deferred inflow of resources,and fund balances $ 23,626,461 $ 737,213 $ 6,427,568 $ 12,429,332 144 City Center Tigard Triangle Capital Capital Parks Capital Parks Bond Transportation Improvements Improvements Fund Fund Parks SDC Fund CIP Fund Fund Fund Total $ - $ - $ - $ - $ - $ - $ 12,382,066 23,364 - 51,105 418,165 2,837 27,801 1,194,744 - - - - 500,000 500,000 400,888 830,497 10,657,648 1,975,568 442,781 6,019,742 50,494,160 $ 424,252 $ 830,497 $ 10,708,753 $ 2,393,733 $ 445,618 $ 6,547,543 $ 64,570,970 $ 92,655 $ - $ - $ 929,637 $ 301,877 $ - $ 1,338,949 - - - 1,582,644 228,869 1,811,513 92,655 - - 929,637 1,884,521 228,869 3,150,462 - - 211,498 - - 211,498 - - - - - 3,413 - - 211,498 - - 214,911 331,597 830,497 10,708,753 - - - 11,870,847 - - 1,252,598 - - 37,304,978 - - - - - - 737,213 - - - - - 6,318,674 6,318,674 - - - - - 6,412,788 - - - (1,438,903) - (1,438,903) 331,597 830,497 10,708,753 1,252,598 (1,438,903) 6,318,674 61,205,597 $ 424,252 $ 830,497 $ 10,708,753 $ 2,393,733 $ 445,618 $ 6,547,543 $ 64,570,970 145 CITY OF TIGARD,OREGON NONMAJOR CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE For the year ended June 30,2024 Transportation Street Development Underground Maintenance Transportation Parks Capital Tax Fund Utility Fund Fund SDC Fund Fund REVENUES Intergovernmental revenues $ - $ - $ - $ - $ 78,074 Charges for services - 8,350 4,082,424 - - System development charges 5,296,523 - - 3,789,688 - Interest and investment earnings 954,939 33,167 250,553 579,142 - Miscellaneous revenues _ - - 89 - 58 Total revenues 6,251,462 41,517 4,333,066 4,368,830 78,132 EXPENDITURES Community development - - - - - Capital improvements - - 2,754,239 - 6,914,069 Total expenditures - - 2,754,239 - 6,914,069 Change in fund balance before other financing sources(uses) 6,251,462 41,517 1,578,827 4,368,830 (6,835,937) OTHER FINANCING SOURCES(USES) Transfer in - - - - 6,865,205 Transfer out (1,382,779) (891) (346,110) (3,282,802) - Total other financing(uses) (1,382,779) (891) (346,110) (3,282,802) 6,865,205 Change in fund balance 4,868,683 40,626 1,232,717 1,086,028 29,268 Fund balance-beginning of the year, as previously reported 18,754,365 696,587 5,180,071 11,343,304 302,329 Adjustment-Change from nonmajor fund to major fund - - - - - Fund balance-beginning of the year, as adjusted 18,754,365 696,587 5,180,071 11,343,304 302,329 Fund balance-end of the year $ 23,623,048 $ 737,213 $ 6,412,788 $ 12,429,332 $ 331,597 146 City Center Tigard Triangle (Formerly Capital Capital nonmajor) Parks Bond Transportation Improvements Improvements Facilities Fund Parks SDC Fund CIP Fund Fund Fund Capital Projects Total $ - $ - $ 1,398,890 $ - $ - $ 1,476,964 - 61,201 - - 4,151,975 4,801,036 - - - 13,887,247 48,809 504,260 - 2,361 56,634 2,429,865 2,378 - - 2,525 48,809 5,305,296 1,462,469 2,361 56,634 21,948,576 - - - 426,148 236,703 662,851 - - 5,122,521 375,974 - 15,166,803 - - 5,122,521 802,122 236,703 15,829,654 48,809 5,305,296 (3,660,052) (799,761) (180,069) 6,118,922 - - 3,953,017 876,910 - 11,695,132 - (4,177,781) - - - (9,190,363) (4,177,781) 3,953,017 876,910 - 2,504,769 48,809 1,127,515 292,965 77,149 (180,069) 8,623,691 781,688 9,581,238 959,633 (1,516,052) 6,498,743 900,476 53,482,382 - - - - - (900,476) (900,476) 781,688 9,581,238 959,633 (1,516,052) 6,498,743 52,581,906 $ 830,497 $ 10,708,753 $ 1,252,598 $ (1,438,903) $ 6,318,674 $ 61,205,597 147 CITY OF TIGARD,OREGON TRANSPORTATION DEVELOPMENT TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES System development charges $ 1,820,000 $ 1,820,000 $ 5,296,523 $ 3,476,523 Interest and investment earnings 652,500 652,500 954,939 302,439 Total revenues 2,472,500 2,472,500 6,251,462 3,778,962 OTHER FINANCING SOURCES(USES) Transfer out (2,209,674) (2,272,674) (1,382,779) 889,895 Change in fund balance 262,826 199,826 4,868,683 4,668,857 Fund balance-beginning of the year 16,312,000 16,312,000 18,754,365 2,442,365 Reserve for expenditures and fund balance-end of the year $ 16,574,826 $ 16,511,826 $ 23,623,048 $ 7,111,222 148 CITY OF TIGARD,OREGON UNDERGROUND UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 75,000 $ 75,000 $ 8,350 $ (66,650) Interest and investment earnings 28,300 28,300 33,167 4,867 Total revenues 103,300 103,300 41,517 (61,783) OTHER FINANCING SOURCES(USES) Transfer out (26,891) (26,891) (891) 26,000 Change in fund balance 76,409 76,409 40,626 (35,783) Fund balance-beginning of the year 707,000 707,000 696,587 (10,413) Reserve for expenditures and fund balance-end of the year $ 783,409 $ 783,409 $ 737,213 $ (46,196) 149 CITY OF TIGARD,OREGON STREET MAINTENANCE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,525,900 $ 3,525,900 $ 4,082,424 $ 556,524 Interest and investment earnings 188,900 188,900 250,553 61,653 Miscellaneous revenues - - 89 89 Total revenues 3,714,800 3,714,800 4,333,066 618,266 EXPENDITURES Capital improvements 3,540,000 3,540,000 2,754,239 785,761 Change in fund balance before other financing sources(uses) 174,800 174,800 1,578,827 1,404,027 OTHER FINANCING SOURCES(USES) Transfer out (346,110) (346,110) _ (346,110) - Change in fund balance (171,310) (171,310) 1,232,717 1,404,027 Fund balance-beginning of the year 4,722,000 4,722,000 5,180,071 458,071 Reserve for expenditures and fund balance-end of the year $ 4,550,690 $ 4,550,690 $ 6,412,788 $ 1,862,098 150 CITY OF TIGARD,OREGON TRANSPORTATION SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES System development charges $ 1,380,000 $ 1,380,000 $ 3,789,688 $ 2,409,688 Interest and investment earnings 315,200 315,200 579,142 263,942 Total revenues 1,695,200 1,695,200 4,368,830 2,673,630 OTHER FINANCING SOURCES(USES) Transfer out (6,306,224) (7,483,224) (3,282,802) 4,200,422 Change in fund balance (4,611,024) (5,788,024) 1,086,028 6,874,052 Fund balance-beginning of the year 7,879,000 7,879,000 11,343,304 3,464,304 Reserve for expenditures and fund balance-end of the year $ 3,267,976 $ 2,090,976 $ 12,429,332 $ 10,338,356 151 CITY OF TIGARD,OREGON PARKS CAPITAL FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues $ 4,113,156 $ 4,144,560 $ 78,074 $ (4,066,486) Interest and investment earnings 57,000 57,000 - (57,000) Miscellaneous revenues 100 100 58 (42) Total revenues 4,170,2.56 4,201,660 78,132 (4,123,528) EXPENDITURES Capital improvements 12,620,156 14,691,156 6,914,069 7,777,087 Change in fund balance before other financing sources(uses) (8,449,900) (10,489,496) (6,835,937) 3,653,559 OTHER FINANCING SOURCES(USES) Transfer in 8,507,000 10,546,596 6,865,205 (3,681,391) Change in fund balance 57,100 57,100 29,268 (27,832) Fund balance-beginning of the year 1,424,000 1,424,000 302,329 (1,121,671) Reserve for expenditures and fund balance-end of the year $ 1,481,100 $ 1,481,100 $ 331,597 $ (1,149,503) 152 CITY OF TIGARD,OREGON PARKS BOND FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Interest and investment earnings $ - $ - $ 48,809 $ 48,809 OTHER FINANCING SOURCES(USES) Transfer out - (150,000) - 150,000 Change in fund balance - (150,000) 48,809 198,809 Fund balance-beginning of the year - - 781,688 781,688 Reserve for expenditures and fund balance-end of the year $ - $ (150,000) $ 830,497 $ 980,497 153 CITY OF TIGARD,OREGON PARKS SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES System development charges $ 1,460,000 $ 1,460,000 $ 4,801,036 $ 3,341,036 Interest and investment earnings 209,100 209,100 504,260 295,160 Total revenues 1,669,100 1,669,100 5,305,296 3,636,196 OTHER FINANCING SOURCES(USES) Transfer out (6,585,900) (7,336,496) (4,177,781) 3,158,715 Change in fund balance (4,916,800) (5,667,396) 1,127,515 6,794,911 Fund balance-beginning of the year 5,228,000 5,228,000 9,581,238 4,353,238 Reserve for expenditures and fund balance-end of the year $ 311,200 $ (439,396) $ 10,708,753 $ 11,148,149 154 CITY OF TIGARD,OREGON TRANSPORTATION CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues $ 796,000 $ 1,269,275 $ 1,398,890 $ 129,615 Charges for services - - 61,201 61,201 Interest and investment earnings 96,400 96,400 - (96,400) Miscellaneous revenues - - 2,378 2,378 Total revenues 892,400 1,365,675 1,462,469 96,794 EXPENDITURES Capital improvements 12,181,500 13,071,984 5,122,521 7,949,463 Change in fund balance before other financing sources(uses) (11,289,100) (11,706,309) (3,660,052) 8,046,257 OTHER FINANCING SOURCES(USES) Transfer in 11,385,500 11,802,709 3,953,017 (7,849,692) Change in fund balance 96,400 96,400 292,965 196,565 Fund balance-beginning of the year 2,411,000 2,411,000 959,633 (1,451,367) Reserve for expenditures and fund balance-end of the year $ 2,507,400 $ 2,507,400 $ 1,252,598 $ (1,254,802) 155 CITY OF TIGARD,OREGON CITY CENTER CAPITAL IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Interest and investment earnings $ 69 $ 69 $ 2,361 $ 2,292 EXPENDITURES Community development 885,000 924,555 426,148 498,407 Capital improvements 385,000 600,500 375,974 224,526 Total expenditures 1,270,000 1,525,055 802,122 722,933 Change in fund balance before other financing sources(uses) (1,269,931) (1,524,986) (799,761) 725,225 OTHER FINANCING SOURCES(USES) Transfer in 1,270,000 1,270,000 802,122 (467,878) Change in fund balance 69 (254,986) 2,361 257,347 Fund balance-beginning of the year 59,583 59,583 141,380 81,797 Reserve for expenditures and fund balance-end of the year $ 59,652 $ (195,403) 143,741 $ 339,144 Reconciliation of budgetary fund balance to GAAP basis fund balance: Advances from other funds (1,582,644) Total fund balance,GAAP basis $ (1,438,903) 156 CITY OF TIGARD,OREGON TIGARD TRIANGLE CAPITAL IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Interest and investment earnings $ - $ - $ 56,634 $ 56,634 EXPENDITURES Community development 2,530,000 2,580,000 236,703 2,343,297 Capital improvements 1,000,000 1,000,000 - 1,000,000 Total expenditures 3,530,000 3,580,000 236,703 3,343,297 Change in fund balance before other financing sources(uses) (3,530,000) (3,580,000) (180,069) 3,399,931 OTHER FINANCING SOURCES(USES) Transfer in 630,000 630,000 - (630,000) Transfer out (2,958,000) (2,958,000) - 2,958,000 Total other financing(uses) (2,328,000) (2,328,000) - 2,328,000 Change in fund balance (5,858,000) (5,908,000) (180,069) 5,727,931 Fund balance-beginning of the year 6,623,122 6,623,122 6,727,612 104,490 Reserve for expenditures and fund balance-end of the year $ 765,122 $ 715,122 6,547,543 $ 5,832,421 Reconciliation of budgetary fund balance to GAAP basis fund balance: Advances from other funds (228,869) Total fund balance,GAAP basis $ 6,318,674 157 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. 158 CITY OF TIGARD,OREGON SANITARY SEWER FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 4,855,000 $ 4,855,000 $ 4,909,392 $ 54,392 System development charges 90,000 90,000 155,900 65,900 Interest and investment earnings 251,200 251,200 559,662 308,462 Miscellaneous revenues 100,000 100,000 76,337 (23,663) Total revenues 5,296,200 5,296,200 5,701,291 405,091 EXPENDITURES Public works 3,267,057 3,267,057 2,974,157 292,900 Capital improvements 660,000 660,000 44,828 615,172 Total expenditures 3,927,057 3,927,057 3,018,985 908,072 Change in fund balance before other financing sources(uses) 1,369,143 1,369,143 2,682,306 1,313,163 OTHER FINANCING SOURCES(USES) Transfer in 44,000 44,000 9,275 (34,725) Transfer out (2,567,424) (2,567,424) (1,732,753) 834,671 Total other financing(uses) (2,523,424) (2,523,424) (1,723,478) 799,946 Change in fund balance (1,154,281) (1,154,281) 958,828 2,113,109 Fund balance-beginning of the year 6,281,000 6,281,000 9,251,013 2,970,013 Reserve for expenditures and fund balance-end of the year $ 5,126,719 $ 5,126,719 $ 10,209,841 $ 5,083,122 159 CITY OF TIGARD,OREGON SANITARY SEWER FUND RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES For the year ended June 30,2024 Operating and Non-Operating Expenditures/ Revenues Expense Budgetary basis $ 5,701,291 $ 3,018,985 Unavailable revenue (858) - Contributed capital 268,273 Interfund loan payments (74,788) - Compensated absences - (9,092) OPEB expense - 6,274 Expenditures capitalized - (30,479) Depreciation expense - 891,881 GAAP basis $ 5,893,918 $ 3,877,569 160 CITY OF TIGARD,OREGON STORMWATER FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 6,053,500 $ 6,053,500 $ 6,074,316 $ 20,816 System development charges 40,000 40,000 24,529 (15,471) Interest and investment earnings 347,500 347,500 383,220 35,720 Miscellaneous revenues 5,000 5,000 2,293 (2,707) Total revenues 6,446,000 6,446,000 6,484,358 38,358 EXPENDITURES Public works 4,198,902 4,198,902 3,788,226 410,676 Capital improvements 6,834,500 6,834,500 2,467,603 4,366,897 Total expenditures 11,033,402 11,033,402 6,255,829 4,777,573 Change in fund balance before other financing sources(uses) (4,587,402) (4,587,402) 228,529 4,815,931 OTHER FINANCING SOURCES(USES) Transfer in 1,534,000 1,534,000 770,210 (763,790) Transfer out (467,763) (469,163) (133,982) 335,181 Total other financing(uses) 1,066,237 1,064,837 636,228 (428,609) Change in fund balance (3,521,165) (3,522,565) 864,757 4,387,322 Fund balance-beginning of the year 8,687,000 8,687,000 8,553,714 (133,286) Reserve for expenditures and fund balance-end of the year $ 5,165,835 $ 5,164,435 $ 9,418,471 $ 4,254,036 161 CITY OF TIGARD,OREGON WATER QUALITY/QUANTITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Interest and investment earnings $ - $ - $ 54,199 $ 54,199 OTHER FINANCING SOURCES(USES) Transfer out - (41,000) (41,000) - Change in fund balance - (41,000) 13,199 54,199 Fund balance-beginning of the year - - 1,070,020 1,070,020 Reserve for expenditures and fund balance-end of the year $ - $ (41,000) $ 1,083,219 $ 1,124,219 162 CITY OF TIGARD,OREGON STORMWATER FUND RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES For the year ended June 30,2024 Operating and Non-Operating Expenditures/ Revenues Expense Stormwater Fund $ 6,484,358 $ 6,255,829 Water Quality/Quantity Fund 54,199 - Budgetary basis 6,538,557 6,255,829 Contributed capital 393,881 - Compensated absences - 21,423 OPEB expense - 7,090 Expenditures capitalized - (2,313,435) Depreciation expense - 840,171 GAAP basis $ 6,932,438 $ 4,811,078 163 CITY OF TIGARD,OREGON WATER FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 28,145,900 $ 28,145,900 $ 26,907,434 $ (1,238,466) System development charges - - - - Interest and investment earnings 2,085,000 2,085,000 2,416,153 331,153 Miscellaneous revenues 50,000 50,000 89,571 39,571 Total revenues 30,280,900 30,280,900 29,413,158 (867,742) EXPENDITURES Public works 11,704,248 11,704,248 11,163,372 540,876 Capital improvements 40,000 40,000 7,205 32,795 Total expenditures 11,744,248 11,744,248 11,170,577 573,671 Change in fund balance before other financing sources(uses) 18,536,652 18,536,652 18,242,581 (294,071) OTHER FINANCING SOURCES(USES) Transfer out (45,367,734) (45,493,434) (38,204,730) 7,288,704 Change in fund balance (26,831,082) (26,956,782) (19,962,149) 6,994,633 Fund balance-beginning of the year 52,125,000 52,125,000 55,647,408 3,522,408 Reserve for expenditures and fund balance-end of the year $ 25,293,918 $ 25,168,218 $ 35,685,259 $ 10,517,041 164 CITY OF TIGARD,OREGON WATER SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES System development charges $ 1,130,250 $ 1,130,250 $ 3,180,545 $ 2,050,295 Intergovernmental revenues - - - - Interest and investment earnings 570,800 570,800 862,350 291,550 Miscellaneous revenues - - 23,024 23,024 Total revenues 1,701,050 1,701,050 4,065,919 2,364,869 OTHER FINANCING SOURCES(USES) Transfer out (8,888,518) (9,060,011) (6,863,509) 2,196,502 Change in fund balance (7,187,468) (7,358,961) (2,797,590) 4,561,371 Fund balance-beginning of the year 14,269,000 14,269,000 17,631,643 3,362,643 Reserve for expenditures and fund balance-end of the year $ 7,081,532 $ 6,910,039 $ 14,834,053 $ 7,924,014 165 CITY OF TIGARD,OREGON WATER CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Miscellaneous revenues $ - $ - $ 1,021 $ 1,021 EXPENDITURES Capital improvements 34,573,000 34,795,000 25,398,096 9,396,904 Change in fund balance before other financing sources(uses) (34,573,000) (34,795,000) (25,397,075) 9,397,925 OTHER FINANCING SOURCES(USES) Transfer in 34,573,000 34,795,000 25,461,282 (9,333,718) Change in fund balance - - 64,207 64,207 Fund balance-beginning of the year 1,456,000 1,456,000 1,576,907 120,907 Reserve for expenditures and fund balance-end of the year $ 1,456,000 $ 1,456,000 $ 1,641,114 $ 185,114 166 CITY OF TIGARD,OREGON WATER DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Interest and investment earnings $ 97,700 $ 97,700 $ 146,471 $ 48,771 EXPENDITURES Debt Service 7,242,946 7,242,946 7,209,946 33,000 Change in fund balance before other financing sources(uses) (7,145,246) (7,145,246) (7,063,475) 81,771 OTHER FINANCING SOURCES(USES) Transfer in 7,242,943 7,242,943 7,209,946 (32,997) Change in fund balance 97,697 97,697 146,471 48,774 Fund balance-beginning of the year 2,442,000 2,442,000 2,511,436 69,436 Reserve for expenditures and fund balance-end of the year $ 2,539,697 $ 2,539,697 $ 2,657,907 $ 118,210 167 CITY OF TIGARD,OREGON WATER FUND RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES For the year ended June 30,2024 Operating and Non-Operating Expenditures/ Revenues Expense Water Fund $ 29,413,158 $ 11,170,577 Water SDC Fund 4,065,919 - Water CIP Fund 1,021 25,398,096 Water Debt Service Fund 146,471 7,209,946 Budgetary basis 33,626,569 43,778,619 Unavailable revenue (1,641) - Contributed capital 59,268 - Loss on investment in joint venture (36,423) - Principal payments - (3,764,149) Accrued interest - 23,639 Amortization of bond premium - 4,473 Amortization of deferred outflows related to bond refunding - (142,915) Compensated absences - 29,580 OPEB expense - 1,846 Expenditures capitalized - (24,672,105) Depreciation expense - 5,217,705 GAAP basis $ 33,647,773 $ 20,476,693 168 CITY OF TIGARD,OREGON ENTERPRISE FUNDS RECONCILIATION OF BUDGETARY FUND BALANCE TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET POSITION June 30,2024 Sanitary Sewer Stormwater Fund Fund Water Fund Totals Fund balance Sanitary Sewer Fund $ 10,209,841 $ - $ - $ 10,209,841 Stormwater Fund - 9,418,471 - 9,418,471 Water Quality/Quantity Fund - 1,083,219 - 1,083,219 Water Fund - - 35,685,259 35,685,259 Water SDC Fund - - 14,834,053 14,834,053 Water CIP Fund - - 1,641,114 1,641,114 Water Debt Service Fund - - 2,657,907 2,657,907 Total fund balance 10,209,841 10,501,690 54,818,333 75,529,864 Adjustments from budgetary basis to generally accepted accounting principles basis: Advances to other funds 927,532 - - 927,532 Property held for resale 185,021 260,021 - 445,042 Investment in joint venture - - 2,190,459 2,190,459 Capital assets, net 18,075,368 18,675,573 222,112,780 258,863,721 Deferred outflows related to OPEB 3,470 3,470 7,255 14,195 Deferred outflows related to bond refunc - - 3,384,333 3,384,333 Accounts payable and accrued liabilities (21,780) - - (21,780) Accrued interest - - (1,453,014) (1,453,014) Accrued compensated absences (24,255) (44,798) (72,868) (141,921) Notes payable - - (1,110,318) (1,110,318) Bonds payable - - (114,534,833) (114,534,833) Total OPEB liability (29,252) (29,252) (61,162) (119,666) Unavailable revenue 1,124 2 13,124 14,250 Deferred inflows related to OPEB (7,334) (7,334) (15,334) (30,002) Total net position $ 29,319,735 $ 29,359,372 $ 165,278,755 $ 223,957,862 169 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. 