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CAFR Report - 2002-2003 T ~ 4 K ~ +Ia compreb ° tA 4. Or5, J-,, ]T~ ';.s' •~ti a~ err' x, , ~i i~ j Op" year e For a Comprehensive Annual Financial Report Cover Description/Narrative On the Front Cover: The Sorg Rhododendron Garden is registered with the American Rhododendron Society and named in honor of Mr. Otto Sorg, a long-time Tigard resident. A bronze memorial plaque was placed in the garden during the dedication ceremony on May 8, 2002. The plaque bears a quote from Mr. Sorg, "Please take care of my garden." The City, along with Mr. Sorg's grandson Jeffrey, began transplanting the flowers in May 2000 from the site Mr. Sorg had originally maintained as his own garden. 01 Cover design courtesy of Nancy Lof, City of Tigard Office Services CITY OF TIGARD, OREGON COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year ended June 30, 2003 Prepared by: City of Tigard - Finance Department • • • • • • • • • • • • • • • • • • •iiiiiiii•i,••• 1•iiii~iiiiiii 0 d Q d L CO O N_♦ V City of Tigard, Oregon Table of Contents Page INTRODUCTORY SECTION: Letter of Tra nsmittal .............................................................................1-4 Certificate of Achievement for Excellence in Financial Reporting 5 Organization Chart ..............................................................................6 Mayor and City Council Members ...................................................................7 . FINANCIAL SECTION: Independent Auditors' Report .....................................................................8 Management's Discussion and Analysis 9-20 Basic Financial Statements Government-Wide Financial Statements Statement of Net Assets 21 Statement of Activities 22 • Fund Financial'Statements Major Governmental Funds: Balance Sheet 23 Statement of Revenues, Expenditures, and Changes in Fund Balances 24 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 25 Proprietary Funds: Statement of Net Assets 26 Statement of Revenues, Expenses, and Changes in Fund Net Assets 27 Statement of Cash Flows ...................................................................28 Pension Trust Fund: Statement of Net Assets 29 Statement of Changes in Net Assets 29 Notes to Basic Financial Statements 30-47 Required Supplementary Information: Schedule of Revenues and Expenditures - Budget and Actual: General Fund .............................................................................48 • Other Supplementary Information: . Nonmajor Governmental Funds Combining Statements: Combining Balance Sheet 49 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 50 Special Revenue Funds: . Combining Balance Sheet - Nonmajor Special Revenue Funds 51 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Special Revenue Funds 52 Schedules of Revenues and Expenditures - Budget and Actual: . Criminal Forfeiture Fund ....................................................................53 • Gas Tax Fund 54 Parks Capital Fund ........................................................................55 S City of Tigard, Oregon i 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: County Gas Tax Fund .......................................................................56 • 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 Debt Service Funds: Schedules of Revenues and Expenditures - Budget and Actual: • Bancroft Debt Service Fund .................................................................65 General Obligation Bond Debt Service Fund .....................................................66 Capital Projects Funds: • Combining Balance Sheet - Nonmajor Capital Projects Funds 67 Combining Statement of Revenues, Expenditures and • Changes in Fund Balances - Nonmajor Capital Projects Funds 68 Schedules of Revenues and Expenditures - Budget and Actual: Facility Fund ............................................................................69 • 69th Avenue Local Improvement District Fund 70 • Dartmouth Local Improvement District /Capital Improvement Project Fund 71 Metro Greenspaces Fund ...................................................................72 Park Levy Improvement Fund .................................................................73 Wall Street Local Improvement District Fund 74 • Proprietary Funds: Enterprise Funds: Schedules of Revenues and Expenditures - Budget and Actual: • Sanitary-Sewer Fund ........................................................................75 • Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses - Sanitary Sewer Fund ................................................76 Storm Drainage Fund 77 Water Quality and Quantity Fund 78 • Reconciliation of Budgetary Revenues and Expenditures to Proprietary • Revenues and Expenses - Storm Sewer Funds .................................................79 Water General Fund .......................................................................80- Water Systems Development Fund ............................................................81 • Water Capital Projects Fund 82 . Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses- Water Funds 83 Reconciliation of Budgetary Fund Balances to Generally Accepted Accounting Principles Basis Net Assets 84 • Internal Service Funds: Combining Statement of Net Assets 85 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 86 • Combining Statement of Cash Flows 87 • Schedules of Revenues and Expenditures - Budget and Actual: Central Service Fund .......................................................................88 Fleet/Property Management Fund .............................................................89 City of Tigard, Oregon Table of Contents, Continued Page FINANCIAL SECTION, Continued: Other Supplementary Information, Continued: Other Schedules: Schedule of Property Tax Transactions and Outstanding Balances 90 Schedule of Bond and Bond Interest Transactions 91 Schedule of Future Debt Service Requirements of Long-term Notes Payable 92 Schedule of Future Debt Service Requirements of Bancroft Improvement Bonds 93 Schedule of Future Debt Service Requirements of General Obligation Bonds ....................................................................94 STATISTICAL SECTION: Government-wide Expenses by Function ............................................................95 Government-wide Revenues 96 General Governmental Expenditures By Function - Budgetary Basis - for the last ten fiscal years ......................................................................97 General Governmental Revenues By Sources - Budgetary Basis - for the last ten fiscal years ..................................98 Property Tax Levies and Collections - for the last ten fiscal years 99 Market Value and Assessed Value of Taxable Property - for.the last ten years 100 Special Assessment Collections - for the last ten fiscal years 101 Property Tax Rates - Direct and Overlapping Governments - for the last ten fiscal years 102 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita - for the last ten fiscal years 103 ..104 Computation of Legal Debt Margin - June 30, 2002 Computation of Overlapping General Obligation Debt - June 30, 2003 105 Ratio of Annual Debt Service Expenditures for Long-Term Debt to Total General Governmental Expenditures for the last ten years 106 Property Value, Construction - for the last ten fiscal years 107 Principal Taxpayers - June 30, 2003.......... • ......................................................108 Demographic Statistics - for the last ten fiscal years 109 Miscellaneous Statistical Data - June 30, 2003 110 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS: . Auditors' Comments and Disclosures 111-113 • • i • • • • • • • • • • • City of Tigard, Oregon . i 1 1 1 i INTRODUCTORY SECTION December 16, 2002 'ITY OF ITIGARD 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, 2003. This report consists of management's representations concerning the finances of the City. Consequently, responsibility for the data and the completeness and fairness of the presentation, including all disclosures, rest with management. To provide a reasonable basis for making these representations, management has established internal controls designed to safeguard City assets against loss, theft, or misappropriation, and to ensure the reliability of financial records for preparing financial statements in conformity with generally accepted accounting principles (GAAP) and meet the requirements of the standards prescribed by the Secretary of State. The internal control has been designed to provide reasonable, but not absolute, assurance that these objectives are being met. The concept of reasonable assurance recognizes (1) the cost of the control structure should not exceed the benefits likely to be derived; and (2) the evaluation of cost and benefits require estimates and. judgments by management. We believe that the City's internal controls adequately safeguards assets and provides reasonable assurance oft proper recording of financial transactions. To the best of our knowledge and belief, the enclosed data is presented accurately, in all material respects, along with disclosures necessary to provide the reader with a reasonable understanding of the City's financial affairs. This report was prepared. in accordance with the Governmental Accounting Standards Board (GASB) Statement No. 34 Basic Financial Statements - and Management's . Discussion and Analysis - for State and Local Governments and the related Omnibus Statement No. 37. Implementation of these GASB statements has dramatically changed how the City's financial information is reported this year in comparison to prior years. The format and purpose of these changes are addressed in the Management's Discussion and Analysis (see pages 9-20). We hope you will find this new presentation helpful in your understanding of the financial picture of the City. .Reporting Entity For financial reporting purposes the City is a primary government. Its governing Council is elected by the citizens in a general election. This report includes all organizations and activities for which the elected officials exercise financial control. The City interacts or contracts with various other governmental entities, but is not financially accountable for those entities. 13125 SW Hall Blvd., Tigard, OR 97223 (503) 639-4171 TDD (503) 684-2772 1 A • • • Report Contents There are three main sections to this report: • 1. Introductory Section - Includes the table of contents, a list of the City's principal • officials, the City organization chart, and this transmittal letter. • • 2. Financial Section - Includes the report of independent accountants, Management • Discussion and Analysis, basic financial statements for the- City as a whole, fund financial statements, notes to the basic financial statements, as well as supplemental A combining and individual statements and schedules for the City's funds. A 3. Statistical Section - Includes ten years of summary financial data, debt analysis • and a variety of demographic, economic and general information. • • Additionally, following the Statistical Section are Reports of Independent.Certified Public Accountants that are required by Oregon Statutes. Organization Overview • • The City of Tigard is located in eastern Washington County just 12 miles southwest of • downtown Portland, Oregon. Tigard has continued to be one of the fastest growing • cities in Washington County and, with a population of approximately 44,070, is the • eleventh largest city in the State. • Incorporated in 1961, the City of Tigard is governed by an elected Mayor and four 0 council members who comprise the City Council. The City's Charter established the . A 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 • Mayor and Council provide community leadership, develop policies to guide the City in • delivering services and achieving community goals, and encourage citizen awareness and involvement. The City Council appoints 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 the following service activities: • • Police • Library • • Road and street maintenance and construction • Park facilities and maintenance • Community development activities, including the following: ♦ Planning ♦ Building Inspection ♦ Engineering ♦ Street Lights • • 2 0 • • • Water • Municipal Court The City also maintains the wastewater and storm drainage system within the City limits under an agreement with Clean Water Services (formerly named Unified Sewerage Agency). Fiscal Policies The City of Tigard has an important responsibility to its citizens to carefully account for public funds, manage municipal finances wisely, and plan adequate funding of services and facilities desired and needed by the public. In support of this effort, the City has established a set of fiscal policies to ensure that the • public's trust is upheld. With such fiscal policies, the City has established the framework • under which it will conduct its fiscal affairs, ensuring that it is and will continue to be capable of funding and providing outstanding local government services. • The goals of Tigard's fiscal policies are: • • To enhance the City Council's policy-making ability by providing accurate information on program and operating costs. • To assist sound management of the City government by providing accurate and timely information on current and anticipated financial conditions. • To provide sound principles to guide important decisions of the Council and management which have significant fiscal impact. • To set forth operational principles, which minimize the cost and financial risk of local • government consistent with services, desired by the public. • To employ revenue policies, which prevent undue or unbalanced reliance on any one • source, distribute the cost of municipal services fairly and provide adequate funds to • operate desired programs. • To provide and maintain essential public facilities, utilities, infrastructure, and capital equipment. • To protect and enhance the City's credit rating. • • To insure that all surplus cash is prudently invested in accordance with the. investment policy adopted by the Council to protect City funds and realize a reasonable rate of return. Budgeting Controls • In addition, the City, maintains budgetary controls, 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. • • 3 • • • • • • • Independent Audit • • Oregon State Law requires every municipal corporation to submit an annual financial • report to the Secretary of State and to have its combined financial statements audited by • an independent certified public accountant in accordance with generally accepted • auditing standards and the Minimum Standards for Audits of Oregon Municipal • Corporations as prescribed by the Secretary of State. The independent auditors' opinion has been included in this report. 