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CAFR Report - 2003-2004 4F 'If.~ 19a ()r ,a Cotyrehmivt AnnAd Fbmwid , o pxi, A. oIH r1 P+~` ,F y 1> ~ • !dhd~ i •r~A Ai ^IM I~ I ' ~ Wl~y,y L dl,l~ ^ k ~ a ~tifN 9 I 'q. ' x L J.. ~ Y" '+►fi~a»,~ 3Y9, 77''`b~ 'w~, r .~y ~ ' ~ J A ~ 4^~ q~,~..w.,~i., aF M-y~''1Ay _ M 6 ale I~ "r ~1,y'~ ~d~i~ , 4 y •u,. f YN ~~nxn~° Id VT. I 'I x ht*r„ r a ~ d I'L- h~l ~ I i , phP I ~ tlIIN ~.>u.0.a ~ ti ~k - I I~ ~ m4 u'u'"ic ...W 1, 1 I I ~ X ^ ~ }row'' .4 Wlk' w ry M Y/ = 4` - 'tl tilt "SM1~ - t' j, tl iscd Ye"' 00 N 16' V N I i ~ I I ~ IP d wl, > r t ; Hn- Comprehensive Annual Financial Report Cover Description/Narrative On the Front Cover: The featured gazebo is located in the Tupling Memorial Butterfly Garden, which is one of the many new features at Cook Park. Cook Park is one of the City's twelve parks and is the City's largest park at 79 acres. Other new features added during the Cook Park Expansion include sports fields, expanded parking, additional restrooms, concession stand, 4 acre wetland area, picnic shelter, playground, new maintenance building, trails, and pathways. The Cook Park Expansion, which cost over $2,000,000, was completed in Spring 2003. This Project was funded by a State loan from the Oregon Economic Community Development Department (OECDD), a State grant, and a generous donation from Christine Tupling. The obtainment of the OECDD loan at a favorable rate allowed the City to complete the expansion in one phase. By completing the project in one phase, the City saved over $471,000 in projected construction costs as well as minimizing interest costs. Cover photo courtesy of Sheryl Qualls, City of Tigard, Financial Operations. Cover design courtesy of Nancy Lof, City of Tigard, Office Services. 0 0 0 0 CITY OF TIGARD, OREGON 0 O 0 o COMPREHENSIVE ANNUAL FINANCIAL REPORT O For the fiscal year ended June 30, 2004 O O O Prepared by: O City of Tigard - Finance Department O O O O O O O O O O O O O O O O O O O O O O O 0 O L o V Ol V- O V 0 0 0 p City of Tigard, Oregon o Table of Contents O Page 0 INTRODUCTORY SECTION: 0 Letter of Transmittal 1-5 O Certificate of Achievement for Excellence in Financial Reporting 6 Organization Chart ..............................................................................7 0 Mayor and City Council Members ...................................................................8 FINANCIAL SECTION: Independent Auditors' Report .....................................................................9 Management's Discussion and Analysis 10-22 Basic Financial Statements Government-Wide Financial Statements Statement of Net Assets 23 Statement of Activities 24 Fund Financial Statements Major Governmental Funds: Balance Sheet ...........................................................................25 Statement of Revenues, Expenditures, and Changes in Fund Balances 26 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 27 Proprietary Funds: Statement of Net Assets ....................................................................28 Statement of Revenues, Expenses, and Changes in Fund Net Assets .................................29 Statement of Cash Flows ...................................................................30 Pension Trust Fund: Statement of Net Assets 31 Statement of Changes in Net Assets 31 Notes to Basic Financial Statements 32-48 Required Supplementary Information: Schedule of Revenues and Expenditures - Budget and Actual: General Fund ............................................................................49 Other Supplementary Information: Nonmajor Governmental Funds Combining Statements: Combining Balance Sheet 50 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 51 Special Revenue Funds: Combining Balance Sheet - Nonmajor Special Revenue Funds 52 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Special Revenue Funds 53 Schedules of Revenues and Expenditures - Budget and Actual: p Criminal Forfeiture Fund ....................................................................54 Gas Tax Fund 55 Parks Capital Fund ........................................................................56 • • • • • • City of Tigard, Oregon • Table of Contents, Continued • Page • FINANCIAL SECTION, Continued: Other Supplementary Information, Continued: • Special Revenue Funds, Continued: Schedules of Revenues and Expenditures - Budget and Actual, Continued: • Traffic Impact Fund ........................................................................57 Electrical Inspection Fund ...................................................................58 ' Underground Utility Fund ....................................................................59 Insurance Fund 60 • Building Fund 61 Urban Services Traffic Impact Fee Fund 62 • Urban Services Fund ......................................................................63 Tree Replacement Fund ....................................................................64 • Street Maintenance Fee Fund ................................................................65 Debt Service Funds: • Schedules of Revenues and Expenditures - Budget and Actual: Bancroft Debt Service Fund .................................................................66 • General Obligation Bond Debt Service Fund 67 Capital Projects Funds: • Combining Balance Sheet - Nonmajor Capital Projects Funds 68 Combining Statement of Revenues, Expenditures and • Changes in Fund Balances - Nonmajor Capital Projects Funds 69 Schedules of Revenues and Expenditures - Budget and Actual: • Facility Fund .............................................................................70 Dartmouth Local Improvement District /Capital Improvement Project Fund 71 • Wall Street Local Improvement District Fund 72 Proprietary Funds: Enterprise Funds: • Schedules of Revenues and Expenditures - Budget and Actual: • Sanitary Sewer Fund .......................................................................73 • Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses - Sanitary Sewer Fund ................................................74 • Storm Drainage Fund 75 Water Quality and Quantity Fund 76 • Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses - Storm Sewer Funds .................................................77 • Water General Fund .......................................................................78 • Water Systems Development Fund 79 Water Capital Projects Fund 80 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses- Water Funds 81 • Reconciliation of Budgetary Fund Balances to Generally Accepted • Accounting Principles Basis Net Assets 82 • Internal Service Funds: • Combining Statement of Net Assets 83 . Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 84 Combining Statement of Cash Flows 85 • Schedules of Revenues and Expenditures - Budget and Actual: • Central Service Fund .......................................................................86 • Fleet/Property Management Fund .............................................................87 • • • • • • • • • • City of Tigard, Oregon Table of Contents, Continued Page FINANCIAL SECTION, Continued: Other Supplementary Information, Continued: Capital Assets Used in the Operation of Governmental Funds: Comparative Schedules by Source ...........88 Schedule by Function and Activity 89 Schedule of Changes by Function and Activity 90 Other Schedules: Schedule of Property Tax Transactions and Outstanding Balances 91 Schedule of Bond and Bond Interest Transactions 92 Schedule of Future Debt Service Requirements of Long-term Notes Payable 93 Schedule of Future Debt Service Requirements of Bancroft Improvement Bonds 94 Schedule of Future Debt Service Requirements of General Obligation Bonds ....................................................................95 STATISTICAL SECTION: Government-wide Expenses by Function ............................................................96 Government-wide Revenues 97 General Governmental Expenditures By Function - Budgetary Basis - for the last ten fiscal years ......................................................................98 General Governmental Revenues By Sources - Budgetary Basis - for the last ten fiscal years 99 Property Tax Levies and Collections - for the last ten fiscal years 100 Market Value and Assessed Value of Taxable Property - for the last ten years 101 Special Assessment Collections - for the last ten fiscal years 102 Property Tax Rates - Direct and Overlapping Governments - for the last ten fiscal years 103 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita - for the last ten fiscal years 104 Computation of Legal Debt Margin - June 30, 2002 ....................................................105 Computation of Overlapping General Obligation Debt - June 30, 2003 106 Ratio of Annual Debt Service Expenditures for Long-Term Debt to Total General Governmental Expenditures for the last ten years 107 Property Value, Construction - for the last ten fiscal years 108 Principal Taxpayers - June 30, 2003 109 Demographic Statistics - for the last ten fiscal years 110 • Miscellaneous Statistical Data - June 30, 2003 111 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS: • • Auditors' Comments and Disclosures 112-114 • • • • • • • • • • • • • • • n r: 0 fl. O 0 INTRODUCTORY SECTION.' October 22, 2004 CITY OF TIGARD Citizens of Tigard OREGON Honorable Mayor Members of the City Council It is our pleasure to submit to you the Comprehensive Annual Financial Report of the City of Tigard, Oregon, for the fiscal year ended June 30, 2004. Oregon Revised Statutes (ORS) 297.425 requires that every municipal corporation publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. This report consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City's financial statements were audited by Pauly, Rogers, and Co., P.C., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2004, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by the management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City's basic financial statements for the fiscal year ended June 30, 2004, are fairly presented, in all material respects, in conformity with GAAP. The independent auditor's report on the Basic Financial Statements is included in the Financial Section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. Profile of the Government i The City of Tigard is located in eastern Washington County just 10 miles southwest of downtown Portland, Oregon along major highways; Interstate 5 and Highway 217. A state highway, 99W, runs north and south through the eastern portion of the City and is a major transportation corridor leading to the City of Portland. There is also a major greenway called Fanno Creek that connects neighborhoods to the natural environment and several of the City's parks. The incorporated area ' of the City represents 11.4 square miles and has a population of 44,070. From 1990 to 2000, the 1 13125 SW Hall Blvd., Tigard, OR 97223 (503) 639-4171 TDD (503) 684-2772 City's population grew 39%. The City is the eleventh largest city in the State of Oregon. It is projected that the City will have a population of over 47,000 by 2005. The City can extend its corporate limits by annexation which is permitted by state statute. Incorporated in 1961, the City is governed by an elected Mayor and four council members who comprise the City Council. The City's Charter established the Mayor/Council form of government. Each member of the City Council is elected at-large to serve a four-year term. The Mayor presides at Council meetings and is elected at-large for a four-year term. The Major and Council provide community leadership, develop policies to guide the City in delivering services and achieving community goals, and encourage citizen awareness and involvement. The City Council appoints a City Manager, who is the chief administrative officer of the City. The City Manager is responsible for ensuring Council policies are implemented using resources appropriated by the Council to achieve desired service results in the community. The City provides a full range of municipal services. These services include police, municipal court, community planning and development, parks, library, capital improvement planning, administration and central services, street maintenance, water, and other general public works activities. The City owns and maintains the wastewater and storm drainage system within the City limits under an agreement with Clean Water Services. Fire protection is provided by Tualatin Valley Fire and Rescue. The City maintains budgetary controls to ensure compliance with legal provisions in the annual appropriated budget adopted by the City Council. Activities of all funds are included in the annual adopted budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by program within each individual fund. As demonstrated by the statements and schedules included in the financial section of this report, the City continues meeting its responsibility for sound financial management. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Tigard operates. Local economy The City's location in the Portland metropolitan area provides citizens with many diverse • employment opportunities. The unemployment rate in the Portland metropolitan area averaged 8.06% during the year 2003; however, recent data on the unemployment rate shows it declining with the rate being 6.80% at June 30, 2004. Wholesale trade, retail trade, and the service industry all play a large role in Tigard's economy. • Retail trade has the most establishments; and the retail and service industries employ the most people. The City has within its boundaries one of the largest shopping malls in the region, Washington Square. The mall has five major department stores and more than 140 specialty shops. r ~ 2 Summary of Economic Data Number of Businesses, 2004 2,759 Jobs (1997 Economic Census estimate) 28,233 Median Household Income (2000) $51,581 Primary Economic Sector (receipts/sales) Wholesale Trade Tax Rate $2.51310 per $1000 of assessed value Total Assessed Value (2003) $3,754,359,399 Long-term financial planning The City has developed a comprehensive long-term financial forecast every year since the 1980's. By forecasting and anticipating financial trends, the City can develop strategies to respond to emerging financial trends. The City forecasts operating fund revenues and expenditures over a five-year period. The forecast is adjusted as each year's final results are known and as budgets are prepared for the following year. In addition, the City also prepares a five-year Capital Improvement Program (CIP) that is also updated every year. The CIP is developed through a process separate from, but parallel to the budget process. The impact on future operating and maintenance costs are projected from the CIP and then incorporated in the long-term financial forecast. Relevant financial policies The City of Tigard has an important responsibility to its citizens to carefully account for public funds, manage municipal finances wisely, and plan adequate funding of services and facilities desired and needed by the public. In support of this effort, the City has established a set of fiscal policies to ensure that the public's trust is upheld. With such fiscal policies, the City has established the framework under which it will conduct its fiscal affairs, ensuring that it is and will continue to be capable of funding and providing outstanding local government services. The goals of Tigard's fiscal policies are: To enhance the City Council's policy-making ability by providing accurate information on program and operating costs. To assist sound management of the City government by providing accurate and timely information on current and anticipated financial conditions. • To provide sound principles to guide important decisions of the Council and management which have significant fiscal impact. To set forth operational principles, which minimize the cost and financial risk of local government consistent with services, desired by the public. To employ revenue policies, which prevent undue or unbalanced reliance on any one source, distribute the cost of municipal services fairly and provide adequate funds to operate desired programs. 3 • • To provide and maintain essential public facilities, utilities, infrastructure, and capital equipment. To protect and enhance the City's credit rating. • To insure that all surplus cash is prudently invested in accordance with the investment policy adopted by the Council to protect City funds and realize a reasonable rate of return. Major initiatives The Tigard City Council meets at the beginning of each calendar year to'establish goals. Council goals comprise high-priority tasks or programs that the City Council intends to complete or initiate during the year, though attainment of these goals may take several years. The goals are based on Vision Task Force Goals, departmental needs, and City Council priorities. In the goal setting • meeting, the City Council reviews information and develops a short list of goals. Council goals set the priorities for City government and are incorporated into departmental work plans. The Council established the following goals for 2004: Goal 1 - Financial Strategy A. Develop and implement a sustainable long-term financial strategy for issues such as: 1. General Fund needs 2. Library 3. Transportation 4. Parks and open space 5. Washington Square regional center 6. Central Business District 7. Water system Goal 2 - Tigard Central Business District A. Support the activities of the Downtown Task Force as it defines a vision for redevelopment. B. Select a consultant to carry out the Transportation Growth Management (TGM) grant to create a redevelopment plan based upon the recommendations of the Task Force and Council. C. Choose a financing mechanism, such as tax increment financing, for carrying out the • redevelopment plan or vision. D. Broaden the Task Force to include citywide representation. Goal 3 - Transportation • A. Aggressively pursue solutions to congestion of state, county and city facilities that cross through Tigard. • 1. Re-forming the Transportation Financing Task Force. 2. Identify project priorities and funding needs for state and city facilities. B. Continue working with Tri-Met to carry out the Memorandum of Understanding and . identify and fund additional improvements with an emphasis on intra-city bus routes. ' C. Council shall meet with ODOT representatives at least once in 2004 to discuss state road facilities in Tigard and the related funding needs and priorities. • Goal 4 - Parks and Recreation A. Meet with the Park and Recreation Advisory Committee to: 1. Discuss the vision of the Task Force and the Council related to the City need for parks and recreation. 2. Discuss possible acquisition needs and financing for the City of Tigard as well as • unincorporated Bull Mountain. 3. Discuss options and interest in creating a park and recreation district. B. Continue to participate in discussions with the Tigard-Tualatin School District and . neighboring cities to consider the school district's funding needs. C. Meet with the Skate Park Committee and formulate a plan of action. 4 • • D. Continue to support the efforts of the Youth Forum. Goal 5 - Growth Management A. Continue looking at Bull Mountain and other urban areas for future annexation to the City. B. Develop a framework/timetable for a Comprehensive Plan update. C. Negotiate with Washington County staff to determine who will prepare the plan and zoning for the Urban Growth Boundary Extension Areas 63 and 64, and identify the source of funding for the plan. Goal 6 - Communication A. Increase Tigard's communication with other local officials and elected bodies through active participation of City Council members and staff. B. Improve and expand communication with citizens, particularly communicating successes and future concerns. C. Support the Tigard Beyond Tomorrow goal to maximize citizen involvement opportunities through educational programs by implementing a citizen leadership series. D. Investigate the possibility of supporting the mission of the Tigard Youth Advisory Council "to empower, improve and connect the lives of Tigard's youth" by adding a youth representative to all City boards and committees. E. Investigate the possibility of supporting the Tigard Beyond Tomorrow strategy to "encourage public participation through accessibility and education with an annual citizen's fair for community events and businesses." Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Tigard for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2003. This was the nineteenth consecutive year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the government also received the GFOA's Distinguished Budget Presentation Award for its annual budget for fiscal year 2004-2005. This was the seventeenth consecutive year that the government has received this prestigious award. In order to qualify for the Distinguished Budget Presentation Award, the government's budget document was judged to be proficient. in several categories, including as, a policy document, a financial plan, an operations guide, and a communications device. The preparation of this report was made possible by the dedicated service of the entire staff of the Finance Department and our auditors. Each member of the Department has our sincere appreciation for the contributions made in the preparation of this report. Credit also must be given to the Mayor and City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of Tigard's finances. • Respectfully submitted, illiam A. Monahan Craig Ptbsser City Manager Finance Director • • • 5 • 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, 2003 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to • government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. f Ofpj~ • OF ~ TN ~m W UNITED STATES y DD AN H ORATION President • ~ CDFIP S $7EffiL~,~pti • tHItAGO , Executive Director • • • • • • • 6 • • • • ORGANIZATION CHART City of Tigard, Oregon • • • Citizens • -777T Mayor & City City Council Attorney I City Manager " • • Police Library Public Works Community Engineering Cry Finance • J Development Administration • • • Administration Administration Administration Administration Engineering City Finance Department Management Depar tment • Operations Readers SeNces Sanitary Sewer Building Inspection Street Lights/Signals Mayor & Financial • Council Operations Support Technical Seruces Storm Sewer Current Human Resources Office SeNces Ser\Aces Planning • 1 1 Circulation Water Long Range Risk Management Records • Planning • • Street Network Seruces Municipal Court Maintenance • Fleet Maintenance • Property Mgmt. • • Parks and • Grounds • • • • • 7 • City of Tigard, Oregon • • PRINCIPAL OFFICIALS AS OF JUNE 30, 2004 • ELECTED OFFICIALS: • Name Term Expires Mayor Craig Dirksen December 31, 2004 Councilor Tom Woodruff December 31, 2004 • Councilor Brian Moore December 31, 2004 Councilor Sydney Sherwood December 31, 2006 Councilor Nick Wilson December 31, 2006 APPOINTED OFFICIALS: William A. Monahan, City Manager Craig Prosser, Finance Director • • • • All may be reached at: • 13125 SW Hall Boulevard • Tigard, OR 97223 • • LEGAL COUNSEL • Ramis, Crew, Corrigan & Bachrach • 1727 NW Hoyt Street • Portland, OR 97209 • • • • • • • • g • • • FINANCIAL SECTION S PAULY, ROGERS AND CO., P.C. firrie CERTIFIED PUBLIC ACCOUNTANTS • 12700 SW 72ND AVENUE • TIGARD, OREGON 97223 • (503) 620-2632 • FAX (503) 684-7523 October 22, 2004 To the City Council and Citizens City of Tigard, Oregon Tigard, Oregon INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Tigard, Oregon as of and for the year ended June 30, 2004, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Tigard, Oregon, as of June 30, 2004, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Management's discussion and analysis commencing on page 10 is not a required part of the basic financial statements, but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of this required supplementary information. However, we did not audit the information and express no opinion on • it. • Our audit was conducted for the purpose of forming opinions on the financial statements that collectively • comprise the City's basic financial statements. The accompanying supplementary information including the budgetary comparison information for the General Fund (which is required supplementary • information), and the combining and individual nonmajor fund financial statements, as listed in the table of • contents, are presented for purposes of additional analysis, and are not a required part of the basic financial statements. Such required supplementary information and supplementary information has been • subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects, in relation to the basic financial statements taken as a • whole. Other supplementary information, other than management's discussion and analysis, such as the • introductory section and the statistical section, have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. • , 4 1.c. • • 9 • • • 1~~~~~ Management's Discussion and Analysis As management of the City of Tigard, we offer readers this narrative overview and analysis of the financial activities of the City of Tigard for the fiscal year ended June 30, 2004. This Management's Discussion and Analysis (MD&A) is based on currently known facts, decisions, and conditions that existed as of the date of the independent auditor's report. We encourage readers to consider the information presented here in conjunction with the transmittal letter at the front of this report and the City's financial statements which follow this discussion and analysis. Financial Highlights The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $265.8 million (net assets). Of this amount, $41.1 million (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors. • The City's net assets increased $4.1 million over the course of this year's operations. Within this total the net assets of our business-type activities increased by $3.0 million or nearly 4.1%, and net assets of our governmental activities also increased by $1.1 million or.6%. 0 During the fiscal year, the City generated $23.5 million in taxes, charges for services, and other revenues for governmental programs while incurring expenses from governmental activities totaling $22.4 million, for an increase in net assets of $1.1 million. • In the City's business-type activities, operating revenues decreased by less than $.3 million or 2.8%, while operating expenses increased by $.3 million or 4.1 • • • As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $22.9 million, a decrease of $9.0 million. The majority of the decrease is directly attributable to the completion of a new library and • the related capital expenditures. • 0 At the end of the fiscal year, unreserved fund balance for the General Fund was $8.4 • million, an increase of $.5 million or 5.9% from the previous year. • • The City's total debt decreased by $1.4 million during the fiscal year. The key factors • in this reduction where a combination of the early retirement of some local • improvement bonds and normal annual debt service payments on both the general • obligation bonds and long-term note. Overview of the Financial Statements • • In addition to this discussion and analysis, the financial section of this annual report • contains the basic financial statements, required supplementary information, and the • combining statements and schedules of the non-major finds. • The basic financial statements also include notes that explain the information in the • financial statements and provide more details. The statements are followed by the • • 10 • • • section, required supplementary information that further explains and supports the information in the financial statements. The following chart illustrates how the various sections of this annual report are arranged relative to another. Required Elements of the Comprehensive Annual Financial Report MANAGEMENT'S DISCUSSION AND ANALYSIS FINANCIAL STATEMENTS Government-wide (full accrual) Fund • Governmental Activities Governmental (modified accrual) Business-type Activities Proprietary (full accrual) Notes to Basic Financial Statements • 1 REQUIRED SUPPLEMENTAL INFORMATION (other than MD&A) • Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in a future fiscal period. Examples of such items • include earned, but uncollected property taxes, and earned, but unused compensated . absences. Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include the following: • Community services, police, library, and social services • Public works, including parks and recreation 11 ~ • Development services, planning and engineering • Policy and administration The business-type activities of the City include the following: • Sanitary sewer • Storm water • Water The government-wide financial statements can be found on pages 23-24 of this report. Fund Financial Statements are designed to demonstrate compliance with finance- related legal requirements overseeing the use of fund accounting. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities and objectives. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of available resources, as well as on balances of available resources at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long-term impact of the City's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 18 individual governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for those funds that are considered significant (major) to the City taken as a whole. These financial statements report three major funds: General Fund, Facility Fund, and Bancroft Debt Service Fund. Data from the other 15 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. In fiscal year 2003, the City closed four funds to consolidate like activities. This trend continued with the beginning fund balance in the Tree Replacement Fund transferred to the Parks Capital Fund to close out this fund and finalize consolidation of park capital improvement activities. Also, through a supplemental budget process, the City Council established a Street Maintenance Fee Fund. This fund was created to track the revenues and expenses for the Street Maintenance Fee that the City Council approved through Ordinance No. 03-10 in November, 2003. This new fee will be used for the repair of roads throughout the City and individual projects are targeted to address the $4.0 million backlog of street repairs that need to be completed. The City adopts an annual appropriated budget for all of its funds. A budgetary comparison statement has been provided for each fund individually to demonstrate • compliance with their budgets. 12 • • • • The basic governmental fund financial statements can be found on pages 25-27 of this report. • Proprietary funds are used to account for a government's business-type activities. The City maintains two different types of proprietary funds - enterprise funds and internal • service funds. Enterprise funds are used to report the same functions presented as business-type activities in the governmental-wide financial statements. The City uses • enterprise funds to account for its sanitary sewer, storm water, and water operations. • Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for fleet maintenance, risk management, office services, finance and accounting, and other management services. • The City reports all three of the enterprise funds as major funds. These funds are the • Sanitary Sewer Fund; the Storm Sewer Fund, which consists of the Storm Sewer Fund and the Water Quality/Quantity Fund; and the Water Fund, which includes the Water Fund, Water SDC Fund, and Water CIP Fund. However, for budgetary and legal • purposes these funds are accounted for separately. Conversely, all internal service • funds are combined into a single, aggregated presentation in the proprietary fund • financial statements. Individual fund data for the internal service funds is provided as other supplementary information. The City also adopts an annual appropriated budget for all proprietary funds. To demonstrate compliance with the budget, budgetary comparison statements have been • • provided for the enterprise funds as other supplementary information on pages 73-82 of this report. Budgetary comparisons for the internal service funds are provided on pages • 83-87 of this report. • • The proprietary fund financial statements can be found on pages 28-30 in the basic • financial statements. • Fiduciary funds are used to report assets held in a trustee or agency capacity for • others and therefore cannot be used to support the government's own programs. The City has a pension trust fund that accounts for employee defined contribution plans. • Notes to the Basic Financial Statements provide additional information that is • essential to a full understanding of the data provided in the government-wide and fund • financial statements. The notes to the financial statements can be found on pages 32- • 48 of this report. The combining statements referred to earlier in connection with non-major governmental funds and business-type funds are presented immediately following the notes to the • financial statements. Combining and individual fund statements and schedules can be found on pages 52-65 of this report. • • Government-Wide Financial Analysis • Net assets. As noted earlier, net assets may serve over time as a useful indicator of the City's financial position. In the case of the City, assets exceeded liabilities by $265.8 million at the close of the most recent fiscal year. • • • 13 • The largest portion of the City's net assets (81.2%) reflects its investment in capital assets (e.g., land, buildings, roads, sewers, storm water facilities, etc.); less any related debt used to acquire those assets that is still outstanding. The majority of these capital assets are part of the City infrastructure and, therefore, these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since capital assets themselves cannot be used to liquidate these liabilities. City of Tigard, Oregon Net Assets as of Fiscal Year-end (in millions) Governmental Business-type Activities Activities Total Assets 2004 2003 2004 2003 2004 2003 Current and other assets $ 32.0 $ 39.9 $ 27.1 $ 26.2 $ 59.1 $ 66.1 Net capital assets 181.8 171.9 50.2 48.0 232.0 219.9 Total assets 213.8 211.8 77.3 74.2 291.1 286.0 Liabilities Other liabilities 6.4 6.1 1.7 1.6 8.1 7.7 Long-term debt outstanding 17.1 16.5 - - 17.1 16.5 Total liabilities 23.5 22.6 1.7 1.6 25.2 24.2 Net Assets Invested in captial assets, net of related debt 167.3 165.6 50.2 48.0 217.5 213.6 Restricted 1.8 2.5 5.5 5.8 7.3 8.3 Unrestricted 21.2 21.1 19.90 18.8 41.1 39.9 Total net assets $190.3 $189.2 $75.6 $ 72.6 $ 265.9 $ 261.8 The City's net assets increased by $4.1 million during the fiscal year. The largest portion of this increase is related to the increase in charges for services. The substantial increase in charges for services from Governmental Activities is a direct result of the allocation of license and permit fees in addition to some fine & forfeiture revenues directly to program activities instead of as general revenues. The remainder of the growth can be directly related to increases in service charges from the water utility operations and other fees that are adjusted annually based on certain price indexes. The increase in the expenses for policy and administration is due in part to the recording of the disposal of fixed assets. In previous years, this loss/disposal was recorded as an adjustment to general revenues. This resulted in showing a significant change in the growth of net assets from the previous fiscal year in Governmental activities. The revenues and expenses shown on the next table explain changes in net assets for fiscal year 2004. 14 • City of Tigard, Oregon • Changes in Net Assets • (in millions) Governmental Business-type • Activities Activities Total FY 03-04 FY 02-03 FY 03-04 FY 02-03 FY 03-04 FY 02-03 Revenues Program revenues • Charges for services $ 4.5 $ 0.1 $ 10.2 $ 10.0 $ 14.7 $ 10.1 Operating grants and contributions 0.3 0.1 - - 0.3 0.1 Total Program Revenues 4.8 0.2 10.2 10.0 15.0 10.2 Taxes 9.8 10.5 - - 9.8 10.5 • Interest 0.9 0.9 0.4 0.6 1.3 1.5 • Other 8.0 11.3 0.0 0.3 8.0 11.6 Total General Revenues 18.7 22.7 0.4 0.9 19.1 23.6 Total revenues 23.5 22.9 10.6 10.9 34.1 33.8 . Expenses Community services 8.7 8.1 - - 8.7 8.1 Public works 2.7 1.9 - 2.7 1.9 • Development services 3.8 3.3 - - 3.8 3.3 • Policy and administration 6.2 3.5 - - 6.2 3.5 Interest on long-term debt 1.0 0.6 - - 1.0 0.6 Sewer - - 0.9 0.9 0.9 0.9 • Storm water - - 1.1 1.1 1.1 1.1 Water - - 5.6 5.3 5.6 5.3 • Total expenses 22.4 17.4 7.6 7.3 30.0 24.7 Changes in net assets 1.1 5.4 3.0 3.6 4.1 9.1 • Beginning net assets 189.2 183.7 72.6 69.0 261.8 252.7 Ending net assets $ 190.3 $189.1 $ 75.6 $ 72.6 $ 265.9 $ 261.8 • Revenues • Governmental Activities • Property taxes continue to be a major source of revenue for the funding of City • programs. Oregon voters passed Measure 50, a State Constitutional Amendment, • which fundamentally changed property tax calculation and administration in Oregon in May 1997. Measure 50 converted operating property tax authority from a "levy-based" • system to a "rate-based" system, and it became effective in FY 1997-98. The City's tax • base, which was $6,891,856 in FY 1997-98, was converted to a permanent tax rate of • $2.5131 by the measure. The measure established FY 1997-98 assessed value at FY 1995-96 values less 10%. • • The permanent rate is multiplied by the assessed value each year to arrive at the tax authority for that year. Assessed value growth is limited to 3% per year, plus a pro-rated • share of new construction and annexations. The City has seen significant growth in construction since then and the annexation of the Walnut Island area which occurred in FY 1999-00. • Measure 50 did not change the basis for calculating General Obligation (GO) debt service levies. GO debt service levies are calculated to produce enough tax revenues that (when combined with other resources such as interest earnings and fund balance) • will be enough to pay debt service due on these voter approved bonds. On May 21, • 2002, voters approved a bond measure in the amount of $13.0 million for a new library. 15 • • • • The City sold the bonds to the Oregon Economic and Community Development Department. Taxes collected through the tax levy will repay this bonded debt. Both other revenues and charges for services combined constitute 53% of total revenues and the primary sources include the following: • Franchise fees are charged to public utilities for the use of the public right-of-way. Franchised activities paying the fee include electricity, natural gas, telecommunications, cable television, and solid waste haulers - $2,431,324. • Licenses and permit revenues include fees charged primarily relating to development activities in the City - $288,446. • Intergovernmental revenue is the other significant revenue category in other revenues and totals $2,367,882. These revenue sources include state shared revenues such as gas tax, cigarette tax, liquor tax, and revenue sharing. In addition, this category also includes the City's portion of the Washington County Cooperative Library System (WCCLS) levy and the countywide Hotel/Motel Tax. • Charges for service includes a variety of land use planning and permit fees, library fines, and other miscellaneous types of fees and charges - $1,532,601. Governmental Activities Fiscal Year 2004 Revenues by Source $23,493,191 I Interest, $890,785 Taxes, $9,763,281 4% 42% \ Other, $8,057,604 \ r.y 34% Operating Grants Charges for and Service, • Contributions, $4,528,716 $252,805 19% • 1% Business-type Activities Charges for services represent 96% of total revenues and are composed of fees that are charged to all users for services provided such as water, sanitary sewer, and storm water. The sanitary and storm water fees are established by Clean Water Services and are set by the agency each year. The City Council, through an intergovernmental agreement with other water system participants, sets the water rates. • 16 • Expenses Governmental Activities Expenses related to governmental activities are shown in the chart below and are expressed as a percent of total expenses for all governmental activities. The majority of the expenses (42%) relate to the City Library and Police Department within the Community services activity. Overall, expenses in Governmental activities increased by $5.0 million over the previous fiscal year. The majority of this increase was the result of the change in recording of the. disposal of fixed assets in policy and administration and the increase in depreciation expense in Public works. Expenses by Service Type Fiscal Year 2004 • Governmental Activites $22,394,907 • • Interest on long- Policy and term debt, $947,848 administration, 5% Community • $6,175,917 services, $8,744,613 22% 42% • • k Development • services, $3,791,317 Public works, 18% $2,735,212 • 13% • • • Business-type Activities The majority of the expenses (74%) relate to the drinking water service provider activity. Sewer and storm water expenses were essentially at the same level as the previous fiscal year. The increase of $.3 million in water is related to day-to-day inflationary factors. Expenses by Service Type Fiscal Year 2004 • Business-type Activites . $7,591,242 Sewer $945,102 • 12% \ Storm water, . $1,090,550 14%a Water • $5,555,590 74% • • 17 Financial Analysis of the City's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of the City's net resources available for spending at the end of the fiscal year. As of the end of the FY 2004, the City's governmental funds reported combined ending fund balances of $22.9 million. Of this amount, $7.3 million is reserved for capital projects, debt service, and prepaid insurance. General Fund The General Fund is the chief operating fund of the City. At the end of the FY 2004, the unreserved fund balance was $8.4 million and can be used for funding of City programs. This was an increase of approximately $.5 million over the previous fiscal year. This increase can be directly attributable to a decrease in the transfer to other funds of close to $.5 million. In FY 02-03, a one-time transfer was made to the Gas Tax Fund as an inter-fund loan in support of a local improvement district. The Gas Tax Fund will repay the loan over a five year period. Facilitv Fund This fund is used for future renewal, replacement, and expansion of City facilities. The decrease of $7.8 million in reserved fund balance was due to the substantial completion of a new library. The voters had approved a bond measure for the construction of a new library and the City also received bequests from two estates for support of children's art and enhancement of the new facility. Bancroft Debt Service Fund Revenue in this fund is derived from assessments on properties that participate in local improvement districts and from proceeds of Bancroft bonds to retire short-term debt issued to fund the local improvements. At the end of the FY 2004, the fund balance was $1.0 million, a decrease of close to $.2 million. During the year, the City issued a- bond to retire a note that had been used as temporary funding for a local improvement district. Proprietary Funds The City's proprietary funds include the Sanitary Sewer, Storm Sewer, Water Funds, and • Internal Services. The unrestricted net assets of the business-type activities which include the Sanitary Sewer, Storm Sewer, and Water Funds at the end of the year amounted to $19.7 million. The total growth in net assets for these funds was slightly over $2.9 million. The factors concerning the finances of the funds have already been addressed in the discussion of the City's business-type activities. • 18 • • • General Fund Budgetary Highlights The City Council