170 CITY OF TIGARD,OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION June 30,2024 Information Technology Facilities Public Works Central Services Replacement Replacement Administration Fund Fund Fund Fund ASSETS Current assets Cash and investments $ 4,005,991 $ 4,381,613 $ 6,012,850 $ 680,617 Accounts receivable 6,968 5,126 9,004 5,117 Inventory - - - - Prepaids 105,057 - - - Total current assets 4,118,016 4,386,739 6,021,854 685,734 Noncurrent assets Capital assets Capital assets,not being depreciated 730,659 - - - Other capital assets,net of depreciatiot 3,882,725 - - - Total noncurrent assets 4,613,384 - - - Total assets 8,731,400 4,386,739 6,021,854 685,734 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to OPEB 35,411 - - 22,608 LIABILITIES Current liabilities Accounts payable and accrued liabilities 767,622 14,135 29,769 73,921 Unearned revenue 16,500 - - - Deposits - - - - Accrued compensated absences 536,192 - - 120,207 Current portion of subscription payable 410,159 - - - Total current liabilites 1,730,473 14,135 29,769 194,128 Noncurrent liabilities Accrued compensated absences 22,341 - - 5,009 Subscription payable,net of current port 2,461,941 - - - Total OPEB liability 298,499 - - 190,579 Total noncurrent liabilites 2,782,781 - - 195,588 Total liabilities 4,513,254 14,135 29,769 389,716 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to OPEB 74,837 - - 47,780 NET POSITION Net investment in capital assets 1,741,284 - - - Unrestricted _ 2,437,436 4,372,604 5,992,085 270,846 Total net position $ 4,178,720 $ 4,372,604 $ 5,992,085 $ 270,846 171 Public Works Fleet/Property Fleet/Vehicle Engineering Management Replacement Fund Fund Fund Insurance Fund Total $ 6,084,849 $ 1,044,927 $ 8,318,850 $ 2,132,046 $ 32,661,743 17,531 4,122 29,157 7,986 85,011 3,078 - - 3,078 - - - 105,057 6,102,380 1,052,127 8,348,007 2,140,032 32,854,889 - - - - 730,659 - - - - 3,882,725 - 4,613,384 6,102,380 1,052,127 8,348,007 2,140,032 37,468,273 11,567 5,258 - - 74,844 136,386 176,787 110,647 658 1,309,925 - 16,500 174,242 - - - 174,242 152,418 58,920 - - 867,737 - 410,159 463,046 235,707 110,647 658 2,778,563 6,351 2,455 - - 36,156 - - 2,461,941 97,505 44,321 - - 630,904 103,856 46,776 - - 3,129,001 566,902 282,483 110,647 658 5,907,564 24,446 11,112 - - 158,175 - - - 1,741,284 5,522,599 763,790 8,237,360 2,139,374 29,736,094 $ 5,522,599 $ 763,790 $ 8,237,360 $ 2,139,374 $ 31,477,378 172 CITY OF TIGARD,OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET POSITION For the year ended June 30,2024 Information Technology Facilities Public Works Central Services Replacement Replacement Administration Fund Fund Fund Fund OPERATING REVENUES Charges for services $ 14,398,050 $ 1,768,792 $ 1,322,896 $ 2,066,518 Miscellaneous revenues 22,195 56 - 1,934 Total operating revenues 14,420,245 1,768,848 1,322,896 2,068,452 OPERATING EXPENSES Salaries and wages 8,427,023 - - 1,502,957 Contracted services 1,768,294 - - 86,652 General,administrative and other 4,115,562 759,591 89,401 1,277,339 Depreciation 465,927 - - - Total operating expenses 14,776,806 759,591 89,401 2,866,948 Operating income(loss) (356,561) 1,009,257 1,233,495 (798,496) NON-OPERATING REVENUES(EXPENSES) Interest and investment earnings 197,932 171,609 237,927 46,028 Intergovernmental revenues - - - 8,756 Interest expense (75,408) - - - Net income(loss)before contributions and transfers (234,037) 1,180,866 1,471,422 (743,712) CONTRIBUTIONS AND TRANSFERS Transfer in 1,523,881 7,848 - 29,295 Transfer out (426) - - - Change in net position 1,289,418 1,188,714 1,471,422 (714,417) Net position-beginning of the year 2,889,302 3,183,890 4,520,663 985,263 Net position-end of the year $ 4,178,720 $ 4,372,604 $ 5,992,085 $ 270,846 173 Public Works Fleet/Property Fleet/Vehicle Engineering Management Replacement Fund Fund Fund Insurance Fund Total $ 6,090,108 $ 2,372,540 $ 1,933,066 $ 360,000 $ 30,311,970 1,911 14,428 119,899 195,092 355,515 6,092,019 2,386,968 2,052,965 555,092 30,667,485 2,833,709 1,098,433 - - 13,862,122 183,312 458,237 - 15,386 2,511,881 1,212,853 1,449,697 936,291 93,882 9,934,616 - - - - 465,927 4,229,874 3,006,367 936,291 109,268 26,774,546 1,862,145 (619,399) 1,116,674 445,824 3,892,939 269,704 53,627 359,460 90,732 1,427,019 - - - - 8,756 - - - (75,408) 2,131,849 (565,772) 1,476,134 536,556 5,253,306 525,805 - - - 2,086,829 (2,500,654) - (727,440) - (3,228,520) 157,000 (565,772) 748,694 536,556 4,111,615 5,365,599 1,329,562 7,488,666 1,602,818 27,365,763 $ 5,522,599 $ 763,790 $ 8,237,360 $ 2,139,374 $ 31,477,378 174 CITY OF TIGARD,OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the year ended June 30,2024 Technology Facilities Public Works Central Services Replacement Replacement Administration Fund Fund Fund Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 14,394,220 $ 1,765,496 $ 1,317,470 $ 2,062,477 Payments to suppliers (5,849,395) (745,456) (59,632) (1,374,891) Payments to employees (8,288,010) - - (1,426,685) Other receipts 22,195 56 - 1,934 Net cash provided(used)by operating activities 279,010 1,020,096 1,257,838 (737,165) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Intergovernmental revenue - - - 8,756 Transfers from other funds 454,228 7,848 - 29,295 Transfers to other funds (426) - - - Net cash provided(used)by noncapital financing activities 453,802 7,848 - 38,051 CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES Acquisition of capital assets (963,625) - - - Principal payments (173,933) - - - Interest payments (75,408) - - - Net cash provided(used)by capital financing activities (1,212,966) - - - CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings 197,932 171,609 237,927 46,028 Net increase(decrease)in cash and investments (282,222) 1,199,553 1,495,765 (653,086) Cash and investments-beginning of the year 4,288,213 3,182,060 4,517,085 1,333,703 Cash and investments-end of the year $ 4,005,991 $ 4,381,613 $ 6,012,850 $ 680,617 RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income(loss) $ (356,561) $ 1,009,257 $ 1,233,495 $ (798,496) Adjustments to reconcile operating income(loss)to net cash provided by operating activities: Depreciation expense 465,927 - - - Change in assets and liabilities: Accounts receivable (3,830) (3,296) (5,426) (4,041) Inventory - - - - Prepaids (105,057) - - - Accounts payable and accrued liabilities 140,862 14,135 29,769 (9,956) Deposits - - - - Accrued compensated absences 141,923 - - 66,734 Total OPEB liability and related balances (4,254) - - 8,594 Net cash provided(used)by operating activities $ 279,010 $ 1,020,096 $ 1,257,838 $ (737,165) NON-CASH CAPITAL AND RELATED FINANCING ACTIVITIES: Subscription issued $ 3,046,032 $ - $ - $ - Transfers in of capital assets 1,069,653 - - - Transfers out of capital assets - - - - 175 Fleet/Property Fleet/Vehicle Public Works Management Replacement Engineering Fund Fund Fund Insurance Fund Total $ 6,072,960 $ 2,428,310 $ 1,910,630 $ 356,779 $ 30,308,342 (1,415,554) (1,990,581) (884,156) (108,938) (12,428,603) (2,739,279) (1,066,498) - - (13,520,472) 1,911 14,428 119,899 195,092 355,515 1,920,038 (614,341) 1,146,373 442,933 4,714,782 - - - - 8,756 525,805 - - - 1,017,176 (2,500,654) - - - (2,501,080) (1,974,849) - - - (1,475,148) - - (727,440) - (1,691,065) - - - - (173,933) - - - - (75,408) - - (727,440) - (1,940,406) 269,704 53,627 359,460 90,732 1,427,019 214,893 (560,714) 778,393 533,665 2,726,247 5,869,956 1,605,641 7,540,457 1,598,381 29,935,496 $ 6,084,849 $ 1,044,927 $ 8,318,850 $ 2,132,046 $ 32,661,743 $ 1,862,145 $ (619,399) $ 1,116,674 $ 445,824 $ 3,892,939 - - - - 465,927 (13,653) 55,770 (22,436) (3,221) (133) - (308) - - (308) - - - - (105,057) (296) (86,916) 52,135 330 140,063 (3,495) - - - (3,495) 77,902 35,111 - - 321,670 (2,565) 1,401 - - 3,176 $ 1,920,038 $ (614,341) $ 1,146,373 $ 442,933 $ 4,714,782 $ - $ - $ - $ - $ 3,046,032 - - - - 1,069,653 - 727,440 - 727,440 176 CITY OF TIGARD,OREGON CENTRAL SERVICES FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 14,556,083 $ 14,556,083 $ 14,398,050 $ (158,033) Interest and investment earnings 127,900 127,900 197,932 70,032 Miscellaneous revenues 15,000 15,000 22,198 7,198 Total revenues 14,698,983 14,698,983 14,618,180 (80,803) EXPENDITURES Policy and administration 18,104,089 18,104,089 14,066,889 4,037,200 Capital improvements 238,800 238,800 4,257,904 (4,019,104) Debt Service - - 249,341 (249,341) Total expenditures 18,342,889 18,342,889 18,574,134 (231,245) Change in fund balance before other financing sources(uses) (3,643,906) (3,643,906) (3,955,954) (312,048) OTHER FINANCING SOURCES(USES) Transfer in 454,228 454,228 454,228 - Transfer out (360,000) (360,000) (426) 359,574 Subscription issued - - 3,046,032 3,046,032 Total other financing(uses) 94,228 94,228 3,499,834 3,405,606 Change in fund balance (3,549,678) (3,549,678) (456,120) 3,093,558 Fund balance-beginning of the year 3,633,930 3,633,930 3,231,481 (402,449) Reserve for expenditures and fund balance-end of the year $ 84,252 $ 84,252 2,775,361 $ 2,691,109 Reconciliation of budgetary fund balance to GAAP basis net position: Capital assets, net 4,613,384 Deferred outflow related to OPEB 35,411 Subscription payable (2,872,100) Total OPEB liability (298,499) Deferred inflow related to OPEB (74,837) Total net position,GAAP basis $ 4,178,720 177 CITY OF TIGARD,OREGON INFORMATION TECHNOLOGY REPLACEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 1,768,874 $ 1,768,874 $ 1,768,792 $ (82) Interest and investment earnings 124,100 124,100 171,609 47,509 Miscellaneous revenues - - 56 56 Total revenues 1,892,974 1,892,974 1,940,457 47,483 EXPENDITURES Capital improvements 2,538,270 2,538,270 759,591 1,778,679 Change in fund balance before other financing sources(uses) (645,296) (645,296) 1,180,866 1,826,162 OTHER FINANCING SOURCES(USES) Transfer in 7,848 7,848 7,848 - Change in fund balance (637,448) (637,448) 1,188,714 1,826,162 Fund balance-beginning of the year 3,103,000 3,103,000 3,183,890 80,890 Reserve for expenditures and fund balance-end of the year $ 2,465,552 $ 2,465,552 $ 4,372,604 $ 1,907,052 178 CITY OF TIGARD,OREGON FACILITIES REPLACEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 1,322,896 $ 1,322,896 $ 1,322,896 $ - Interest and investment earnings 176,800 176,800 237,927 61,127 Total revenues 1,499,696 1,499,696 1,560,823 61,127 EXPENDITURES Capital improvements 110,000 110,000 89,401 20,599 Change in fund balance 1,389,696 1,389,696 1,471,422 81,726 Fund balance-beginning of the year 4,420,000 4,420,000 4,520,663 100,663 Reserve for expenditures and fund balance-end of the year $ 5,809,696 $ 5,809,696 $ 5,992,085 $ 182,389 179 CITY OF TIGARD,OREGON PUBLIC WORKS ADMINISTRATION FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 2,060,798 $ 2,060,798 $ 2,066,518 $ 5,720 Intergovernmental revenues - - 8,756 8,756 Interest and investment earnings 37,400 37,400 46,028 8,628 Miscellaneous revenues 1,000 1,000 1,934 934 Total revenues 2,099,198 2,099,198 2,123,236 24,038 EXPENDITURES Policy and administration 2,996,873 2,996,873 2,858,354 138,519 Change in fund balance before other financing sources(uses) (897,675) (897,675) (735,118) 162,557 OTHER FINANCING SOURCES(USES) Transfer in 29,295 29,295 29,295 - Change in fund balance (868,380) (868,380) (705,823) 162,557 Fund balance-beginning of the year 936,000 936,000 1,192,420 256,420 Reserve for expenditures and fund balance-end of the year $ 67,620 $ 67,620 486,597 $ 418,977 Reconciliation of budgetary fund balance to GAAP basis net position: Deferred outflow related to OPEB 22,608 Total OPEB liability (190,579) Deferred inflow related to OPEB (47,780) Total net position,GAAP basis $ 270,846 180 CITY OF TIGARD,OREGON PUBLIC WORKS ENGINEERING FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,058,097 $ 3,058,097 $ 6,090,108 $ 3,032,011 Interest and investment earnings 179,400 179,400 269,704 90,304 Miscellaneous revenues 5,000 5,000 1,911 (3,089) Total revenues 3,242,497 3,242,497 6,361,723 3,119,226 EXPENDITURES Policy and administration 4,643,026 4,643,026 4,232,439 410,587 Change in fund balance before other financing sources(uses) (1,400,529) (1,400,529) 2,129,284 3,529,813 OTHER FINANCING SOURCES(USES) Transfer in 551,696 551,696 525,805 (25,891) Transfer out (2,500,000) (2,500,000) (2,500,654) (654) Total other financing(uses) (1,948,304) (1,948,304) (1,974,849) (26,545) Change in fund balance (3,348,833) (3,348,833) 154,435 3,503,268 Fund balance-beginning of the year 4,484,000 4,484,000 5,478,548 994,548 Reserve for expenditures and fund balance-end of the year $ 1,135,167 $ 1,135,167 5,632,983 $ 4,497,816 Reconciliation of budgetary fund balance to GAAP basis net position: Deferred outflow related to OPEB 11,567 Total OPEB liability (97,505) Deferred inflow related to OPEB (24,446) Total net position,GAAP basis $ 5,522,599 181 CITY OF TIGARD,OREGON FLEET/PROPERTY MANAGEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 2,370,403 $ 2,370,403 $ 2,372,540 $ 2,137 Interest and investment earnings 41,900 41,900 53,627 11,727 Miscellaneous revenues 5,000 5,000 14,428 9,428 Total revenues 2,417,303 2,417,303 2,440,595 23,292 EXPENDITURES Policy and administration 3,240,403 3,240,403 2,907,622 332,781 Capital improvements 130,000 130,000 97,344 32,656 Total expenditures 3,370,403 3,370,403 3,004,966 365,437 Change in fund balance (953,100) (953,100) (564,371) 388,729 Fund balance-beginning of the year 1,047,000 1,047,000 1,378,336 331,336 Reserve for expenditures and fund balance-end of the year $ 93,900 $ 93,900 813,965 $ 720,065 Reconciliation of budgetary fund balance to GAAP basis net position: Deferred outflow related to OPEB 5,258 Total OPEB liability (44,321) Deferred inflow related to OPEB (11,112) Total net position,GAAP basis $ 763,790 182 CITY OF TIGARD,OREGON FLEET/VEHICLE REPLACEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 1,933,066 $ 1,933,066 $ 1,933,066 $ - Interest and investment earnings 282,300 282,300 359,460 77,160 Miscellaneous revenues 30,000 30,000 119,900 89,900 Total revenues 2,245,366 2,245,366 2,412,426 167,060 EXPENDITURES Capital improvements 1,760,000 1,760,000 1,663,732 96,268 Change in fund balance 485,366 485,366 748,694 263,328 Fund balance-beginning of the year 7,057,000 7,057,000 7,488,666 431,666 Reserve for expenditures and fund balance-end of the year $ 7,542,366 $ 7,542,366 $ 8,237,360 $ 694,994 183 CITY OF TIGARD,OREGON INSURANCE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Charges for services $ 