0 Awards • • For the last eighteen consecutive years, the City has received the Certificate of • Achievement for Excellence in Financial Reporting from the Government 'Finance Officers Association of the United States and Canada (GFOA). In order to be awarded a Certificate of Achievement for Excellence, a governmental unit must publish an easily • readable. and efficiently organized, comprehensive annual financial report, which • conforms to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. In our opinion, this report conforms to these standards. • • A Certificate of Achievement is valid for a period of one year only. We believe, that our current comprehensive annual financial report continues to -meet the Certificate of Achievement Program's requirements, and we are submitting to the GFOA to determine • its eligibility for another certificate. • In addition, the City also received the GFOA s Award for Distinguished Budget Presentation for its last fourteen adopted budgets.. In order to qualify for the • Distinguished Budget Presentation Award, the City's budget document was judged to be • proficient in several categories including policy document, financial plan, operations • guide and communications device. • • Acknowledgements 0 The preparation of the comprehensive annual financial report was made possible by the • dedicated service of the entire staff of the Finance Department and our auditors, Pauly, • Rogers and Co., P.C. Each member of the Department has our sincere appreciation for 49 the contributions made in the preparation of this report. • • In closing, without the leadership and support of the City Council, preparation of this report would not have been possible. • Sincerely, William A. Monahan CraigProsser City Manager Finance Director 4 ~ 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, 2002 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. • e • • 6E OFFjC ETTM~` W UxnFU STATES ~yN - • c CORPORATION President SEAL i 7c Imo, • Executive Director • • • • • • • • ORGANIZATION CHART City of Tigard, Oregon • • Citizens Mayor & City City Council Attorney • - J J • • City Manager • • Police Library Public orks Community FEnWgi n eenng ? city - Finance W' Development Administration • Administration Administration Administration Administration Engineering City Finance • Depar tment Management Depar tment • Operations Readers Services Sanitary Sewer Building Inspection Street Lights/Signals Mayor & Financial Incil Operations Support Technical Services Storm Sewer Current Human Resources Office Services Services I Planning Circulation Water Long Range Risk Management Records Planning I I • • Street Network Services Municipal Court • Maintenance f. • • Fleet Maintenance Property Mgmt. • Parks and • Grounds 6 City of Tigard, Oregon PRINCIPAL OFFICIALS AS OF JUNE 30, 2003 ELECTED OFFICIALS: Name Term Expires Mayor James Griffith* December 31, 2006 Councilor Craig Dirksen 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 • • • * Mayor Griffith passed away on November 28, 2003. The City Council has • appointed Council President Craig Dirksen to fill the Mayor's position until December 31, 2004. An election for the Mayor's position will be held on • November 2, 2004. • 7 • • • • • • i • • • f • i City of Tigard, Oregon 1 1 FINANCIAL SECTION PAULY, ROGERS AND CO., P.C. ® CERTIFIED PUBLIC ACCOUNTANTS • 12700 SW 72ND AVENUE • TIGARD, OREGON 97223 December 16, 2003 • (503) 620-2632 • FAX (503) 684-7523 To the Honorable Mayor and Members of the City Council City of Tigard, Oregon INDEPENDENT AUDITORS' REPORT We have audited the 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, 2003, which collectively comprise the City's basic financial statements, as listed in the table of contents. - The basic financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with 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. An audit includes examining; on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the basic 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 the . City of Tigard, Oregon, as of June 30, 2003, 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. As described in Note 1, the City has implemented a new financial reporting model, as required by the provisions of GASB Statement No. 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments, for the year ended June 30, 2003. Management's discussion and analysis and budgetary comparison information for the General Fund are not • a -required part of the basic financial statements but are -supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted • principally of inquiries of management regarding the methods of measurement and presentation, of • management's discussion and analysis. 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 of Tigard, Oregon's basic financial statements. The introductory section, the other • schedules on pages 90-94 and the statistical section on pages 95-110 are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and • ,individual nonmajor fund financial 'statements and schedules, and the budgetary comparison information for • the City's General Fund, have 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. The introductory section, the other schedules, 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. • s • • 00000 0000 00090 00000 000* City of Tigard, Oregon Management's Discussion and Analysis As management of the City of Tigard, Oregon, we offer readers this narrative overview and analysis of the financial activities of the City of Tigard for the fiscal year ended June 30, 2003. We encourage readers to consider the information presented here" in conjunction .with additional information that we have furnished in our letter of transmittal, which can be found on pages 1-4 of this report. This is the first year that the City has presented its financial statements in conformity with GASB Statement No. 34, a sweeping change to financial reporting requirements for governments. Efforts have been made to provide comparison to prior year data when such data is available. In subsequent years, comparison to prior year data will be provided for all key financial information. Financial Highlights • The net assets of the City of Tigard in the government-wide financial statements are $261,755,136. Of this amount, $213,596,001 was invested in capital assets, net of . • related debt; $8,345,637 is restricted for capital projects and debt service; and the balance of $39,813,498 is considered unrestricted. • At June 30, 2003 the City's governmental funds reported combined ending fund balances of $31,913,463. 'Of this amount, $12,054,728 is committed to completing construction of a new library; $2,103,514 is committed to future debt service, and the balance is primarily available for funding of future program needs. • At June 30, 2003, the General Fund had an unreserved fund balance of $7,878,589 and will be used for maintaining current program levels. Overview of the Financial Statements • This discussion and analysis is intended to serve as an introduction to the City of • Tigard's basic financial statements. The basic financial statements are comprised of • three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other . supplementary information in addition to the basic financial statements themselves. 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 • • 9 • • • 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 • • 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 21-22 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 that 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 22 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. 10 Data from the other 19 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. 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. The basic governmental fund financial statements can be found on pages 22-25 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 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 77-82 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 26-28 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 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 30-48 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 51-55 of this report. ~ 11 • • 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 $261,755,136 at the close of the most recent fiscal year. The largest portion of the City's net assets (76.9%) 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. The City's net assets increased by $9,043,073 during the fiscal year. The largest portion of this increase is related to the acquisition of land for a new library and completion of a' major street renovation project. The remainder of the growth can be directly related to increases in service charge revenues from the water utility operations and other fees that were adjusted during the fiscal year. • The revenues and expenses shown on next page explain changes in net assets for the fiscal year 2003. • • • • • • • • • • • • • • • • • • • • • • • 12 • • Changes in Net Assets For Fiscal Year Ending June 30, 2003 Governmental Business-type Total Percentage Activities Activities Government of Total Revenues Program Revenues Charges for Services $ 73,332 $ 10,048,172 $ 10,121,504 30.00% Grants and Contributions 133,253 - 133,253 0.39% Total Program Revenues 206,585 10,048,172 10,254,757 30.40% Taxes 10,472,108 - 10,472,108 31.04% Interest 912,288 593,484 1,505,772 4.46% Other 11,256,482 248,885 11,505,367 34.10% Total General Revenues 22,640,878 842,369 23,483,247 69.60% Total Revenues 22,847,463 10,890,541 33,738,004 100.00% Expenses Community services 8,058,670 8,058,670 32.63% Public works 1,890,644 1,890,644 7.66% Development services 3,311,058 3,311,058 13.41% Policy and administration 3,548,649 3,548,649 14.37% Interest on long-term debt 602,291 - 602,291 2.44% Sewer - 901,779 901,779 3.65% Storm water - 1,056,795 1;056,795 4.28% Water - 5,325,045 5,325,045 21.56% Total expenses 17,411,312 7,283;619 24,694,931 100.00%, Changes in net assets 5,436,151 3,606,922 9,043,073 Beginning net assets 183,734,819 68,977,244 252,712,063 Ending net assets $ 189,170,970 $ 72,584,166 $ ,261,755,136 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 occurred in FY 1999-00. • • 13 • • • Measure 50 did not change the basis for calculating General Obligation (GO) debt service levies. GO debt senlice 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, 0 2002, voters approved a bond measure in the amount of $13.0 million for a new library. 0 The City sold the bonds to the Oregon Economic and Community Development 0 Department. Taxes collected through the tax levy will repay this bonded debt. 0 Other revenues constitute 34.1% 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, 0 telecommunications, cable television, and solid waste haulers - $2,567,881. 0 • Licenses and permit revenues include fees charged primarily relating to 0 development activities in the City - $3,505,499. • Intergovernmental revenue is the other significant revenue category in Other revenues and totals $4,704,729. These revenue sources include state shared 0 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. 0 Business-type Activities 0 Charges for services represent 30.0% of total revenues and are composed of fees that 0 are charged to all users for services provided such as water, sanitary sewer, and storm 0 water. The sanitary and storm water fees are established by Clean Water Services and 0 are set by the agency each year. The City Council; through an intergovernmental 0 agreement with other water system participants, sets the water rates. 0 i Expenses 0 • Governmental Activities Expenses related to governmental activities are shown in the chart below and are 0 expressed as a percent of total expenses for all governmental activities. Because this is 0 the first year to report governmental activities on the new standard comparison to the 0 prior year is not possible. In subsequent years, this section will discuss and analyze 0 significant differences. 0 0 The majority of the expenses (47%) relate to the City Library and Police Department 0 within the Community services activity. 0 0 • • 0 • 0 14 0 Expenses by Service Type Fiscal Year 2003 Governmental Activities $17,411,312 Interest on Policy and long-term admin debt $ 3,548.649 $ 602,291 20% 3% Community services, $ 8,058,670 Development services, Public works, $ 3,311,058 $ 1,890,644 19% 11% Business-type Activities As with the preceding chart, this is the first year to report business-type activities on the new standard. Comparison to the prior year is not possible. In subsequent years, this section will discuss and analyze significant differences. The majority of the expenses (44%) relate to the drinking water service provider activity. Expenses by Service Type Fiscal Year 2003 Business-type Activities $7,283,619 Sewer $ 907,433 8J% Storm water, Water, $ 1,067,492 $ 5,356,930 9% 44% 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. • 15 • • • • • As of the end of the FY 2003, the City's governmental funds reported combined ending • fund balances of $31,913,463. Of this amount, $15,670,677 is reserved for capital • projects, debt service, and prepaid insurance. The largest of the reserve is in the Facility Fund in the amount of $12,054,728 and represents the bond proceeds for completing construction of the new library. The General Fund is the chief operating fund of the City. At the end of the FY 2003, the • unreserved fund balance was $7,878,589 and can be used for funding of City programs. The remaining balance of $8,355,147 is i.n the City's Special Revenue Funds and is • available for discretionary use in such activities as park development, street • development and maintenance, and the operation of the City's building inspection and permitting programs. • Proprietary Funds The City's Proprietary Funds include the Sanitary Sewer, 'Storm Water, Water Quality/Quantity, and Water funds. On a budgetary basis, the unreserved fund balance in these funds increased by $2,690,759. The majority of the increase was in the Sanitary Sewer and Water Funds. This was primarily due to user fees that were • increased during the fiscal year. These balances will be used for. both meeting future operating and capital needs. Internal Service Funds The City's Internal Service Funds include the Central Services and Fleet/Property • Management Fund. These funds are essentially designed to operate on a "break-even" • basis; however, a fund balance in the Central Services Fund is being maintained for • future replacement of various technology and software needs of the City. • Budgetary Highlights • The City Council approved seven amendments to the adopted budget during the, year • involving six different funds. The first amendment moved funds from the contingency in the Parks Capital Fund for the preparation of a street tree inventory on a citywide basis. • • The second amendment was a contingency transfer in the General Fund to the Library for the funding of a Senior Library Assistant position. The third amendment involved the General, Facility, and the Fleet/Property Management Funds. This amendment was • needed to more accurately reflect the funding source for specific capital improvement • projects. Budget amendment number four was for the funding of space planning for City • Hall and the current City Library. The City is building a new library and the old library will • be used for City office space. A space planning effort was initiated in preparation of • moving other City departments into the old library site. A new position to manage Water • Fund capital projects was created with the fifth budget amendment. The long term • Water Master Plan calls for a new reservoir and related improvements to serve the City. • The City's Police Department received a Local Law Enforcement Block Grant for the purchase of various types of .law enforcement and public safety related equipment and • software. The sixth budget amendment appropriated the grant funds to be used during • the fiscal year. Unanticipated legal expenses resulted in the need for the seventh budget amendment. • • • • 16 • • • Capital Asset and Debt Administration Capital Assets Governmental Activities The City's investment in capital assets for its governmental activities as of June 30, 2003, amounts to $171,866,550 (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 commenced during the fiscal year and the significant increase in land represents the acquisition of the property to build the new library. The total increase in the City's investment in governmental activities capital assets was 3.72%. Capital Assets at Year-End (Net of Depreciation) Total Governmental Percentage Activities Change 2002 2003 2002-2003 Land $3,505,365 $6,710,069 91.42% Construction in Progress 181,685 4,620,012 2442.87% Buildings and building improvements 4,411,484 4,300,072 -2.53% Land improvements 2,610,887 1,940,222 -25.69% Machinery and equipment 1,084,756 954,969 -11.96% Autos and trucks 708,819 344,523 -51.39% Office equipment 1,258,241 1,089,519 -13.41% Infrastructure 151,946,730 151,907,164 -0.03% Total $165,707,967 $171,866,550 3.72% • • • • • • • • • • • • 17 • • • Business-type Activities The City's investment in capital assets for its business-type activities as of June 30, 2003, amounts to $48,011,698 (net of accumulated depreciation). In addition to machinery and equipment and rolling stock, 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 1.55%. Any decreases were attributable to scheduled depreciation. Capital Assets at Year-End (Net of Depreciation) • Total Business-type Percentage • Activities Change . 2002 2003 2002-2003 • Land $997,734 $997,734 0.00% Buildings and building improvements 717,324 687,654 -4.31% Land improvements 64,250 38,132 -68.49% • Sewer System 9,795,283 10,492,068 6.64% Storm drainage system 9,268,668 9,571,972 3.17% Water system 25,713,529 25,860,116 0.57% Machinery and equipment 215,861 89,600 -140.92% • Autos and trucks 493,791 274,422 -79.94% • Total $47,266,440 $48,011,698 1.55% • Additional information on the City's capital assets can be found in note 5 on pages 39-40 • of this report. • Debt Outstanding As of year-end, the City had four types of debt currently outstanding, which are all governmental. They include general obligation bonds ($13,000,000) secured by the City's authority to levy property taxes and assessment bonds ($2,393,293) secured by installment payment contracts with property owners. Also included are short-term bond • anticipation notes secured by the City's full faith and credit and the ability to assess • property owners when the related project is complete. The fourth is a loan though the Oregon Economic Community Development Department (OECDD). This loan was • secured by current and future park system development charges collected by the City. 