approved 12 budget amendments to the adopted General Fund budget. Total increase in appropriations was $182,410. The changes can be briefly summarized as follows: • $144,902 increase in the Police Department for appropriating various grant funds as well as for the funding of vehicle replacements. • Increase of $24,832 in Engineering for the creation of the position of Right-of- Way Manager. • $10,568 for support of economic developments programs in the Community Development Department. • Increase of $2,108 for support of a local housing program. Capital Asset and Debt Administration Capital Assets Governmental Activities The City's investment in capital assets for its governmental activities as of June 30, 2004, amounts to $181.7 million (net of accumulated depreciation). This investment in capital assets primarily includes land, buildings, machinery and equipment, office equipment, and infrastructure. The infrastructure includes roads, curbs & sidewalks, signage, streetlights and right-of-ways. Construction in Progress represents that portion of the new library that was completed during the fiscal year. The new library opened its doors to the public in August, 2004. The total increase in the City's investment in governmental activities capital assets was 5.7%. Business-type Activities The City's investment in capital assets for its business-type activities as of June 30, 2004, amounts to $50.1 million (net of accumulated depreciation). In addition to machinery and equipment and vehicles, the capital assets include the sanitary sewer collection system, storm drainage, and water systems. Total increase in the City's investment in business-type activities capital assets was 4.2%. City of Tigard, Oregon Capital Assets at Year-end (Net of Depreciation) (in millions) Governmental Business-type Activities Activities Total 2004 2003 2004 2003 2004 2003 Land $ 5.8 $ 6.7 $ 1.0 $ 1.0 $ 6.8 $ 7.7 Construction in Progress 16.1 4.6 0.9 - 17.0 4.6 . Buildings and building improvements 5.7 4.3 0.7 0.7 6.4 5.0 Land improvements 2.4 1.9 0.0 0.0 2.4 1.9 Sewer System - - 11.8 10.5 11.8 10.5 Storm drainage system - - 9.8 9.6 9.8 9.6 • Water system - - 25.4 25.9 25.4 25.9 Machinery and equipment 0.2 1.0 0.0 0.1 0.3 1.0 Autos and trucks 0.3 0.3 0.5 0.3 0.8 0.6 Office equipment 0.0 1.1 - - 0.0 1.1 . Infrastructure 151.2 152.0 - - 151.2 152.0 . Total capital assets $181.7 $171.9 $ 50.1 $ 48.1 $ 231.8 $ 219.9 19 • r Additional information on the City's capital assets can be found in the notes on pages 41-42 of this report. Debt Outstanding As of year-end, the City had three types of debt currently outstanding, which are all governmental. They include general obligation bonds ($12.5 million) secured by the City's authority to levy property taxes, and assessment bonds ($3.7 million) secured by installment payment contracts with property owners. The third is a loan ($1.9 million) through the Oregon Economic Community Development Department (OECDD). This loan was secured by current and future park system development charges collected by the City. During the year, the City refinanced bond anticipation notes by issuing local improvement district bonds for the remaining properties in the Dartmouth Local Improvement District. The source of revenue for repayment of the bonds will be installment payments by the benefited property owners. In addition, the City retired the 1993-B Refunding Bancroft Bond and called a portion of the Dartmouth 1998 Bancroft Bond because of prepayments made by some property owners. The most recent bond rating occurred in 1993 and rating given by Moody's was Al. Existing debt levels have no direct impact on current or future City operations. The State of Oregon limits the amount of general obligation debt that cities can issue to 3 percent of the real market value of all taxable property within city limits. The City's total outstanding general obligation debt is significantly below the 3 percent limit of $154.6 million. Additional information on the City's debt can be found on pages 43-44 of this report. . City of Tigard, Oregon . Outstanding Debt at Fiscal Year-end (in millions) Total Totals Percentage 2004 2003 Change • Governmental: General obligation $ 12.5 $ 13.0 -3.8% Local improvement 3.7 2.4 54.2% Bond anticipation notes - 2.0 -100.0% Long-term note 1.9 2.1 -9.5% Total outstanding debt $ 18.1 $ 19.5 -7.2% S S r 20 Economic Factors Tigard's location in the Portland metropolitan area provides its citizens with many diverse employment opportunities. However, the unemployment rate in the Portland metropolitan area averaged 8.06% during the year 2003, representing an increase of • 3.3% from the previous year. February 2004 unemployment rates did show a slight • decline in the rate, but the Portland metropolitan area continues to have unemployment rates greater than the national average. Value added through new construction continues to increase assessed value. Due to the state of the economy, the increase is not as large as in previous years. The results of the first half of FY 03-04 showed building activity about the same or slightly higher than the same period in FY 02-03. The City of Tigard has developed a comprehensive long term financial forecast every year since the 1980s. This forecast allows the City to project expected revenues and expenditures for each of its funds to help anticipate financial requirements. • The Comprehensive Long Term Financial Forecast continues to be central to Tigard's financial management strategy. By forecasting and anticipating financial trends, Tigard • can develop strategies to respond to emerging financial trends. • The City forecasts operating fund revenues and expenditures over a five-year period. The forecast is adjusted as each year's final results are known and as new years are budgeted. • The City's current Five Year Financial Forecast shows that, overall, the City's current financial condition is good. The FY 2004-05 Budget continues to actively manage the expenditures of the General Fund. The financial forecast suggests, however, that strong financial management alone may not be sufficient to avoid future deficits. The demand for City services is greater than the resources available to pay for them. The financial forecast suggests the need to go to voters in the forecast period to request additional General Fund resources. The City continues to monitor its revenues and expenditures • and will continue to develop plans and options to manage its resources to continue to • provide quality services to its citizens. Funding for roads in the City continues to be an area of major concern, as it does for • most other cities in Oregon. Traditional funding sources such as the gas tax are simply • not adequate to meet projected needs and to build and maintain roads that can handle current and expected traffic loads. Maintenance of roads is being deferred, which creates larger capital needs in the future as deferred maintenance leads to break-down of the infrastructure. In response, the City Council adopted a new Street Maintenance Fee that went into effect in the spring of 2004. By the end of FY 03-04, the City had . collected over $124,000 for this program. The City is currently reviewing the need for water rate increases given the forecasted • operating and capital needs for the forecast period. • • • • r • r 21 In addition to the steps taken during the budget process, the City Council adopted a Strategic Finance Plan in April 2003. This plan identifies major financial issues expected over the next several years and several revenue options. Council organized the issues into "Major" and "Other" categories and then set top priorities within each category. The top priorities are: Maior Other Local Option Property Tax Fee Increases Bull Mountain Annexation Urban Renewal New Revenue Sources Water Revenue Bond Staff and the Council have already taken steps to review and make revisions to the City's Fees and Charges Resolution in addition to adopting a new Street Maintenance Fee. Requests for Information This financial report is designed to provide a general overview of the City of Tigard's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in the report or requests for additional financial information should be addressed to the Finance Director, City of Tigard, 13125 SW Hall Blvd., Tigard, Oregon 97223. r 22 0 0 - - L U of ~ _ a ~a TALC FINANCIAL' ..a 'f r' • ~ a f 1 r Y a . V " i ~ CITY OF TIGARD, OREGON STATEMENT OF NET ASSETS June 30, 2004 Governmental Business-Type Activities Activities Total ASSETS Cash and investments $ 27,412,355 $ 18,415,441 $ 45,827,796 Restricted cash and investments - 5,548,696 5,548,696 Accounts receivable 673,324 2,592,449 3,265,773 Property taxes receivable 388,096 17 388,113 Assessment liens receivable 3,471,643 - 3,471,643 Prepaid expenses 69,069 448,664 517,733 Inventory 21,927 103,869 125,796 Capital assets: Land and construction in process 21,859,465 1,889,394 23,748,859 Other capital assets (net of accumulated depreciation) 159,858,461 48,297,200 208,155,661 / Total Assets 213,754,340 77,295,730 291,050,070 LIABILITIES Accounts payable and accrued liabilities 2,900,958 1,441,255 4,342,213 Customer deposits 1,181,302 354,415 1,535,717 Due to (from) other activities 219,382 (219,382) - Accrued interest payable 435,405 - 435,405 Accrued compensated absences 616,320 107,106 723,426 Noncurrent liabilities: Due with one year Notes payable 210,563 - 210,563 Bond anticipation notes payable - - - Bonds payable 475,908 - 475,908 Special assessment bonded debt with government commitment 325,568 - 325,568 Due in more than one year Notes payable 1,681,637 - 1,681,637 Bonds payable 12,060,540 - 12,060,540 Special assessment bonded debt with government commitment 3,377,503 - 3,377,503 Total Liabilities 23,485,086 1,683,394 25,168,480 NET ASSETS Invested in capital assets, net of related debt 167,289,278 50,186,594 217,475,872 Restricted for: Capital projects - 5,548,698 5,548,698 Debt service 1,713,313 - 1,713,313 Other purposes 69,069 - 69,069 Unrestricted 21,197,594 19,877,044 41,074,638 Total Net Assets $ 190,269,254 $ 75,612,336 $ 265,881,590 The accompanying notes are an integral part of the basic financial statements. 23 r CITY OF TIGARD, OREGON STATEMENT OF ACTIVITIES For the fiscal year ended June 30, 2004 Program Revenues • Charges Operating • for Grants and • Functions/Programs Expenses Services Contributions Governmental activities: Community services $ 8,744,613 $ 114,454 $ 71,356 • Public works 2,735,212 603,352 181,449 • Development services 3,791,317 2,928,733 - Policy and administration 6,175,917 882,177 - Interest on long-term debt 947,848 - - Total governmental activities 22,394,907 4,528,716 252,805 • Business-type activities: Sewer 945,102 1,809,032 - Storm Water 1,090,550 1,156,863 - Water 5,555,590 7,202,910 - Total business-type activities 7,591,242 10,168,805 - • Total $ 29,986,149 $ 14,697,521 $ 252,805 ! General Revenues: Taxes • Franchise fees • Intergovernmental revenues Interest earnings Miscellaneous . Total general revenues, special items, and transfers . Change in net assets Net assets--beginning • Net assets--ending The accompanying notes are an integral part of the basic financial statements. • • • • • • • i • 24 • • • Net (Expense) Revenue and Changes in Net Assets Primary Government Governmental Business-Type Activities Activities Total $ (8,558,803) $ - $ (8,558,803) (1,950,411) - (1,950,411) (862,584) - (862,584) (5,293,740) - (5,293,740) (947,848) - (947,848) (17,613,386) - (17,613,386) 863,930 863,930 66,313 66,313 1,647,320 1,647,320 2,577,563 2,577,563 (17,613,386) 2,577,563 (15,035,823) 9,763,281 - 9,763,281 2,431,324 - 2,431,324 5,204,135 - 5,204,135 890,785 426,853 1,317,638 422,145 23,754 445,899 18,711,670 450,607 19,162,277 1,098,284 3,028,170 4,126,454 189,170,970 72,584,166 261,755,136 $ 190,269,254 $ 75,612,336 $ 265,881,590 • CITY OF TIGARD, OREGON • GOVERNMENTAL FUNDS BALANCE SHEET June 30, 2004 • • • Bancroft Other Total • General Facility Debt Service Governmental Governmental Fund Fund Fund Funds Funds • ASSETS Cash and investments $ 9,168,091 $ 4,934,519 $ 1,053,933 $ 11,065,347 $ 26,221,890 Accounts receivable 289,396 - - 383,884 673,280 Property taxes receivable 359,296 - 28,800 388,096 Assessment liens receivable - 3,344,436 127,207 3,471,643 Prepaid insurance 69,069 - 69,069 • Total assets $ 9,885,852 $ 4,934,519 $ 4,3981369 $ 11,605,238 $ 30,823,978 • LIABILITIES . Accounts payable and accrued liabilities $ 824,452 $ 761,997 $ 277 $ 1,092,712 $ 2,679,438 Customer deposits 383,933 - - 797,369 1,181,302 • Deferred revenues: . Property taxes 264,636 - 21,945 286,581 Assessment liens receivable - 3,344,471 426,845 3,771,316 • Accrued interest on delinquent assessments - 2,629 2,629 • Total liabilities 1,473,021 761,997 3,347,377 2,338,871 7,921,266 • FUND BALANCES Reserved for: Capital projects 4,172,522 - 1,312,684 5,485,206 • Debt service - 1,050,992 662,321 1,713,313 . Prepaid insurance 69,069 - - 69,069 Unreserved, reported in: General Fund 8,343,762 - 8,343,762 • Special revenue funds - 7,282,391 7,282,391 Capital projects funds - - - 8,971 8,971 . Total fund balances 8,412,831 4,172,522 1,050,992 9,266,367 22,902,712 Total liabilities and fund balances $ 9,885,852 $ 4,934,519 $ 4,398,369 $ 11,605,238 • Amounts reported for governmental activities in the Statement • of Net Assets are different because: Capital assets used in governmental activities are not financial • resources and therefore are not reported in the funds, net • of accumulated depreciation of $44,656,367 181,717,926 • Other long-term assets are not available to pay for current-period • expenditures and, therefore are deferred in the funds: Assessment Liens (includes interest on delinquent liens) 3,773,945 Property taxes earned but not available 286,581 Internal service funds are used by management to charge the cost of administrative functions as well as fleet and property • management to individual funds. A portion of the assets and liabilities of the internal service funds are included in governmental activities in the statement of activities. 658,146 • Accrued compensated absences are not due and payable in the . current period and therefore are not reported in the funds. (502,932) . Long-term liabilities - not reported in the funds: • Bonds, notes payable and other liabilities, not due and • payable in current period (18,131,719) Accrued interest payable, not due and payable in the current period (435,405) • Net Assets of Governmental Activities $ 190,269,254 • • • The accompanying notes are an integral part of the basic financial statements. • • • 25 • • • • CITY OF TIGARD, OREGON GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE For the fiscal year ended June 30, 2004 Bancroft Other Total General Facility Debt Service Governmental Governmental Fund Fund Fund Funds Funds REVENUES Taxes $ 9,168,597 $ - $ $ 606,728 $ 9,775,325 Franchise fees 2,431,324 - - 2,431,324 Special assessments - - 568,971 - 568,971 Licenses and permits 288,446 - - 3,379,889 3,668,335 Intergovernmental revenues 2,367,882 - 3,089,058 5,456,940 Charges for service 1,532,601 52,752 234,554 1,819,907 Fines and forfeitures 613,785 - - - 613,785 Interest earnings 149,207 146,265 349,012 235,586 880,070 Miscellaneous 34,706 41 385,643 420,390 Total revenues 16,586,548 199,017 918,024 7,931,458 25,635,047 EXPENDITURES Current operating: Community services 9,014,200 - - - 9,014,200 Public works 2,104,617 - 2,104,617 Development services 2,228,781 1,662,710 3,891,491 Policy and administration 3,527,547 - 523,929 4,051,476 Debt service: Principal - 637,900 663,079 1,300,979 Interest 300,022 629,390 929,412 Fiscal charges - 21,660 - 21,660 Capital outlay - 8,736,706 - 4,473,872 13,210,578 Total expenditures 16,875,145 8,736,706 959,582 7,952,980 34,524,413 Excess (deficiency) of revenues over(under)expenditures (288,597) (8,537,689) (41,558) (21,522) (8,889,366) OTHER FINANCING SOURCES (USES) Proceeds from Bancroft Improvement Bond - - 1,947,678 - 1,947,678 Transfers in 1,278,324 655,483 - 647,861 2,581,668 Transfers out (514,008) - (2,067,660) (2,581,668) Total other financing sources (uses) 764,316 655,483 1,947,678 (1,419,799) 1,947,678 Net change in fund balances 475,719 (7,882,206) 1,906,120 (1,441,321) (6,941,688) Fund balances - beginning as previously stated 7,937,112 12,054,728 1,213,935 10,707,688 31,913,463 Prior period adjustment (Note 12) - - (2,069,063) - (2,069,063) Fund balances - beginning as restated 7,937,112 12,054,728 (855,128) 10,707,688 29,844,400 Fund balances -ending $ 8,412,831 $ 4,172,522 $ 1,050,992 $ 9,266,367 $ 22,902,712 The accompanying notes are an integral part of the basic financial statements. 26 • CITY OF TIGARD, OREGON • RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES • OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES • For the fiscal year ended June 30, 2004 • • Net change in fund balances--total governmental funds $ (6,941,688) • Amounts reported for governmental activities in the • Statement of Activities are different because: • Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to • allocate those expenditures over the life of the assets. This is • the amount by which capital outlay exceeded depreciation • in the current period. Expenditures for capital assets - less donated $ 15,315,524 . Less current year depreciation (3,760,070) 11,555,454 • In the Statement of Activities, the loss on the disposition of capital assets is reported. The loss is not a use of • current resources and thus is not reported in the funds. (1,619,886) • Revenues in the Statement of Activities that do not provide current financial resources are not reported • as revenues in the funds. • Property taxes (12,044) Assessment Liens (1,481,400) (1,493,444) Bond proceeds provide current financial resources to • governmental funds, but issuing debt increases long- • term liabilities in the Statement of Net Assets. Repayment . of bond principal is an expenditure in the governmental • funds, but the repayment reduces long-term liabilities in the Statement of Net Assets. This is the amount by which • proceeds exceeded repayments. Bond and loan proceeds (1,947,678) Principal payments 1,300,979 (646,699) Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Compensated absences (60,529) • Accrued interest on debt 18,436 (42,093) • Internal service funds are used by management to charge the • cost of administrative functions as well as fleet and property • management to individual funds. The net revenue of a portion • of internal service funds is reported with governmental activities. Change in Net Assets - Internal Service Funds 382,187 • Less amount attributable to Business-Type Activities (95,547) 286,640 • Change in Net Assets of Governmental Activities $ 1,098,284 • • The accompanying notes are an integral part of the basic financial statements. • • • • • 27 • • • CITY OF TIGARD, OREGON PROPRIETARY FUNDS STATEMENT OF NET ASSETS June 30, 2004 Business-type Activities Governmental Enterprise Funds Activities Internal Sanitary Storm Service Sewer Sewer Water Totals Funds ASSETS Current assets: Cash and investments $ 4,856,300 $ 1,805,983 $ 11,753,158 $ 18,415,441 $ 1,190,465 Accounts receivable 1,213,597 294,501 1,084,351 2,592,449 44 Property taxes receivable - - 17 17 4,059 Prepaid expenses 448,664 448,664 - Inventory - - 103,869 103,869 21,926 Total current assets 6,069,897 2,100,484 13,390,059 21,560,440 1,212,435 Noncurrent assets: Restricted cash and investments 3,987,380 993,089 568,227 5,548,696 - Capital assets: Land and construction in process - - 891,660 891,660 - Other capital assets (net of accumulated depreciation) 11,952,386 9,814,741 27,527,807 49,294,934 Total noncurrent assets 15,939,766 10,807,830 28,987,694 55,735,290 - Total assets 22,009,663 12,908,314 42,377,753 77,295,730 1,212,435 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 823,077 67,449 550,729 1,441,255 221,519 Customer deposits - 2,118 352,297 354,415 - Accrued compensated absences 21,417 20,230 65,459 107,106 113,388 Total current liabilities 844,494 89,797 968,485 1,902,776 334,907 NET ASSETS Invested in capital assets, net of related debt 11,952,386 9,814,741 28,419,467 50,186,594 - Restricted for capital projects 3,987,380 993,089 568,229 5,548,698 - Unrestricted 5,225,403 2,010,687 12,421,572 19,657,662 877,528 Total net assets $ 21,165,169 $ 12,818,517 $ 41,409,268 75,392,954 $ 877,528 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 219,382 Net assets of business-type activities $ 75,612,336 The accompanying notes are an integral part of the basic financial statements. • • • • • 28 • • • CITY OF TIGARD, OREGON PROPRIETARY FUNDS • STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS • For the fiscal year ended June 30, 2004 • • Business-type Activities Governmental • Enterprise Funds Activities • Internal • Sanitary Storm Service • Sewer Sewer Water Totals Funds OPERATING REVENUES • Service charges $ 1,809,032 $ 1,156,863 $ 6,286,871 $ 9,252,766 $ 4,958,951 Miscellaneous 5,302 4,438 14,014 23,754 2,340 • Total operating revenues 1,814,334 1,161,301 6,300,885 9,276,520 4,961,291 • OPERATING EXPENSES , Salaries and wages 343,527 420,711 1,037,537 1,801,775 2,800,480 Contracted services 11,843 3,554 113,348 128,745 542,801 • General, administrative and other 83,636 111,586 3,186,474 3,381,696 1,250,109 i Depreciation 414,041 350,063 991,585 1,755,689 - Services performed by other funds 257,687 395,082 1,089,115 1,741,884 - • Total operating expenses 1,110,734 1,280,996 6,418,059 8,809,789 4,593,390 • Operating income (loss) 703,600 (119,695) (117,174) 466,731 367,901 • • NONOPERATING REVENUES Investment revenue 148,969 44,866 233,018 426,853 14,286 • System development revenue 446,113 405,223 1,187,703 2,039,039 - • Total nonoperating revenue 595,082 450,089 1,420,721 2,465,892 14,286 • Change in net assets 1,298,682 330,394 1,303,547 2,932,623 382,187 Net assets--beginning 19,866,487 12,488,123 40,105,721 72,460,331 495,341 Netassets--ending $ 