360,000 $ 360,000 $ 360,000 $ - Interest and investment earnings 58,000 58,000 90,732 32,732 Miscellaneous revenues 39,000 39,000 195,092 156,092 Total revenues 457,000 457,000 645,824 188,824 EXPENDITURES Policy and administration 457,000 457,000 109,268 347,732 Change in fund balance - - 536,556 536,556 Fund balance-beginning of the year 1,449,000 1,449,000 1,602,818 153,818 Reserve for expenditures and fund balance-end of the year $ 1,449,000 $ 1,449,000 $ 2,139,374 $ 690,374 184 Other Schedules 185 CITY OF TIGARD,OREGON SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS For the fiscal year ended June 30,2024 Interest Transactions Original Outstanding Additions Matured/ Paid Outstanding Matured Paid Issue June 30,2023 Called June 30,2024 General Obligation Bonds Issued April 28,2020 $ 5,981,000 $ 4,652,000 $ - $ 1,561,000 $ (1,561,000) $ 3,091,000 $ 63,335 $ (63,335) Issued February 3,2011 17,000,000 2,850,000 - 910,000 (910,000) 1,940,000 118,150 (118,150) $ 7,502,000 $ - $ 2,471,000 $ (2,471,000) $ 5,031,000 $ 181,485 $ (181,485) Full Faith&Credit Bonds Issued September 1,2019 $ 5,929,000 $ 5,186,000 $ - $ 262,000 $ (262,000) $ 4,924,000 $ 144,666 $ (144,666) Issued October 1,2021 4,624,600 4,155,700 - 286,800 (286,800) 3,868,900 74,365 (74,365) $ 9,341,700 $ - $ 548,800 $ (548,800) $ 8,792,900 $ 219,031 $ (219,031) Water Revenue Bonds Issued May 1,2015 $ 30,810,000 $ 29,565,000 $ - $ 210,000 $ (210,000) $ 29,355,000 $ 1,460,300 $ (1,460,300) Issued November 3,2020 86,575,000 84,655,000 - 3,430,000 (3,430,000) 81,225,000 1,948,463 (1,948,463) $ 114,220,000 $ - $ 3,640,000 $ (3,640,000) $ 110,580,000 $ 3,408,763 $ (3,408,763) Long-term Note Issued December 1,2011 $ 2,398,000 $ 1,234,467 $ - $ 124,149 $ (124,149) $ 1,110,318 $ 37,034 $ (37,034) Urban Renewal Bonds Issued October 1,2021 $ 4,687,800 $ 4,217,000 $ - $ 272,500 $ (272,500) $ 3,944,500 $ 120,185 $ (120,185) 186 CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF GENERAL OBLIGATION BONDS For the fiscal year ended June 30, 2024 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 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 $ 5,031,000 $ 184,798 $ 3,091,000 $ 60,273 $ 1,940,000 $ 124,525 187 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF FULL FAITH&CREDIT BONDS For the fiscal year ended June 30,2024 Total Debt Series 2019A Series 2019B Series 2021A Series 2021B Service Requirement Issued:August 29,2019 Issued:August 29,2019 Issued:September 29,2021 Issued:September 29,2021 Fiscal Year Total Total 2.36% 2.99% 1.69% 2.14% of Maturity Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2025 $ 560,900 $ 206,613 $ 88,000 $ 36,910 $ 181,000 $ 100,464 $ 228,500 $ 50,906 $ 63,400 $ 18,333 2026 573,100 193,908 90,000 34,834 186,000 95,052 232,400 47,045 64,700 16,977 2027 586,400 180,910 92,000 32,710 192,000 89,491 236,300 43,117 66,100 15,592 2028 600,800 167,590 95,000 30,538 198,000 83,750 240,300 39,124 67,500 14,178 2029 613,400 153,921 97,000 28,296 203,000 77,830 244,400 35,062 69,000 12,733 2030 626,900 139,955 99,000 26,007 209,000 71,760 248,500 30,932 70,400 11,256 2031 641,700 125,664 101,000 23,671 216,000 65,511 252,700 26,732 72,000 9,750 2032 656,500 111,011 104,000 21,287 222,000 59,053 257,000 22,462 73,500 8,209 2033 671,400 96,003 106,000 18,833 229,000 52,415 261,300 18,119 75,100 6,636 2034 2,558,500 80,630 692,000 16,332 1,524,000 45,566 265,800 13,703 76,700 5,029 2035 348,500 12,598 - - - - 270,200 9,210 78,300 3,388 2036 354,800 6,356 - - - - 274,800 4,644 80,000 1,712 $ 8,792,900 $ 1,475,159 $1,564,000 $ 269,418 $ 3,360,000 $ 740,892 $ 3,012,200 $ 341,056 $ 856,700 $ 123,793 188 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF WATER REVENUE BONDS For the fiscal year ended June 30,2024 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 2025 $ 3,715,000 $ 3,330,963 $ 215,000 $ 1,451,800 $ 3,500,000 $ 1,879,163 2026 3,795,000 3,251,463 225,000 1,443,000 3,570,000 1,808,463 2027 3,875,000 3,170,163 235,000 1,433,800 3,640,000 1,736,363 2028 3,960,000 3,085,788 245,000 1,422,975 3,715,000 1,662,813 2029 4,045,000 2,998,238 255,000 1,410,475 3,790,000 1,587,763 2030 4,135,000 2,908,563 270,000 1,397,350 3,865,000 1,511,213 2031 4,225,000 2,819,163 280,000 1,386,050 3,945,000 1,433,113 2032 4,315,000 2,727,663 290,000 1,374,250 4,025,000 1,353,413 2033 4,415,000 2,629,383 305,000 1,359,375 4,110,000 1,270,008 2034 4,520,000 2,524,333 325,000 1,343,625 4,195,000 1,180,708 2035 4,630,000 2,412,228 340,000 1,327,000 4,290,000 1,085,228 2036 4,750,000 2,292,713 360,000 1,309,500 4,390,000 983,213 2037 4,880,000 2,165,345 375,000 1,291,125 4,505,000 874,220 2038 5,015,000 2,029,723 395,000 1,271,875 4,620,000 757,848 2039 5,160,000 1,886,483 420,000 1,251,500 4,740,000 634,983 2040 5,310,000 1,736,433 440,000 1,230,000 4,870,000 506,433 2041 5,460,000 1,579,494 455,000 1,207,625 5,005,000 371,869 2042 5,635,000 1,412,500 485,000 1,184,125 5,150,000 228,375 2043 5,810,000 1,236,100 510,000 1,159,250 5,300,000 76,850 2044 7,265,000 964,875 7,265,000 964,875 - - 2045 7,635,000 592,375 7,635,000 592,375 - - 2046 8,030,000 200,750 8,030,000 200,750 - - $ 110,580,000 $ 47,954,739 $ 29,355,000 $ 27,012,700 $ 81,225,000 $ 20,942,039 189 CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF SAFE DRINKING WATER REVOLVING LOAN FUNDS For the fiscal year ended June 30, 2024 Issued: December 1, 2011 Fiscal Year 3.00% of Maturity Principal Interest 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 130,490 3,915 $ 1,110,318 $ 152,370 190 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF URBAN RENEWAL AND REDEVELOPMENT BONDS For the fiscal year ended June 30, 2024 Issued: September 29, 2021 Fiscal Year 2.85% of Maturity Principal Interest 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 $ 3,944,500 $ 768,291 191 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS WATER FUND For the fiscal year ended June 30,2024 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 2025 $ 3,842,874 $ 3,364,273 $ 215,000 $ 1,451,800 $ 3,500,000 $ 1,879,163 $ 127,874 $ 33,310 2026 3,926,710 3,280,936 225,000 1,443,000 3,570,000 1,808,463 131,710 29,473 2027 4,010,661 3,195,685 235,000 1,433,800 3,640,000 1,736,363 135,661 25,522 2028 4,099,731 3,107,240 245,000 1,422,975 3,715,000 1,662,813 139,731 21,452 2029 4,188,923 3,015,498 255,000 1,410,475 3,790,000 1,587,763 143,923 17,260 2030 4,283,241 2,921,506 270,000 1,397,350 3,865,000 1,511,213 148,241 12,943 2031 4,377,688 2,827,658 280,000 1,386,050 3,945,000 1,433,113 152,688 8,495 2032 4,445,490 2,731,578 290,000 1,374,250 4,025,000 1,353,413 130,490 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 2,029,723 395,000 1,271,875 4,620,000 757,848 - - 2039 5,160,000 1,886,483 420,000 1,251,500 4,740,000 634,983 - - 2040 5,310,000 1,736,433 440,000 1,230,000 4,870,000 506,433 - - 2041 5,460,000 1,579,494 455,000 1,207,625 5,005,000 371,869 - - 2042 5,635,000 1,412,500 485,000 1,184,125 5,150,000 228,375 - - 2043 5,810,000 1,236,100 510,000 1,159,250 5,300,000 76,850 - - 2044 7,265,000 964,875 7,265,000 964,875 - - - - 2045 7,635,000 592,375 7,635,000 592,375 - - - - 2046 8,030,000 200,750 8,030,000 200,750 - - - - $ 111,690,318 $ 48,107,109 $ 29,355,000 $ 27,012,700 $ 81,225,000 $ 20,942,039 $ 1,110,318 $152,370 192 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. 194-209 Revenue Capacity—These schedules contain information to help the reader assess the city's most significant local revenue source, property taxes. 210-215 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. 216-224 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. 225-228 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. 229-232 193 CITY OF TIGARD,OREGON NET POSITION BY COMPONENT for the last ten fiscal years (accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year 2015 2016 2017(Restated) GOVERNMENTAL ACTIVITIES Net investment in capital assets $ 189,748,234 $ 195,142,143 $ 199,214,099 Restricted 12,376,136 20,392,998 26,313,186 Unrestricted 13,031,415 11,024,212 21,105,136 Total governmental activities net position 215,155,785 226,559,353 246,632,421 BUSINESS-TYPE ACTIVITIES Net investment in capital assets 84,867,665 95,247,967 104,870,812 Restricted 11,250,300 12,279,628 15,387,870 Unrestricted 21,256,129 21,847,155 30,803,556 Total business-type activities net position 117,374,094 129,374,750 151,062,238 PRIMARY GOVERNMENT Net investment in capital assets 274,615,899 290,390,110 304,084,911 Restricted 23,626,436 32,672,626 41,701,056 Unrestricted 34,287,544 32,871,367 51,908,692 Total primary government net position $ 332,529,879 $ 355,934,103 $ 397,694,659 Source: Annual Comprehensive Financial Report of the City. 194 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2018 2019 2020 2021 2022 2023 2024 $ 207,113,453 $ 216,080,286 $ 216,281,021 $ 222,374,600 $ 225,906,951 $ 234,640,513 $ 263,032,737 38,019,099 40,908,235 61,695,111 69,011,237 80,791,413 83,693,756 100,543,247 26,937,963 36,208,160 31,287,737 31,576,376 40,344,925 58,837,166 59,562,871 272,070,515 293,196,681 309,263,869 322,962,213 347,043,289 377,171,435 423,138,855 110,785,680 110,542,303 108,782,212 104,142,931 112,119,692 117,608,706 143,480,064 18,811,969 20,044,161 22,974,348 18,496,564 20,172,795 20,143,080 19,133,074 38,881,215 50,316,066 58,469,800 74,329,841 74,436,284 81,695,101 61,344,724 168,478,864 180,902,530 190,226,360 196,969,336 206,728,771 219,446,887 223,957,862 317,899,133 326,622,589 325,063,233 326,517,531 338,026,643 352,249,219 406,512,801 56,831,068 60,952,396 84,669,459 87,507,801 100,964,208 103,836,836 119,676,321 65,819,178 86,524,226 89,757,537 105,906,217 114,781,209 140,532,267 120,907,595 $ 440,549,379 $ 474,099,211 $ 499,490,229 $ 519,931,549 $ 553,772,060 $ 596,618,322 $ 647,096,717 195 CITY OF TIGARD,OREGON CHANGES IN NET POSITION for the last ten fiscal years (accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year 2015 2016 2017(Restated) EXPENSES Governmental activities Community services $ 18,542,379 $ 25,089,790 $ 23,268,637 Public works 10,408,399 10,865,800 8,263,304 Community development 4,688,686 7,030,142 5,807,204 Policy and administration 1,323,435 1,226,166 3,528,933 Interest on long-term debt 1,185,507 958,204 949,136 Total governmental activities expenses 36,148,406 45,170,102 41,817,214 Business-type activities Sanitary sewer 2,518,708 2,536,988 2,586,769 Stormwater 2,077,589 2,123,162 2,737,825 Water 10,839,483 14,720,167 8,244,491 Total business-type activities program expenses 15,435,780 19,380,317 13,569,085 Total primary government expenses $ 51,584,186 $ 64,550,419 $ 55,386,299 PROGRAM REVENUES Governmental activities Fees,Fines and Charges for services: Community services $ 1,731,639 $ 1,879,576 $ 2,482,811 Public works 2,239,431 2,860,543 5,165,280 Community development 3,040,501 4,684,733 4,341,128 Policy and administration 142,277 119,195 363,583 Operating grants and contributions 6,508,556 7,756,718 6,880,727 Capital grants and contributions 2,021,422 11,785,524 15,691,507 Total governmental activities program revenues 15,683,826 29,086,289 34,925,036 Business-type activities Charges for services: Sanitary sewer 1,773,388 1,791,302 3,013,314 Stormwater 2,899,180 3,058,382 3,275,083 Water 18,804,645 20,918,497 20,926,322 Capital grants and contributions 2,066,696 5,806,590 7,670,388 Total business-type activities program revenues 25,543,909 31,574,771 34,885,107 Total primary government program revenues $ 41,227,735 $ 60,661,060 $ 69,810,143 Source: Annual Comprehensive Financial Report of the City. 196 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2018 2019 2020 2021 2022 2023 2024 $ 24,099,976 $ 23,370,174 $ 25,961,675 $ 30,378,435 $ 27,313,548 $ 31,597,313 $ 34,162,742 8,900,831 12,129,476 9,578,442 14,035,986 11,755,291 14,589,053 23,501,283 5,330,390 5,146,891 5,817,188 6,719,376 6,395,322 8,905,011 8,507,543 2,945,936 3,688,137 3,383,319 4,092,081 4,715,974 1,176,827 2,754,893 863,803 771,834 760,211 543,661 623,927 604,699 625,540 42,140,936 45,106,512 45,500,835 55,769,539 50,804,062 56,872,903 69,552,001 2,789,140 3,128,483 3,044,154 3,423,460 3,198,424 3,406,337 3,877,569 2,470,085 3,261,312 3,433,481 4,257,993 4,159,563 4,376,231 4,811,078 14,123,903 17,223,333 19,418,199 20,166,820 17,946,555 19,051,074 20,513,116 19,383,128 23,613,128 25,895,834 27,848,273 25,304,542 26,833,642 29,201,763 $ 61,524,064 $ 68,719,640 $ 71,396,669 $ 83,617,812 $ 76,108,604 $ 83,706,545 $ 98,753,764 $ 1,557,082 $ 1,628,237 $ 1,500,919 $ 2,207,360 $ 3,102,350 $ 3,249,417 $ 2,367,035 4,708,329 4,797,891 5,220,273 5,324,404 8,057,384 7,477,618 8,972,514 6,518,737 6,432,190 4,292,102 4,324,710 4,323,635 5,886,994 6,370,024 340,446 345,505 90,582 99,060 56,554 34,020 9,937,485 8,321,435 9,594,291 9,625,070 13,346,482 17,770,216 11,630,053 10,321,335 16,307,318 12,268,270 8,542,864 8,959,707 6,254,712 11,972,303 15,981,565 37,753,347 35,066,384 29,271,810 34,261,723 39,564,851 40,250,405 53,949,958 3,208,783 3,389,281 3,666,422 3,348,846 4,129,639 4,572,715 4,909,392 3,620,431 3,812,133 4,017,864 3,820,029 5,603,506 5,776,197 6,074,316 23,078,013 23,751,073 22,607,832 24,836,173 24,065,642 26,189,421 26,907,434 6,795,717 3,285,377 3,139,146 2,838,367 3,156,083 4,436,172 4,079,897 36,702,944 34,237,864 33,431,264 34,843,415 36,954,870 40,974,505 41,971,039 $ 74,456,291 $ 69,304,248 $ 62,703,074 $ 69,105,138 $ 76,519,721 $ 81,224,910 $ 95,920,997 197 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 Fiscal Year 2015 2016 2017(Restated) 2018 NET(EXPENSE)REVENUE Governmental activities $ (20,464,580) $ (16,083,813) $ (6,892,178) $ (4,387,589) Business-type activities 10,108,129 12,194,454 21,316,022 17,319,816 Total primary government net expenses (10,356,451) (3,889,359) 14,423,844 12,932,227 GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities: Property taxes 16,523,361 17,177,591 17,616,798 18,387,321 Franchise fees 5,687,456 5,734,540 5,890,113 6,095,852 Unrestricted intergovernmental revenues 3,004,341 2,840,903 2,074,428 3,022,051 Interest earnings 434,401 688,087 824,213 1,683,282 Miscellaneous 247,154 228,779 268,380 416,785 Transfers between Governmental and Business-type (56,368) 817,481 291,314 220,392 Total governmental activities 25,840,345 27,487,381 26,965,246 29,825,683 Business-type activities: Investment earnings(losses) 131,485 302,890 106,628 139,926 Miscellaneous 177,903 193,645 270,628 177,276 Unrestricted intergovernmental revenues - 127,148 285,524 - Transfers between Governmental and Business-type 56,368 (817,481) (291,314) (220,392) Total business-type activities 365,756 (193,798) 371,466 96,810 Total primary government 26,206,101 27,293,583 27,336,712 29,922,493 CHANGES IN NET POSITION Governmental activities(restated) 5,375,765 11,403,568 20,073,068 25,438,094 Business-type activities(restated) 10,473,885 12,000,656 21,687,488 17,416,626 Total primary government $ 15,849,650 $ 23,404,224 $ 41,760,556 $ 42,854,720 Source: Annual Comprehensive Financial Report of the City. 198 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2019 2020 2021 2022 2023 2024 $ (10,040,128) $ (16,229,025) $ (21,507,816) $ (11,239,211) $ (16,622,498) $ (15,602,043) 10,624,736 7,535,430 6,995,142 11,650,328 14,140,863 12,769,276 584,608 (8,693,595) (14,512,674) 411,117 (2,481,635) (2,832,767) 19,101,543 20,325,728 23,620,200 25,117,084 26,011,521 27,497,643 6,211,736 6,360,563 6,978,783 7,272,781 7,765,651 8,199,638 2,522,428 2,484,051 2,426,817 3,714,888 3,856,820 4,660,743 2,416,827 2,520,783 558,060 (2,181,844) 4,654,377 7,733,071 453,435 502,164 702,068 644,102 319,841 680,546 460,325 102,924 920,232 753,276 4,142,434 12,797,822 31,166,294 32,296,213 35,206,160 35,320,287 46,750,644 61,569,463 1,606,834 1,770,933 307,581 (1,313,073) 2,578,236 4,422,055 652,421 120,392 276,262 175,456 141,451 117,466 - - 84,220 - - - (460,325) (102,924) (920,232) (753,276) (4,142,434) (12,797,822) 1,798,930 1,788,401 (252,169) (1,890,893) (1,422,747) (8,258,301) 32,965,224 34,084,614 34,953,991 33,429,394 45,327,897 53,311,162 21,126,166 16,067,188 13,698,344 24,081,076 30,128,146 45,967,420 12,423,666 9,323,831 6,742,973 9,759,435 12,718,116 4,510,975 $ 33,549,832 $ 25,391,019 $ 20,441,317 $ 33,840,511 $ 42,846,262 $ 50,478,395 199 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 Fiscal Year 2015 2016 2017 2018 GENERAL FUND Nonspendable $ 542,543 $ 664,254 $ 706,412 $ 705,495 Assigned - - - - Unassigned 12,115,436 12,970,670 14,884,712 19,356,804 Total General Fund $ 12,657,979 $ 13,634,924 $ 15,591,124 $ 20,062,299 ALL OTHER GOVERNMENTAL FUNDS Nonspendahle $ 11,225 $ - $ 16,485 $ 17,040 Restricted 11,791,605 18,250,934 31,914,910 45,521,700 Committed 2,801,857 3,260,236 4,341,838 3,307,731 Assigned 1,156,788 1,597,773 1,725,086 L738,216 Unassigned (352,684) (617,329) (725,296) (724,477) Total all other governmental funds $ 15,408,791 $ 22,491,614 $ 37,273,023 $ 49,860,210 Source: Annual Comprehensive Financial Report