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CAFR Report - 1997-1998 Nw 1 CITY OF TIGARD 1 OREGON i City of Tigard, Oregon 1 1 1 1 1 1 1 1 1 Comprehensive Annual Financial Report ' For The Fiscal Year Ended June 30, 1998 1 i i CITY OF TIGARD, OREGON i COMPREHENSIVE ANNUAL FINANCIAL REPORT for the fiscal year ended June 30, 1998 Prepared by: City of Tigard - Finance Department City of Tigard, Oregon ' Table of Contents Page INTRODUCTORY SECTION: ' Letter of Transmittal i Mayor and City Council Members x Organizational Chart A Certificate of Achievement for Excellence in Financial Reporting xii 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 e Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Enterprise Funds 5 , Combined Statement of Cash Flows - All Enterprise Funds 6 Statement of Plan Net Assets - Pension Trust Funds 7 Statement of Changes in Plan Net Assets - Pension Trust Funds 8 ' Notes to General Purpose Financial Statements 9 SUPPLEMENTARY DATA (Combining and Individual Fund and Account Group Statements and Other Financial Schedules): General Fund: Schedule of Revenues and Expenditures - Budget and Actual 30 Special Revenue Funds: Combining Balance Sheet 31 Combining Statement of Revenues, Expenditures and Changes ' In Fund Balance 32 Schedule of Revenues and Expenditures - Budget and Actual: 'Forfeitures From Criminal Activity Fund 33 State Tax Street Fund 34 Parks SDC Fund 35 County Gas Tax Fund 36 , 1 City of Tigard, Oregon Table of Contents Page FINANCIAL SECTION, Continued: SUPPLEMENTARY DATA (Combining and Individual Fund and ' Account Group Statements and Other Financial Schedules), Continued: Special Revenue Funds, Continued: r Schedule of Revenues and Expenditures - Budget and Actual, Continued: Traffic Impact Fund 37 Electrical Inspection Fund 38 Underground Utility Fund 39 Worker's Compensation Fund 40 t Building Fund 41 Urban Services - TIF Fund 42 Urban Services Fund 43 Tree Replacement Fund 44 Debt Service Funds: Combining Balance Sheet 45 Combining Statement of Revenues, Expenditures and Changes ' In Fund Balance 46 Schedule of Revenues and Expenditures - Budget and Actual: General Obligation Bond Debt Service Fund 47 Bancroft Bond Debt Service Fund 48 Capital Projects Funds: Combining Balance Sheet 49 Combining Statement of Revenues, Expenditures and Changes In Fund Balance 50 Schedule of Revenues and Expenditures - Budget and Actual: Local Improvement Capital Projects Fund 51 Metro Greenspaces Fund 52 Park Levy Capital Improvement Fund 53 Facility Fund 54 1 Enterprise Funds: Combining Balance Sheet 55 Combining Statement of Revenues, Expenditures and Changes ' In Retained Earnings 56 Combining Statement of Cash Flows 57 City of Tigard, Oregon Table of Contents Page ' FINANCIAL SECTION, Continued: SUPPLEMENTARY DATA (Combining and Individual Fund and Account Group Statements and Other Financial Schedules), Continued: r Enterprise Funds, Continued: Schedule of Revenues and Expenditures - Budget and Actual: Sewer Fund 58 Storm Drainage Fund 59 Water Quality & Quantity Fund 60 Water General Fund 61 Water Systems Development Fund 62 Water Capital Projects Fund 63 Fiduciary Funds: Pension Trust Funds: Combining Statement of Plan Net Assets 64 Combining Statement of Changes in Plan Net Assets 65 General Fixed Assets Account Group: , Schedule of General Fixed Assets - By Sources 66 Schedule of General Fixed Assets - By Function and Activity 67 Schedule of Changes in General Fixed Assets - By Function and Activity 68 Other Schedules: Schedule of Property Tax Transactions and Outstanding Balances 69 Schedule of Bond and Bond Interest Transactions 70 Schedule of Future Debt Service Requirements of Bancroft Improvement Bonds 71 Schedule of Future Debt Service Requirements of General Obligation Bonds 72 ' City of Tigard, Oregon Table of Contents Page STATISTICAL SECTION: General Governmental Expenditures by Function - Budgetary Basis - for the last ten fiscal years 73 General Governmental Revenues by Sources - Budgetary Basis - for the last ten fiscal years 74 Property Tax Levies and Collections - for the last ten fiscal years 75 ' Market Value and Assessed Value of Taxable Property - for the last ten fiscal years 76 Special Assessment Collections - for the last ten fiscal years 77 Property Tax Rates - Direct and Overlapping Governments - for the last ten fiscal years 78 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded ' Debt Per Capita - for the last ten fiscal years 79 Computation of Legal Debt Margin - June 30, 1998 80 Computation of Overlapping General Obligation Debt - June 30, 1998 81 Ratio of Annual Debt Service Expenditures for Long-term Debt to Total General Governmental Expenditures - for the last ten fiscal years 82 Property Value and Construction - for the last ten fiscal years 83 Principal Taxpayers - June 30, 1998 84 Demographic Statistics - for the last ten fiscal years 85 Miscellaneous Statistical Data - June 30, 1998 86 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS: Auditors' Comments and Disclosures 87 ~ INTRODUCTORY ' SECTION CITY OF TIGARD December 2, 1998 CITY OF TIGARD Honorable Mayor and Members of the City Council OREGON City of Tigard, Oregon Submitted herewith is the Comprehensive Annual Financial Report of the City of Tigard (the City) for the fiscal year ended June 30, 1998. This report was prepared by the City's Finance Department. Responsibility for both the accuracy of the presented data and the completeness and fairness of presentation, including all disclosures, rests with the City. We believe the data, as presented, are accurate in all material respects and are presented in a manner designed to fairly set forth the financial position and results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain the maximum understanding of the City's financial activities have been included. The Comprehensive Annual Financial Report is presented in four sections: introductory, financial, statistical and audit comments and disclosures. The introductory section includes this transmittal letter, the City's organization chart and a list of principal officials. I The financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The audit comments and disclosures section contains audit comments and disclosures required by State regulations. ' This report includes all funds and account groups of the City under the direction of the City Council. The City provides a full range of services including police protection; sewer, storm drainage, streets and parks repair and maintenance; community planning and building inspection; and infrastructure improvements. Tigard/Tualatin School District, Tualatin Valley Water District, and the Tualatin Valley Fire and Rescue District 1 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. Economic Condition and Outlook t 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 37,400, is the eleventh largest City in the State. 13125 SW Hall Blvd., Tigard, OR 97223 (503) 639-4171 TDD (503) 684-2772 Building activity in Tigard has been very strong for many years. Over the past four ' years, new construction values have averaged $118 million per year. The last fiscal year, however, has seen a marked decrease in building activity in the City. Total value added through new construction for 1997/98 was $76 million. New residential single family units typically account for about 60% of new construction values however due to a reduction in the number of single family units constructed in ' 1997/98, the proportion has dropped to 40%. Single family units have averaged 337 over the past several years, however only 142 permits were issued in 1997/98. In addition, nearly 1,200 units of multifamily housing have been built over the past four ' years, while none were built in 1997/98. Commercial development has remained strong, with 1997/98 being one of the busiest commercial construction years in recent history. Tigard has averaged $42.6 million in commercial construction value over the past four years. 1997/98 commercial activity reached $45.3 million. Tigard's proximity to the Portland metropolitan area provides its citizens with many diverse employment opportunities. Over 52,000 jobs are located within a five minute drive from Tigard. The unemployment rate in the Portland metropolitan area averaged just under 3.9% during the year. , Tigard's assessed value for 1996/97 was $3,111,388,324. Up until June 30, 1997, assessed value was required to be market value. A new property tax limitation known as Measure 50, which disconnected assessed value from market value for purposes of distributing property tax levies, passed in May 1997. Measure 50 reduced assessed ' value for 1997/98 to the 1995/96 market value, less 10%, plus the value of new construction. According to the 1997/98 Washington County summary of assessment and tax roll, assessed values for most properties are now about 78% of market value. ' Tigard's real property market value for 1997/98 was $3,424,967,272, which represents a 10% increase over the previous year. Tigard's assessed value, however, was reduced , from the 1996/97 level to $2,711,669,298. This reduction resulted from the implementation of Measure 50 and the addition of new construction value since 1995/96. Future growth in assessed value is limited by Measure 50 to 3% per year plus new construction. Tigard's taxing authority is limited to it's permanent rate of $2.51 per thousand dollars of assessed value. ' Due to the effects of Measure 50 on the property tax system in Oregon, Tigard's increase in property tax revenue each year is limited to 3% plus the revenue generated , from the application of the permanent rate to new construction values. For the first time, new construction produces additional property tax dollars. I I In spite of the decline in residential construction activity and the reductions in future tax revenue brought on by Measure 50, the economic outlook for the City remains good. The City has continued to experience growth in most areas including the local economy, population, fair market value and commercial development activity. Major Initiatives 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 next five-year period. Along with the services to be provided, the plan calls for a certain level of property taxation to support those services. Before each five-year plan has been implemented, voters have had the opportunity to decide whether to support the needed level of taxes. Tigard voters have supported four such property tax increase requests since 1980. The ' most recent request was placed on the November 1994 ballot and was passed by Tigard voters. The measure called for a $1,700,000 increase in the tax base. The new levy authority was levied in 1996/97. The five-year plan, which covers the operation of the City from 1996/97 through 2000/01 called for the addition of eighteen police positions over the life of the plan. 1 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. Measure 50 fundamentally altered the property tax system in Oregon in such a way that the tax base system of dollar levy authority was converted to a rate system. No longer can the City go to voters for increased taxing authority on a permanent basis. Local option tax increases are available, but can only last for five years. Tigard will be embarking on a financial analysis over the next several years to determine what it's long term revenue strategy should be in light of these significant changes in the property tax landscape. ■ The Pacific Corporate Center development continues to progress. This development is the result of a Local Improvement District that was used to install streets and other infrastructure. Since the completion of the improvements in 1990, over 300,000 square feet of prime office space has been built. Recently added to the development is a Marriot Hotel with 110 guest rooms. Other additions include restaurants, banks and additional new office and retail space. The Dartmouth Local Improvement District project was completed in the summer of 1994. The road improvement provided a connection between Highway 99W and ' Interstate 5 in an area referred to as the Tigard Triangle. This opened up hundreds of acres of raw land for commercial development. iii Cub Foods and Costco have opened for business with over 220,000 square feet of retail space. An additional 23,000 square feet of retail space was added with the opening of an Office Max office supply discount store. A third large project known as the Tri County center has been approved and will be under construction soon. This project will add over 330,000 square feet of retail space. In May 1998, the City Council passed the final ordinance to spread the final assessable cost of the Dartmouth Local Improvement District of $4,576,837. Early in July 1998, ' payments were received in the amount of $1,063,584, contracts to pay in installments were received in the amount of $1,565,576 and the remaining balance is included in a lawsuit filed by the property owners in Washington County Circuit Court. Because ' construction financing matures on December 1, 1998, bonds will be sold to fund the contracts and the proceeds together with the cash payments will be used to retire the ' interim financing. The balance will be rolled over into eighteen month notes in anticipation of a settlement on the remaining assessments in the near future. From a development perspective, both of these Local Improvement Districts have been very successful in attracting high value commercial development. It is estimated that the total value at build out from both areas will exceed $40,000,000. The costs of the improvements which have been or will be assessed to the benefiting property owners is just under $6,500,000. During 1995/96, discussions began on the possible expansion of Cook Park, the City's ' major recreational facility, which includes ball fields, playgrounds, boating facilities, and natural areas. The expansion of the park has involved the acquisition of additional land ' adjacent to the park, and the planned development of additional soccer, baseball and football fields, gazebo, along with restroom facilities and parking. The project is currently envisioned as a cooperative effort between the City and various