21,165,169 $ 12,818,517 $ 41,409,268 75,392,954 $ 877,528 • • Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 219,382 Net assets of business-type activities $ 75,612,336 • • • The accompanying notes are an integral part of the basic financial statements. • • • • • • • • • • • • 29 • • • • CITY OF TIGARD, OREGON PROPRIETARY FUNDS STATEMENT OF CASH FLOWS For the fiscal year ended June 30, 2004 Increase (decrease) in cash and cash equivalents Governmental Business-type Activities - Enterprise Funds Activities Sanitary Storm Internal Sewer Sewer Water Totals Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 1,821,558 $ 1,160,523 $ 6,655,813 $ 9,637,894 $ 4,944,921 Payments to suppliers (166,258) (138,771) (3,642,679) (3,947,708) (1,792,910) Payments to employees (343,088) (422,389) (1,045,785) (1,811,262) (2,800,480) Other receipts 5,302 4,438 14,011 23,751 2,340 Internal activity-payments to other funds (257,687) (395,082) (1,089,115) (1,741,884) Net cash provided by operating activities 1,059,827 208,719 892,245 2,160,791 353,871 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contributions 446,113 405,223 1,187,703 2,039,039 - Acquisition of fixed assets (1,741,541) (520,150) (1,668,893) (3,930,584) Net cash (used) by capital and related financing activities (1,295,428) (114,927) (481,190) (1,891,545) CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings 148,969 44,866 233,018 426,853 14,286 Net increase (decrease) in cash and cash equivalents (86,632) 138,658 644,073 696,099 368,157 Balances--beginning of the year 8,930,312 2,660,414 11,677,312 23,268,038 822,308 Balances--end of the year $ 8,843,680 $ 2,799,072 $ 12,321,385 $ 23,964,137 $ 1,190,465 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ 703,600 $ (119,695) $ (117,174) $ 466,731 $ 367,901 Adjustments to reconcile operating income to net cash provided by operating activities: Cash flows reported in other categories: Depreciation expense 414,041 350,063 991,585 1,755,689 - Change in assets and liabilities: Receivables, net 12,526 3,660 27,275 43,461 4,015 • Prepaid expenses - - (448,664) (448,664) - • Inventory (24,548) (24,548) (3,101) • Accounts payable and accrued liabilities (70,779) (23,631) 130,355 35,945 (8,050) • Accrued compensated absences 439 (1,678) (8,248) (9,487) (6,894) Deferred revenue - (3) (3) • Customer deposits - - 341,667 341,667 • Net cash provided by operating activities $ 1,059,827 $ 208,719 $ 892,245 $ 2,160,791 $ 353,871 • • Supplemental Schedule of Noncash • Capital and Related Financing Activities: Contributed sewer, storm and water lines $ 291,610 $ 301,244 $ 249,694 $ 842,548 • • • The accompanying notes are an integral part of the basic financial statements. • • , 30 • • • ! • CITY OF TIGARD, OREGON • STATEMENT OF PLAN NET ASSETS • PENSION TRUST FUND • June 30, 2004 • • • • Cash and investments $ 10,192,921 • s ! • Net assets held in trust for pension benefits (see note # 8) $ 10,192,921 • • ! • STATEMENT OF CHANGES IN PLAN NET ASSETS • PENSION TRUST FUND • For the fiscal year ended June 30, 2004 ! • • Additions: • Contributions $ 918,491 • Investment income 1,058,175 • Total additions 1,976,666 Deductions: • Benefit payments and withdrawals (683,208) • • Increase in net assets 1,293,458 • • Net assets held in trust for pension benefits (see note # 8): • Beginning of year 8,899,463 • End of year $ 10,192,921 ! • • • • • The accompanying notes are an integral part of the basic financial statements. ! • • 31 • • • • Ste: • i Fos .~,;~te. City of Tigard, Oregon Notes to Basic Financial Statements 1. Summary of Significant Accounting Policies: The City of Tigard, under its Charter of 1961, is governed by an elected mayor and four council members who comprise the City Council. The City Council appoints a City Manager, who acts as the administrative head of government for the City. The City has no component units. The financial statements of the City have been prepared in accordance with Generally Accepted Accounting Principles (GAAP). GAAP statements include all relevant Governmental Accounting Standards Board (GASB) pronouncements. The financial statements have incorporated all applicable GASB pronouncements as well as Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the Committee on accounting procedures issued on or before November 30, 1989, unless those pronouncements conflict with or contradicts GASB pronouncements. The City applies the provisions of all applicable Governmental Accounting Standards Board (GASB) Statements that define requirements and the reporting model for the annual financial reports of state and local governments. In accordance with GASB Statement No. 34, as amended, the City has recorded capital and certain other long-term assets and liabilities in the statement of net assets, reported all revenues and the cost of providing services under the accrual basis of accounting in the statement of activities, and uses the direct method of reporting cash flows. Basic Financial Statements Basic financial statements are presented at both the government-wide and fund financial level. Both levels of statements categorize activities as either governmental or business- type. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Government-wide financial statements display information about the reporting government as a whole. For the most part, the effect of interfund activity ha been removed from these statements. These statements focus on the sustainability of the City as an entity and the change in aggregate financial position resulting from the activities of the fiscal period. These aggregated statements consist of the Statement of Net Assets and the Statement of Activities. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and the pension trust fund, even though the pension trust fund is excluded from the government- wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Fund financial statements display information at the individual fund level. Each fund is considered to be a separate accounting entity. Funds are classified and summarized as governmental, proprietary, or fiduciary. • 32 • • • • City of Tigard, Oregon • Notes to Basic Financial Statements • • 1. Summary of Significant Accounting Policies, Continued: • Currently, the City has only governmental and proprietary type funds. Non-major funds are • consolidated into a single column within each fund type in the financial section of the basic • financial statements and are detailed in the supplemental information. • All material interfund activity has been eliminated from the government-wide financial • statements. These charges are included in direct program expense. • • Basis of Presentation • The financial transactions of the City are recorded in individual funds. Each fund is • accounted for by providing a separate set of self-balancing accounts that comprises its • assets, liabilities, reserves, fund equity, revenues and expenditures/expenses. The various • funds are reported by generic classification within the financial statements. Professional standards set forth minimum criteria (percentage of the assets liabilities, • revenues or expenditures/expenses or either fund category or the governmental and • enterprise combined) for the determination of major funds. The City electively added funds • as major funds, which either had debt outstanding or specific community focus. Non-major • funds are combined in a column in the fund financial statements and detailed elsewhere in • the financial report. • Measurement Focus and Basis of Accounting • • Measurement focus is a term used to describe which transactions are recorded within the • various financial statements. Basis of accounting refers to when transactions are recorded • regardless of the measurement focus. • The Government-wide financial statements and the proprietary funds financial statements are • presented on a full accrual basis of accounting with an economic resource measurement • focus. An economic resource focus concentrates on an entity or fund's net assets. All • transactions and events that affect the total economic resources (net assets) during the • period are reported. An economic resources measurement focus is inextricably connected with full accrual accounting. Under the full accrual basis of accounting, revenues are • recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of related cash inflows and outflows. • Governmental funds financial statements are presented on a modified accrual basis of • accounting with a current financial resource measurement focus. This measurement focus • concentrates on the fund's resources available for spending currently or in the near future. • Only transactions and events affecting the fund's current financial resources during the period • are reported. Similar to the connection between an economic resource measurement focus • and full accrual accounting, a current financial resource measurement focus is inseparable from a modified accrual basis of accounting. Under modified accrual accounting, revenues • are recognized as soon as they are both measurable and available. Revenues are • considered to be available when they are collectible with then current period or soon enough • thereafter to pay liabilities of the current period. For this purpose, the City considers • revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual • accounting. • • • • • • 33 • • • • City of Tigard, Oregon Notes to Basic Financial Statements 1. Summary of Significant Accounting Policies, Continued: A deferred revenue liability arises in the governmental funds balance sheet when potential revenue does not meet both the measurable and available criteria for recognition in the current period. This unavailable deferred revenue consists primarily of uncollected property taxes and assessments not deemed available to finance operation of the current period. In the government-wide Statement of Activities, with a full accrual basis of accounting, revenue must be recognized as soon as it is earned regardless of its availability. Thus, the liability created on the governmental fund balance sheet for unavailable deferred revenue is eliminated. Note that deferred revenues also arise outside the scope of measurement focus and basis of accounting, such as when the City receives resources before it has a legal claim to them. For instance, when grant monies are received prior to the incurrence of qualifying expenditures. Similar to the way its revenues are recorded, governmental funds only record those expenditures that affect current financial resources. Principal and interest on general long- term debt are recorded as fund liabilities only when due, or when amounts have been accumulated in the debt service fund expenditures only to the extent that they are expected to be liquidated with expendable financial resources. In the government-wide financial statements, however, with a full accrual basis of accounting, all expenditures affecting the economic resource status of the government must be recognized. Thus, the expense and related accrued liability for long term portions of debt and compensated absences must be included. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government-wide statements' governmental column, a reconciliation is necessary to explain the adjustments needed to transform the fund based financial statements into the governmental column of the government-wide presentation. This reconciliation is part of the financial statements. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services, and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. • The principal operating revenues of the City's Sanitary Sewer, Storm Sewer and Water • Funds are charges to customers for sales and services. The Sanitary Sewer, Storm Sewer • and Water Funds also recognize fees intended to recover the cost of connecting new • customers to the City's utility systems as operating revenues. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and • overheads, and depreciation on capital assets. All revenues and expenses not meeting this • definition are reported as non-operating revenues and expenses. • Assets, Liabilities, and Equity • • Inventories • Inventories of parts, materials and supplies are stated at cost on the first-in, first-out basis in the proprietary funds. The purchases method is used in accounting for inventory for all funds • on the budgetary basis and for the government-wide presentation, while the consumption • method is used for proprietary funds and business-type activities. • • • • 34 • • • 0 City of Tigard, Oregon 40 Notes to Basic Financial Statements 0 • 1. Summary of Significant Accounting Policies, Continued: Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. • roads pathways, street lights etc.) are reported in the applicable governmental or business 0 type activities columns in the government-wide financial statements. Capital assets are 0 charged to expenditures as purchased in the governmental fund statements, and capitalized in the proprietary fund statements. Capital assets are recorded at historical cost or estimated historical cost. Donated assets are recorded at estimated fair market value as of the date of the donation. • Capital assets are defined by the City as assets with an initial, individual cost of $5,000 or more, and an estimated useful life of greater than five years. Additions or improvements and other capital outlays that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are capitalized. Other costs for repairs and maintenance • are expensed as incurred. • Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of 40 Activities with accumulated depreciation reflected in the Statement of Net Assets and is 410 provided on the straight-line basis over the following estimated useful lives: • Asset Years 0 Buildings and improvements 25-40 40 Improvements other than buildings 10-20 0 Machinery and equipment 5-10 0 Vehicles 5-10 Utility systems 25-40 Infrastructure 20-40 Accrued Compensated Absences and Sick Pay It is the City's policy to permit employees to accumulate earned but unused vacation and sick 0 pay benefits. There is no liability for unpaid accumulated sick leave, since the City does not 0 have a policy to pay any amounts when employees separate from the City. All vacation pay 0 is accrued when incurred in the government-wide and proprietary fund financial statements. • A liability for these amounts is reported in the governmental funds only when it has matured, for example, as result of employee resignations or retirements. 40 0 Long-term Debt is In the government-wide financial statements, and proprietary fund types in the fund financial 0 statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type in the Statement of Net Assets. Bond premiums and discounts are deferred and amortized over the 0 life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs, which are immaterial, are treated as period costs in the year • of issue and are shown as other financing uses. 0 In the fund financial statements, governmental fund types recognize bond premiums and 40 discounts, as well as bond issuance costs, during the current period. The face amount of 40 debt issued is reported as other financing sources while discounts on debt issuances are . reported as other financing uses. Issuance costs, whether or not withheld form the actual debt proceeds received, are reported as debt service expenditures. 35 City of Tigard, Oregon Notes to Basic Financial Statements 1. Summary of Significant Accounting Policies, Continued: Fund Equity • In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to. change. Use of Estimates 0 In preparing the City's financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported • amounts of revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates. • Restricted Cash and Investments Cash and investments which may only be used for construction of capital assets in accordance with applicable laws and regulations have been reported as restricted cash and investments on the combined balance sheet Investments Investments included in cash and investments are stated at fair value. Investments in the pension trust fund are stated at fair value. For purposes of the statement of cash flows, the City considers the proprietary funds' cash and investments with initial maturities to the City of three months or less, and the amounts in the Oregon State Treasurer's Investment Pool, to be cash. Budget • A budget is prepared for each fund, except for the Pension Trust Fund, essentially in • accordance with the modified accrual basis of accounting used by governmental funds, • which is in accordance with the legal requirements of Oregon Local Budget Law. • The resolution authorizing appropriations sets the maximum level of expenditures for each • fund. Appropriations may not be legally overexpended. Appropriations lapse at the end of • each fiscal year. Appropriations are made at the major program level for each fund, for • example, Community Services, Public Works, Development Services, Policy and Administration, Nondepartmental, Debt Service, Capital Improvements and Contingency. The detail budget document is required to contain more detailed information for the above- mentioned expenditure categories. Budget amounts include original approved amounts and • all subsequent appropriation transfers approved by the City Council. After budget approval, • the City Council may approve supplemental budgeted appropriations if an occurrence, condition, or need exists which had not been ascertained at the time the budget was • adopted. A supplemental budget may require hearings before the public, publications in newspapers and approval by the City Council. Original and supplemental budgets may be • modified by the use of appropriations transfers between the levels of control. Such transfers • require approval by the City Council. Management may not amend the budget without Council approval During the fiscal year ended June 30, 2004, twenty three appropriation • transfers were made to the budget and one supplemental budget was adopted. • • • 36 • • • • City of Tigard, Oregon • Notes to Basic Financial Statements • 1. Summary of Significant Accounting Policies, Continued: Budget, Continued: • • The budgets for each of the funds include capital outlay expenditures. Debt service is also budgeted separately. For GAAP presentation, the transfers from operating funds for services provided by the internal service funds and the General Fund are considered revenues and expenses/expenditures, as appropriate, but are considered to be interfund transfers for budgetary purposes. 2. Fund Types: • The City's financial operations are accounted for in the following funds: • • Governmental Funds • Governmental funds finance most governmental functions of the City. The acquisition, use and balances of the City's expendable financial resources and the related liabilities, • excluding those accounted for in proprietary funds, are accounted for through governmental • funds. The measurement focus is upon determination of changes in current financial resources, rather than upon net income determination. The following are the City's major • governmental funds: • General Fund - This fund accounts for the City's general operations. It is used to account for all transactions not specifically related to the City's other funds. • Bancroft 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. • Facility Fund - This capital projects fund accounts for monies set aside for future major City facility improvements. • Proprietary Funds Proprietary funds are used to account for the acquisition, operation and maintenance of sewer, storm drainage, and water systems in the City. These funds are entirely or predominantly self-supported through user charges to customers. The measurement focus • is upon net income determination, rather than upon determination of changes in current financial resources. The following are the City's major proprietary funds: Enterprise Funds: • Sanitary Sewer Fund - This fund accounts for the City's sewer utility operations. Storm Sewer Fund - This fund accounts for the City's storm drainage operations • which consists of the following two budgetary funds: Storm Sewer Fund and Water Quality/Quantity Fund. • • Water Fund - This fund accounts for the City's water operations which consists of • the following three budgetary funds: Water Fund, Water SDC Fund and Water CIP • Fund. • • • 37 • • • • City of Tigard, Oregon Notes to Basic Financial Statements 2. Fund Types, Continued: Proprietary Funds, Continued . Additionally, the City reports the following fund type. Neither of these funds are a major fund: Internal Service Funds: Central Services Fund - This fund accounts for the central administrative functions within the City which are generally allocated to other funds. Fleet/Property Management Fund - This fund accounts for all activity related to the Fleet Maintenance and Property Management divisions in the City. • Nonmajor Governmental Funds • Other governmental funds include nonmajor special revenue, debt service, and capital • projects funds of the City. The following lists all other governmental funds by governmental • fund type: • Special Revenue Funds: Criminal Forfeiture Fund • Gas Tax Fund • Parks Capital Fund Traffic Impact Fee Fund Electrical Inspection Fund Underground Utility Fund Insurance Fund Building Fund Urban Services Traffic Impact Fee Fund • • Urban Services Fund • Tree Replacement Fund Street Maintenance Fee Fund • • • • • • • • 38 • • • • City of Tigard, Oregon • • Notes to Basic Financial Statements • 2. Fund Types, Continued: • Nonmajor Governmental Funds, Continued: Debt Service Fund: • • General Obligation Debt Service • • Capital Projects Funds: . SW Dartmouth Local Improvement District Fund • • Wall Street Local Improvement District Fund • Fiduciary Fund Type: • • Pension Trust Fund - This fund accounts for the City's employee defined • contribution pension plan. 3. Cash and Investments: • • The City