of the City. 200 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2019 2020 2021 2022 2023 2024 $ 225,974 $ 1,158,584 $ 1,155,514 $ 1,201,673 $ 883,981 $ 1,219,427 - - - - 1,869,351 5,121,172 23,121,341 26,823,013 29,764,210 40,490,726 32,729,026 29,304,968 $ 23,347,315 $ 27,981,597 $ 30,919,724 $ 41,692,399 $ 35,482,358 $ 35,645,567 $ 17,560 $ 18,080 $ - $ 500,000 $ - $ - 51,414,137 91,514,895 69,593,046 81,722,388 86,024,674 100,199,027 3,325,235 3,556,651 4,215,954 5,382,464 6,279,998 7,562,819 2,388,659 3,257,280 3,562,612 4,320,107 3,876,766 4,395,039 (228,869) (122,328) (73,237) (1,516,052) (1,438,903) $ 57,145,591 $ 98,118,037 $ 77,249,284 $ 91,851,722 $ 94,665,386 $ 110,717,982 201 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 2015 2016 2017 REVENUES Taxes $ 19,575,665 $ 20,191,927 $ 20,704,055 City gas tax 558,740 712,408 844,866 Franchise fees 5,691,960 5,732,448 5,886,791 Special assessments 35,359 65,243 52,146 Licenses and permits 4,030,120 5,751,472 6,662,790 Intergovernmental revenues 6,370,732 6,684,667 8,228,693 Charges for service 4,342,534 4,869,821 5,930,289 System development charges 961,450 6,104,579 11,733,901 Fines and forfeitures 924,266 972,560 713,059 Investment income(loss) 434,401 653,879 799,748 Miscellaneous 413,736 220,894 349,098 Total revenues 43,338,963 51,959,898 61,905,436 EXPENDITURES Current operating: Community services 20,325,635 20,784,186 21,925,169 Public works 7,512,446 7,606,128 8,291,205 Community development 4,640,737 6,981,903 5,807,836 Policy and administration 778,840 831,876 787,681 Debt service: Principal 2,117,045 2,361,892 2,378,100 Interest 1,118,238 1,059,733 977,539 Refunded bonds - - - Refunding bond issuance cost - - - Capital outlay 8,924,317 6,200,291 4,705,720 Total expenditures 45,417,258 45,826,009 44,873,250 Excess(deficiency)of revenues over(under)expenditures (2,078,295) 6,133,889 17,032,186 OTHER FINANCING SOURCES(USES) Proceeds from bond/long-term note 1,300,000 1,650,000 - Operating transfers in 6,178,215 6,378,318 4,755,215 Operating transfers out (6,445,754) (6,102,439) (5,049,792) Total other financing sources(uses) 1,032,461 1,925,879 (294,577) Net change in fund balances $ (1,045,834) $ 8,059,768 $ 16,737,609 Debt services as a percentage of non-capital expenditures 8.87% 8.63% 8.35% Source: Annual Comprehensive Financial Report of the City. 202 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2018 2019 2020 2021 2022 2023 2024 $ 21,822,129 $ 25,248,472 $ 25,582,940 $ 29,710,860 $ 31,594,698 $ 33,805,708 $ 35,464,525 887,038 888,913 831,411 695,284 819,817 816,290 825,755 6,102,443 6,218,353 6,365,589 6,980,858 7,272,781 7,883,123 8,199,638 50,036 59,999 46,554 90,251 71,140 32,136 - 7,648,235 5,178,056 4,050,568 3,705,222 4,438,449 5,320,101 5,606,927 8,737,359 9,498,510 9,364,516 12,635,993 15,332,768 8,009,367 9,559,089 6,636,913 4,648,396 5,369,990 5,553,225 6,529,148 6,806,659 7,575,581 9,860,311 4,240,910 5,606,246 5,124,725 4,410,347 8,920,940 13,887,247 698,508 843,100 828,444 1,521,113 1,957,175 2,848,638 1,674,809 1,659,107 2,343,694 2,315,941 511,899 (2,102,968) 3,854,376 6,306,052 1,204,701 1,284,229 526,208 611,322 531,363 129,841 371,845 65,306,780 60,452,632 60,888,407 67,140,752 70,854,718 78,427,179 89,471,468 22,631,248 22,051,531 23,708,112 28,732,927 27,396,574 31,874,127 32,977,055 8,899,175 6,105,157 6,153,581 6,881,610 7,358,243 7,973,375 9,222,240 5,345,399 5,272,175 5,875,274 6,827,722 6,050,814 8,946,937 8,482,845 795,586 993,346 843,032 1,029,244 1,212,217 1,360,826 2,079,429 2,454,000 2,530,800 3,117,619 2,205,000 2,777,000 3,109,700 3,292,300 892,206 799,646 809,003 568,882 630,131 610,507 567,279 - - 5,725,537 - - - - - - 59,234 - - - - 6,742,438 8,907,102 8,064,935 9,930,747 8,400,434 18,531,618 31,643,681 47,760,052 46,659,757 54,356,327 56,176,132 53,825,413 72,407,090 88,264,829 17,546,728 13,792,875 6,532,080 10,964,620 17,029,305 6,020,089 1,206,639 - - 11,910,000 - 9,312,400 - - 4,174,624 8,808,520 6,385,695 8,121,091 7,543,089 14,187,425 31,466,721 (4,662,990) (9,952,900) (7,043,924) (9,034,740) (8,509,681) (23,603,891) (16,457,555) (488,366) (1,144,380) 11,251,771 (913,649) 8,345,808 (9,416,466) 15,009,166 $ 17,058,362 $ 12,648,495 $ 17,783,851 $ 10,050,971 $ 25,375,113 $ (3,396,377) $ 16,215,805 8.16% 8.82% 8.48% 6.00% 7.50% 6.91% 6.82% 203 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 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 16,648,049 11,630,053 11,972,303 25,117,084 7,272,781 2023 16,648,049 11,630,053 11,972,303 26,011,521 7,765,651 2024 27,647,058 10,321,335 15,981,565 27,497,643 8,199,638 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 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 - - 2024 37,891,142 - 4,079,897 - - Source: Annual Comprehensive Financial Report of the City-Statement of Activities. 204 General Revenues Investment Gain(Loss)on Intergovernmental Earnings Disposition of Revenues (Loss) Capital Assets Miscellaneous Total $ 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 74,817,416 3,856,820 4,654,377 - 319,841 82,858,615 4,660,743 7,733,071 - 680,546 102,721,599 General Revenues Investment Gain(Loss)on Intergovernmental Earnings Disposition of Revenues (Loss) Capital Assets Miscellaneous Total $ - $ 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 - 4,422,055 - 117,466 46,510,560 205 CITY OF TIGARD,OREGON GOVERNMENTAL EXPENSES BY FUNCTION For the last ten fiscal years Fiscal Interest on Year Ended Community Community Policy and Long-Term June 30 Services Public Works Development Administration Debt Total 2015 $ 18,542,379 $ 10,408,399 $ 4,688,686 $ 1,323,435 $ 1,185,507 $ 36,148,406 2016 25,089,790 10,865,800 7,030,142 1,226,166 958,204 45,170,102 2017(Restated) 23,268,637 8,263,304 5,807,204 3,528,933 949,136 41,817,214 2018 24,099,976 8,900,831 5,330,390 2,945,936 863,803 42,140,936 2019 23,370,174 12,129,476 5,146,891 3,688,137 771,834 45,106,512 2020 25,961,675 9,578,442 5,817,188 3,383,319 760,211 45,500,835 2021 30,378,435 14,035,986 6,719,376 4,092,081 543,661 55,769,539 2022 27,313,548 11,755,291 6,395,322 4,715,974 623,927 50,804,062 2023 31,597,313 14,589,053 8,905,011 1,176,827 604,699 56,872,903 2024 34,162,742 23,501,283 8,507,543 2,754,893 625,540 69,552,001 CITY OF TIGARD,OREGON BUSINESS-TYPE EXPENSES BY FUNCTION For the last ten fiscal years Fiscal Year Ended June 30 Sewer Stormwater Water Total 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 2024 3,877,569 4,811,078 20,513,116 29,201,763 Source: Annual Comprehensive Financial Report of the City. 206 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 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 2024 36,290,280 8,199,638 5,606,927 9,559,089 * Includes special assessments collections,investment earnings(loss),and other revenues. Source:Annual Comprehensive Financial Report for all Governmental Fund Types 207 Charges System For Development Fines and Miscellaneous Services Charges Forfeitures Revenues* Total $ 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 7,575,581 13,887,247 1,674,809 6,677,897 89,471,468 208 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 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 27,396,574 13,409,057 1,212,217 11,384,402 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 2024 32,977,055 17,705,085 2,079,429 31,643,681 3,859,579 88,264,829 Source:Annual Comprehensive Financial Report for all Governmental Fund Types 209 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 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% 2024 7,763,750,950 311,107,712 243,367,500 8,318,226,162 3.44 16,673,470,822 49.89% *per$1,000 of assessed value/including phase in rates Source: Washington County Assessment and Taxation 210 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 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 2024 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 2023 ranged from$13.31/$1,000 to$16.60/$1,000. Source: Washington County Department of Assessment and Taxation. 211 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.23-1 No.48-J District No.2 College No.1-J Agencies Rates $ 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 - 1.05 25.34 7.79 8.03 2.12 - 0.68 - 1.05 25.97 7.78 8.03 2.12 - 0.66 - 1.06 26.06 7.74 8.19 2.11 - 0.67 - 1.03 26.18 7.75 8.25 2.11 - 0.64 - 1.05 26.24 212 CITY OF TIGARD,OREGON PRINCIPAL PROPERTY TAXPAYERS For current and nine years ago 2024 2015 Percentage Percentage Taxable of Total City Taxable of Total City Taxpayer Assessed Value Rank Assessed Value Assessed Value Rank Assessed Value Pacific Realty Associates $ 267,332,833 1 3.79% $ 203,856,211 1 3.86% PPR Washington Square LLC 159,837,161 2 2.27% 138,610,228 2 2.62% Lincoln Center LLC 114,355,418 3 1.62% 85,283,634 3 1.61% Comcast Corporation 67,710,540 4 0.96% 35,400,500 5 0.67% Portland General Electric 56,480,000 5 0.80% 29,782,000 6 0.55% AG EHC II(NWHM)Multi State 2 LLC 9,422,700 6 0.13% - Northwest Natural Gas 43,972,000 7 0.62% - ROIC Oregon LLC 40,900,020 8 0.58% - PPR Square Too LLC 39,531,520 9 0.56% - KW Fund VI Arbor Heights LLC 30,702,340 10 0.44% - Frontier Communications - 39,391,000 4 0.72% Macy's Department Stores - 24,644,860 7 0.48% FO Portland Property LLC 24,173,770 9 0.46% Constance Robinson(Trust) - 24,146,130 10 0.48% Sprint/Nextel - 25,858,900 8 0.80% Total $ 830,244,532 11.78% $ 631,147,233 12.26% Source: Washington County Assessment&Taxation records. 213 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 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% 2024 25,720,327 24,634,943 95.78% 230,562 24,865,504 96.68% 397,827 1.55% 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. 214 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 IZi to Amount Due Added Assessments 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% - - 2024 - - 0.00% - - Ill 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. 215 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 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% 2024 3,292,300 567,279 3,859,579 88,264,829 4.37% Source: Annual Comprehensive Financial Report of the City. 216 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 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 2024 56,182 8,318,226,162 17,772,998 7,440,128 10,332,870 0.12% 183.92 Source: City budget documents,Annual Comprehensive Financial Reports of the City and Washington Department of Assessment and Taxation. 217 CITY OF TIGARD,OREGON COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30,2024 Percent Amount Applicable Applicable Net Debt Inside City of Inside City of Jurisdiction Outstanding Tigard* Tigard Tigard/Tualatin School District#23-J $ 285,455,000 49.74% $ 141,982,177 Tualatin Hills Park&Rec District 40,267,598 0.00% 40 Metro 765,485,443 3.51% 27,147,762 Beaverton School District#48 1,072,094,363 3.69% 39,540,984 Portland Community College 617,155,000 4.42% 28,863,341 Washington County 134,636,465 10.08% 13,573,106 Northwest Regional ESD 13,060,000 7.94% 1,053,931 Tualatin Valley Fire&Rescue District 48,930,000 10.84% 5,828,713 Sub-Total of Overlapping Debt 2,977,083,869 257,990,054 City of Tigard 17,772,998 100.00% 17,772,998 Total for Overlapping Debt $ 2,994,856,867 $ 275,763,052 *The City of Tigard does not calculate this percentage;it is provided by the State of Oregon. Source: Oregon State Treasury Debt Management Division. 218 CITY OF TIGARD,OREGON COMPUTATION OF LEGAL DEBT MARGIN For the last ten fiscal years 2015 2016 2017 2018 Debt limit $ 230,989,826 $ 242,482,552 $ 269,677,150 $ 296,512,995 Total net debt applicable to limit 24,775,000 22,670,000 20,505,000 18,269,800 Legal debt margin $ 206,214,826 $ 219,812,552 $ 249,172,150 $ 278,243,195 Total net debt applicable to the limit as a percentage of debt limit 10.73% 9.35% 7.60% 6.16% 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. 219 2019 2020 2021 2022 2023 2024 $ 322,625,386 $ 338,510,748 $ 383,710,880 $ 408,394,927 $ 478,090,594 $ 500,212,225 15,965,000 19,840,000 17,635,000 24,170,400 21,060,700 17,768,400 $ 306,660,386 $ 318,670,748 $ 366,075,880 $ 384,224,527 $ 457,029,894 $ 482,443,825 4.95% 5.86% 4.60% 5.92% 4.41% Legal Debt Margin Calculation at June 30,2024 True cash value(2023-2024) $ 16,673,740,822 Limit as a percent 3% Debt Limit(as a percent of real market value) 500,212,225 Debt applicable to limit: Gross bonded debt $ 17,772,998 Excludable debt-bond premium (4,598) Debt subject to limitation 17,768,400 Legal debt margin-amount available for future indebtedness 482,443,825 Total net debt applicable to the limit as a percent of debt limit 3.55% 220 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 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 - - - 2024 56,182 17,772,998 - - - *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 ofTWSA,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. 221 Business-type Activities Percentage Notes Payable Revenue Total Primary of Personal Per Debt Bonds* Government Income** Capita $ 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 1,110,319 114,534,830 133,418,147 4.18% 2,375 222 CITY OF TIGARD,OREGON COMPUTATION OF WATER REVENUE BONDS DEBT COVERAGE For the last ten fiscal years _ 2015 2016 2017 2018 Gross revenues $ 18,944,301 $ 20,918,497 $ 20,926,322 $ 23,078,014 System Development Charges(SDC)related: SDC Fund investment earnings(loss) 9,294 35,173 6,660 4,694 Reimbursement fee receipts(2) 308,896 1,242,297 3,010,263 1,924,587 Improvement fee receipts(3) 503,853 1,569,645 3,521,776 2,319,737 Total SDC-related 822,043 2,847,115 6,538,699 4,249,018 Operating expense: Salaries and wages 1,462,677 1,117,286 1,148,575 874,348 Contracted services 336,178 353,396 445,840 407,450 Water purchases 2,644,491 4,212,357 1,339,637 1,869,824 General,admin and other 2,781,892 3,111,194 3,572,450 3,931,142 Total operating expenses 7,225,238 8,794,233 6,506,502 7,082,764 Net revenues(including SDCS) 12,541,106 14,971,379 20,958,519 20,244,268 Net revenues(excluding SDCS) $ 11,719,063 $ 12,124,264 $ 14,419,820 $ 15,995,250 Debt service-first lien bonds: 2012 bonds $ 4,719,850 $ 4,719,850 $ 6,561,800 $ 6,561,050 2015 bonds - 1,378,238 1,670,300 1,667,900 2020 bonds - - - - Total debt service $ 4,719,850 $ 6,098,088 $ 8,232,100 $ 8,228,950 Debt service coverage-first lien bonds (excluding system development charges) 2.48 1.99 1.75 1.94 Ili 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. 223 2019 2020 2021 2022 2023 2024 $ 23,751,073 $ 22,607,832 $ 24,836,173 $ 24,065,642 $ 27,296,414 $ 26,905,307 343,069 351,524 68,639 (247,814) 366,519 862,350 921,379 1,258,967 934,950 1,034,638 1,442,870 1,554,300 949,056 1,600,366 1,120,049 1,320,695 1,740,326 1,626,245 2,213,504 3,210,857 2,123,638 2,107,519 3,549,715 4,042,895 1,005,720 1,172,511 1,216,954 1,120,169 1,130,422 1,356,615 453,971 704,045 708,202 318,806 612,201 361,917 1,685,669 1,685,705 1,755,408 1,787,040 1,892,114 1,896,531 4,498,769 5,258,318 6,096,039 6,129,769 6,580,214 7,526,928 7,644,129 8,820,579 9,776,603 9,355,784 10,214,951 11,141,991 18,320,448 16,998,110 17,183,208 16,817,377 20,631,178 19,806,211 $ 16,106,944 $ 13,787,253 $ 15,059,570 $ 14,709,858 $ 17,081,463 $ 15,763,316 $ 6,563,750 $ 6,563,050 $ 2,331,580 $ 2,412,300 $ 2,412,300 $ - 1,666,000 1,668,800 1,666,300 1,668,500 1,668,500 1,675,300 - - 2,961,663 2,962,463 2,962,463 5,448,463 $ 8,229,750 $ 8,231,850 $ 6,959,543 $ 7,043,263 $ 7,043,263 $ 7,123,763 1.96 1.67 2.16 2.09 2.43 2.21 224 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(1'5) Per Capita Enrollment(2) Income(3.3) of dollars)(3) Area(4) 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 11,620 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% 2024 56,182 148,059 11,620 56,752 3,188,441 3.3% Sources of Information: (11 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 (5)ESRI,2024-9-27 225 CITY OF TIGARD,OREGON PRINCIPAL EMPLOYERS For current year and nine years ago 2024 2015 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Tigard-Tualatin School District#23-J 1,364 1 4.26% 779 1 2.76% Consumer Cellular 468 2 1.46% Nordstrom 431 3 1.35% 422 2 1.49% Costco Wholesale Corporation 403 4 1.26% 273 6 0.97% Conduent Inc 381 5 1.19% City of Tigard 375 6 1.17% 270 7 0.96% Comcast 324 7 1.01% 228 9 0.81% Macy's Department Stores 255 8 0.80% 399 4 1.41% Cheesecake Factory 253 9 0.79% Biamp Systems 236 10 0.74% Capital One 413 3 1.46% Oregon Public Employees Retirement 396 5 1.40% Gerber Legendary Blades 232 8 0.82% Servicemaster Buidling Maintenance 220 10 0.78% Total 4,490 14.01% 3,632 12.86% Source: City of Tigard Business License Records 226 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 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 2024 11 73,728,612 380 153,024,459 (1)From City of Tigard Building Department. Multi-family permits are included in the number of permits issued for residential construction. 