sports associations. A contract for design of the future park facilities has been awarded. The City of Tigard finished 1997/98 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 ' timing of this levy, it was recognized by Measure 50 and included in the permanent rate calculation. Ending fund balances for most funds remain strong. Outstanding debt is ' decreasing. Assessed value continues to increase and commercial development activity remains 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. iv ' Financial Information 1 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, 1 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 r 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. Budgeting Controls In addition, the City maintains budgetary controls, the objective of which is to ensure compliance with legal provisions 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. General Governmental Functions The revenues for general governmental functions (all governmental funds) on a generally accepted accounting principles basis totaled $19,196,019 in fiscal year 1998. I The 3.78% decrease from fiscal year 1997 resulted primarily from a decrease in charges for services and licenses and permits, of which both relate to the decrease in building activity during the fiscal year. Revenues from various sources and changes from last year are shown below: Increase/ 1 Percent (Decrease) Percent of from Fiscal Increase/ Functions Amount Total Year 1997 (Decrease) Taxes $ 8,255,173 43.00% $ 555,740 6.73% Franchise fees 1,755,719 9.15% 18,786 1.07% Special assessments 173,947 0.91% (180,030) -(103.50)% Licenses and permits 2,823,031 14.71% (959,053) -(33.97)% Intergovernmental revenues 4,085,789 21.28% 251,675 6.16% Charges for services 375,890 1.96% (422,239) -(112.33)% Fines and forfeitures 378,145 1.97% (19,492) -(5.15)% Miscellaneous revenues 1,348,326 7.02% 29,255 2.17% Total $ 19,196,020 100.00% $ (725,358) -3.78% v Property tax revenue increased over last year due to an increased tax base in 1994 that was first levied in 1996/97. Because of the timing of this levy, it was recognized by ' Measure 50 and included in the permanent rate calculation. Also, new construction added to the tax base, under Measure 50, increased property tax revenue. Intergovernmental revenues have also increased due to growth in population and growth , in library circulation. Licenses and permits revenues have decreased due to a reduction in building permit activity. , The following schedule presents a summary of program expenditures for all governmental funds including debt service for the fiscal year ended June 30, 1998, and. , the changes from last year: Increase Percent (Decrease) Percent ' of from Fiscal Increase Functions Amount Total Year 1997 (Decrease) Community services $ 6,973,417 37.26% $ 436,320 6.26% Development services 4,072,109 21.76% 564,191 13.86% , Policy and administration 1,914,207 10.23% 214,394 11.20% City-wide support function. 306,984 1.64% 61,327 19.98% Capital improvements 3,277,207 17.51% (1,159,955) -(35.39%) ' Debt service 2,171,542 11.60% 53,585 2.47% Total $ 18,715,466 100.00% $ 169,862 0.91% ' Total expenditures increased .91% from the previous year. The decrease in Capital ' improvements resulted from the Dolan settlement of $1.5 million dollars that was recorded in fiscal year 1997 and paid in fiscal year 1998. Other capital projects vary from year to year depending on weather and bid schedules. ' Fund Balances Total governmental fund balances of the City were $12,187,497 at June 30, 1998, consisting of $5,627,911 in the General Fund, $6,125,453 in the Special Revenue ' Funds, $206,711 in the Debt Service Funds, and $227,422 in the Capital Projects Funds. Enterprise Operations 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 within the City. The City also maintains the storm sewer system throughout the City, and-charges a monthly surface water fee at a rate set by the Regional Surface Water Management Agency, a regional entity affiliated with USA. Vi Sewer operating revenues derived primarily from service charges amounted to ' $1,392,163. Operating expenses totaled $943,561 resulting in net income of $732,781 after nonoperating interest revenues totaling $284,179. Storm drainage operating revenues amounted to $1,347,382. Storm drainage operating expenses totaled $867,236 resulting in net income of $572,098 after nonoperating ' interest revenues totaling $91,952. Water operating revenues derived from user charges amounted to $3,907,683. ' Operating expenses totaled $4,407,605 resulting in net income of $96,091 after nonoperating interest revenues totaling $596,012. ' Pension Trust Funds The City provides a retirement plan for each employee group. Non-police personnel, 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 Employes 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. The deferred compensation plan is accounted for in an agency fund. Cash Management Temporarily idle cash during the year was invested in accordance with the investment policy in certificates of deposit, banker's acceptances, commercial paper, U.S. Treasury Agencies and Notes, and the State of Oregon Local Government Investment Pool, as approved by the City Council. Pension trust funds are invested by the agents with which 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 1998 1997 General Fund $ 335,682 $ 266,232 Special Revenue Funds 315,489 228,601 Capital Projects Funds 51,745 102,329 Debt Service Funds 58,179 52,642 Enterprise Funds 972,143 838,512 Pension Trust Fund 855,370 592,200 $ 2,588,608 $ 2,080,516 t vii 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. 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 i At June 30, 1998, the City has the following debt issues outstanding: General obligation bonds $ 2,475,000 Bancroft improvement bonds 885,000 , Bond anticipation notes 4,625,000 $ 7,985,000 , 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 $102,749,018 at June 30, 1998. The City's debt subject to this limit was $2,475,000. Bancroft Bonds and bond anticipation notes are not subject to the limitation. Therefore, $100,274,018 is ' available for future indebtedness. The City has an Al bond rating from Moody's Investment Services on its general obligation bonds. 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 Minimum Standards for Audits of Oregon Municipal Corporations as prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy. The City is in full compliance with the aforementioned requirements, and the independent auditor's opinion has been included in this report. Viii 1 Awards For the last fifteen 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 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 our 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. In addition, the City also received the GFOA's Award for Distinguished Budget 1 Presentation for its last nine 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. 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, preparation of this report would not have been possible. 1 Sincerely, William A. Monahan Wayne Lowry City Manager Director of Finance 1 ix 1 1 1 i 1 1 1 1 CITY OF TIGARD ' ' City of Tigard, Oregon MAYOR AND COUNCIL MEMBERS AS OF JUNE 30, 1998 ' Name Term Expires Mayor James Nicoli December 31, 1998 10594 SW Windsor Ct. Tigard, OR 97223 ' Councilor Paul Hunt December 31, 2000 10320 SW Century Oak Drive ' Tigard, OR 97224 Councilor Bob Rohlf December 31, 1998 12430 SW North Dakota Tigard, OR 97223 Councilor Brian Moore December 31, 2000 9835 SW Kimberly Drive Tigard, OR 97224 Councilor Ken Scheckla December 31, 1998 10890 SW Fairhaven Way Tigard, OR 97223 William A. Monahan, City Manager Wayne Lowry, Director of Finance Cyndi A. Turner, Financial Operations Manager ' LEGAL COUNSEL O'Donnell, Ramis, Crew, Corrigan & Bachrach 1727 NW Hoyt Street Portland, OR 97209 i X 1 City of Tigard, Oregon , Organization Chart Citizens , Mayor & City , City CounCli Attorney City Manager Finance Pogee LWr:ry Public Works Development Englneering Administration Administration Administration Administration Administration Engineering City Recorder Finance ' I I I I Operations Readers Serv I ices Sanitary Sewer Building Street Lights/ Community Accounting Inspection Signals Involvement ( I ' Support Technical Storm Sewer Current Human Office Services Services Serv ices Planning Resources ' I Risk Circulation Water Advance Management Records Planning I Street Maintenance Municipal Court Shops & Services Property Mgmt. I Parks , Maintenance X~ ' 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, 1997 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to Q government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. _ NgE OF, t~ OF GUAM President CORPS TM s SEAT. ~dY CHICAGO Y~r7 465 Executive Director Xil t t CITY OF TIGARD ' FINANCIAL ' SECTION 1 1 1 CITY OF TIGARD ' PAULY, ROGERS AND CO., RC. ® CERTIFIED PUBLIC ACCOUNTANTS ' 12700 SW 72ND AVENUE • TIGARD, OREGON 97223 • (503) 620-2632 • FAX (503) 684-7523 August 28, 1998 ' To the Honorable Mayor and Members of the City Council ' 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, 1998 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. The general purpose financial statements of the City of Newberg as of June 30, 1997, were audited by other auditors whose report dated September 17, 1997, except for Note 16 as to which the date is November 18, 1997, expressed a unqualified opinion ' on those statements. We conducted our audit in accordance with generally accepted auditing standards. Those 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, 1998, 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. ' PAULY, ROGERS AND CO., P.C. BY: L. Parry Anke en, CPA 1 1 1 1 1 1 1 1 1 1 C►'~`( Of T►GAR~ ' ' General Purpose Financial Statements 1 0 CITY OF TIGARD a COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1998 O Governmental Special D ASSETS AND OTHER DEBITS General Revenue Assets: Cash and investments $ 6,238,496 $ 6,372,407 Restricted cash and investments Accounts receivable 1,780 Due from other Funds Property taxes receivable 255,209 Assessment liens receivable 197,709 Accrued interest on delinquent assessments Prepaid insurance 23,248 D Inventory 23,002 Fixed Assets, net Amount to be provided for retirement of general long-term debt Total Assets and Other Debts $ 6,541,735 $ 6,570,116 LIABILITIES, FUND EQUITY AND OTHER CREDITS Liabilities: Accounts payable and accrued liabilities $ 621,849 $ 65,248 Due to other Funds 109,060 Customer deposits 106,198 Deferred revenues: Property taxes 185,777 Assessment liens receivable 191,744 Accrued interest on delinquent assessments Contractor Deposits 78,611 Accrued vacation payable Deferred compensation payable Bond anticipation notes payable Bonds payable Special assessment bonded debt with government commitment 0 Total Liabilities 913,824 444,663 Fund Equity and Other Credits: Contributed capital Investment in general fixed assets Retained earnings Fund balances: Reserved for prepaid insurance 23,248 Reserved for inventory 23,002 Reserved for employee retirement benefits Unreserved and designated for debt services Unreserved and undesignated 5,581,661 6,125,453 Total Fund Equity and Other Credits 5,627,911 6,125,453 Total Liablilities, Fund Equity and Other Credits $ 6,541,735 $ 6,570,116 The accompanying notes are an integral part of the general purpose financial statements. 2 ' Proprietary Fiduciary Fund Types Fund Type Fund Types Account Groups ' General Totals Debt Capital Trust General Long-term (Memorandum Service Projects Enterprise and Agency Fixed Assets Debt Only) t $ 216,103 $ 241,413 $ 12,178,790 $ 9,312,222 $ - $ - $ 34,559,431 4,937,901 4,937,901 / 52,362 1,370,591 1,424,733V 109,060 109,060 62,279 585 517 318,590 5,848,881 6,046,590 37,586 37,586 23,248 168,395 191,397 38,090,600 12,465,780 50,556,380 ' 8,451,766 8,451,766 $ 6,164,849 $ 403,420 $ 56,746,795 $ 9,312,222 $ 12,465,780 $ 8,451,766 $ 106,656,682 ' $ 26,489 $ 175,572 $ 2,054,404 $ - $ - $ - $ 2,943,562 109,060 38,459 144,657 1 45,331 426 231,534 5,848,731 636 6,041,111 37,586 37,586 78,611 77,959 466,766 544,725 2,811,036 2,811,036 4,625,000 4,625,000 2,475,000 2,475,000 ' 885,000 885,000 5,958,137 175,998 2,171,458 2,811,036 8,451,766 20,926,881 43,744,434 43,744,434 12,465,780 12,465,780 10,830,902 10,830,902 23,248 23,002 6,501,186 6,501,186 206,712 227,422 12,141,248 206,712 227,422 54,575,336 6,501,186 12,465,780 85,729,801 $ 6,164,849 $ 403,420 $ 56,746,794 $ 9,312,222 $ 12,465,780 $ 8,451,766 $ 106,656,682 t CITY OF TIGARD ' 1 1 O ' CITY OF TIGARD, OREGON COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES ' IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES for the fiscal year ended June 30, 1998 Totals Special Debt Capital (Memorandum ' General Revenue Service Projects Only) Revenues: Taxes $ 6,656,066 $ $ 1,597,880 $ 1,227 $ 8,255,173 Franchise fees 1,755,719 1,755,719 ' Special assessments 173,947 173,947 Licenses and permits 607,136 2,215,895 2,823,031 Intergovernmental revenues 2,226,300 1,814,934 44,555 4,085,789 Charges for services 106,001 269,889 375,890 Fines and forfeitures 378,145 378,145 Miscellaneous 423,006 532,956 177,374 214,990 1,348,326 Total Revenues 12,152,373 4,833,674 1,949,201 260,772 19,196,020 ' Expenditures: Current: Community services 6,972,217 1,200 6,973,417 Public Works 240,073 644,360 884,433 ' Community development 1,417,942 1,769,734 3,187,676 Policy and administration 1,575,226 338,981 1,914,207 City-wide support function 237,885 69,098 306,983 Capital projects 298,430 929,841 2,048,936 3,277,207 ' Debt service 2,171,542 2,171,542 Total expenditures 10,741,773 3,753,214 2,171,542 2,048,936 18,715,465 1 Excess of revenues over (under) expenditures 1,410,600 1,080,460 (222,341) (1,788,164) 480,555 Undesignated, Unreserved - Fund Balance Beginning of year - as previously stated 4,217,311 5,044,993 1,261,053 1,183,586 11,706,943 Prior period adjustment (Note 18) (832,000) 832,000 Undesignated,.Unreserved - Fund Balance End of year - as restated $ 5,627,911 $ 6,125,453 $ 206,712 $ 227,422 $ 12,187,498 The accompanying notes are an integral part of the general purpose financial statements. 