maintains a cash and investment pool that is available for use by all funds, except • the 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 Pension Trust Fund are held separately from those of other City funds. • Cash and investments are comprised of the following at June 30, 2004: • Cash on hand $ 11,127 • Cash held by Department of Finance, Washington County 57,726 • Deposits with financial institutions 1,106,287 • Investments 50,201,352 $ 51,376,492 • • Cash and investments are displayed on balance sheet as follows: • Cash and investments $ 45,827,796 Restricted cash and investments 5,548,696 • $ 51,376,492 • • Deposits Deposits with financial institutions include bank demand deposits and time deposit accounts. The total bank balance is $1,789,935 (book balance is $1,106,287). Of these deposits, $100,000 was covered by federal depository insurance and $1,689,935 was collateralized with securities held by collateral pool managers. Oregon Revised statutes require the depository institution to maintain on deposit, with a collateral pool manager, securities having a value not less than 25 percent of the outstanding certificates of collateral issued by • the poll manager. The City's deposits are fully collaterlized in accordance with state law. • • • • • 39 • • City of Tigard, Oregon Notes to Basic Financial Statements 3. Cash and Investments, Continued: Investments State statutes authorize the City to invest primarily in general obligations of the U.S. government and its agencies, certain bonded obligations of Oregon municipalities, bank repurchase agreements, bankers' acceptances, certain commercial paper and the state Treasurer's Investment pool, among others. The City participates in the Oregon State Treasurer's Local Government Investment Pool (LGIP), an open-ended; no-load diversified portfolio created under ORS 294.805 to 294.895. The LGIP is administered by the State Treasurer and the Oregon Investment Council with the advice of the Oregon Short-Term Fund Board. The Oregon State Treasurer's Office has calculated the fair value of the underlying investments of the LGIP and the City's share of fair value is reflected below. The City's investments are categorized below to give an indication of the level of credit risk assumed by the City at June 30, 2004. Category 1 includes uninsured investments for which the securities are held by the City or its agent in the City's name by the trust department of the financial institution selling the security to the City. Category 2 includes uninsured and unregistered, investments for which the securities are held by the trust department of the bank which acquired the securities for the City, in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the financial institution selling the security to the City, 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 Securities $ 40,176,302 $ 40,176,302 State Treasurer's Local Government Investment Pool 10,025,050 Total Investments $ 50,201,352 The City's employees participate in a defined contribution pension plan. These funds are held by custodians under pension plans - mutual fund investments and recorded in the City's Pension Trust Fund. The balance at June 30, 2004 is $10,192,921. This balance is not included in the government-wide or fund financial statements, but is shown separately. 4. Assessment Liens Receivable: Assessment liens receivable represent the uncollected amounts levied against benefited property for the cost of local improvements. Because the assessments are liens against the benefited property, an allowance for uncollectible amounts is not deemed necessary. Substantially all assessments are payable over a period of 10 to 20 years. Assessments bear interest from 5.2 to 9.4 percent. At June 30, 2004, the portion of the assessments receivable balance that represents delinquent accounts is approximately $16,805. 40 City of Tigard, Oregon Notes to Basic Financial Statements • 5. Capital Assets: • • Capital asset activity for governmental activities for the year ended June 30, 2004 was as follows: • June, 30 June, 30 2003 Additions Adjustments Retirements 004 Land $ 6,710,069 $ - $ (922,684) $ (1,375) $1 ",786,010 • Construction in progress 4,620,012 12,920,397 (1,466,954) - 16,073,455 0 Total non-depreciable 11,330,081 12,920,397 (2,389,638) (1,375) 21,859,465 0 Building and building improvements 6,188,741 56,332 1,509,343 - 7;754,416 • Land improvements 3,565,806 258,514 1,104,369 - ~-`4,928,689 • Machinery and equipment 1,704,871 6,899 (22,502) (496,778-- A' ,192,490 Autos and trucks 1,568,789 106,728 22,502 (44,678) -"_-,,-1,653,341 0 Office equipment 1,504,077 - (885) (1,077,055) y426,137 • Infrastructure 186,824,866 1,734,889 - - 188,559,755 Total depreciable 201,357,150 2,163,362 2,612,827 (17618,511) 204,514,828 Accumulated depreciation • Building and building improvements (1,888,669) (156,929) (6,782) - 4,052,380) • Land improvements (1,625,584) (880,555) (32,167),538,306) • Machinery and equipment (749,902) (139,338) (54,470) - ✓(943,710) • Autos and trucks (1,224,266) (140,542) (18,217) ' (t,383,025) Office equipment (414,558) (19,925) 36,020 - ,/x'398,463) ~ Infrastructure (34,917,702) (2,422,781) - - (37,340,483) Total accumulated depreciation (40,820,681) (3,760,070) (75,616) - (44,656,367) Governmental activities • capital assets, net $ 171,866,550 $11,323,689 $ 147,573 $ (1,619,886) $ 181,717,926 • • -Adjustments column include reclassifications and construction in progress in pervious years that were ~ completed within the current fiscal year. • Depreciation expense for governmental activities is charged to functions as follows: • General government $ 1,037,484 UJF ~ • • Community services 229,099 _ Public works 2,459,059 i Pu y kl~ -I • Developmental services 7,900 • Policy and administration 26,528 . Total depreciation for governmental activities $ 3,760,070 • • • • • • • • • 41 • • • • City of Tigard, Oregon Notes to Basic Financial Statements 5. Capital Assets, Continued: Capital assets activity for business-type activities for the year ended June 30, 2004, was as follows: Balances Balances June 30, 2003 Additions Adjustments Retirements June 30, 2004 _ Land - non-depreciable $ 997,734 $ - $ - $ - -M'997,7345 Construction in progress - 891,660 - - 891,660 Total - non-depreciable 997,734 891,660 - - 1,889,394 Land imrpovements 360,669 - 27,960 (27,960) 360,669 Buildings and building improvements 1,072,019 - 8,810 (8,810) ,/1,072,019°x- Sewer system 14,861,673 1,552,205 150,885 - ,/16,564,763 Storm drainage system 12,623,878 422,597 100,499 - ,146,974 C Water system 40,343,299 312,632 74,676 (2,925) 40,727,682 Equipment 852,474 - 216,764 (227,629) 841,609 '1 Auto and trucks 1,038,006 238,544 12,325 (60,746) /1,228,129 3 Total depreciable 71,152,018 2,525,978 591,919 (328,070) 73,941,845 Accumulated depreciation Land imrpovements (322,537) (21,299) 1,291 24,204 (318,341) Buildings and building improvements 384,365 29,670 2,830 3,222 407,983 . Sewer system (4,369,605) (366,686) (65,630) - ,'t36't;921) Storm drainage system (3,051,906) (317,978) (19,086) Zl,388,970) Water system (14,483,182) (882,073) 7,760 145 5,357,350) Equipment (762,874) (39,926) 14,023 163,322 625,455) Auto and trucks (763,584) (98,057) 56,270 60,746 ✓ (744,625) Total accumulated depreciation (24,138,053) (1,755,689) (2,542) 251,639 (25,644,645) Business-type activities capital assets, net $ 48,011,699 $ 1,661,949 $ 589,377 $ (76,431) $ 50,186,594 "Adjustments column include reclassifications from previous years recording of capital assets. Depreciation expense for business-type activities is charged to activities as follows: Sanitary sewer $ 414,041 Storm sewer 350,063 Water 991,585 Total depreciation for business-type activities $ 1,755,689 42 • City of Tigard, Oregon Notes to Basic Financial Statements • • 6. Long-term Debt and Other Debt: • General Obligation Bonds payable Bond transactions for the year ended June 30, 2004, and future maturities of bond principal • and interest, are as follows: • General o 0 Obli9ation bond issues _ Interest rates from 3.4/o to 4.75/o • Fiscal Year Outstanding Paid Outstanding Future Due June 30, 2003 Additions During Year June 30, 2004 Interest • 2004 $ 463,552 $ - $ (463,552) $ - $ - 2005 475,908 - 475,908 498,505 2006 488,335 - 488,335 484,228 • 2007 505,836 - 505,836 469,578 • 2008 518,411 - 518,411 454,403 2009 536,063 - 536,063 438,850 • 2010 553,795 - 553,795 422,768 • 2011 571,890 - 571,890 404,493 • 2012 590,281 - 590,281 384,477 • 2013 613,891 - 613,891 363,227 2014 632,787 - 632,787 340,206 2015-2022 7,049,251 - - 7,049,251 1,715,008 • $ 13,000,000 $ - $ (463,552) $ 12,536,448 $5,975,743 Bancroft Improvement Bonds: • Bancroft improvement bond issues - Interest rates from 3.75% to 11.75%; payable first from • assessments to benefited properties and second, from the general credit of the City. • Paid and Outstanding Additions Called Outstanding • Fiscal Year June 30, During During June 30, Future • Due 2003 Year Year 2004 Interest • 2004 $ 285,950 $ - $ (285,950) $ - $ - • 2005 195,799 147,770 343,569 196,600 • 2006 285,522 161,001 (105,000) 341,523 180,944 • 2007 215,861 169,399 - 385,260 164,366 2008 226,631 178,236 (177,489) 227,378 136,958 2009 141,436 187,533 (69,461) 259,508 126,469 • 2010 50,500 197,315 - 247,815 115,614 2011-2022 991,594 906,424 - 1,898,018 620,181 • $ 2,393,293 $ 1,947,678 $ (637,900) $ 3,703,071 $ 1,541,132 • • • • • • 43 • • • 'l • City of Tigard, Oregon Notes to Basic Financial Statements 6. Long-term Debt and Other Debt, Continued: Notes Payable: Note payable issued January 23, 2003 - Interest rates from 3.00% to 4.35%; payable from Parks SDC Fund. Fiscal Year Outstanding Paid Outstanding Future Due June 30, 2003 During Year June 30, 2004 Interest 2004 $ 199,527 $ (199,527) $ - $ - 2005 210,563 - 210,563 72,563 2006 216,630 - 216,630 66,246 2007 222,820 - 222,820 59,205 2008 229,201 - 229,201 51,072 2009 235,690 - 235,690 42,363 2010 247,318 - 247,318 32,935 2011 259,053 - 259,053 22,795 2012 270,925 - 270,925 11,785 Totals $ 2,091,727 $ (199,527) $ 1,892,200 $ 358,964 Other debt recorded in the Bancroft Bond Debt Service Fund (and payable from that fund) and the changes thereto during the year ended June 30, 2004, are as follows: Balance Balance June 30, June 30, 2003 Additions Retirements 2004 Bond anticipation notes due May 1, 2004; interest rate 4.39% $ 2,058,003 $ - $ (2,058,003) $ - Other Debt Other long-term obligations for accrued compensated absences and changes thereto during the year ended June 30, 2004 are as follows: Balance Balance Due June 30, June 30, within 2003 Additions Retirements 2004 one year Governmental activities: Compensated absences $ 653,672 $616,320 $ (653,672) $ 616,320 $ 616,320 Business -type activities: Compensated absences $ 146,664 $107,106 $ (146,664) $ 107,106 $ 107,106 Compensated absences for governmental activities are generally liquidated by the fund expensing the respective payroll. 44 • City of Tigard, Oregon Notes to Basic Financial Statements • 7. Transfers: • The City utilizes three types of interfund transfers. The first type is transfers received for • services provided. These transfers are based on a cost allocation plan and are reflected as • expenses of the appropriate activity in the government - wide statements. The second type • of transfer is a transfer of resources. Typically, this transfer is made to close out funds that • are no longer needed for financial reporting. The third type of transfer is a transfer for direct • costs that can be specifically identified and billed directly to the benefiting fund. These types of transfers are reflected as expenses of the appropriate activity in the government - wide statements. 8. Retirement Plans: • The City contributes to retirement plans on behalf of all eligible employees. At June 30, 2004, the following employee groups were covered by the following retirement plans: Group Retirement Plan • Management/Professional Staff (Nonunion) International City Managers Association • Retirement Corp. (ICMARC) Money Purchase Plan • Oregon Public Employees Union Employees ICMARC Money Purchase Plan • Tigard Police Officers State of Oregon Public Employees • Retirement System (PERS) • Oregon Public Employees Retirement Systems (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. • Funding Policy • • The City's annual required contribution rate, as of the most recent actuarial valuation of July • 1, 2002, is 6.67% of covered payroll. The City is required by State Statute to contribute its current employer rate of 6.67% of • covered wages, and has contractually committed to pay the employee contributions of 6%. • • The City's annual required contribution rate to PERS increased, as of July 1, 2003, to 8.61% of covered payroll. • • • • 45 • • • • City of Tigard, Oregon Notes to Basic Financial Statements 8. Retirement Plans, Continued: 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, 2004, 2003 and 2002, the City's annual pension cost was approximately $505,230, $435,000 and $279,000, respectively. The City's pension liability and the annual required contribution rate were determined as part of the December 31, 2001 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 closed period. The actuarial assumptions include a rate of return on investment of present and future assets of 8% per year, projected salary increase of 5% per year, and cost of living adjustments of 2% per year for post-retirement benefits. At the December 31, 2001 actuarial valuation, the actuary did not provide the City with the value of the City's assets and actuarial liability, but instead pooled these items with several other governments to calculate the overfunded actuarial liability. The following table presents a schedule of funding progress for the City's multiple-employer pension plan: Actuarial Overfunded 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, 1995 $ 7,946,463 $ 7,616,462 $ 330,001 104% $ 2,353,479 14% December 31, 1997 9,664,661 7,952,478 1,712,183 122% 2,360,045 73% December 31, 1999 17,817,986 14,743,905 3,074,081 121% 2,838,373 108% December 31, 2001 Pooled Pooled 4,990,154 Pooled 3,072,422 162% • • 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 $877,147 for the year ended June 30, • 2004. Covered payroll was $7,974,064, for the year ended June 30, 2004. Contributions as a percentage of payroll range from 10 to 11 percent for all eligible employees participating in the plans. • 46 4 • • 0 City of Tigard, Oregon Notes to Basic Financial Statements • 8. Retirement Plans, Continued: 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 for the plans' participants. The Deferred Compensation Plans are not considered City funds and are excluded from the City's financial statements. 9. Transactions with Clean Water Services of Washington County: • The City collects charges for treatment of City sewage on behalf of the Clean Water 0 II collections to Clean Water Services remits except for 0 19.62 percent of sewer service charges collected and 20 percent of connection charges • collected, in accordance with an agreement between the City and Clean Water Services. • Payments of $5,717,615 were made to Clean Water Services during fiscal year 2004 under this agreement. • The City has a similar agreement with the Regional Surface Water Management Agency, 0 which is an affiliate of Clean Water Services, for storm water systems. Payments made to • the Agency during fiscal year 2004 under the agreement were $389,229. • The net amount retained by the City is reported as revenue in the Enterprise Funds in the Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Assets. Revenues are reported net because the City acts in a fiduciary capacity on behalf of Clean • Water Services. • 10. Constitutional Property Tax Limitations: • In November 1990, the Oregon voters approved a State constitutional limit on property taxes for schools and nonschool government operations. Under the provisions of the limitation, . tax revenues are separated into those for the public school system and those for local government operations other than the public school system. The limitation specifies $10.00 is the maximum allowable tax for each $1,000 of property real market value imposed by local governments other than the public school system. • The limitation applies to all state and local taxes and charges on property except for the following: • 1. Incurred charges for goods or services received at the owner's option; 2. assessments for capital construction that provide a special benefit to the property and that can be paid off over at lease ten years; • • 3. taxes to repay bonded debt authorized by the state constitution; 4. taxes to repay existing bonded debt for capital construction, and • • 5. taxes to repay new bonded debt for capital construction if approved by voters. • • • • • • 47 • • • City of Tigard, Oregon Notes to Basic Financial Statements 10. Constitutional Property Tax Limitations, Continued: During May 1997, Oregon voters approved Measure 50 which limits taxes on each property by reducing the 1997-98 assessed value of each property to 90% of its 1995-96 value. Measure 50 also limits future growth of the taxable value of each property to 3% per year with certain exceptions. Measure 50 also establishes permanent tax rates for Oregon's local taxing districts, which replace the former tax base amounts of the districts. Tigard's taxing authority is limited to its permanent rate of $2.51 per thousand dollars of assessed value. 11. Risk Management: The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and others; and natural disasters. The City purchases commercial insurance to deal with substantially all these risks with nominal deductibles. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. 12. Prior Period Adjustment: Prior to July 1, 2002, the City calculated the fund balance of the Bancroft Debt Service Fund, presented in the fund financial statements, in error. This error was carried through the financial statements of the City for the year ended June 30, 2003. The fund balance on a budgetary basis was, however, correct. Accordingly, the beginning fund balance of this fund has been reduced by $ 2,069,063 at July 1, 2003 to correct this error. There is no effect on the operations of the fund or the activities of the City for the year ended June 30, 2004. The net assets of the City's governmental activities at June 30, 2003 were appropriately presented. 0 0 a 0 0 0 0 0 0 0 48 • 0 0 •••••••••••••••••••••••••r••••••••~i••• 0 rn m L U WN Ic. Now CITY OF TIGARD, OREGON GENERALFUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2004 Variance Budgeted Amounts Actual Favorable REVENUES: Original Final Amounts (Unfavorable) Taxes $ 9,115,977 $ 9,115,977 $ 9,168,597 $ 52,620 Franchise fees 2,508,866 2,508,866 2,431,324 (77,542) Licenses and permits 2,437,500 2,437,500 288,446 (2,149,054) Intergovernmental revenues 2,202,154 2,256,446 2,367,882 111,436 Charges for services 415,500 415,500 913,717 498,217 Fines and forfeitures 434,127 434,127 613,785 179,658 Interest earnings 156,304 156,304 149,207 (7,097) Miscellaneous 33,500 36,032 34,706 (1,326) Total revenues 17,303,928 17,360,752 15,967,664 (1,393,087) EXPENDITURES: Community services 9,459,862 9,629,511 9,014,200 615,311 Public works 2,470,000 2,478,756 2,104,617 374,139 Development services 2,362,828 2,398,228 2,228,781 169,447 Policy and administration 310,775 310,775 297,624 13,151 Contingency 1,000,000 829,414 - 829,414 Total expenditures 15,603,465 15,646,684 13,645,222 2,001,462 • Change in fund balance . before other financing sources (uses) 1,700,463 1,714,068 2,322,442 608,375 • Other financing sources (uses): • Operating transfer in 2,227,982 2,227,982 1,897,208 (330,774) Operating transfer out (3,931,115) (3,944,721) (3,743,931) 200,790 • • Total other financing sources (uses) (1,703,133) (1,716,739) (1,846,723) (129,984) • Change in fund balance (2,670) (2,671) 475,719 478,391 • A UNDESIGNATED, UNRESERVED - • FUND BALANCE BEGINNING OF YEAR 7,065,185 7,065,185 7,937,112 871,927 • UNDESIGNATED, UNRESERVED - • FUND BALANCE END OF YEAR $ 7,062,515 $ 7,062,514 $ 8,412,831 $ 1,350,318 • • • • • 49 • • • 0 d O L O V - - - - - - - - - - A0 • CITY OF TIGARD, OREGON COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2004 • • • • General to Obligation Special Capital Bond Debt Revenue Projects Service Funds Funds Fund Total ASSETS: • • Cash and investments $ 10,347,967 $ 61,914 $ 655,466 $ 11,065,347 • Accounts receivable 383,884 - - 383,884 • Taxes receivable - - 28,800 28,800 Assessment liens receivable 127,207 - - 127,207 • Total assets $ 10,859,058 $ 61,914 $ 684,266 $ 11,605,238 * LIABILITIES: Accounts payable $ 1,039,769 $ 52,943 $ - $ 1,092,712 Customer deposits 797,369 - - 797,369 Deferred revenues - Property taxes - - 21,945 21,945 Deferred revenues - Other 426,845 - - 426,845 • • Total Liabilities 2,263,983 52,943 21,945 2,338,871 • FUND BALANCES - • Reserved - for debt service - - 662,321 662,321 Unreserved 8,595,075 8,971 - 8,604,046 • Total fund balances 8,595,075 8,971 662,321 9,266,367 • • Total liabilities and fund balances $ 10,859,058 $ 61,914 $ 684,266 $ 11,605,238 • • • • • • • • • • • 50 • • • CITY OF TIGARD, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the fiscal year ended June 30, 2004 General Obligation Special Capital Bond Debt Revenue Projects Service Funds Funds Fund Total REVENUES: S Property taxes $ - $ - $ 606,728 $ 606,728 Licenses and permits 3,379,889 - - 3,379,889 Intergovern mental revenues 3,089,058 - - 3,089,058 • Charges for services 234,554 - - 234,554 Interest earnings 222,503 146 12,937 235,586 Miscellaneous revenues 385,643 - - 385,643 ~ Total revenues 7,311,647 146 619,665 7,931,458 EXPENDITURES: Development services 1,662,710 - - 1,662,710 • Policy and administration 523,929 - - 523,929 Debt Service 278,075 - 1,014,394 1,292,469 Capital projects 4,365,739 108,133 - 4,473,872 Total expenditures 6,830,453 108,133 1,014,394 7,952,980 Changes in fund balance before other financing sources (uses) 481,194 (107,987) (394,729) (21,522) • Other financing sources (uses): Operating transfer in 539,953 107,908 - 647,861 Operating transfer out (2,067,660) - - (2,067,660) • Total other financing sources (uses) (1,527,707) 107,908 - (1,419,799) Changes in fund balance (1,046,513) (79) (394,729) (1,441,321) • FUND BALANCE - beginning of year 9,641,588 9,050 1,057,050 10,707,688 FUND BALANCE - end of year $ 8,595,075 $ 8,971 $ 662,321 $ 9,266,367 51 '~Speci,. RevenUe'-funds None of the City's special revenue funds meet the. criteria for major'. fund reporting..' Therefore, the combining statements for, all individual special, revenue funds. are reported here: ' The; combined.. totals, "are reported tin the; combining ,nonMajor, governmental -fund, statements. Schedules of'revenues, expenditures; and changes. in fund-balance =budget and actua.I are also presented here for each-individual special revenue,fund`::, Norimaioe Special Revenue Funds: Criminal Forfeiture- Fund - Th•is.fund accounts for,fu,nds and property" seized from criminals ~iri connection with crimes committed prior to passage.of Ballot Measure 3 Gas .Tax'' Fund ='Thi's fund accounts for. revenues received fro ' state 'and. county gasoline= taxes' which, are 'to be expended as specified in the.. ,Constitution of the State of ..Oregon, Article IX, Sectiori 3. , Parks .Capital: Fund. This, fund accounts for 'system deVelopment :charges for. major, improvements to.recreationdi facilities within the City. ; Traffic" ;Impact,I.Fee Fund =This fund accounts for traffic impact fees charged for ne'w development..' Funds will-be'used for highWay.and'transit capital improvements approved in the,'-City's Capital' Improvement' Plan. (CIP). , Electrical. Inspection: Fund This fund,accounts ,for fees charged for permits; plan check... " fees, and inspection-of electrical improvements. Underground Utilif 'Fund - This`.fund accounts.