227 CITY OF TIGARD,OREGON FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION For the last ten fiscal years Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 GOVERNMENTAL ACTIVITIES Community services Police 82.50 83.50 87.50 88.50 84.50 85.00 97.00 94.00 93.00 95.50 Library 34.80 38.30 39.70 40.90 38.80 39.20 39.20 39.20 39.30 39.30 Public works Administration 9.20 9.00 9.50 9.75 9.00 9.95 8.95 10.00 11.00 11.00 Parks maintenance 10.75 11.67 12.17 10.40 10.50 12.50 15.30 15.40 15.40 17.40 Recreation - - 0.33 2.35 1.00 2.35 2.45 2.65 2.65 3.30 Street maintenance 7.25 6.33 7.00 7.45 7.50 8.25 7.30 7.00 7.00 7.00 Healthy Streams - - - - - - - - - - Engineering 14.00 14.00 17.00 19.00 19.00 20.00 23.00 22.00 22.00 22.00 Community development Administration 2.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Building inspection 9.00 9.00 13.00 13.00 13.60 14.10 15.35 15.35 16.35 16.35 Development Services(a) 3.80 3.80 - - - - - - - - Community Planning 9.00 9.00 13.50 13.50 12.65 12.65 13.65 15.65 14.65 17.65 Economic Development 2.00 2.00 2.00 3.00 2.00 3.00 3.00 3.00 3.00 4.00 Policy and Administration City management 5.00 5.50 4.90 5.90 3.90 3.90 4.90 4.90 8.90 8.90 City attorney(b) - - - - 1.10 1.10 1.10 1.10 1.10 1.10 Human resources 4.50 4.80 4.50 4.34 4.14 4.14 5.00 5.00 5.00 5.00 Information technology 7.00 7.00 8.00 9.00 9.00 12.00 12.00 18.00 20.00 20.00 Risk management 2.10 2.30 1.50 1.76 1.76 2.06 2.00 2.10 2.30 2.50 Finance administration 3.00 3.00 3.00 3.50 3.00 3.00 4.00 4.00 5.00 5.00 Financial operations 4.60 4.60 4.80 5.30 4.80 4.80 5.80 5.80 5.80 6.80 Utility Billing 6.80 6.80 6.80 7.20 7.20 7.70 7.70 7.20 7.20 8.20 Design&Communication 3.05 3.05 4.25 4.75 4.75 5.35 5.60 5.60 5.35 5.35 Contracts&Purchasing 2.00 2.00 2.00 2.00 2.00 2.50 2.50 3.00 3.00 2.00 City Recorder/Records 4.15 3.35 3.85 3.85 3.85 3.25 3.25 3.25 3.00 3.00 Municipal court 3.65 3.65 3.50 3.50 3.50 6.50 9.90 9.90 9.65 9.65 Fleet maintenance(c) 1.95 1.80 2.35 2.85 2.60 2.60 2.75 2.75 2.50 3.00 Property management(c) 4.85 5.20 4.90 6.55 6.65 6.65 6.50 7.50 7.00 7.00 BUSINESS-TYPE ACTIVITIES Public works Sanitary sewer 5.50 6.00 6.50 6.25 6.25 5.50 5.50 5.60 5.60 6.60 Stormwater 6.50 7.00 7.50 9.00 8.25 5.75 5.50 5.60 5.60 6.60 Water 13.00 13.00 13.00 11.25 12.50 14.05 14.05 13.80 13.80 13.80 Green team - - - - - 4.00 4.30 4.30 4.30 4.30 Total 261.95 268.65 286.05 297.85 286.80 304.85 330.55 336.65 342.45 355.30 Source: City of Tigard Finance Department (a) Development services was budgeted with Building in FY 2016-17. (b) City attorney was changed from a contract to an employee in FY 2017-18. (c) Fleet/Property Management budgeted with Public Works until FY 2015-16. 228 CITY OF TIGARD,OREGON OPERATING INDICATORS BY FUNCTION/PROGRAM For the last ten fiscal years Functions/Programs 2015 2016 2017 GOVERNMENTAL ACTIVITIES Community services Police-number of traffic citations issued 6,462 5,745 5,057 Police-number of calls for service 47,247 43,299 41,874 Library-number of items in collection 248,225 253,725 229,344 Library-materials checked out each year 1,280,376 1,243,774 1,159,446 Public works Acres of park land maintained 255 301 301 Crack sealing completed annually(linear feet) 160,000 160,000 107,727 Vehicles maintained to industry standard 160 146 162 Community development Number of inspections(Tigard) 9,009 10,814 27,551 Number of permits(all types)in Tigard 2,958 3,860 4,281 Number of development applications 251 388 818 Policy and administration Number of job applications 2,100 2,200 3,726 Laptops and computers to maintain 525 530 585 Insured value of city's real property**** (in millions) $ 82 $ 82 $ 120 Number of utility bills sent 244,000 256,500 248,560 Average fine amount collected $ 160 $ 160 $ 149 BUSINESS-TYPE ACTIVITIES Sewer Miles of sewer lines cleaned 42 42 51 21 24 23 Stormwater Miles of stormwater lines cleaned 21 21 23 Number of water quality facilities improved 126 126 133 Total number of catch basins cleaned 2,840 2,917 3,939 Water Number of accounts 18,524 18,767 19,311 ****Includes value of contents of buildings. Source: City of Tigard Finance Department 229 2018 2019 2020 2021 2022 2023 2024 5,260 5,972 5,167 16,504 23,790 17,315 10,522 42,075 42,482 38,810 35,441 35,886 34,829 38,743 238,919 220,877 222,438 235,894 254,822 210,000 208,350 1,227,561 1,216,642 1,310,382 1,157,942 1,186,552 1,200,000 1,280,813 305 306 311 389 550 389 376 262,659 92,400 521,298 760,682 - - - 152 156 164 161 160 161 171 25,793 17,540 18,736 14,503 18,442 18,470 23,282 4,189 3,776 3,384 3,507 4,609 4,106 3,840 843 876 875 984 986 924 307 2,605 3,393 2,503 3,302 3,567 2,563 3,261 593 601 702 741 788 766 781 $ 122 $ 129 $ 130 $ 133 $ 135 $ 143 $ 163 254,150 258,252 260,260 262,490 268,092 262,382 277,032 $ 133 $ 119 $ 109 $ 79 $ 89 $ 100 $ 164 57 59 63 54 46 58 70 29 30 25 46 25 27 28 20 26 21 21 14 - 40 138 143 152 181 186 200 - 2,620 2,737 2,864 2,904 1,358 2,376 2,616 19,689 19,849 20,064 20,196 20,269 20,395 21,750 230 CITY OF TIGARD,OREGON CAPITAL ASSETS STATISTICS BY FUNCTION For the last ten fiscal years Functions/Programs 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 21 24 24 29 31 33 35 40 Acres of park and greenspaces 514 514 548 552 553 558 558 558 563 569 Miles of streets 150.0 150.0 157.0 175.7 175.7 189.7 324.0 326.0 326.0 391.0 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 166.9 168.0 168.3 168.5 168.7 168.7 168.7 168.7 168.7 187 Stormwater Total miles of stormwater lines 130.0 130.0 131.2 131.8 136.7 135.1 135.1 135.1 135.1 147 Number of water quality facilities 126 126 164 210 240 240 240 240 240 240 Water Water mains in miles 248.0 248.0 251.3 251.3 260.0 260.0 265.0 265.0 265.0 274.0 Number of reservoirs 13 14 14 14 14 14 14 14 14 14 Source:City of Tigard Finance Department 231 CITY OF TIGARD,OREGON MISCELLANEOUS STATISTICAL DATA June 30,2024 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) 12.8 Miles of streets 391 Police protection: -Number of stations 1 -Number of sworn police officers 69 Education: - Attendance centers 13 -Number of teachers\FTE 754 -Number of students 11,620 Building Permits issued(2023-2024) 391 Recreation and culture: -Number of parks 34 developed and 6 underdeveloped,totaling 40 at 376 acres -Greenways 193.26 acres -Number of libraries 1 -Number of volumes(estimated) 208,350 Employees: -Classified service(union) 197 -Unclassified(non-union) 179 Information obtained from the various departments of the City of Tigard and Tigard/Tualatin School District#23-1 City student totals not available. 232 No content appears on this page by design. 233 Audit Comments and Disclosure Requirements 234 ® 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, 2024, and the related notes to the financial statements,which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 16, 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. 235 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. (11*Sr Portland, Oregon December 16, 2024 236 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 (the City)as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise City's basic financial statements, and have issued our report thereon dated December 16, 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 Highway funds Investments Public contracts and purchasing 237 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 over-expenditures of$654 in the Public Works Engineering Fund for the year ended June 30, 2024. The City had over-expenditures of$4,019,104 in the Central Services Fund for the year ended June 30, 2024. 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. Afrieoe., Keith Simovic Moss Adams LLP Portland, Oregon December 16, 2024 238 i •p a+;q: , i•pr. AC ►a. V 9' Q i` e •Tiga°rd 4 13125 SW Hall Boulevard Tigard, OR 97223 www.tigard-or.gov SUPPLEMENTAL PACKET FOR _...,,; (GA. `E GF MEETING) y TCDA Town Center Development Agency (A Component Unit of the City of Tigard, Oregon) Annual Financial Report FOR THE FISCAL YEAR ENDING JUNE 30, 2024 I*, ' J/ A 3 ` Y O. : ilf ,:' .,/'''f ',..., . I 441 i .11 1 rft „., .,„. fl� :i .,, . / li ,... 0 iti , , t i ' I.--- :1:-.100- S 3 of ''. .j.- , 1 Ili_ t... i voila w fi 0 ; ,::,, ! , ___T----- 1 11 --/ .. l :terI. '' 4 .• . .:;. . ! ow......1t,,,,. .,.ii , 4.1111,410. * 4iE1.- z lik ilkI .a II1L 4-„ Nov,,�,,,, FULLY Leasing Prepared by: City of Tigard - Finance Department No content appears on this page by design TOWN CENTER DEVELOPMENT AGENCY (A Component Unit of the City of Tigard, Oregon) ANNUAL FINANCIAL REPORT For the fiscal year ended June 30, 2024 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 3 Management's Discussion and Analysis 7 Basic Financial Statements: Government-Wide Financial Statements Statement of Net Position 14 Statement of Activities 15 Fund Financial Statements—Governmental Funds Balance Sheet and Reconciliation 16 Statement of Revenues, Expenditures and Changes in Fund Balance and Reconciliation 17 Notes to the Basic Financial Statements 20 Other Supplementary Information: Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual: City Center Capital Improvements Fund 29 Tigard Triangle Capital Improvements Fund 30 City Center Debt Service Fund 31 Tigard Triangle Debt Service Fund 32 Audit Comments and Disclosure Requirements: Independent Auditor's Report Required by Oregon State Regulations 34 Town Center Development Agency List of Officials Fiscal Year 2023-2024 TOWN CENTER DEVELOPMENT AGENCY BUDGET COMMITTEE Jake Schlack Mayor Heidi Lueb Timothy Cadman Councilor Yi-Kang Hu Leah Voit Councilor Jeanette Shaw Kelli Pement Vacant Clarissa Benfield Councilor Maureen Wolf TOWN CENTER DEVELOPMENT AGENCY BOARD Heidi Lueb, Chair Yi-Kang Hu Maureen Wolf Vacant Jeanette Shaw EXECUTIVE DIRECTOR Steve Rymer COMMUNITY DEVELOPMENT DIRECTOR Sambo Kirkman, Interim REDEVELOPMENT MANAGER 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 2 ® 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, 2024, 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, 2024, 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 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. 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. 3 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 of Matter 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 30,2024,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. 4 Supplementary Ino formation 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 In formation 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 December 16, 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. Airteci, ;;4611.11b"..". Keith Simovic, Partner for Moss Adams LLP Portland, Oregon December 16, 2024 5 No content appears on this page by design. 6 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, 2024. 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 $9,346,526. Of this amount, $4,848,241 is restricted for the repayment of debt, and $4,138,809 is for net investment in capital assets.The agency has an unrestricted net position of$359,476. • The agency's net position(assets less liabilities)increased$1,782,950 over the course of the year, primarily due to property tax revenue exceeding expenses. • In the fund financial statements for fiscal year 2023-24,of the expenditures in the capital projects fund types ($1,038,825), capital outlay accounted for $375,974, most of which was for the completion of the downtown plaza. The payments in the debt service fund types ($1,281,182) 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 $2,579,148 in revenue from property taxes and $301,687 in interest earnings. 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. 7 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 Improvements Fund, Tigard Triangle Debt Service Fund and Tigard Triangle Capital Improvements 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$9,346,526 in fiscal year 2024 compared to a net position of$7,563,576 in fiscal year 2023. A significant portion of the agency's net position(44.3 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, they are not available for future spending. In fiscal year 2024, capital assets increased by a net amount of$318,399 as the agency completed construction on the downtown universal plaza project.$4,848,241 or 51.9 percent of net position is restricted for the payment of debt incurred by the agency.The agency has an unrestricted net position of$359,476 or 3.8 percent. 8 Town Center Development Agency Summary of Net Position June 30, 2024 2023 Assets Current and other assets $ 11,841,401 $ 11,592,804 Capital assets 12,383,148 12,064,749 Total assets 24,224,549 23,657,553 Liabilities Current liabilities 1,262,053 1,545,064 Long-term I i a bi I iti es 13,615,970 14,548,913 Total liabilities 14,878,023 16,093,977 Net position Net investmentincapita l assets 4,138,809 3,576,577 Restricted 4,848,241 4,103,104 Unrestricted 359,476 (116,105) Total net position $ 9,346,526 $ 7,563,576 Town Center Development Agency Summary of Changes in Net Position Year Ended June 30, 2024 2023 Revenues General revenues Property taxes $ 2,585,748 $ 2,136,489 Intergovernmental - 2,015,452 Interest earnings 301,687 430,737 Total revenues 2,887,435 4,582,678 Expenses Community development 720,426 1,772,327 Interest on long-term debt 384,059 369,819 Total expenses 1,104,485 2,142,146 Change in net position 1,782,950 2,440,532 Net position - beginning 7,563,576 5,123,044 Net position - ending $ 9,346,526 $ 7,563,576 9 Town Center Development Agency Management's Discussion and Analysis Capital Assets and Debt Administration Capital Assets As of June 30, 2024, the agency had invested $12,383,148 in capital assets as reflected in the following table: Capital Assets,Net of Depreciation June 30, 2024 2023 Land $ 1,279,951 $ 1,279,951 Construction in progress 8,767,016 9,214,042 Infrastructure 2,336,181 1,570,756 $ 12,383,148 $ 12,064,749 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 and completed in fiscal year 2023-2024. Additional information on the agency's capital assets can be found on page 19 of this report. Debt Under the Intergovernmental Agreement(IGA) between the agency and the City of Tigard,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. At June 30, 2024, the agency had seven outstanding loan balances totaling$1,811,513. Of this amount, $883,981 was due to the general fund and $927,532 was due to the sewer fund. 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, 2024, the outstanding balance on this debt was$7,813,400. 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 30,2024,the outstanding balance on the bonds was$4,924,000. Additional information on the agency's debt can be found on pages 19-21 of this report. 10 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 Improvements Fund, which functions as the agency's general operations fund for the Downtown Urban Renewal Area, and the Tigard Triangle Capital Improvements 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 Improvements Fund activity is supported by loans from the City of Tigard and the bond issuances. City loans will be repaid with interest once the agency begins generating enough tax increment revenue.The focus of the fiscal year 2023-24 City Center budget was primarily on the Universal Plaza. The budget for fiscal year 2024-25 will include funding to acquire park land in the Triangle and design and engineering of the Nick Wilson Plaza. The agency will also provide development assistance to support affordable and mixed-use housing in the tax increment financing (TIF) districts. The agency will further engage with property and business owners to improve properties with matching improvement grants in the districts. Economic Factors The Town Center Development Agency implements urban renewal plans that were approved by voters in 2006 and 2017 (and amended in 2021). The primary funding source for the agency is property tax increment financing (TIF), 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 downtown 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 June 30,2024,the total debt issued is$12.5 million.Current and proposed projects include additional property improvement grants for local businesses, street and trail improvements,and construction of Phase 2 of Universal Plaza. 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 June 30, 2024, 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. Current and proposed projects include acquisition and development of parks, street and trail improvements,and development assistance for affordable and mixed-use buildings. 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. 