3 CITY OF TIGARD, OREGON , COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- ALL GOVERNMENTAL FUND TYPES for the fiscal year ended June 30, 1998 ' General Fund Special Revenue Funds , Variance Variance Revised Favorable! Revised Favorable/ Budget Actual (Unfavorable) Budget Actual (Unfavorable) , Revenues: Taxes $ 5,388,265 $ 6,656,066 $ 1,267,801 $ - $ - $ - Franchise fees 1,742,000 1,755,719 13,719 Special assessments ' Licenses and permits 612,000 607,136 (4,864) 2,309,368 2,215,895 (93,473) Intergovernmental revenues 2,243,192 2,226,300 (16,892) 2,150,536 1,814,934 (335,602) Charges for services 77,000 106,001 29,001 1,685,188 269,889 (1,415,299) Fines and forfeitures 323,500 378,145 54,645 Miscellaneous 256,152 423,006 166,854 245,500 532,956 287,456 Total Revenues 10,642,109 12,152,373 1,510,264 6,390,592 4,833,674 (1,556,918) Expenditures: ' Current: Community services 6,984,377 6,972,217 12,160 13,269 1,200 12,069 Community development 1,703,764 1,658,015 45,749 2,989,771 2,414,094 575,677 Policy and administration 1,650,890 1,575,226 75,664 353,935 338,981 14,954 , City-wide support function 250,766 237,885 12,881 72,840 69,098 3,742 Contingency 412,764 412,764 380,330 380,330 Capital projects 1,979,146 1,798,430 180,716 6,573,644 929,841 5,643,803 Debt service Total expenditures 12,981,707 12,241,773 739,934 10,383,789 3,753,214 6,630,575 , Excess of revenues over (under) expenditures (2,339,598) (89,400) 2,250,198 (3,993,197) 1,080,460 5,073,657 ' Undesignated, Unreserved - Fund Balance Beginning of year- as previously stated 5,565,838 5,717,311 151,473 4,219,150 5,044,993 825,843 Prior period adjustment (Note 18) Undesignated, Unreserved - Fund Balance End of year - as restated $ 3,226,240 $ 5,627,911 $ 2,401,671 $ 225,953 $ 6,125,453 $ 5,899,500 The accompanying notes are an integral part of the general purpose financial statements. I 4 ' ' Debt Service Funds Capital Projects Funds Totals (Memorandum Only) Variance Variance Variance Revised Favorable/ Revised Favorable/ Revised Favorable/ Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 1,599,675 $ 1,597,880 $ (1,795) $ $ 1,227 $ 1,227 $ 6,987,940 $ 8,255,173 $ 1,267,233 1,742,000 1,755,719 13,719 163,449 173,947 10,498 163,449 173,947 10,498 1 2,921,368 2,823,031 (98,337) 633,000 44,555 (588,445) 5,026,728 4,085,789 (940,939) 1,762,188 375,890 (1,386,298) 323,500 378,145 54,645 1 149,284 177,374 28,090 250,000 214,990 (35,010) 900,936 1,348,326 447,390 1,912,408 1,949,201 36,793 883,000 260,772 (622,228) 19,828,109 19,196,020 (632,089) 6,997,646 6,973,417 24,229 4,693,535 4,072,109 621,426 2,004,825 1,914,207 90,618 ' 323,606 306,983 16,623 793,094 793,094 2,896,423 2,048,936 847,487 11,449,213 4,777,207 6,672,006 2,165,550 21171,542 (5,992) 2,165,550 2,171,542 (5,992) 2,165,550 2,171,542 (5,992) 2,896,423 2,048,936 847,487 28 427,469 20,215,465 8,212,004 (253,142) (222,341) 30,801 (2,013,423) (1,788,164) 225,259 (8,599,360) (1,019,445) 7,579,915 565,109 1,261,053 695,944 2,013,423 1,183,586 (829,837) 12,363,520 13,206,943 843,423 (832,000) (832,000) 832,000 832,000 1 $ 311,967 $ 206,712 $ (105,255) $ - $ 227,422 $ 227,422 $ 3,764,160 $ 12,187,498 $ 8,423,338 1 1 1 1 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, 1998 ' Operating revenues: Service charge $ 6,485,122 Miscellaneous 162,106 Total operating revenues 6,647,228 Operating expenses: Salaries, wages and benefits 3,304,903 Contracted services 66,706 General, administrative and other 1,666,685 Depreciation 1,180,107 Total operating expenses 6,218,401 Operating income 428,827 Nonoperating revenues - Interest 972,143 ' Net Income 1,400,970 Add depreciation on fixed assets donated or acquired from capital ' contributions that reduce contributed capital 983,829 Increase in retained earnings 2,384,799 Retained earnings - beginning of year 8,446,103 Retained earnings - end of year $ 10,830,902 The accompanying notes are an integral part of the general purpose financial statements. 5 CITY OF TIGARD, OREGON COMBINED STATEMENT OF CASH FLOWS ALL ENTERPRISE FUNDS for the fiscal year ended June 30, 1998 ' Cash flows from operating activities: Operating income $ 428,827 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 1,180,107 Increase in accounts receivable 217,133 Decrease in inventory (18,571) Increase in customer deposits (40,240) ' Increase in accounts payable and accrued liabilities 414,672 Increase in accrued vacation payable 4,311 Decrease in deferred revenue (514) Loss on disposal of fixed assets 691 Decrease in due to/from other funds (107,787) 1 Net cash provided by operating activities 2,078,629 Cash flows from capital and related financing activities: Capital contributions 1,030,986 Acquisition of fixed assets (3,614,138) Net cash used by capital and related financing activities (2,583,152) I'. Cash flows from investing activities - Interest earnings 972,143 Net increase in cash and cash equivalents 467,620 I Cash and cash equivalents - beginning of year 16,649,071 Cash and cash equivalents - end of year $ 17,116,691 ' Supplemental schedule of noncash investing, capital and related financing activities: Contributed sewer, storm and water lines $ 2,174,818 Cash and cash equivalents are displayed on the balance sheet as follows: Cash and investments $ 12,178,790 Restricted cash and investments 4,937,901 $ 17,116,691 ' The accompanying notes are an integral part of the general purpose financial statements. 6 CITY OF TIGARD, OREGON PENSION TRUST FUNDS STATEMENT OF PLAN NET ASSETS 1 June 30, 1998 Cash and investments $ 6,501,186 Net assets held in trust for pension benefits $ 6,501,186 1 1 1 1 i i 1 1 The accompanying notes are an integral part of the general purpose financial statements. , 7 , ' CITY OF TIGARD, OREGON PENSION TRUST FUNDS 1 STATEMENT OF CHANGES IN PLAN NET ASSETS for the fiscal year ended June 30, 1998 ' Additions: Contributions $ 549,949 Interest 855,370 Total additions 1,405,319 Deductions: Benefit payments and withdrawls, 321,484 Increase in net assets 1,083,835 Net assets held in trust for pension benefits: Beginning of year 5,417,351 End of year $ 6,501,186 i 1 1 1 1 ' The accompanying notes are an integral part of the general purpose financial statements. 8 CITY OF TIGARD , 1 Notes to General Purpose Financial Statements City of Tigard, Oregon ' Notes to General Purpose Financial Statements 1. Summary of Significant Accounting Policies: ' The City of Tigard, Oregon, 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 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 t 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 June 30, 1998 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 i collected within sixty days following year-end. The accrual basis of accounting is utilized by the Enterprise Funds and Pension Trust ' Fund. Under this method, revenues are recorded when earned, and expenses are recorded at the time liabilities are incurred. These 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. The bases of accounting described above are in accordance with generally accepted , accounting principles. 9 , ' City of Tigard, Oregon Notes to General Purpose Financial Statements 1. Summary of Significant Accounting Policies, Continued: 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. 0 Receivables of the Enterprise Funds are recorded as revenue when earned. 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 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 City. 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 (which approximates market value) on the first-in, first-out basis and are charged to expenditures as used. t 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. ' 10 City of Tigard, Oregon ' Notes to General Purpose Financial Statements 1. Summary of Significant Accounting Policies, Continued: Investments Investments included in cash and investments are stated at market value, which ' approximates amortized cost For purposes of the statement of cash flows, the City considers the Enterprise Funds' ' cash and investments purchased with remaining maturities of three months or less, and the Oregon State Treasurer's Investment Pool, to be cash equivalents. , 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. Such reduction is recorded by a transfer from 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. , 11 , ' City of Tigard, Oregon Notes to General Purpose Financial Statements 1. Summary of Significant Accounting Policies, Continued: General Fixed Assets, Continued ' Expenditures for public domain fixed assets (streets, sidewalks, curbs and gutters, lighting 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 Special Assessment (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. 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 1 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, i accordingly, are not recognized as revenue. The following transactions are recorded in contributed capital in the Enterprise Funds: I~ • 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. 12 City of Tigard, Oregon , Notes to General Purpose Financial Statements 1. Summary of Significant Accounting Policies, Continued: Budget A budget is prepared for each governmental fund except for the Fiduciary Fund Types, ' essentially in accordance with the modified accrual basis of accounting for all funds, which is in . accordance with the legal requirements set forth in Oregon Local Budget Law. However, as set forth in Note 3, certain budgetary accounting practices are not in accordance with generally accepted accounting principles, but are acceptable budgetary practices. under Oregon Local Budget Law. Accordingly, the Combined Statement of , Revenues, Expenditures and Changes in Fund Balances - Budget (Non-GAAP) and Actual - All Governmental Fund Types is presented as a comparison to budget and is reconciled to the Combined Statement of Revenues, Expenditures and Changes in Fund , Balances - All Governmental Fund Types (Note 3). The resolution authorizing appropriations sets the maximum level of expenditures for I 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, Non-departmental, 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, t 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, 1998, several appropriation ' transfers were made. The budgets for each of the governmental funds include capital outlay expenditures in i 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 i 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. , 13 ' City of Tigard, Oregon Notes to General Purpose Financial Statements ' 2. Fund Types and Account Groups: The City's financial operations are accounted for in the following funds and account ' groups: Governmental Fund Types ' 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: ' Forfeitures From Criminal Activity Fund - This fund accounts for funds and property seized from criminals in connection with crimes committed. ' State Tax Street 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 are used for highway and transit capital improvements approved by the County that provide additional capacity to the major 1 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 ' developers for future underground utility improvements. FEMA Disaster Fund - This fund accounts for the flood disaster and wind storm clean up and recovery activities. Activities are anticipated to be funded by Federal Disaster Relief Funds. ' Worker's Compensation Fund - This fund accounts for payments made for the Worker's Compensation insurance plan. Building Fund - This fund accounts for fees charged for building inspection and plan review activities. 14 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: Urban Services Fund - This fund accounts for all revenues and 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. Urban Services TIF 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. ' Tree Replacement Fund - This fund accounts for fees charged to developers in lieu of saving existing trees. , Debt Service Funds: General Obligation Bond 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: Local Improvement Capital Projects 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 Greenspaces Fund - This fund accounts for monies received from Washington County to be used for greenspace property acquisition and improvements. 15 City of Tigard, Oregon Notes to General Purpose Financial Statements 2. Fund Types and Account Groups, Continued: Enterprise Funds: Sewer Fund - This fund accounts for the City's sewer utility operations. Storm Drainage Fund - This fund accounts for the City's storm drainage operations. Budgetary funds: Storm Drainage Fund ' Water Quality and Quantity Fun Water Fund - This fund accounts for the City's water operations. Budgetary funds: Water General Fund ' Water Systems Development Fund Water Capital Projects Fund 1 Fiduciary Fund Types: Deferred Compensation Fund - This agency fund accounts for monies withheld from employees under deferred compensation plans and earnings on investment of those funds. Pension Trust Funds - These funds account for the City's General and Water Fund employee defined contribution plans. I Account Groups General Fixed Assets - This account group accounts for the City's investment in fixed assets, with the exception of those assets recorded in the Enterprise Funds. General Long-term Debt - This account group accounts for general long-term 1 indebtedness of the City. 16 City of Tigard, Oregon Notes to General Purpose Financial Statements 3. Reconciliation of Budgetary Basis to Generally Accepted Accounting , Principles Basis: The budget of the City's governmental funds are prepared differently from generally ' accepted accounting principles (Note 1). Therefore, the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (Non-GAAP Basis) and Actual - All Governmental Fund Types is presented on the budgetary basis and the , Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types is presented on a generally accepted accounting principles , basis. The following is a reconciliation of the differences between the budgetary basis and , generally accepted accounting principles basis for expenditures: General ' Fund Expenditures, budgetary basis $ 12,241,773 , Litigation settlement (Note 17) (1,500,000 Expenditures, generally accepted ' accounting principles basis 10,741,773 4. Cash and Investments: The City maintains a cash and investment pool that is available for use by ail funds, except the Deferred Compensation Fund and Pension Trust Fund. Each fund type's portion of this pool is displayed on the combined balance sheet as "cash and investments". The investments of the Deferred Compensation Fund and Pension Trust Fund are held separately from those of other City funds. Cash and investments are comprised of the following at June 30, 1998: , Cash on hand $ 3,600 Cash held by Department of Finance, Washington County 46,897 Deposits with financial institutions 1,569,997 Investments 36,272,101 $ 39,497,332 Cash and investments are displayed on the balance sheet as follows: , Cash and investments $ 34,559,431 Restricted cash and investments 4,937,901 $ 39,497.332 17 ' City of Tigard, Oregon Notes to General Purpose Financial Statements 4. Cash and Investments, Continued: Deposits ' Deposits with financial institutions include bank demand deposits and time deposit accounts. The total bank balance is $1,391,811 (book balance is $1,569,997). Of these deposits, $100,000 was covered by federal depository insurance and $1,291,811 was fully collateralized with securities held by financial institutions acting as custodians for the City in the City's name. 