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CAFR Report - 1999-2000 1 I I , 1 Lrrr , City of Tigard Oregon I 1 1 C omprehensive Annual 1 Report I ■ e, '� _ , / � -_.- _` - ^:w V US�, r ^- —1.,'!,..9..;.--, !� 11 I: ✓/ e' %! ms's 7'Ol ovirp, 2. i / _ L_ ri _ ,a ► 411 t ,0 � � / , • l'••••••• _ 1 ,P� 11,1,7 ., . • ...- if .0::, ,4 � _ — rr .. -.' t �,'a . 111 .:. j ' � 1! i - -- i r/ • • r '. A ir • ij . i''' �I' ` 1y.) �� - I ,� , , _ �1 I ' 1d1;F irk. � i� 1,.� �0.• ,• , y `i 1 v 1 For the Fiscal Year ended I June 30, 2000 1 1 A Short History of Tigard ' It is hard to imagine that Tigard was once a rural farming area. This community was founded by several families whose names are well recognized in Tigard today. These family names can be found scattered throughout the City on streets such as Sattler Road and Scheckla Drive. However, no family is as well known as the City's namesake — the Tigard Family. In 1852, Wilson M. Tigard arrived in the area known as East Butte. It was here that Mr. Tigard settled with his family and started the Tigard family's involvement in the community by assisting in the organization of the East Butte School. Mr. Tigard's son, Charles F. Tigard, continued in his father's civic footsteps by building a general store, a meeting hall and serving in the Oregon Legislature. The general store became the home for the area's post office, which prompted the renaming of East Butte to Tigardville by Charles F. Tigard in honor of his father. Tigardville remained a small farming community until the arrival of the Oregon Electric Railroad (OERR) in 1910. The OERR not only triggered the development of Main Street, but also shortened Tigardville to Tigard to distinguish it from Wilsonville. Tigard continued to grow and prosper and ' officially became a city in 1961. Although the farms that once covered Tigard are now distant memories, part of ' the past still remains. The John Tigard House has been preserved for all to enjoy. John Tigard, son of Wilson M. Tigard, constructed the house in 1880 at the corner of what is now Pacific Highway and Gaarde Street. The house was threatened with demolition in the late 1970's, but due to the efforts of the Tigard Area Historical and Preservation Association, the house was restored. In 1979, the house was entered in the National Register of Historic Places. The house now resides at the corner of SW Canterbury Lane and SW 103 in Tigard. — by Kevin Sweet, Tigard Front Cover: The John Tigard House original art y and g High School Student, and cover design by Nancy Lof, City of Tigard Staff. 1 1 1 sa. 1 CITY OF TIGARD, OREGON 1 i COMPREHENSIVE ANNUAL FINANCIAL REPORT 1 for the fiscal year ended June 30, 2000 ' Prepared by: City of Tigard — Finance Department i I City of Tigard, Oregon Table of Contents Page , INTRODUCTORY SECTION: Letter of Transmittal I , Mayor and City Council Members XI Organization Chart XII Certificate of Achievement for Excellence in Financial Reporting XIII FINANCIAL SECTION: Report of Independent Accountants 1 GENERAL PURPOSE FINANCIAL STATEMENTS ( "Liftable" Financial Statements): Combined Balance Sheet - All Fund Types and Account Groups 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types 4 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Enterprise Fund Types 5 Combined Statement of Cash Flows - All Enterprise Funds 6 Statement of Plan Net Assets - Pension Trust Fund 7 Statement of Changes in Plan Net Assets - Pension Trust Fund 7 Notes to General Purpose Financial Statements 8 SUPPLEMENTARY DATA (Combining and Individual Fund and Account Group Statements and Other Financial Schedules): General Fund: Schedule of Revenues and Expenditures - Budget and Actual 24 Special Revenue Funds: Combining Balance Sheet 25 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 26 Schedules of Revenues and Expenditures - Budget and Actual: Forfeitures From Criminal Activity Fund 27 State Tax Street Fund 28 Parks SDC Fund 29 County Gas Tax Fund 30 Traffic Impact Fund 31 Electrical Inspection Fund 32 Underground Utility Fund 33 Workers' Compensation Fund 34 Building Fund 35 1 i I City of Tigard, Oregon Table of Contents Page FINANCIAL SECTION, Continued: SUPPLEMENTARY DATA (Combining and Individual Fund and Account I Group Statements and Other Financial Schedules), Continued: Special Revenue Funds, Continued: I Schedules of Revenues and Expenditures - Budget and Actual: Continued: Urban Services Fund - TIF Fund 36 I Urban Services 37 Tree Replacement Fund 38 I Debt Service Funds: Combining Balance Sheet 39 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 40 I Schedules of Revenues and Expenditures - Budget and Actual: General Obligation Bond Debt Service Fund 41 Bancroft Bond Debt Service Fund 42 I Capital Projects Funds: Combining Balance Sheet 43 Combining Statement of Revenues, Expenditures and I Changes in Fund Balances 44 Schedules of Revenues and Expenditures - Budget and Actual: Local Improvement Capital Projects Fund - SW 69th Avenue 45 I Local Improvement Capital Projects Fund - Dartmouth Metro Greenspaces Fund 46 4 Park Levy Capital Improvement Fund 48 Facility Fund 49 I Enterprise Funds: Combining Balance Sheet 50 I Combining Statement of Revenues, Expenses and Changes in Retained Earnings 51 Combining Statement of Cash Flows 52 I Schedules of Revenues and Expenditures - Budget and Actual: Sewer Fund 53 Storm Drainage Fund 54 Water Quality & Quantity Fund 55 I Water General Fund 56 Water Systems Development Fund 57 Water Capital Projects Fund 58 I I I t City of Tigard, Oregon Table of Contents Page 1 FINANCIAL SECTION, Continued: SUPPLEMENTARY DATA (Combining and Individual Fund and Account Group Statements and Other Financial Schedules), Continued: General Fixed Assets Account Group: Schedule of General Fixed Assets - By Sources 59 Schedule of General Fixed Assets - By Function and Activity 60 Schedule of Changes in General Fixed Assets - By Function and Activity 61 Other Schedules: Schedule of Property Tax Transactions and Outstanding Balances 62 Schedule of Bond and Bond Interest Transactions 63 Schedule of Future Debt Service Requirements of Bancroft Improvement Bonds 64 Schedule of Future Debt Service Requirements of General Obligation Bonds 65 STATISTICAL SECTION: General Governmental Expenditures By Function - Budgetary Basis - for the last ten fiscal years 66 General Governmental Revenues By Sources - Budgetary Basis - for the last ten fiscal years 67 Property Tax Levies and Collections - for the last ten fiscal years 68 Market Value and Assessed Value of Taxable Property - for the last ten years 69 Special Assessment Collections - for the last ten fiscal years 70 Property Tax Rates - Direct and Overlapping Governments - for the last ten fiscal years 71 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita - for the last ten fiscal years 72 Computation of Legal Debt Margin - June 30, 2000 73 Computation of Overlapping General Obligation Debt - June 30, 2000 74 Ratio of Annual Debt Service Expenditures for Long -Term Debt to Total General Governmental Expenditures for the last ten years 75 Property Value, Construction - for the last ten fiscal years 76 Principal Taxpayers - June 30, 2000 77 Demographic Statistics - for the last ten fiscal years 78 Miscellaneous Statistical Data - June 30, 2000 79 1 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS: 80 Auditors' Comments and Disclosures I Z O 1 O u 1 1rT,y m., -- V 1 A O g E. ,____ _,_.......1 e l el UN N r EN ON r NO r NI N NO MI MN NM ON r r EN NW 1 December 12, 2000 (_.#101.101'11 4s C OF Citizens of Tigard a Honorable Mayor± Members of the City Council EGON r It is our pleasure to submit to you the Comprehensive Annual Financial Report of the City of Tigard, Oregon, for the fiscal year ended June 30, 2000. ' This report was prepared by the City's Finance Department. Responsibility for both the accuracy of presented data and the completeness and fairness of presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is presented accurately in all material respects, along with disclosures necessary to ensure that the reader may gain maximum understanding of the City's financial position ' and results of operations of the various funds and account groups of the City. The Comprehensive Annual Financial Report is presented in four sections: 1. Introductory — Includes the table of contents, a list of the City's principal officials, the City organization chart, and this transmittal letter. ' 2. Financial — Includes the report of independent accountants, general purpose financial statements, including notes to the financial statements, detailed combining and individual fund and account group financial statements and schedules, and any required supplementary schedules. 3. Statistical Tables — Includes selected general and financial information presented on a multi -year, comparative basis. 4. Audit Comments and Disclosures Section — Includes the independent accountants' comments and disclosure, as required by State regulations. The report includes all funds and account groups of the City under the direction of the City Council. Tigard/Tualatin School District, Tualatin Valley Water District, and ' Tualatin Valley Fire and Rescue District operate within the City limits but do not meet the established criteria for inclusion in this reporting entity and, accordingly, are excluded from this report. Organization Overview The City of Tigard is located in eastern Washington County just 12 miles southwest of downtown Portland, Oregon. Tigard has continued to be one of the fastest growing cities in Washington County and, with a population of approximately 39,672, is the eleventh largest city in the State. 13125 SW Hall Blvd., Tigard, OR 97223 (503) 639 -4171 TDD (503) 684 -2772 I Incorporated in 1961, the City of Tigard is governed by an elected Mayor and four , council members who comprise the City Council. The City's Charter established the Council /Manager form of government. Each member of the City Council is elected at -large to serve a four -year term. The Mayor presides at Council meetings and is elected at -large for a four -year term. The Mayor and Council provide community leadership, develop policies to guide the City in delivering services and achieving community goals, and encourage citizen awareness and involvement. The City Council appoints the City Manager, administrative head of the City government. 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 the following direct services: ! • Police • Library • Road and street maintenance and construction • Park facilities and maintenance • Community development activities, including the following: ♦ Planning I ♦ Building Inspection ♦ Engineering • Street Lights • Water • Municipal Court The City also maintains the wastewater and stoiin drainage system within the City limits under an agreement with the Unified Sewerage Agency. Economic Outlook Tigard's location in the Portland metropolitan area provides its citizens with many diverse employment opportunities. Over 54,000 jobs are located within a five - minute drive from Tigard. The unemployment rate in the Portland metropolitan area averaged just less than 4.10% during the year, representing a decline of .40% from the previous year. , Tigard's assessed value for 1999/00 was $3,033,029,082. Up until June 30, 1997, assessed value was required to be market value. A property tax limitation known as Measure 50, which disconnected assessed value from market value for purposes of distributing property tax levies, was passed by the voters state -wide in May 1997. Measure 50 reduced assessed value for 1997/98 to the 1995/96 market value, less 10 %, II I plus the value of new construction. Assessed value grows each year by the rate of increase in real market value or 3 %, whichever is less, plus a pro -rata share of new construction and annexations. Tigard's real property market value for 1999/00 was $3,938,205,819, which represents a 9.4% increase over the previous year. With the implementation of Measure 50 future growth in assessed value, however, is limited to 3% per year plus new construction. In 1999/00, however, new construction was valued at $92,446,907 which gave the City the third year in a row where new construction produced additional property tax dollars. With Measure 50, however, Tigard's taxing authority is limited to its permanent rate of $2.51 per thousand dollars of assessed value. The results of the first quarter for Fiscal Year 2001 are showing building activity increasing dramatically over 1999. Residential permits alone increased from 26 to 102 with commercial activity showing a slight decrease from 14 to 10 permits issued. Financial Plan The City has operated since 1980 using a five -year financial plan. Each plan sets forth ' the activities and services that will be provided to citizens over the coming five -year period. Along with the services to be provided, the plan calls for a certain level of property taxation to support those services. City management and elected officials use the five -year plan to evaluate annual financial decisions and their future impacts. Each budget presented to the Budget Committee ' includes a comparison to the plan to ensure that the intent of the plan is continued from year to year. The financial plan as adjusted at this time provides funding for City operations through the year 2005. The City's five -year financial plan shows that, overall, the City's financial condition is good. The Plan does identify two problem areas that require immediate attention: the Development Funds (Building and Electrical Inspection Funds) and the Road Funds (State Gas Tax, County Gas Tax, Traffic Impact Fee Funds). The City has already begun corrective measures in the Development Funds. The condition of the Road Funds in general, and the State Gas Tax Fund in particular, are largely dependent upon State or ' County actions. The City continues to work with those entities to address these issues. The financial plan projects declining balances in the General Fund and Water Funds L (Water, SDC and Water CIP Funds) fund balances. However, these funds currently contain strong fund balances. The financial plan suggests continued diligence in controlling expenditures, combined with efforts to address revenue needs. III i I Major Initiatives On May 17, 2000, almost 1,100 new residents were added to Tigard's population resulting from the City Council's February 2000 action to approve 16 separate annexations of unincorporated islands in the Walnut Avenue area. This major step to create more uniform City boundaries will provide the City with an opportunity to work cooperatively with the new residents to address the problem of failing septic systems that has adversely affected individuals within the area. Through the use of the City's successful neighborhood sewer reimbursement program, the City hopes to systematically extend service into the area. At the same time, City police service will be provided to the area, as well as other City services. 