Loading...
CAFR Report - 2001-2002 r r Aki,iA _a Historic • CITY OF TIGARD, OREGON COMPREHENSIVE ANNUAL FINANCIAL REPORT for the fiscal year ended June 30, 2002 Prepared by: City of Tigard - Finance Department • • • • • • • • • • • • • • • • • • • City of Tigard, Oregon • • Table of Contents • • • Page • INTRODUCTORY SECTION: Letter of Transmittal ....................................................................I • Mayor and City Council Members XII • Organization Chart .....................................................................X111 S Certificate of Achievement for Excellence in Financial Reporting XIV • FINANCIAL SECTION: • Independent Auditors' Report 1 • GENERAL PURPOSE FINANCIAL STATEMENTS • ("Liftable" Financial Statements): Combined Balance Sheet - All Fund Types and Account Groups 2 • Combined Statement of Revenues, Expenditures and Changes • in Fund Balances - All Governmental Fund Types 3 Combined Statement of Revenues, Expenditures and Changes • in Fund Balances - Budget and Actual - All Governmental • Fund Types .....................................................................4 • Combined Statement of Revenues, Expenses and Changes in • Retained Earnings - All Proprietary Fund Types 5 • Combined Statement of Cash Flows - All Proprietary Funds 6 • Statement of Plan Net Assets - Pension Trust Fund 7 Statement of Changes in Plan Net Assets - Pension Trust Fund 7 • Notes to General Purpose Financial Statements 8 • • SUPPLEMENTARY DATA (Combining and Individual Fund and • Account Group Statements and Other Financial Schedules): General Fund: • Schedule of Revenues and Expenditures - Budget and Actual 24 • Special Revenue Funds: Combining Balance Sheet 25 Combining Statement of Revenues, Expenditures and Changes in • Fund Balances 26 Schedules of Revenues and Expenditures - Budget and Actual: • Criminal Forfeiture Fund 27 State Gas Tax Street Fund .........................................................28 • Parks SDC Fund ................................................................29 • County Gas Tax Fund .............................................................30 Traffic Impact Fund ...............................................................31 • Electrical Inspection Fund ..........................................................32 • Underground Utility Fund 33 Workers' Compensation Fund ......................................................34 Building Fund 35 • Urban Services Traffic Impact Fee Fund ..............................................36 . Urban Services Fund .............................................................37 . Tree Replacement Fund 38 Economic Improvement District Fund 39 • • • • • • • City of Tigard, Oregon Table of Contents, Continued Page FINANCIAL SECTION, Continued: SUPPLEMENTARY DATA (Combining and Individual Fund and Account Group Statements and Other Financial Schedules), Continued: Debt Service Funds: Combining Balance Sheet ..............................................................40 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................41 Schedules of Revenues and Expenditures - Budget and Actual: General Obligation Bond Debt Service Fund 42 Bancroft Bond Debt Service Fund .......................................................43 Capital Projects Funds: Combining Balance Sheet ..............................................................44 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................45 Schedules of Revenues and Expenditures - Budget and Actual: 69th Avenue Local Improvement District Fund 46 • Dartmouth Local Improvement District Fund 47 • Metro Greenspaces Fund .............................................................48 Park Levy Improvement Fund ..........................................................49 Facility Fund .......................................................................50 Properity Funds: Enterprise Funds: Combining Balance Sheet ..............................................................51 • Combining Statement of Revenues, Expenses and Changes • in Retained Earnings .................................................................52 Combining Statement of Cash Flows 53 Schedules of Revenues and Expenditures - Budget and Actual: Sewer Fund ........................................................................54 Storm Drainage Fund 55 Water Quality & Quantity Fund 56 . Water General Fund .................................................................57 • Water Systems Development Fund 58 Water Capital Projects Fund 59 r Internal Service Funds: Combining Balance Sheet ..............................................................60 Combining Statement of Revenues, Expenses and Changes in Retained Earnings .................................................................61 • Combining Statement of Cash Flows ......................................................62 • Schedules of Revenues and Expenditures - Budget and Actual: Central Service Fund .................................................................63 Fleet/Property Management Fund .......................................................64 • • • • City of Tigard, Oregon • Table of Contents, Continued • • • Page • FINANCIAL SECTION, Continued: • SUPPLEMENTARY DATA (Combining and Individual Fund and Account . Group Statements and Other Financial Schedules), Continued: • General Fixed Assets Account Group: • Schedule of General Fixed Assets - By Sources 65 Schedule of General Fixed Assets - By Function and Activity 66 Schedule of Changes in General Fixed Assets - By Function and Activity 67 • Other Schedules: Schedule of Property Tax Transactions and Outstanding Balances 68 • Schedule of Bond and Bond Interest Transactions 69 Schedule of Future Debt Service Requirements of Long Term Notes Payable 70 • Schedule of Future Debt Service Requirements of Bancroft Improvement Bonds 71 • Schedule of Future Debt Service Requirements of • General Obligation Bonds ...........................................................72 • STATISTICAL SECTION: General Governmental Expenditures By Function - Budgetary Basis - • for the last ten fiscal years .............................................................73 General Governmental Revenues By Sources - Budgetary Basis - for the last ten fiscal years .............................................................74 Property Tax Levies and Collections - for the last ten fiscal years 75 • Market Value and Assessed