--for monies -received 'fro `Jdevelopers.:for. ' future underground utility improvements.', t, - Insurance Fund=•- Records. refunds, of, prior, years workers'- compensation prpmium, s' "and, other•-insurance'related revenues. Building. Fund - This-fund accounts for fees charged for building inspection and:plan review" activities.' Urban Services. Traffic Impact 'Fee Fund - This. fund. accounts-for 'traffic impact, fees. collected on'roads"within the,-City's urban services'area. Funds will be used-for"highway and " 'transit capital improvements:approved inthe'City's Capital ]M' eovement Plan,(CIP). Urban Services Fund- --This'-fund'accounts for,all revenues and- expenditures related -to 0 services provided to the :urban . service areas of :Washington.', County.: The City of, Tigard' provides' services to:•this area pursuant to an intergovernmental agreement with;.Wasfiington. : County.. : . Tree'Replacement Fund fn'.FY.2003=04; the fund; balance in the, Tree Replacement` Fund - -was transferred to -the •Parks•Capital`Fund "and revenues will now`be deposited in this fund. " ",Street Maintenance Fee. Fund - This fund was established in FY 2003-04'-to track the., revenues and•.expenditures for the'-Street Mairtenance Fee.••- This fee. provides revenue. designated- for use in the maintenance of existing streets. CITY OF TIGARD, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2004 Urban Services Street Criminal Gas Parks Traffic Electrical Underground Traffic Urban Tree Maintenance Forfeiture Tax Capital Impact Fee Inspection Utility Insurance Building Impact Fee Services Replacement Fee Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total ASSETS: Cash and investments $ 23,467 $ 1,635,151 $ 2,096,084 $ 1,860,318 $ 231,722 $ 377,664 $ 574,999 $ 1,446,335 $ 813,649 $ 1,218,268 $ - $ 70,310 $ 10,347,967 Accounts receivable 325,135 450 - - 225 - 4,248 53,826 383,884 Assessment liens receivable 127,207 127,207 Total assets $ 23,467 $ 1,635,151 $ 2,421,219 $ 1,987,525 $ 232.172 $ 377,664 $ 574,999 $ 1,446,560 $ 813,649 $ 1,222,516 $ $ 124,136 $ 10,859,058 LIABILITIES AND FUND BALANCES: LIABILITIES: Accounts payable $ $ 18,305 $ 10,544 $ 854,160 $ 60 $ 10,150 $ - $ 91,439 $ 54,814 $ 297 $ $ $ 1,039,769 Customer deposits 304,162 6,194 - 9,456 - 4,475 - 473,082 797,369 Deferred revenues - 325,134 101,711 - - - 426,845 Total liabilities 322,467 341,872 955,871 9,516 10,150 95,914 54,814 473,379 2,263,983 FUND BALANCE UNRESERVED 23,467 1,312,684 2,079,347 1,031,654 222,656 367,514 574,999 1,350,646 758,835 749,137 124,136 8,595,075 N Total liabilities and fund balances $ 23.467 $ 1,635,151 $ 2,421,219 $ 1,987,525 $ 232.172 $ 377,664 $ 574,999 $ 1,446,560 $ 813,649 $ 1,222,516 _ $ - $ 124,136 $ 10,859,058 CITY OF TIGARD, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the fiscal year ended June 30, 2004 Urban Services Street Criminal Gas Parks Traffic Electrical Underground Workers' Traffic Urban Tree Maintenance Forfeiture Tax Capital Impact Fee Inspection Utility Compensation Building Impact Fee Services Replacement Fee Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES: Licenses and permits $ - $ - $ 418,062 $ 479,311 $ 225,019 $ - $ - $ 1,522,279 $ 270,574 $ 464,643 $ - $ - $ 3,379,889 Intergovernmental revenues 2,159,090 181,449 748,518 - - 3,089,058 Charges for services 14,806 - - 80,309 10,020 5,364 124,055 234,554 Interest earnings 493 21,068 31,219 102,020 3,516 5,396 9,049 19,072 14,980 15,611 - 81 222,503 Miscellaneous revenues 11,615 77,241 245,128 27,037 24,622 - 385,643 Total revenues 493 2,206,579 707,971 1,574,977 228,535 85,705 36,086 1,575,993 285,554 485,618 - 124,136 7,311,647 EXPENDITURES: Development services 361,228 - - - - - 1,301,482 - - - - 1,662,710 Policy and administration 523,929 - - 523,929 Debt Service - - 278,075 - - - - - - - - 278,075 Capital projects 473,406 315,874 2,915,083 60,218 - 601,158 - 4,365,739 Total expenditures 1,358,563 593,949 2,915,083 60,218 1,301,482 601,158 - 6,830,453 Ln Changes in fund balance W before other financing sources (uses) 493 848,016 114,022 (1,340,106) 228,535 25,487 36,086 274,511 (315,604) 485,618 124,136 481,194 Other financing sources (uses): Transfer in - - 39,707 - - - - 500,246 - - - 539,953 Transfer out (44,611) (599,581) (193,101) (186,721) (485,146) (37,540) (498,297) (22,663) (2,067,660) Total other financing sources (uses) (44,611) (599,581) 39,707 (193,101) (186,721) - 15,100 (37,540) (498,297) (22,663) (1,527,707) Changes in fund balance (44,118) 248,435 153,729 (1,533,207) 41,814 25,487 36,086 289,611 (353,144) (12,679) (22,663) 124,136 (1,046,513) FUND BALANCE - beginning of year 67,585 1,064,249 1,925,618 2,564,861 180,842 342,027 538,913 1,061,035 1,111,979 761,816 22,663 9,641,588 FUND BALANCE - end of year $ 23,467 $ 1,312,684 $ 2,079,347 $ 1,031,654 $ 222,656 $ 367,514 $ 574,999 $ 1,350,646 $ 758,835 $ 749,137 $ $ 124,136 $ 8,595,075 CITY OF TIGARD, OREGON CRIMINAL FORFEITURE FUND SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Interest earnings $ 1,220 $ 1,220 $ 493 $ (727) Change in fund balance before other financing (uses) 1,220 1,220 493 (727) Other financing (uses): Transfer out (62,220) (62,220) (44,611) 17,609 Change in fund balance (61,000) (61,000) (44,118) 16,882 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 61,000 61,000 67,585 6,585 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ 23,467 $ 23,467 • • • • • • • • • • • • • • 54 • • • • CITY OF TIGARD, OREGON GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 • • • • • • • Variance Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) • REVENUES: • • Federal grants $ 163,258 $ 163,258 $ - $ (163,258) • State gas tax 1,686,559 1,686,559 1,973,251 286,692 County gas tax 170,110 170,110 185,839 15,729 Street lighting fees 6,000 6,000 14,806 8,806 • Interest earnings 12,552 12,552 21,068 81516 • Miscellaneous - - 11,615 11,615 • Total revenues 2,038,479 2,038,479 2,206,579 168,100 • • EXPENDITURES: Development services 418,000 418,000 361,228 56,772 • Contingency 124,000 124,000 - 124,000 Capital projects 757,894 757,894 473,406 284,488 • Total expenditures 1,299,894 1,299,894 834,634 465,260 • • Change in fund balance before other financing (uses) 738,585 738,585 1,371,945 633,360 • Other financing (uses): Transfer out (1,359,753) (1,359,753) (1,123,510) 236,243 • • Change in fund balance (621,168) (621,168) 248,435 869,603 • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 627,593 627,593 1,064,249 436,656 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 6,425 $ 6,425 $ 1,312,684 $ 1,306,259 • • • • • • • • 55 CITY OF TIGARD, OREGON PARKS CAPITAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 • Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: • System development charges $ 350,000 $ 350,000 $ 418,062 $ 68,062 Intergovernmental revenues 194,078 269,078 181,449 (87,629) Tree replacement revenue 10,000 10,000 10,750 750 Interest earnings 30,089 30,089 31,219 1,130 Miscellaneous 390,000 390,000 66,491 (323,509) • • Total revenues 974,167 1,049,167 707,971 (341,196) EXPENDITURES: Debt Service 278,075 278,075 278,075 - Contingency 162,000 166,764 - 166,764 Capital projects 826,886 897,122 315,874 581,248 Total expenditures 1,266,961 1,341,961 593,949 748,012 Change in fund balance before other financing sources (292,794) (292,794) 114,022 406,816 Other financing sources: Transfer in 55,000 55,000 39,707 (15,293) • Proceeds from long-term note 278,075 278,075 - (278,075) • Total other financing sources 333,075 333,075 39,707 (293,368) • Change in fund balance 40,281 40,281 153,729 113,448 • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 1,504,435 994,434 1,925,618 931,184 • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 1,544,716 $ 1,034,715 $ 2,079,347 $ 1,044,632 • • • • • • • 56 • • • • CITY OF TIGARD, OREGON TRAFFIC IMPACT FEE FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 • • • • • • Variance • Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) REVENUES: • • Federal grants $ 660,000 $ 660,000 $ - $ (660,000) • Intergovernmental revenues - - 748,518 748,518 • System development charges 527,250 527,250 479,311 (47,939) Interest earnings 55,000 55,000 102,020 47,020 Miscellaneous 118,446 118,446 245,128 126,682 Total revenues 1,360,696 1,360,696 1,574,977 214,282 • • EXPENDITURES: • • Contingency 495,000 495,000 - 495,000 Capital projects 3,309,166 3,309,166 2,915,083 394,083 • Total expenditures 3,804,166 3,804,166 2,915,083 889,083 • Change in fund balance • before other financing sources (uses) (2,443,470) (2,443,470) (1,340,106) 1,103,365 • • Other financing sources (uses): Transfer in 568,000 568,000 - (568,000) • Transfer out (240,890) (240,890) (193,101) 47,789 • Total other financing sources (uses) 327,110 327,110 (193,101) (520,211) • Change in fund balance (2,116,360) (2,684,360) (1,533,207) 1,151,154 • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 2,750,000 2,750,000 2,564,861 (185,139) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 633,640 $ 65,640 $ 1,031,654 $ 966,015 • • • • • 57 CITY OF TIGARD, OREGON ELECTRICAL INSPECTION FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Electrical permit fees $ 214,200 $ 214,200 $ 218,154 $ 3,954 Electrical plan check fees 3,060 3,060 6,865 3,805 Interest earnings 3,184 3,184 3,516 332 Total revenues 220,444 220,444 228,535 8,091 EXPENDITURES: Contingency 28,000 28,000 - 28,000 Change in fund balance before other financing (uses) 192,444 192,444 228,535 36,091 Other financing (uses): Transfer out (190,695) (190,695) (186,721) 3,974 Change in fund balance 1,749 1,749 41,814 40,065 UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 159,180 159,180 180,842 21,662 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 160,929 $ 160,929 $ 222,656 $ 61,727 • 58 • • • • CITY OF TIGARD, OREGON UNDERGROUND UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 • • • • • Variance Budgeted Amounts Actual Favorable . Original Final Amounts (Unfavorable) • REVENUES: • Charges for services $ 47,530 $ 47,530 $ 80,309 $ 32,779 Interest earnings 7,759 7,759 5,396 (2,363) • • Total revenues 55,289 55,289 85,705 30,416 EXPENDITURES: • Contingency 15,000 5,000 - 5,000 • Capital projects 105,000 115,000 60,218 54,782 • Total expenditures 120,000 120,000 60,218 59,782 Change in fund balance (64,711) (64,711) 25,487 90,198 • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 387,954 387,954 342,027 (45,927) • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 323,243 $ 323,243 $ 367,514 $ 44,271 • • • • 59 CITY OF TIGARD, OREGON INSURANCE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Interest earnings $ 10,564 $ 10,564 $ 9,049 $ (1,515) Miscellaneous 31,500 31,500 27,037 (4,463) Total revenues - change in fund balance 42,064 42,064 36,086 (5,977) UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 528,184 528,184 538,913 10,729 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 570,248 $ 570,248 $ 574,999 $ 4,752 • • • • • • • • • • • • • • • • • • • • • 60 • • • • CITY OF TIGARD, OREGON BUILDING FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 • • • • • • • Variance Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) • REVENUES: • Licenses and permits $1,048,022 $1,048,022 $1,522,279 $ 474,257 • Charges for services 9,180 9,180 10,020 840 • Interest earnings 18,846 18,846 19,072 226 Miscellaneous - - 24,622 24,622 . Total revenues 1,076,048 1,076,048 1,575,993 499,945 • EXPENDITURES: • Development services 1,201,220 1,313,289 1,301,482 11,807 Contingency 250,000 137,931 - 137,931 • Total expenditures 1,451,220 1,451,220 1,301,482 149,738 • • Change in fund balance before other financing sources (uses) (375,172) (375,172) 274,511 649,683 • • Other financing sources (uses): Transfer in 451,954 451,954 500,246 48,292 Transfer out (485,146) (485,146) (485,146) - • Total other financing sources (uses) (33,192) (33,192) 15,100 48,292 Change in fund balance (408,364) (408,364) 289,611 697,975 • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 942,281 942,281 1,061,035 118,754 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 533,917 $ 533,917 $ 1,350,646 $ 816,729 • 61 CITY OF TIGARD, OREGON TRAFFIC IMPACT FEE URBAN SERVICES FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: System development charges $ 100,000 $ 100,000 $ 270,574 $ 170,574 Interest earnings 25,492 25,492 14,980 (10,512) Total revenues 125,492 125,492 285,554 160,062 EXPENDITURES: Contingency 148,000 148,000 - 148,000 Capital projects 950,000 950,000 601,158 348,842 Total expenditures 1,098,000 1,098,000 601,158 496,842 Change in fund balance before other financing (uses) (972,508) (972,508) (315,604) 656,904 Other financing (uses): Transfer out (40,049) (40,049) (37,540) 2,509 • Change in fund balance (1,012,557) (1,012,557) (353,144) 659,413 • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 1,274,575 1,274,575 1,111,979 (162,596) • • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 262,018 $ 262,018 $ 758,835 $ 496,817 • • • • • • • • • 62 • • CITY OF TIGARD, OREGON URBAN SERVICES FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2004 • 1 • Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) • REVENUES: Licenses and permits $ 436,076 $ 436,076 $ 464,643 $ 28,567 Charges for services 3,150 3,150 5,364 2,214 Interest earnings 12,669 12,669 15,611 2,942 • Total revenues 451,895 451,895 485,618 33,723 • EXPENDITURES: • Contingency 111,000 111,000 - 111,000 • Change in fund balance before other financing (uses) 340,895 340,895 485,618 144,723 Other financing (uses): ! Transfer out (512,810) (512,810) (498,297) 14,513 • • Change in fund balance (171,915) (171,915) (12,679) 159,236 r UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 633,433 633,433 761,816 128,383 • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 461,518 $ 461,518 $ 749,137 $ 287,619 63 r r CITY OF TIGARD, OREGON TREE REPLACEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) Other financing (uses) and change in fund balance: Transfer out $ (30,000) $ (30,000) $ (22,663) $ 7,337 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 30,000 30,000 22,663 (7,337) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ - $ - Note: This fund was closed to the Parks Capital Fund in the year ended June 30, 2004 64 f CITY OF TIGARD, OREGON STREET MAINTENANCE FEE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • for the fiscal year ended June 30, 2004 • • Variance Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) REVENUES: Fees and charges $ 200,000 $ 200,000 $ 124,055 $ (75,945) • Interest earnings - - 81 81 Total revenues - change in fund balance 200,000 200,000 124,136 (75,864) UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR - - - - • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 200,000 $ 200,000 $ 124,136 $ (75,864) • • • • • • • • • • • • • • • • 65 • • ✓ Debt Service Funds-.. The balance sheet. and statement of revenues, expenditures; and changes -in furid'balance' . of the. rionmajgr debt service :fund is reported in the combining. nonmajor governmental fund statements.' Fund statements for the major. debt service. fund are reported' in W6 basic w finaricibl statements;. Schedules of:revenues; expenditures, and changes in fund"balance- budget and actual are also presented* here fior each debt service fund:.- _ Maior Debt Service. Fund: Bancroft..Debt• Service Fund = .This fund accounts for payment -of Bancroft -.improvement.':, bond''principal and interest: The: sou'rc'es 'of revenue .is'the, collection of.:assessments. " against..benefited property, interest•and, contributions' from other funds,:for. their;,share of costs: Nonmai.or Debt `Servi6e,Fund: General, Obligation Debt Service ,'Fund: This fund accounts for payment: of .general', obligation bond principal: and 'interest... The..,sources of revenue; is from. property' taxes. and interest, earnings. CITY OF TIGARD, OREGON BANCROFT BOND DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Collection of bonded assessments $ 418,136 $ 418,136 $ 557,911 $ 139,775 Interest earnings 177,973 202,148 349,012 146,864 Miscellaneous - - 41 41 Total revenues 596,109 620,284 906,964 286,680 EXPENDITURES: Debt service 3,052,820 3,202,820 3,017,585 185,235 Change in fund balance before other financing sources (2,456,711) (2,582,536) (2,110,621) 471,915 Other financing sources: Proceeds from issuance of bancroft improvement bond 2,225,706 2,225,706 1,947,678 (278,028) Change in fund balance (231,005) (356,830) (162,943) 193,887 DESIGNATED - FUND BALANCE, BEGINNING OF YEAR 1,012,697 1,012,697 1,213,935 201,238 DESIGNATED FUND BALANCE, • END OF YEAR $ 781,692 $ 655,867 $ 1,050,992 $ 395,125 4) • r • 66 • CITY OF TIGARD, OREGON GENERAL OBLIGATION DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2004 • • • • • • • Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: ~ Taxes $ 594,648 $ 594,648 $ 606,728 $ 12,080 Interest earnings 22,908 22,908 12,937 (9,971) • • Total revenues 617,556 617,556 619,665 2,109 EXPENDITURES: • Debt service 1,014,395 1,014,395 1,014,394 1 Change in fund balance (396,839) (396,839) (394,729) 2,110 • DESIGNATED FUND BALANCE, • • BEGINNING OF YEAR 1,145,382 1,145,382 1,057,050 (88,332) DESIGNATED FUND BALANCE, END OF YEAR $ 748,543 $ 748,543 $ 662,321 $ (86,222) • • • • • • e e 67 - A . ed "ere' ndS ' re'reP is . u {unds a er► ' 'Pr ' rojects find statem 01E is • C a or capital P , over'. ~ta mentai basic fjnanc~al maj°r. J . , rtea -in the a ;dual npnm 1 non 'repo p all ;ndN bin109 fior , , .e cam fur` are state meats- d:in the d are ` binir<9 ' . are.repo• ital pCOlects. d actua: Co►7! ~osmbined totals J the or .cap budget, an The eats V. fund balance- Fund; statem as ►r' s and chars J Jun fun.. expenditure . 'rojects d. of revenues, cap e ital P dutes . tor'each {aci;ity Sch- resented:here ma'ar City rv also P und__ aside for fotuce, . _ wits monies set Ca Ita► PrO - is; for N►a or d . accoun I I V, .Fund This I _ This fund . fun lac 1 ments: ± ect fund { `bond. OPrOVe - una: vemerlt; prc?! the, sale ° r Ca ital p!ra ects trictlCaplta► .IDs{°ct projects...{rom Non ma ° ent.p~s ent ; 1 Im ,,6vern.. ImPrOVem of -a, uth al construction . • . oLoca . of Loc er aebt, ounts for City,s portion on _ {und'acc, : The. partm - onstructi oth is for erta~n d - This awn notes accOUnnQtes,and c t Fun nticip c~ee'~und anticipatio. plstric and a imPa n Yraffic rovement the sate ofi b the ImP . . t from s from. opal rotes e Street L' . Istnct p of resOur C - Wall ent d~ sfer . , _ _ , , local imPr°ve► {uhded by a tran e of the,P101, ct ~s ' . . . , - ' - " CITY OF TIGARD, OREGON NONMAJOR CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 2004 Dartmouth Wall Street Local Local Improvement Improvement District District Fund Fund Total ASSETS: Cash and investments $ 8,971 $ 52,943 $ 61,914 LIABILITIES AND FUND BALANCES: LIABILITIES: Accounts payable and accrued liabilities $ - $ 52,943 $ 52,943 FUND BALANCES - UNRESERVED 8,971 - 8,971 Total liabilities and fund balances $ 8,971 $ 52,943 $ 61,914 • 68 • • CITY OF TIGARD, OREGON NONMAJOR CAPITAL PROJECTS FUNDS • COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE • For the fiscal year ended June 30, 2004 • i~ • • Dartmouth Wall Street • Local Local Improvement Improvement District District Fund Fund Total REVENUES: • Interest earnings $ 146 $ - $ 146 EXPENDITURES: Capital projects 225 107,908 108,133 Change in fund balance • before other financing sources (79) (107,908) (107,987) • Other financing sources: Transfers in - 107,908 107,908 • Total other financing sources (uses) - 107,908 107,908 • • Change in fund balance (79) - (79) 0 • UNDESIGNATED, UNRESERVED FUND BALANCE, • BEGINNING OF YEAR 9,050 - 9,050 UNDESIGNATED, UNRESERVED FUND BALANCE, • END OF YEAR $ 8,971 $ - $ 8,971 0 • • • • • • s • ,0 • • 69 • • • CITY OF TIGARD, OREGON FACILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Interest earnings $ 234,076 $ 234,076 $ 146,265 $ (87,811) EXPENDITURES: Contingency 1,190,000 - - - Capital projects 7,387,380 8,927,380 8,736,706 190,674 Total expenditures 8,577,380 8,927,380 8,736,706 190,674 Change in fund balance before other financing sources (uses) (8,343,304) (8,693,304) (8,590,441) 102,863 Other financing sources (uses): Transfers in 775,485 775,485 708,235 (67,250) Transfers out (568,000) (568,000) - 568,000 Total other financing sources (uses) 207,485 207,485 708,235 500,750 f Change in fund balance (8,135,819) (8,485,819) (7,882,206) 603,613 • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 11,703,778 11,703,778 12,054,728 350,950 • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 3,567,959 $ 3,217,959 $ 4,172,522 $ 954,563 • • • • • • • i • • 70 • • • CITY OF TIGARD, OREGON DARTMOUTH LOCAL IMPROVEMENT DISTRICT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 • Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) • REVENUES: Interest Earnings $ 183 $ 183 $146 $ (37) • EXPENDITURES: • Capital projects 9,319 9,319 225 9,094 Change in fund balance (9,136) (9,136) (79) 9,057 • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 9,136 9,136 9,050 (86) • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ 8,971 $ 8,971 • • • • • • • • • • • • • • 71 • • • CITY OF TIGARD, OREGON WALL STREET LOCAL IMPROVEMENT DISTRICT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) EXPENDITURES: Capital projects $ 150,000 $ 150,000 $ 107,908 $ 42,092 Total expenditures and change in fund balance before other financing sources 150,000 150,000 107,908 42,092 Other financing sources: Transfer in 150,000 150,000 107,908 (42,092) Change in fund balance - - - UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR - - - - UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ - $ - 72 ! A • • • • • • • • • • • • • • • • • • • • • City of Tigard, Oregon • • • 1 1 1 'Enterp,rtse,,Funds For GAAP .reporting' purposes, :the' "City" reports three', proprietaryfunds as'-major. funds.