1 An issue that the City still faces, and continues to aggressively work on, is obtaining a long -term source of drinking water for City residents. The City currently purchases the , majority of its water supply from the City of Portland through a contract that extends through 2007. The City is currently reviewing the options that are available to meet the future needs of this area. Generous bequests to the City library totaling in excess of $850,000 in 1999 has provided the opportunity to establish a construction reserve to expand or replace the existing library. Presently, a committee comprised of citizens, staff, and Council is evaluating options and likely will be presenting a recommendation during this next budget year. The City will continue to support development of the Washington Square Regional Center Plan. Further work on the need to coordinate the improvement of infrastructure at the time of development will be completed during this next year. The Washington Square area is one of three regional centers in Washington County and one of eight in the metropolitan region. Estimates from a recently completed study show that this regional center can accommodate 10,100 new jobs and 2,067 new housing units. Financial Information /Condition Management of the City is responsible for establishing and maintaining an internal control system designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control system is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. The City of Tigard finished 1999/00 in a strong financial position. Tigard faired better than most communities with the implementation of Measure 50 because voters had passed an increased tax base in 1994 that was not levied until 1996/97. Because of the 1 IV I timing of the levy, it was recognized by Measure 50 and included in the permanent rate calculation. Ending fund balances for most funds remain strong. All of these things taken together make Tigard one of the most financially stable communities in the State and more able to deal with growth and limitations on funding sources. Fiscal Policies The City of Tigard has an important responsibility to its citizens to carefully account for public funds, manage municipal finances wisely, and plan adequate funding of services and facilities desired and needed by the public. In support of this effort, the City has established a set of fiscal policies to ensure that the public's trust is upheld. With such fiscal policies, the City has established the framework under which it will conduct its fiscal affairs, ensuring that it is and will continue to be capable of funding and providing outstanding local government services. The goals of Tigard's fiscal policies are: • To enhance the City Council's policy- making ability by providing accurate information on program and operating costs. • To assist sound management of the city government by providing accurate and timely information on current and anticipated financial conditions. • To provide sound principles to guide important decisions of the Council and management which have significant fiscal impact. • To set forth operational principles, which minimize the cost and financial risk of local government consistent with services, desired by the public. • To 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. • To provide and maintain essential public facilities, utilities, infrastructure, and capital equipment. • To protect and enhance the City's credit rating. • To insure 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. Budgeting Controls In addition, the City maintains budgetary controls, the objective of which is to ensure compliance with legal provision in the annual appropriated budget adopted by the Tigard ' 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. As demonstrated by the statements and schedules included in the financial section of this report, the city continues to meet its responsibility for sound financial management. I General Governmental Functions I The revenues and other financing sources for general governmental functions (all governmental funds) on a generally accepted accounting principles basis totaled I $23,581,734 in fiscal year 2000. Revenues from various sources and changes from last year are shown below: 1 Increase/ I Amount (Decrease) Percent Fiscal Year Percent from Fiscal Increase/ Functions 2000 of Total Year 1999 (Decrease) Taxes $ 7,876,219 33.40% $ (741,591) (8.61 %) Franchise Fees 1,960,768 8.31% (9,972) (0.51 %) Special Assessments 952,816 4.04% (1,103,489) (53.66 %) Licenses and Permits 2,271,148 9.63% (509,631) (18.33 %) Intergovernmental Revenues 4,658,795 19.75% (56,591) (1.20 %) Charges for Services 675,323 2.87% 225,326 50.08% Fines and Forfeitures 371,594 1.58% (19,373) (4.96 %) 1 Miscellaneous Revenues 2,451,342 10.40% 425,014 20.97% Other Financing I Sources 2,363,709 10.02% (2,394,545) (50.32 %) Total $23,581,734 100.00% $(4,184,852) (15.07 %) Property tax revenue decreased in the debt service funds reflecting the reduction in debt service requirements. Because of the lower debt service requirements the City was able to reduce the debt service levy. The substantial reduction in special assessments is a result of final assessment and collections from the Dartmouth LID that were collected last year and not required during FY 99/00. Due to a reduction in building activity during periods of last year, revenues collected for licenses and permits were at lower levels. Also, during last year, bond anticipation notes were sold for the 69 Avenue LID that is no longer reflected in other financing sources. I The following schedule presents a summary of program expenditures for all governmental funds, including debt service, for the fiscal year ended June 30, 2000, and the changes from the prior year: I I vi I I Increase/ I Amount Percent (Decrease)from Percent Fiscal Year of Fiscal Year Increase/ Functions 2000 Total 1999 (Decrease) I Community Services $ 8,322,224 37.91% $543,891 6.99% Public Works I and Community Development 4,738,142 21.59% 261,578 5.84% Policy and I Administration 2,287,819 10.42% 186,990 8.90% City -wide Support I Function 202,851 0.92% (58,211) (22.30 %) Capital Improvements 3,699,868 16.86% (388,255) (9.50 %) I Debt Service 2,699,338 12.30% (4,151,184) (60.60 %) Total $21,950,242 100.00% ($3,605,191) (14.11 %) Total expenditures decreased 14.11%. This decrease was due primarily from the reduction in the scheduled debt service requirements. Some capital improvement projects I were rescheduled or redesigned resulting in a reduction of expenditures over last year. I Governmental Fund Balances Total governmental fund balances of the City were $16,030,142 at June 30, 2000, I consisting of $7,043,094 in the General Fund, $6,341,228 in the Special Revenue Funds, $1,492,891 in the Debt Funds, and $1,152,929 in the Capital Projects Funds. I Enterprise Operations I The City's enterprise activities include sanitary sewer, storm sewer and water operations. Although the Unified Sewerage Agency (USA) owns and operates sewage treatment plants and sets the sewer rates, the City bills sewer accounts and maintains all sewer lines I within the city. The City also maintains the storm sewer system, and charges a monthly surface water fee at a rate set by the Regional Surface Water Management Agency, a regional entity affiliated with USA. I Sanitary sewer operating revenues derived primarily from service charges amounted to $1,872,747. Operating expenses totaled $1,129,641 resulting in net income of I $1,089,921 after non - operating interest revenues totaling $346,815. I I VII 1 Storm sewer operating revenues amounted to $1,358,007. Storm sewer operating expenses totaled $1,253,824 resulting in net income of $214,765 after non - operating interest revenues totaling $110,582. Water operating revenues derived from user charges amounted to $4,500,936. Operating expenses totaled $5,847,884 resulting in a net loss of ($882,613) after non - operating interest of $464,335. 1 Pension Trust Funds The City provides a retirement plan for each employee rou . Non-police personnel, Yp p g P p P including both management and non - management, are covered by ICMA money purchase plans. Effective July 1, 1989, police personnel were included in the State of Oregon Public Employees Retirement System. In addition, all employees have the option to contribute to an ICMA deferred compensation program. The money purchase plans are accounted for in a pension trust fund. Cash Management Temporarily idle cash during the year with invested in accordance with the investment policy approved by the City Council in certificates of deposit, banker's acceptances, commercial paper, U.S. Treasury Agencies and Notes, and the State of Oregon Local Government Investment Pool. Pension trust funds are invested by the agents with whom investment funds have been deposited and are, therefore, not included in the city's investment activities. Results of investment activity for the fiscal year are shown below in comparison with the previous year: Investment Income 2000 1999 General Fund $ 405,537 $ 347,866 Special Revenue Funds 346,998 372,545 Capital Projects Fund 62,186 27,753 Debt Service Funds 38,247 79,228 Enterprise Funds 921,732 926,761 1 Pension Trust Fund 941,410 845,481 Total $2,716,110 $2,599,634 The objective of the City's investment policy is to provide for the preservation of City assets, to ensure such assets are available to meet obligations and to provide for a reasonable rate of return on those assets. 1 I VIII i i 1 Risk Management ' The City has initiated a Risk Management Program to include regular risk categories such as property and liability as well as workers' compensation. Such risks are currently being insured by third party insurance companies, however, participation in insurance pools and/or self - insurance is being discussed. Debt Management At June 30, 2000, the City has the following debt issues outstanding: ' General Obligation Bonds — 1993 Series A $ 695 000 g , ' General Obligation Bonds —1993 Series B 390,000 Limited Tax Improvement Bonds — Series 1998 1,747,075 Bond Anticipation Notes 3,663,178 Total $6,495,253 The State of Oregon mandates a general obligation debt limit of 3 percent of true cash value of taxable property within the city boundaries. The limit totaled $118,146,175 at June 30, 2000. The City's debt subject to this limit was $695,000. Bancroft Bonds, Limited Tax Improvement bonds and Bond Anticipation Notes are not subject to the limitation. Therefore, $117,451,175 is available for future indebtedness. ' The City has an Al bond rating from Moody's Investment Services on its general obligation bonds. 1 Independent Audit Oregon State Law requires every municipal corporation to submit an annual financial report to the Secretary of State and to have its combined financial statements audited by an independent certified public accountant in accordance with generally accepted auditing standards and the Minimum Standards for Audits of Oregon Municipal Corporations as prescribed by the Secretary of State. The independent auditors' opinion has been included in this report. Awards For the last seventeen consecutive years, the City has received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association of the United States and Canada (GFOA). In order to be awarded a Certificate of Achievement for Excellence, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, which conforms to program standards. Such reports must satisfy both generally accepted IX r • 1 accounting principles and applicable legal requirements. In our opinion, this report ' conforms to these standards. A Certificate of Achievement is valid for a period of one year only. We believe that fur ' current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements, and we are submitting to the GFOA to determine its eligibility for another certificate. 1 In addition, the City also received the GFOA's Award for Distinguished Budget Presentation for its last eleven adopted budgets. In order to qualify for the Distinguished Budget Presentation Award, the City's budget document was judged to be proficient in several categories including policy document, financial plan, operations guide and communications device. Acknowledgements The preparation of the comprehensive annual financial report was made possible by the dedicated service of the entire staff of the Finance Department and our auditors, Pauly, Rogers and Co., P.C. Each member of the Department has our sincere appreciation for the contributions made in the preparation of this report. . In closing, without the leadership and support of the City Council of the City of Tigard, 1 preparation of this report would not have been possible. Sincerely, 1 William A. Monahan Craig Prosser City Manager Finance Director t I t r 1 X I City of Tigard, Oregon I MAYOR AND COUNCIL MEMBERS AS OF JUNE 30, 2000 t Name Term Expires Mayor James Nicoli * December 31, 2002 Councilor Paul Hunt December 31, 2000 Councilor Brian Moore December 31, 2000 Councilor Joyce Patton December 31, 2002 Councilor Ken Scheckla December 31, 2002 1 William A. Monahan, City Manager Crai g Prosser, Finance Director I LEGAL COUNSEL Ramis, Crew, Corrigan & Bachrach 1727 NW Hoyt Street Portland, OR 97209 I * Mayor Nicoli died on June 30, 2000. On September 11, 2000, James Griffith was appointed Mayor for the City of Tigard until a special election is held in March, 2001. I I XI ORGANIZATION CHART I City of Tigard, Oregon Citizens I I Mayor & City City Council .; Attorney , gi i' 1 City Manager I l A3 a- Community : ::;.1 City 1 ".: Police Library Public Works J7 Development Engineering Administration Finance w a ,.+ 1 ,t". ? t v:t - . asm.; fal ' :r 6 ':? G:^" _ _ . :: :.. ,..,�..., u.:.s' "':3 ?"�"s..mt �.� te`.,�.�.'.o- ^"'d %`?S; -c�a � .._ ......... .....rrswt„< > ....,,..:M�. .3t��.��... .,an.....,7"az'�. E`6.:k°.�i'''�i'«... ... Administration Administration Administration Administration Engineering City Finance Department Management Department Operations Readers Services Sanitary Sewer Building Inspection Street Lights /Signals Mayor & Financial Council Operations Support Technical Services Storm Sewer Current Human Resources Office Services ' Services Planning Circulation Water Long Range Risk Management Records Planning Street Network Services Municipal Court I Maintenance Fleet Maintenance I Property Mgmt. Parks and I Grounds I I . I XII I I Certificate of Achievement for Excellence in Financial Reporting Presented to City of Tigard, Oregon For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1999 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. I � \� pN OFH ' E � F ` ie � e\ ( '� UNITED STATES AND y /L."0'4? 2 CANADA CORPORATION JS President CHICAGO 4 Executive Director I I I XVI I 1 1 I I 1 A -�I erer_ao ��� City of Tigard, Oregon I I t I I I 1 •4 Z i�l ICI ZC.) 4 �I e� e MIN OW r NW rr IOW NO NO r OW — WO OW — r r rr ONO r PAULY, ROGERS AND CO., C ® CERTIFIED PUBLIC ACCOUNTANTS I • 12700 SW 72ND AVENUE • TIGARD, OREGON 97223 October 17, 2000 • (503) 620 -2632 • FAX (503) 684 -7523 To the Honorable Mayor and Members of the City Council City of Tigard, Oregon INDEPENDENT AUDITORS' REPORT We have audited the general purpose financial statements of the City of Tigard, Oregon, as of and for the year ended June 30, 2000 as listed in the table of contents. The general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those I standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Tigard, Oregon, as of June 30, 2000, and the results of its operations, and the cash flows of its enterprise fund type for the year then ended, in conformity with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The supplementary data of combining and individual fund and account group statements and other financial schedules, as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The other data included in this report, designated as the statistical section in the table of contents, has not been audited by us, and accordingly, we express no opinion on such data. 44 . I 1 I 1 I I I I I I J I PAULY, ROGERS AND CO., P.C. CERTIFIED PUBLIC ACCOUNTANTS TIGARD, OREGON 97223 1 t 1 I 1 I 1 t I General Purpose Financial Statements t i 1 t 1 1 1 1 t t i 1 t CITY OF TIGARD, OREGON I COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 2000 I Governmental Fund Types Special ASSETS AND OTHER DEBITS General Revenue i Assets: Cash and investments $ 7,967,858 $ 6,759,877 Restricted cash and investments - - Accounts receivable 111,574 249,486 Due from other funds Property taxes receivable 361,908 - Assessment liens receivable - 179,192 Accrued interest on delinquent assessments - - Prepaid insurance 17,759 - Inventory 23,176 Fixed assets, net - - Other Debits: Amount available for retirement of general long -term debt - - Amount to be provided for retirement of general long -term debt - - Total Assets and Other Debts $ 8,482,275 $ 7,188,555 LIABILITIES, FUND EQUITY AND OTHER CREDITS Liabilities Accounts payable and accrued liabilities $ 980,345 $ 302,712 Due to other funds - 59,036 Customer deposits 159,123 328,969 Deferred revenues: Property taxes 299,713 - Assessment liens receivable - 156,610 Accrued interest on delinquent assessments - - Accrued vacation payable - - Bond anticipation notes payable - - III Bonds payable - - Special assessment bonded debt with government commitment - - ' • Total Liabilities 1,439,181 847,327 Equity and Other Credits: Contributed capital - - Investment in general fixed assets - - Retained earnings - - Fund balances: Reserved for prepaid insurance 17,759 - Reserved for inventory 23,176 - Reserved for employee retirement benefits - - Unreserved and undesignated 7,002,159 6,341,228 Total Equity and Other Credits 7,043,094 6,341,228 Total Liabilities, Equity and Other Credits $ 8,482,275 $ 7,188,555 I The accompanying notes are an intergral part of the general purpose financial statements. 