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. • Additional information on the City's debt can be found on page 41-42 of this report. • • • 18 • Outstanding Debt At Year End Total Percentage Totals Change 2002 2003 2002-2003 Governmental: General obligation $ 245,000 $ 13,000,000 5206.1% Local improvement 2,579,268 2,393,293 -7.2% Bond anticipation notes 3,773,003 2,058,003 -45.5% Long-Term Note 2,290,248 2,091,727 -8.7% Total outstanding debt $8,887,519 $19,543,023 119.9% Economic Factors Tigard's location in the Portland metropolitan area provides its citizens with many, diverse employment opportunities. However, the Portland metropolitan is experiencing higher unemployment rates than the national average. The unemployment rate in the Portland metropolitan area averaged 8.52% during fiscal year 2003 representing an increase of 14.84% from fiscal year 2002. There has been a slight decline in the unemployment rate at the time of publishing of this report. Value added through new construction continues to increase assessed value. Due to the decline in the economy, the increase is not as large as in previous years. The results of the first half of Fiscal Year 2002-03 showed building activity lower than the same time period in FY 2001-02. However, the City is again seeing an increase in construction activity during the first half of FY 2003-04. 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 2003-04 forecast; however, identified three problem areas that require attention: the General Fund, the Gas Tax Fund, and the Water Fund. In response to the forecast, the adopted budget for FY 2003-04 took additional steps to actively mange 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 simply greater than the resources available to • pay for them. The financial forecast suggests the need to go to the voters sometime within the five years to request additional General Fund resources. 19 • • • 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 has adopted a new Street Maintenance Fee that will go into effect in the spring of 2004. • The City is currently reviewing the need for water rate increases given the forecasted • operating and capital needs for the forecast period. • The FY 2003-04 adopted budget does not allow the City to continue "business as usual," • rather it represents a significant shift of management priorities toward extending the • useful life of equipment and vehicles, reduced spending in many areas, and making do with less. The budget, as adopted, eliminated 4.45 positions. 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: Major 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. The City has started discussions on the possible annexation of the Bull Mountain area, begun reviewing the possibility of implementing a utility privilege tax, and analyzing alternative cost saving measures that could be implemented throughout the City. • 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. • 0 • 20 TSMEN'TS B NCIAL- S"'rA ASIC FINA • d CITY OF TIGARD, OREGON STATEMENT OF NET ASSETS June 30, 2003 Governmental Business-Type Activities Activities Total ASSETS Cash and investments $ 34,116,035 $ 17,657,016 $ 51,773,051 Restricted cash and investments - 5,816,599 5,816,599 Accounts receivable 1,141,787 2,636,842 3,778,629 Property taxes receivable 394,796 101 394,897 Assessment liens receivable 4,150,052 - 4,150,052 Prepaid insurance 58,523 58,523 Inventory 14,119 84,027 98,146 Capital assets: Land and construction in process 11,330,081 997,734 12,327,815 Other capital assets (net of accumulated depreciation) 160,536,469 47,013,964 207,550,433 Total Assets 211,741,862 74,206,283 285,948,145 LIABILITIES Accounts payable and accrued liabilities 1,732,304 1,462,705' 3,195,009 Customer deposits 641,893 12,748 654,641 Accrued vacation payable 653,672 146,664 800,336 Noncurrent liabilities: Due with one year Notes payable 199,527 - 199,527 Bond anticipation notes payable 2,058,003 - 2,058,003 Bonds payable 463,552 - 463,552 Special assessment bonded debt with government commitment 285,950 - 285,950 0 Due in more than one year Notes payable 1,892,200 - 1,892,200 Bonds payable 12,536,448 - 12,536,448 4 Special assessment bonded debt with government commitment 2,107,343 - 2,107,343 Total Liabilities 22,570,892 1,622,117 24,193,009 O NET ASSETS Invested in capital assets, net of related debt 165,584,303 48,011,698 213,596,001 ® Restricted for: Capital projects - 5,816,599 5,816,599 ® Debt service 2,470,515 - 2,470,515 Other purposes 58,523 58,523 Unrestricted 21,057,629 18,755,869 39,813,498 e Total Net Assets $ 189,170,970 $ 72,584,166 $ 261,755,136 ® The accompanying notes are an integral part of the basic financial statements. 21 • • CITY OF TIGARD, OREGON f STATEMENT OF ACTIVITIES For the fiscal year ended June 30, 2003 Program Revenues Charges Operating for Grants and Functions/Programs Expenses Services Contributions Governmental activities: Community services $ 8,058,670 $ - $ 104,451 Public works 1,890,644 - 3,900 a, Development services 3,311,058 73,332 24,902 . Policy and administration 3,548,649 - - Interest on long-term debt 602,291 - - Total governmental activities 17,411,312 73,332 133,253 Business-type activities: Sewer 901,779 1,923,598 - . Storm Water 1,056,795 1,246,809 - Water 5,325,045 6,877,765 - Total business-type activities 7,283,619 10,048,172 • Total $ 24,694,931 $ 10,121,504 $ 133,253 . s General Revenues: Taxes Franchise fees Special assessments Licenses and permits Intergovernmental revenues • Fines and forfeitures Interest earnings Donated assets (Loss) on disposition of fixed assets • 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. , 22 Net (Expense) Revenue and Changes in Net Assets Primary Government Governmental Business-Type Activities Activities Total $ (7,954,219) $ - $ (7,954,219) (1,886,744) - (1,886,744) (3,212,824) - (3,212,824) (3,548,649) - (3,548,649) (602,291) - (602,291) (17,204,727) - (17,204,727) - 1,021,819 1,021,819 - 190,014 190,014 - 1,552,720 1,552,720 - 2,764,553 2,764,553 (17,204,727) 2,764,553 (14,440,174) 10,472,108 - 10,472,108 2,567,881 - 2,567,881 87,760 - 87,760 3,505,499 - 3,505,499 4,704,729 - 4,704,729 480,963 - 480,963 912,288 593,484 1,505,772 (27,850) - (27,850) (491,023) - (491,023) 428,523 248,885 677,408 22,640,878 842,369 23,483,247 5,436,151 3,606,922 9,043,073 • 183,734,819 68,977,244 252,712,063 $ 189,170,970 $ 72,584,166 $ 261,755,136 S r CITY OF TIGARD, OREGON • GOVERNMENTALFUNDS BALANCE SHEET June 30, 2003 r Bancroft Other Total . General Facility Debt Service Governmental Governmental Fund Fund Fund Funds Funds ASSETS • Cash and investments $ 8,550,842 $ 12,137,197 $ 1,203,213 $ 11,608,052 $ 33,499,304 Accounts receivable 6,442 - - 1,132,301 1,138,743 Property taxes receivable 354,372 - 40,424 394,796 . Assessment liens receivable - 3,957,244 192,808 4,150,052 Prepaid insurance 58,523 - - 58,523 Total assets $ 8,970,179 $ 12,137,197 $ 5,160,457 $ 12,973,585 $ 39,241,418 • LIABILITIES Accounts payable and accrued liabilities $ 550,358 $ 82,469 $ 338 $ 509,993 $ 1,143,158 Customer deposits 213,973 - - 427,920 641,893 Deferred revenues: Property taxes 268,736 - 29,889 298,625 • Assessment liens receivable - 1,885,552 1,298,095 3,183,647 Accrued interest on delinquent assessments 2,629 - 2,629 Bond anticipation notes payable 2,058,003 - 2;058,003 • Total liabilities 1,033,067 82,469 3,946,522 2,265,897 7,327,955 • FUND BALANCES ' Reserved for: Capital projects 12,054,728 - 1,086,911 13,141,639 Debt service - 1,213,935 1,256,580 2,470,515 • Prepaid insurance 58,523 - - 58,523 Unreserved, reported in: • General Fund 7,878,589 - - 7,878,589 S Special revenue funds - - 8,355,147 8,355,147 Capital projects funds - 9,050 9,050 Total fund balances 7,937,112 12,054,728 1,213,935 10,707,688 31,913,463 Total liabilities and fund balances $ 8,970,179 $ 12,137,197 $ 5,160,457 $ 12,973,585 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 $40,820,682 171,866,550 Other long-term assets are not available to pay for current-period expenditures and, therefore are deterred in the funds: Assessment Liens (includes interest on delinquent liens) 3,186,276 Property taxes earned but not available 298,625 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. 371,506 s)~ Accrued compensated absences are not due and payable in the current period and therefore are not reported in the funds. (563,461) Ir Long-term liabilities - not reported in the funds: 1i Bonds payable, not due and payable in current period (17,485,020) Accrued interest payable, not due and payable in the current period (416,969) " Net Assets of Governmental Activities $ 189,170,970 11 11 The accompanying notes are an integral part of the basic financial statements. 23 1! 11 it CITY OF TIGARD, OREGON GOVERNMENTALFUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE For the fiscal year ended June 30, 2003 Bancroft Other Total General Facility Debt Service Governmental Governmental Fund Fund Fund Funds Funds REVENUES Taxes $ 9,178,139 $ $ $ 1,275,853 $ 10,453,992 Franchise fees 2,567,881 - 2,567,881 Special Assessments - 542,816 - 542,816 Licenses and permits 43,872 - 3,461,627 3,505,499 Intergovernmental revenues 2,587,674 2,250,308 4,837,982 Charges for service 1,466,344 73,332 1,539,676 Fines and forfeitures 480,963 - - 480,963 Interest earnings 225,544 165,631 201,607 309,530 902,312 Miscellaneous 43,376 5,354 375,795 424,525 Total revenues 16,593,793 165,631 749,777 7,746,445 25,255,646 EXPENDITURES Current operating: Community services 8,692,327 - 8,692,327 Public works 2,236,753 - 2,236,753 Development services 2,246,459 1,381,779 3,628,238 Policy and administration 3,377,914 - 506,969 3,884,883 Debt service: Principal - 1,900,975 443,521 2,344,496 Interest 176,282 118,971 295,253 Fiscal charges - - 7,421 - 7,421 Capital outlay 13,858 3,642,381 - 2,957,588 6,613,827 Total expenditures 16,567,311 3,642,381 2,084,678 5,408,828 27,703,198 Excess (deficiency) of revenues over (under) expenditures 26,482 (3,476,750) (1,334,901) 2,337,617 (2,447,552) OTHER FINANCING SOURCES (USES) Proceeds from long-term note - 13,000,000 - 1,509,175 14,509,175 Transfers in 1,277,123 715,746 445,322 1,309,458 3,747,649 Transfers out (1,161,565) - (2,586,084) (3,747,649) Total other financing sources (uses) 115,558 13,715,746 445,322 232,549 14,509,175 Net change in fund balances 142,040 10,238,996 (889,579) 2,570,166 12,061,623 'Fund balances - beginning 7,795,072 1,815,732 2,103,514 8,137,522 19,851,840 ` . Fundbalances - ending $ 7,937,112 $ 12,054,728 $ 1,213,935 $ 10,707,688 $ 31,913,463 The accompanying notes are an integral part of the basic financial statements. • 24 S' • 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, 2003 Net change in fund balances--total governmental funds $12,061,623 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 $ 7,745,505 Less current year depreciation (1,123,748) 6,621,757 In the Statement of Activities, the donation of capital assets are reported. The donation is not a receipt of current resources and thus is not reported in the funds. 27,850 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. (491,023) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Property taxes 18,116 Assessment Liens (455 056) (436 940) 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 (14,509,175) • Principal payments 2,344,496 (12,164,679) • 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 (34,081) Accrued interest on debt (307,038) (341,119) Internal service funds are used by management to charge the cost of administrative functions as well as fleet and property management to individual funds. The net revenue of a portion of internal service funds is reported with governmental activities. 158,682 . Change in Net Assets of Governmental Activities $ 5,436,151 The accompanying notes are an integral part of the basic financial statements. 25 CITY OF TIGARD, OREGON PROPRIETARY FUNDS STATEMENT OF NET ASSETS June 30, 2003 Business-type Activities Governmental Enterprise Funds Activities Total Internal Sanitary Storm Service Sewer Sewer Water Totals Funds ASSETS Current assets: Cash and investments $ 5,125,764 $ 1,667,325 $ 10,658,350 $ 17,451,439 $ 822,308 Accounts receivable 1,226,123 298,161 1,111,644 2,635,928 4,059 Inventory - - 79,321 79,321 18,825 Total current assets 6,351,887 1,965,486 11,849,315 20,166,688 845,192 Noncurrent assets: Restricted cash and investments 3,804,548 993,089 1,018,962 5,816,599 - Capital assets: Land and construction in process 20,433 - 1,451,811 1,472,244 - Other capital assets (net of accumulated depreciation) 10,604,453 9,644,654 26,290,347 46,539,454 - Total noncurrent assets 14,429,434 101637;743 28,761,120 53,828,297 - Total assets 20,781,321 12,603,229 40,610,435 73,994,985 845,192 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 893,856 91,080 420,377 1,405,313 229,569 Customer deposits - 2,118 10,630 12,748 - Accrued vacation payable 20,978 21,908 73,707 116,593 120,282 Total current liabilities 914,834 115,106 504,714 1,534,654 349,851 NET ASSETS Invested in capital assets, net of related debt 10,624,886 9,644,654 27,742,158 48,011,698 Restricted for capital projects 3,804,548 993,089 1,018,962 .5,816,599 Unrestricted 5,437,053 1,850,380 11,344,601 18,632,034 495,341 Total net assets $ 19,866,487 $ 12,488,123 $ 40,105,721 72,460,331 $ 495,341 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 123,835 • Net assets of business-type activities $ 72,584,166 • • The accompanying notes are an integral part of the basic financial statements. • • • • • • • 26 • • CITY OF TIGARD, OREGON PROPRIETARY FUNDS • STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS For the fiscal year ended June 30, 2003 0 Business-type Activities Governmental . Enterprise Funds Activities Total Internal Sanitary Storm Service Sewer Sewer Water Totals Funds OPERATING REVENUES 0 Service charges $ 1,923,598 $ 1,246,809 $ 6,145,422 $ 9,315,829 $ 5,040,408 Miscellaneous 141,308 36 106,209 247,553 5,330 • Total operating revenues 2,064,906 1,246,845 6,251,631 9,563,382 5,045,738 0 OPERATING EXPENSES • Salaries and wages 310,519 405,249 948,143 1,663,911 2,927,562 Contracted services 21,844 7,463 101,917 131,224 563,523 General, administrative and other 72,363 74,583 3,032,173 3,179,119 1,356,380 Depreciation 385,126 332,857 965,184 1,683,167 - Total operating expenses 789,852 820,152 5,047,417 6,657,421 4,847,465 • Operating income 1,275,054 426,693 1,204,214 2,905,961 198,273 NONOPERATING REVENUES Investment revenue 223,690 67,711 298,757 590,158 13,302 0 System development revenue 322,453 332,671 1,260,447 1,915,571 - Total nonoperating revenue 546,143 400,382 1,559,204 2,505,729 13,302 . Net income before transfers 1,821,197 827,075 2,763,418 5,411,690 211,575 0 r Transfers out (262,595) (520,233) (1,147,254) (1,930,082) - • Change in net assets 1,558,602 306,842 1,616,164 3,481,608 211,575 0 Netassets--beginning 18,307,885 12,181,281 38,489,557 68,978,723 283,766 Net assets--ending $ 19,866,487 $ 12,488,123 $ 40,105,721 72,460,331 $ 495,341 • Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 123,835 Net assets of business-type activities $ 72,584,166 0 • 0 • The accompanying notes are an integral part of the basic financial statements. • • 0 0 • • • • 27 40 41 CITY OF TIGARD, OREGON PROPRIETARY FUNDS STATEMENT OF CASH FLOWS For the fiscal year ended June 30, 2003 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 $ 1,524,177 $ 1,067,357 $ 5,730,535 $ 8,322,069 $ 5,040,408 Payments to suppliers (356,802) (602,279) (4,281,344) (5,240,425) (1,919,903) Payments to employees (310,519) (405,249) (948,143) (1,663,911) (2,881,749) Other receipts 141,308 36 106,209 247,553 5,330 Net cash provided by operating activities 998,164 59,865 607,257 1,665,286 244,086 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contributions 517,482 517,482 Acquisition of fixed assets (481,852) (37,928) (472,189) (991,969) Net cash provided (used) by capital and related (481,852) (37,928) 45,293 (474,487) financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings 223,690 67,711 298,757 590,158 13,302 Net increase in cash and cash equivalents 740,002 89,648 951,307 1,780,957 257,388 Balances--beginning of the year 8,190,310 2,570,766 10,726,005 21,487,081 564,920 Balances--end of the year $ 8,930,312 $ 2,660,414 $ 11,677,312 $ 23,268,038 $ 822,308 RECONCILIATION OF OPERATING INCOME TO O NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income $ 1,275,054 $ 426,693 $ 1,204,214 $ 2,905,961 $ 198,273 Adjustments to reconcile operating income to net cash O provided by operating activities: Cash flows reported in other categories: Depreciation expense 385,126 332,857 965,184 1,683,167 Transfers (262,595) (520,233) (1,075,586) (1,858,414) Change in assets and liabilities: O Receivables, net (556,465) (140,513) (447,630) (1,144,608) (1,252) Inventories 25,029 25,029 (6,200) Accounts payable 157,242 (33,741) 22,184 145,685 45,365 Accrued compensated absences (198) (5,198) (11,562) (16,958) 7,900 Deferred revenue - (16) (16) - Deposits - (74,560) (74,560) Net cash provided by operating activities $ 998,164 $ 59,865 $ 607,257 $ 1,665,286 $ 244,086 Supplemental Schedule of Noncash Capital and Related Financing Activities: Contributed sewer, storm and water lines $ 552,281 $ 566,775 $ 547,886 $ 1,666,942 • The accompanying notes are an integral part of the basic financial statements. 