11 Basic Financial Statements 12 No content appears on this page by design 13 TOWN CENTER DEVELOPMENT AGENCY STATEMENT OF NET POSffION June 30,2024 Governmental Activities ASSETS Restricted cash and investments $ 11,257,462 Accounts receivable 46,652 Property taxes receivable 37,287 Note receivable 500,000 Capital assets,not being depreciated 10,046,967 Other capital assets,net of depreciation 2,336,181 Total assets 24,224,549 LIABILITIES Accounts payable and accrued liabilities 301,877 Interest payable 27,233 Due within one year Loans from the City of Tigard 91,743 Bonds payable 841,200 Due in more than one year Loans from the City of Tigard 1,719,770 Bonds payable 11,896,200 Total liabilities 14,878,023 NET POSITION Net investment in capital assets 4,138,809 Restricted for debt service 4,848,241 Unrestricted 359,476 Total net position $ 9,346,526 The accompanying notes are an integral part of the basic financial statements. 14 TOWN CENTER DEVELOPMENT AGENCY STATEMENT OF ACTIVITIES For the year ended June 30,2024 Net(Expense)/ Revenue and Change in Net Position Total Governmental Functions/Programs Expenses Activities Governmental activities: Community development $ 720,426 $ (720,426) Interest on long-term debt 384,059 (384,059) Total governmental activities $ 1,104,485 (1,104,485) General revenues: Property taxes 2,585,748 Interest and investment earnings 301,687 Total general revenues 2,887,435 Change in net position 1,782,950 Net position-beginning 7,563,576 Net position-ending $ 9,346,526 The accompanying notes are an integral part of the basic financial statements. 11 15 TOWN CENTER DEVELOPMENT AGENCY GOVERNMENTAL FUNDS COMBINING BALANCE SHEET AND RECONCILIATION TO STATEMENT OF NET POSITION June 30,2024 City Center Tigard Triangle Capital Capital City Center Tigard Triangle Improvements Improvements Debt Service Debt Service Fund Fund Fund Fund Total ASSETS Restricted cash and investments $ 442,781 $ 6,019,741 $ 1,604,532 $ 3,190,408 $ 11,257,462 Accounts receivable 2,837 27,801 7,506 8,508 46,652 Property taxes receivable - - 14,082 23,205 37,287 Note receivable - 500,000 - - 500,000 Total assets $ 445,618 $ 6,547,542 $ 1,626,120 $ 3,222,121 $ 11,841,401 UABILITIES Accounts payable and accrued liabilities $ 301,877 $ - $ - $ - $ 301,877 Total liabilities 301,877 - - - _ 301,877 DEFERRED INFLOWS OF RESOURCES Unavailable revenue Propertytaxes - - 11,395 18,582 29,977 FUND BALANCE Restricted for: Debt service - - 1,614,725 3,203,539 4,818,264 Urban development 143,741 6,547,542 - - 6,691,283 Total fund balances 143,741 6,547,542 1,614,725 3,203,539 11,509,547 Total liabilities,deferred inflow of resources,and fund balances $ 445,618 $ 6,547,542 $ 1,626,120 $ 3,222,121 $ 11,841,401 Reconciliation of fund balance to net position forgovernmental activities Fund balance for governmental funds $ 11,509,547 Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds 12,383,148 Propertytaxes earned but not available 29,977 Interest on long-term debt not accrued in the governmental funds (27,233) Long-term liabilities that are not due and payable in the current period and therefore,are not reported in the governmental funds Loans from the City of Tigard (1,811,513) Bonds payable (12,737,400) Net position for governmental activities $ 9,346,526 The accompanying notes are an integral part of the basic financial statements. 16 TOWN CENTER DEVELOPMENT AGENCY GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE AND RECONCILIATION TO STATEMENT OF ACTIVITIES For the year ended June 30,2024 City Center Tigard Triangle Capital Capital City Center Tigard Triangle Improvements Improvements Debt Service Debt Service Fund Fund Fund Fund Total REVENUES Property taxes $ - $ - $ 929,133 $ 1,650,015 $ 2,579,148 Interest and investment earnings 2,361 56,633 109,906 132,787 301,687 Total revenues 2,361 56,633 1,039,039 1,782,802 2,880,835 EXPENDITURES Communitydevelopment 426,148 236,703 - - 662,851 Capital improvements 375,974 - - - 375,974 Debt Service - - 603,496 677,686 1,281,182 Total expenditures 802,122 236,703 603,496 677,686 2,320,007 Change in fund balance before other financing sources (uses) (799,761) (180,070) 435,543 1,105,116 560,828 OTHER FINANCING SOURCES(USES) Transfer in 802,122 - - - 802,122 Transfer out - - (802,122) - (802,122) Total other fina ncing(uses) 802,122 - (802,122) - - Change in fund balance 2,361 (180,070) (366,579) 1,105,116 560,828 Fund balance -beginning of the year 141,380 6,727,612 1,981,304 2,098,423 10,948,719 Fund balance -end of the year $ 143,741 $ 6,547,542 $ 1,614,725 $ 3,203,539 $ 11,509,547 Reconciliation of change in fund balance to change in net position forgovernmental activities Change in fund balance for governmental funds $ 560,828 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 375,974 Current year depreciation expense (57,575) Change in unavailable property taxes 6,600 Change in accrued interest payable 1,035 Principal payments expensed on the fund financial statements 896,088 Change in net position for governmental activities $ 1,782,950 The accompanying notes are an integral partofthe basic financial statements. 17 Notes to Basic Financial Statements 18 No content appears on this page by design 19 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 Agency was formed under the provisions of Oregon Revised Statutes,Chapter 457(ORS 457).The City Center Urban Renewal Plan was approved by voters on May 16, 2006,to provide improvements in the downtown area so that it will be economically healthy while maintaining its "uniquely Tigard" character. The plan's original duration was 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 Tigard Municipal Code. 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 urban renewal plans. 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 downtown and the Tigard Triangle (an area bordered roughly by 1-5, Highway 217, and Highway 99 West). The Agency is a blended component unit of the City 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. 20 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 Improvements Fund accounts for the acquisition and development of capital assets related to the City Center Urban Renewal Area. The Tigard Triangle Capital Improvements 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. 21 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. 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 22 Town Center Development Agency Notes to the Basic Financial Statements 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. 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. The Agency's actual expenditures were within budgeted amounts for the year ended June 30,2024,with the exception of the City Center Debt Service fund,which reported an over expenditure of$28,746. 23 Town Center Development Agency Notes to the Basic Financial Statements 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, 2024,the Agency's share of the City's cash and investment pool, including restricted and unrestricted,totaled$11,257,462, 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. 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 2.0 percent.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, 2024, 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. Subsequent Event In November 2024,the City determined that all requirements had been met for loan forgiveness. The City is no longer due this receivable and Community Partners for Affordable Housing are no longer liable for the repayment of this loan. 24 Town Center Development Agency Notes to the Basic Financial Statements 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. Balances Balances Governmental Activities June 30,2023 Additions Deletions Transfers June 30,2024 Non-depreciable: Land $ 1,279,951 $ - $ - $ - $ 1,279,951 Construction in progress 9,214,042 375,974 - (823,000) 8,767,016 Total non-depreciable: 10,493,993 375,974 - (823,000) 10,046,967 Depreciable: Infrastructure 1,951,748 - - 823,000 2,774,748 Accumulated depreciation: Infrastructure (380,992) (57,575) - - (438,567) Net depreciable assets 1,570,756 (57,575) 823,000 2,336,181 Governmental activities capital assets,net $ 12,064,749 $ 318,399 $ - $ - $ 12,383,148 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$43 million for a duration of 29 years. As of fiscal year 2023-2024, 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 2023-2024, the TTUR issued $8.9M in total debt against the maximum indebtedness. 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 percent to 4.05 percent. Interest-only payments are scheduled to be paid to the City prior to July 1,each fiscal year. 25 Town Center Development Agency Notes to the Basic Financial Statements 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 2023-2024,the Agency elected to repay$74,788 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 and will be repaid over 15 years with an interest rate of 2.85 percent with final payment in 2036. At June 30, 2024, the outstanding balance on the bond was$3,944,500 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 20218 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 IGA for CCU R 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. The bonds will be repaid over 15 years with an interest rate of 1.69 percent with final payment in 2036. At June 30, 2024, the outstanding balance on the bonds was $3,012,200 for the Series 2021A and$856,700 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 20196 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 IGA for CCUR to be obligated for the debt service payments on the bonds. The bonds will be repaid over 15 years with an interest ranging from 2.36 percent to 2.99 percent with final payment in 2034.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, 2024, the outstanding balance on the bonds was $1,564,000 for the Series 2019A and $3,360,000 for the Series 2019B. 26 Town Center Development Agency Notes to the Basic Financial Statements Long-term debt activity for the year ended June 30, 2024,was as follows: Balances Balances Due in June 30,2023 Additions Retirements June 30,2024 one year Loans from City Loan#5-2013A $ 102,320 $ - $ - $ 102,320 $ 10,004 Loan#5-2013B 40,112 - - 40,112 3,922 Loan#6-2014 361,000 - - 361,000 - Loan#7-2015 254,000 - - 254,000 - Loan#8-2019 183,273 - - 183,273 - Loan#9-2020 45,596 - - 45,596 - Loan#10-2023 900,000 - (74,788) 825,212 77,817 Total loans from City 1,886,301 - (74,788) 1,811,513 91,743 Direct placements bonds Series 2019A,Key Bank 1,650,000 - (86,000) 1,564,000 88,000 Series 2019B,Key Bank 3,536,000 - (176,000) 3,360,000 181,000 Series 2021,Zion Bank 4,217,000 - (272,500) 3,944,500 280,300 Series 2021A,Zion Bank 3,237,000 - (224,800) 3,012,200 228,500 Series 2021B,Zion Bank 918,700 - (62,000) 856,700 63,400 Total bonds 13,558,700 - (821,300) 12,737,400 841,200 Total long-term debt $ 15,445,001 $ - $ (896,088) $ 14,548,913 $ 932,943 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 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 166,304 28,352 300,000 106,126 627,100 126,866 1,093,404 261,344 2030-2033 766,225 69,633 1,286,000 338,536 2,657,100 358,398 4,709,325 766,567 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 $ 1,811,513 $ 267,038 $4,924,000 $1,010,309 $7,813,400 $1,233,141 $ 14,548,913 $2,510,488 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 30,2024. 8. Commitments: The Agency has entered into a contract with an outstanding commitment of$226,648 at June 30, 2024,for the Nick Wilson Plaza project.The contract will be paid with debt proceeds, property taxes, and various other sources. 27 Other Supplementary Information 28 TOWN CENTER DEVELOPMENT AGENCY CITY CENTER CAPITAL IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Interest and investment earnings $ 69 $ 69 $ 2,361 $ 2,292 EXPENDITURES Community development 885,000 924,555 426,148 498,407 Capital improvements 385,000 600,500 375,974 224,526 Total expenditures 1,270,000 1,525,055 802,122 722,933 Change in fund balance before other financing sources(uses) (1,269,931) (1,524,986) (799,761) 725,225 OTHER FINANCING SOURCES(USES) Transfer in 1,270,000 1,270,000 802,122 (467,878) Change in fund balance 69 (254,986) 2,361 257,347 Fund balance-beginning of the year 59,583 59,583 141,380 81,797 Reserve for expenditures and fund balance-end of the year $ 59,652 $ (195,403) $ 143,741 $ 339,144 29 TOWN CENTER DEVELOPMENT AGENCY TIGARD TRIANGLE CAPITAL IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Interest and investment earnings $ - $ - $ 56,633 $ 56,633 EXPENDITURES Community development 2,530,000 2,580,000 236,703 2,343,297 Ca pita I improvements 1,000,000 1,000,000 - 1,000,000 Total expenditures 3,530,000 3,580,000 236,703 3,343,297 Change in fund balance before other financing sources(uses) (3,530,000) (3,580,000) (180,070) 3,399,930 OTHER FINANCING SOURCES(USES) Transfer in 630,000 630,000 - (630,000) Transfer out (2,958,000) (2,958,000) - 2,958,000 Total other financing(uses) (2,328,000) (2,328,000) - 2,328,000 Change in fund balance (5,858,000) (5,908,000) (180,070) 5,727,930 Fund balance-beginning of the year 6,623,122 6,623,122 6,727,612 104,490 Reserve for expenditures and fund balance-end of the year $ 765,122 $ 715,122 $ 6,547,542 $ 5,832,420 30 TOWN CENTER DEVELOPMENT AGENCY CITY CENTER DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Property taxes $ 848,511 $ 848,511 $ 929,133 $ 80,622 Interest and investment earnings 4,035 4,035 109,906 105,871 Total revenues 852,546 852,546 1,039,039 186,493 EXPENDITURES Debt Service 574,750 574,750 603,496 (28,746) Change in fund balance before other financing sources(uses) 277,796 277,796 435,543 157,747 OTHER FINANCING SOURCES(USES) Transfer out (1,270,000) (1,270,000) (802,122) 467,878 Change in fund balance (992,204) (992,204) (366,579) 625,625 Fund balance-beginning of the year 1,031,989 1,031,989 1,981,304 949,315 Reserve for expenditures and fundbalance-endoftheyear $ 39,785 $ 39,785 $ 1,614,725 $ 1,574,940 31 TOWN CENTER DEVELOPMENT AGENCY TIGARD TRIANGLE DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL For the year ended June 30,2024 Variance Budgeted Amounts Actual with final Original Final Amounts budget REVENUES Property taxes $ 1,574,893 $ 1,574,893 $ 1,650,015 $ 75,122 Interest and investment earnings 5,317 5,317 132,787 127,470 Total revenues 1,580,210 1,580,210 1,782,802 202,592 EXPENDITURES Debt Service 745,000 745,000 677,686 67,314 Change in fund balance before other financing sources(uses) 835,210 835,210 1,105,116 269,906 OTHER FINANCING SOURCES(USES) Transfer out (630,000) (630,000) - 630,000 Change in fund balance 205,210 205,210 1,105,116 899,906 Fund balance-beginning of the year 388,194 388,194 2,098,423 1,710,229 Reserve for expenditures and fund balance-end of the year $ 593,404 $ 593,404 $ 3,203,539 $ 2,610,135 32 INDEPENDENT AUDITOR'S REPORT REQUIRED BY OREGON STATE REGULATIONS 33 ® 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, 2024, and the related notes to the financial statements, which collectively comprise Agency's basic financial statements, and have issued our report thereon dated December 16, 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. 34 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. Keith Simovic, Partner for Moss Adams LLP Portland, Oregon December 16, 2024 35 SUPPLEMENTAL PACKET FOR ?- (OATE OF MEETING) Communication to Those Charged with Governance City Of Tigard, Oregon June 30,2024 MOSSADAMS ® MOSSADAMS 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, 2024, and have issued our report thereon December 16, 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 engagement letter dated August 19,2024, 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. The supplementary information was subject to certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves. 1 Other Information Included in the Annual Comprehensive Financial Report Management is responsible for the other information included in the annual comprehensive financial report(ACFR). The other information comprises the introductory and statistical sections, but does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon. Our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the audited financial statements. We have read the information, and nothing came to our attention that caused us to believe that such information is materially inconsistent with the financial statements. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you in the engagement letter. 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. No 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, 2021. 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. 2 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. 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 December 16, 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. 3 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. 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. 