- r :These funds are, the • Sanitary. Sewer Fund; the 'Storm; Sewer. Fund, `which consists 'of the " Storm, Sewer Fund' arid. the' 1Nater,Quality/Quantity Fund;' a'nd the Water Fund„which; includes the Water Fund, Water. SDC.•Fund and Water,C I.P Fund However, for budgetary : and legal purposes these funds are `accounted for,separately as listed below. All ,of the. City's enterprise,funds* meet: too criteria` for major fund;reporting and are reported - in-,the- basic'financial.statements: ;'Sclediales:or revenues and changes in fund net assets budget and actual are. presented h`ere'fo,reaeh individual enterprise. fund as required by=Oregon regulations: MaW'Enterprise Funds: Sanitary Sewer Fund -,.This fund accounts for the City's sewerr.utility_ operations: $ewerFund -,,This fund'accou its~for ; e"City's storm drainage operations:: Storm. Storm $ewer.Fund (budgetary basis financial,, statements'only) . .:Water Quality/.Quantity Fund,(budgetary"bass'fnancial statements only) Water Fund -'This fund accounts for the Gity's water operations:.. ~''.'Water Fund: (budggetary basis financial' statements, on{y) . , ; " , " ' , • , • . • , . Water.SDC•F'und.(budgetary.basi s. fnancial statements only); Water,ClP'Fund (budgetary ' ;basis:finaneial statements only)' a % CITY OF TIGARD, OREGON SANITARY SEWER FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Service charge $ 1,515,310 $1,740,010 $ 1,809,032 $ 69,022 Miscellaneous - - 5,302 5,302 Interest earnings 167,762 167,762 148,969 (18,793) Total revenues 1,698,072 1,922,772 1,963,303 40,531 EXPENDITURES: Public works 627,883 627,883 471,733 156,150 Contingency 282,000 68,000 - 68,000 Capital projects 922,300 1,351,000 1,262,264 88,736 Total expenditures 1,832,183 2,046,883 1,733,997 312,886 Change in fund balance before other financing (uses) (134,111) (124,111) 229,306 353,417 Other financing (uses): Transfer out (290,353) (290,353) (257,687) 32,666 • Change in fund balance (424,464) (414,464) (28,381) 386,083 • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 8,388,092 8,388,092 9,262,579 874,487 • • UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 7,963,628 $ 7,973,628 $ 9,234,198 $ 1,260,570 • • • • • • • • • • • • 73 • • • • CITY OF TIGARD, OREGON • SANITARY SEWER FUND • RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES • TO PROPRIETARY REVENUES AND EXPENSES • For the fiscal year ended June 30, 2003 • • • Operating and • Non Operating Expenditures / • Revenues Expenses • • Sanitary Sewer $ 1,963,303 $ 1,733,997 • • System development revenue 446,113 - • Change in accrued compensated absences - 439 • Expenditures capitalized - (1,295,430) • Services performed by other funds - 257,687 Depreciation expense - 414,041 • • Revenue and expenses - page 27 $ 2,409,416 $ 1,110,734 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 74 • CITY OF TIGARD, OREGON STORM SEWER FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Intergovernmental revenue $ 15,000 $ 15,000 $ - $ (15,000) Service charge 1,157,423 1,157,423 1,120,363 (37,060) Miscellaneous - - 4,438 4,438 Interest earnings 15,640 15,640 13,859 (1,781) Total revenues 1,188,063 1,188,063 1,138,660 (49,403) EXPENDITURES: Public works 593,025 593,025 524,814 68,211 Contingency 200,000 200,000 - 200,000 Capital projects 278,500 278,500 121,795 156,705 Total expenditures 1,071,525 1,071,525 646,609 424,916 Change in fund balance before other financing (uses) 116,538 116,538 492,051 375,513 • Other financing (uses): • Transfer out (457,325) (457,325) (394,002) 63,323 Change in fund balance (340,787) (340,787) 98,049 438,836 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 782,000 782,000 974,578 192,578 • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 441,213 $ 441,213 $1,072,627 $ 631,414 75 • CITY OF TIGARD, OREGON • WATER QUALITY/QUANTITY FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2004 • • • • • • • Variance ` Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) REVENUES: • • Service charge $ 40,000 $ 40,000 $ 36,500 $ (3,500) • Interest earnings 38,120 38,120 31,007 (7,113) • • Total revenues 78,120 78,120 67,507 (10,613) • EXPENDITURES: • • Contingency 1,660 1,660 - 1,660 • Capital projects 10,000 10,000 5,849 4,151 • • Total expenditures 11,660 11,660 5,849 5,811 Change in fund balance • before other financing (uses) 66,460 66,460 61,658 (4,802) • • Other financing (uses): • Transfer out (1,080) (1,080) (1,080) - • • Change in fund balance 65,380 65,380 60,578 (4,802) UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 1,905,983 1,905,983 1,890,798 (15,185) • UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 1,971,363 $1,971,363 $1,951,376 $ (19,987) • • • • • • • • • • 76 • CITY OF TIGARD, OREGON STORM SEWER FUNDS RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES For the fiscal year ended June 30, 2003 Operating and Non Operating Expenditures / Revenues Expenses Storm Sewer $ 1,138,660 $ 646,609 Water Quality / Quantity 67,507 5,849 Total 1,206,167 652,458 System development revenue 405,223 - Change in accrued compensated absences - (1,678) Expenditures capitalized - (114,929) Services performed by other funds - 395,082 Depreciation expense - 350,063 Revenue and expenses - page 27 $ 1,611,390 $ 1,280,996 • • • • 77 • • • • CITY OF TIGARD, OREGON • WATER FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2004 • • • • • • • • Variance Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) REVENUES: • Service charge $ 5,416,093 $ 5,418,593 $ 6,286,871 $ 868,278 • System development charges 110,000 110,000 250,955 140,955 • Interest earnings 124,052 145,052 134,667 (10,385) • Miscellaneous 34,000 34,000 14,014 (19,986) • Total revenues 5,684,145 5,707,645 6,686,507 978,862 • EXPENDITURES: • • Public works 4,879,819 4,879,819 4,458,056 421,763 • Contingency 1,086,000 1,086,000 - 1,086,000 • Capital projects 779,372 779,372 298,073 481,299 • Total expenditures 6,745,191 6,745,191 4,756,129 1,989,062 • • Change in fund balance • before other financing (uses) (1,061,046) (1,037,546) 1,930,378 2,967,924 • • Other financing (uses): • Transfer out (2,772,832) (2,772,832) (1,089,115) 1,683,717 0 Total other financing sources (uses) (2,772,832) (2,772,832) (1,089,115) 1,683,717 • • Change in fund balance (3,833,878) (3,810,378) 841,263 4,651,641 • • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 6,202,622 6,202,622 6,529,718 327,096 • UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 2,368,744 $ 2,392,244 $ 7,370,981 $ 4,978,737 • • • • • • • • • • 78 • • • CITY OF TIGARD, OREGON WATER SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: System development charges $ 300,000 $ 300,000 $ 452,129 $ 152,129 Interest earnings 28,668 28,668 28,439 (229) Total revenues 328,668 328,668 480,568 151,900 EXPENDITURES: Contingency 203,500 203,500 - 203,500 Capital projects 225,000 225,000 - 225,000 Total expenditures 428,500 428,500 - 428,500 Change in fund balance before other financing (uses) (99,832) (99,832) 480,568 580,400 Other financing (uses): Transfer out (392,578) (392,578) - 392,578 Change in fund balance (492,410) (492,410) 480,568 972,978 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 1,433,393 1,433,393 1,529,040 95,647 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 940,983 $ 940,983 $ 2,009,608 $ 1,068,625 • 79 • CITY OF TIGARD, OREGON WATER CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 • • • • • • Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) • REVENUES: • • System development charges $ 225,000 $ 225,000 $ 393,624 $ 168,624 • Interest earnings 82,206 82,206 69,912 (12,294) Total revenues 307,206 307,206 463,536 156,330 • EXPENDITURES: • • Contingency 902,000 902,000 - 902,000 Capital projects 4,490,857 4,490,857 1,167,373 3,323,484 Debt Service 1,929,032 1,929,032 - 1,929,032 • Total expenditures 7,321,889 7,321,889 1,167,373 6,154,516 • Change in fund balance • before other financing sources (uses) (7,014,683) (7,014,683) (703,837) 6,310,846 Other financing sources (uses): • Bond proceeds 23,847,312 23,847,312 - (23,847,312) • Transfers in 1,929,032 1,929,032 - (1,929,032) • Total other financing sources (uses) 25,776,344 25,776,344 - (25,776,344) • Change in fund balance 18,761,661 18,761,661 (703,837) (19,465,498) UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 4,515,423 4,515,423 4,258,954 (256,469) • • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 23,277,084 $ 23,277,084 $ 3,555,117 $(19,721,967) • • • • • • 80 • CITY OF TIGARD, OREGON WATER FUNDS RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES For the fiscal year ended June 30, 2003 Operating and Non Operating Expenditures / Revenues Expenses Water $ 6,686,507 $ 4,756,129 Water SDC 480,568 - Water CIP 463,536 1,167,373 Total 7,630,611 5,923,502 System development revenue 90,995 - Change in inventory - (24,548) Change in accrued compensated absences - (8,248) Expenditures capitalized - (1,553,347) Services performed by other funds - 1,089,115 Depreciation expense - 991,585 Revenue and expenses - page 27 $ 7,721,606 $ 6,418,059 • • • • • • • • • • • • • 81 • • CITY OF TIGARD, OREGON RECONCILIATION OF BUDGETARY FUND BALANCE TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET ASSETS For the fiscal year ended June 30, 2004 • • Total Total Sanitary Storm Total Sewer Sewer Water Fund balance - budget basis $ 9,234,198 $ 3,024,003 $ 12,935,706 • S Adjustments from budgetary basis to • generally accepted accounting principles basis: • Change in inventory - - 15,685 • Inventory - - 103,869 • Capital assets, net 11,952,386 9,814,741 28,419,467 • Accrued vacation payable (21,417) (20,230) (65,459) • Total Net Assets - generally accepted accounting principles basis - page 26 $ 21,165,167 $ 12,818,514 $ 41,409,268 • • • • • • • • • • • • • • • • • • • 82 • CC n~S mpiried (totals' are ~Ce r ere. Th:e° Se rtea`h is terra,." . funds are repo ncial.statemen :4 are 1n rnalaerv± basin fina actual . ats for ante funds in the, budget, and • bining state me.the enterpr►se nd not assets on regulations ep rted alongside es ,-and,:changeS asuCequired`by ,Greg ithinf ' $ expens:: lce'fun of revenues, internal sere fu w „ Schedules resented here for each - the, Central administrative; nct►ons also. preSen ThiS •fund acGOUnts. f^or. gated to :,the Fleet gervlces fund is foc all activity, re Central; d, accoun City. _ This fin the'C the er;t Fund vistoris,in anagerr': ~rient di o ' i tY .M Man8ge 1e aReGe and Ptope Y . i Mainter► , s :CAPITAL] .AS:S,ETS USED 'IN:.'1'FIE OPERATION OF.00VERNMENTAL FUNDS CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET ASSETS JUNE 30, 2004 Central Fleet/Property Services Management Fund Fund Total ASSETS Current assets: Cash and investments $ 1,112,651 $ 77,814 $ 1,190,465 Accounts Receivable 44 - 44 Inventory 15,414 6,512 21,926 Total assets 1,128,109 84,326 1,212,435 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 194,889 26,630 221,519 Accrued compensated absences 105,944 7,444 113,388 Total liabilities 300,833 34,074 334,907 NET ASSETS Net assets $ 827,276 $ 50,252 $ 877,528 • • • • • • 83 • r • CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For the fiscal year ended June 30, 2004 • • Central Fleet/Property i Services Management Fund Fund Total ~ OPERATING REVENUES: ~ Service charges $ 4,228,579 $ 730,372 $ 4,958,951 Miscellaneous 1,133 1,207 2,340 • Total operating revenues 4,229,712 731,579 4,961,291 • OPERATING EXPENSES: Salaries and wages 2,487,878 312,602 2,800,480 • Contracted services 429,669 113,132 542,801 General, administrative and other 942,580 307,529 1,250,109 • Total operating expenses 3,860,127 733,263 4,593,390 i Operating income (loss) 369,585 (1,684) 367,901 NONOPERATING REVENUE: • Interest revenue 13,903 383 14,286 • Net income (loss) 383,488 (1,301) 382,187 • NET ASSETS - beginning of year 443,788 51,553 495,341 ' NET ASSETS - end of year $ 827,276 $ 50,252 $ 877,528 • • • • • • • • • • • • • • • • • 84 • • • • CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended June 30, 2004 Increase (decrease) in cash and cash equivalents Central Fleet/Property Services Management Fund Fund Totals CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 4,228,579 $ 730,372 $ 4,958,951 Payments to suppliers (1,382,023) (424,917) (1,806,940) Payments to employees (2,487,878) (312,602) (2,800,480) Other receipts 1,133 1,207 2,340 Net cash provided (used) by operating activities 359,811 (5,940) 353,871 CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings 13,903 383 14,286 Net increase (decrease) in cash and cash equivaler 373,714 (5,557) 368,157 Balances--beginning of the year 738,937 83,371 822,308 Balances--end of the year $ 1,112,651 $ 77,814 $ 1,190,465 a RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES • Operating income (loss) 369,585 (1,684) 367,901 Adjustments to reconcile operating income to net cash • provided (used) by operating activities: • Change in assets and liabilities: Receivables, net 4,015 - 4,015 Inventories (4,243) 1,142 (3,101) ' Accounts payable (3,252) (4,798) (8,050) Accrued compensated absences (6,294) (600) (6,894) Net cash provided (used) by operating activities $ 359,811 $ (5,940) $ 353,871 • • • • 85 • • CITY OF TIGARD, OREGON • CENTRAL SERVICES FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 • • • i • Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: • Interest earnings $ 10,461 $ 10,461 $ 13,903 $ 3,442 Miscellaneous - - 1,133 1,133 Total revenues 10,461 10,461 15,036 4,575 EXPENDITURES: • Policy and administration 3,604,470 3,636,542 3,481,096 155,446 Contingency 249,000 130,533 - 130,533 • General government 394,920 494,920 324,270 170,650 Total expenditures 4,248,390 4,261,995 3,805,366 456,629 S • Change in fund balance before other financing sources (uses) (4,237,929) (4,251,534) (3,790,330) 461,204 Other financing sources (uses): Transfer in 4,445,018 4,463,623 4,228,579 (235,044) . Transfer out (73,614) (73,614) (61,053) 12,561 Total other financing sources (uses) 4,371,404 4,390,009 4,167,526 (222,483) Change in fund balance 133,475 138,475 377,196 238,721 r UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 523,050 523,050 556,025 32,975 • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 656,525 $ 661,525 $ 933,221 $ 271,696 • 86 • CITY OF TIGARD, OREGON FLEET/PROPERTY MANAGEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2004 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Interest earnings $ 1,200 $ 1,200 $ 383 $ (817) Miscellaneous - - 1,207 1,207 Total revenues 11200 1,200 1,590 390 EXPENDITURES: Public works 806,368 806,368 660,068 146,300 Contingency 60,000 60,000 - 60,000 Total expenditures 866,368 866,368 660,068 206,300 Change in fund balance before other financing sources (uses) (865,168) (865,168) (658,478) (205,910) Other financing sources (uses): Transfer in 880,630 880,630 730,371 (150,259) Transfer out (74,641) (74,641) (73,796) 845 Total other financing sources (uses) 805,989 805,989 656,575 (149,414) Change in fund balance (59,179) (59,179) (1,903) (355,324) i UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 60,000 60,000 59,596 (404) • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 821 $ 821 $ 57,693 $ 56,872 • i 87 • f r S t City of Tigard, Oregon 1 1 I ` CITY OF TIGARD, CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS COMPARATIVE SCHEDULES BY SOURCE June 30, 2004 and 2003 2004 2003 Governmental funds capital assets: Land $ 5,786,010 $ 6,710,069 Improvements other than buildings 4,928,689 3,565,806 Buildings and building improvements 7,754,415 6,188,741 Office equipment 426,137 1,504,077 Equipment 1,192,490 1,704,871 Autos and trucks 1,653,341 1,568,789 Infrastructure assets 188,559,755 186,824,866 Construction in progress 16,073,456 4,620,012 Total governmental funds capital assets $ 226,374,293 $ 212,687,231 Investment in governmental funds capital assets by source General Fund $ 216,220,454 $ 206,154,986 Special revenue funds 4,768,879 3,941,337 Capital projects funds 5,384,960 2,618,758 Total governmental funds capital assets $ 226,374,293 $ 212,687,231 • • i • 88 CITY OF TIGARD, OREGON CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVITY JUNE 30, 2004 Machinery, Construction Equipment, in Function and Activity Total Land Buildings and Other Infrastructure progress Community services: Police $ 1,314,714 $ $ $ 1,314,714 $ $ Library 199,075 199,075 - Parks 621,882 621,882 Total community services 2,135,671 - 2,135,671 - Community development: Administration 24,451 - - 24,451 - Building 117,339 - - 117,339 - 00 Planning 6,751 - 6,751 - co Engineering 118,220 - - 118,220 - - Operations/admin. 45,728 - - 45,728 - Operations/shops 54,210 - 54,210 - Streets 196,449,743 - - 1,814,626 188,559,755 6,075,362 Operations/management (13,704) - - (13,704) - - Total community development 196,802,738 2,167,621 188,559,755 6,075,362 Policy and administration: Mayor and City Council 5,696 5,696 - City administration - - - - Finance 10,842 - 10,842 Computer services 98,071 - - 98,071 - Accounting 7,981 - - 7,981 - Office services 12,104 - 12,104 - Records 20,688 - - 20,688 - Court - - - Total policy and administration 155,382 - - 155,382 General government 27,280,502 5,786,010 7,754,416 3,741,983 - 9,998,093 Total governmental funds capital assets $ 226,374,293 $ 5,786,010 $ 7,754,416 $ 8,200,657 $ 188,559,755 $ 16,073,455 •~••60*410410 0 ••41090*0 40900000900104'0111041141900000 00t000411 CITY OF TIGARD, OREGON CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY For the fiscal year ended June 30, 2004 Governmental Governmental Funds Funds Capital Assets Capital Assets Function and Activity June 30, 2003 Additions Deductions June 30, 2004 Community services: Police $ 1,746,058 $ 63,537 $ (494,881) $ 1,314,714 Library 435,313 - (236,238) 199,075 Parks 722,249 - (100,367) 621,882 Total community services 2,903,620 63,537 (831,486) 2,135,671 Community development: Administration 61,966 - (37,515) 24,451 Building 143,540 43,191 (69,392) 117,339 Planning 34,900 - (28,149) 6,751 Engineering 232,227 - (114,007) 118,220 Operations/admin. 74,718 - (28,990) 45,728 Operations/shops 54,210 - - 54,210 Streets 190,631,815 6,086,630 (268,702) 196,449,743 Operations/management 28,363 - (42,067) (13,704) Total community development 191,261,739 6,129,821 (588,822) 196,802,738 Policy and administration: Mayor and City Council 19,868 - (14,172) 5,696 City administration 46,385 - (46,385) - Finance 15,059 - (4,217) 10,842 Computer services 317,196 - (219,125) 98,071 Accounting 39,371 - (31,390) 7,981 Office services 40,804 - (28,700) 12,104 Records 50,712 - (30,024) 20,688 Court 5,111 - (5,111) - • Total policy and administration 534,506 - (379,124) 155,382 • General government 17,987,366 11,504,113 (2,210,977) 27,280,502 • Total governmental funds capital assets $ 212,687,231 $ 17,697,471 $ (4,010,409) $ 226,374,293 • • • • • • • • • • 90 • • • • f • r • i • • i • • i • City of Tigard, Oregon • 1 1 1 1 I i ~~etia►n, are ~n~tuded! in this chedules : ts0i lons .a° ®u nd S.: .y r p. 0 Balances _:rransact°op Interest na. and on. AS, I ®ng'. en of Qebt. Se uture bie m `{ljot PaYa `t Ter es f Oro uiremeht ebt Se,tce: ~teq m tUre ~D ones B n tmt~ ear. eat: ~rwem L ts" of Oe Seirvi a .'Rea' utire }f)ebt. f . Bonds o~ r Obl1gat7 CITY OF TIGARD, OREGON SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES For the fiscal year ended June 30, 2004 Property Add Property Taxes Levy as Taxes Receivable Extended Deduct Add Receivable June 30, by Discounts (Deduct) Add Deduct June 30, 2003 Assessor Allowed Adjustments Interest Collections 2004 2003 - 2004 $ - $ 10,072,155 $ (253,014) $ (58,561) $ 4,020 $ (9,519,258) $ 245,342 2002 - 2003 267,349 - 238 (14,105) 11,336 (178,463) 86,355 2001-2002 75,662 - 60 (6,340) 6,904 (40,185) 36,101 2000 - 2001 33,036 - 37 (4,228) 5,580 (21,142) 13,284 1999 - 2000 12,288 - 34 (3,341) 3,085 (8,966) 3,099 1998- 1999 3,189 - 55 (2,064) 627 (280) 1,527 1997 - 1998 & Prior 3,289 - 36 (1,129) 530 (321) 2,404 $ 394,814 $ 10,072,155 _L_(?