Value of Taxable Property - • for the last ten years 76 • Special Assessment Collections - for the last ten fiscal years 77 Property Tax Rates - Direct and Overlapping Governments - • for the last ten fiscal years ............................................................78 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita - for the last ten fiscal years 79 Computation of Legal Debt Margin - June 30, 2002 80 • Computation of Overlapping General Obligation Debt - June 30, 2002 81 . Ratio of Annual Debt Service Expenditures for Long-Term Debt to Total General Governmental Expenditures for the last ten years 82 • Property Value, Construction - for the last ten fiscal years 83 Principal Taxpayers - June 30, 2002 ......................................................84 Demographic Statistics - for the last ten fiscal years 85 . Miscellaneous Statistical Data - June 30, 2002 86 . AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS: Auditors' Comments and Disclosures 87 INTRODUCTORY SECTION • A • • • • • • • • December 23, 2002 I T, Y. F TICS 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, 2002. This report was prepared by the City's Finance Department. Responsibility for both the accuracy of presented data and the completeness and fairness of presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is presented accurately in all material respects, along with disclosures necessary to ensure that the reader may gain maximum understanding of the City's financial position and results of operations of the various funds and account groups of the City. _ The Comprehensive Annual Financial Report is presented in four sections: 1. Introductory - Includes the table of contents, a list of the City's principal officials, the City organization chart, and this transmittal letter. 2. Financial - Includes the report of independent accountants, general purpose financial statements, including notes to the financial statements, detailed combining and • individual fund and account group financial statements and schedules, and any required supplementary schedules. r 3. Statistical Tables - Includes selected general and financial information presented on a multi-year, comparative basis. 4. Audit Comments and Disclosures Section - Includes the independent accountants' comments and disclosure, as required by State regulations. The report includes all funds and account groups of the City under the direction of the City Council. Tigard/Tualatin School District, Tualatin Valley Water District, and Tualatin Valley Fire and Rescue District operate within the City limits but do not meet the established criteria for inclusion in this reporting entity and, accordingly, are excluded from this report. Organization Overview The City of Tigard is located in eastern Washington County just 12 miles southwest of downtown Portland, Oregon. Tigard has continued to be one of the fastest growing cities in Washington County and, with a population of approximately 43,040, is the eleventh largest city in the State. I 13125 SW Hall Blvd., Tigard, OR 97223 (503) 639-4171 TDD (503) 684-2772 Incorporated in 1961, the City of Tigard is governed by an elected Mayor and four council members who comprise the City Council. The City's Charter established the Council/Manager form of government. Each member of the City Council is elected at-large to serve a four-year term. The Mayor presides at Council meetings and is elected at-large for a four-year term. The i Mayor and Council provide community leadership, develop policies to guide the City in delivering services and achieving community goals, and encourage citizen awareness and A involvement. The City Council appoints the City Manager, administrative head of the City government. The City Manager is responsible for ensuring Council policies are implemented using resources appropriated by the Council to achieve desired service results in the community. The City provides the following direct services: • Police • Library • Road and street maintenance and construction • Park facilities and maintenance • Community development activities, including the following: ♦ Planning ♦ Building Inspection ♦ Engineering ♦ Street Lights • 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). Economic Outlook 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 7.41% during fiscal year 2002 representing an increase of 18% from fiscal year 2001. Tigard's assessed value for 2001/02 is $3,470,578,863. Up until June 30, 1997, assessed value was required to be market value. A property tax limitation known as Measure 50, which disconnected assessed value from market value for purposes of distributing property tax levies, was passed by the voters state-wide in May 1997. Measure 50 II reduced assessed value for 1997/98 to the 1995/96 market value, less 10%, plus the value of new construction. Assessed value grows each year by the rate of increase in real market value or 3%, whichever is less, plus a pro-rata share of new construction and annexations. Tigard's real property market value for 2001/02 was $4,624,009,037, which represents a 6.20% increase over the previous year. With the implementation of Measure 50 future growth in assessed value, however, is limited to 3% per year plus new constriction. In 2001/02, new construction was valued at $117,922,983 which gave the City the fifth year in a row where new construction produced additional property tax dollars. With Measure 50, Tigard's taxing authority is limited to its permanent rate of $2.51 per thousand dollars of assessed value. The results of the first five months for fiscal year 2003 are showing an improvement in building activity from the same period last year. Residential permits alone increased from 97 to 113 within the City limits while commercial activity is showing a decrease from 6 to 3 permits issued. Financial Plan The City has operated since 1980 using several five-year rolling financial plans. Each plan sets forth the activities and services that will be provided to citizens over the coming five-year period. Along with the services to be provided, the plan calls for a certain level of property taxation to support those services. City management and elected officials use the five-year plan to evaluate annual financial decisions and their future impacts. Each budget presented to the Budget Committee includes a comparison to the plan to ensure that the intent of the plan is continued from year