7q-611/‘"14'5" LIPPortland, Oregon December 16, 2024 4 0 MOSSADAMS AIS-5655 9. Workshop Meeting Meeting Date: 12/17/2024 Length (in minutes): 15 Minutes Agenda Title: TCDA: Consideration of a Development Assistance Agreement Authored By: Sean Farrelly Presented By: Redevelopment Manager Sean Farrelly Item Type: Resolution Town Center Development Agency Public Hearing Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE The Board of the Town Center Development Agency will consider a resolution authorizing the Executive Director of the Town Center Development Agency to sign a Development Assistance agreement with Just Compassion of East Washington County. The agreement will set the terms for up to $200,000 in development assistance for Systems Development Charges related to the new Access Center on SW Hall Blvd, as recommended by the Town Center Advisory Commission. This was originally considered by the TCDA on September 24. ACTION REQUESTED Teammates request the Board consider the resolution for funding. BACKGROUND INFORMATION Previous Council Consideration September 24, 2024: TCDA Consideration of a Development Assistance Agreement. The Board decided to postpone taking action for future consideration of the grant request. Background Just Compassion is a non-profit organization providing services to houseless adults in Washington County. They are constructing a new Access Center on SW Hall Blvd, near Knoll Drive, that consists of an expanded Resource Center at 12280 SW Hall Blvd. in Tigard (South Building) and a new two-story building at 12260 SW Hall Blvd. (North Building). The new center will provide 60 congregate shelter beds with wrap-around services for those experiencing houselessness. The expanded Resource Center will provide counseling and mental health support, medical triage services, hygiene services, employment training and support, a commercial kitchen, overnight shelter, and temporary housing for those working to secure permanent housing. There will be a new security system and additional lighting installed for safety. Services will be provided for adults at these sites, with referrals given to families and youth to access nearby Washington County services. During severe weather events, the buildings can be configured to accommodate 50 additional overnight guests. The expected total project costs are $15.75 million: $12.4 million for the new building and $3.3 million for the expanded Resource Center. The North Building is currently under construction. The primary funding sources for the project are from Washington County ($10.5M) and the state-administered American Rescue Plan Act (ARPA) funds ($4M). Washington County will fund the program's ongoing operating expenses. Redevelopment Assistance Request Just Compassion initially requested $616,782 from the Town Center Development Agency's Redevelopment Assistance Program to meet a shortfall in their project budget. The city's development advisor reviewed the project's financial data and confirmed their project costs are higher than their project funding resources. The project shortfall can be attributed to costs related to required sidewalk and landscaping improvements on Hall Blvd. and Knoll Drive, as well as System Development Charges (SDCs). Unlike projects with agreements to provide affordable housing at 80 percent AMI or below for 20 years, this project is not exempt from Tigard's Parks and Tigard Transportation SDC's. The goal of the Redevelopment Assistance program is to incentivize and support private investment that furthers equity goals and maximizes community benefits. The scoring criteria for Redevelopment Assistance were designed to be guidelines for staff and the Board. The project meets program guidelines to qualify as housing. While congregate shelter beds aren't usually thought of as "residential units", 60 guests will be able to dine, bathe, store personal belongings, and sleep in the building, as well as receive needed services. Teammates recommended awarding Just Compassion $200,000, a reduction from their initial request. This is consistent with the budgeted $200,000 for Development Assistance in the FY24-25 City Center TIF fund. The grant would be used to pay or reimburse the project's SDCs when they are due. Public Involvement Town Center Advisory Commission Recommendation June 12, 2024 A representative from Just Compassion presented their project and grant request to the Town Center Advisory Commission. The TCAC deliberated, and some members requested that Just Compassion spend additional time investigating alternative federal, state, regional, county, and private funding sources to meet their funding gap. The TCAC decided to postpone consideration until August. August 14, 2024 Just Compassion reported that they investigated additional funding as requested but were unable to find available sources. Potential additional funds could be obtained through fundraising over the next few months. The TCAC deliberated and considered recommending a higher funding level, but ultimately concurred with city teammates and recommended $200,000 of assistance. Two recognized opponents of the project spoke against the funding during the public comment portion of the TCAC meeting. The recommended funding supports the TCAC's Affordable Housing and Houselessness area of emphasis in their 2023-2024 Strategic Plan —specifically, the strategy to "Support funding needs and development assistance available for shelter, transitional and affordable housing." TCDA Board At the September 24, 2024 meeting, a TCDA Director expressed concern with safety at the existing and new facilities. Just Compassion,Tigard Police Department, and city teammates have begun meeting regularly to improve coordination between the City and JC to address safety concerns at the shelter location as it expands. At the most recent meeting they discussed: • Improvements to JC's campus safety through new cameras, lighting, and staff perimeter checks on JC and adjacent properties. • Procedures for JC to aid Tigard Police Department (TPD) in active investigations. • How JC and TPD will coordinate when a person exiting the shelter may be a risk to the community. There was also interest in finding the origin city of Just Compassion's clients. Just Compassion gets their client referrals from Community Connect, Washington County's coordinated entry system. This system does not collect information about the city of origin from their clients, so there isn't data available to track the number of clients who previously lived or worked in Tigard. The Board directed staff to gather more information on the operation of the facility related security and return to the Board for future consideration of the grant request. Staff provided additional details on these items to the Board after the September meeting. Impacts (Community, Budget, Policies and Plans/Strategic Connection) City Council Goals 2023-2025 Goal: Reduce Houselessness Tigard Strategic Plan 2020-2025 Strategic Priority 3: Ensure development and growth supports the vision. Objective 3.3: Understand the effects of development on vulnerable Tigard residents and mitigate these impacts within projects and over time. Tigard Comprehensive Plan Housing Goal 10.1 Provide opportunities for a variety of housing types at a range of price levels to meet the diverse housing needs of current and future City residents. Town Center Advisory Commission 2023-2024 Strategic Plan Area of Emphasis: Affordable Housing and Houselessness Strategy: Support for physical facilities and additional shelter space and services for persons experiencing houselessness. Development of additional shelter space and affordable housing through a consciously-integrated programmatic response that includes the city, public and private entities, and local housing nonprofits working effectively in Tigard to address that deficiency. ALTERNATIVES & RECOMMENDATION Alternatives: The Board could direct teammates to renegotiate provisions in the agreement. Recommendation: Agency teammates request the Board approve the resolution for the TCAC-recommended development assistance. ADDITIONAL RESOURCES Fiscal Impact Cost: $200,000 Budgeted (yes or no): Yes Where Budgeted (department/program):TCDA/City Center Additional Fiscal Notes: There is $200,000 for Development Assistance budgeted in FY25 City Center TIF fund. Attachments Presentation TCDA Resolution Exhibit A CITY OF TIGARD, OREGON TOWN CENTER DEVELOPMENT AGENCY RESOLUTION NO. 24- A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR OF THE TOWN CENTER DEVELOPMENT AGENCY TO SIGN A DEVELOPMENT ASSISTANCE AGREEMENT WITH JUST COMPASSION FOR THE HALL BOULEVARD ACCESS CENTER WHEREAS, the City Council 2023-2025 Goals includes a goal to "Reduce Houselessness," and WHEREAS, the City of Tigard Strategic Plan 2020-2025 includes Objective 3.3 "Understand the effects of development on vulnerable Tigard residents and mitigate these impacts within projects and over time;" and WHEREAS, the Town Center Development Agency budget for FY 2024-25 includes funding for Redevelopment Assistance to make grants to incentivize and support private investment that furthers equity goals and maximizes community benefits; and WHEREAS, Just Compassion submitted an application for Redevelopment Assistance to construct a shelter in the City Center TIF District to serve people experiencing homelessness; and WHEREAS, the application meets the criteria for Development Assistance funding; and WHEREAS, the Town Center Advisory Commission has recommended approval of the assistance to the Board of the Town Center Development Agency; and WHEREAS, the Development Assistance Agreement sets out the terms and conditions for the Agency to make a grant of up to $200,000 to pay for certain System Development Chagres the project will incur. NOW,THEREFORE, BE IT RESOLVED, by the Tigard Town Center Development Agency that: SECTION 1: The Executive Director is authorized to execute the Agreement,in substantially the form attached as Exhibit A, subject to final legal review. SECTION 2: The Executive Director may approve editing or similar changes to Exhibit A that do not materially alter the rights or responsibilities of the parties. SECTION 3: This resolution is effective immediately upon passage. PASSED: This day of , 2024. TCDA Resolution No. 24- Page 1 Chair—City of Tigard Town Center Development Agency ATTEST: Recorder—City of Tigard Town Center Development Agency TCDA Resolution No. 24- Page 2 EXHIBIT A DEVELOPMENT ASSISTANCE AGREEMENT THIS DEVELOPMENT ASSISTANCE AGREEMENT ("Agreement") is made this day of 2024 by and between the Town Center Development Agency, an ORS Chapter 457 urban renewal agency ("TCDA") and Just Compassion of East Washington County, an Oregon nonprofit public benefit corporation ("Just Compassion"). TCDA and Just Compassion may be referred to in this Agreement jointly as the "Parties" and individually as a "Party." RECITALS A. Just Compassion intends to develop property located at the intersection of SW Hall Boulevard and SW Knoll Drive in the City Center area ("Property") with an Access Center serving houseless individuals. B. TCDA has determined that the Project furthers many of its goals for the City Center area because it provides shelter for houseless individuals and provides equitable economic opportunities. C. TCDA has identified funds it will make available to developments like the Project and Just Compassion qualifies for the receipt of such funds. D. The Parties desire to enter into the Agreement for TCDA to provide development assistance to Just Compassion for the development of the Project and, specifically, to assist Just Compassion with the payment of the City of Tigard's system development charges applicable to the Project. E. The completion of the Project according to the terms of this Agreement is a material inducement to TCDA to enter into this Agreement. NOW, THEREFORE, in consideration of the public benefits to be created by the development of the Project and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: AGREEMENT 1. DEFINITIONS Certificate of Occupancy means the Certificate of Occupancy issued for the Project by the City of Tigard Community Development Department. City means the City of Tigard, a municipal corporation of the State of Oregon. OHCS means the State of Oregon acting by and through its Housing and Community Services Department. URA means the City Center Urban Renewal Area. 2. JUST COMPASSION PROJECT DEVELOPMENT 2.1 Subject to events and circumstances outside of Just Compassion's reasonable control,Just Compassion will use commercially reasonable efforts to begin and to complete development of the no later than December 31, 2025. IPage 1 Development Assitance Agreement EXHIBIT A 2.2 This Agreement is not intended to be a contract providing for construction of the Project by TCDA either directly or through a contractor and Just Compassion is not developing the Project for or on behalf of TCDA or the City.Just Compassion is solely responsible for selecting a construction contractor for the Project. The rights and responsibilities of Just Compassion, the general construction contractor and any subcontractors,will be provided for in separate contracts to which TCDA is not a party. 3. TCDA FINANCIAL ASSISTANCE 3.1 TCDA will pay to Just Compassion up to $200,000.00, to cover the actual cost of the City of Tigard system development charges ("SDCs") applicable to the Project. For administrative convenience,TCDA shall make the payments for the Transportation Development Tax (TDT) and Tigard Transportation SDC (TSDC) directly to the City. Payment will be made when the SDCs are due and payable, as provided in Tigard Municipal Code 3.24. If Just Compassion pays the Water SDC prior to the execution of the Agreement,the TCDA shall issue payment to Just Compassion for an equivalent amount. Notwithstanding the foregoing, the payment made to the City will be considered financial assistance to Just Compassion for the benefit of the Project.Just Compassion will use such financial assistance for the payment of the SDC fees. 3.2 In the event the City's SDCs applicable to the Project are less than $200,000,TCDA will pay to the City only the amount of the SDCs applicable to the Project and TCDA will have no further financial obligations under this Agreement. 3.3 As a condition to payment,Just Compassion will provide TCDA with evidence that the project has obtained a certificate of occupancy. 3.4 Subject to Section 2.1 above, this Agreement expires on December 31, 2025, after which time TCDA has no financial obligation to Just Compassion unless the Parties extend the term of this Agreement in writing. 4. REPRESENTATIONS,WARRANTIES,AND COVENANTS OF REACH To induce TCDA to enter into this Agreement,Just Compassion represents,warrants, and covenants as follows: 4.1 Existence. Just Compassion is a nonprofit public benefit corporation, duly organized and validly existing under the laws of the State of Oregon.Just Compassion will keep in force all licenses and permits necessary to the proper conduct of its ownership and operation of the Project. 4.2 Compliance with Laws. Just Compassion will comply with, or cause the Project to comply with, all laws, ordinances, statutes, rules, regulations, orders, injunctions, or decrees of any government agency or instrumentality applicable to Just Compassion, the Project, or the Page 2 Development Assitance Agreement EXHIBIT A operation thereof,including (a) all applicable health and safety, environmental, and zoning laws, (b) all federal and state tax laws, and (c) all restrictions on the use, occupancy or operation of the Project. 4.3 Authority.Just Compassion has full power and authority to conduct all of the activities that are now conducted by it or proposed to be conducted by it in connection with the Project and as contemplated by this Agreement, and to execute, deliver, and perform all obligations under this Agreement; and the person executing this Agreement on behalf of Just Compassion has the legal power, right and actual authority to bind Just Compassion to the terms and conditions of this Agreement. 4.4 Title. Just Compassion owns and holds (or will own and hold) good and marketable fee simple title to the Property. 4.5 Development Issues.Just Compassion is aware of no identifiable issue(s) that would preclude development of the Project or Just Compassion's ability to obtain sufficient financing for the construction or permanent ownership of the Project. 4.6 Binding Agreement. This Agreement and all documents required to be executed by Just Compassion are and will be valid, legally binding obligations of and enforceable against Just Compassion in accordance with their terms. 4.7 No Conflict with Other Agreements. Neither the execution and delivery of this Agreement and documents referred to herein, nor the incurring of the obligations set forth herein, nor the consummation of the transactions herein contemplated,nor compliance with the terms of this Agreement and the documents referred to herein conflict with or result in the material breach of any terms, conditions,or provisions of, or constitute a default under any bond, note or other evidence of indebtedness,or any contract,indenture, mortgage, deed of trust, loan, partnership agreement, lease, or other agreements or instruments to which Just Compassion is a party. 