§2,553j $ (89,768) $ 32,081 $ (9,768,616) $ 388,113 Property Taxes Cash Receivable Distributed as follows: Collections June 30, 2004 General Fund: Current $ 8,936,956 $ 230,335 Prior years' levies 223,377 128,961 Total General Fund 9,160,333 359,296 Enterprise Funds: Prior Years' levies - 17 Debt Service Funds: Current 582,302 15,008 Prior years' levies 25,981 13,792 Total Debt Service Funds 608,283 28,800 Total $ 9,768,616 $ 388,113 NOTE: Other than property taxes are included in Taxes revenue on the • Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance (page 26). • • • • • • • • 91 • • • CITY OF TIGARD, OREGON • SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS For the fiscal year ended June 30, 2004 • • Bond Transactions Interest Transactions • • Outstanding Matured/ Outstanding • Bancroft Bonds Original Issue June 30, 2003 Additions Called Paid June 30, 2004 Matured Paid Issued May 1, 1993 $ 660,000 $ 105,000 $ $105,000 $(105,000) $ - $ 5,200 $ (5,200) • Issued November 30, 1998 1,565,576 1,008,524 500,000 (500,000) 508,524 33,726 (33,726) • • Issued June 27, 2002 1,307,969 1,279,769 32,900 (32,900) 1,246,869 93,712 (93,712) Issued December 3, 2003 1,947,678 - 1,947,678 - - 1,947,678 33,971 (33,971) ' $ 2,393,293 $ 1,947,678 $637,900 $(637,900) $ 3,703,071 $166,609 $ (166,609) General Obligation Bonds • Issued December 4, 2002 $ 13,000,000 $ 13,000,000 $ - $463,552 $(463,552) $12,536,448 $ 550,842 $ (550,842) • • • • • • • • • • • • • • • • • • • 92 • • • • CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF LONG TERM NOTES PAYABLE JUNE 30, 2004 Issued - January 23, 2002 3.00% to 4.35% Original Issue - $ 2,290,248 Total Payment Coupon Debt Date Principal Interest Rate Service January 1, 2005 $ 210,563 $ 72,563 3.00% $ 283,126 January 1, 2006 216,630 66,246 3.25% 282,876 January 1, 2007 222,820 59,205 3.65% 282,025 January 1, 2008 229,201 51,072 3.80% 280,273 January 1, 2009 235,690 42,363 4.00% 278,053 January 1, 2010 247,318 32,935 4.10% 280,253 January 1, 2011 259,053 22,795 4.25% 281,848 January 1, 2012 270,925 11,785 4.35% 282,710 Totals $ 1,892,200 $ 358,964 $ 2,251,164 • • • • • • • • • • • • • • • 93 • • • • CITY OF TIGARD, OREGON ` SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF BANCROFT IMPROVEMENT BONDS • June 30, 2004 • • Issued Issued Issued December 1, 1998 June 27, 2002 December 3, 2003 . Year of Total Requirements 4.39% 7.25% 3.90% • Maturity Principal Interest Principal Interest Principal Interest Principal Interest • 2004-2005 $ 325,569 $ 196,600 $ 160,499 $ 32,519 $ 17,300 $ 91,003 $ 147,770 $ 73,078 • 2005-2006 365,123 180,944 167,622 25,396 36,500 88,491 161,001 67,057 2006-2007 383,860 164,366 175,061 17,957 39,400 85,795 169,399 60,614 • • 2007-2008 225,878 136,958 5,342 235 42,300 82,888 178,236 53,835 2008-2009 232,933 126,469 - - 45,400 79,766 187,533 46,703 2009-2010 246,015 115,614 48,700 76,416 197,315 39,198 • 2011-2022 1,923,693 620,181 - - 1,017,269 546,746 906,424 73,435 ! Totals $3,703,071 $1,541,132 $ 508,524 $ 76,107 $1,246,869 $1,051,105 $1,947,678 $413,920 • • • • • • • • • • • • • • • • • • 94 • • • • CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF GENERAL OBLIGATION BONDS June 30, 2004 Fiscal Issued: December 4, 2002 Year of Total Debt 3.00% to 4.75% Maturity Requirement Principal Interest 2004-2005 $ 974,413 $ 475,908 $ 498,505 2005-2006 972,563 488,335 484,228 2006-2007 975,414 505,836 469,578 2007-2008 972,814 518,411 454,403 2008-2009 974,913 536,063 438,850 2009-2010 976,563 553,795 422,768 2010-2011 976,383 571,890 404,493 2011-2012 974,758 590,281 384,477 2012-2013 977,118 613,891 363,227 2013-2014 972,993 632,787 340,206 2014-2022 8,764,259 7,049,251 1,715,008 $ 18,512,191 $ 12,536,448 $ 5,975,743 • • • • • • • • • • • • • • • • 95 • • • i i i i i w i • w i • i • i i i s ard, Oregon 1of ?gig 1 I -~i< . ~ T . ' f, k ~ f _ ~ , • ~ 1, ~ c y f ~ ; , _ T ~ ..y' 0 ~O ^ O CITY OF TIGARD, OREGON GOVERNMENT-WIDE EXPENSES BY FUNCTION For the last ten fiscal years Fiscal Interest on Year Ended Community Development Policy and Long-Term Storm June 30 Services Public Works Services Administration Debt Sewer Water Water Total 2003 $ 8,058,670 $ 1,890,644 $ 3,311,058 $ 3,548,649 $ 602,291 $ 901,779 $ 1,056,795 $ 5,325,045 $ 24,694,931 2004 8,744,613 2,735,212 3,791,317 6,175,917 947,848 945,102 1,090,550 5,555,590 29,986,149 This schedule has been added with the implementation of GASB 34 effective fiscal year 2003. to Source: Comprehensive Annual Financial Report of the City. CITY OF TIGARD, OREGON GOVERNMENT-WIDE REVENUES For the last ten fiscal years Program Revenues General Revenues Gain (Loss) Fiscal Charges Operating Capital on Disposition Year Ended for Grants and Grants and Intergovernmental Interest Donated of Capital June 30 Services Contributions Contributions Taxes Franchise Fees Revenues Earnings Assets Assets Miscellaneous Total 2003 $ 14,107,966 $ 133,253 $ 87,760 $ 10,472,108 $ 2,567,881 $ 4,704,729 $ 1,505,772 $ (27,850) $ (491,023) $ 677,408 $ 33,738,004 2004 14,697,521 252,805 - 9,763,281 2,431,324 5,204,135 1,317,638 445,899 34,112,603 'This schedule has been added with the implementation of GASB 34 effective fiscal year 2003. Source. Comprehensive Annual Financial Report of the City. 4 ~~~040 40 00••••••••••••••!••••••400000 000040.00000000 00 0•• 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 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 17,045,604 1998 6,973,417 4,072,109 1,914,207 5,084,190 2,171,542 20,215,465 1999 7,778,333 4,476,564 2,100,829 4,349,185 6,850,522 25,555,433 2000 8,322,224 4,738,142 2,287,819 3,902,719 2,699,338 21,950,242 2001 8,696,210 4,832,637 2,593,816 3,894,954 672,656 20,690,273 2002 8,372,801 5,927,523 309,559 2,700,075 2,785,404 20,095,362 2003 8,692,327 5,864,991 279,753 2,971,446 2,647,170 20,455,687 2004 9,014,200 5,996,108 821,553 13,210,578 4,310,054 33,352,493 98 • CITY OF TIGARD, OREGON GENERAL GOVERNMENTAL REVENUES BY SOURCES- • BUDGETARY BASIS • For the last ten fiscal years • • • Fiscal Licenses Inter- Charges • Year Ended Franchise and governmental For Fines and Miscellaneous • June 30 Taxes Fees Permits Revenues Services Forfeitures Revenues' Total 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 19,845,516 • 1998 8,255,173 1,755,719 2,823,031 4,085,789 375,890 378,145 1,522,273 19,196,020 • 1999 8,617,809 1,970,740 2,780,779 4,715,386 449,997 390,967 4,082,654 23,008,332 2000 7,876,219 1,960,768 2,271,148 4,658,795 675,323 371,594 3,404,178 21,218,025 • 2001 8,504,271 2,063,978 4,057,117 4,760,711 732,797 367,732 1,730,569 22,217,175 • 2002 9,018,360 2,674,388 3,147,960 4,778,451 443,418 415,760 1,359,360 21,837,697 2003 10,453,992 2,567,881 3,505,499 4,837,982 865,242 480,963 1,869,653 24,581,212 • 2004 9,775,325 2,431,324 3,668,335 5,456,940 1,148,271 613,785 1,858,371 24,952,351 • • Includes special assessments collections and private donations. • Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 99 • • • • 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 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 94.79% 167,262 7,678,499 96.90% 284,176 3.59% 1998 8,470,116 8,119,848 95.86% 135,325 8,255,173 97.46% 318,590 3.76% 1999 8,915,821 8,400,875 94.22% 227,801 8,628,676 96.78% 418,484 4.69% 2000 7,881,754 7,385,015 93.70% 270,169 7,655,184 97.13% 395,297 5.02% 2001 8,479,977 8,017,056 94.54% 241,309 8,258,365 97.39% 365,837 4.31% 2002 8,984,987 8,498,029 94.58% 241,336 8,739,365 97.27% 373,584 4.16% 2003 10,521,836 9,942,473 94.49% 252,892 10,195,365 96.90% 394,897 3.75% 2004 10,072,155 9,519,258 94.51% 249,358 9,768,616 96.99% 388,113 3.85% 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. 100 • CITY OF TIGARD, OREGON MARKET VALUE AND ASSESSED VALUE OF TAXABLE PROPERTY • For the last ten fiscal years • • • • • • • • Fiscal Market Value • Year Public • Ended Real Personal Utility Total • June 30 Property Property PropertyTotal Assessed Value 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 1999 3,277,118,168 214,501,804 109,989,369 3,601,609,341 2,869,660,834 • • 2000 3,592,171,408 225,516,583 120,517,828 3,938,205,819 3,033,029,082 2001 3,972,873,890 229,782,176 151,476,268 4,354,132,334 3,254,596,701 • • 2002 4,238,288,273 221,640,972 164,079,792 4,624,009,037 3,470,578,863 • 2003 4,410,039,009 215,829,652 178,925,500 4,804,794,161 3,621,710,974 • • 2004 4,773,922,756 206,044,262 171,923,502 5,151,890,520 3,754,359,399 • All property is assessed as of July 1. • • Assessed value, up until June 30, 1997, was defined as market value. A new property tax limitation known as Measure 50 passed in May 1997 which disconnected assessed value from market value for purposes of distributing • property tax levies. Measure 50 reduced assessed value for 1997/98 to the 1995/96 market value less 10% plus new • construction. According to the 1998/99 Washington County summary of assessment and tax roll, assessed values for most properties are now about 80% of market value. • Source: Washington County Department of Assessment and Taxation. • • • • • • • • • • • • • • 101 • • • • CITY OF TIGARD, OREGON SPECIAL ASSESSMENT COLLECTIONS For the last ten fiscal years Fiscal Year Current Ratio of Total Ended Assessments Assessments Collections Outstanding June 30 Due (1) Collected (2) to Amount Due Assessments 1995 $ 208,000 $ 146,548 70.46% $ 2,250,041 1996 135,000 218,667 161.98% 2,088,745 1997 145,000 353,977 244.12% 1,846,910 1998 275,000 173,947 63.25% 6,046,590 1999 1,565,576 2,056,305 131.34% 4,613,840 2000 329,174 971,414 295.11% 3,761,444 2001 234,907 290,268 123.57% 3,494,465 2002 240,894 343,642 142.65% 4,621,388 2003 185,975 542,816 291.88% 4,150,052 2004 637,900 557,911 87.46% 3,471,643 (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 102 CITY OF TIGARD, OREGON PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS (Dollars per $1,000 of Assessed Value rounded to the nearest cent) For the last ten fiscal years Tigard/ Washington Washington Fiscal Metzger Tualatin Beaverton Tualatin County County Year Water School School Tigard Unified Rural Fire Rural Fire Portland Education Other Ended District City of Washington District District Water Sewerage Protection District Community Service Taxing June 30 Combined Tigard County No. 23-J No. 48 District Agency District No. 2 College District Agencies Total 1995 $ 0.25 $ 2.51 $ 1.27 $13.88 $ 12.41 $ 0.07 $ 0.07 $ 1.76 $ 0.82 $ 0.19 $ 0.38 $ 33.61 1996 0.25 2.18 1.52 14.01 12.07 0.06 0.09 1.66 0.79 0.18 0.38 33.19 1997 0.23 2.54 1.35 12.85 11.41 0.05 1.52 0.73 0.30 0.83 31.81 1998 0.27 3.12 2.60 6.60 6.16 1.54 0.37 0.78 21.44 1999 0.28 3.10 2.57 6.65 6.17 1.53 1.15 0.35 0.81 22.61 CD 2000 0.21 2.59 2.54 6.31 6.19 1.56 1.29 0.36 0.70 21.75 W 2001 0.25 2.60 2.53 7.24 6.12 1.59 1.30 0.37 0.70 22.70 2002 0.23 2.58 2.96 7.04 6.37 1.83 1.31 0.55 0.69 23.56 2003 0.23 2.90 2.91 7.90 6.56 1.82 1.12 0.49 0.63 24.56 2004 0.22 2.68 2.90 7.88 8.01 1.83 1.12 0.51 0.62 25.77 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 cannot be changed. Prior to Measure 50, rates were dependent on both the levy and assessed value. Assessment and tax rolls are prepared and maintained by Washington County for all taxing districts with territory in the County. The County collects all taxes against property in the County (except assessments for improvements charged to benefited property and distributes taxes collected at least monthly. No charges are made to the taxing districts for these services. NOTE: - Not all taxing districts are charged on each parcel of property, actual rates on tax bills are a combination of the above depending upon the location of the parcel and the school district and sewer and water district boundaries. Total overlapping tax rates for property in Tigard in 2004 ranged from $12.11/$1,000 to $16.64/$1,000. Source: Washington County Department of Assessment and Taxation. 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 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 1997 35,925 3,111,388,324 5,125,000 4,514,054 6,407,898 0.21% 178.37 1998 36,680 2,711,669,298 3,360,000 206,712 3,153,288 0.12% 85.97 1999 37,200 2,869,660,834 2,991,249 792,529 2,198,720 0.08% 59.11 2000 39,672 3,033,029,082 2,442,075 1,492,889 949,186 0.03% 23.93 2001 42,260 3,254,596,701 1,982,168 1,609,030 373,138 0.01% 8.83 2002 43,040 3,470,578,863 2,824,243 2,154,758 669,485 0.02% 15.55 2003 44,070 3,621,710,974 15,393,293 2,270,985 13,122,308 0.36% 297.76 2004 45,130 3,754,359,399 16,239,519 1,713,313 14,526,206 0.39% 321.87 Excludes bond anticipation notes payable. Sources: City budget documents, Comprehensive Annual Financial Reports of the City and Washington County Department of Assessment and Taxation. 104 • • CITY OF TIGARD, OREGON COMPUTATION OF LEGAL DEBT MARGIN • June 30, 2004 • • • • • • • 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 (2003-2004) $ 5,151,890,520 • General obligation debt limit X 3% 154,556,716 • • • • Gross bonded debt $ 18,131,719 ! Excludable debt - Bancroft improvement bonds (3,703,071) Debt subject to limitation 14,428,648 • • Legal debt margin - amount available for future indebtedness $ 140,128,068 • • Source: Washington County Department of Assessment and Taxation • • • • • • • r 4 105 4 4 1 1 CITY OF TIGARD, OREGON COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT June 30, 2004 Percent Amount Applicable Applicable Net Debt Inside City Inside City Jurisdiction Outstanding of Tigard of Tigard Tigard/Tualatin School District #23-J $ 66,461,843 51.8221% $ 34,441,923 Tri-Metropolitan Transportation District 3,487,367 3.7378% 130,351 Port of Portland 1,860,889 3.4066% 63,393 Metro 5,724,580 3.7216% 213,046 Beaverton School District #48 12,034,255 3.9045% 469,877 Portland Community College 13,992,607 4.6803% 654,896 Washington County 6,805,784 10.1970% 693,986 Tualatin Valley Fire & Rescue District 873,554 13.5856% 118,678 Tualatin Valley Water (Metzger Bond) 491,832 62.2572% 306,201 Sub-Total of Overlapping Debt 111,732,711 37,092,350 City of Tigard 18,131,719 100.0000% 18,131,719 Total for Overlapping (Underlying) Debt $ 129,864,430 $ 55,224,069 Source: Oregon State Treasury Debt Management Division 106 • 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 1995 $ 1,828,000 $ 560,061 $ 2,388,061 $ 18,301,040 13.05% ! 1996 4,385,000 767,516 5,152,516 14,270,841 36.11% 1997 5,755,000 447,957 6,202,957 21,130,604 29.36% • 1998 6,390,000 406,542 6,796,542 20,215,465 33.62% • • 1999 6,190,576 659,946 6,850,522 25,555,433 26.81% • • 2000 2,487,352 211,986 2,699,338 21,950,242 12.30% 2001 2,408,085 207,914 2,615,999 22,638,451 11.56% • 2002 4,195,966 325,036 4,521,002 20,095,362 22.50% 2003 2,351,917 254,833 2,606,750 20,455,687 12.74% • • 2004 3,358,982 929,462 4,288,444 34,524,413 12.42% • 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 • • • • • • • 107 • • • • 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 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 1999 18 26,772,534 229 37,876,657 2000 22 55,244,410 198 (2) 37,202,497 2001 23 47,262,611 576 (2) 114,188,480 2002 12 21,583,399 387 (2) 96,339,584 2003 10 22,289,054 375 (2) 104,951,598 2004 17 59,523,557 375 (2) 99,056,117 (1) From City of Tigard Building Department. Multi-family permits are included in the number of permits issued for residential construction. (2) Residential totals for permits and value include amounts from Urban/Washington County as well as City of Tigard 108 CITY OF TIGARD, OREGON • PRINCIPAL TAXPAYERS June 30, 2004 • • • • • • Percentage of Total • Assessed Assessed Taxpaver Type of Business Valuation Valuation . Pacific Realty Associates Oregon Business Park $ 143,381,150 3.82% • • PPR Washington Square, LLC Washington Square Shopping Mall 80,092,343 2.13% • EOP-Lincoln, LLC Lincoln Center Complex 68,331,810 1.82% • Verizon Northwest Inc Utility - Communications 52,296,628 1.39% Calwest Industrial Holdings, LLC Property Management 30,253,710 0.81% • • Sprint Spectrum Utility - Communications 27,083,650 0.72% • • Portland General Electric Utility - Power Operations 26,378,000 0.70% • Robinson, Constance Property Management 22,980,660 0.61% • • Northwest Natural Gas Utility - Power Operations 22,008,100 0.59% • Portland Hotel Associates Embassy Suites Hotel 21,862,600 0.58% • • • Total Principal Taxpayers 494,668,651 13.18% • • All Other Taxpayers 3,259,690,748 86.82% • • Total $ 3,754,359,399 100.00% • • Source: Washington County Assessment & Taxation records. • • • • • • • • • • • • • 109 • • • • CITY OF TIGARD, OREGON DEMOGRAPHICS STATISTICS For the last ten fiscal years Assessed (2) Value Unemployment of Taxable (3) Rate Fiscal Year (1) Property School Portland Ended June 30 Population Per Capita Enrollment Metro Area 1995 33,744 $ 72,864 9,644 4.70% 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% 1999 37,200 74,537 11,080 4.50% 2000 39,672 76,453 11,145 4.10% 2001 42,260 77,014 11,500 4.50% 2002 43,040 80,636 11,785 7.50% 2003 44,070 82,181 11,686 8.80% 2004 45,130 83,190 11,831 6.80% 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 - City student totals not available 110 • CITY OF TIGARD, OREGON MISCELLANEOUS STATISTICAL DATA June 30, 2004 • • • • • Date of Incorporation 1961 Form of government Mayor / Council with a City • Manager as the administrative head of the government of the City • • Area (Square Miles - incorporated area) 11 Miles of streets 150.00 Population 45,130 • Drinking Water: • Water mains 210 miles • Reservoirs 13 • • • Police protection: Number of stations 1 Number of sworn police officers 57 • • Education: Attendance centers 15 • Number of teachers 630 Number of students 11,831 • Sanitary sewers 146 miles • • • Storm sewer lines 114 miles Building Permits issued (2003-2004) 392 • Recreation and culture: • Number of parks 13, totaling 176 acres Greenways 171 acres • Number of libraries 1 • Number of volumes (estimated) 115,618 . Employees: Classified service (union) 194 • Unclassified (non-union) 83 Information obtained from the various departments of the City of Tigard, Oregon • and Tigard/Tualatin School District #23-J - City student totals not available • 111 • • • • "Co S ' Wilt. ult LAI "Gu PAULY, ROGERS AND CO., P.C. ® CERTIFIED PUBLIC ACCOUNTANTS • 12700 SW 72ND AVENUE • TIGARD, OREGON 97223 • (503) 620-2632 • FAX (503) 684-7523 October 22, 2004 2003-2004 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. The required statements and schedules are set forth in preceding pages of this report. 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 basic financial statements of City of Tigard, Oregon, as of and for the year ended June 30, 2004, and have issued our report thereon dated October 22, 2004. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. The management of City of Tigard, Oregon, is responsible for establishing and maintaining an internal control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control policies and procedures. The objectives of an internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of basic financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the internal control to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the basic financial statements of City of Tigard, Oregon, for the year ended June 30, 2004, we obtained an understanding of the internal control. With respect to the internal control, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide an opinion on the internal control. Accordingly, we do not express such an opinion. Our consideration of the internal control would not necessarily disclose all matters in the internal control that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. 112 f 2003-2004 AUDITORS' COMMENTS AND DISCLOSURES (Continued) S A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control 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 basic 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 and its operations that we consider to be material weaknesses as defined above. This report is intended for the information of City management, the City Council, and the State of Oregon, Secretary of State, Audits Division. However, this report is a matter of public record and its distribution is not limited. ACCOUNTING RECORDS The City's accounting records were adequate to meet the City's financial accounting requirements. BUDGET TRANSACTIONS Expenditures of the various funds were within authorized appropriations for the City's budget period. 2003-2004 and 2004-2005 BUDGETS The budgets adopted by the City for the current and ensuing fiscal years were reviewed during the audit. Based on our testing, the budget preparation and adoption procedures followed by the City were in compliance with the Oregon Local Budget Law. COLLATERAL SECURING BANK DEPOSITS Based on our selective testing, collateral pledged by the depositories appeared to be adequate at all times during the year to meet requirements of Oregon Law. 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 and are not required to be collateralized. • INVESTMENTS The City's investments held during the year ending June 30, 2004, were reviewed and appeared to comply 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 be in compliance with ORS • Chapter 279. HIGHWAY FUNDS We reviewed and tested, to the extent we considered necessary, the City's compliance with the requirements to expend highway funds exclusively for road, footpath, and bicycle path improvements and construction. We noted no noncompliance with those requirements. 113 2003-2004 AUDITORS' COMMENTS AND DISCLOSURES (Continued) INSURANCE AND FIDELITY BONDS Details concerning insurance and fidelity bond coverage were reviewed during the audit. The coverage provided appears to meet legal requirements. We do not have the professional expertise to state whether the insurance coverage is adequate. STATUTORY BONDED DEBT LIMITATION The City's statutory bonded debt limitation was not exceeded during the fiscal year 2002-2004. The debt outstanding appeared to be within this limit. OUTSTANDING WARRANTS The City had no outstanding endorsed warrants at June 30, 2004. PROGRAMS FUNDED FROM OUTSIDE SOURCES We reviewed and tested, to the extent we considered necessary in the circumstances, transactions and reports 0 relative to federal and state grant programs. Based on our testing, we noted no noncompliance with rules and regulations related to programs funded from outside sources. O 127, 0 Q 0 114 goo 0