28 ! • • CITY OF TIGARD, OREGON ! STATEMENT OF PLAN NET ASSETS PENSION TRUST FUND June 30, 2003 • • • • • • Cash and investments $ 8,899,463 ! ! Net assets held in trust for pension benefits $ 8,899,463 ! ! • STATEMENT OF CHANGES IN PLAN NET ASSETS PENSION TRUST FUND • For the fiscal year ended June 30, 2003 • • • • Additions: • Contributions $ 2,415,334 Investment (loss) (1,202,371) • ! Total additions 1,212,963 Deductions: • Benefit payments and withdrawals (508,460)' ! Increase in net assets 704,503 • Net assets held in trust for pension benefits (see note # 8): Beginning of year 8,194,960 ! End of year $ 8,899,463 ! • The accompanying notes are an integral part of the basic financial statements. • ! ! 29 • Notes to Basic Financial Statements 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. In June 1999, the GASB approved Statement No. 34 Basic Financial Statements and Management Discussion and Analysis for State and Local Governments (GASB34). This Statement provides for significant changes in financial reporting. As a part of this Statement" there is a new reporting requirement regarding the local government's infrastructure (roads, paths, street lights, etc.). The City of Tigard's financial statements for the fiscal year ended June 30, 2003 comply with the requirements of GASB 34 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. • • 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. Currently, the City has only governmental and • proprietary type funds. Major individual governmental funds and major individual enterprise • funds are reported as separate columns in the fund financial statements. 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. • • 30 • • • 41 City of Tigard, Oregon w Notes to Basic Financial Statements 0 • 1. Summary of Significant Accounting Policies, Continued: • As a general rule the effect of interfund activity has been eliminated from the government- w wide financial statements. These charges are included in direct program expense. 4 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. The new GASB34 model sets 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 0 funds are combined in a column in the fund financial statements and detailed elsewhere in • the financial report. • Measurement Focus and Basis of Accounting 0 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 40 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 0 with full accrual accounting. Under the full accrual basis of accounting, revenues are e recorded when earned and expenses are recorded at the time liabilities are incurred, 40 regardless of the timing of related cash inflows and outflows. • Governmental funds financial statements are presented on a modified accrual basis of 0 accounting with a current financial resource measurement focus. This measurement' focus 41 concentrates on the fund's resources available for spending currently or in the near future. 0 Only transactions and events affecting the fund's current financial resources during the period 0 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 0 are recognized as soon as they are both measurable and available. Revenues are 0 considered to be available when they are collectible with then current period or soon enough 0 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 0 accounting. 0 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 31 City of Tigard, Oregon Notes to Basic Financial Statements 1. Summary of Significant Accounting Policies, Continued: 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, while the consumption method is used for proprietary funds on the GAAP basis. 32 • • City of Tigard, Oregon ! Notes to Basic Financial Statements • • 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 • type activities columns in the government-wide financial statements. Capital assets are • 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 40 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 • Activities with accumulated depreciation reflected in the Statement of Net Assets and is 0 provided on the straight-line basis over the following estimated useful lives: • Asset Years • Buildings and improvements 25-40 • Improvements other than buildings 10-20 • Machinery and equipment 5-10 • Vehicles 5-10 • Utility systems 25-40 • Infrastructure 20-40 • • Accrued Compensated Absences and Sick Pay Accumulated vested vacation pay is accrued as it is earned. For governmental funds, the non-current portion (the amount estimated to be used in subsequent fiscal years) is • maintained separately and represents a reconciling item between the fund-level and • government-wide presentations. Only the current portion is reported in the governmental • funds, and is calculated based on historical trends. In business-type/enterprise funds both • the current and long-term liabilities are recorded. • Sick pay, which does not vest, is recognized in all funds when leave is taken. • • Long-term Debt • In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the • applicable governmental activities, business-type activities, or proprietary fund type in the Statement of Net Assets. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or • discount. Bond issuance costs, which are immaterial, are treated as period costs in the year of-issue and are shown as other financing uses. • In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of • debt issued is reported as other financing sources while 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. • 33 • 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 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, 2003, seven appropriation transfers • were made to the budget and no supplemental budget was adopted. • • • 34 • r City of Tigard, Oregon .41 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 to 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, 0 excluding those accounted for in proprietary funds, are accounted for through governmental 0 funds. The measurement focus is upon determination of changes in current financial 0 resources, rather than upon net income determination. The following are the City's major 0 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 0 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 40 financial resources. The following are the City's major proprietary funds: 0 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. 0 the following three budgetary funds: Water Fund, Water SDC Fund and Water CIP 49 Fund. 1111111 • 35 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 County Gas Tax 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 • Debt Service Fund: • • General Obligation Debt Service • • • • • 36 • City of Tigard, Oregon • Notes to Basic Financial Statements • 2. Fund Types, Continued: Nonmajor Governmental Funds, Continued: Capital Projects Funds: • 69th Ave. Local Improvement District Fund • SW Dartmouth Local Improvement District Fund • • Park Levy Improvement Fund Metro Greenspaces 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, 2003: • Cash on hand $ 4,586 Cash held by Department of Finance, Washington County 46,929 • Deposits with financial institutions 2,392,578 Investments 55,145,557 • $ 57,589,650 • Cash and investments are displayed on balance sheet as follows: • • Cash and investments $ 51,773,051 Restricted cash and investments 5,816,599 • $ 57,589,650 • • Deposits Deposits with financial institutions include bank demand deposits and time deposit accounts. The total bank balance is $2,573,142 (book balance is $2,392,578). Of these deposits, '$100,000 was covered by federal depository insurance and $2,473,142 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. 0 37 • 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, 2002. 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 $ 28,822,949 $ 28,822,949 State Treasurer's Local Government Investment Pool 26,322,608 Total Investments $ 55,145,557 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, 2003 is $8,889,463. 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, 2003, the portion of the assessments receivable balance that represents delinquent accounts is approximately $102,293. • • • • 38 • City of Tigard, Oregon • Notes to Basic Financial Statements 5. Capital Assets: • Capital asset activity for governmental activities for the year ended June 30, 2003 was as follows: • Balances Balances • June, 30 June, 30 • 2002 Additions Retirements 2003 S Land $ 3,505,365 $ 3,204,704 $ - $ 6,710069 Construction in progress 181,685 4,438,327 - 4,620,012 • Total non-depreciable 3,687,050 7,643,031 - 11,330,081 Building and building improvements 6,148,367 40,374 - 6,188,741 Land improvements 3,565,806 - - 3,565,806 • Machinery and equipment 1,710,037 97,688 (102,854) 1,704,871 • Autos and trucks 1,776,244 12,349 (219,804) 1,568,789 Office equipment 1,652,964 19,477 (168,364) 1,504,077 Infrastructure 184,479,507 2,345,359 - 186,824,866 Total depreciable 199,332,925 2,515,247 (491,022) 201,357,150 Accumulated depreciation • • Building and building improvements (1,736,883) (151,786) - (1,888',6E39), Land improvements (954,919) (670,665) - (1,625,584) Machinery and equipment (625,281) (124,621) - (749,902) Autos and trucks (1,067,425) (156,841) - (1,224,266) Office equipment (394,723) (19,835) - (414,558) • Infrastructure (32,532,777) (2,384,925) - (34,917,702) • Total accumulated depreciation (37,312,008) (3,508,673) - (40,820,681) Governmental activities capital assets, net $ 165,707,967 $ 6,649,605 $ (491,022) $ 171,866,550 Depreciation expense for governmental activities is charged to functions as follows: General government $ 822,451 • Community services 239,302 • Public works 2,413,686 Developmental services 8,911 • Policy and administration 24,323 • Total depreciation for governmental activities $ 3,508,673 • • • • • 39 • • 0 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, 2003, was as follows: • Balances Balances • June 30, 2002 Additions Retirements June 30, 2003 . Land - non-depreciable $ 997,734 $ - $ - $ 997,734 Land imrpovements 360,669 360,669 Buildings and building improvements 1,072,019 - - 1,072,019 • Sewer system 13,827,540 1,034,133 14,861,673 Storm drainage system 12,019,176 604,702 - 12,623,878 • Water system 39,346,304 996,995 - 40,343,299 • Equipment 938,347 - (85,873) 852,474 Auto and trucks 1,159,538 23,079 (144,611) 1;038,006 • Total depreciable 68,723,593 2,658,909 (230,484) 71,152,018 • Accumulated depreciation Land imrpovements (296,419) (26,118) - (322,537) • Buildings and building improvements (354,695) (29,670) - (384,365) • Sewer system (4,032,257) (337,348) - (4,369,605) • Storm drainage system (2,750,508) (301,398) (3,051,906) • Water system (13,632,775) (850,408) - (14,483,183) Equipment (722,486) (40,388) (762,874) • Auto and trucks (665,747) (97,837) (763,584) • Total accumulated depreciation (22,454,887) (1,683,167) - (24,138,054)_ • Business-type activities • capital assets, net $ 47,266,440 $ 975,742 $ (230,484) $ 48,011,698 • • Depreciation expense for business-type activities is charged to activities as follows: • Sanitary sewer $ 385,126 • Storm sewer 332,857 • Water 965,184 • Total depreciation for business-type activities $ 1,683,167 • • • • • • • • • • • • • • • • • 40 1 • City of Tigard, Oregon Notes to Basic Financial Statements 6. Long-term Debt and Other Debt: • 0 General Obligation Bonds payable Bond transactions for the year ended June 30, 2003, and future maturities of bond- principal and interest, are as follows: General Obligation bond issues - Interest rates from 3.4% to 4.75% Fiscal Year Outstanding Paid Outstanding Future Due June 30, 2002 Additions During Year June 30, 2003 Interest 2003 $ 245,000 $ - $ (245,000) $ - $ - , 2004 - 463,552 - 463,552 550,842 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 2013-2022 - 7,682,038 - 7,682,038 2,055,215 $ 245,000 $ 13,000,000 $ (245,000) $ 13,000,000 $6,526,586 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 Called Outstanding Fiscal Year June 30, During June 30, Future • Due 2002 Year 2003 Interest . 2003 $ 285,347 $ (185,975) $ 99,372 $ 2;103 , 2004 186,578 - 186,578 136,786 . 2005 195,799 - 195,799 127,540 . 2006 285,522 - 285,522' 117,814 2007 215,861 - 215,861 102,323 . 2008 226,631 - 226,631 91,541 . 2009 141,436 - 141,436 80,193 . 2010-2022 1,042,094 - 1,042,094 584,522 $ 2,579,268 $ (185,975) $ 2,393,293 $ 1,242,822 41 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 Total Year Future Debt Due Principal Interest Service 2004 $ 199,527 $ 78,548 $ 278,075 2005 210,563 72,563 283,126 2006 216,630 66,246 282,876 2007 222,820 59,205 282,025 2008 229,201 51,072 280,273 2009 235,690 42,363 278,053 2010 247,318 32,935 280,253 2011 259,053 22,795 281,848 2012 270,925 11,785 282,710 Totals $ 2,091,727 $ 437,512 $ 2,529,239 Balance Balance June 30, June 30, 2002 Additions Retirements 2003 Bond anticipation note (18 month) purchased June 30, 2000, matures January 2, 2002: interest rate 5.1 % $ 1,715,000 $ - $ (1,715,000) $ - Other Debt Other long-term obligations for accured vacation payable and the changes thereto during the year ended June 30, 2003 are as follows: Balance Balance , June 30, June 30, 2002 Additions Retirements 2003 Vacations payable $ 529,380 $563,461 $ (529,380) $ 563,461 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, 2003, are as follows: Balance Balance June 30, June 30, 2002 Additions Retirements 2003 Bond anticipation notes due May 1, 2003; interest rate 4.39% $2,056,003 $ 2,000 $ - $ 2,058,003 42 • 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, 2003, 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. S • 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. • • 43 • • 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, 2003, 2002 and 2001, the City's annual pension cost was approximately $435,000, $279,000 and $211,000, 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 $822,585 for the year ended June 30, 2003. Covered payroll was $7,478,045, for the year ended June 30, 2003. Contributions 'as a percentage of payroll were 11 percent for all eligible employees participating in the plans. 44 • City of Tigard, Oregon Notes to Basic Financial Statements 1 8. Retirement Plans, Continued: . Deferred Compensation Plans A 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 Services of Washington County and remits all collections to Clean Water Services except for 20.7 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. 0 Payments of $5,545,331 were made to Clean Water Services during fiscal year 2003 under this agreement. 