2 I CITY OF TIGARD, OREGON COMBINED BALANCE SHEET I ALL FUND TYPES AND ACCOUNT GROUPS June 30, 2000 I Governmental Proprietary Fiduciary Fund Types Fund Type Fund Type Account Groups General Totals I Debt Capital Pension General Long -term (Memorandum Service Projects Enterprise Trust Fixed Assets Debt Only) 111 $ 744,984 $ 1,095,906 $ 13,514,039 $ 9,108,553 $ - $ - $ 39,191,217 - 4,199,377 4,199,377 7,092 2,056,407 2,424,559 59,036 59,036 33,186 164 103 - - - 395,361 3,582,252 - - - - - 3,761,444 2,629 - - - - - 2,629 - - - - - - 17,759 / - - 150,880 - - - 174,056 42,714,483 15,177,264 57,891,747 - - - - - 1,492,891 1,492,891 I - - - - - 5,160,884 5,160,884 $ 4,363,051 $ 1,162,198 $ 62,635,289 $ 9,108,553 $ 15,177,264 $ 6,653,775 $ 114,770,960 I $ - $ 9,105 $ 1,443,090 $ _ $ - $ _ $ 2,735,252 - - 59,036 - - 145,320 - - - 633,412 I 27,920 164 - 327,797 2,839,611 102 2,996,323 2,629 - - - - - 2,629 - - - 105,299 _ - 548,522 653,821 - 3,663,178 3,663,178 - - - - - 695,000 695,000 - - - - 1,747,075 1,747,075 • 2,870,160 9,269 1,693,811 - - 6,653,775 13,513,523 1 - - 47,767,994 - - - 47,767,994 - - - - 15,177,264 - 15,177,264 - - 13,173,484 - - - 13,173,484 I - - - - - - 17,759 - i - - - - = 23,176 - 9,108,553 9,108,553 - 1,492,891 1,152,929 15,989,207 1,492,891 1,152,929 60,941,478 9,108,553 15,177,264 - 101,257,437 $ 4,363,051 $ 1,162,198 $ 62,635,289 $ 9,108,553 $ 15,177,264 $ 6,653,775 $ 114,770,960 I I none. Ammo& I I I I i City of Tigard, Oregon I 1 I I I I I I I 1 CITY OF TIGARD, OREGON COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES II, IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES for the fiscal year ended June 30, 2000 I I Totals Special Debt Capital (Memorandum Revenues: General Revenue Service Projects Only) Taxes $ 7,603,377 $ - $ 272,766 $ 76 $ 7,876,219 I Franchise fees 1,960,768 _ 1,960,768 Special assessments 952,816 952,816. Licenses and permits 36,735 2,234,413 - - 2,271,148 Intergovernmental revenues 2,305,345 2,345,509 - 7,941 4,658,795 I Charges for services 380,386 294,937 675,323 Fines and forfeitures 371,594 371,594 Interest earnings 405,537 346,998 38,247 62,186 852,968 Miscellaneous 199,504 201,744 157,693 1,039,453 1,598,394 Total revenues 13,263,246 5,423,601 1,421,522 1,109,656 21,218,025 I Expenditures: Current Community services 8,298,998 23,226 - - 8,322,224 Public works 440,687 925,204 - - 1,365,891 1 Development services 1,613,350 1,758,901 3,372,251 Policy and administration 1,874,194 413,625 2,287,819 City - wide support function 156,849 46,002 - - 202,851 Capital projects 313,259 1,939,477 - 1,447,132 3,699,868 I Debt service - 2,699,338 - 2,699,338 Total expenditures 12,697,337 5,106,435 2,699,338 1,447,132 21,950,242 I Changes in fund balance before other financing sources (uses) 565,909 317,166 (1,277,816) (337,476) (732,217) I Other financing sources (uses): Proceeds from issuance of bond anticipation notes - - 1,948,178 415,531 2,363,709 Operating transfers in - 150,000 30,000 - 180,000 I Operating transfers (out) (180,000) - (180,000) Total other financing sources (uses) 180,000 150 000 1 978 178 (uses) ( 180,000) 415,531 2,363,709 I Changes in fund balance 385,909 467,166 700,362 78,055 1,631,492 Fund Balance - Beginning of year 6,657,185 5,874,062 792,529 1,074,874 14,398,650 I Fund Balance - End of year $ 7,043,094 $ 6,341,228 $ 1,492,891 $ 1,152,929 $ 16,030,142 The accompanying notes are an integral part of the general purpose financial statement I I 3 I CITY OF TIGARD, OREGON I COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - ALL GOVERNMENTAL FUND TYPES for the fiscal year ended June 30, 2000 I General Fund Special Revenue Funds i Variance Variance Revised Favorable/ Revised Favorable/ Revenues: Budget Actual (Unfavorable) Budget Actual (Unfavorable) Taxes $ 7,596,627 $ 7,603,377 $ 6,750 $ - $ - $ i- Franchisefees 1,951,000 1,960,768 9,768 - - - Special assessments - - - - - - Licenses and permits 30,200 36,735 6,535 2,000,254 2,234,413 234,159 Intergovernmental revenues 2,493,325 2,305,345 (187,980) 2,448,445 2,345,509 (102,936) Charges for services 463,200 380,386 (82,814) 1,634,013 294,937 (1,339,076) Fines and forfeitures 400,500 371,594 (28,906) - - - Interest earnings 321,750 405,537 83,787 454,500 346,998 (107,502) Miscellaneous 144,550 199,504 54,954 80,000 201,744 121,744 Total revenues 13,401,152 13,263,246 (137,906) 6,617,212 5,423,601 (1,193,611) Expenditures: Current Community services 8,623,440 8,298,998 324,442 27,629 23,226 4,403 Public works 542,138 440,687 101,451 1,102,661 925,204 177,457 Development services 1,728,393 1,613,350 115,043 2,081,163 1,758,901 322,262 Policy and administration 2,011,126 1,874,194 136,932 443,246 413,625 29,621 City - wide support function 160,181 156,849 3,332 46,949 46,002 947 Contingency 243,743 - 243,743 500,000 - 500,000 Capital projects 314,960 313,259 1,701 7,155,000 1,939,477 5,215,523 Debt service - - - - - - Total expenditures 13,623,981 12,697,337 926,644 11,356,648 5,106,435 6,250,213 Changes in fund balance before other financing sources (uses) (222,829) 565,909 788,738 (4,739,436) 317,166 5,056,602 I. Other financing sources (uses): Proceeds from issuance of bond • anticipation notes - - - - - - Operating transfers in - - - 150,000 150,000 - Operating transfers (out) (215,000) (180,000) 35,000 - - - Total other financing sources (uses) (215,000) (180,000) 35,000 150,000 150,000 - Changes in fund balance (437,829) 385,909 823,738 (4,589,436) 467,166 5,056,602 Undesignated, Unreserved - Fund Balance Beginning of year 6,307,655 6,657,185 349,530 5,352,186 5,874,062 521,876 Undesignated, Unreserved - Fund Balance End of year $ 5,869,826 $ 7,043,094 $ 1,173,268 $ 762,750 $ 6,341,228 $ 5,578,478 I The accompanying notes are an intergral part of the general purpose financial statements. I • I 4 I II CITY OF TIGARD, OREGON COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES I IN FUND BALANCES - BUDGET AND ACTUAL - ALL GOVERNMENTAL FUND TYPES for the fiscal year ended June 30, 2000 I I Debt Service Funds Capital Projects Funds Totals Memorandum Only) Y) Variance Variance Variance I Revised Favorable/ Revised Favorable/ Revised Favorable/ Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 258,938 $ 272,766 $ 13,828 $ $ 76 $ 76 $ 7,855,565 $ 7,876,219 $ 20,654 - - - - 1,951,000 1,960,768 9,768 296,206 952,816 656,610 - - - 296,206 952,816 656,610 - 2,030,454 2,271,148 240,694 - 247,000 7,941 (239,059) 5,188,770 4,658,795 (529,975) - - - - - - 2,097,213 675,323 (1,421,890) - - - - 400,500 371,594 (28,906) I 15,000 38,247 23,247 23,346 62,186 38,840 814,596 852,968 38,372 180,421 157,693 (22,728) 150,000 1,039,453 889,453 554,971 1,598,394 1,043,423 750,565 1,421,522 670,957 420,346 1,109,656 689,310 21,189,275 21,218,025 28,750 i - - - 8,651,069 8,322,224 328,845 - - - - - - 1,644, 799 1,365,891 278,908 _ _ - - 3,809,556 3,372,251 - 2,287,819 437,305 2,454,372 166,553 - - - 207,130 202,851 4,279 - - - - - 743,743 - 743,743 - - 2,141,530 1,447,132 694,398 9,611,490 3,699,868 5,911,622 4,108,620 2,699,338 1,409,282 4,108,620 2,699,338 1,409,282 4,108,620 2,699,338 1,409,282 2,141,530 1,447,132 694,398 31,230,779 21,950,242 9,280,537 i (3,358,055) (1,277,816) 2,080,239 (1,721,184) (337,476) 1,383,708 (10,041,504) (732,217) 9,309,287 3,440,000 1,948,178 (1,491,822) 70,000 415,531 345,531 3,510,000 2,363,709 (1,146,291) 30,000 30,000 510,000 (510,000) 690,000 180,000 (510,000) - - - - - (215,000) (180,000) 35,000 I 3,470,000 1,978,178 (1,491,822) 580,000 415,531 (164,469) 3,985,000 2,363,709 (1,621,291) 111,945 700,362 588,417 (1,141,184) 78,055 1,219,239 (6,056,504) 1,631,492 7,687,996 I 4,830 792,529 787,699 1,143,117 1,074,874 (68,243) 12,807,788 14,398,650 1,590,862 $ 116,775 $ 1,492,891 $ 1,376,116 $ 1,933 $ 1,152,929 $ 1,150,996 $ 6,751,284 $ 16,030,142 $ 9,278,858 I I I I 1 CITY OF TIGARD, OREGON COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL ENTERPRISE FUNDS for the fiscal year ended June 30, 2000 I I Operating revenues: ` Service charge $ 7,418,171 Miscellaneous 313,519 Total operating revenues 7,731,690 Operating expenses: Salaries, wages and benefits 2,219,976 Contracted services 108,386 General, administrative and other 4,552,128 Depreciation p 1,350,859 Total operating expenses 8,231,349 Operating loss (499,659) Nonoperating revenues - Interest 921,732 Net Income 422,073 Add depreciation on fixed assets donated or acquired from capital contributions that reduce contributed capital 905,406 1 Increase in retained earnings 1,327,479 Retained earnings - beginning of year 11,846,005 1 Retained earnings - end of year $ 13,173,484 The accompanying notes are an integral part of the general purpose financial g p g p p statement. I I 5 i CITY OF TIGARD, OREGON COMBINED STATEMENT OF CASH FLOWS ALL ENTERPRISE FUNDS for the fiscal year ended June 30, 2000 1 I Cash flows from operating activities: Operating loss $ (499,659) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 1,350,859 Increase in accounts receivable 642,689 Decrease in inventory 73,158 Increase in customer deposits 74,187 Increase in accounts payable and accrued liabilities (1,168,730) Increase in accrued vacation payable 30,648 Decrease in deferred revenue (39) Net cash provided by operating activities 503,113 Cash flows from capital and related financing activities: Capital contributions 413,280 Acquisition of fixed assets (1,868,923) Net cash used by capital and related financing activities (1,455,643) Cash flows from investing activities - Interest earnings 921,732 Net decrease in cash and cash equivalents (30,798) Cash and cash equivalents - beginning of year 17,744,214 Cash and cash equivalents - end of year $ 17,713,416 Cash and cash equivalents are displayed on the balance sheet as follows: Cash and investments $ 13,514,039 Restricted cash and investments 4,199,377 $ 17,713,416 Supplemental schedule of noncash investing, capital and related financing activities: Contributed sewer, storm and water lines $ 2,114,222 The accompanying notes are an integral part of the general purpose financial statement. I 6 I CITY OF TIGARD, OREGON I STATEMENT OF PLAN NET ASSETS PENSION TRUST FUND June 30, 2000 Cash and investments $ 9,108,553 1 Net assets held in trust for pension benefits $ 9,108,553 1 STATEMENT OF CHANGES IN PLAN NET E ASSETS PENSION TRUST FUND for the fiscal year ended June 30, 2000 I Additions: Contributions $ 733,511 Interest 941,410 Deductions: Benefit payments and withdrawals (271,676) Increase in net assets 1,403,245 Net assets held in trust for pension benefits: Beginning of year 7,705,308 End of year $ 9,108,553 I I The accompanying notes are an integral part of the general purpose financial statement. I 7 i Notes to General Purpose Financial Statements Q City of Tigard, Oregon I Notes to General Purpose Financial Statements 1. Summary of Significant Accounting Policies: ,1 The City of Tigard, under its Charter of 1962, is governed by an elected mayor and four council members who comprise the City Council. The City has no component units. Measurement Focus The financial statements of the Governmental Fund Types are accounted for using a current 1 financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the combined balance sheet. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Agency funds do not present operating results. The Proprietary Fund Type (Enterprise Funds) and Pension Trust Fund are accounted for using a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the combined balance sheet. Bases of Accounting The Governmental Fund Types and Agency Fund are maintained on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded in the accounting period in which they become measurable and available and expenditures are recorded in the time liabilities are incurred. Revenues which were measurable and available at year -end under the modified accrual basis of accounting were as follows: * State, county, and local shared revenues for cigarette tax, liquor tax and other. * Property tax revenues and assessment liens principal installments which are collected within sixty days following year -end. The accrual basis of accounting is utilized by the Proprietary Fund Type and Pension Trust , Fund. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The proprietary funds have applied all Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the Committee and Accounting Procedure issued on or before November 30, 1989, unless those pronouncements conflict with or contradict Governmental Accounting Standards Board (GASB) pronouncements. I The basis of accounting described above are in accordance with generally accepted accounting principles. Receivables Receivables for state, county and local shared revenues are recorded as revenue in the Governmental Funds when they are determined to be measurable and available. Receivables of the Enterprise Funds are recorded as revenue when earned. I 8 City of Tigard, Oregon Notes to General Purpose Financial Statements 1. Summary of Significant Accounting Policies, Continued: Substantially all accounts receivable for sewer and water service are either current or less than 30 days delinquent and are considered collectible. Therefore, an allowance for uncollectible accounts has not been provided. All accounts receivable balances are due from customers within the City's boundaries. Property taxes receivable for the Governmental Fund Types which have been collected within sixty days subsequent to year -end are considered measurable and available and are recognized as revenues. All other property taxes are offset by deferred property tax revenues and, accordingly, have not been recorded as revenue. Property taxes become a lien and are levied 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. Taxes unpaid and outstanding on May 16 are considered delinquent. All property taxes received are due from property owners within the County. Assessments in the governmental funds are recognized as receivables at the time property owners are assessed for property improvements. Assessments receivable collected within sixty days after year -end are considered measurable and available and are recognized as revenue. All other assessments receivable are recorded as deferred revenue and, accordingly, have not been recorded as revenue. Accrued interest on delinquent assessments which has been collected within sixty days subsequent to year -end is considered measurable and available is recognized as revenue. The remaining accrued interest on delinquent accounts is offset by a deferred revenue account and, accordingly, has not been recorded as revenue. Inventories Inventories of parts, materials and supplies are stated at cost on the first -in, first -out basis and are charged to expenditures as used. Restricted Cash and Investments Cash and investments which may only be used for construction of fixed assets in accordance with applicable laws and regulations have been reported as restricted cash and investments on the combined balance sheet Investments Investments included in cash and investments are stated at fair value. Investments in the pension trust fund are stated at market. For purposes of the statement of cash flows, the City considers the Enterprise Funds' cash and investments with initial maturities to the City of three months or less, and the Oregon State Treasurer's Investment Pool, to be cash. I I I 9 City of Tigard, Oregon 1 Notes to General Purpose Financial Statements 1. Summary of Significant Accounting Policies, Continued: Enterprise Fund Fixed Assets Purchased fixed assets are stated at historical cost or estimated historical cost when historical cost is not available. Donated assets are recorded at fair market value on the date of donation. Estimated fair market value of donated assets is determined based on the engineering estimates of current cost or price indexed cost. Depreciation is computed on assets in service, using the straight -line method over their estimated useful lives: Buildings 40 years , Sewer Systems 40 years Storm Drainage System 40 years Water System 50 years Equipment 5 to 10 years Autos and Trucks 6 years Depreciation expense on fixed assets donated or acquired from capital contributions is recognized as a reduction of contributed capital and an increase in retained earnings. Normal maintenance and repairs are charged to operations as incurred. Major additions, improvements and replacements are capitalized. Gains or losses from sales or retirements of fixed assets are included in operations. General Fixed Assets General fixed assets are stated at historical cost or estimated cost when historical cost is not available. Fixed assets are charged to expenditures in the Governmental Fund Types as purchased and capitalized in the General Fixed Assets Account Group. Maintenance and repairs of fixed assets are charged to expenditures in the Governmental Fund Types as incurred and are not capitalized. As fixed assets are disposed of, the historical cost or estimated historical cost is removed from this account group; proceeds from sales of general fixed assets are recorded as General Fund revenue. Depreciation is not computed on general fixed assets. Expenditures for public domain fixed assets (streets, sidewalks, curbs and gutters, lighting 1 systems and similar assets) that are immovable and of value only to the City as a governmental unit are reported as expenditures as incurred and are not capitalized in the General Fixed Assets Account Group. Long -term Debt All unmatured long -term debt is recorded in the General Long -term Debt Account Group. Periodic principal and interest repayments on bonded debt are made from special assessments and property tax levies and are recorded in the Debt Service Funds. Bond anticipation notes are expected to be repaid by rolling over the bonds to new bond anticipation notes or by issuing long -term Bancroft Bonds. The accrued vacation liability will be paid from the various governmental funds. The City has no long -term debt in its Enterprise Funds. 