4.8 Indemnity.Just Compassion will indemnify and hold TCDA, its directors, officers, employees and agents harmless from and against any and all liabilities, claims, losses, damages, or expenses (including attorney fees and title costs and expenses) which any of them may suffer or incur in connection with (a) the inaccuracy of any of the representations and warranties made herein, (b) any transaction contemplated by this, and (c) the construction or operation of the Project, except to the extent such liabilities, claims, losses, damages, or expenses arise solely from the gross negligence or willful misconduct of TCDA. 4.9 Additional Acts. From time to time,Just Compassion will execute and deliver all such instruments, provide such additional information, and perform all such other acts as TCDA may reasonably request to carry out the transactions contemplated by this Agreement. 4.10 Environmental Indemnity.Just Compassion will hold TCDA and its directors, officers, employees, agents, successors, and assigns harmless from,will indemnify them for, and will Page 3 Development Assitance Agreement EXHIBIT A defend them against any and all losses, damages,liens, costs, expenses, and liabilities directly or indirectly arising out of or attributable to any violation of any Environmental Law or the use, generation, manufacture,production, storage, release, threatened release, discharge, disposal, or presence of a Hazardous Substance on, under, or about the land,including without limitation the costs of any required repair, cleanup, containment, or detoxification of the land, the preparation and implementation of any closure, remedial, or other required plans, attorney fees and costs (including but not limited to those incurred in any proceeding and in any review or appeal), fees,penalties, and fines. 4.10.1 For purposes of this section, "Environmental Law" means any federal, state, or local law, statute, ordinance, or regulation pertaining to Hazardous Substances (as defined below), health, industrial hygiene, or environmental conditions,including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), as amended (42 USC §§ 9601-9675), and the Resource Conservation and Recovery Act of 1976 (RCRA), as amended (42 USC §§ 6901-6992k). 4.10.2 For purposes of this section, "Hazardous Substance" includes without limitation any material, substance, or waste that is or becomes regulated or that is or becomes classified as hazardous, dangerous, or toxic under any federal, state, or local statute, ordinance, rule, regulation, or law. 5. EVENTS OF DEFAULT The occurrence of any one or more of the following will be an event of default ("Event of Default") under this Agreement: 5.1 Failure to Disclose Material Facts.Just Compassion deliberately fails to disclose any fact material to TCDA's provision of financial assistance, or upon discovery by TCDA of any misrepresentation by, or on behalf of, or for the benefit Just Compassion. 5.2 Non-Compliance with Governmental Regulations.Just Compassion fails to show evidence of full or substantial compliance with any lawful, material requirement of any governmental authority having jurisdiction over the Project or the Property within thirty days after notice in writing of such requirement is given to Just Compassion by TCDA or,if such compliance cannot be completed within such thirty (30)-day period through the exercise of reasonable diligence, the failure by Just Compassion to commence the required compliance within such thirty (30)-day period and thereafter to continue such compliance with diligence to completion. 5.3 Other Material Breach.Just Compassion otherwise materially breaches any term, covenant, condition,provision, representation, or warranty of under this Agreement and fails to cure such breach within thirty (30) days after notice in writing of such breach is given to Just Compassion by TCDA or,if such breach cannot be cured within such thirty (30)-day period through the exercise of reasonable diligence, the failure by Just Compassion to commence the required cure within such thirty (30)-day period and thereafter to continue such cure with diligence to completion. IPage 4 Development Assitance Agreement EXHIBIT A 6. DISPUTE RESOLUTION AND REMEDIES If a dispute arises under this Agreement, including an Event of Default, the Party claiming the existence of a dispute or Event of Default will provide written notification of the dispute or Event of Default to the other Party. A meeting will be held promptly between the Parties, attended by representatives of the Parties with decision making authority regarding the dispute or Event of Default to attempt in good faith to negotiate a resolution of the dispute or Event of Default. If the Parties are not successful in resolving a dispute or Event of Default within twenty-one (21) days, the Parties may pursue relief in a court of competent jurisdiction. Venue will be in the Washington County Circuit Court. 7. ASSIGNMENT AND TRANSFER PROVISIONS 7.1 Restrictions on Assignments. Except as provided in this Section 7,Just Compassion may not partially or wholly transfer Just Compassion's interest in this Agreement without the prior written approval of the TCDA,which may be withheld in TCDA's reasonable discretion. 7.2 Approved Transfers. Notwithstanding Section 7.1 above, and provided that Just Compassion provides TCDA with copies of all agreements related to the transfer,TCDA hereby consents to: 7.2.1 An assignment of Just Compassion's rights under this Agreement to any entity in which Just Compassion or an affiliate thereof owns a direct or indirect interest. 7.2.2 The collateral assignment of rights under this Agreement to any mortgagee. For purposes of this Section 7.2.2, "Mortgagee" means the holder of any mortgage, deed of trust, or instrument securing debt or equity obtained to finance the construction of the Project, together with any successor or assignee of such holder. TCDA will cooperate with Just Compassion and enter into commercially reasonable amendments to this Agreement if and as required by any lender, equity provider or financier providing equity or debt to the Project. 8. MISCELLANEOUS 8.1 Counterparts. This Agreement may be executed in any number of counterparts, and any single counterpart or set of counterparts signed, in either case,by all the parties hereto constitutes a full and original instrument, but all of which together constitutes one and the same instrument. 8.2 Notice. Any notice required or permitted under this Agreement will be in writing and deemed effective; (1) when actually delivered in person, (2) one business day after deposit with a commercial courier service for "next day" delivery, (3) two business days after having been deposited in the United States mail as certified or registered mail, or (4) when transmitted by facsimile answer back or receipt confirmed), addressed to the parties as follows: IPage 5 Development Assitance Agreement EXHIBIT A If to Just Compassion: Just Compassion of East Washington County 12280 SW Hall Blvd. Tigard, OR 97223 If to TCDA: Town Center Development Agency of the City of Tigard 13125 SW Hall Blvd Tigard, Oregon 97223 with a copy to: City Attorney City of Tigard 13125 SW Hall Blvd Tigard, Oregon 97223 8.3 Successors and Assigns. This Agreement is binding upon and will inure to the benefit of the Parties and their respective permitted successors and assigns. 8.4 Governing Law. This Agreement is governed by and construed under Oregon law. 8.5 Modification; Prior Agreements; Headings. This Agreement may not be modified or amended except by an instrument in writing signed by the Parties. This Agreement reflects and sets forth the entire agreement and understanding of the Parties with respect to the subject matter hereof, and supersedes all prior agreements and understandings relating to such subject matter. The headings in this Agreement are for the purpose of reference only and will not limit or otherwise affect any of the terms hereof. 8.6 Validity; Severability. If any provision of this Agreement is held to be invalid, such event will not affect,in any respect whatsoever, the validity of the remainder of this Agreement, and the remainder will be construed without the invalid provision so as to carry out the intent of the parties to the extent possible without the invalid provision. 8.7 Time of Essence. Time is of the essence of this Agreement. 8.8 Waivers. No waiver made by either Party with respect to the performance,or manner or time thereof, of any obligation of the other Party or any condition inuring to its benefit under this Page 6 Development Assitance Agreement EXHIBIT A Agreement will be of any force or effect unless in writing, be construed to be a continuing waiver, and be considered a waiver of any other rights of the Party making the waiver 8.9 No Partnership. Nothing contained in this Agreement or any acts of the Parties hereby will be deemed or construed by the Parties, or by any third person, to create the relationship of principal and agent, or of partnership, or of joint venture, or any association between any of the Parties other than that of independent contracting parties. 8.10 Non-Waiver of Government Rights. Subject to the terms and conditions of this Agreement, by making this Agreement,TCDA is specifically not obligating itself, the City, or any other agency with respect to any discretionary action relating to development or construction of the Project, including, but not limited to, permits or any other governmental approvals which are or may be required, except as expressly set forth herein 8.11 No Third-Party Beneficiary Rights. No person other than a Party is an intended beneficiary of this Agreement, and no person other than a Party has any right to enforce any term of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date first above written. Executed in multiple counterparts as of the day and year above written. TOWN CENTER DEVELOPMENT AGENCY, an ORS 457 Urban Renewal Agency, By: Steve Rymer, Executive Director of the Town Center Development Agency of the City of Tigard Signed: APPROVED AS TO FORM: By: Shelby Rihala, City Attorney Just Compassion of East Washington County By: Signed: Page 7 Development Assitance Agreement 4 3 Ca C m• m g 1 4=0 =m Z CO M CA MIIII m MIPD 3:11 P CA co m an PC Z O 41= /E-5 wal 1 r7i,_ tt e.,, 1 ,i,-, ki rrii,,;) -1 tn >tii0 z � � - - 1 2211 CA C. IV CD CD ' al _ co = = o ' aIli = o � � v CA _ -, o + 111114 o ac,, -. o = a. `c a CD + "o a y � UMmot ' o CD a a = 0 o' Ma C, tD ais y as = O = CD CO .0 LD a Q .- - mit CD O CD y CD y .. _. 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Workshop Meeting Meeting Date: 12/17/2024 Length (in minutes): 0 Minutes Agenda Title: Supplemental Questions and Answers Authored By: Carol Krager Presented By: Item Type: Receive and File Public Hearing No Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE The City Council may have questions for staff after the council meeting packet is published. For public transparency, these questions and answers provided by staff are due the afternoon of the meeting and will be attached at the end of the meeting packet. ACTION REQUESTED None BACKGROUND INFORMATION Council may have questions for staff regarding agenda items. These questions can be asked during the meeting or through an email to the city manager and other staff prior to the meeting. In the interest of public transparency, any questions and staff answers are listed on the Supplemental Questions and Answers list. This will be attached to the meeting packet, which is available online. There may be no questions and in that case, this Agenda Item Summary will have no attachments. ALTERNATIVES & RECOMMENDATION N/A ADDITIONAL RESOURCES N/A Attachments Council Questions and Answers 241217 Supplemental Questions and Answers December 17, 2024—City Council Meeting Agenda Item No. 5 — PRESENTATION ON HOMELESSNESS FUNDING Q (Councilor Wolf): Based on the Potential Policy Options presented, I have the following questions: 1. Revenue: a. Proposed action states to expand SHS investments to include affordable housing.Assuming this takes effect now and not in the proposed 2031 renewal,what will be reduced to substantially impact the funding for housing?I don't see how resources will expand. 2.Tax Policy: a.What would a city program look like and how will cities who are hosting services within a region be compensated at a greater level? b. Has polling been completed on the tax revenue alternatives?Doesn't solve the issues for short- term of next five years before SHS is renewed. 3.Equity/Accountability a.Look forward to the conversation that shares examples of how community members will be given great opportunity to engage and how that will impact decisions. b.Given the three county participation,are there specific successes/failures that will serve as models going forward? A: Metro revised their slide deck to help address these questions, specifically slides 10 and 15, which are attached. They incorporated some into their talking points and invite any additional questions to their team tonight. Agenda Item No. 8 — PRESENTATION OF EXTERNAL FINANCIAL AUDIT BY MOSS ADAMS Q(Councilor Wolf): I look forward to hearing a little more about these recommendations. 1. Recommendations&Best Practices A. Accounts Receivable—UB Allowance • Consider evaluating and setting an allowance for doubtful accounts for utility billing receivables. A:This Moss Adams recommendation refers to the practice of recognizing that a portion of the City's utility sales are likely to be uncollectible and require an allowance at a certain point. This allowance results in a bad debt expense each year to the city that will fluctuate based on outside collection efforts by a professional credit collection agency. The City currently maintains an uncollectible allowance for the Court receivables based on 25%of all citations issued.A similar process will soon be underway to determine what the allowance should be for utility billing.This allowance will be tracked and disclosed in the notes to the City's Annual Comprehensive Financial Report for FY 25. B. Change Management Policy • Recommend management to adopt a formal change management policy to guide future system changes A:The IT Team agrees with the recommendation and will implement an IT Change Management Policy by 6/30/2025. The City has prioritized change management throughout the Tyler module implementation, including hiring a change management consultant to support the development of change management manual. C. User Access Review • Recommend management perform and document a period review of user access to ensure access is appropriate and aligns with job descriptions. A:The IT Team agrees with the recommendations and will implement steps to review user access for Tyler and Microsoft Suite by 6/30/2025. 2. Compensated Absences—I know we discussed this item at our last audit meeting and believe this covers absences in the normal order of business (versus paid administrative leaves).Just want to confirm. A: Correct, currently compensated absences only cover an employee's vacation PTO, or the amount the city would be legally required to pay should the employment terminate. GASB 101 will require organizations to also estimate how much time will be paid out for sick or other forms of PTO. The estimate will need to be determined by Management to capture what the city is likely to pay related to all compensated absences. Agenda Item No. 9 —JUST COMPASSION FUNDING REQUEST Q(Council President Hu): Could you please provide a breakdown of the costs for the required sidewalk and landscaping improvements on Hall Blvd. and Knoll Drive, as well as the System Development Charges,that contributed to the project budget shortfall? A:Just Compassion's transportation SDC's (which are deferrable until occupancy) are currently estimated at: Tigard TSDC:$56,884.98 TDT: $71,242 Total Transportation SDC's:$128,126.98 Water SDC,which will be paid this week:$81,230 Total SDC's=$209,356 Just Compassion has estimated that their required street frontage improvements along Hall Blvd and Knoll Drive (roadway, sidewalk and landscaping) will cost$600,000 to construct. crj CD .52 la > L p N a) � (/) 4/3 � I 1 Co r•i 1 Lb m I MCo N I U, C I co I Ci usCU 1 c L I co = CL 1 c6 LL XI 1 RI I CC it a•+ I co VS I C CA C i co O 1 m IN M CC I a II hp a a 6' W C I N swim I I N NC I N � OD 4.-i co . o c 0 c I - . 1 N U CO CU 1 _ N O 0 m� I co X N N i/ I < N Q R I N Ch ��_ I IIIIIMIN O O O O O O O O O O O O� C' Et M COCCVV N LO O Efl EA 69 fA 69 EA 69- EA EA 69 suopoiloO anuanaa SHS oidw x� li c a, •O 'N 0 - 4a ila ,.., CO L U •.£ • U O u � O Qco . L 1 • � .� M •_ - .. \n . . > 73 'IC L 0 alm m sei . . ... 0. .. 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