0 The City has a similar agreement with the Regional Surface Water Management Agency, 41 which is an affiliate of Clean Water Services, for storm water systems. Payments made to 0 the Agency during fiscal year 2003 under the agreement were $339,573. The net amount retained by the City is reported as revenue in the Enterprise Funds in the 0 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. Segment Information for Enterprise Funds: A The City's Sewer Fund and Storm Drainage Fund account for the acquisition, 0 operation, and maintenance of sewer and storm drainage systems which are supported by 0 user charges. The City's Water Fund accounts for the operation and maintenance of the • City's water system and is supported through user charges. Segment information as of and . for the year ended June 30, 2003, is as follows: 0 Sanitary Storm 0 Sewer Sewer Water 0 Fund Fund Fund Total 49 Operating revenue $ 2,064,906 $ 1,246,845 $ 6,251,631 $ 9,563,382 Depreciation 385,126 332,857 965,184 1,683,167 Operating income 1,275,054 426,693 1,204,214 2,905,961 0 Net income (loss) 1,821,197 827,075 2,763,418 5,411,690 0 Current capital contributions 552,281 566,775 547,886 1,666,942 0 Fixed asset additions 481,852 37,928 472,189 991,969 0 Net working capital 5,437,053 1,850,380 11,344,601 .18,632,034 • Total assets 20,781,321 12,603,229 40,610,435 73,994,985 ' Total equity 19,866,487 12,488,123 40,105,721 72,460,331 0 45 City of Tigard, Oregon Notes to Basic Financial Statements 11. Constitutional Property Tax Limitations: In November 1990, the Oregon voters approved a State constitutional limit on property taxes for schools and nonschool government operations. Under the provisions of the limitation, tax revenues are separated into those for the public school system and those for local government operations other than the public school system. The limitation specifies $10.00 is the maximum allowable tax for each $1,000 of property real market value imposed by local governments other than the public school system. The limitation applies to all state and local taxes and charges on property except for the following: 1. Incurred charges for goods or services received at the owner's option; 2. assessments for capital construction that provide a special benefit to the property and that can be paid off over at lease ten years; 3. taxes to repay bonded debt authorized by the state constitution; 4. taxes to repay existing bonded debt for capital construction, and 5. taxes to repay new bonded debt for capital construction if approved by voters. During May 1997, Oregon voters approved Measure 50 which limits taxes on each property by reducing the _1997-98 assessed value of each property to 90% of its 1995-96 value. Measure 50 also limits future growth of the taxable value of- each property to 3% per year with certain exceptions. Measure 50 also establishes permanent tax rates for Oregon's 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. 12. Overexpenditures of Appropriations: For . the year ended June 30, 2003, the following fund had an overexpenditure of appropriations: Central Service Fund General Government $9,393 13. 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. 46 • City of Tigard, Oregon Notes to Basic Financial Statements • 14. Restatements: • As of and for the year ended June 30, 2003 the District implemented the following S Governmental Accounting Standards Board Statements: • No. 33 - Accounting and Financing Reporting for Non-exchange • Transactions • No. 34 - Basic Financial Statements - and Management's Discussion and . . Analysis - for State and Local Governments • • No. 36 - Recipient Reporting for Certain Shared Non-exchange Revenues - An Amendment of GASB No. 33 • • No. 37 - Basic Financial Statements - Management's Discussion and • Analysis - for State and Local Governments: Omnibus • No. 38 - Certain Financial Statement Note Disclosures . The most significant changes required by the new standard included: • • Management's discussion and analysis • Basic financial statements that included: • Government-wide financial statements, prepared using the • economic resources measurement focus and accrual basis of accounting • Fund financial statements, consisting of a series of statements that focus on a government's major governmental funds • Schedules to reconcile the fund financial statements to the government-wide financial statements . • Notes to the basic financial statements • Required supplementary information,, including certain budgetary schedules. As a result of implementing these pronouncements the following restatements to the June 30, 2002 fund balances were made to determine July 1, 2002 beginning net assets: • Governmental Business-Type • Activities Activities Fund balances - June 30, 2002 $ 19,851,840 $ 68,906,303 • Capital assets 203,019,975 - . Accumulated depreciation on capital assets (37,312,009) Deferred revenues - property taxes, assessment liens 3,921,841 - e Bonds and capital leases payable, net of discounts/(premiums) (5,320,341) - Compensated absences payable (529,380) - • Accrued interest on bonds, and capital leases payable (109,931) - - • Reclassification of internal service funds 212,824 70,941 Net assets - July 1, 2002 $ 183,734,819 $ 68,977,244 • • 47 • • • Required Supplementary Information' CITY OF TIGARD, OREGON GENERALFUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2003 Variance Budgeted Amounts Actual Favorable REVENUES: Original Final Amounts (Unfavorable) Taxes $ 8,983,869' $ 8,983,869 $ 9,178,139 $ 194,270 Franchise fees 2,284,167 2,284;167 2,567,881 283,714 Licenses and permits 38,414 38,414 43,872 5,458 Intergovernmental revenues 2,429,764 2,429,764 2,587,674 157,910 Charges for services 311,700 311,700 791,910 480,210 Fines and forfeitures 407,530 407,530 480,963 73,433 Interest earnings 234,150 234,150 225,544 (8,606) Miscellaneous 47,610 47,610 43,376 (4,234) Total revenues 14,737,204 14,737,204 15,919,359 1,182,156 EXPENDITURES: Community services 9,400,166 9,438,872 8,692,327 746,545 Public works 2,511,437 2,511,437 2,236,753 274,684 Development services 2,573,110 2,573,110 2,246,459 326,651 Policy.and administration 298,407 298,407 279,753 18,654 Contingency 997,000 1,240,794 - 1,240,794 Capital projects 326,250 43,750 13,858 29,892 Total expenditures 16,106,370 16,106,370 13,469,150 21637,220 • Change in fund balance • before other financing sources (uses) (1,369,166) (1,369,166) 2,450,209 3,819,376 • Other financing sources (uses): • Operating transfer in 2,131,077 2,131,077 1,951,557 (179,520) • Operating transfer out (4,566,781) (4,566,781) (4,259,726) 307,055 Total other financing sources (uses) (2,435,704) (2,435,704) (2,308,169) 127,535 • Change in fund balance (3,804,870) (3,804,870) 142,040. 3,946,911 • UNDESIGNATED, UNRESERVED - • FUND BALANCE BEGINNING OF YEAR 6,643,662 6,643,662 7,795,072 1,151,410 • UNDESIGNATED, UNRESERVED - • FUND BALANCE END OF YEAR $ 2,838,792 $ 2,838,792 $ 7,937,112 $ 5,098,321 • • 48 • • • • i • • • • • • • • • • • • • • • • • City of Tigard, Oregon • • • • • • 1 . 1 1 1 1 I Other Supplementary Information Kit, CITY OF TIGARD, OREGON COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2003 General Obligation Special Capital Bond Debt Revenue Projects Service Funds Funds Fund Total ASSETS: Cash and investments $ 10,530,797 $ 30,740 $ 1,046,515 $ 11,608,052 Accounts receivable 1,132,301 - - 1,132,301 Taxes receivable - - 40,424 40,424 Assessment liens receivable 192,808 - - 192,808 Total assets $ 11,855,906 $ 30,740 $ 1,086,939 $ 12,973,585 LIABILITIES: Accounts payable $ 488,303 $ 21,690 $ - $ 509,993 Customer deposits 427,920 - - 427,920 Deferred revenues 1,298,095 - 29,889 1,327,984 Total Liabilities 2,214,318 21,690 29,889 2,265,897 FUND BALANCES - Reserved - for debt service - - 1,057,050 1,057,050 Unreserved 9,641,588 9,050 - 9,650,638 Total fund balances 9,641,588 9,050 1,057,050 10,707,688 • Total liabilities and fund balances $ 11,855,906 $ 30,740 $ 1,086,939 $ 12,973,585 • • • • • • i " • • 49 • • • CITY OF TIGARD, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES • NONMAJOR GOVERNMENTAL FUNDS • For the fiscal year ended June 30, 2003 General Obligation Special Capital Bond Debt Revenue Projects Service Funds Funds Fund Total REVENUES: 4* Property taxes $ - $ - $ 1,275,853 $ 1,275,853 Licenses and permits 3,461,627 - - 3,461,627 Intergovernmental revenues 2,250,308. - - 2,250,308 Charges for services 73,332 - - 73,332 Interest earnings 294,712 234 14,584 309,530 Miscellaneous revenues 375,795 - - 375,795 !e Total revenues 6,455,774 234 1,290,437 7,746,445 EXPENDITURES: Development services 1,381,779 - - 1,381,779 Policy and administration 506,969 - - 506,969 Debt Service 277,861 - 284,631 562,492 Capital projects 2,827,280 130,308 - 2,957,588 Total expenditures 4,993,889 130,308 284,631 5,408,828 Changes in fund balance before other financing sources (uses) 1,461,885 (130,074) 1,005,806 2,337,617 Other financing sources (uses): Proceeds from long-term note 1,509,175 - - 1,509,175 Operating transfer in 1,179,150 130,308 - 1,309,458 Operating transfer out (2,359,353) (226,731) - (2,586,084) Total other financing sources (uses) 328,972 (96,423) - 232,549 • S Changes in fund balance 1,790,857 (226,497) 1,005,806 2,570,166 • FUND BALANCE - beginning of year 7,850,731 235,547 51,244 8,137,522 • FUND BALANCE - end of year $ 9,641,588 $ 9,050 $ 1,057,050 $ 10,707,688 50 Special 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 in the combining nonmajor governmental fund statements. Schedules of revenues, expenditures, and changes in fund balance - budget and actual are also presented here for each individual special revenue fund. Nonmaior Special Revenue Funds: Criminal Forfeiture Fund - This fund accounts for funds and property seized from criminals in connection with crimes committed prior to passage of Ballot Measure 3 Gas Tax Fund - This fund accounts for revenues received from state and county gasoline taxes which are to be expended as specified in the Constitution of the State of Oregon, Article IX, Section 3. Parks Capital Fund - This fund accounts for system development charges for major improvements to recreational facilities within the City. County Gas Tax Fund - In FY 2002-03, the fund balance in the County Gas Tax Fund was transferred to the Gas Tax Fund and revenues will now be deposited in that fund. Traffic Impact Fee Fund - This fund accounts for traffic impact fees charged for new 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 Utility Fund - This fund accounts for monies received from developers for future underground utility improvements. Insurance Fund - Records refunds of prior years workers' compensation premiums 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 in'the City's Capital Improvement Plan (CIP). Urban Services Fund - This fund accounts for all revenues and expenditures related to 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 Washington County. Tree Replacement Fund - In FY 2002-03, the fund balance in the Tree Replacement Fund was transferred to the Parks Capital Fund and revenues will now be deposited in this fund. CITY OF TIGARD, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2003. County Urban Services Criminal Gas Parks Gas Traffic Electrical Underground Traffic Urban Tree Forfeiture Tax Capital Tax Impact Fee Inspection Utility Insurance Building Impact Fee Services Replacement Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total ASSETS: Cash and investments $ 67,585 $ 1,442,767 $ 1,981,414 $ $ 2,659,862 $ 190,397 $ 347,032 $ 538,913 $ 1,148,726 $ 1,281,973 $ 849,465 $ 22,663 $ 10,530,797 Accounts receivable - - 340,134 790,649 - - - - - 1,518 - 1,132,301 Assessment liens receivable 192,808 192,808 Total assets $ 67,585 $ 1,442,767 $ 2,321,548 $ $ 3,643,319 $ 190,397 $ 347,032 $ 538,913 $ 1,148,726 $ 1,281,973 $ 850,983 $ 22,663 $ 11,855,906 LIABILITIES AND FUND BALANCES: LIABILITIES: Accounts payable $ . - $ 90,774 $ 55,796 $ $ 120,497 $ - $ 5,005 $ - $ 45,625 $ 169,994 $ 612 $ - $ 488,303 Customer deposits 287,744 - 9,555 - 42,066 88,555 427,920 Deferred revenues 340,134 957,961 1,298,095 Total liabilities 378,518 395,930 1,078,458 9,555 5,005 87,691 169,994 89,167 2,214,318 FUND BALANCE UNRESERVED 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 Total liabilities and fund balances $ 67,585 $ 1,442,767 $ 2,321,548 $ $ 3,643,319 $ 190,397 $ 347,032 $ 538,913 $ 1,148,726 $ 1,281,973 $ 850,983 $ 22,663 $ 11,855,906 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, 2003 County Urban Services Criminal Gas Parks Gas Traffic Electrical Underground Workers' Traffic Urban Tree Forfeiture Tax Capital Tax Impacl Fee Inspection Utility Compensation Building Impact Fee Services Replacement Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES: Licenses and permits $ - $ - $ 407,578 $ - $ 917,346 $ 227,409 $ - $ - $ 1,258,786 $ 192,900 $ 457,609 $ - $ 3,461,627 Intergovernmental revenues - 1,948,504 - - 301,804 - - - - - - - 2,250,308 Charges for services - 4,187 - - - 54,480 - 11,170 - 3,495 - 73,332 Interest earnings 1,707 29,272 64,102 88,156 3,819 10,593 13,513 23,429 38,552 21,569 294,712 Miscellaneous revenues 811 7,220 64,527 264,317 38,129 790 375,795 Total revenues 2,518 1,989,183 536,207 1,571,623 231,228 65,073 51,642 1,294,175 231,452 482,673 6,455,774 EXPENDITURES: Development services - 401,623 - - - - - 980,156 - - - 1,381,779 Policy and administration 506,969 - - 506,969 Debt Service - 277,861 - 277,861 Capital projects 222,340 1,047,418 967,223 100,000 490,299 2,827,280 Total expenditures 1,130,932 1,325,279 967,223 100,000 980,156 490,299 - 4,993,889 Ul Changes in fund balance N before other financing sources (uses) 2,518 858,251 (789,072) 604,400 231,228 (34,927) 51,642 314,019 (258,847) 482,673 1,461,885 Other financing sources (uses): Proceeds from long-term note - - 1,509,175 - - - - - - - 1,509;175 Transfer in - 463,271 379,270 - - - - 336,609 - - 1,179,150 Transfer out (3,471) (925,085) 6( 5,410) (234,494) (166,178) (272,088) (41,159) (451,468) (200,000) (2,359,353) Total other financing sources(uses) (3,471) (461,814) 1,888,445 (65,410) (234,494) (166,178) - - 64,521 (41,159) (451,468) (200,000) 328,972 Changes in fund balance (953) 396,437 1,099,373 (65,410) 369,906 65,050 (34,927) 51,642 378,540 (300,006) 31,205 (200,000) 1,790,857 FUND BALANCE - beginning of year 68,538 667,812 826,245 65,410 2,194,955 115,792 376,954 487,271 682,495 1,411,985 730,611 222,663 7,850,731 FUND BALANCE - end of year $ 67,585 $ 1,064,249 $ 1,925,618 $ $ 2,564,861 $ 160,842 $ 342,027 $ 538,913 $ 1,061,035 $ 1,111,979 $ 761,816 $ 22,663 $ 9,641,588 000000000000000000000000000000 0000000000000000000000000 CITY OF TIGARD, OREGON CRIMINAL FORFEITURE FUND SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL For the fiscal year ended June 30, 2003 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Interest earnings $ 2,400 $ 2,400 $ 1,707 $ (693) Miscellaneous - - 811 811 Total revenues 2,400 2,400 2,518 118 EXPENDITURES: Contingency 1,500 1,500 - (1,500) Change in.fund balance before other financing (uses) 900 900 2,518 1,618 Other financing (uses): Transfer out (10,000) (10,000) (3,471) 6,529 Change in fund balance (9,100) (9,100) (953) 8,147 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 69,220 69,220 68,538 (682) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 60,120 $ 60,120 $ 67,585 $ 7,465 r 53 • • CITY OF TIGARD, OREGON GAS TAX F.U N D SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For. the fiscal year ended June 30, 2003 • • • • • • Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) • REVENUES: • • State gas tax $ 1,610,201 $ 1,610,201 $ 1,772,260 $ 162,059 • County gas tax 166,068 166,068 176,244 10,176 • Street lighting fees 8,480 8,480 4,187 (4,293) Interest earnings 20,212 20,212 29,272 9,060 is Miscellaneous 2,000 2,000 7,220 5,220 , • Total revenues 1,806,961 1,806,961 1,989,183 182,222 • 0 EXPENDITURES: • • Development services 475,000 475,000 401,623 73,377 • Contingency 293,000 293,000 - 293,000 • Capital projects 510,000 510,000 222,340 287,660 • Total expenditures 1,278,000 1,278,000 623,963 654,037 • • Change in fund balance • before other financing sources (uses) 528,961 528,961 1,365,220 836,259 • 0 Other financing sources (uses): • Transfer in 477,861 477,861 463,271 (14,590) • Transfer out (1,581,583) (1,581,583) (1,432,054). 