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 participation issued by the pool manager. 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 I Treasurer's Investment Pool, among others. The City's investments are categorized below to give an indication of the level of credit risk assumed by the City at June 30, 1998. Category 1 includes investments that are insured or for which the securities are held by the City in the City's name. Category 2 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 uninsured 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's name. The City does not use brokers or dealers for its investments. Category 1 2 3 Amount U.S. Government t Securities $14,417,279 $14,417,279 Held by custodians under ' deferred compensation and pension plans - ' mutual fund investments 7,668,734 State Treasurer's Investment Pool 14,186,088 Total Investments $36,272.101 i 18 City of Tigard, Oregon , Notes to General Purpose Financial Statements 5. 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 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, 1998, the portion of the assessments , receivable balance that represents delinquent accounts is approximately $64,600. 6. Due To/Due From Other Funds: , Amounts are comprised of the following: Interfund Interfund Fund Receivables Payables Capital Projects Fund: , Facility Fund $109,000 Special Revenue Fund: ' Urban Services Fund $109,000 7. Fixed Assets: , Fixed assets and accumulated depreciation by major classes in the Enterprise Funds at June 30, 1998 are as follows: Balances Balances r June 30, June 30, 1997 Additions Retirements 1998 Land $ 1,252,018 $ 24,093 $ - $ 1 ,276,111 Building 1,040,115 12,140 1,052,255 ' Sewer system 8,923,597 650,897 9,574,494 Storm drainage sys. 8,299,000 602,727 (928) 8,900,799 Water system 28,465,999 4,399,512 32,865,511 Equipment 1,023,395 58,714 (49,734) 1,032,375 , Autos and trucks 747,908 28,579 (12,892) 763,595 49,752,032 5.776.662 (63.5541 55,465,140 Less accumulated depreciation (16,268,662) (1.167.813) $ 61.935 (17,3741540) ' 33.483.370 $ 38,090.600 19 ' ' City of Tigard, Oregon Notes to General Purpose Financial Statements ' 7. Fixed Assets, Continued: ' Changes in fixed assets in the General Fixed Asset Account Group for the year ended June 30, 1998 are as follows: Balances Balances June 30, June 30, 1997 Additions Retirements 1998 Land $ 3,523,227 $ 144,677 $ - $ 3,667,904 Buildings 4,535,485 445,698 4,981,183 Equipment 929,057 84,715 (22,551) 991,221 Autos and trucks 1,140,701 121,496 (60,549) 1,201,648 Office equipment 1,510,372 247,752 (134,300) 1,623,824 $ 11,638.842 $ 1,044.338 $ (217.400) $ 12.465.780 8. Long-term Debt: Bonds Payable i Bonds payable transactions for the year ended June 30, 1998, and future maturities of bond principal and interest, are as follows: General Obligation bond issues - Interest rates from 3.4% to 4.75%: Outstanding Outstanding Fiscal year June 30, Paid June 30, due: 1997 During Year 1998 Interest 1999 $ 1,490,000 $ 1,490,000 $ $ 52,307 ' 2000 1,570,000 1,570,000 72,822 2001 210,000 210,000 36,515 2002 225,000 225,000 26,994 ' 2003 470,000 470,000 22,632 $ 3.965.000 _$__1,_4_90.000 $ 2.475.000 $ 211,270 20 i City of Tigard, Oregon Notes to General Purpose Financial Statements 8. Long-term Debt, Continued: Bancroft Improvement Bonds: Bancroft improvement bond issues - Interest rates from 4.1% to 11.75%; payable first from 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: 1997 Year Year 1998 Interest 1997 $ 10,000 $ - $ - $ 10,000 $ - ' 1998 135,000 (135,000) 1999 285,000 285,000 38,569 ' 2000 160,000 (100,000) 60,000 29,170 2001 26,710 2002 105,000 (40,000) 65,000 24,760 2003 -2006 465,000 465,000 64,655 $ 1,160,000 $ (135,000) $ (140,000) $ 885,000 $ 183,864 During fiscal year 1997, the City issued $4,625,000 in bond anticipation notes dated June 2, 1997, due on December 1, 1998, with an interest rate of 4.05% payable on June 1 and December 1 of each year. Interest paid on bond anticipation notes in fiscal year 1998 were $186,792. The notes are collateralized by, and payable from, the assessment bonds to be sold upon completion of the improvements. The net proceeds ' were used to retire $4,085,000 in bond anticipation notes dated December 1, 1995. 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, 1998, are as follows: Balance Balance June 30, June 30, , 1997 Additions Retirements 1998 Accrued vacation ' payable $ 406,534 $ 466,766 $ 406,534 $ 466,766 Bond anticipation notes due December December 1, 1998; interest rate 4.05% $ 4,625,000 $ - $ - $ 4,625,000 1 21 ' City of Tigard, Oregon Notes to General Purpose Financial Statements ' 9. Contributed Capital: The changes in contributed capital were as follows: ' Balance - Beginning of year $ 41,523,387 Contributions from customers 3,204,875 Transfer of depreciation on certain contributed fixed assets from retained earnings (983,829) Balance - End of year $ 43,744,433 10. Year 2000 Compliance: ' The City depends heavily on its accounting software to record, process, summarize and report accurate financial data. Therefore, the year 2000 issue (whether the hardware 1 and accounting software used by the City will continue to function after the year 1999) needs to be addressed. The Governmental Accounting Standards Board has identified the following stages as necessary to implement a year 2000-compliant system: Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 issue. Assessment Stage - When the organization begins the actual process of identifying all of its systems and individual components of the systems. An organization may decide to review all system components for year 2000 compliance or, through risk analysis, identify only mission-critical systems to check for compliance. Remediation Stage - When the organization actually makes changes to systems. This stage deals primarily with the technical issues of converting existing systems, or switching to compliant systems. During this stage, decisions are made on how to make the systems or processes year 2000-compliant, and the required system changes are made. Validation/Testing Stage - When the organization determines that no errors were ' introduced during the conversion process. The development of test data and test scripts, the running of test scripts, and the review of test results are crucial for this stage of the conversion process to be successful. If the testing results show anomalies, the tested area needs to be corrected and retested. ' Implementation Stage - When a tested year 2000-compliant system is ready for use. ' 22 City of Tigard, Oregon ' Notes to General Purpose Financial Statements 10. Year 2000 Compliance, Continued: The City uses Springbrook Software for general accounting software and Municipal Software Library software for utility billing. The City is in the remediation stage for , implementing new utility and finance software. The City estimates the cost of replacing both software systems to be $81,300. The City anticipates completion of the implementation stage by June 30, 1999. 11. Retirement Plans: , The City contributes to retirement plans on behalf of all eligible employees. At June 30, ' 1998, the following employee groups were covered by the following retirement plans: Group Retirement Plan , Management/Professional Staff International City Managers Association (nonunion) Retirement Corp. (ICMARC) Money ' Purchase Plan Oregon Public Employees Union ICMARC Money Purchase Plan Employees Tigard Water Fund Employees Ameritus Tigard Police Officers State of Oregon Public Employees ' Retirement System (PERS) Oregon Public Employes Retirement System (OPERS) Plan Description 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. , 23 , ' City of Tigard, Oregon Notes to General Purpose Financial Statements 11. -Retirement Plans, Continued: ' Oregon Public Employes Retirement System (OPERS), Continued Funding Policy The City's required contribution rate is currently 9.89% of covered payroll. The next scheduled valuation date is December 31, 1997, which is not yet available. The City is required by State Statute to contribute its current employer rate of 9.89% of covered payroll, plus employee contributions of 6% of covered payroll. Annual Pension Cost ' 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, 1998, 1997 and 1996, the City's annual pension cost was approximately $299,000, $404,000 and $359,000, respectively. The City's pension liability and the annual required contribution rate were determined as part of the December 31, 1995 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 26/6 per year for post- retirement benefits. The following table presents a schedule of funding progress for the City's multiple- employer pension plan: Unfunded Actuarial Unfunded Liability as a ' Actuarial Actuarial Actuarial Percent of Actuarial Value of Accrued Accrued Funded Covered Covered Valuation Date Assets Liability Liability Ratio Payroll Payroll ' December 31, 1993 $ 5,846,165 $ 5,738,843 $ (107,322) 102% $ 1,918,181 -5.6% December 31, 1995 $ 7,946,463 $ 7,616,463 $ (330,001) 104% $ 2,353,479 -14.0% 24 City of Tigard, Oregon ' Notes to General Purpose Financial Statements 11. Retirement Plans, Continued: 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. 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 $590,640 for the year ended June 30, ' 1998. Current year covered payroll amounted to $6,279,618. Contributions as a percentage of covered payroll was 10.6 percent. Ameritus Plan Beginning January 1, 1994 the City assumed the operations of the Southeast ' Washington County Joint Agency (the Agency). In addition, the City assumed responsibility of the Agency's defined contribution retirement plan (Ameritus Plan). The Ameritus Plan participants were transferred to the ICMARC Plan on January 1, 1994 and ' no further contributions to the Ameritus Plan will be made. Ameritus Plan assets accumulated through January 1, 1994 will remain in the plan. Employees may withdraw funds upon retirement or termination of employment. The fiduciary holds the funds in trust and makes distributions as provided by the plan. Since the plan is administered by the City, the assets, equity and operations of the plan are accounted for in the Water Fund Employees Pension Plan Fund, a pension trust fund. 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 funds in trust solely for the plans' participants. The Deferred Compensation ' Plans are not considered City funds and are excluded from the Combined Balance Sheets as of June 30, 1998. In previous years this plan was considered to be an agency fund of the City, but due to a change in the Internal Revenue Code, the City no longer ' considers the assets and liabilities of the fund to be its responsibility. At June 30, 1997, the City reported $2,251,383 of assets and liabilities of the plan. 25 ' ' City of Tigard, Oregon Notes to General Purpose Financial Statements 12. Transactions with Unified Sewerage Agency of Washington County: ' 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 $5,012,645 were made to USA during 1998 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 1998 under the agreement were $274,039. 