1 I 10 I City of Tigard, Oregon Notes to General Purpose Financial Statements 1. Summary of Significant Accounting Policies, Continued: Accrued Vacation Payable Accumulated vested vacation pay is accrued in the Enterprise Funds as it is earned by employees. In Governmental Fund Types the amounts, if any, expected to be liquidated with expendable available resources are accrued as liabilities of the funds and the amount payable from future resources is recorded in the General Long -term Debt Account Group. Sick pay, which does not vest, is recorded in all funds when leave is taken. Contributed Capital Contributed capital in the Enterprise Funds represents the accumulation of contributions in the form of cash or other assets which generally do not have to be returned to the contributor. Such contributions are recorded directly to contributed capital and, accordingly, are not recognized as revenue. The following transactions are recorded in contributed capital in the Enterprise Funds: • Receipts of federal and state grants for acquisition of fixed assets. • Fixed assets contributed from other funds or the General Fixed Assets Account Group. • Contributions from others for the acquisition or construction of fixed assets. • Transfers from retained earnings for depreciation on fixed assets donated or acquired by contributed capital resources. • Meter installation and waterline hookup fees from customers and pipe installations by developers. Budget A budget is prepared for each fund except for the Pension Trust Fund, essentially in accordance with the modified accrual basis of accounting for governmental funds, in accordance with the legal requirements set forth in Oregon Local Budget Law. The resolution authorizing appropriations sets the maximum level of expenditures for each fund. Expenditure appropriations may not be legally overexpended. 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, Development Services, Policy and Administration, Nondepartmental, Debt Service, Capital Improvements and Contingency. The detail budget document, however, is required to contain more detailed information for the above - mentioned expenditure categories. Budget amounts include original approved amounts and all subsequent appropriations transfers approved by the City Council. 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 requires 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. During the fiscal year ended June 30, 2000, several appropriation transfers were made along with a supplemental budget for the 69 Ave. Local Improvement District Fund. I 11 City of Tigard, Oregon I Notes to General Purpose Financial Statements 1. Summary of Significant Accounting Policies, Continued: I Budget, Continued The budgets for each of the funds include capital outlay expenditures in each program for capital outlays applicable to that program. Capital outlay expenditures benefiting the City generally, and not an identifiable program, are reported separately. Debt service is also budgeted separately. Totals (Memorandum Only) Column on Combined Financial Statements The "Totals (Memorandum Only)" column on the combined financial statements represents an aggregate of the columnar statements by fund type and account group; it does not represent consolidated financial information. Interfund eliminations have not been made in the aggregation of this data 2. Fund Types and Account Groups: The City's financial operations are accounted for in the following funds and account s: rou g P Governmental Fund Types I General Fund - This fund accounts for the City's general operations. It is used to account for all transactions not specifically related to the City's other funds. Special Revenue Funds: Criminal Forfeiture Fund - This fund accounts for funds and property seized from criminals in connection with crimes committed. State Gas Tax Fund - This fund accounts for revenues received from state gasoline taxes which are to be expended as specified in the Constitution of the State of Oregon, Article IX, Section 3. Parks SDC Fund - This fund accounts for system development charges for major improvements to recreational facilities within the City. County Gas Tax Fund - This fund accounts for road tax monies received from Washington County for the maintenance and operation of roads. Traffic Impact Fund - This fund accounts for traffic impact fees charged for new development. This voter approved county -wide fee takes the place of the City's Street SDC Fund. Funds will be used for highway and transit capital improvements approved by the County that provide additional capacity to the major transportation system. Electrical Inspection Fund - This fund accounts for fees charged for permits and inspection of electrical improvements. Underground Utility Fund - This fund accounts for monies received from I developers for future underground utility improvements. Workers' Compensation Fund - This fund accounts for payments made I for the workers' compensation insurance plan. Building Fund - This fund accounts for fees charged for building inspection and plan review activities. 12 I City of Tigard, Oregon Notes to General Purpose Financial Statements 2. Fund Types and Account Groups, Continued: Governmental Fund Types, Continued Special Revenue Funds, Continued: Traffic Impact Fee, Urban Services Fund - This Fund accounts for traffic impact fees collected in the unincorporated Bull Mountain area. Funds will be used for highway and transit capital improvements approved by the Washington County that provide additional capacity to the major transportation system. Urban Services Fund - This fund accounts for all revenues and ' 1 expenditures related to services provided in the unincorporated Bull Mountain area. The City of Tigard began providing services to this area after signing an intergovernmental agreement with Washington County. Tree Replacement Fund - This fund accounts for fees charged to developers in lieu of saving existing trees. Debt Service Funds: General Obligation Debt Service Fund - This fund accounts for payment of general obligation bond principal and interest. The principal source of revenue is from property taxes. Bancroft Bond Debt Service Fund - This fund accounts for payment of Bancroft improvement bond principal and interest. The principal source of revenue is the collection of assessments against benefited property, interest and contributions from other funds for their share of costs. Capital Projects Funds: 69 Ave. Local Improvement District Fund - This fund accounts for construction of Local Improvement District projects from the sale of bond anticipation notes and certain other debt. SW Dartmouth Local Improvement District /CIP Fund - This fund accounts for construction of Local Improvement District projects from the sale of bond anticipation notes and certain other debt. Park Levy Capital Improvement Fund - This fund accounts for proceeds from the sale of certificates of participation and improvements to the City's park system. Facility Fund - This fund accounts for monies set aside for future City facility improvements. Metro Greenspace Fund - This fund accounts for monies received from Washington County to be used for greenspace property acquisition and improvements. I 13 City of Tigard, Oregon , Notes to General Purpose Financial Statements 2. Fund Types and Account Groups, Continued: Governmental Fund Types, Continued Enterprise Funds: Sanitary Sewer Fund - This fund accounts for the City's sewer utility operations. Storm Sewer Fund - This fund accounts for the City's storm drainage operations. Storm Sewer Fund (budgetary basis financial statements only) Water Quality and Quantity Fund (budgetary basis financial statements only) Water Fund - This fund accounts for the City's water operations. Water Fund (budgetary basis financial statements only) Water SDC Fund (budgetary basis financial statements only) Water CIP Fund (budgetary basis financial statements only) Fiduciary Fund Type: Pension Trust Fund - This fund accounts for the City's General and Water Fund employee defined contribution plans. I Account Groups General Fixed Assets - This account group displays the City's investment 111 in fixed assets, with the exception of those assets recorded in the Enterprise Funds. General Long -term Debt - This account group displays general long -term indebtedness of the City. 1 I I 1 1 14 City of Tigard, Oregon Notes to General Purpose Financial Statements 3. Cash and Investments: The City maintains a cash and investment pool that is available for use by all funds, except the Pension Trust Funds. Each fund type's portion of this pool is displayed on the combined balance sheet as "cash and investments '. The investments of the Pension Trust Fund are held separately from those of other City funds. Cash and investments are comprised of the following at June 30, 2000: Cash on hand $ 8,904 Cash held by Department of Finance, Washington County 35,025 Deposits with financial institutions 369,964 Investments 42,976,701 $ 43,390,594 Cash and investments are displayed on balance sheet as follows: Cash and investments $ 39,191,217 Restricted cash and investments 4,199,377 $ 43.390.594 Deposits Deposits with financial institutions include bank demand deposits and time deposit accounts. The total bank balance is $1,215,693 (book balance is $369,964). Of these deposits, $100,000 was covered by federal depository insurance and $1,115,693 was collateralized with securities held by collateral pool managers. Oregon Revised statutes require the depository institution to maintain on deposit, with a collateral pool manager, securities having a value not less than 25 percent of the outstanding certificates of collateral issued by the poll manager. The City's deposits are fully collaterlized in accordance with state law. Investments 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 the state Treasurer's Investment pool, among others. ' The City participates in the Oregon State Treasurer's Local Government Investment Pool (LGIP), an open- ended; no -load diversified portfolio created under ORS 294.805 to 294.895. The LGIP is administered by the State Treasurer and the Oregon Investment Council with the advice of the Oregon Short Term Fund Board. The Oregon State Treasurer's Office has calculated the fair value of the underlying investments of the LGIP and the City's share of fair value is reflected below. The City's investments are categorized below to give an indication of the level of credit risk assumed by the City at June 30, 2000. Category 1 includes uninsured investments for which the securities are held in the City's name by the trust department of the financial institution selling the security to the City. Category 3 includes uninsuranced investments for which the securities are held by the financial institution selling the security to the City or by its trust department, but not in the City" name. The City does not use brokers or dealers for its investments. I 15 City of Tigard, Oregon I Notes to General Purpose Financial Statements 3. Cash and Investments, Continued: 1 Category 1 2 3 Amount U.S. Government Securities $ 25,581,956 $ 25,581,956 Held by custodians I under pension plans - mutual fund investments 9,108,553 State Treasurer's Investment Pool 8,286,192 Total Investments $ 42,976,701 4. Assessment Liens Receivable: Assessment liens receivable represent the uncollected amounts levied against benefited property for the cost of local improvements. Because the assessments are liens against the 1 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 to 7 to 13 percent. At June 30, 2000, the portion of the assessments receivable balance that represents delinquent accounts is approximately $4,525. 5. Due To /Due From Other Funds: Amounts are comprised of the following: Fund Interfund Interfund Receivables Payables Capital Projects Fund: Facility Fund $ 59,036 $ - Special Revenue Fund: Urban Services Fund - 59,036 $ 59,036 $ 59,036 l I I 1 . 1 16 I I City of Tigard, Oregon Notes to General Purpose Financial Statements I 6. Fixed Assets: I Changes in fixed assets and accumulated depreciation by major classes in the Enterprise Funds for the year ended June 30, 2000, are as follows: Balances Balances I June, 30 June, 30 1999 Adjustments Additions Retirements 2000 Land $ 1,331,457 $ - $ 30,351 $ - $ 1,361,808 I Building 1,052,255 - 1,052,255 Sewer system 10,202,915 (35,807) 1,120,029 11,287,137 Storm drainage system 9,487,793 - 615,197 - 10,102,990 I Water system 34,730,827 - 2,090,645 36,821,472 Equipment 1,106,519 86,936 (9,617) 1,183,838 Autos and trucks 810,677 - 39,987 - 850,664 1 58,722,443 (35,807) $ 3,983,145 $ (9,617) 62,660,164 Less accumulated I depreciation (18,639,870) $ 35,807 $ (1,350,859) $ 9,241 (19,945,681) $ 40,082,573 $ 42,714,483 Changes in fixed assets in the General Fixed Asset Account e ccount Group for the year ended June 30, 2000, are as follows: I Balances Balances June 30,1999 Additions Retirements June 30, 2000 I Land $ 4,491,061 $ 536,720 $ (295,462) $ 4,732,319 Buildings 5,510,445 260,749 (112,700) 5,658,494 Equipment 1,144,097 260,266 (2,442) 1,401,921 Autos and trucks 1,308,310 241,733 (58,831) 1,491,212 Office equipment 1,775,820 240,528 (123,030) 1,893,318 I $ 14,229,733 $ 1,539,996 $ (592,465) $ 15,177,264 I I I I I 17 City of Tigard, Oregon I Notes to General Purpose Financial Statements 7. Long -term Debt: I Bonds payable Bond transactions for the year ended June 30, 2000, and future maturities of bond principal and interest, are as follows: General Obligation bond issues — Interest rates from 3.4% to 4.75% 1 Fiscal Year Outstanding Paid Outstanding Due June 30,1999 During Year June 30, 2000 Interest 2000 $ 210,000 $ (210,000) $ - $ - 2001 225,000 - 225,000 26,994 1 2002 225,000 - 225,000 16,813 2003 245,000 - 245,000 5,819 $ 905,000 $ (210,000) $ 695,000 $ 49,626 1 I Bancroft Improvement Bonds: Bancroft improvement bond issues — Interest rates from 3.75% to 11.75 %; payable first from I assessments to benefited properties and second, from the general credit of the City. Paid and Outstanding Paid Called Outstanding Fiscal Year June 30, During During June 30, Due 1999 Year Year 2000 Interest 1997 $ 10,000 $ - $ (10,000) $ - $ - 1998 - - - - - 1999 - - - - - 2000 189,174 (189,174) - - - 2001 134,907 - - 134,907 77,171 2002 205,894 - (65,000) 140,894 71,184 2003 257,147 - - 257,147 62,400 2004 153,678 - - 153,678 53,340 2005 -2010 1,135,449 - (75,000) 1,060,449 109,132 $ 2,086,249 $ (189,174) $ (150,000) $ 1,747,075 $ 373,227 1 I I I I 18 I I City of Tigard, Oregon Notes to General Purpose Financial Statements I 7. Long -term Debt, Continued: I Other Long -term Debt Other long -term debt recorded in the General Long -term Debt Account Group and the changes thereto during the year ended June 30, 2000, are as follows: I Balance Balance June 30, June 30, 1999 Additions Retirements 2000 Accrued vacation payable $ 398,138 $ 548,522 $ (398,138) $ 548,522 I Bond anticipation notes due May 1, 2000; interest rate 4.15% $ 1,947,678 $ - $ (1,947,678) $ - I October 1, 2000; interest rate 4.15% 1,245,000 - 1 (1,245,000) - January 2, 2001; interest rate 5.1% 1,715,000 1,715,000 May 1, 2001; interest rate 5.33% - 1,948,178 - 1,948,178 I Total bond anticipation note due $ 3,192,678 $ 3,663,178 $ (3,192,678) $ 3,663,178 Note: It is the intention of the City to roll over each issue of the bond anticipation notes until bonds I are sold. 8. Contributed Capital: I The changes in contributed capital for the year ended June 30, 2000, were as follows: Balance - Beginning of year $ 46,146,272 I Contributions from customers - cash 413,280 11 Contributions from customers - non -cash 2,114,222 Non -cash from deletion of fixed asset (374) Transfer of depreciation on certain contributed fixed assets from retained earnings (905,406) I Balance - End of year $ 47,767,994 I I I I 19 City of Tigard, Oregon Notes to General Purpose Financial Statements 9. Retirement Plans: 1 The City contributes to retirement plans on behalf of all eligible employees. At June 30, 2000, the following employee groups were covered by the following retirement plans: Group Retirement Plan Management/Professional Staff (Nonunion) International City Managers Association Retirement Corp. (ICMARC) Money Purchase Plan Oregon Public Employees Union Employees ICMARC Money Purchase Plan Tigard Water Fund Employees Ameritus I Tigard Police Officers State of Oregon Public Employees Retirement System (PERS) Oregon Public Employees Retirement Systems (OPERS) Plan Description 1 The City is a participating employer in the Oregon Public Employees Retirement System (OPERS), an agent multiple - employer public employee retirement system, established under Oregon Revised Statutes 238.600, that acts as a common investment and administrative agent for public employers in the State of Oregon. Substantially all full -time police employees are participants in PERS. The plan provides retirement, death and disability benefits to participants or their beneficiaries. Benefits are established by State Statute, and employer contributions are made at an actuarially determined rate as adopted by the OPERS Retirement Board. OPERS, a component unit of the State of Oregon, issues a comprehensive annual financial report, which may be obtained by writing to Oregon Public Employees Retirement System, P.O. Box 23700, Tigard, Oregon 97281 -3700. Funding Policy The City's annual required contribution rate, as of July 1, 1999, is 6.99% of covered payroll. I The next scheduled valuation date is December 31, 1999. This valuation has not been completed. The City is required by State Statute to contribute its current employer rate of 6.99% of covered plus employee contributions of 6% of covered payroll. Annual Pension Cost • 1 Because all OPERS participating employers are required by law to submit the contributions as adopted by the OPERS Retirement Board, there is no net pension obligation to report and the annual contributions are equal to the annual pension cost. For the fiscal years ended June 30, 2000, 1999 and 1998, the City's annual pension cost was approximately $202,000, $328,000 and $299,000, respectively. The City's pension liability and the annual required contribution rate were determined as part of the December 31, 1997 actuarial valuation using the entry age actuarial cost method. The unfunded actuarial accrued liability in amortized as a level percentage of covered payroll over a 30 -year period. The actuarial assumptions include a rate of return on investment of present and future assets of 8% per year, projected salary increase of 5% per year, and cost of living adjustments of 2% per year for post- retirement benefits. 