149,529 • Total other financing sources (uses) (1,103,722) (1,103,722) (968,783) 134,939 • Change in fund balance (574,761) (574,761) 396,437 971,198 • • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 577,500 577,500 667,812 90,312 • UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 2,739 $ 2,739 $ 1,064,249 $ 1,061,510 • • • 0 • • 54 • • 0 u CITY OF TIGARD, OREGON PARKS CAPITAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL O U For the fiscal year ended June 30, 2003 O O O Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: System development charges $ 442,043 $ 442,043 $ 407,578 $ (34,465) Intergovernmental revenues 211,400 211,400 - (211,400) Tree replacement revenue 12,000 12,000 9,375 (2,625) Interest earnings 33,930 33,930 64,102 30,172 Miscellaneous 225,000 225,000 55,152 (169,848) Total revenues 924,373 924,373 536,207 (388,166) EXPENDITURES: Public works - 10,000 - 10,000 Debt Service 277,861 277,861 277,861 - Contingency 273,000 273,000 - 273,000 Capital projects 1,576,100 1,566,100 1,047,418 518,682- 1 expenditures 2,126,961 2,126,961 1,325,279 801,682 O Change in fund balance before other financing sources (792,588) (792,588) (789,072) 3,516 Other financing sources: • Transfer in 410,000 410,000 379,270 (30,730) • Proceeds from long-term note 840,248 840,248 1,509,175 668,927 Total other financing sources 1,250,248 1,250,248 1,888,445 638,197 • Change in fund balance 457,660 457,660 1,099,373 641,713 O UNDESIGNATED, UNRESERVED . FUND BALANCE, BEGINNING OF YEAR 994,434 994,434 826,245 (168,189) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 1,452,094 $ 1,452,094 $ 1,925,618 $ 473,524 O • • O • CITY OF TIGARD, OREGON COUNTY GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2003 • • • • • • Variance Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) • Other financing (uses) • and change in fund balance: • Transfer out $ (80,000) $ (80,000) $ (65,410) $ 14,590 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 80,000 80,000 65,410 (14,590) • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ - $ • Note: This fund was closed to the Gas Tax Fund in the year ended June 30, 2003 • • • • • • • • • • • • • • 56 • • • CITY OF TIGARD, OREGON TRAFFIC IMPACT FEE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2003 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Federal grants $ 660,000 $ 660,000 $ - $ (660,000) Intergovernmental revenues 435,013 435,013 301,804 (133,209) System development charges 815,015 815;015 917,346 102,331 Interest earnings 56,877 56,877 88,156 31,279 Miscellaneous - - 264,317 264,317 Total revenues 1,966,905 1,966,905 1,571,623 (395,281) EXPENDITURES: Contingency 41,013 41,013 - 41,013 Capital projects 3,125,000 3,125,000 967,223 2,157,777 Total expenditures 3,166,013 3,166,013 967,223 2,198,790 Change-in fund balance before other financing (uses) (1,199,108) (1,199,108) 604,400 1,803,509 Other financing (uses): Transfer out (405,786) (405,786) (234,494) 171,292. Change in fund balance (1,604,894) (1,604,894) 369,906 1,974,801 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 1,605,059 1,605,059 2,194,955 589,896 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 165 $ 165 $ 2,564,861 $ 2,564,697 57 • CITY OF TIGARD, OREGON ELECTRICAL INSPECTION FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2003 • • • • • • Variance • Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) REVENUES: • Electrical permit fees $ 146,000 $ 146,000 $ 219,490 $ 73,490 Electrical plan check fees 6,600 6,600 7,919 1,319 Interest earnings 5,000 5,000 3,819 (1,181) • • Total revenues 157,600 157,600 231,228 73,628 • EXPENDITURES: • Contingency 25,000 25,000 - 25,000 • Change in fund balance before other financing (uses) 132,600 132,600 231,228 98,628 • Other financing (uses): Transfer out (169,612) (169,612) (166,178) 3,434 • Change in fund balance (37,012) (37,012) 65,050 102;062 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 135,296 135,296 115,792 (19,504) • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 98,284 $ 98,284 $ 180,842 $ 82,558 • • • • • • • • • • • • • • 58 • • • CITY OF TIGARD, OREGON UNDERGROUND UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2003 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Charges. for services $ 49,000 $ 49,000 $ 54,480 $ 5,480 Interest earnings 10,700 10,700 10,593 (107) Total revenues 59,700 59,700 65,073 5,373 EXPENDITURES: Contingency 15,000 15,000 - 15,000 Capital projects 100,000 100,000 100,000 - Total expenditures 115,000 115,000 100,000 15,000 Change in fund balance (55,300) (55,300) (34,927) 20,373 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 305,760 305,760 376,954 71,194 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 250,460 $ 250,460 $ 342,027 $ 91,567 .59 • CITY OF TIGARD, OREGON INSURANCE FUND SCHEDULE OF REVENUES AND EXPENDITURES -BUDGET AND ACTUAL • 1 For the fiscal year ended June 30, 2003 • • • • • • Variance. • Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) • REVENUES: • Interest earnings $ 17,486 $ 17,486 $ 13,513 $ (3,973) Miscellaneous 40,000 40,000 38,129 (1,871) Total revenues - change in fund balance 57,486 57,486 51,642 (5,843) • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 499,600 .499,600 487,271 (12,329) • U NDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 557,086 $ 557,086 $ 538,913 $ (18,1.72) • • • • • • • • • • • • • • • • • • • 60 • • CITY OF TIGARD, OREGON BUILDING FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2003 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Licenses and permits $ 839,100 $ 839,100 $1,258,786 $ 419,686 Charges for services 7,100 7,100 11,170 4,070 Interest earnings 20,000 20,000 23,429 3,429 Miscellaneous - - 790 790 Total revenues 866,200 866,200 1,294,175 427,975 EXPENDITURES: Development services 992,792 992,792 980,156 12,636 . Contingency 190,000 190,000 - 190,000 Total expenditures 1,182,792 1,182,792 980,156 202,636 Change in fund balance before other financing sources (uses) (316,592) (316,592) 314,019 630,611 Other financing sources (uses): Transfer in 456,287 456,287 336,609 (119,678) Transfer out (287,243) (287,243) (272,088) 15,155 Total other financing sources (uses) 169,044 169,044 64,521 (104,523) Change in fund balance (147,548) (147,548) 378,540 526,088 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 799,928 799,928 682,495. (117,433) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ .652,380 $ 652,380 $1,061,035 $ 408,655 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, 2003 • • • • • Variance • Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) REVENUES: • System development charges $ 317,900 $ 317,900 $ 192,900 $ (125,000) Interest earnings 52,590 52,590 38,552 (14,038) Total revenues 370,490 370,490 231,452 (139,038) • EXPENDITURES: Contingency 134,000 134,000 - 134,000 Capital projects 850,000 850,000 490,299 359,701 • Total expenditures 984,000 984,000 490,299 493,701 • Change in fund balance before other financing (uses) (613,510) (613,510) (258,847) (632,739) Other financing (uses): Transfer out (46,813) (46,813) (41,159) 5,654 Change in fund balance (660,323) (660,323) (300,006) (627,085) • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 1,502,558 1,502,558 1,411,985 (90,573) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 842,235 $ 842,235 $ 1,111,979 $ (717,658) • • • • • • • • 62 • • CITY OF TIGARD, OREGON URBAN SERVICES FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2003 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Intergovernmental revenues $ 50,000 $ 50,000 $ - $ (50;000) Licenses and permits 536,100 536,100, 457,609 (78,491) Charges for services 3,600 3,600 3,495 (105) Interest earnings 18,000 18,000 21,569 3,569 Total revenues 607,700 607,700 482,673 (125,027) EXPENDITURES: Contingency 93,000 94,500 - 94,500 Capital projects 50,000 200,000 - 200,000 Total expenditures 143,000 294,500 - 294,500 Change in fund balance before other financing (uses) 464,700 313,200 482,673 169,473 Other financing (uses): Transfer out (584,276) (584,276) (451,468) 132,808 Change in fund balance (119,576) (271,076) 31,205 302,281 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 662,346 662,346 730,611 68,265 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ . 542,770 $ 391,270 $ 761,816 $ 370,546 63 • CITY OF TIGARD, OREGON • TREE REPLACEMENT FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2003 • • • • • • Variance Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) • Other financing (uses) and change in fund balance: • Transfer out $ (200,000) $ (200,000) $ (200,000) $ - UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 200,000 200,000 222,663 22,663. • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ 22,663 $ 22,663 • Note: This fund was closed to the Parks Capital Fund in the year ended June 30, 2003 • • • • • r • • • • • • • • • • • 64 • Debt Service Funds The balance sheet and statement of revenues, expenditures, and changes in fund balance of the nonmajor debt service fund is reported in the combining nonmajor governmental fund statements. Fund statements for the major debt service fund are reported in the basic financial statements. Schedules of revenues, expenditures, and changes in fund balance - budget and actual are also presented here for each debt service fund. Major Debt Service Fund: Bancroft Debt Service Fund - This fund accounts for payment of Bancroft improvement bond principal and interest. The sources of revenue is the collection of assessments against benefited property, interest and contributions from other funds for their share of costs. . Nonmaior Debt Service 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, 2003 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Collection of bonded assessments $ 289,777 $ 289,777 $ 542,816 $ 253,039 Interest earnings 158,712 158,712 201,607 42,895 Miscellaneous - - 5,354 5,354 Total revenues 448,489 448,489 749,777 301,288 EXPENDITURES: Debt service 5,014,973 5,014,973 2,084,678 2,930,295 Change in fund balance before other financing sources (4,566,484) (4,566,484) (1,334,901) 3,231,583 Other financing sources: Transfers in 535,273 535,273 445,322 (89,951) Proceeds from issuance of bond anticipation notes 3,586,800 3,586,800 - (3,586,800) Total other financing sources 4,122,073 4,122,073 445,322 (3,676,751) Change in fund balance (444,411) (444,411) (889,579) (445,168) DESIGNATED - FUND BALANCE, BEGINNING OF YEAR 495,914 495,914 2,103,514 1,607,600 DESIGNATED FUND BALANCE, END OF YEAR $ 51,503 $ 51,503 $ 1,213,935 $ 1,162,432 65 CITY OF TIGARD, OREGON • GENERAL OBLIGATION DEBT SERVICE FUND • • SCHEDULE ,OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2003 • • • • • • Variance • .Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) REVENUES: • Taxes $1,334,138 $1,334,138 $1,275,853 $ (58,285) Interest earnings 5,000 5,000 14,584 9,584 • Total revenues 1,339,138 1,339,138 1,290,437 (48,701) ! EXPENDITURES: • • Debt service 1,324,138 1,324,138 284,631 1,039,507 ! • Change in fund balance 15,000 15,000 1,005,806 990,806 • DESIGNATED FUND BALANCE, • BEGINNING OF YEAR 20,000 20,000 51.,244 31,244 • • DESIGNATED FUND BALANCE, • END OF YEAR $ 35,000 $ 35,000 $1,057,050 $ 1,022,050 • • • • • • • • • • • • • • 7 • • • • 66 • • • Capital Projects Funds Combining statements for all individual nonmajor capital projects funds are reported here. The combined totals are reported in the combining nonmajor governmental fund statements. Fund statements for the major capital projects fund are reported in the basic financial statements. Schedules of revenues, expenditures, and changes in fund balance - budget and actual are also presented here for each capital projects fund. Manor Capital Projects Fund: Facility Fund - This fund accounts for monies set, aside for future major City facility improvements. Nonmaior Capital Projects Fund: 69th Ave. Local Improvement District Fund - In FY 2002-03, the fund balance in this fund was transferred to the Bancroft Debt Service Fund. Dartmouth Local Improvement District/Capital Improvement Project Fund - This fund accounts for construction of Local Improvement District projects from the sale of bond anticipation notes and certain other debt. Park Levy Improvement Fund - In FY 2002-03, the fund balance in this fund was transferred to the Parks Capital Fund and used for funding of the parks capital improvement program. Metro Greenspaces Fund - In FY 2002-03, the fund balance in this fund was transferred to the Parks Capital Fund and used for funding of the parks capital improvement program. Wall Street Local Improvement District Fund - This fund accounts for construction of a local improvement district project from the sale of bond anticipation notes. The City's portion of the project is funded by a transfer of resources from the Traffic Impact Fee Fund. CITY OF TIGARD, OREGON NONMAJOR CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June,30, 2003 69th Avenue Dartmouth Wall Street Local Local Local Improvement Improvement Metro Park Levy Improvement District District Greenspaces Improvement District Fund' Fund Fund * Fund " Fund - Total ASSETS: Cash and investments $ - $ 9,050 $ $ - $ 21,690 $ 30,740 LIABILITIES AND FUND BALANCES: LIABILITIES: Accounts payable and accrued liabilities $ - $ - $ - $ $ 21,690 $ 21,690 FUND BALANCES - UNRESERVED - 9,050 - - 9,050 Total liabilities and fund balances $ $ 9,050 $ $ - $ 21,690 $ 30,740 * = Closed during the year ended June 30, 2003 67 • 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, 2003 • • 69th Avenue Dartmouth Wall Street • Local Local Local • Improvement Improvement Metro, Park Levy Improvement District District Greenspaces Improvement District Fund Fund Fund Fund Fund Total • REVENUES: • Interest earnings $ $ 234 $ $ $ $ 234 • EXPENDITURES: • Capital projects - 130,308 130,308 • Change in fund balance • before other financing sources (uses) 234 (130,308) (130,074) • Other financing sources (uses): • Transfers in - 130,308 130,308 • Transfers out (47,461) (56,464) (122,806) - (226,731) • Total other financing sources (uses) (47,461) (56,464) (122,806) 130,308 (96,423) • Change in fund balance (47,461) 234 (56,464) (122,806) - (226,497) • UNDESIGNATED, UNRESERVED FUND BALANCE, • BEGINNING OF YEAR 47,461 8,816 56,464 122,806 235,547 • UNDESIGNATED, UNRESERVED FUND BALANCE, • END OF YEAR $ $ 9,050 $ $ $ $ 9,050 • • • • • • • • • • • • • • • • • • • 68 • • • CITY OF TIGARD, OREGON FACILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2003 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Interest earnings $ 421,247 $ 421,247 $ 165,631 $ (255,616) EXPENDITURES: Contingency 254,800 254,800 - 254,800 Capital projects 4,032,500 4,067,700 3,642,381 425,319 Total expenditures 4,287,300 4,322,500 3,642,381 680,119 Change in fund balance before other financing sources (uses) (3,866,053) (3,901,253) (3,476,750) 424,503 Other financing sources (uses): Operating transfer in 715,746 715,746 715,746 - Bond proceeds 13,000,000 13,000,000 13,000,000 - Operating transfer out (290,000) (254,800) - 254,800 Total other financing sources (uses) 13,715,746 13,715,746 13,715,746 - Change in fund balance 10,270,940 10,235,740 10,238,996 168,887 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 2,795,619 2,795,619 1,815,732 (979,887) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 13,066,559 $13,031,359 $12,054,728 $ (811,000) 69 • • • CITY OF TIGARD, OREGON • 69th AVE. LOCAL IMPROVEMENT DISTRICT FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2003 • • • • • • Variance • Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) • • Other financing (uses) and • change in fund balance - f Transfer out $ (137,412) $ (137,412) $ (47,461) $ 89,951 • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 137,412 137,412 47,461 (89,951) • • UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ - $ - $ - $ - • • • Note: This fund was closed to the Bancroft Debt Service Fund in the year ended June 30, 2003 • • • • • • • • • • • • • • • • • • • 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, 2003 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Interest Earnings $ 314 $ 314 $ 234 $ (80) EXPENDITURES: Capital projects 9,281 9,281 - 9,281 Change in fund balance (8,967) (8,967) 234 9,201 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 8,967 8,967 8,816 (151) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ 9,050 $ 9,050 71 • CITY OF TIGARD, OREGON • -METRO GREENSPACES FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • • For the fiscal year ended June 30, 2003 • • • • • Variance Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) • • Other financing (uses) and • change in fund balance - • Transfer out $ (75,000) $ (75,000) $ (56,464) $ 18,536 • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 75,000 75,000 56,464 (18,536) • • UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ - $ - $ - $ - • • Note: This fund was closed to the Parks Capital Fund in the year ended June 30, 2003 • • • • • • • • • • • • • • • • • • • • • • • • • 72 • • • • CITY OF TIGARD, OREGON PARK LEVY IMPROVEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2003 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) Other financing (uses) and change in fund balance - Transfer out $ (135,000) $ (135,000) $ (122,806) $ 12,194 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 135,000 135,000 122,806 (12,194) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ - $ - Note: This fund was closed to the Parks Capital Fund in the year ended June 30, 2003 73 • 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, 2003 • • • • • Variance Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) • EXPENDITURES: Contingency $ 100,000 $ 100,000 $ - $ 100,000 • Capital projects 2,000,000 2,000,000 130,308 1,869,692 • Total expenditures and change in fund • balance before other financing sources 2,100,000 2,100,000 130,308 1,969,692 Other financing sources: • Transfer in 300,000 300,000 130,308 (169,692) Bond proceeds 1,800,000 1,800,000 - (1,800,000) . Total other financing sources 2,100,000 2,100,000 130,308 (1,969,692) • Change in fund balance - - - - • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR - - - - • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ - $ - • • • • • • • • • • • • • • • 74 • • • Enterprise Funds For GAAP reporting purposes, the City reports three proprietary 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 as listed below. All of the City's enterprise funds meet the criteria for major fund reporting and are reported in the