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 - all Enterprise Funds. Revenues are reported net because the City acts in a fiduciary ' capacity on behalf of USA. ' 13. Urban Services Fund: The City of Tigard entered into an intergovernmental agreement with Washington County in June 1997. The agreement provided that the City would take over most development ' services in certain unincorporated areas adjacent to the City of Tigard boundaries. The County agreed to pay the City $220,000 on May 14, 1997 to cover permits in process and to provide the City with funds for startup costs of this new program. Under the agreement, the City provides permitting, building inspection, planning and engineering services. In addition, the City assumed code enforcement responsibilities for the area. t The City is entitled to all development revenues generated from development activity in the area. The Urban Services Fund is used to record revenues and expenses related to urban services activities. In addition, the Urban Services Traffic Impact Fee Fund records revenues collected from the Urban Services area. These funds are to be used for road ' improvements in the area. ' 26 City of Tigard, Oregon Notes to General Purpose Financial Statements 14. Segment Information for Enterprise Funds: 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 user t 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, 1998 is as follows: ' Storm Sewer Drainage Water ' Fund Fund Fund Total Operating revenue $ 1,392,163 $ 1,347,382 $ 3,907,683 $ 6,647,228 t Depreciation 267,106 234,973 678,028 1,180,107 Operating income (loss) 448,603 480,146 (499,922) 428,827 Net income 732,782 572,098 96,090 1,400,970 Current capital 632,138 293,697 1,248,983 2,174,818 Fixed asset additions 31,532 316,823 3,276,871 3,625,226 , Net working capital 2,374,019 805,633 8,367,183 11,546,835 Total assets 12,961,844 9,097,133 34,687,817 56,746,794 , Total equity 11,927,177 9,013,638 33,634,521 54,575,336 15. Constitutional Property Tax Limitations: ' The Oregon constitution limits property taxes for schools and non-school 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 least 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. ' 27 ' City of Tigard, Oregon Notes to General Purpose Financial Statements ' 15. Constitutional Property Tax Limitations, Continued: During May 1997, Oregon voters approved Measure 50 which further 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 taxable value to 3% per year with certain exceptions. Measure 50 also establishes permanent tax rates for Oregon's ' local taxing districts, which replace the former tax base amounts of the districts 16. Implementation of GASB Statements: ' The City has implemented GASB No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plan. The City has also elected to early implement GASB No. 27, Accounting for Pensions by State and Local Governmental Employers. Although GASB No. 25 requires restatement when prior periods are presented, the affect of the pronouncement was not material to the City's i prior year financial statements. As such, no restatement of the prior year financial statements have been made. ' 17. Litigation Settlement The City was a defendant in a lawsuit wherein the plaintiffs sought damages for taking of their property as a result of the City's decision to impose certain requirements upon the plaintiffs for easements as a condition of allowing the plaintiffs to erect improvements on ' property owned by the plaintiffs within the City. The plaintiffs claimed damages of inverse condemnation and violation of the Federal Civil Rights Act of approximately $2,400,000. On November 18, 1997, the City and plaintiff completed a court-approved settlement agreement whereby the City paid the plaintiffs $1.5 million. In addition, the City will issue ' necessary building permits to allow the plaintiffs to expand their retail business. The City will receive an easement from the plaintiffs which will allow the City to build a pedestrian and bicycle trail. As a result of the settlement, a GAAP liability in the amount of $1.5 million was accrued in the General Fund in the year ended June 30, 1997. The settlement was paid on December 10, 1997. This settlement was considered a payment for budgetary purposes ' in 1998. (See Note 3). 28 City of Tigard, Oregon ' Notes to General Purpose Financial Statements 18. Restatement of Fund Balance ' During the year ended June 30, 1998, management determined that in previous years an interfund payable of $832,000 in the Bancroft Bond Debt Service Fund, and an identical amount of interfund receivable in the Local Improvement Capital Projects Fund, Debt Service and Capital Projects fund types, respectively, were recorded in error. To correct the error the beginning fund balances of each of these funds were adjusted to ' reflect the elimination of the erroneous liability and receivable, respectively. This adjustment was made both on the generally accepted accounting principles basis and on the City's budgetary basis of accounting. , 19. Deficit Fund Balance At June 30, 1998, the General Obligation Bond Debt Service Fund, one of the funds in the Debt Service fund type, had a deficit fund balance of $9,541. This deficit was caused primarily by the adjustment discussed in Note 18. Management has budgeted activities for this fund for the year ending June 30, 1999, which are intended to bring the fund balance into a positive position by June 30, 1999. 29 ' Supplementary Data hie, CITY OF TIGARD i 1 1 1 1 1 1 1 1 General Fund This fund accounts for the financial operations of the City which are not accounted ' for in any other fund. Principal resources are property taxes, franchise fees, intergovernmental revenues, and licenses and permits. Expenditures in the 1 General Fund are made primarily for police protection, community development and administration. 1 1 1 1 1 1 1 1 - 1 CITY OF TIGARD, OREGON , GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL , for the fiscal year ended June 30, 1998 Variance , Revised Favorable/ Budget Actual (Unfavorable) ' REVENUES: Taxes $ 5,388,265 $ 6,656,066 $ 1,267,801 Franchise fees 1,742,000 1,755,719 13,719 Licenses and permits 612,000 607,136 (4,864) Intergovernmental revenues 2,243,192 2,226,300 (16,892) Charges for services 77,000 106,001 29,001 ' Fines and forfeitures 323,500 378,145 54,645 Miscellaneous 256,152 423,006 166,854 Total Revenues 10,642,109 12,152,373 1,510,264 ' EXPENDITURES: ' Community services 6,984,377 6,972,217 12,160 Public works $241,818 240,073 1,745 Community development 1,461,946 1,417,942 44,004 , Policy and administration 1,650,890 1,575,226 75,664 City-wide support function 250,766 237,885 12,881 Contingency 412,764 0 412,764 Capital projects 1,979,146 1,798,430 180,716 Total expenditures 12,981,707 12,241,773 739,934 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (2,339,598) (89,400) 770,330 UNDESIGNATED, UNRESERVED - FUND BALANCE ' BEGINNING OF YEAR 5,565,838 5,717,311 151,473 UNDESIGNATED, UNRESERVED - FUND BALANCE ' END OF YEAR $ 3,226,240 $ 5,627,911 $ 2,401,671 30 1 Special Revenue Funds ' 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: ' Forfeitures From Criminal Activity Fund State Tax Street Fund ' Parks SDC Fund County Gas Tax Fund Traffic Impact Fund Electrical Inspection Fund ' Underground Utility Fund ' Workers' Compensation Fund Building Fund 1 Urban Services - TIF Fund ' Urban Services Tree Replacement Fund CITY OF TIGARD, OREGON SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1998 Forfeitures From State County Criminal Street Parks Gas Traffic Electrical Underground Worker's Urban Urban Tree Activity Tax SDC Tax Impact Inspection Utility Comp Building Services Services Replace. Fund Fund Fund Fund Fund Fund Fund Fund Fund TIF Fund Fund Fund Total ASSETS: Cash and investments $ 26,974 $ 368,978 $ 1,083,258 $ 29,454 $ 3,497,024 $ 163,365 $ 229,502 $ 168,607 $ 100,899 $ 280,808 $ 223,304 $ 200,436 $ 6,372,407 Accounts receivable Assessment liens receivable 197.709 197'709 Total assets $ 26,974 $ 368,978 $ 1,083,258 $ 29,454 $ 3,694,733 $ 163,365 $ 229,502 $ 168,607 $ 100,899 $ 280,606 $ 223,304 $ 200,436 $ 6,5_0,116 LIABILITIES AND FUND BALANCES: LIABILITIES: Accounts payable $ $ 539 $ 20,047 $ $ 6,584 $ $ $ $ $ $ 11,797 $ 26,281 $ 65,248 Due to other funds 109,060 109,060 w Customer Deposits 21,884 38,200 6,076 12,451 78,811 "i Deferred revenues 191,744 191'744 Total liabilities 22,423 20,047 236,528 6,076 133,308 26,281 444,663 FUND BALANCE UNRESERVED 26,974 346,555 1,063,211 29,454 3,458,205 157,289 229,502 168,607 100,899 280,606 89,996 174,155 6,125,453 Total liabilities and fund balances $ 26,974 $ 368,978 $ 1,083,258 $ 29,454 $ 3,694,733 $ 163,365 $ 229,502 $ 168,607 $ 100,899 $ 280,606 $ 223,304 $ 200,436 $ 6,570,116 CITY OF TIGARD, OREGON SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE for the fiscal year ended June 30, 1998 Forfeitures From State County Criminal Street Parks Gas Traffic Electrical Underground Worker's Urban Urban Tree Activity Tax SDC Tax Impact Inspection Utility Comp Building Services Services Replace. Fund Fund Fund Fund Fund Fund Fund Fund Fund TIF Fund Fund Fund Total REVENUES: Licenses and permits $ $ E E $ 821,987 b 160,920 E - E E 612,970 y 261,330 $ 358,688 E E 2,215,895 Intergovernmental revenues 1,559,909 157,489 97,536 1,814,934 Charges for services 9,401 180,497 66,633 7,075 6,283 269,889 Miscellaneous revenues 26,014 16,600 87,917 2,121 243,477 9,834 9,909 56,760 14,243 8,456 14,397 43,228 532,956 Total revenues 26,014 1,585,910 268,414 159,610 1,065,464 170,754 76,542 56,760 634,288 269,786 476,904 43,228 4,833,674 W EXPENDITURES: N Community Services 1,200 1,200 Public Works 376,449 154,547 658 10,426 102,280 644,360 Development Services 395,559 55,898 166,603 726,701 24,660 400,313 1,769,734 Policy and administration 124,324 18,713 128,809 67,135 338,981 City-wide support functions 31,588 5,922 23,691 7,897 69,098 Capital projects 450,928 231,456 205,418 42,039 929,841 Total expenditures 1,200 1,378,848 231,456 154,547 261,316 191,896 889,627 24,660 577,625 42,039 3,753,214 Excess of revenues over (under) expenditures 24,814 207,062 36,958 5,063 804,148 (21,142) 76,542 56,760 (255,339) 245,126 (100,721) 1,189 1,080,460 FUND BALANCES-beginning of year 2,160 139,493 1,026,253 24,391 2,654,057 _ 178,431 152,960 111,847 356,238 35,480 190,717 172,966 5,044,993 FUND BALANCES-end of year E 26,974 $ 346,555 $ 1,063,211 E 29,454 $ 3,458,205 E 157,289 $ 229,502 $ 168,607 $ 100,899 $ 280,606 $ 89,996 $ 174,155 E 6,125,453 CITY OF TIGARD, OREGON FORFEITURES FROM CRIMINAL ACTIVITY FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 , Variance Favorable/ Budget Actual (Unfavorable) REVENUES: , Interest $ 300 $ 504 $ 204 Miscellaneous, 5,000 25,510 20,510 ' Total Revenues 5,300 26,014 20,714 EXPENDITURES: , Community services 13,269 1,200 12,069 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (7,969) 24,814 32,783 UNDESIGNATED, UNRESERVED - FUND BALANCE , BEGINNING OF YEAR 7,969 2,160 (5,809) UNDESIGNATED, UNRESERVED - FUND BALANCE , END OF YEAR $ - $ 26,974 $ 26,974 33 ' 1 CITY OF TIGARD, OREGON ' STATE TAX STREET FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 ' Variance Favorable/ Budget Actual (Unfavorable) REVENUES: ' State gas tax $ 1,907,000 $ 1,559,909 $ (347,091) Lighting subdivisions 17,000 9,401 (7,599) Interest 23,000 14,178 (8,822) ' Miscellaneous 2,422 2,422 Total Revenues 1,947,000 1,585,910 (361,090) ' EXPENDITURES: Public Works 448,027 376,449 71,578 ' Development Services 545,552 395,559 149,993 Policy and administration 129,354 124,324 5,030 City-wide support functions 33,298 31,588 1,710 Contingency 50,000 50,000 1 Capital projects 822,991 450,928 372,063 Total expenditures 2,029,222 1,378,848 650,374 ' EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (82,222) 207,062 289,284 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 82,222 139,493 57,271 ' UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ - $ 346,555 $ 346,555 ' 34 CITY OF TIGARD, OREGON PARKS SDC FUND , SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 Variance , Favorable/ Budget Actual (Unfavorable) ' REVENUES: System development charges $ 509,200 $ 180,497 $ (328,703) ' Interest 44,000 57,917 13,917 Miscellaneous 30,000 30,000 Total Revenues 553,200 268,414 (284,786) ' EXPENDITURES: Capital projects 1,430,000 231,456 1,198,544 , Contingency 75,000 75,000 Total expenditures 1,505,000 231,456 1,273,544 , EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (951,800) 36,958 988,758 , UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 958,642 1,026,253 67,611 , UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 6,842 $ 1,063,211 $ 1,056,369 35 , CITY OF TIGARD, OREGON ' COUNTY GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 Variance Favorable/ Budget Actual (Unfavorable) REVENUES: County gas taxes $ 146,000 $ 157,489 $ 11,489 Interest 1,700 2,121 421 Total Revenues 147,700 159,610 11,910 EXPENDITURES: Public Works 184,255 154,547 29,708 ' EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (36,555) 5,063 41,618 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 36,555 24,391 (12,164) UNDESIGNATED, UNRESERVED - FUND BALANCE ' END OF YEAR $ - $ 29,454 $ 29,454 ' 36 CITY OF TIGARD, OREGON TRAFFIC IMPACT FUND ' SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 Variance Favorable/ ' Budget Actual (Unfavorable) REVENUES: , System development charges $ 1;147,000 $ 821,987 $ (325,013) Interest 120,000 166,644 46,644 Miscellaneous 76,833 76,833 ' Total Revenues 1,267,000 1,065,464 (201,536) EXPENDITURES: , Development Services 56,321 55,898 423 Capital projects 3,500,000 205,418 3,294,582 ' Contingency 150,000 150,000 Total expenditures 3,706,321 261,316 3,445,005 EXCESS OF REVENUES OVER (UNDER) ' EXPENDITURES (2,439,321) 804,148 3,243,469 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 2,501,635 2,654,057 152,422 UNDESIGNATED, UNRESERVED - FUND BALANCE , END OF YEAR $ 62,314 $ 3,458,205 $ 3,395,891 37 ' 1 CITY OF TIGARD, OREGON ' ELECTRICAL INSPECTION FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 Variance Revised Favorable/ Budget Actual (Unfavorable) REVENUES: Electrical permit fees $ 212,325 $ 151,548 $ (60,777) Electrical plan check fees 15,230 9,372 (5,858) ' Interest 7,500 9,834 2,334 Total Revenues 235,055 170,754 (64,301) ' EXPENDITURES: Public Works 675 658 17 ' Development Services 203,161 166,603 36,558 Policy & Administration 19,545 18,713 832 City-wide support functions 6,243 5,922 321 Contingency 18,578 - 18,578 Total expenditures 248,202 191,896 56,306 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (13,147) (21,142) (7,995) UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 199,710 178,431 (21,279) UNDESIGNATED, UNRESERVED - FUND BALANCE ' END OF YEAR $ 186,563 $ 157,289 $ (29,274) 38 CITY OF TIGARD, OREGON UNDERGROUND UTILITY FUND ' SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 Variance Budget Actual Favorable REVENUES: Interest $ 6,000 $ 9,909 $ 3,909 Charges for services 10,000 66,633 56,633 Total Revenues 16,000 76,542 60,542 , EXPENDITURES: Capital projects 130,000 - 130,000 , EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (114,000) 76,542 190,542 , UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 116,396 152,960 36,564 UNDESIGNATED, UNRESERVED - FUND BALANCE r END OF YEAR $ 2,396 $ 229,502 $ 227,106 39 ' CITY OF TIGARD, OREGON ' WORKER'S COMPENSATION FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 t Variance Budget Actual Favorable REVENUES: Miscellaneous $ - $ 48,676 $ 48,676 ' Interest earnings 3,800 8,084 4,284 Total Revenues 3,800 56,760 52,960 ' UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 102,053 111,847 9,794 ' UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 105,853 $ 168,607 $ 62,754 r s t ' 40 i CITY OF TIGARD, OREGON BUILDING FUND , SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 Variance Revised Favorable/ Budget Actual (Unfavorable) REVENUES: ' Licenses and Permits $ 895,824 $ 612,970 $ (282,854) Charges for services 7,075 7,075 Miscellaneous 556 556 , Interest 13,000 13,687 687 Total Revenues 908,824 634,288 (274,536) ' EXPENDITURES: Public Works 10,595 10,426 169 ' Development Services 914,157 726,701 187,456 Policy & Administration 134,793 128,809 5,984 City-wide support functions 24,974 23,691 1,283 , Contingency 46,752 46,752 Total expenditures 1,131,271 889,627 241,644 EXCESS OF REVENUES OVER (UNDER) r EXPENDITURES (222,447) (255,339) (32,892) UNDESIGNATED, UNRESERVED - FUND BALANCE , BEGINNING OF YEAR 398,243 356,238 (42,005) UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 175,796 $ 100,899 $ (74,897) 41 , CITY OF TIGARD, OREGON ' URBAN SERVICES - TIF FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 ! Variance Favorable/ Budget Actual (Unfavorable) ' REVENUES: Licenses and Permits $ 434,300 $ 261,330 $ (172,970) Interest 8,456 8,456 Total Revenues 434,300 269,786 (164,514) EXPENDITURES: ' Development services 24,847 24,660 187 Capital projects 444,453 - 444,453 ' Total expenditures 469,300 24,660 444,640 EXCESS OF REVENUES OVER (UNDER) ' EXPENDITURES (35,000) 245,126 280,126 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 35,000 35,480 480 ! UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ - $ 280,606 $ 280,606 ! 