20 1 ' City of Tigard; Oregon Notes to General Purpose Financial Statements 9. Retirement Plans, Continued: The following table presents a schedule of funding progress for the City's multiple - employer pension plan: Overfunded Actuarial Overfunded Liability as a I Actuarial Actuarial Actuarial Percent of Actuarial Value of Accrued Accrued Funded Covered Covered Valuation Date Assets Liability Liability Ratio Payroll Payroll 1 December31, 1993 $ 5,846,165 $ 5,738,843 $ (107,332) 102% $ 1,918,181 -6% December 31, 1995 7,946,463 7,616,462 (330,001) 104% 2,353,479 -14% December 31, 1997 9,664,661 7,952,478 (1,712,183) 122% 2,360,045 -73% I ICMARC Plans The City contributes to defined contribution, single employer retirement plans at a specified percent of gross salary depending on the employment group, for all employees who are not covered under the Police Pension Plan. Employees do not make contributions to these plans. The City is required to make contributions to these plans under authority of City Council resolution and the plan documents. e 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 plans are made to a fiduciary. Since the plans are administered by the City, the assets, equity and operations of the plans are accounted for in the General Employees Pension Plan Fund, a pension trust fund. The Plans invests in various money ' market and equity mutual funds. Required and actual contributions to the plan were $694,049 for the year ended June 30, 2000. Covered payroll was $6,309,536, for the year ended June 30, 2000. Contributions as a percentage of payroll was 11 percent for all eligible employees participating in the plans. I 21 City of Tigard, Oregon Notes to General Purpose Financial Statements 9. Retirement Plans, Continued: I Deferred Compensation Plans The City offers certain employees deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans permit employees to defer a portion of their salary until future years. Contributions for the plans are made to fiduciaries who hold the I funds in trust for the plans' participants. The Deferred Compensation Plans are not considered City funds and are excluded from the Combined Balance Sheets. 10. Transactions with Unified Sewerage Agency of Washington County: I The City collects charges for treatment of City sewage on behalf of the Unified Sewerage Agency of Washington County (USA) and remits all collections. to USA except for 21.4 percent of sewer service charges collected and 20 percent of connection charges collected, in accordance with an agreement between the City and USA dated June 25, 1991. Payments of $4,802,159 were made to USA during 2000 under this agreement. The City has a similar agreement with the Regional Surface Water Management Agency, which is an affiliate of USA for storm water systems. Payments made to the Agency during 2000 under the agreement were $372,262. I The net amount retained by the City is reported as revenue in the Enterprise Funds in the Combined Statement of Revenues, Expenses and Changes in Retained Earnings /Fund Balance - All Proprietary Fund Types - Enterprise Funds. Revenues are reported net because the City acts in a fiduciary capacity on behalf of USA. 11. Segment Information for Enterprise Funds: I The City's Sewer Fund and Storm Drainage Fund account for the acquisition, operation, and maintenance of sewer and storm drainage systems which are supported by I user charges. The City's Water Fund accounts for the operation and maintenance of the City's water system and is supported through user charges. Segment information as of and for the year ended June 30, 2000, is as follows: Sanitary Sewer Storm Sewer Water I Fund Fund Fund Total Operating revenue $ 1,872,747 $ 1,358,007 $ 4,500,936 $ 7,731,690 1 Depreciation 286,867 270,530 793,462 1,350,859 Operating income (loss) 743,106 104,183 (1,346,948) (499,659) I Net income (loss) 1,089,921 214,765 (882,613) 422,073 Current capital contributions 410,848 407,338 1,709,316 2,527,502 Fixed asset additions 733,563 210,058 925,302 1,868,923 I Networking capital 3,518,814 1,412,556 9,096,247 14,027,617 Total assets 15,446,513 10,470,631 36,718,145 62,635,289 Total equity 14,635,019 10,362,692 35,943,767 60,941,478 1 I 1 22 City of Tigard, Oregon Notes to General Purpose Financial Statements ' 12. Constitutional Property Tax Limitations: In November 1990, the Oregon voters approved a State constitutional limit on property taxes for schools and nonschool government operations. Under the provisions of the limitation, tax revenues are separated into those for the public school system and those for local ' government operations other than the public school system. The limitation specifies $10.00 is the maximum allowable tax for each $1,000 of property real market value imposed by local governments other than the public school system. ' The limitation applies to all state and local taxes and charges on property except for the following: 1. Incurred charges for goods or services received at the owner's option; 2. assessments for capital construction that provide a special benefit to the property and that can be paid off over at lease ten years; 3. taxes to repay bonded debt authorized by the state constitution; 4. taxes to repay existing bonded debt for capital construction, and 5. taxes to repay new bonded debt for capital construction if approved by voters. During May 1997, Oregon voters approved Measure 50 which limits taxes on each property by reducing the 1997 -98 assessed value of each property to 90% of its 1995 -96 value. Measure 50 also limits future growth of the taxable value of each property to 3% per year with certain exceptions. Measure 50 also establishes permanent tax rates for Oregon's I local taxing districts, which replace the former tax base amounts of the districts. Tigard's taxing authority is limited to its permanent rate of $2.51 per thousand dollars of assessed value. 13. Deficit Fund Balance: ' At June 30, 2000, the SW Dartmouth Local Improvement District/CIP Fund, one of the funds in the Capital Projects fund type, had a deficit fund balance of $5,145. Management has budgeted activities for this fund for the year ending June 30, 2001, which are intended to bring the fund balance into a positive position by June 30, 2001. 14. Risk Management ' The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and others; and natural disasters. The City purchases commercial insurance to deal with substantially all these risks with nominal deductibles. Settled claims resulting from these risks have not exceeded ' commercial insurance coverage in any of the past three fiscal years. 15. Overexpenditures of Appropriations: For the Year ended June 30, 2000, the following fund had an over expenditure of appropriations: Electrical Inspection Fund Development services $1,677 • 1 23 1 i 1 i 1 rAll; Goon, AlusaiMI City of Tigard, Oregon 1 1 1 1 1 1 1 L t I Supplementary Data I I I I I 1 A I Ato I III�I 1 .� ;„ ' AAA A ..._ .m11■1f 1 City of Tigard, Oregon I I I I I I 1 I I ' General Fund. This fund accounts for the financial operations of the City which are p Y not accounted for in any other fund. Principal resources are property taxes, franchise fees, intergovernmental revenues, and licenses and permits. Expenditures in the General Fund are made primarily for police protection, community development and administration. I CITY OF TIGARD, OREGON I GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL I for the fiscal year ended June 30, 2000 I Variance Revised Favorable/ REVENUES: Budget Actual (Unfavorable) Taxes $ 7,596,627 $ 7,603,377 $ 6,750 ' Franchise fees 1,951,000 1,960,768V 9,768 Licenses and permits 30,200 36,735 6,535 Intergovernmental revenues 2,493,325 2,305,345 (187,980) Charges for services 463,200 380,386 (82,814) I Fines and forfeitures 400,500 371,594 (28,906) Interest earnings 321,750 405,537 83,787 Miscellaneous 144,550 199,504 / 54,954 ' Total revenues 13,401,152 13,263,246,/ (137,906) EXPENDITURES I Community services 8,623,440 8,298,998 324,442 I Public works 542,138 440,687 101,451 Development services 1,728,393 1,613,350 115,043 Policy and administration 2,011,126 1,874,194 136,932 City -wide support function 160,181 156,849 3,332 Contingency 243,743 - 243,743 Capital projects 314,960 313,259 1,701 Total expenditures 13,623,981 12,697,337 926,644 1 Change in fund balance I before other financing (uses) (222,829) 565,909 788,738 Other financing (uses): Operating transfer out (215,000) (180,000) 35,000 1 Change in fund balance (437,829) 385,909 823,738 UNDESIGNATED, UNRESERVED - FUND BALANCE I BEGINNING OF YEAR 6,307,655 6,657,185 ✓ 349,530 UNDESIGNATED, UNRESERVED - FUND BALANCE I END OF YEAR $ 5,869,826 $ 7,043,094 $ 1,173,268 I I 24 Special Revenue Funds I ' The Special Revenue Funds account for revenue derived from specific taxes or other earmarked revenue sources which are legally restricted to finance particular functions or activities. Funds included in the fund type are: I ' ® Forfeitures From Criminal Activity Fund ' ® State Tax Street Fund .1 ® Parks SDC ® County Gas Tax Fund ® Traffic Impact Fund ® Electrical Inspection Fund • Underground Utility Fund ' ® Worker's Compensation Fund • Building Fund ® Traffic Impact Fee Urban Services Fund I • Urban Services i ® Tree Replacement Fund I CITY OF TIGARD, OREGON SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2000 State County Traffic Criminal Gas Parks Gas Traffic Electrical Underground Workers' Impact Fee Urban Tree Forfeiture Tax SDC Tax Impact Inspection Utility Compensation Building Urban Service Services Replacement Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total ASSETS: Cash and investments $ 65,583 $ 426,973 $ 978,947 $ 60,006 $ 3,089,941 $ 126,341 $ 387,224 $ 364,101 $ 220,086 $ 636,624 $ 197,457 $ 206,594 $ 6,759,877 Accounts receivable - 166,800 - - - - - - - - 82,686 - 249,486 Assessment liens receivable - - - - 179,192 - - - - - - - 179,192 Total assets $ 65,583 $ 593,773 $ 978,947 $ 60,006 $ 3,269,133 $ 126,341 $ 387,224 $ 364,101 $ 220,086 $ 636,624 $ 280,143 $ 206,594 $ 7,188,555 LIABILITIES AND FUND BALANCES: LIABILITIES: Accounts payable $ - $ 51,911 $ 61,830 $ - $ 168,289 $ 48 $ - $ - $ - $ - $ 20,634 $ - $ 302,712 Due to other funds - - - - - - - - - - 59,036 - 59,036 Customer deposits - 127,024 - - - 5,397 - - - - 196,548 I - 328,969 Deferred revenues - - - - 156,610 - - - - - - - 156,610 N CT1 Total liabilities - 178,935 61,830 - 324,899 5,445 - - - - 276,218 - 847,327 FUND BALANCE UNRESERVED 65,583 414,838 917,117 60,006 2,944,234 120,896 387,224 364,101 220,086 636,624 3,925 206,594 6,341,228 Total liabilities and fund balances $ 65,583 $ 593,773 $ 978,947 $ 60,006 $ 3,269,133 $ 126,341 $ 387,224 $ 364,101 $ 220,086 $ 636,624 $ 280,143 $ 206,594 $ 7,188,555 all MS • ale In ewe an IIIIII - 11011 1111111 eye r - 1111111 111. MI all - -®® SW 1 MN M MN MO MI e NM MS w NM MI - N CITY OF TIGARD, OREGON SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE for the fiscal year ended June 30, 2000 State County Traffic Criminal Gas Parks Gas Traffic Electrical Underground Workers' Impact Fee Urban Tree Forfeiture Tax SDC Tax Impact Inspection Utility Compensation Building Urban Service Services Replacement Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES Licenses and permits $ - $ - $ - $ - $ 732,582 $ 168,277 $ - $ - $ 888,849 $ 129,309 $ 315,396 $ - $ 2,234,413 Intergovernmental revenues - 1,831,263 - 181,560 - - - - - - 332,686 - 2,345,509 Charges for services - - 235,325 - - - 48,915 - 7,120 - 3,577 - 294,937 Interest earnings 5,905 23,673 46,104 - 178,415 7,349 18,119 14,473 2,727 29,025 11,363 9,845 346,998 Miscellaneous revenues 16,942 8,191 - 2,258 - - - 123,249 20 - 12,012 39,072 201,744 Total revenues 22,847 1,863,127 281,429 183,818 910,997 175,626 67,034 137,722 898,716 158,334 675,034 48,917 5,423,601 EXPENDITURES. Community services 11,660 - - - - - - - - - - 11,566 23,226 Public works - 611,394 - 132,191 - 871 - - 17,216 - 163,532 - 925,204 Development services - 400,235 3,640 - 70,171 163,348 - - 667,137 30,895 423,475 - 1,758,901 Policy and administration - 170,905 - - - 26,295 - - 141,556 - 74,869 - 413,625 City - wide support functions - 21,015 - - - 3,944 - - 11,775 - 9,268 - 46,002 N Capital projects - 563,895 194,286 - 1,166,927 - - - - - - 14,369 1,939,477 Total expenditures 11,660 1,767,444 197,926 132,191 1,237,098 194,458 - - 837,684 30,895 671,144 25,935 5,106,435 Changes in fund balance before other financing sources 11,187 95,683 83,503 51,627 (326,101) (18,832) 67,034 137,722 61,032 127,439 3,890 22,982 317,166 Other financing sources: Interfund transfer from the General Fund - - - - - - - - 150,000 - - - 150,000 Changes in fund balance 11,187 95,683 83,503 51,627 (326,101) (18,832) 67,034 137,722 211,032 127,439 3,890 22,982 467,166 FUND BALANCE - beginning of year 54,396 319,155 833,614 8,379 3,270,335 139,728 320,190 226,379 9,054 509,185 35 183,612 5,874,062 FUND BALANCE - end of year $ 65,583 $ 414,838 $ 917,117 $ 60,006 $ 2,944,234 $ 120,896 $ 387,224 $ 364,101 $ 220,086 $ 636,624 $ 3,925 $ 206,594 $ 6,341,228 CITY OF TIGARD, OREGON I CRIMINAL FORFEITURE FUND SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 I I Variance I Revised Favorable Budget Actual (Unfavorable) REVENUES: I Interest earnings $ 5,600 $ 5,905 $ 305 I Miscellaneous 5,000 16,942 11,942 Total revenues 10,600 22,847 12,247 I EXPENDITURES: , Community services 16,000 11,660 4,340 Change in fund balance (5,400) 11,187 16,587 1 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 37,628 54,396 16,768 I UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 32,228 $ 65,583 $ 33,355 I I I I I I I 27 III 1 CITY OF TIGARD, OREGON STATE GAS TAX FUND I SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 I I I Revised Variance Favorable/ Budget Actual (Unfavorable) I I REVENUES: Federal grants $ - $ 166,800 166,800 I State gas tax 2,170,245 1,654,580 (515,665) Street lighting fees 8,200 9,883 1,683 Interest earnings 28,000 23,673 (4,327) I Miscellaneous - 8,191 8,191 Total revenues 2,206,445 1,863,127 (343,318) EXPENDITURES: I Public works 749,931 611,394 1 38,537 Development services 510,844 400,235 110,609 Policy and administration 181,361 170,905 10,456 City -wide support functions 21,462 21,015 447 I Contingency 50,000 50,000 Capital projects 945,000 563,895 381,105 Total expenditures 2,458,598 1,767,444 691,154 Change in fund balance (252,153) 95,683 347,836 1 UN DESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 255,356 319,155 63,799 I UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 3,203 $ 414,838 $ 411,635 I I I I 28 CITY OF TIGARD, OREGON I PARKS SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL I for the fiscal year ended June 30, 2000 I I Variance Revised Favorable/ Budget Actual (Unfavorable) REVENUES: System development charges $ 381,480 $ 235,325 $ (146,155) Interest earnings 68,000 46,104 (21,896) 1 Total revenues 449,480 281,429 (168,051) EXPENDITURES: I Development services 3,891 3,640 251 I Capital projects 910,000 194,286 715,714 Total expenditures 913,891 197,926 715,965 Change in fund balance (464,411) 83,503 547,914 I UNDESIGNATED, UNRESERVED - FUND BALANCE I BEGINNING OF YEAR 465,336 833,614 368,278 UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 925 $ 917,117 $ 916,192 I I I I I I 29 CITY OF TIGARD, OREGON COUNTY GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 1 I Variance Revised Favorable/ Budget Actual (Unfavorable) REVENUES: County gas taxes $ 150,000 $ 181,560 $ 31,560 Interest earnings 2,400 2,258 (142) Total revenues 152,400 183,818 31,418 EXPENDITURES: Public works 151,743 132,191 19,552 Change in fund balance 657 51,627 50,970 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 62 8,379 8,317 UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 719 $ 60,006 $ 59,287 I I 1 30 CITY OF TIGARD, OREGON , TRAFFIC IMPACT FEE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL ' for the fiscal year ended June 30, 2000 1 Variance Revised Favorable/ Budget Actual (Unfavorable) REVENUES: System development charges $ 980,340 $ 732,582 $ (247,758) Interest earnings 250,000 178,415 (71,585) Total revenues 1,230,340 910,997 (319,343) EXPENDITURES: Development services 70,742 70,171 571 Capital projects 3,800,000 1,166,927 2,633,073 Contingency 300,000 - 300,000 Total expenditures 4,170,742 1,237,098 2,933,644 Change in fund balance (2,940,402) (326,101) 2,614,301 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 2,963,789 3,270,335 306,546 UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 23,387 $ 2,944,234 $ 2,920,847 1 1 t 1 1 1 31 I CITY OF TIGARD, OREGON ELECTRICAL INSPECTION FUND I SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 I I I Revised Variance Favorable/ Budget Actual (Unfavorable) I REVENUES: Electrical permit fees $ 178,057 $ 155,940 $ (22,117) Electrical plan check fees 14,511 12,337 (2,174) II Interest earnings 20,000 7,349 (12,651) Total revenues 212,568 175,626 (36,942) I EXPENDITURES: Public works 966 871 95 Development services 161,671 163,348 (1,677) Policy and administration 27,955 26,295 1,660 I City -wide support function 4,024 3,944 80 Contingency 50,000 50,000 Total expenditures 244,616 194,458 50,158 I Change in fund balance (32,048) (18,832) 13,216 I UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 159,274 139,728 (19,546) I UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 127,226 $ 120,896 $ (6,330) I I I I I 1 32 CITY OF TIGARD, OREGON , UNDERGROUND UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 1 Variance Revised Favorable/ Budget Actual (Unfavorable) REVENUES: Charges for services $ 58,000 $ 48,915 $ (9,085) Interest earnings 16,000 18,119 2,119 Total revenues 74,000 67,034 (6,966) EXPENDITURES: Capital projects 373,000 - 373,000 Change in fund balance (299,000) 67,034 366,034 ' UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 299,205 320,190 20,985 1 UN DESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 205 $ 387,224 $ 387,019 1 i t 1 I 1 1 t 33 t CITY OF TIGARD, OREGON WORKERS' COMPENSATION FUND ' SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 1 I Variance Revised Favorable/ Budget Actual (Unfavorable) REVENUES: Interest earnings $ 12,000 $ 14,473 $ 2,473 Miscellaneous 40,000 123,249 83,249 I Total revenues 52,000 137,722 85,722 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 215,121 226,379 11,258 ' UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 267,121 $ 364,101 $ 96,980 1 1 1 I 1 1 1 I . 