basic financial statements. Schedules or revenues and changes in fund net assets - budget and actual are presented here for each individual enterprise fund as required by Oregon regulations. Major Enterprise Funds: Sanitary Sewer Fund - This fund accounts for the City's sewer utility operations. Storm Sewer Fund - This fund accounts for the City's storm drainage operations. Storm Sewer Fund (budgetary basis financial statements only) Water Quality/Quantity Fund (budgetary basis financial statements only) Water Fund - This fund accounts for the City's water operations. Water Fund (budgetary basis financial statements only) Water SDC Fund (budgetary basis financial statements only) Water CIP Fund (budgetary basis financial statements only) CITY OF TIGARD, OREGON SANITARY SEWER FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2003 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Service charge $ 1,750,813, $1,750,813 $1,923,598 $ 172,785 Miscellaneous 12,000 12,000 141,308 129,308 Interest earnings 276,713 276,713 223,690 (53,023) Total revenues 2,039,526 2,039,526 2,288,596 249,070 EXPENDITURES: Public works 487,658 456,791 404,923 51,868 Contingency 475,000 475,000 - 475,000 Capital projects 2,300,000 2,300,000 481,852 1,818,148 Total expenditures 3,262,658 3,231,791 886,775 2,345,016 ' Change in fund balance before other financing (uses) (1,223,132) (1,192,265) 1,401,821 2,594,086 Other financing (uses): Transfer out (268,000) (268,000) (262,595) 5,405 Change in fund balance (1,491,132) (1,460,265) 1,139,226 2,599,491 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 7,906,080 7,906,080 8,123,353 217,273 UNDESIGNATED, UNRESERVED - FUND BALANCE, END OF YEAR $ 6,414,948 $ 6,445,815 $ 9,262,579 $ 2,816,764 75 • 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 • Expenditures / Revenues Expenses ! Sanitary Sewer $ 2,288,596 $ 886,775 • System development revenue 322,453 - • Change in accrued vacation - (197) • Expenditures capitalized - (481,852) • Depreciation expense - 385,126 Revenue and expenses - page 27 $ 2,611;049 $ 789,852 • ! ! • • • • • • • • • • • • • 76 • • • CITY OF TIGARD, OREGON STORM SEWER FUND SCHEDULE OF REVENUES AND EXPENDITURES -.BUDGET AND ACTUAL For the fiscal year ended June 30, 2003 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Service charge $1,577,126 $1,577,126 $1,204,892 $ (372,234) Miscellaneous - - 36 36 Interest earnings 24,310 24,310 19,151 (5,159) Total revenues 1,601,436 1,601,436 1,224,079 (377,357) EXPENDITURES: Public works 506,733 506,733 492,493 14,240 Contingency 213,000 213,000 - 213,000 Capital projects 200,000 200,000 34,583 165,417 Total expenditures 919,733 919,733 527,076 392,657 Change in fund balance before other financing (uses) 681,703 681,703 697,003 15,300 Other financing (uses): Transfer out (555,813) (555,813) (519,051) 36,762 Change in fund balance 125,890 125,890 177,952 52,062 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 694,580 694,580 796,626 102,046 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 820,470 $ 820,470 $ 974,578 $ 154,108 77 • CITY OF TIGARD, OREGON • WATER QUALITY/QUANTITY FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2003 • • • Variance • Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Service charge $ 50,000 $ 50,000 $ 41,917 $ (8,083) • Interest earnings 62,135 62,135 48,560 (13,575) • Total revenues 112,135 112,135 90,477 (21,658) EXPENDITURES: • • Contingency 4,900 4,900 - 4,900 Capital projects 32,000 32,000 3,345 28,655 Total expenditures 36,900 36,900 3,345 33,555 • Change in fund balance • before other financing (uses) 75,235 75,235 87,132 - 11,897 Other financing (uses): • Transfer out (1,270) (1,270) (1,182) 88 • Change in fund balance 73,965 73,965 85,950 11,985 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 1,775,280 1,775,280 1,804,848 29,568 • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $1,849,245 $ 1,849,245 $1,890,798 $ 41,553 . • • • • • 78 • • • 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 Expenditures / Revenues Expenses Storm Sewer $ 1,224,079 $ 527,076 Water. Quality / Quantity 90,477 3,345 Total 1,314,556 530,421 System development revenue 332,671 - Change in accrued vacation - (5,198) Expenditures capitalized - (37,928) Depreciation expense - 332,857 Revenue and expenses - page 27 $ 1,647,227 $ 820,152 79 • CITY OF TIGARD, OREGON • WATER FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL t, For the fiscal year ended June 30, 2003 • • • • . Variance Budgeted Amounts Actual Favorable, • Original Final Amounts (Unfavorable) REVENUES: Service charge $ 6,254,467 $ 6,254,467 $ 6,145,422 $ (109,045) System development charges 230,000 230,000 193,845 (36,155) • Interest earnings 225,000 225,000 154,131 (70,869) Miscellaneous 51,380 51,380 106,209 54,829 • • Total revenues 6,760,847 6,760,847 6,599,607 (1611240) • EXPENDITURES: Public works 4,644,051 4,644,051' 4,126,506 517,545 Contingency 1,025,000 .1,025,000 - 1,025,000 Capital projects 1,373,000 1,373,000 433,863 939,137 Total expenditures 7,042,051 7,042,051 4,560,369 2,481,682 • Change in fund balance • before other financing sources (uses) (281,204) (281,204) 2,039;238 2,320,442 . Other financing sources (uses): Transfer in 394,875 394,875 - (394,875) Transfer out (1,157,742) (1,157,742) (1,147,254) 10,488 S Total other financing sources (uses) (762,867) (762,867) (1,147,254) (384,387) Change in fund balance (1,044,071) (1,044,071) 891,984 1,936,055 ' • UNDESIGNATED,UNRESERVED FUND BALANCE, BEGINNING OF YEAR 6,291,423 6,291,423 5,637,734 (653;689) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 5,247,352 $ 5,247,352 $ 6,529,718 $ 1,282,366 • • • 80 • • CITY OF TIGARD, OREGON WATER SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2003 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: System development charges $ 445,000 $ 445,000 $ 394,356 $ (50,644) Interest earnings 27,500 27,500 33,695 6,195 Total revenues 472,500 472,500 428,051 (44,449) . EXPENDITURES: Contingency 119,231 119,231 - 119,231 Capital projects 400,000 400,000 32,404 367,596 Total expenditures 519,231 519,231 32,404 486,827 Change in fund balance before other financing (uses) (46,731) (46,731) 395,647 442,378 Other financing (uses): Transfer out (394,875) - - - Change in fund balance (441,606) (46,731) 395,647 442,378 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 794,075 794,075 1,133,393 339,318 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 352,469 $ 747,344 $1,529,040 $ 781,696 81 CITY OF TIGARD, OREGON WATER CIP FUND « SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2003 • • • • • • • Variance • Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) • REVENUES: . System development charges $ - $ - $ 305,184 $ 305,184 Interest earnings 142,200 142,200 110,931 .(31,269) • Total revenues 142,200 142,200 416,115 273,915 • EXPENDITURES: Public works - 16,200 - 16,200 • Contingency 100,500 84,300 - 84,300 • Capital projects 670,000 670,000 277,444 392,556 • Total expenditures 770,500 770,500 277,444 493,056 • • Change in fund balance (628,300) (628,300) 138,671 766,971 S UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 4,062,226 4,062,226 4,120,283 58,057 • UNDESIGNATED,UNRESERVED FUND BALANCE, END OF YEAR $ 3,433,926 $ 3,433,926 $ 4,258,954 $ 825,028 • • • • • • • • • • 82 • • • 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 Expenditures / Revenues Expenses Water $ 6,599,607 $ 4,560,369 Water SDC 428,051 32,404 Water CIP 416,115 277,444 Total 7,443,773 4,870,217 System development revenue 367,062 - Change in inventory - (44,273) Expenditures capitalized - (743,711) Depreciation expense - 965,184 Revenue and expenses - page 27 $ 7,810,835 $ 5,047,417 83 CITY OF TIGARD, OREGON • RECONCILIATION OF BUDGETARY FUND BALANCE TO • GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET ASSETS • For the fiscal year ended June 30, 2003 • • • Total Total ! Sanitary Storm Total • Sewer Sewer Water • Fund balance - budget basis $ 9,262,579 $ 2,865,377 $ 12,317,712 • Adjustments from budgetary basis to generally accepted accounting principles basis: Change in inventory - - 40,237 Inventory - - 79,321 • Capital assets, net 10,624,886 9,644,654 27,742,158 Accrued vacation payable (20,978) (21,908) (73,707) . • Total Net Assets - generally accepted, accounting • principles basis - page 26 $ 19,866,487 $ 12,488,123 $ 40,105,721 ! • • • ! r • • • • • • • • • • • r • • 84 • • • 0 0 0 Internal Service Funds 0 Combining statements for internal service funds are reported here. The combined totals are reported alongside the enterprise funds in the basic financial statements. Schedules of revenues, expenses, and changes in fund net assets - budget and actual are also presented here for each internal service fund as required by Oregon regulations. Central Services Fund - This fund accounts for the central administrative functions within the City Fleet/Property Management Fund = This fund accounts for all activity related to the Fleet Maintenance and Property Management divisions in the City 0 CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET ASSETS JUNE 30, 2003 Central Fleet/Property Services Management Fund Fund Total ASSETS Current assets: Cash and investments $ 738,937 $ 83,371 $ 822,308 Accounts Receivable 4,059 - 4,059 Inventory 11,171 7,654 18,825 Total assets 754,167 91,025 845,192 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 198,141 31,428 229,569 Accrued vacation payable 112,238 8,044 120,282 Total liabilities 310,379 39,472 349,851 NET ASSETS Net assets $ 443,788 $ 51,553 $ 495,341 O 85 O O - , O • 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, 2003 • • • Central Fleet/Property • Services Management Fund Fund. Total OPERATING REVENUES: • • Service charges $ 4,160,335 $ 880,073 $ 5,040,408 • Miscellaneous 5,330 - 5,330 Total operating revenues 4,165,665 880,073 5,045,738 • • OPERATING EXPENSES: • Salaries and wages 2,535,027 392,535 2,927,562 Contracted services 448,520 115,003 563,523 • General, administrative and other 1,043,634 312,746 1,356,380 Total operating expenses 4,027,181 820,284 4,847,465 • Operating income 138,484 59,789 198,273 • • NONOPERATING REVENUE: • • Interest revenue 11,148 2,154 13,302 • Net income 149,632 61,943 211,575 • • NET ASSETS (DEFICIT) - beginning of year 294,156 (10,390) 283,766 • • NET ASSETS - end of year $ 443,788 $ 51,553 $ 495,341 • • • • • • • . O • • O q O 86 O O O O CITY OF TIGARD, OREGON ® INTERNAL SERVICE FUNDS ® COMBINING STATEMENT OF CASH FLOWS For the fiscal year ended June 30, 2003 0 Increase'(decrease) in cash and cash equivalents 0 Central Fleet/Property Services Management Fund Fund Totals CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 4,160,335 $ 880,073 $ 5,040,408 Payments to suppliers (1,486,251) (433,652) (1,919,903) Payments to employees (2,486,773) (394,976) (2,881,749) Other receipts 5,330 5,330 Net cash provided by operating activities 192,641 51,445 244,086 CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings 11,148 2,154 13,302 Net increase in cash and cash equivalents 192,641 51,445 257,388 Balances--beginning of the year 535,148 29,772 564,920 O Balances--end of the year $ 727,789 $ 81,217 $ 822,308 0 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income 138,484 59,789 198,273 Adjustments to reconcile operating income to net cash 0 provided by operating activities: 0 Change in assets and liabilities: Receivables, net (1,252) - (1,252) Inventories (6,347) 147 (6,200) 0 Accounts payable 51,415 (6,050) 45,365 Accrued compensated absences 10,341 (2,441) 7,900 Net cash provided by operating activities $ 192,641 $ 51,445 $ 244,086 Q 0 0 O 87 O CITY OF TIGARD, OREGON • CENTRAL SERVICES FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2003 • • • 4 • • A Variance • Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) REVENUES: • Interest earnings $ - $ - $ 11,148 $ 11,148 • Miscellaneous - - 5,330 5,330 • Total revenues - - 16,479 16,479 • EXPENDITURES: • Policy and administration 3,993,242 3,993,242 3,692,690 300,552 • Contingency 398,049 373,049 - 373,049 General government 192,100 217,100 226,493 (9,393) • Total expenditures 4,583,391 4,583,391 3,919,183 664,208 • • Change in fund balance • before other financing sources (uses) (4,583,391) (4,583,391) (3,902,704) 680,687 • Other financing sources (uses): • Transfer in 4,521,569 4,521,569 4,160,335 (361,234) • Transfer out (113,177) (113,177) (97,658) 15,519 • • Total other financing sources (uses) 4,408,392 4,408,392 4,062,676 (345,715) • Change in fund balance (174,999) (174,999). 159,972 334,972 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 400,000 400,000 396,053 (3,947) • • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR . $ 225,001 $ 225,001 $ 556,025 $ 331,025 • • • w • • • 88 • • CITY OF TIGARD, OREGON FLEET/PROPERTY MANAGEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2003 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Interest earnings $ - $ - $ 2,154 $ 2,154 EXPENDITURES: Public works 875,447 875,447 740,754 134,693 Contingency 50,000 50,000 - 50,000 Total expenditures 925,447 925,447 740,754 184,693 Change in fund balance before other financing sources (uses) (925,447) (925,447) (738,600) (182,539) ® Other financing sources (uses): Transfer in 1,009,664 1,009,664 880,073 (129;591) Transfer out (81,972) (81,972) (81,972) - Total other financing sources (uses) 927,692 927,692 798,101 (129,591) Change in fund balance 2,245 2,245 59,501 (312,130) Q UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR - - 95 95 O UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 2,245 $ 2,245 $ 59,596 $ (312,035) 0 0 0 0 89 O City of Tigard, Oregon • t O O m ® Other Supplementary Schedules O Schedules included in this section are: m O ® • Property Tax Transactions, and Outstanding ® Balances ® • Bond and Bond .Interest Transactions ® Future Debt Service Requirements of Long O Term Notes Payable • Future Debt Service Requirements of Bancroft Improvement Bonds O Future Debt Service Requirements of General Obligation Bonds O o. O CITY OF TIGARD, OREGON ,O SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES For the fiscal year ended June 30, 2003 Property Add Property Taxes Levy as Taxes O Receivable Extended Deduct Add Receivable June 30, by Discounts (Deduct) Add Deduct June 30, 2002 Assessor Allowed Adjustments Interest Collections 2003 O 2002 - 2003 $ - $ 10,521,836 $ (260,998) $ (55,150) $ 4,134 $ (9,942,473) $ 267,349 2001 -2002 240,642 - 460 (14,692) 10,763 (161,510) 75,663 2000 - 2001 77,308 - 47 (2,807) 7,453 (48,964) 33,037 O 1999 - 2000 38,093 - 13 (2,015) 6,724 (30,527) 12,288 1998-1999 12,681 - 19 (1,596) 3,323 (11,238) 3,189 1997-1998 2,020 - 12 (647) 336 (491) 1,230 1996 - 1997 & Prior 2,997 - 21 (1,167) 452 (162) 2,141 $ 373,741 $ 10,521,836 $ (260,426) $ (78,074) $ 33,185 $(10,195,365) $ 394,897 Property Taxes Cash Receivable Distributed as follows: Collections June 30, 2003 General Fund: Current $ 8,742,530 $ 354,372 Prior years' levies 176,924 - Total General Fund 8,919,454 354,372 Enterprise Funds: Prior Years' levies 59 101 0 Debt Service-Funds: Current 1,269,969 23,399 Prior years' levies 5,883 17,025 Total Debt Service Funds 1,275,852 40,424 Total $ 10,195,365 $ 394,897 0 90 • CITY OF TIGARD, OREGON SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS • For the fiscal year ended June 30, 2003 • • • • Bond Transactions Interest Transactions • • • Outstanding • June 30, Matured/ Outstanding Bancroft Bonds Original Issue 2002 Additions Called Paid June 30, 2003 Matured Paid • Issued May 1, 1993 $ 660,000 $ 190,000 $ $ 85,000 . $ (85,000) $ 105,000 $ 7,105 $ (7,105) • • Issued November 30, 1998 1,565,576 1,081,299 72,775 (72,775) 1,008,524 45,847 (45,847) • Issued June 27, 2002 1,307,969 1,307,969 28,200 (28,200) 1,279,769 96,673 (96,673) • $ 2,579,268 $ $185,975 $(185,975) $ 2,393,293 $149,625 $(149,625) • • General Obligation Bonds • Issued May 1, 1993 $ 6,935,000 $ 245,000 $ $245,000 $(245,000) $ - $ 11,638 $ (11,638) • Issued December 4, 2002 $13,000,000 - 13,000,000 - - 13,000,000 - • $ 245,000 $ 13,000,000 $245,000 1(245,000) $13,000,000 $ 11,638 $ (11,638) • • • • • • • • • • • • • • • • • • • • • • • • 91 • • CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF LONG TERM NOTES PAYABLE JUNE 30, 2003 O Issued - January 23, 2002 3.00% to 4.35% O Original Issue - $ 2,290,248 Total Payment Coupon Debt Date Principal Interest Rate Service January 1, 2004 $ 199,527 $ 78,548 3.00% $ 278,075 O 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 O January 1, 2008 229,201 51,072 3.80% 280,273 January 1, 2009 235,690 42,363 4.00% 278,053 Q 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 $ 2,091,727 $ 437,512 $ 2,529,239 O O O O O O O O O 92 0 O • CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF.BANCROFT IMPROVEMENT BONDS • June 30, 2003 • • • • Issued Issued Issued • May 1, 1993 December 1, 1998 June 27, 2002 • Year of Total Requirements 4.10 % to 5.00% 4.39% 7.25% Maturity Principal Interest Principal Interest Principal Interest Principal Interest • 2003-2004 $ 186,578 $ 136,786 $ $ 5,250 $ 153,678 $ 39,340 $ 32,900 $ 92,196 • 2004-2005 195,799 127,540 - 5,250 160,499 32,519 35,300 89,771 ' 2005-2006 310,522 117,814 105,000 5,250 167,622 25,396 37,900 87,168 • 2006-2007 215,861 102,323 - - 175,061 17,957 40,800 84,366 • 2007-2008 226,631 91,541 - 182,831 10,187 43,800 81,354 • 2008-2009 141,436 80,193 - 94,436 2,073 47,000 78,120 2010-2022 1,042,069 584,522 - 1,042,069 584,522 • • Totals $2,318,896 $1,240,719 $105,000 $ 15,750 $ 934,127 $ 127,472 $1,279,769 $1,097,497 • • • • • • • • • • • • • • • • • • • • • • • 93 • • • CITY OF TIGARD, OREGON • SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF GENERAL OBLIGATION BONDS June 30, 2003 O O O O Fiscal Issued: December 4, 2002 Year of Total Debt 3.00% to 4.75% O Maturity Requirement Principal Interest 2003-2004 $ 1,014,394 $ 463,552 $ 550,842 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 O 2008-2009 974,913 536,063 438,850 0 2009-2010 976,563 553,795 422,768 2010-2011 976,383 571,890 404,493 O 2011-2012 974,758 590,281 384,477 2012-2013 977,118 613,891 363,227 O 2013-2022 9,737,253 7,682,038 2,055,215 $ 19,526,586 $ 13,000,000 $ 6,526,586 O O O O O O O O O O O O O 94 a O O *0000 10 000+0000 C O d L. 