1 ' 42 CITY OF TIGARD, OREGON URBAN SERVICES FUND , SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 Variance Revised Favorable/ ' Budget Actual (Unfavorable) REVENUES: Intergovernmental revenues $ 97,536 $ 97,536 $ - , Licenses and Permits 701,689 358,688 (343,001) Charges for services 11,988 6,283 (5,705) Interest 14,397 14,397 , Total Revenues 811,213 476,904 (334,309) EXPENDITURES: ' Public Works 109,485 102,280 7,205 Development Services 492,696 400,313 92,383 ' Policy and Administration 70,243 67,135 3,108 City-wide support functions 8,325 7,897 428 Contingency 40,000 - 40,000 Total expenditures 720,749 577,625 143,124 ' EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 90,464 (100,721) _ (191,185) UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 190,000 190,717 717 UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 280,464 $ 89,996 $ (190,468) 43 , CITY OF TIGARD, OREGON ' TREE REPLACEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 i Variance ' Budget Actual (Unfavorable) REVENUES: Tree replacement revenue $ 50,000 $ 33,469 $ (16,531) Interest 11,200 9,759 (1,441) ' Total Revenues 61,200 43,228 (17,972) EXPENDITURES: Capital Projects 246,200 42,039 204,161 EXCESS OF REVENUES OVER (UNDER) ' EXPENDITURES (185,000) 1,189 186,189 UNDESIGNATED, UNRESERVED - FUND BALANCE ' BEGINNING OF YEAR 185,000 172,966 (12,034) UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ - $ 174,155 $ 174,155 1 1 1 1 CITY OF TIGARD , Debt Service Funds The Debt Service Funds account for the payment of debt principal and interest. The City's debt service funds consist of: i ' General Obligation Bond Debt Service Fund Bancroft Bond Debt Service Fund i 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. CITY OF TIGARD, OREGON ' DEBT SERVICE FUNDS COMBINING BALANCE SHEET , June 30, 1998 General Obligation Bancroft ' Bond Debt Bond Debt Service Fund Service Fund Total ASSETS: ' Cash and investments $ - $ 216,103 $ 216,103 Property taxes receivable 62,279 62,279 Assessment liens receivable 5,848,881 5,848,881 Accrued interest on delinq. assess. 37,586 37,586 Total assets $ 62,279 $ 6,102,570 $ 6,164,849 ' i LIABILITIES AND FUND BALANCES: LIABILITIES: , Accounts payable and accrued liabilities $ 26,489 $ - $ 26,489 Deferred revenues: ' Property taxes 45,331 45,331 Assessment liens receivable 5,848,731 5,848,731 Accrued interest on delinquent ' assessments 37,586 37,586 Total liabilities 71,820 5,886,317 5,958,137 FUND BALANCES (DEFICIT)- UNRESERVED AND DESIGNATED FOR DEBT SERVICE (9,541) 216,253 206,712 Total liabilities and fund balances $ 62,279 $ 6,102,570 $ 6,164,849 ' 45 ' CITY OF TIGARD, OREGON DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES for the fiscal year ended June 30, 1998 General ' Obligation Bancroft Bond Debt Bond Debt Service Fund Service Fund Total ' REVENUES: Taxes $ 1,597,880 $ - $ 1,597,880 ' Special assessments 173,947 173,947 Miscellaneous Earnings 119,194 119,194 Interest Earnings 39,564 18,616 58,180 Total revenues 1,637,444 311,757 1,949,201 ' EXPENDITURES: Debt service 1,651,235 520,307 2,171,542 Revenues under expenditures (13,791) (208,550) (222,341) ' UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR-AS PREVIOUSLY STATED 4,250 1,256,803 1,261,053 ' PRIOR PERIOD ADJUSTMENT (NOTE 18) (832,000) (832,000) UNDESIGNATED, UNRESERVED, (DEFICIT) - FUND ' BALANCE - END OF YEAR - AS RESTATED $ (9,541) $ 216,253 $ 206,712 ' 46 1 CITY OF TIGARD OREGON ' GENERAL OBLIGATION BOND DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL ' for the fiscal year ended June 30, 1998 Variance Favorable/ , Budget Actual (Unfavorable) REVENUES: ' Taxes $ 1,599,675 $ 1,597,880 $ (1,795) Interest 20,000 39,564 19,564 , Total revenues 1,619,675 1,637,444 17,769 EXPENDITURES: Debt service 1,651,235 1,651,235 - EXCESS OF REVENUES OVER (UNDER) ' EXPENDITURES (31,560) (13,791) 17,769 UNDESIGNATED, UNRESERVED - FUND BALANCE ' BEGINNING OF YEAR 31,560 4,250 (27,310) UNDESIGNATED, UNRESERVED, (DEFICIT) - FUND ' BALANCE END OF YEAR $ - $ (9,541) $ (9,541) t 47 ' ' CITY OF TIGARD, OREGON BANCROFT BOND DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL ' for the fiscal year ended June 30, 1998 1 Variance Budget Actual Favorable ' REVENUES: Collection of bonded assessments $ 163,449 $ 173,947 $ 10,498 Miscellaneous revenues 116,284 119,194 2,910 ' Interest 13,000 18,616 5,616 Total revenues 292,733 311,757 19,024 ' EXPENDITURES: Debt service 514,315 520,307 (5,992) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (221,582) (208,550) 13,032 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR-AS PREVIOUSLY STATED 533,549 1,256,803 723,254 ' PRIOR PERIOD ADJUSTMENT (NOTE 18) (832,000) (832,000) UNDESIGNATED, UNRESERVED - FUND BALANCE ' END OF YEAR-AS RESTATED $ 311,967 $ 216,253 $ (95,714) 1 ' 48 CITY OF TIGARD ' Capital Projects Funds The Capital Projects Funds are used to account for the construction of major capital projects and include: ' Local Improvement Capital Projects Fund - funded by proceeds from the sale of bond anticipation notes and other short-term debt. Metro Greenspaces Fund - accounts for monies received from Washington County to be used for greenspace property acquisition ' and improvements. Park Levy Capital 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. 1 CITY OF TIGARD, OREGON CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET , June 30, 1998 Local Improvement Park levy , Capital Metro Capital Projects Greenspaces Improvement Facility Fund Fund Fund Fund Total , ASSETS: Cash and investments $ 46,603 $ - $ 194,810 $ - $ 241,413 Accounts receivable 52,362 52,362 , Due from other funds 109,060 109,060 Property taxes receivable 585 585 Total assets $ 46,603 $ 52,362 $ 195,395 $ 109,060 $ 403,420 ' LIABILITIES AND FUND BALANCES: ' LIABILITIES: Accounts payable and accrued liabilities $ 15,413 $ 52,362 $ 2,500 $ 105,297 $ 175,572 ' Deferred revenues 426 426 Total Liabilities 15,413 52,362 2,926 105,297 175,998 ' Fund balances - unreserved 31,190 192,469 3,763 227,422 Total liabilities and fund balances $ 46,603 $ 52,362 $ 195,395 $ 109,060 $ 403,420 t 49 ' ' CITY OF TIGARD OREGON ' CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES for the fiscal year ended June 30, 1998 ' Local Improvement Park levy Capital Metro Capital ' Projects Greenspaces Improvement Facility Fund Fund Fund Fund Total REVENUES: ' Property taxes $ - $ - $ 1,227 $ - $ 1,227 Intergovernmental revenues 44,555 44,555 Miscellaneous 296 161,000 161,296 ' Interest 31,823 1,950 10,350 9,571 53,694 Total revenues 32,119 46,505 11,577 170,571 260,772 ' EXPENDITURES: Capital Projects 1,629,128 46,505 2,763 370,540 2,048,936 ' EXCESS OF REVENUES (UNDER) EXPENDITURES (1,597,009) 8,814 (199,969) (1,788,164) UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR - AS PREVIOUSLY STATED 796,199 183,655 203,732 1,183,586 PRIOR PERIOD ADJUSTMENT (NOTE 18) 832,000 832,000 ' UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR - AS RESTATED $ 31,190 $ $ 192,469 $ 3,763 $ 227,422 I ' 50 CITY OF TIGARD, OREGON , LOCAL IMPROVEMENT CAPITAL PROJECTS FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 ' Variance Revised Favorable/ ' Budget Actual (Unfavorable) REVENUES: , Interest Earnings $ 76,000 $ 31,823 $ (44,177) Miscellaneous 296 296 ' Total Revenues 76,000 32,119 (43,881) EXPENDITURES: Capital projects 1,670,358 1,629,128 41,230 , EXCESS OF REVENUES (UNDER) EXPENDITURES (1,594,358) (1,597,009) (2,651) UNDESIGNATED, UNRESERVED - FUND BALANCE , BEGINNING OF YEAR - AS PREVIOUSLY STATED 1,594,358 796,199 (798,159) PRIOR PERIOD ADJUSTMENT (NOTE 18) 832,000 832,000 ' UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR- AS RESTATED $ - $ 31,190 $ 31,190 ' 51 ' ' CITY OF TIGARD OREGON METRO GREENSPACES FUND ' SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 ' Variance Favorable/ Budget Actual (Unfavorable) ' REVENUES: Intergovernmental revenues $ 633,000 $ 44,555 $ (588,445) Interest earnings 1,950 $1,950 Total revenues 633,000 46,505 (586,495) ' EXPENDITURES: Capital projects 631,224 46,505 584,719 EXCESS OF REVENUES OVER EXPENDITURES 1,776 (1,776) ' UNDESIGNATED, UNRESERVED, (DEFICIT) - FUND BALANCE BEGINNING OF YEAR (1,776) 1,776 ' UNDESIGNATED, UNRESERVED - FUND BALANCE - - END OF YEAR $ $ $ - 1 ' 52 CITY OF TIGARD, OREGON PARK LEVY CAPITAL IMPROVEMENT FUND ' SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 ` Variance ' Budget Actual Favorable REVENUES: , Property taxes $ - $ 1,227 $ 1,227 , Interest 9,000 10,350 1,350 Total revenues 9,000 11,577 2,577 EXPENDITURES: ' Capital projects 191,137 2,763 188,374 ' EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (182,137) 8,814 190,951 ' UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 182,137 183,655 1,518 UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ - $ 192,469 $ 192,469 53 CITY OF TIGARD, OREGON FACILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL ' for the fiscal year ended June 30, 1998 ' Variance Favorable/ Budget Actual (Unfavorable) REVENUES: ' Miscellaneous $ 150,000 $ 161,000 $ 11,000 Interest 15,000 9,571 (5,429) Total revenues 165,000 170,571 5,571 ' EXPENDITURES: Capital projects 403,704 370,540 33,164 EXCESS OF REVENUES OVER (UNDER) ' EXPENDITURES (238,704) (199,969) 38,735 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 238,704 203,732 (34,972) ' UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ - $ 3,763 $ 3,763 1 54 CITY OF TIGARD Enterprise Funds The Sewer and Storm Drainage 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 Drainage 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: Sewer Fund Storm Drainage Fund ' * * Storm Drainage Fund * * Water Quality and Quantity Fund Water Fund * * Water General Fund * * Water Systems Development Fund * * Water Capital Projects Fund CITY OF TIGARD, OREGON ENTERPRISE FUNDS COMBINING BALANCE SHEET ' June 30, 1998 Storm Sewer Drainage Water Fund Fund Fund Total ASSETS: Current assets: ' Cash and investments $ 2,735,996 $ 720,990 $ 8,721,804 $ 12,178,790 Accounts receivable 672,690 168,138 529,763 1,370,591 , Property taxes receivable 517 517 Inventory 168,395 168,395 Total current assets 3,408,686 889,128 9,420,479 13,718,293 ' Noncurrent assets: ' Restricted cash and investments 2,863,248 994,559 1,080,094 4,937,901 Fixed assets, net 6,689,910 7,213,446 24,187,244 38,090,600 Total noncurrent assets 9,553,158 8,208,005 25,267,338 43,028,501 ' Total assets $ 12,961,844 $ 9,097,133 $ 34,687,817 $ 56,746,794 LIABILITIES AND FUND EQUITY: ' LIABILITIES: Accounts payable and accrued ' liabilities $ 1,013,863 $ 66,579 $ 973,962 $ 2,054,404 Customer deposits 38,459 38,459 , Deferred Revenue 636 636 Accrued vacation payable 20,804 16,916 40,239 77,959 Total liabilities 1,034,667 83,495 1,053,296 2,171,458 i FUND EQUITY: Contributed capital 6,643,234 7,595,867 29,505,333 43,744,434 Retained earnings 5,283,943 1,417,771 4,129,188 10,830,902 Total fund equity 11,927,177 9,013,638 33,634,521 54,575,336 Total liabilities and fund equity $ 12,961,844 $ 9,097,133 $ 34,687,817 $ 56,746,794 55 , ' CITY OF TIGARD, OREGON ENTERPRISE FUNDS ' COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS for the fiscal year ended June 30, 1998 Storm Sewer Drainage Water ' Fund Fund Fund Total OPERATING REVENUES: Service charges $ 1,355,407 $ 1,269,781 $ 3,859,934 $ 6,485,122 ' Miscellaneous 36,756 77,601 47,749 162,106 Total operating revenues 1,392,163 1,347,382 3,907,683 6,647,228 ' OPERATING EXPENSES: Salaries and wages 449,679 420,302 2,434,922 3,304,903 ' Contracted services 66,706 66,706 General, administrative and other 226,775 211,961 1,227,949 1,666,685 Depreciation 267,106 234,973 678,028 1,180,107 ' Total operating expenses 943,560 867,236 4,407,605 6,218,401 Operating income (loss) 448,603 480,146 (499,922) 428,827 ' NONOPERATING REVENUE: 1 Interest revenue 284,179 91,952 596,012 972,143 Net Income 732,782 572,098 96,090 1,400,970 ' RECLASSIFICATION: Add depreciation on fixed assets donated or acquired from capital contributions that ' reduces contributed capital 206,720 178,187 598,922 983,829 Increase in retained earnings 939,502 750,285 695,012 2,384,799 ' RETAINED EARNINGS - beginning of year 4,344,441 667,486 3,434,176 8,446,103 RETAINED EARNINGS - end of year $ 5,283,943 $ 1,417,771 $ 4,129,188 $ 10,830,902 ' 56 CITY OF TIGARD, OREGON ' ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS ' for the fiscal year ended June 30, 1998 Storm , Sewer Drainage Water Fund Fund Fund Total Cash flows from operating activities: Operating income (loss) $ 448,603 $ 480,146 $ (499,922) $ 428,827 Adjustments to reconcile operating income (loss) to net cash provided ' by operating activities: Depreciation Expense 267,106 234,973 678,028 1,180,107 Decrease (increase) in accounts ' receivable 108,132 (25,922) 134,923 217,133 Decrease (increase) in inventory (18,571) (18,571) Increase (decrease) in accounts payable and accrued liabilities 51,053 (359,839) 723,458 414,672 ' Increase (decrease) in customer deposits (40,240) (40,240) Increase (decrease) in accrued vacation payable 1,498 (2,399) 5,212 4,311 Decrease in deferred revenues (514) (514) , Loss on disposal of fixed assets 539 152 691 Decrease in due to other funds (112,512) 4,725 (107,787) Net cash provided by , operating activities 876,931 214,447 987,252 2,078,630 Cash flows from capital and related ' financing activities: Capital contributions 1,030,986 1,030,986 Acquisition of fixed assets (31,532) (317,752) (3,264,854) (3,614,138) Net cash (used in) capital ' and related financing activities (31,532) (317,752) (2,233,868) (2,583,152) Cash flows from investing activities - ' Interest earnings 284,179 91,952 596,012 972,143 Net increase (decrease) in cash ' and cash equivalents 1,129,578 (11,353) (650,604) 467,621 Cash and cash equivalents - beginning of year 4,469,667 1,726,902 10,452,502 16,649,071 Cash and cash equivalents - end of year $ 5,599,245 $ 1,715,549 $ 9,801,898 $ 17,116,692 ' Supplemental Schedule of Noncash ' Capital and Related Financing Activities: Contributed sewer, storm and water lines $ 632,138 $ 293,697 $ 1,248,983 $ 2,174,818 57 , ' CITY OF TIGARD, OREGON SEWER FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL ' for the fiscal year ended June 30, 1998 Variance ' Favorable/ Budget Actual (Unfavorable) ' REVENUES: Service charge $ 1,390,075 $ 1,355,407 $ (34,668) Interest 203,000 284,179 81,179 ' Miscellaneous 75,000 36,756 (38,244) Total revenues 1,668,075 1,676,342 8,267 EXPENDITURES: Public Works 421,430 413,973 7,457 Development Services 59,364 58,018 1,346 Policy and administration 182,599 176,253 6,346 City-wide support function 41,623 39,485 2,138 ' Contingency 200,000 200,000 Capital projects 2,000,000 18,759 1,981,241 Total expenditures 2,905,016 706,488 2,198,528 r EXCESS OF REVENUES OVER (UNDER) (1,236,941) 969,854 2,206,795 EXPENDITURES UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 4,582,276 4,274,168 (308,108) UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 3,345,335 $ 5,244,022 $ 1,898,687 t 58 CITY OF TIGARD, OREGON STORM DRAINAGE FUND , SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 Variance ' Favorable/ Budget Actual (Unfavorable) REVENUES: ' Service charge $ 695,000 $ 1,114,369 $ 419,369 Interest 54,000 28,422 (25,578) Total revenues 749,000 1,142,791 393,791 EXPENDITURES: , Public Works 430,788 365,007 65,781 Development services 59,364 58,018 1,346 ' Policy and administration 166,015 160,365 5,650 City-wide support function 41,623 39,485 2,138 Contingency 75,000 75,000 Capital projects 700,000 139,749 560,251 ' Total expenditures 1,472,790 762,624 710,166 EXCESS OF REVENUES OVER (UNDER) ' EXPENDITURES (723,790) 380,167 1,103,957 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 763,543 791,488 27,945 UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 39,753 $ 1,171,655 $ 1,131,902 ' 59 CITY OF TIGARD, OREGON WATER QUALITY & QUANTITY FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 ' Variance Favorable/ Budget Actual (Unfavorable) REVENUES: ' Service charge $ 177,180 $ 155,412 $ (21,768) Interest 33,000 63,530 30,530 ' Miscellaneous 77,601 77,601 Total revenues 210,180 296,543 86,363 EXPENDITURES: Contingency 50,000 - 50,000 ' Capital projects 702,980 189,790 513,190 Total expenditures 752,980 189,790 563,190 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (542,800) 106,753 649,553 ' UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 589,342 515,836 (73,506) UNDESIGNATED, UNRESERVED - FUND BALANCE ' END OF YEAR $ 46,542 $ 622,589 $ 576,047 S ' 60 CITY OF TIGARD, OREGON WATER GENERAL FUND , SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 Variance Favorable/ ' Budget Actual (Unfavorable) REVENUES: Service charge $ 3,906,800 $ 3,859,934 $ (46,866) System Development Charges 732,490 693,327 (39,163) Interest 350,000 448,886 98,886 , Miscellaneous 37,400 47,749 10,349 Total revenues 5,026,690 5,049,897 23,207 EXPENDITURES: Public Works 3,478,652 3,319,878 158,774 , Policy and administration 252,727 243,421 9,306 City-wide support function 41,623 39,485 2,138 Contingency 300,000 300,000 , Capital projects 1,602,096 361,440 1,240,656 Total operating expenditures 5,675,098 3,964,224 1,710,874 EXCESS OF REVENUES OVER (UNDER) ' EXPENDITURES (648,408) 1,085,673 1,734,081 UNDESIGNATED, UNRESERVED - FUND BALANCE , BEGINNING OF YEAR 6,845,481 7,011,200 165,719 UNDESIGNATED, UNRESERVED - FUND BALANCE , END OF YEAR $ 6,197,073 $ 8,096,873 $ 1,899,800 i 61 ' CITY OF TIGARD, OREGON WATER SYSTEMS DEVELOPMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 Variance Favorable/ Budget Actual (Unfavorable) REVENUES: System development charges $ 239,760 $ 337,658 $ 97,898 ' Interest 125,000 114,822 (10,178) Total revenues 364,760 452,480 87,720 ' EXPENDITURES: Contingency 100,000 - 100,000 Capital projects 3,000,000 2,296,754 703,246 Total expenditures 3,100,000 2,296,754 803,246 EXCESS OF REVENUES (UNDER) EXPENDITURES (2,735,240) (1,844,274) 890,966 UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 2,817,118 2,758,107 (59,011) UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 81,878 $ 913,833 $ 831,955 ' 62 CITY OF TIGARD, OREGON WATER CAPITAL PROJECTS FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1998 1 Variance 1 Favorable/ Budget Actual (Unfavorable) REVENUES: Interest $ 36,000 $ 32,304 $ (3,697) EXPENDITURES: ! Capital projects 778,604 728,241 50,363 EXCESS OF REVENUES (UNDER) EXPENDITURES (742,604) (695,938) 46,666 , UNDESIGNATED, UNRESERVED - FUND BALANCE BEGINNING OF YEAR 742,604 742,841 237 1 UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ - $ 46,903 $ 46,903 ! i 1 1 1 i 63 , Fiduciary Funds These funds account for resources received and held by the City in a fiduciary capacity. Disbursements from these funds are made in accordance with the trust agreement or conditions of the trust for the particular fund. Funds included in this category are: Pension Trust Funds - General Employees Pension Plans Pension Trust Funds - Water Fund Employees Pension Plans 1 1 CITY OF TIGARD, OREGON PENSION TRUST FUNDS COMBINING STATEMENT OF PLAN NET ASSETS June 30, 1998 1 General Water Fund 1 Employees Employees Pension Pension Plan Plan Total 1 Cash and investments $ 505,607 $ 5,995,579 $ 6,501,186 Net assets held in trust for pension benefits $ 505,607 $ 5,995,579 $ 6,501,186 1 i 1 1 1 1 1 1 1 1 1 64 , 1 CITY OF TIGARD, OREGON t PENSION TRUST FUNDS COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS for the fiscal year ended June 30, 1998 ' General Water Fund Employees Employees Pension Pension ' Plan Plan Total Additions: ' Contributions $ 549,949 $ - $ 549,949 Interest 809,232 46,138 855,370 ' Total additions 1,359,181 46,138 1,405,319 Deductions: ' Benefit payments and withdrawals 177,897 143,587 321,484 Increase (decrease) in net assets 1,181,284 (97,449) 1,083,835 Net assets held in trust for pension benefits: Beginning of year 4,814,295 603,056 5,417,351 ' End of year $ 5,995,579 $ 505,607 $ 6,501,186 ' 65 CITY OF/TIGARD 1 1 1 1 General Fixed Assets Account Group ' This account group accounts for the City's investment in fixed assets, with the exception of those assets in the Enterprise Funds. 1 1 1 1 i 1 1 1 1 1 CITY OF TIGARD, OREGON SCHEDULE OF GENERAL FIXED ASSETS 1 BY SOURCE June 30, 1998 1 1998 , GENERAL FIXED ASSETS Land $ 3,667,904 1 Buildings 4,981,183 Office equipment 1,623,824 Equipment 991,221 Autos and trucks 1,201,648 Total general fixed assets $ 12,465,780 1 INVESTMENT IN GENERAL FIXED ASSETS BY SOURCE: 1 General fund $ 10,362,151 Special revenue funds 383,063 Capital projects funds 702,007 Donations 1,018,559 Total investment in general fixed assets $ 12,465,780 1 i 1 1 1 1 ~ 66 CITY OF TIGARD OREGON ' SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY June 30, 1998 1 Machinery, Equipment, Function and Activity Total Land Buildings and Other Community services: Police $ 1,357,493 $ - $ - $ 1,357,493 Library 462,609 462,609 Parks 323,309 323,309 Total community services 2,143,411 2,143,411 Community development: Administration 93,999 93,999 Building 166,757 166,757 Planning 35,842 35,842 Engineering 207,123 207,123 Operations/admin. 48,652 48,652 Operations/shops 48,342 48,342 Streets 454,480 454,480 Operations/management 25,556 25,556 1 Total community development 1,080,751 1,080,751 Policy and administration: Mayor and city council 20,110 20,110 ' City administration 54,259 54,259 Finance 74,474 74,474 Computer services 164,227 164,227 Accounting 46,962 46,962 Office services 67,036 67,036 Records 38,829 38,829 Court 9,774 9,774 ' Total policy and administration 475,671 475,671 General government 8,765,947 3,667,904 4,981,183 116,860 Total investment in general fixed assets $ 12,465,780 $ 3,667,904 $ 4,981,183 $ 3,816,693 ' 67 CITY OF TIGARD OREGON SCHEDULE OF CHANGES IN GENERALFIXED ASSETS BY FUNCTION AND ACTIVITY , for the fiscal year ended June 30, 1998 General General Fixed Assets Transfers/ Fixed Assets Function and Activity June 30, 1997 Additions Retirements June 30, 1998 Community services: Police $ 1,207,900 $ 245,101 $ (95,508) $ 1,357,493 Library 445,837 32,327 (15,555) 462,609 Parks 298,404 25,172 (267) 323,309 Total community services 1,952,141 302,600 (111,330) 2,143,411 , Community development: Administration 79,455 20,610 (6,066) 93,999 Building 154,404 18,232 (5,879) 166,757 Planning 29,575 13,017 (6,750) 35,842 Engineering 194,364 24,244 (11,485) 207,123 Operations/admin. 48,266 2,648 (2,262) 48,652 Operations/shops 48,080 572 (310) 48,342 Streets 445,155 10,098 (773) 454,480 Operations/management 25,556 - 25,556 Total community development 1,024,855 89,421 (33,525) 1,080,751 Policy and administration: ' Mayor and city council 11,895 8,215 - 20,110 City administration 54,865 6,129 (6,735) 54,259 Finance 75,663 - (1,189) 74,474 Computer services 163,064 44,115 (42,952) 164,227 Accounting 51,015 6,283 (10,336) 46,962 Office services 65,903 3,291 (2,158) 67,036 Records 43,004 - (4,175) 38,829 Court 7,499 3,680 (1,405) 9,774 Total policy and administration 472,908 71,713 (68,950) 475,671 General government 8,188,938 580,604 (3,595) 8,765,947 Total investment in general fixed assets $ 11,638,842 $ 1,044,338 $ (217,400) $ 12,465,780 68 ' ' Other Schedules ' Schedules included in this section are: ' Property Tax Transactions and Outstanding Balances Bond and Bond Interest Transactions Future Debt Service Requirements of Bancroft Improvement Bonds Future Debt Service Requirements of General Obligation Bonds CITY OF TIGARD, OREGON ' SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES ' for the fiscal year ended June 30, 1998 ' Property Add Property Taxes Levy as Taxes Receivable Extended Deduct Add Receivable June 30, by Discounts (Deduct) Add Deduct June 30, 1997 Assessor Allowed Adjustments Interest Collections 1998 1997-1998 $ - $ 8,470,116 $ (210,031) $ 6,715 $ 4,719 $ (8,046,361) $ 225,158 1996-1997 199,396 (9,007) 9,590 (139,044) 60,935 ' 1995-1996 48,434 (3,163) 4,680 (27,473) 22,478 1994-1995 24,221 (3,161) 4,936 (19,403) 6,593 ' 1993-1994 8,058 (29) 2,447 (9,081) 1,395 1992-1993 1,685 (296) 439 (1,280) 548 1991-1992 & Prior 2,382 (532) 815 (1,182) 1,483 $ 284,176 $ 8,470,116 $ (210,031) $ (9,473) $ 27,626 $ (8,243,824) $ 318,590 Property Taxes Cash Receivable Distributed as follows: Collections June 30, 1998 General Fund: Current $ 6,549,169 5 181,616 Prior years' levies 106,897 73,593 Total General Fund 6,656,066 255,209 Enterprise Funds: Current 3,074 517 Total Enterprise Funds 3,074 517 Debt service Funds: Current 1,570,679 43,542 Prior years' levies 27,201 18,737 Z' Total Debt Service Funds 1,597,880 62;279 i Capital Projects Funds: , Prior years' levies 1,227 585 Total Capital Projects Funds 1,227 585 Total $ 8,258,247 $ 318,590 69 ' CITY OF TIGARD, OREGON SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS ' for the fiscal year ended June 30, 1998 Bond Transactions Interest Transactions Out- Out- standing standing Original June 30, June 30, Bancroft Bonds Issue 1997 Matured Paid 1998 Matured Paid Issued September 1, 1982 $ 184,664 $ 10,000 $ - $ - $ 10,000 $ - $ - Issued August 1, 1990 2,244,000 395,000 235,000 (235,000) 160,000 20.295 20.295 Issued August 1, 1991 405,000 145,000 40,000 (40,000) 105,000 8,700 8,700 ' Issued May 1, 1983 660,000 610,000 610,000 29.520 29.520 $ 1,160,000 $ 275,000 $ (275,000) $ 885,000 $ 58,515 $ 58,515 General Obligation Bonds Issued May 1, 1993 $ 6,935,000 $ 3,965,000 $ 1,490,000 $ (1,490,000) $ 2,475,000 $ 161,235 $ 161,235 70 CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF BANCROFT IMPROVEMENT BONDS As of June 30, 1998 Issued Issued Issued Issued September 1, 1982 August 1, 1990 August 1, 1991 May 1, 1993 Year of Total Requirements 11.75% 6.00% to 6.30% 6.00% 4.10% to 5.00% Maturity Principal Interest Principal Interest Principal -Interest Principal Interest Principal Interest 1998-1999 $ 295,000 $ 38,569 $ 10,000 $ 160,000 $ 4,964 $ 40,000 $ 6,300 $ 85,000 $ 27,305 1999-2000 60,000 29,170 3,900 60,000 25,270 2000-2001 - 26,710 3,900 22,810 2001-2002 65,000 24,760 65,000 1,950 22,810 2002-2003 110,000 20,280 110,000 20,280 2003-2004 - 17,750 17,750 2004-2005 - 17,750 17,750 2005-2006 355,000 8,875 355,000 8,875 Totals $ 885,000 $ 183,864 $ 10,000 $ - $ 160,000 $ 4,964 $ 105,000 $ 16,050 $ 610,000 $ 162,850 'Issue was called on 06/01/93. Amounts outstanding are bearer bonds which have not been presented for payment. CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF GENERAL OBLIGATION BONDS as of June 30, 1998 ( Issued May 3, 1993 ' Year of 3.00% to 4.75% Maturity Principal Interest 1998-1999 $ - $ 52,307 1999-2000 1,570,000 72,822 2000-2001 210,000 36,515 2001-2002 225,000 26,994 2002-2003 225,000 16,813 2003-2004 245,000 5,819 $ 2,475,000 $ 211,270 r i 72 CITY OF TIGARD , ~ STATISTICAL SECTION CITY OF TIGARD ' CITY OF TIGARD, OREGON GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION - BUDGETARY BASIS for the last ten fiscal years City-Wide Support Public Works Functions, Fiscal and Capital Year Ended Community Community Policy and Projects Debt ' June 30 Services Development Administration and Other Service Total 1989 $ 3,357,664 $ 1,980,927 $ 112,966 $ 3,177,147 $ 772,739 $ 9,401,443 1990 3,539,680 2,096,431 253,593 4,977,930 3,481,870 14,349,504 1991 4,347,338 2,558,534 281,180 7,216,338 J 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 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 ' 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 1997 6,537,097 3,507,919 1,699,813 3,182,818 2,117,957 17,045,603 1998 6,973,417 4,072,109 1,914,207 5,084,190 2,171,542 20,215,465 Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types ' 73 r CITY OF TIGARD, OREGON r GENERAL GOVERNMENTAL REVENUES BY SOURCES - BUDGETARY BASIS for the last ten fiscal years i Fiscal Licenses Inter- Charges Year Ended Franchise and governmental For Fines and Miscellaneous June 30, Taxes Fees Permits Revenues Services Forfeitures Revenues' Total 1989 $ 2,408,597. $ 1,031,791 $ 1,059,725 $ 1,517,777 $ 599,002 $ 240,849 $ 1,113,184 $ 7,970,925 1990 3,746,834 1,100,181 1,445,011 2,040,711 39,818 232,332 2,183,206 10,788,093 , 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 1993 5,493,516 1,320,686 1,682,341 3,073,728 301,569 316,947 1,599,480 13,788,267 c1994 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 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 19,845,515 1998 8,255,173 1,755,719 2,823,031 4,085,789 375,890 378,145 1,522,273 19,196,020 'Includes special assessments collections and private donations. Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types r r r r r r r 74 CITY OF TIGARD, OREGON PROPERTY TAX LEVIES AND COLLECTIONS ' for the last ten fiscal years 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 June 30 Levy Collections Collections Collections Collections Levy Taxes Levy 1989 $ 2,455,914 $ 2,240,508 91.23% $ 150,511 $ 2,391,019 97.36% $ 289,212 11.78% ' 1990 3,812,090 3,520,898 92.36% 193,334 3,714,232 97.43% 332,144 8.71% 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% 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% ' 1997 7,924,163 7,511,237 94.75% 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% ' Taxes are levied as of July 1 each year and are payable in three installments, without interest, on November 15, February 15, and May 15. Interest is charged at the rate of 1 % per month on delinquent taxes. Tax liens are foreclosed after three year's delinquencies. Taxpayers receive a discount of 3% for payment in full by November 15 and 2% for payment of two-thirds of the total taxes due. Information derived from Comprehensive Annual Financial Reports. i 1 1 ' 75 CITY OF TIGARD OREGON MARKET VALUE AND ASSESSED VALUE OF TAXABLE PROPERTY for the last ten fiscal years Market Value Assessed Value Fiscal Year Public Ended Real Personal Utility Total Total June 30 Property Property Property Market Value Assessed Value , 1989 $ 1,200,581,900 $ 93,401,270 $ 32,131,292 $ 1,326,114,462 $ 1,326,114,462 1990 1,278,128,284 106,268,976 38,738,512 1,423,135,772 1,423,135,772 1991 1,435,394,724 115,983,044 36,707,073 1,588,084,841 1,588,084,841 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 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 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 1998 3,122,530,514 205,073,620 97,363,138 3,424,967,272 2,711,669,298 All property is assessed as of July 1. Assessed value, up until June 30, 1997, was defined as market value according to Measure 5 which passed in 1990. A new property tax limitation known as 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 1997/98 Washington County summary of assessment and tax roll, assessed values for most properties are now about 78% of market value. Source: Washington County Department of Assessment and Taxation. , 76 ' CITY OF TIGARD, OREGON r_ ' SPECIAL ASSESSMENT COLLECTIONS for the last ten fiscal years Fiscal Year Current Ration of Total Ended Assessments Assessments Collections Outstanding 1 June 30 Due (1) Collected (2) to Amount Due Assessments 1989 $ 328,000 $ 372,584 113.59% $ 828,575 1990 693,000 818,094 118.05% 892,780 ' 1991 343,000 279,468 81.48% 3,181,495 1 1992 427,000 288,574 67.58% 2,900,352 1993 408,000 688,664 168.79% 2,380,059 1994 193,000 186,036 96.39% 2,250,041 1 1995 208,000 146,548 70.46% 2,088,745 1996 135,000 218,667 161.98% 1,846,910 1997 145,000 353,977 244.12% 1,608,224 ' 1998 275,000 173,947 63.25% 6,046,590 ' (1) This amount is equal to the matured principal on Bancroft improvement bonds. (2) Represents collections of current assessments for payment of Bancroft improvement bonds as well as assessment collections on projects for which such bonds have not been issued. Source: City assessment records 77 CITY OF TIGARD, OREGON PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS (Per $1,000 of Assessed Value) for the last ten fiscal years Tigard/ Washington Washington Fiscal Metzger Tualatin Beaverton Tualatin County County Year Metzger Water School School Tigard Unified Rural Fire Rural Fire Portland Education Other Ended Water District City of Washington District District Water Sewerage Protection District Community Service Taxing June 30 District Combined Tigard County No. 23-J No. 48 District Agency District No. 1 College District Agencies 1989 0.02 0.59 1.98 2.95 14.46 16.49 0.15 0.36 2.49 2.62 0.92 0.26 0.73 1990 0.02 0.61 2.79 2.02 14.54 16.67 0.13 0.27 2.52 0.94 0.26 1.69 1991 0.02 0.53 2.76 2.94 14.60 15.82 0.11 0.25 2.41 0.91 0.25 0.57 1992 0.02 0.48 2.76 1.41 16.73 13.44 0.09 0.19 1.99 0.81 0.21 0.49 1993 0.48 2.80 1.42 15.95 14.16 0.08 0.18 1.98 0.90 0.21 0.43 1994 0.42 2.77 1.36 15.58 13.39 0.08 0.12 1.88 0.87 0.20 0.37 CIO 1995 0.25 2.51 1.27 13.88 12.41 0.07 0.07 1.76 0.82 0.19 0.38 1996 0.25 2.18 1.52 14.01 12.07 0.06 0.09 1.66 0.79 0.18 0.38 1997 0.23 2.54 1.35 12.85 11.41 0.05 1.52 0.73 0.30 0.83 1998 0.27 3.12 2.60 6.60 6.16 1.54 0.37 0.78 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 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 overlappinq tax rates for property in Tiqard in 1998 ranqed from $13.02/1000 to $15.27/1000. Source: Washington County Department of Assessment and Taxation. r wr wr ~w w~ w w~ ~w ~r w~ rr ~w w~ w r ~ w r CITY OF TIGARD, OREGON RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA for the last ten fiscal years Gross General Ratio of Obligation Less Debt Net Bonded 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 1989 25,602 $ 1,326,114,462 $ 10,990,000 $ 45,028 $ 10,944,972 0.83% $ 427.50 1990 27,050 1,423,135,772 11,990,000 165,664 11,824,336 0.83% 437.13 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 ' 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 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 1 1997 35,925 3,111,388,324 5,125,000 4,514,054 610,946 0.02% 17.01 1998 36,680 2,711,669,298 3,360,000 206,712 3,153,288 0.12% 85.97 Excludes bond anticipation notes payable. Sources: City budget documents, Comprehensive Annual Financial Reports of the City and Washington County Department of 1 Assessment and Taxation. ' 79 CITY OF TIGARD, OREGON COMPUTATION OF LEGAL DEBT MARGIN June 30, 1998 ORS 287.004 provides a debt limit of 3% of the true cash value of all taxable property within the city boundaries: True cash value 1997-1998 1 $ 3,424,967,272 General obligation debt limit X 3% , 102,749,018 , Gross bonded debt $ 3,360,000 Excludable debt - Bancroft improvement bonds (885,000) i Debt subject to limitation 2,475,000 ' Legal debt margin - amount available for future indebtedness $ 100,274,018 Source: Washington County Department of Assessment and Taxation 80 ' 4 CITY OF TIGARD, OREGON 1 COMPUTATION OF OVERLAPPING GENERAL OBLIGATION DEBT June 30, 1998 Percent Amount Applicable Applicable Net Debt Inside City Inside City Jurisdiction Outstanding of Tigard of Tigard Tigard/Tualatin School District #23-J $ 36,403,463 52.9659% $ 19,281,422 Tri-Metropolitan Transport District 4,551,817 3.4752% 158,185 1 Port of Portland 725,094 3.1493% 22,835 Metro Service District 7,370,933 3.4933% 257,489 ' Beaverton School District #48 2,247,213 1.1544% 25,942 Portland Community College 2,343,231 4.5705% 107,097 Washington County 8,859,029 10.5647% 935,930 Unified Sewerage Agency 185,585 11.3856% 21,130 ' Tualatin Rural fire Protection District 34,249 11.8100% 4,045 Tualatin Valley Water (Metzer Bond) 1,695,950 59.5070% 1,009,209 ' City of Tigard 3,360,000 100.0000% 3,360,000 $ 67,776,564 $ 25,183,284 Source: Oregon State Treasury Debt Management Division 81 CITY OF TIGARD, OREGON RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR LONG-TERM DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES for the last ten fiscal years Total Percent of Debt , Fiscal Year Total General Service to Ended Debt Governmental Total General June 30 Principal Interest Service Expenditures Expenditures 1989 $ 418,000 $ 354,739 $ 772,739 $ 9,401,443 8.2% , 1990 2,383,000 1,098,870 3,481,870 14,349,504 24.3% 1991 3,034,760 1,123,199 4,157,959 18,561,349 22.4% 1992 1,664,000 979,174 2,643,174 14,789,158 17.9% 1993 1,939,000 713,428 2,652,428 13,539,981 19.6% i 1994 4,742,523 1 905,209 1 5,647,732 18,301,040 30.9% 1995 1,828,000 2 560,061 2 2,388,061 14,270,841 16.7% 1996 4,385,000 1 767,516 1 5,152,516 18,833,795 27.4% ' 1997 5,755,000 1 447,957 1 6,202,957 21,130,604 29.4% 1998 6,390,000 1 406,542 1 6,796,542 20,215,465 33.6% Source: Comprehensive Annual Financial Reports of the City. , (1) Includes bond anticipation notes principal and interest. (2) Includes bond anticipation notes interest and certificates of participation principal and interest ' 82 CITY OF TIGARD, OREGON PROPERTY VALUE AND CONSTRUCTION for the last ten fiscal years Commercial Residential ' Fiscal Year Construction (1) Construction (1) Ended Number of Number of June 30 Permits Value Permits Value 1989 212 $ 21,189,454 604 $ 35,826,025 ' 1990 320 27,495,457 749 40,729,414 ' 1991 62 27,985,499 268 28,160,790 1992 37 31,498,832 218 24,259,243 1993 28 25,685,703 408 43,687,254 1994 40 63,946,411 683 62,765,587 ' 1995 24 31,873,570 452 63,699,561 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 ' (1) From City of Tigard Building Department. Multi-family permits are included in the number of permits issued for residential construction. 83 CITY OF TIGARD, OREGON PRINCIPAL TAXPAYERS June 30, 1998 ' Percentage ' of Total Assessed Assessed Taxpayer Type of Business Valuation Valuation Pacific Realty Associates Oregon Business Park $ 131,887,503 4.86% Winmar Co. Washington Square Shopping Mall 117,107,007 4.32% SF Oregon Co Ltd. Lincoln Center Office Park 67,255,850 2.48% ' Spieker Properties Park 217 retail office center and Nelson Business Park 23,342,951 0.86% Portland Hotel Associates Embassy Suites Hotel 23,172,202 0.85% ' Robinson Trust Scholls Business Center 16,857,815 0.62% Real Estate Equities Joint Venture Meadow Creek Apartments 13,363,353 0.49% ' Costco/Wholesale Price/Costco 11,790,754 0.43% Pacific Corp. Tigard Marketplace Shopping Plaza 10,617,263 0.39% FIG Holding Co. Farmers Insurance 10,590,055 0.39% ' Total Principal Taxpayers 425,984,753 15.71% All Other Taxpayers 2,285,684,545 84.29% , Total $ 2,711,669,298 100.00% Source: City of Tigard Planning Department, estimated from Washington County Assessment & Taxation records. 84 , CITY OF TIGARD, OREGON DEMOGRAPHICS STATISTICS for the last ten years Assessed (2) Value Unemployment ' of Taxable (3) Rate (1) Property School Portland Fiscal year Population Per Capita Enrollment Metro Area 1989 25,602 $ 51,797 6,639 4.50% ' 1990 27,050 52,611 7,236 4.10% 1991 29,652 53,557 7,940 4.90% 1992 30,835 61,953 8,795 6.20% ' 1993 31,271 64,270 8,965 5.80% 1994 33,802 64,365 9,427 4.80% 1995 33,744 72,864 9,644 4.70% 1 1996 35,021 78,102 10,579 4.20% 1997 35,925 86,608 10,829 3.90% ' 1998 36,680 73,928 11,071 4.30% ' Sources of information: (1) State of Oregon, Department of Administrative Services ' (2) U.S. Bureau of Labor Statistics (3) Tigard/Tualatin School District #23-J r 85 CITY OF TIGARD, OREGON MISCELLANEOUS STATISTICAL DATA June 30, 1998 Date of Incorporation 1961 ' Form of government Council - Mayor - Manager Area 10.44 square miles ' Miles of streets 126.2 Number of street lights City owned 2,529 , City maintained (PGE owned) 691 Police protection: Number of stations 1 Number of policemen and officers 54 Education: ' Attendance Centers 14 Number of teachers 610 Number of students 11,071 Sanitary sewers 123 mi Storm lines 77 mi Open ditches 10.4 mi , Building Permits issued (1997-98) 175 Recreation and culture: , Number of parks 13 Number of libraries 1 ' Number of volumes (estimated) 115,069 Employees: Classified service (union) 174 Unclassified (non-union) 63 Information obtained from the various departments of the City of Tigard, r Oregon, and Tigard/Tualatin School District #23-J 86 1 ~ AUDIT COMMENTS AND e DISCLOSURES REQUIRED BY STATE REGULATIONS 1 1 1 ' CITY OF TIGARD 1 t PAULY, ROGERS AND CO., RC. ® CERTIFIED PUBLIC ACCOUNTANTS t • 12700 SW 72ND AVENUE TIGARD, OREGON 97223 August 28, 1998 • (503) 620-2632 • FAX (503) 684-7523 ' AUDITORS' COMMENTS AND DISCLOSURES Oregon Administrative Rules 162-10-000 through 162-16-000, the Minimum Standards 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: ' 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, 1998, and have issued our report thereon dated August 28, 1998. In planning and performing our audit of the general purpose financial statements of the City of Tigard, Oregon, for the year ended June 30, 1998, 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 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 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, and the State of ' Oregon, Secretary of State, Division of Audits. 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, 1998. t 1997-98 and 1998-99 BUDGETS t 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. 87 AUDITORS' COMMENTS AND DISCLOSURES (CONTINUED) ' STATE HIGHWAY FUNDS t 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. 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 less 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 The City's investments for the year ending June 30, 1998 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. , 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 any outstanding'endorsed warrants at June 30, 1998. ' 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. PAULY, ROGERS AND CO., P.C. X BY: Z i-1- I L. Parry A rsen, CPA 88 '