1 34 1 CITY OF TIGARD, OREGON I BUILDING FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL I for the fiscal year ended June 30, 2000 I i I Variance Revised Favorable/ Budget Actual (Unfavorable) REVENUES: Licenses and permits $ 981,138 $ 888,849 $ (92,289) II Charges for services 11,125 7,120 (4,005) Interest earnings 6,500 2,727 (3,773) Miscellaneous - 20 20 Total revenues 998,763 898,716 (100,047) I EXPENDITURES: Public works 20,085 17,216 2,869 I Development services 768,620 667,137 101,483 Policy and administration 152,886 141,556 11,330 City -wide support functions 12,012 11,775 237 Contingency 50,000 - 50,000 Total expenditures 1,003,603 837,684 165,919 1 Change in fund balance before other financing sources (4,840) 61,032 65,872 1 Other financing sources: Interfund transfer from the General Fund 150,000 150,000 - Change in fund balance 145,160 211,032 65,872 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 66,030 0 9,054 (56,976) UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 211,190 $ 220,086 $ 8,896 I I I 35 I I CITY OF TIGARD, OREGON TRAFFIC IMPACT FEE URBAN SERVICES FUND I SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 I I I Variance Revised Favorable/ Budget Actual (Unfavorable) I REVENUES: Licenses and permits $ 389,130 $ 129,309 $ (259,821) Interest earnings 20,000 29,025 9,025 I Total revenues 409,130 158,334 (250,796) I EXPENDITURES: Development services 31,159 30,895 264 I Capital projects 900,000 - 900,000 Total expenditures 931,159 30,895 900,264 III Change in fund balance (522,029) 127,439 649,468 UN DESIGNATED, UNRESERVED - FUND BALANCE I BEGINNING OF YEAR 525,232 509,185 (16,047) UNDESIGNATED, UNRESERVED - FUND BALANCE I END OF YEAR $ 3,203 $ 636,624 $ 633,421 I I I I I I i 36 CITY OF TIGARD, OREGON I URBAN SERVICES FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 I I Variance Revised Favorable/ I Budget Actual (Unfavorable) REVENUES: Intergovernmental revenues $ 120,000 $ 332,686 $ 212,686 I Licenses and permits 629,986 315,396 (314,590) Charges for services 10,500 3,577 (6,923) Interest earnings 13,000 11,363 (1,637) Miscellaneous - 12,012 12,012 Total revenues 773,486 675,034 (98,452) 1 EXPENDITURES: Public works 179,936 163,532 16,404 Development services 522,607 423,475 99,132 Policy and administration 81,044 74,869 6,175 1 City -wide support functions 9,451 9,268 183 Contingency 50,000 - 50,000 Total expenditures 843,038 671,144 171,894 i Change in fund balance (69,552) 3,890 73,442 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 173,887 35 (173,852) UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 104,335 $ 3,925 $ (100,410) I I I I I 37 CITY OF TIGARD, OREGON TREE REPLACEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 i I Variance Revised Favorable/ Budget Actual (Unfavorable) REVENUES: Tree replacement revenue $ 35,000 $ 39,072 $ 4,072 Interest earnings 13,000 9,845 (3,155) Total revenues 48,000 48,917 917 EXPENDITURES: Community services 11,629 11,566 63 Capital projects 227,000 14,369 212,631 Total expenditures 238,629 25,935 212,694 Change in fund balance (190,629) 22,982 213,611 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 191,266 183,612 (7,654) UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 637 $ 206,594 $ 205,957 I I I I I 111 38 1 t 1 i I I 1 City of Tigard, Oregon I I 1 1 I I t 1 1 I I I I Debt Service Funds ■ The Debt Service Funds account for the payment of debt principal f and interest. The City's debt service funds consist of . I • General Obligation Bond Debt Service Fund ® Bancroft Bond Debt Service Fund Principal sources of revenues are property taxes for the General Obligation Bond Debt Service Fund and special assessment collections and interest earnings for the Bancroft Bond Debt Service Fund. 1 I I I I 1 1 CITY OF TIGARD, OREGON I DEBT SERVICE FUNDS COMBINING BALANCE SHEET June 30, 2000 I General Obligation Bancroft Debt Bond Debt I Service Fund Service Fund Total ASSETS: Cash and investments $ 37,275 $ 707,709 $ 744,984 III Property taxes receivable 33,186 - 33,186 Assessment liens receivable - 3,582,252 3,582,252 Accrued interest on delinquent assessments - 2,629 2,629 Total assets $ 70,461 $ 4,292,590 $ 4,363,051 LIABILITIES AND FUND BALANCES: I LIABILITIES: Deferred revenues: Property taxes $ 27,920 $ - $ 27,920 Assessment liens receivable - 2,839,611 2,839,611 Accrued interest on delinquent assessments 2,629 2,629 Total liabilities 27,920 2,842,240 2,870,160 FUND BALANCES - DESIGNATED FOR DEBT SERVICE 42,541 1,450,350 1,492,891 Total liabilities and fund balances $ 70,461 $ 4,292,590 $ 4,363,051 1 I I I I I 39 I I CITY OF TIGARD, OREGON DEBT SERVICE FUNDS I COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES I for the fiscal year ended June 30, 2000 I General Obligation Bancroft Debt Bond Debt I Service Fund Service Fund Total REVENUES: I Taxes $ 272,766 $ $ 272,766 Collection of Bonded Assessments 952,816 952,816 Miscellaneous earnings - 157,693 157,693 I Interest earnings 6,539 31,708 38,247 Total revenues 279,305 1,142,217 1,421,522 I EXPENDITURES: Debt service 251,030 2,448,308 2,699,338 I Change in fund balance before other financing sources 28,275 (1,306,091) (1,277,816) I Other financing sources: Proceeds from issuance of bond anticipation notes - 1,948,178 1,948,178 Interfund transfer from the General Fund 30,000 - 30,000 I Change in fund balance 58,275 642,087 700,362 I DESIGNATED - FUND BALANCE (DEFICIT) BEGINNING OF YEAR (15,734) 808,263 792,529 I DESIGNATED - FUND BALANCE END OF YEAR $ 42,541 $ 1,450,350 $ 1,492,891 I I I I I i 40 CITY OF TIGARD, OREGON , GENERAL OBLIGATION DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 Variance Revised Favorable/ Budget Actual (Unfavorable) REVENUES: Taxes 258 258,938 272 $ 8 $ 272,766 $ 13,828 Interest earnings 5,000 6,539 1,539 Total revenues 263,938 279,305 15,367 EXPENDITURES: Debt service 251,030 251,030 - Change in fund balance 1 before other financing sources 12,908 28,275 15,367 Other financing sources: I Interfund transfer from the General Fund 30,000 30,000 - Change in fund balance 42,908 58,275 15,367 1 DESIGNATED - FUND BALANCE (DEFICIT) BEGINNING OF YEAR (42,908) (15,734) 27,174 DESIGNATED - FUND BALANCE - END OF YEAR $ - $ 42,541 $ 42,541 1 41 i CITY OF TIGARD, OREGON BANCROFT BOND DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 I i I Variance Revised Favorable/ Budget Actual (Unfavorable) REVENUES: Collection of bonded assessments $ 296,206 $ 952,816 $ 656,610 Miscellaneous 180,421 157,693 (22,728) Interest earnings 10,000 31,708 21,708 Total revenues 486,627 1,142,217 655,590 EXPENDITURES: Debt service 3,857,590 2,448,308 1,409,282 Change in fund balance before other financing sources (3,370,963) (1,306,091) 2,064,872 Other financing sources: Proceeds from issuance of bond anticipation notes 3,440,000 1,948,178 (1,491,822) Change in fund balance 69,037 642,087 573,050 i DESIGNATED - FUND BALANCE BEGINNING OF YEAR 47,738 808,263 760,525 DESIGNATED - FUND BALANCE END OF YEAR $ 116,775 $ 1,450,350 $ 1,333,575 I I I I 42 1 1 1 1 1 AAAA_ City of Tigard, Oregon It 1 t t I I 1 1 I i Capital Projects Funds I The Capital Projects Funds are used to account for the construction t of major capital projects and include: e 69 Ave Local Improvement District Fund — funded by proceeds from the sale of bond anticipation notes and other short-term debt. I . SW Dartmouth Local Improvement District /CIP Fund — funded by proceeds from the sale of bond anticipation notes and other short -term debt. ® Metro Greenspace Fund — accounts for monies received from Washington County to be used for greenspace property acquisition and improvements. I ® Park Levy Improvement Fund — Revenue from Certificates of Participation may only be used to fund specific park system improvements. The Park Levy ended in 1994/95. Continuing delinquent collections provide limited funds for ongoing improvements. • Facility Fund — accounts for monies set aside for future City facility improvements. I 1 I I CITY OF TIGARD, OREGON I CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 2000 I 69th Avenue SW Dartmouth I Local Local Improvement Improvement Metro Park Levy I District District /CIP Greenspace Improvement Facility Fund Fund Fund Fund Fund Total ASSETS: Cash and investments $ 73,667 $ (2,753) $ (7,092) $ 219,053 $ 813,031 $ 1,095,906 Accounts receivable - - 7,092 - - 7,092 Due from other funds - - - - 59,036 59,036 Property taxes receivable - - - 164 - 164 Total assets $ 73,667 $ (2,753) $ - $ 219,217 $ 872,067 $ 1,162,198 LIABILITIES AND FUND BALANCES: I LIABILITIES: Accounts payable and accrued liabilities $ 2,438 $ 2,392 $ - $ 3,367 $ 908 $ 9,105 Deferred revenues - - - 164 - 164 Total Liabilities 2,438 2,392 - 3,531 908 9,269 FUND BALANCES (DEFICIT) - I UNRESERVED 71,229 (5,145) - 215,686 871,159 1,152,929 Total liabilities and fund balances $ 73,667 $ (2,753) $ - $ 219,217 $ 872,067 $ 1,162,198 I I I I I I I 43 I I CITY OF TIGARD, OREGON CAPITAL PROJECTS FUNDS I COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE for the fiscal year ended June 30, 2000 I I 69th Avenue SW Dartmouth Local Local Improvement Improvement Metro Park Levy I District District/CIP Greenspace Improvement Facility Fund Fund Fund Fund Fund Total REVENUES: Property taxes $ - $ - $ _ $ 76 $ - $ 76 I Intergovernmental revenues 7,941 7,941 Miscellaneous 1,726 1,037,727 1,039,453 Interest earnings 10,837 530 - 11,317 39,502 62,186 I Total revenues 12,563 530 7.941 11,393 1,077,229 1,109,656 EXPENDITURES: Capital projects 1,185,395 28,120 7,941 19,462 206,214 1,447,132 I Change in fund balance before other financing sources (1,172,832) (27,590) - (8,069) 871,015 (337,476) Other financing sources: I Proceeds from issuance of bond anticipation notes 415,531 - - - - 415,531 Change in fund balance (757,301) (27,590) - (8,069) 871,015 78,055 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 828,530 22,445 223,755 144 1,074,874 UNDESIGNATED, UNRESERVED - FUND BALANCE (DEFICIT) END OF YEAR $ 71,229 $ (5,145) $ $ 215,686 $ 871,159 $1,152,929 I I I I I I I 44 I CITY OF TIGARD, OREGON I 69th AVE. LOCAL IMPROVEMENT DISTRICT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL I for the fiscal year ended June 30, 2000 I I Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: Miscellaneous 1,726 1,726 Interest Earnings 1,000 10,837 9,837 Total revenues 1,000 12,563 11,563 I EXPENDITURES: II II Capital projects 1,304,530 1,185,395 119,135 Change in fund balance g I before other financing sources (1,303,530) (1,172,832) 130,698 Other financing sources : I Interfund Transfer 475,000 - (475,000) Bond proceeds - 415,531 415,531 1 Change in fund balance (828,530) (757,301) 71,229 UN DESIGNATED, UNRESERVED - FUND BALANCE I BEGINNING OF YEAR 828,530 828,530 - UNDESIGNATED, UNRESERVED - FUND BALANCE I END OF YEAR $ - $ 71,229 $ 71,229 I 111 I I I 45 I CITY OF TIGARD, OREGON SW DARTMOUTH LOCAL IMPROVEMENT DISTRICT /CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 I Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: Interest Earnings $ - $ 530 $ 530 EXPENDITURES: Capital projects 70,000 28,120 41,880 Change in fund balance before other financing sources 70,000 27,590 42,410 Other financing sources : Bond proceeds 70,000 - $ (70,000) Change in fund balance - 27,590 (27,590) UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 900 22,445 21,545 UNDESIGNATED, UNRESERVED - FUND BALANCE (DEFICIT) END OF YEAR $ 900 $(5,145) $ (6,045) I I I I 1 I 46 CITY OF TIGARD, OREGON t METRO GREENSPACE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 I I Variance Revised Favorable/ Budget Actual (Unfavorable) REVENUES: Intergovernmental revenues $ 247,000 $ 7,941 $ (239,059) EXPENDITURES: Capital projects 247,000 7,941 239,059 Change in fund balance - - - 1 UN DESIGNATED, UNRESERVED (DEFICIT) - FUND BALANCE BEGINNING OF YEAR 130 - (130) UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 130 $ - $ (130) 1 I I I I 1 I I 47 i CITY OF TIGARD, OREGON PARK LEVY IMPROVEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 I I I Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: Property taxes $ - $ 76 L ' $ 76 Interest earnings 12,700 11,317'' (1,383) Total revenues 12,700 11,393— (1,307) EXPENDITURES: Capital projects 218,000 19,462 198,538 Change in fund balance (205,300) (8,069) 197,231 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 205,866 223,755 17,889 UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 566 $ 215,686 $ 215,120 I I I 1 I 1 48 CITY OF TIGARD, OREGON t FACILITY FUND SCHEDULE OF. REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 I I Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: Miscellaneous $ 150,000 $ 1,037,727 $ 887,727 Interest earnings 9,646 39,502 29,856 Total revenues 159,646 1,077,229 917,583 EXPENDITURES: projects Capital ects 302 000 206,214 95,786 P P Change in fund balance before other financing sources (142,354) 871,015 1,013,369 Other financing sources: Interfund transfer 35,000 - (35,000) Change in fund balance (107,354) 871,015 978,369 1 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 107,691 144 (107,547) UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 337 $ 871,159 $ 870,822 I I I 1 I 49 I I I I Enterprise Funds The Sanitary Sewer and Storm Sewer Funds are used to account for the acquisition and maintenance of sewer and storm drainage facilities which are supported by user charges. The Water Fund is used to account for the operations and maintenance of the water system and is supported through user charges. For financial reporting and operating purposes, management considers the activities of the Storm Sewer Fund and the Water Fund as unitary enterprises. However, for budgetary and legal purposes these activities are accounted for in the ® funds listed below. Budget to actual schedules for these funds, ■ prepared on the accrual basis of accounting, are included in this subsection. Funds included in this fund category are: ® Sanitary Sewer Fund ® Storm Sewer Fund ® Storm Sewer Fund • Water Quality and Quantity Fund ® Water Fund ® Water General Fund • Water SDC Fund • Water CIP Fund I i CITY OF TIGARD, OREGON I ENTERPRISE FUNDS COMBINING BALANCE SHEET June 30, 2000 1 I Storm Sanitary Sewer Sewer Water Fund Fund Fund Total ASSETS: Current assets: I Cash and investments $ 3,381,257 $ 1,259,135 $ 8,873,647 $ 13,514,039 Accounts receivable 949,051 261,360 845,996 2,056,407 Property taxes receivable 1 - 102 103 Inventory - - 150,880 150,880 Total current assets 4,330,309 1,520,495 9,870,625 15,721,429 Noncurrent assets: Restricted cash and investments 3,206,288 993,089 - 4,199,377 Fixed assets, net 7,909,916 7,957,047 26,847,520 42,714,483 1 Total noncurrent assets 11,116,204 8,950,136 26,847,520 46,913,860 Total assets $ 15,446,513 $ 10,470,631 $ 36,718,145 $ 62,635,289 1 LIABILITIES AND FUND EQUITY: I LIABILITIES: Accounts payable and accrued I liabilities $ 784,645 $ 76,886 $ 581,559 $ 1,443,090 Customer deposits - 2,118 143,202 145,320 I Deferred revenue - - 102 102 Accrued vacation payable 26,849 28,935 49,515 105,299 Total liabilities 811,494 107,939 774,378 1,693,811 I FUND EQUITY: Contributed capital 7,176,880 8,049,057 32,542,057 47,767,994 1 Retained earnings 7,458,139 2,313,635 3,401,710 13,173,484 Total fund equity 14,635,019 10,362,692 35,943,767 60,941,478 1 Total liabilities and fund equity $ 15,446,513 $ 10,470,631 $ 36,718,145 $ 62,635,289 I 1 50 I I CITY OF TIGARD, OREGON ENTERPRISE FUNDS I COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS for the fiscal year ended June 30, 2000 I Storm Sanitary Sewer Sewer Water Fund Fund Fund Total OPERATING REVENUES: I Service charges $ 1,678,732 $ 1,271,105 $ 4,468,334 $ 7,418,171 Miscellaneous 194,015 86,902 32,602 313,519 I Total operating revenues 1,872,747 1,358,007 4,500,936 7,731,690 OPERATING EXPENSES: I Salaries and wages 524,821 595,016 1,100,139 2,219,976 Contracted services 7,470 36,267 64,649 108,386 General, administrative and other 310,483 352,011 3,889,634 4,552,128 I Depreciation 286,867 270,530 793,462 1,350,859 Total operating expenses 1,129,641 1,253,824 5,847,884 8,231,349 I Operating income (loss) 743,106 104,183 (1,346,948) (499,659) I NONOPERATING REVENUE: Interest revenue 346,815 110,582 464,335 921,732 I Net income (Loss) 1,089,921 214,765 (882,613) 422,073 RECLASSIFICATION: I Add depreciation on fixed assets donated or acquired from capital contributions that I reduces contributed capital 198,962 194,317 512,127 905,406 Increase (decrease) in retained earning: 1,288,883 409,082 (370,486) 1,327,479 I RETAINED EARNINGS - beginning of year 6,169,256 1,904,553 3,772,196 11,846,005 RETAINED EARNINGS - end of year $ 7,458,139 $ 2,313,635 $ 3,401,710 $ 13,173,484 I I I I 51 I CITY OF TIGARD, OREGON I ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS for the fiscal year ended June 30, 2000 1 Storm I Sewer Drainage Water • Fund Fund Fund Totals I Cash flows from operating activities: Operating income (loss) $ 743,106 $ 104,183 $ (1,346,948) $ (499,659) Adjustments to reconcile operating I income (loss) to net cash provided by (used by) operating activities: Depreciation Expense 286,867 270,530 793,462 1,350,859 Decrease in accounts receivable 319,788 29,971 292,930 642,689 Decrease in inventory - - 73,158 73,158 Increase in customer deposits - 2,118 72,069 74,187 Increase (decrease) in accounts payable and accrued liabilities (1,176,046) (68,125) 75,441 (1,168,730) Increase in accrued vacation payable 7,246 10,566 12,836 30,648 (Decrease) in deferred revenues - - (39) (39) Net cash provided (used by) operating activities 180,961 349,243 (27,091) 503,113 Cash flows from capital and related 1 financing activities: Capital contributions - - 413,280 413,280 Acquisition of fixed assets (733,563) (210,058) (925,302) (1,868,923) Net cash (used by) capital and related financing activities (733,563) (210,058) (512,022) (1,455,643) Cash flows from investing activities - Interest earnings 346,815 110,582 464,335 921,732 Net increase (decrease) in cash and cash equivalents (205,787) 249,767 (74,778) (30,798) Cash and cash equivalents - beginning of year 6,793,332 2,002,457 8,948,425 17,744,214 Cash and cash equivalents - end of year $6,587,545 $ 2,252,224 $ 8,873,647 $ 17,713,416 Cash and cash equivalents are displayed on the balance sheet as follows: I Cash and investments $3,381,257 $ 1,259,135 $ 8,873,647 $ 13,514,039 Restricted cash and investments 3,206,288 993,089 4,199,377 $6,587,545 $ 2,252,224 $ 8,873,647 $ 17,713,416 Supplemental Schedule of Nonfat I Capital and Related Financing Activities: Contributed sewer, storm and water lines $ 410,848 $ 407,338 $ 1,296,036 $ 2,114,222 I I 52 i I CITY OF TIGARD, OREGON SANITARY SEWER FUND I SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 I 1 I Variance Revised Favorable Budget Actual (Unfavorable) I REVENUES: Service charge $ 1,339,980 $ 1,678,732 $ 338,752 Miscellaneous - 194,015 194,015 I Interest earnings 300,000 346,815 46,815 Total revenues 1,639,980 2,219,562 579,582 1 EXPENDITURES: I Public works 662,009 471,983 190,026 Development services 73,100 71,031 2,069 Policy and administration 303,522 290,613 12,909 I City -wide support function 26,829 26,282 547 Contingency 200,000 200,000 Capital projects 3,000,000 709,183 2;290,817 I Total expenditures 4,265,460 1,569,092 2,696,368 Change in fund balance (2,625,480) 650,470 3,275,950 I UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 5,985,647 6,101,481 115,834 I UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 3,360,167 $ 6,751,951 $ 3,391,784 1 I I I I i 53 CITY OF TIGARD, OREGON I STORM SEWER FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 1 I Variance Revised Favorable/ Budget Actual (Unfavorable) REVENUES: Service charge $ 893,813 $ 1,080,666 $ 186,853 I Miscellaneous - 44,412 44,412 Interest earnings 36,500 34,433 (2,067) I Total revenues 930,313 1,159,511 229,198 EXPENDITURES: I Public works 758,827 589,587 169,240 Development services 67,264 65,598 1,666 I Policy and administration 286,657 275,643 11,014 City -wide support function 26,829 26,282 547 Contingency 50,000 - 50,000 I Capital projects 900,000 207,859 692,141 Total expenditures 2,089,577 1,164,969 924,608 I Change in fund balance (1,159,264) (5,458) 1,153,806 UNDESIGNATED, UNRESERVED - FUND BALANCE I BEGINNING OF YEAR 1,191,881 783,436 (408,445) UNDESIGNATED, UNRESERVED - FUND BALANCE I END OF YEAR $ 32,617 $ 777,978 $ 745,361 I I I I 1 54 I CITY OF TIGARD, OREGON WATER QUALITY /QUANTITY FUND I SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 I I I Revised Variance Favorable/ Budget Actual (Unfavorable) REVENUES: I Service charge $121,170 $ 190,439 $ 69,269 Interest earnings 80,000 76,149 (3,851) I Miscellaneous - 42,490 42,490 Total revenues 201,170 309,078 107,908 I EXPENDITURES: I Development services 1,945 88 1,793 152 Capital projects 882,000 16,023 865,977 I Total expenditures 883,945 17,816 866,129 Change in fund balance (682,775) 291,262 974,037 I UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 683,418 1,365,340 681,922 I UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 643 $ 1,656,602 $ 1,655,959 I I I I I I 55 CITY OF TIGARD, OREGON I WATER FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL I for the fiscal year ended June 30, 2000 I I Variance I Revised Favorable/ Budget Actual (Unfavorable) REVENUES: Service charge $4,096,650 $ 4,468,334 $ 371,684 1 System development charges 308,000 544,015 236,015 Interest earnings 400,000 244,756 (155,244) I Miscellaneous 41,900 28,814 (13,086) Total revenues 4,846,550 5,285,919 439,369 I EXPENDITURES: Public works 5,062,422 4,725,587 336,835 I Policy and administration 374,169 353,245 20,924 City -wide support function 26,829 26,282 547 Contingency 488,228 - 488,228 I Capital projects 1,110,800 764,723 346,077 Total expenditures 7,062,448 5,869,837 1,192,611 I Change in fund balance (2,215,898) (583,918) 1,631,980 UNDESIGNATED, UNRESERVED - FUND BALANCE I BEGINNING OF YEAR 4,528,579 5,304,991 776,412 UNDESIGNATED, UNRESERVED - FUND BALANCE I END OF YEAR $ 2,312,681 $ 4,721,073 $ 2,408,392 I I I I 1 56 ' CITY OF TIGARD, OREGON WATER SDC FUND 1 SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 1 i 1 Variance Revised Favorable/ Budget Actual (Unfavorable) 1 REVENUES: System development charges $192,510 $ 233,610 $ 41,100 Interest 20,000 25,007 5,007 Total revenues 212,510 258,617 46,107 EXPENDITURES: Capital projects 943,000 279,645 663,355 1 Change in fund balance (730,490) (21,028) (617,248) UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 731,402 398,858 (332,544) UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 912 $ 377,830 $ (949,792) 1 I 1 i 1 1 1 ' 57 CITY OF TIGARD, OREGON 1 WATER CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2000 i 1 Variance Revised Favorable/ Budget Actual (Unfavorable) REVENUES: Interest earnings $ 220,000 $ 194,572 $ (25,428) Miscellaneous - 4,163 4,163 Total revenues 220,000 198,735 (21,265) 1 EXPENDITURES: Capital projects 4,000,000 108,847 3,891,153 Change in fund balance (3,780,000) 89,888 3,869,888 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 3,788,461 3,806,091 17,630 UNDESIGNATED, UNRESERVED - FUND BALANCE 1 END OF YEAR $ 8,461 $ 3,895,979 $ 3,887,518 1 1 1 1 1 1 1 1 58 1 I I I I I General Fixed. Assets Account Group I This account group accounts for the City's investment in fixed I assets, with the exception of those assets in the Enterprise Funds. I I I I I 1 I I I I I I CITY OF TIGARD, OREGON , SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE June 30, 2000 1 GENERAL FIXED ASSETS Land $ 4,732,319 Building 5,658,494 Office equipment 1,893,318 Equipment 1,401,921 Autos and trucks 1,491,212 Total general fixed assets $ 15,177,264 1 INVESTMENT IN GENERAL FIXED ASSETS BY SOURCE: General fund $ 11,200,010 Special revenue funds 1,465,892 Capital projects funds 1,391,984 Donations 1,119,378 1 Total investment in general fixed assets $ 15,177,264 1 I I i 1 59 I CITY OF TIGARD, OREGON SCHEDULE OF GENERAL FIXED ASSETS I BY FUNCTION AND ACTIVITY June 30, 2000 I I Machinery, I Equipment, Function and Activity Total Land Buildings and Other Community services: I Police $ 1,739,188 $ $ $1,739,188 Library 453,054 453,054 Parks 506,347 506,347 I Total community services 2,698,589 2,698,589 1 Community development: Administration 98,604 98,604 Building 171,170 171,170 Planning 45,819 45,819 I Engineering 266,351 266,351 Operations /admin. 78,219 78,219 Operations /shops 52,595 52,595 I Streets 513,189 513,189 Operations /management 30,172 30,172 I Total community development 1,256,119 1,256,119 Policy and administration: Mayor and city council 20,564 20,564 I City administration 57,171 57,171 Finance 77,782 77,782 Computer services 351,067 351,067 I Accounting 55,779 55,779 Office services 45,687 45,687 Records 41,752 41,752 I Court 11,892 11,892 Total policy and administration 661,694 661,694 I General government 10,560,862 4,732,320 5,658,494 170,048 Total investment in general fixed assets $15,177,264 $4,732,320 $5,658,494 $4,786,450 I I 1 60 1 CITY OF TIGARD, OREGON I SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY 111 for the fiscal year ended June 30, 2000 I General General I Fixed Assets Transfers/ Fixed Assets Function and Activity June 30, 1999 Additions Retirements June 30, 2000 Community services: I Police $ 1,585,021 $ 233,238 $ (79,071) $ 1,739,188 Library 455,354 29,324 (31,624) 453,054 Parks 394,995 111,352 - 506,347 Total community services 2,435,370 373,914 (110,695) 2,698,589 I Community services: Administration 95,694 2,910 - 98,604 Building 174,133 3,520 (6,483) 171,170 Planning 47,433 3,751 (5,365) 45,819 Engineering 245,840 40,164 (19,653) 266,351 I Operations /admin. 52,071 26,997 (849) 78,219 Operations /shops 50,218 2,377 - 52,595 Streets 461,606 53,264 (1,681) 513,189 Operations /management 25,556 4,616 - 30,172 Total community development 1,152,551 137,599 (34,031) 1,256,119 Policy and administration: II Mayor and city council 20,564 - - 20,564 City administration 61,808 1,953 (6,590) 57,171 Finance 75,315 2,467 - 77,782 Computer services 225,614 151,491 (26,038) 351,067 Accounting 50,414 8,965 (3,600) 55,779 Office services 46,383 2,653 (3,349) 45,687 Records 38,176 3,576 - 41,752 Court 11,127 765 - 11,892 Total policy and administration 529,401 171,870 (39,577) 661,694 General government 10,112,411 856,613 (408,162) 10,560,862 Total investment in general fixed assets $ 14,229,733 $1,539,996 $ (592,465) $ 15,177,264 III I I I 1 61 1 1 1 1 Other Schedules 1 Schedules included in this section are: 1 • Property Tax Transactions and Outstanding Balances 1 • Bond and Bond Interest Transactions 1 • Future Debt Service Requirements of Bancroft Improvement Bonds Future Debt Service Requirements of General Obligation 1 Bonds 1 1 1 1 1 1 1 1 CITY OF TIGARD, OREGON 1 SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES for the fiscal year ended June 30, 2000 1 Property Add Property Taxes Levy as Taxes Receivable Extended Deduct Add Receivable June 30, by Discounts (Deduct) Add Deduct June 30, 1999 Assessor Allowed Adjustments Interest Collections 2000 I 1999 - 2000 $ - $ 7,881,754 $ (193,421) $ (40,793) $ 2,825 $ (7,385,015) $ 265,350 1998 - 1999 302,702 - 180 (42,588) 12,679 (193,509) 79,464 1997 - 1998 76,584 - 5 (1,543) 5,978 (44,074) 36,950 I 1996 - 1997 28,270 - 19 (680) 5,042 (23,349) 9,302 I 1995 -1996 6,804 - (13) 309 1,589 (7,215) 1,474 1 1994 -1995 1,569 - (1) 22 377 (1,232) 735 1993 - 1994 & Prior 2,555 - (2) (87) 346 (790) 2,022 1 $ 418,484 $ 7,881,754 $ (193,233) $ (85,360) $ 28,836 $ (7,655,184) $ 395,297 Property Taxes Cash Receivable Distributed as follows: Collections June 30, 2000 General Fund: I Current $ 7,209,184 $ 336,773 Prior years' levies 173,099 25,135 Total General Fund 7,382,283 361,908 Enterprise Funds: Prior Years' levies 59 39 I Total Enterprise Funds 59 39 Debt Service Funds Current 232,191 27,611 I Prior years' levies 40,575 5,575 Total Debt Service Funds 272,766 33,186 Capital Projects Funds: Prior years' levies 76 164 Total Capital Projects Funds 76 164 I Total $ 7,655,184 $ 395,297 1 1 I . 1 62 1 CITY OF TIGARD, OREGON SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS 1 for the fiscal year ended June 30, 2000 1 I Bond Transactions Interest Transactions I Outstanding Outstanding Original June 30, Matured/ June 30, Bancroft Bonds Issue 1999 Called Paid 2000 Matured Paid I Issued September 1, 1982 $ 184,664 $ 10,000 $ - $ (10,000) $ - $ - $ - Issued August 1, 1991 405,000 65,000 65,000 (65,000) - 3,900 (3,900) I Issued May 1, 1983 660,000 525,000 135,000 (135,000) 390,000 22,165 (22,165) Issued November 30, 1998 1,565,576 1,486,249 129,174 (129,174) 1,357,075 64,062 (64,062) 1 $ 2,086,249 $ 329,174 $ (339,174) $1,747,075 $ 90,127 $(90,127) General Obliqation Bonds 1 Issued May 1, 1993 $ 6,935,000 $ 905,000 $ 210,000 $ (210,000) $ 695,000 $ 41,030 (41,030) 1 1 1 1 1 1 1 1 1 63 1 CITY OF TIGARD, OREGON 1 SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF BANCROFT IMPROVEMENT BONDS June 30, 2000 1 Issued Issued 111 May 1, 1993 December 1, 1998 Year of Total Requirements 4.10 % to 5.00% 4.39% Maturity Principal Interest Principal Interest Principal Interest 2000 -2001 $ 134,907 $ 77,171 $ - $ 19,060 $ 134,907 $ 58,111 2001 -2002 140,894 71,184 - 19,060 140,894 52,124 2002 -2003 257,147 62,401 110,000 16,530 147,147 45,871 2003-2004 153,678 53,340 14,000 153,678 39,340 1 1 2004 -2005 160,499 46,519 - 14,000 160,499 32,519 2005 -2006 447,622 32,396 280,000 7,000 167,622 25,396 1 2006 -2007 175,061 17,957 - - 175,061 17,957 2007 -2008 182,831 10,187 - - 182,831 10,187 1 2008 -2009 94,436 2,073 - - 94,436 2,073 Totals $ 1,747,075 $ 373,228 $ 390,000 $ 89,650 $ 1,357,075 $ 283,578 1 1 1 1 1 1 1 1 1 64 1 CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF GENERAL OBLIGATION BONDS June 30, 2000 1 1 Series 1993A Issued: May 1,1993 Year of 3.00% to 4.75% Maturity Principal Interest 2001 -2002 $ 225,000 $ 26,994 2002 -2003 225,000 16,813 2003 -2004 245,000 5,819 $ 695,000 $ 49,626 1 1 1 1 1 1 1 1 65 1 1 1 1 1 1 11 1 11 06 1 1 Vie° _ mamma 1 City of Tigard, Oregon 1 1 1 1 1 1 1 1 1 1 1 1 STATISTICAL 1 SECTION 1 1 1 1 1 1 1 1 1 1 1 1 1 I 1 1 1 CITY OF TIGARD, OREGON GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION - I BUDGETARY BASIS for the last ten fiscal years 1 I City -Wide Support Public Works Functions, Fiscal and Capital I Year Ended Community Community Policy and Projects Debt June 30 Services Development Administration and Other Service Total I 1991 $ 4,347,338 $ 2,558,534 $ 281,180 $ 7,216,338 $ 4,157,959 $ 18,561,349 1992 4,520,483 2,466,774 1,157,205 4,001,522 2,643,174 14,789,158 I 1993 4,755,049 2,459,618 1,223,269 2,449,617 2,652,428 13,539,981 1994 5,088,712 2,641,694 1,317,972 3,604,930 5,647,732 18,301,040 1 1995 5,656,128 2,745,236 1,332,630 2,148,786 2,388,061 14,270,841 1996 6,073,218 3,230,316 1,482,194 2,895,552 5,152,515 18,833,795 1 1997 6,537,097 3,507,919 1,699,813 3,182,818 2,117,957 17,045,604 1998 6,973,417 4,072,109 1,914,207 5,084,190 2,171,542 20,215,465 1999 7,778,333 4,476,564 2,100,829 4,349,185 6,850,522 25,555,433 2000 8,322,224 4,738,142 2,287,819 3,902,719 2,699,338 21,950,242 1 1 1 1 1 1 66 I CITY OF TIGARD, OREGON 1 GENERAL GOVERNMENTAL REVENUES BY SOURCES - BUDGETARY BASIS 1 for the last ten fiscal years Fiscal Licenses Inter- Charges I Year Ended Franchise and governmental For Fines and Miscellaneous June 30 Taxes Fees Permits Revenues Services Forfeitures Revenues * Total 1991 $ 4,160,790 $ 1,179,833 $ 1,206,920 $ 2,379,431 $ 79,370 $ 259,497 $ 1,627,675 $ 10,893,516 1992 4,963,329 1,287,794 1,659,542 3,050,675 102,081 322,618 1,464,811 12,850,850 I 1993 5,493,516 1,320,686 1,682,341 3,073,728 301,569 316,947 1,599,480 13,788,267 1994 5,894,241 1,447,668 2,554,752 3,105,356 393,349 307,982 1,576,679 15,280,027 1995 6,107,116 1,592,707 2,344,386 3,350,614 418,965 325,970 851,444 14,991,202 1 1996 5,860,948 1,669,784 2,555,271 3,717,655 357,571 304,246 1,534,205 15,999,680 1997 7,699,435 1,736,933 3,746,604 3,834,114 798,129 397,637 1,632,664 19,845,516 1998 8,255,173 1,755,719 2,823,031 4,085,789 375,890 378,145 1,522,273 19,196,020 1999 8,617,809 1,970,740 2,780,779 4,715,386 449,997 390,967 4,082,654 23,008,332 2000 7,876,219 1,960,768 2,271,148 4,658,795 675,323 371,594 3,404,178 21,218,025 * Includes special assessments collections and private donations. Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types 1 1 1 1 1 1 1 1 1 67 t CITY OF TIGARD, OREGON • PROPERTY TAX LEVIES AND COLLECTIONS I for the last ten fiscal years 1 I Percent Percent Total Tax Delinquent Fiscal Total Percent Delinquent Total Collections Outstanding Taxes Year Ended Tax Current Tax of Levy Tax Tax To Tax Delinquent To Tax I June 30 Levy Collections Collections Collections Collections Levy Taxes Levy 1991 $ 4,266,155 3,918,774 91.86% $ 224,988 $ 4,143,762 97.13% $ 372,918 8.74% 1992 5,148,022 4,717,610 91.64% 228,047 4,945,657 96.07% 408,691 7.94% 1993 5,548,159 5,213,266 93.96% 260,368 5,473,634 98.66% 391,447 7.06% I 1994 5,984,204 5,622,050 93.95% 272,191 5,894,241 98.50% 333,198 5.57% 1995 6,212,684 5,864,693 94.40% 242,923 6,107,616 98.31% 285,651 4.60% 1996 5,982,372 5,671,785 94.81% 198,054 5,869,839 98.12% 245,387 4.10% I 1997 7,924,163 7,511,237 94.79% 167,262 7,678,499 96.90% 284,176 3.59% 1998 8,470,116 8,119,848 95.86% 135,325 8,255,173 97.46% 318,590 3.76% I 1999 8,915,821 8,400,875 94.22% 227,801 8,628,676 96.78% 418,484 4.69% 2000 7,881,754 7,385,015 93.70% 270,169 7,655,184 97.13% 395,297 5.02% 1 Taxes are levied as of July 1 each year and are payable in three installments, without interest, on November 15, February 15, and May I 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. 1 11 1 1 1 1 1 , 68 1 CITY OF TIGARD, OREGON 1 MARKET VALUE AND ASSESSED VALUE OF TAXABLE PROPERTY for the last ten fiscal years • 1 1 • Market Value Fiscal Year Public Ended Real Personal Utility Total June 30 Property Property Property Total Assessed Value 1991 $ 1,435,394,724 $ 115,983,044 $ 36,707,073 $ 1,588,084,841 $ 1,588,084,841 1 1992 1,755,342,623 114,457,543 40,526,271 1,910,326,437 1,910,326,437 • 1993 1,820,521,857 139,064,986 50,197,374 2,009,784,217 2,009,784,217 1 1994 1,972,696,888 142,496,210 60,467,981 2,175,661,079 2,175,661,079 1995 2,229,444,147 156,419,813 72,874,589 2,458,738,549 2,458,738,549 1 1996 2,499,277,057 164,967,611 70,968,422 2,735,213,090 2,735,213,090 1997 2,870,072,277 165,084,982 76,231,065 3,111,388,324 3,111,388,324 III 1998 3,122,530,514 205,073,620 97,363,138 3,424,967,272 2,711,669,298 1999 3,277,118,168 214,501,804 109,989,369 3,601,609,341 2,869,660,834 2000 3,592,171,408 225,516,583 120,517,828 3,938,205,819 3,033,029,082 All property is assessed as of July 1. Assessed value, up until June 30, 1997, was defined as market value. A new property tax limitation known as I Measure 50 passed in May 1997 which disconnected assessed value from market value for purposes of distributing property tax levies. Measure 50 reduced assessed value for 1997/98 to the 1995/96 market value less 10% plus new construction. According to the 1998/99 Washington County summary of assessment and tax roll, assessed values for most properties are now about 80% of market value. Source: Washington County Department of Assessment and Taxation. I 1 1 1 1 69 i 1 CITY OF TIGARD, OREGON SPECIAL ASSESSMENT COLLECTIONS 1 for the last ten fiscal years 1 1 Fiscal Year Current Ratio of Total 1 • Ended Assessments Assessments Due (1) Collected (2) Collections Outstanding June 30 to Amount Due Assessments 1991 $ 343,000 $ 279,468 81.48% $ 892,780 I 1992 427,000 288,574 67.58% 3,181,495 1 1993 408,000 688,664 168.79% 2,900,352 1994 193,000 186,036 96.39% 2,380,059 1 1995 208,000 146,548 70.46% 2,250,041 1996 135,000 218,667 161.98% 2,088,745 I 1997 145,000 353,977 244.12% 1,846,910 1 1998 275,000 173,947 63.25% 6,046,590 1999 1,565,576 2,056,305 131.34% 4,613,840 2000 329,174 971,414 295.11% 3,761,444 I (1) This amount is equal to the matured principal on Bancroft improvement bonds. p P 1 (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. I Source: City assessment records 1 1 1 1 70 I 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 Tigard/ Washington Washington Fiscal Metzger Tualatin Beaverton Tualatin County County Year Water School School Tigard Unified Rural Fire Rural Fire Portland Education Other Ended District City of Washington District District Water Sewerage Protection District Community Service Taxing June 30 Combined Tigard County No. 23 -J No. 48 District Agency District No. 2 College District Agencies Total 1991 0.55 2.76 2.94 14.60 15.82 0.11 0.25 2.41 0.91 0.25 0.57 41.17 1992 0.50 2.76 1.41 16.73 13.44 0.09 0.19 1.99 0.81 0.21 0.49 38.62 1993 0.48 2.80 1.42 15.95 14.16 0.08 0.18 1.98 0.90 0.21 0.43 38.59 1994 0.42 2.77 1.36 15.58 13.39 0.08 0.12 1.88 0.87 0.20 0 37.04 1995 0.25 2.51 1.27 13.88 12.41 0.07 0.07 1.76 0.82 0.19 0.38 33.61 y 1996 0.25 2.18 1.52 14.01 12.07 0.06 0.09 1.66 0.79 0.18 0.38 33.19 1 1997 0.23 2.54 1.35 12.85 11.41 0.05 1.52 0.73 0.30 0.83 31.81 1998 0.27 3.12 2.60 6.60 6.16 1.54 0.37 0.78 21.44 1999 0.28 3.10 2.57 6.65 6.17 1.53 1.15 0.35 0.81 22.61 2000 0.21 2.59 2.54 6.31 6.19 1.56 1.29 0.36 0.70 21.75 Tax rates, expressed in dollars and cents per $1.000 of assessed value of taxable property in each taxing district, are required by the State Constitution to be uniform throughout the district. 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. All operating levies were converted to a permanent rate by the passage of measure 50 in 1997. Permanent rates can not be changed. Prior to Measure 50, rates were dependent on both the levy and assessed value. 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 2000 ranged from $13.63/$1,000 to $14.03/$1,000. Source: Washington County Department of Assessment and Taxation. Mar OM MN IMO In INN IN MI NMI MIN MR 1 CITY OF TIGARD, OREGON RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND I NET BONDED DEBT PER CAPITA for the last ten fiscal years 1 1 Gross General Ratio of Obligation Less Debt Net Bonded I Fiscal Year Bonded Service Net Debt to Net Bonded Ended Assessed Debt Out- Monies Bonded Assessed Debt Per June 30 Population Value Standing Available Debt Value Capita 1991 29,652 $ 1,588,084,841 $ 13,304,000 ** $ 345,050 $ 12,958,950 0.82% $ 437.03 1992 30,835 1,910,326,437 12,595,000 ** 620,597 11,974,403 0.63% 388.34 I 1993 31,271 2,009,784,217 11,671,000 ** 830,080 10,840,920 0.54% 346.68 1994 33,802 2,175,661,079 9,878,000 ** 611,481 9,266,519 0.43% 274.14 1 1995 33,744 2,458,738,549 8,385,000 ** 422,107 7,962,893 0.32% 235.98 1996 35,021 2,735,213,090 6,795,000 ** 387,102 6,407,898 0.23% 182.97 t 1997 35,925 3,111,388,324 5,125,000 ** 4,514,054 6,407,898 0.21% 178.37 1998 36,680 2,711,669,298 3,360,000 ** 206,712 3,153,288 0.12% 85.97 t 1999 37,200 2,869,660,834 2,991,249 ** 792,529 2,198,720 0.08% 59.11 2000 39,672 3,033,029,082 2,442,075 ** 1,492,889 949,186 0.03% 23.93 1 1 ** Excludes bond anticipation notes payable. Sources: City budget documents, Comprehensive Annual Financial Reports of the City and Washington County Department of Assessment and Taxation. 1 1 1 1 1 72 I CITY OF TIGARD, OREGON COMPUTATION OF LEGAL DEBT MARGIN June 30, 2000 1 ORS 287.004 1 0 provides a debt limit of 3 /o of the true cash value of all taxable property within the city boundaries: True cash value (1999 -2000) $ 3,938,205,819 • General obligation debt limit X 3% 118,146,175 1 Gross bonded debt $ 2,442,075 Excludable debt - Bancroft improvement bonds (1,747,075) 1 Debt subject to limitation 695,000 Legal debt margin amount available for future indebtedness $ 117,451,175 1 Source: Washington County Department of Assessment and Taxation 1 1 1 1 1 1 1 73 1 CITY OF TIGARD, OREGON COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT 1 June 30, 2000 I Percent Amount Applicable Applicable Net Debt Inside City Inside City 1 Jurisdiction Outstanding of Tigard of Tigard Tigard /Tualatin School District #23 -J $ 31,877,958 51.3250% $ 16,361,362 1 Tri- Metropolitan Transportation District 5,839,350 3.7133% 216,833 Port of Portland 571,120 3.3967% 19,399 I Metro 7,314,492 3.7447% 273,906 . 1 Beaverton School District #48 7,892,063 3.7500% 295,952 Portland Community College 2,253,690 4.8494% 109,290 1 Washington County 8,441,116 11.0987% 936,854 I Unified Sewerage Agency 82,715 11.9015% 9,844 Tualatin Valley Fire & Rescue District 1,305,877 13.5254% 176,625 1 Tualatin Valley Water (Metzger Bond) 1,352,513 60.9240% 824,005 City of Tigard 2,442,075 100.0000% 2,442,075 I $ 69,372,969 $ 21,666,146 1 Source: Oregon State Treasury Debt Management Division 1 1 1 1 1 1 74 i CITY OF TIGARD, OREGON 1 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR LONG -TERM DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES for the last ten fiscal years I 1 Total Percent of Debt Fiscal Year Total General Service to Ended Debt Governmental Total General June 30 Principal Interest Service Expenditures Expenditures 1 1991 $ 3,034,760 $ 1,123,199 $ 4,157,959 $ 14,349,504 28.98% 1992 1,664,000 979,174 2,643,174 18,561,349 14.24% 1 1993 1,939,000 713,428 2,652,428 14,789,158 17.93% 1 1994 4,742,523 905,209 5,647,732 13,539,981 41.71% 1995 1,828,000 560,061 2,388,061 18,301,040 13.05% 1 1996 4,385,000 767,516 5,152,516 14,270,841 36.11% 1997 5,755,000 447,957 6,202,957 21,130,604 29.36% I 1998 6,390,000 406,542 6,796,542 20,215,465 33.62% 1 1999 6,190,576 659,946 6,850,522 25,555,433 26.81% 2000 2,487,352 211,986 2,699,338 21,950,242 12.30% 1 1 Source: Comprehensive Annual Financial Reports of the City. (1) Includes bond anticipation notes principal and interest. I (2) Includes bond anticipation notes interest and certificates of participation principal and interest 1 1 1 I 1 75 1 1 CITY OF TIGARD, OREGON PROPERTY VALUE AND CONSTRUCTION I for the last ten fiscal years 1 t Commercial Residential Fiscal Year Construction (1) Construction (1) I Ended Number of Number of June 30 Permits Value Permits • Value I 1991 62 $ 27,985,499 268 $ 28,160,790 1992 37 31,498,832 218 24,259,243 1 1993 28 25,685,703 408 43,687,254 1994 40 63,946,411 683 62,765,587 1 1995 24 31,873,570 452 63,699,561 I 1996 37 34,644,201 496 65,935,382 1997 22 44,227,644 355 59,581,425 1998 28 45,381,833 147 30,720,243 1999 18 26,772,534 229 37,876,657 1 2000 22 55,244,410 198 (2) 37,202,497 1 (1) From City of Tigard Building Department. Multi- family permits are included in the number of permits issued for residential construction. I (2) Residential totals for permits and value include amounts from Urban /Washington County as well as City of Tigard 1 1 1 1 1 76 1 CITY OF TIGARD, OREGON 1 PRINCIPAL TAXPAYERS June 30, 2000 1 1 Percentage of Total Assessed Assessed Taxpayer Type of Business Valuation Valuation Pacific Realty Associates Oregon Business Park $ 113,111,340 3.73% I Washington Square, Inc. Washington Square Shopping Mali 83,555,010 2.75% Knickerbocker Property, Inc XXIV Lincoln Center Office Park 60,712,100 2.00% GTE Northwest Inc. Utility - Communications 46,030,230 1.52% Spieker Properties Park 217 retail office center and Nelson Business Park 26,977,160 0.89% Portland General Electric Utility - Power Operations 19,505,400 0.64% Portland Hotel Associates Embassy Suites Hotel 19,459,810 0.64% Robinson Trust Scholls Business center 17,473,240 0.58% The May Department Stores Co. Meier & Frank Department Store 16,293,210 0.54% 1 Sprint Spectrum Utility - Communications 16,200,080 0.53% Total Principal Taxpayers 419,317,580 13.83% 1 All Other Taxpayers 2,613,711,502 86.17% Total $ 3,033,029,082 100.00% 1 Source: City of Tigard Planning Department, estimated from Washington County Assessment & Taxation records. 1 1 1 ry 1 1 II, 77 1 1 CITY OF TIGARD, OREGON DEMOGRAPHICS STATISTICS III for the last ten fiscal years 1 Assessed (2) Value Unemployment I of Taxable (3) Rate Fiscal Year (1) Property School Portland Ended June 30 Population Per Capita Enrollment Metro Area 1 1991 29,652 $ 53,557 7,940 4.90% 1992 30,835 61,953 8,795 6.20% 1 1993 31,271 64,270 8,965 5.80% 1 1994 33,802 64,365 9,427 4.80% 1995 33,744 72,864 9,644 4.70% I 1996 35,021 78,102 10,579 4.20% 1997 35,925 86,608 10,829 3.90% I 1998 36,680 73,928 11,071 4.30% 1 1999 37,200 74,537 11,080 4.50% 2000 39,672 76,453 11,145 4.10% 1 I Sources of Information: (1) State of Oregon, Department of Administrative Services 1 (2) U.S. Bureau of Labor Statistics (3) Tigard /Tualatin School District #23 -J - City student totals not available 1 1 1 1 78 i CITY OF TIGARD, OREGON MISCELLANEOUS STATISTICAL DATA TA June 30, 2000 1 Date of Incorporation 1961 Form of government Council - Mayor - Manager Area (Square Miles - Incorporated Area) 10.92 Miles of streets 129.0 1 Population 39,672 Drinking Water: Water Mains 200 Miles Reservoirs 13 1 • Police protection: Number of stations 1 Number of sworn police officers 53 1 Education: Attendance Centers 15 Number of teachers 641 Number of students 11,145 Sanitary sewers 776,160 ft. 1 Storm lines 496,320 ft Building Permits issued (1997 -98) 220 Recreation and culture: Number of parks 11, totaling 160.8 acres Greenways 132.7 acres Number of libraries 1 Number of volumes (estimated) 109,579 Employees: Classified service (union) 198 Unclassified (non- union) 65 Information obtained from the various departments of the City of Tigard, Oregon, and Tigard /Tualatin School District #23 -J - City student totals not available 1 79 i 1 I AUDIT COMMENTS AND DISCLOSURE REQUIRED BY STATE REGULATIONS 1 1 1 1 1 1 1 1 1 1 1 1 1 / ma AL 1 1 1 PAULY ROGERS AND CO., P.C. w �= ® CERTIFIED PUBLIC ACCOUNTANTS I • 12700 SW 72ND AVENUE • TIGARD, OREGON 97223 • (503) 620 -2632 • FAX (503) 684 -7523 October 17, 2000 1 AUDITORS' COMMENTS AND DISCLOSURES Oregon Administrative Rules 162 -10 -000 through 162 -16 -000, the Minimum Standards 9 g for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, comments and disclosures required in audit reports. Certain required disclosures, statements and schedules are set forth in preceding pages of this report. Additional required comments and disclosures related to our audit of such statements and schedules are set forth as follows: 1 REPORT ON INTERNAL ACCOUNTING CONTROL We have audited the general purpose financial statements of the City of Tigard, Oregon, as of and for the year ended June 30, 2000, and have issued our report thereon dated October 17, 2000. The management of the City of Tigard, Oregon, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against Toss from unauthorized use or disposition and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become �. inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the general purpose financial statements of the City of Tigard, Oregon, for the year ended June 30, 2000, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of 1 one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors and irregularities in amounts that would be 1 80 AUDITORS' COMMENTS AND DISCLOSURES (CONTINUED) 1 material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended for the information of management, the Mayor, City Council, p 9 � Y � Y and the State of Oregon, Secretary of State, Audits Division. However, this report is a matter of public record and its distribution is not limited. ! ACCOUNTING RECORDS The City's accounting records were adequate for audit. BUDGET TRANSACTIONS Expenditures were within the authorized appropriation levels for the year ended June 30, 2000. However, the SW Dartmouth Local Improvement District/CIP Fund had a deficit fund balance of $5,145 at June 30, 2000. 1999 -2000 and 2000 -2001 BUDGETS The budgets adopted by the City for the current and ensuing fiscal year were reviewed during the audit. Budget preparation and adoption procedures followed by the City appeared to be in compliance with the Oregon Local Budget Law. STATE HIGHWAY FUNDS 1 The City's compliance with requirements of Article IX, Section 3a of the Oregon Constitution and ORS 294 and 373 was reviewed and the City appears to have complied with the restrictions on the use of revenue from taxes on motor vehicle use and fuel. 1 COLLATERAL SECURING BANK DEPOSITS Collateral pledged by the depositories appears to have been adequate to meet requirements of Oregon Law at all times during the year. Each depository is required by ORS Chapter 295 to maintain securities having a value of not Tess than 25% of the face amount of the collateral certificate issued by the pool manager, for funds deposited in the depository in excess of the amounts insured by the Federal Deposit Insurance Corporation. Deposits in the State Local Government Investment Pool are not required to be collateralized. INVESTMENTS 1 The City's investments for the year ending June 30, 2000 were reviewed and appeared to have been in compliance with the legal requirements pertaining to the investment of public funds contained in ORS 294.035. L 81 1 1 AUDITORS' COMMENTS AND DISCLOSURES (CONTINUED) PUBLIC CONTRACTS AND PURCHASING The City's procedures for awarding public contracts were reviewed and appeared to have been in compliance with ORS Chapter 279. INSURANCE AND FIDELITY BONDS Details concerning insurance and fidelity bond coverage were reviewed during the audit. The coverage provided appears to have met legal requirements. We do not have the professional expertise to state whether the insurance coverage is adequate. STATUTORY BONDED DEBT LIMITATION The City's bonded debt outstanding was well within the limitation established by Oregon Law. OUTSTANDING WARRANTS The City did not have y a e any outstanding endorsed warrants at June 30, 2000. 1 PROGRAMS FUNDED FROM OUTSIDE SOURCES We reviewed and tested, to the extent we considered necessary in the circumstances, transactions and reports relative to federal and state grant programs. The City appeared to have appropriate procedures for making expenditures on behalf of, and reporting for, such programs. 111 // A fri l -ze4 1 1 1 i 1 82 1 1 1 1 1 1 �iri� �!11P9 41800 S10.1141 City of Tigard, Oregon 1 `1 1 1 1 1 1 1