'd ti. e0 N O V STATISTICAL SECTION OOOG O 00 O O O O O O O 00 00 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 Internal June 30 Services Public Works Services Administration Debt Sewer Water Water Services Total 2003' $ 8,058,670 $ 1,890,644 $ 3,311,058 $ 3,548,649 $ 602,291 $ 901,779 $ 1,056,795 $ 5,325,045 #REF! #REF! 'This schedule has been added with the implementation of GASB 34 effective fiscal year 2003. Source: Comprehensive Annual Financial Report of the City. tJ1 CITY OF TIGARD, OREGON GOVERNMENT-WIDE REVENUES For the last ten fiscal years Program Revenues General Revenues Gain (Loss) Fiscal Charges Operating on Disposition Year Ended for Grants and Special Licenses Intergovernmental Fines and Interest Donated of Capital June 30 Services Contributions Taxes Franchise Fees Assessments and Permits Revenues Forfeitures Earnings Assets Assets Miscellaneous Total 2003' $ 10,121,504 $ 133.253 $ 10,472,108 $ 2,567,881 $ 87,760 $ 3,505,499 $ 4,704,729 $ 480.963 $ 1,505.772 $ (27,850) $ (491,023) $ 677,408 $ 33,738,004 'This schedule has been added with the implementation of GASB 34 effective fiscal year 2003. Source: Comprehensive Annual Financial Report of the City. CITY OF TIGARD, OREGON GENERAL FUND EXPENDITURES BY FUNCTION - BUDGETARY BASIS For the last ten fiscal years City-Wide O Support Public Works Functions, Fiscal and Capital Year Ended Community Community Policy and Projects Debt June 30 Services Development Administration and Other Service Total 1994 $ 5,088,712 $ 2,641,694 $ 1,317,972 $ 3,604,930 $ 5,647,732 $ 18,301,040 0 1995 5,656,128 2,745,236 1,332,630 2,148,786 2,388,061 14,270,841 Q 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 O 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 0 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 Q 0 4 97 • CITY OF TIGARD, OREGON • GENERAL FUND 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' • 1994 $ 5,894,241 $ 1,447,668 $ 2,554,752 $ 3,105,356 $ 393,349 307,982 $ 1,576,679 $ 15,280,027 • 1995 6,107,116 1,592,707 2,344,386 3,350,614 418,965 325,970 851,444 14,991,202 • 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 24,581,213 • • Includes special assessments collections and private donations. • Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types • • • • • • • • • • • • • • • • • • • • • • • • • • 98 • • • CITY OF TIGARD, OREGON PROPERTY TAX LEVIES AND COLLECTIONS O For the last ten fiscal years O 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 O June 30 Levy Collections Collections Collections Collections Levy Taxes Levy 1994 $ 5,984,204 $ 5,622,050 93.95% $ 272,191 $ 5,894,241 98.50% $ 333,198 5.57% O 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% O 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% 0 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% Taxes are levied as of July 1 each year and are payable in three installments, without interest, on November 15, February 15, and May 0 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. 99 • • CITY OF TIGARD, OREGON MARKET VALUE AND ASSESSED VALUE OF TAXABLE PROPERTY • For the last ten fiscal years • s • • • • • Fiscal Market Value • Year Public • Ended Real Personal Utility Total • June 30 Property Property Property Total Assessed Value • 1994 $ 1,972,696,888 $ 142,496,210 $ 60,467,981 $ 2,175,661,079 $ 2,175,661,079 • 2,458,738,549 2,458,738,549 1995 2,229,444,147 156,419,813 72,874,589 • 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 • 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. • • • • • • • • • • • 100 • • • 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 1994 $ 193,000 $ 186,036 96.39%a $ 2,380,059 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 (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 • • • • • • • • • • • 101 • • 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 1994 $ 0.42 $ 2.77 $ 1.36 $15.58 $ 13.39 $ 0.08 $ 0.12 $ 1.88 $ 0.87 $ 0.20 $ 0.37 $ 37.04 1995 0.25 2.51 1.27 13.88 12.41 0.07 0.07 1.76 0.82 0.19 0.38 33.61 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 03 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 C) 1999 0.28 3.10 2.57 6.65 6.17 1.53 1.15 0.35 0.81 22.61 N 2000 0.21 2.59 2.54 6.31 6.19 1.56 1.29 0.36 0.70 21.75 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 Tax rates, expressed in dollars and cents per $1,000 of assessed value of taxable property in each taxing district, are required by the State Constitution to be uniform throughout the district. Taxes levied may be composed of three types of levies: (1) a base operating levy, (2) a special operating levy approved by the voters in the district and (3) a debt service levy. Each district with outstanding General Obligation bonded debt is required to levy taxes sufficient with other available funds, to meet principal and interest payments when due. All operating levies were converted to a permanent rate by the passage of measure 50 in 1997. Permanent rates can not be changed. Prior to Measure 50, rates were dependent on both the levy and assessed value. Assessment and tax rolls are prepared and maintained by Washington County for all taxing districts with territory in the County. The County collects all taxes against property in the County (except assessments for improvements charged to benefited property and distributes taxes collected at least monthly. No charges are made to the taxing districts for these services. NOTE: - Not all taxing districts are charged on each parcel of property, actual rates on tax bills are a combination of the above depending upon the location of the parcel and the school district and sewer and water district boundaries. Total overlapping tax rates for property in Tigard in 2003 ranged from $12.24/$1,000 to $16.89/$1,000. Source: Washington County Department of Assessment and Taxation. •••••!••••••••••••••••••••••••••i••••••!•••••••••••!•0• 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 1994 33,802 $ 2,175,661,079 $ 9,878,000 $ 611,481 $ 9,266,519 0.43% $ 274.14 1995 33,744 2,458,738,549 8,385,000 422,107 7,962,893 0.32% 235.98 1996 35,021 2,735,213,090 6,795,000 387,102 6,407,898 0.23% 182.97 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 Excludes bond anticipation notes payable. Sources: City budget documents, Comprehensive Annual Financial Reports of the City and Washington County Department of Assessment and Taxation. 103 ♦ CITY OF TIGARD, OREGON COMPUTATION OF LEGAL DEBT MARGIN June 30, 2003 • • • • ♦ • • 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 (2002-2003) $ 4,804,794,161 • General obligation debt limit X 3% • 144,143,825 • • • Gross bonded debt $ 21,845,482 • Excludable debt - Bancroft improvement bonds (2,318,896) • Debt subject to limitation 19,526,586 • Legal debt margin - amount available for future indebtedness $ 124,617,239 • • • • Source: Washington County Department of Assessment and Taxation • • • • • • • • • • • • • • • • • • • 104 • • • • CITY OF TIGARD, OREGON COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT June 30, 2003 Percent Amount Applicable Applicable Net Debt Inside City Inside City Jurisdiction Outstanding of Tigard of Tigard Tigard/Tualatin School'District #23-J $ 78,318,813 51.4591% $ 40,302,156 Tri-Metropolitan Transportation District 3,780,140 3.7520% 141,831 Port of Portland 1,868,359 3.4123% 63,754 Metro 9,718,684 3.7366% 363,148 Beaverton School District #48 9,862,457 3.6660% 361,558 Portland Community College 14,627,263 4.7340% 692,455 Washington County 7,281,023 10.6763% 777,344 Tualatin Valley Fire & Rescue District 1,009,467 13.5408% 136,690 Tualatin Valley Water (Metzger Bond) 731,162 62.4925% 456,921 Sub-Total of Overlapping Debt 127,197,368 43,295,857 City of Tigard 21,845,482 100.0000% 21,845,482 Total for Overlapping (Underlying) Debt $ 149,042,850 $ 65,141,339 Source: Oregon State Treasury Debt Management Division 105 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 • • 1994 $ 4,742,523 $ 905,209 $ 5,647,732 $ 13,539,981 41.71% • 1995 1,828,000 560,061 2,388,061 18,301,040 13.05% • • 1996 4,385,000 7671,516 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% • • • • • 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 • • • • • • • • • • • 106 • • • • 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 1994 40 $ 63,946,411 683 $ 62,765,587 1995 24 31,873,570 452 63,699,561 1996 37 . 34,644,201 496 65,935,382 1997 22 44,227,644 355 59,581,425 1998 28 45,381,833 147 30,720,243 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 (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 107 • CITY OF TIGARD, OREGON PRINCIPAL TAXPAYERS • June 30, 2003 • • • • • Percentage • of Total Assessed Assessed • Taxpayer Type of Business Valuation Valuation • Pacific Realty Associates Oregon Business Park $ 135,347,900 3.74% • • EOP-Lincoln, LLC Lincoln Center Complex 68,331,810 1.89% • • Verizon Northwest Inc Nelson Business Park 54,444,627 1.50% • PPR Washington Square, LLC Washington Square Shopping Mall 53,316,280 1.47% • • Calwest Industrial Holdings, LLC Property Management 30,273,110 0.84% Portland General Electric Utility - Power Operations 24,083,076 0.66% • • Sprint Spectrum Utility - Communications 23,410,070 0.65% AT&T Communications Inc Utility- Communications 22,189,886 0.61% • • Portland Hotel Associates Embassy Suites Hotel 21,902,160 0.60% • • Northwest Natural Gas Utility - Power Operations 20,328,100 0.56% . • • Total Principal Taxpayers 453,627,019 12.53% • All Other Taxpayers 3,168,083,955 87.47% • • Total $ 3,621,710,974 100.00% • Source: City of Tigard Planning Department, estimated from Washington County Assessment & Taxation records. • • • • • • • • • • • • • 108 • • • 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 1994 33,802 $ 64,365 9,427 4.80% 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 11,1.45 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% 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 109 • CITY OF TIGARD, OREGON • • MISCELLANEOUS STATISTICAL DATA • June 30, 2003 • • • • 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) 10.92 • Miles of streets 142.46 Population 44,070 Drinking Water: • Water mains 210.12 Reservoirs 13 • • • • • Police protection: • Number of stations 1 • Number of sworn police officers 54 • Education: Attendance centers 15 Number of teachers 623 Number of students 11,686 • • Sanitary sewers 755,040 ft. • • Storm sewer lines 591,360 ft • • Building Permits issued (2002-2003) 385 • Recreation and culture: Number of parks 11, totaling' 160.8 acres Greenways 132.7 acres Number of libraries 1 • Number of volumes (estimated) 114,094 • • Employees: . Classified service (union) 193 . Unclassified (non-union) 79 • Information obtained from the various departments of the City of Tigard, • Oregon, and Tigard/Tualatin School District #23-J - City student totals not available • 110 • • • • AUDIT COMMENTS AND DISCLOSURE REQUIRED BY STATE REGULATIONS PAULY, ROGERS AND CO., RC. ® CERTIFIED PUBLIC ACCOUNTANTS • 12700 SW 72ND AVENUE • TIGARD, OREGON 97223 • (503) 620-2632 • FAX (503) 684-7523 December 16, 2003, AUDITORS' COMMENTS AND DISCLOSURES Oregon Administrative Rules 162-10-000 through 162-16-000, the Minimum Standards .for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, comments and disclosures required in audit reports. Certain required disclosures, statements and schedules are set forth in preceding pages of this report. Additional required comments and disclosures related to our audit of such statements and schedules are set forth as follows: REPORT ON INTERNAL ACCOUNTING CONTROL We have audited the basic financial statements of the City of Tigard, Oregon, as of and for the year ended June 30, 2003, and have issued our report thereon dated December 16, 2003. The management of the City of Tigard, Oregon, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against 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 structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the basic financial statements of the City of Tigard, Oregon, for the year ended June 30, 2003, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. Our consideration of the internal control structure would not. necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a 111 • • AUDITORS' COMMENTS AND DISCLOSURES (CONTINUED) • • relatively low. level the risk that errors and irregularities in amounts that would be • material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its • operation that we consider to be material weaknesses as defined above. • • This report is intended for the information ofmanagement, the Mayor, 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 for audit. • • BUDGET TRANSACTIONS • • Expenditures were within the authorized appropriation levels for the year ended June • 30, 2003 except for the over expenditure indicated in Note 14 to the basic financial statements. • 2002-2003 and 2003-2004 BUDGETS • • The budgets. adopted by the City for the current year and ensuing fiscal year were • reviewed during. the audit. Budget preparation and adoption procedures followed by • the City appeared to be in compliance with the Oregon Local Budget Law. • STATE HIGHWAY FUNDS • The City's compliance with requirements of Article IX, Section 3a of the Oregon .Constitution and ORS 294 and" 373 was reviewed and the City appears to have • complied with the restrictions on the use of revenue from taxes on motor vehicle use • and fuel. • • COLLATERAL SECURING BANK DEPOSITS • • Based on our selective testing, collateral pledged by one depository appeared not to • be in conformity with the requirements of Oregon Law during the year. Each • depository is required by ORS Chapter 295 to maintain securities having a value of not • less than 25% of the face amount of the collateral certificate issued by the pool • manager, for funds deposited, in the depository in excess of the amounts insured by • the Federal Deposit Insurance Corporation. Deposits in the State Local Government Investment Pool are not required to be collateralized. • INVESTMENTS • The City's investments for the year ending June 30, 2003 were reviewed and appeared to have been in compliance with the legal requirements pertaining to the • investment of public funds contained in ORS 294.035. • • 112 • • AUDITORS' COMMENTS AND DISCLOSURES (CONTINUED) PUBLIC CONTRACTS AND PURCHASING The City's procedures for awarding public contracts were reviewed and appeared to have been in compliance with ORS Chapter 279. INSURANCE AND FIDELITY BONDS Details concerning insurance and fidelity bond coverage were reviewed during the audit. The coverage provided appears to have met legal requirements. We do not have the professional expertise to state whether the insurance coverage is adequate. STATUTORY BONDED DEBT LIMITATION The City's bonded debt outstanding was well within the limitation established by Oregon Law. OUTSTANDING WARRANTS The City did not have any outstanding endorsed warrants at June 30, 2003. PROGRAMS FUNDED FROM OUTSIDE SOURCES We reviewed and tested, to the extent we considered necessary in the circumstances, transactions and reports relative to federal and state grant programs. . The City appeared to have appropriate procedures for making expenditures on behalf of, and reporting for, such programs. 113 0 0000 0 *0000,000 0 OD