to year. The financial plan as adjusted at this time provides funding for City operations through the year 2007. The City's five-year financial plan shows that, overall, the City's financial condition is good. The Plan does identify one problem area that requires immediate attention: the Road Funds (State Gas Tax, County Gas Tax, Traffic Impact Fee Funds). The condition of the Road Funds in general, and the State Gas Tax Fund in particular, are largely dependent upon State or County actions. The City continues to work with those entities to address these issues. The financial plan projects declining balances in the General Fund. However, the General Fund currently contains a strong fund balance. The financial plan suggests continued diligence in controlling expenditures, combined with efforts to address revenue needs. III • • • Major Initiatives • Work continues on obtaining a long-term source of drinking water for City residents. • The City currently purchases the majority of its water supply from the City of Portland through a contract that extends through 2007. The City is reviewing the options that are available to meet the future needs of this area. • Generous bequests to the City library totaling in excess of $870,000 in 1999 have 0 provided the opportunity to establish a construction reserve to expand or replace the existing library. A committee comprised of citizens, staff, and Council evaluated options and presented a recommendation to the Council to refer a general obligation bond measure to the voters in calendar year 2002. On May 21, 2002, voters approved a $13,000,000 general obligation bond to build a new library. The bonds were sold on • December 4, 2002 to the Oregon Economic and Community Development Department at • an interest rate of 4.21 • The City will continue to support development of the Washington Square Regional Center Plan. Further work on the need to coordinate the improvement of infrastructure at • the time of development will be completed during this next year. The Washington • Square area is one of three regional centers in Washington County and one of eight in the metropolitan region. Estimates from a recently completed study show that this regional center can accommodate 10,100 new jobs and 2,067 new housing units. • • Financial Information/Condition • Management of the City is responsible for establishing and maintaining an internal control system designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control system is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be • derived; and (2) the valuation of costs and benefits requires estimates and judgments by • management. The City of Tigard finished 2001/02 still in a strong financial position. Tigard faired • better than most communities with the implementation of Measure 50 because voters had passed an increased tax base in 1994 that was not levied until 1996/97. Because of the timing of the levy, it was recognized by Measure 50 and included in the permanent rate calculation. Ending fund balances for most funds remain strong. All of these things taken together make Tigard one of the most financially stable communities in the State and more able to deal with growth and limitations on funding sources. • • • • • • • • IV • • Fiscal Policies The City of Tigard has an important responsibility to its citizens to carefully account for public fiends, 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 Tigard City Council. • Activities of all funds are included in the annual adopted budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by program within each individual fund. • As demonstrated by the statements and schedules included in the financial section of this • report, the City continues meeting its responsibility for sound financial management. • r • i • • ~ v • • General Governmental Functions The revenues and other financing sources for general governmental functions (all governmental funds) on a generally accepted accounting principles basis totaled $28,784,431 in fiscal year 2002. Revenues from various sources and changes from last year are shown below: Increase/ (Decrease) Amount Percent from Fiscal Percent Increase/ Functions Fiscal Year 2002 of Total Year 2001 (Decrease) REVENUES: 40 Taxes $ 9,018,360 36.60% $ 514,088 6.05% 0 Franchise Fees 2,674,389 10.86% 610,411 29.57% 0 Special Assessments 343,642 1.19% 53,374 18.39% • Licenses and Permits 3,187,961 11.08% (837,156) (20.80%) Intergovernmental Revenues 4,778,450 16.60% 17,739 0.37% Charges for Services 443,419 1.54% (289,378) (39:49%) Fines and Forfeitures 415,760 1.44% 48,028 13.06% 0 Miscellaneous Interest 0 and Revenues 996,197 3.46% 444,102) (30.83%) Total Revenues 21,858,178 75.94% (326,996) 1.89% Other Financing • Sources: • Proceeds from debt issuuance 3,365,972 11.69% 1,365,875 68.29% Proceeds from long-term note 781,073 2.71% 781,073 100.00% Transfers In 2,779,207 9.66% 2,062,707 287.89% Total Other Financing Sources 6,926,252 24.06% 4,209,655 154.96% Total Revenues and • Other Financing Sources $ 28,784,430 100.00% $ 3,850,659 15.44% • Property tax revenue increased over last year primarily due to annexations that took place during the year and new housing growth that took place in fiscal year 2001. The increase in franchise fees is due to additional revenues received as a result of an audit of Portland General Electric as well as new franchisor's within the City. The increase in special r assessments is a result of final assessment and collections from the 69`x' Ave. LID. The decrease in licenses and permits and charges and services is directly related to the VI decrease in construction starts during the year. The significant reduction in miscellaneous revenues is the result of the downturn in the economy and a major decrease in interest rates. The City issued bonds for the 69'hAve. LID to refinance the bond anticipation notes for this LID and issued bond anticipation notes for the Dartmouth LID. This resulted in an increase in bond proceeds over the previous fiscal year. Proceeds from long-term notes are from a new loan from the Oregon Economic Community Development Department for the financing of a large capital improvement project at the City's Cook Park. Transfers in have increased from last fiscal year due to a change in the accounting for internal services. The following schedule presents a summary of program expenditures for all governmental funds, including debt service, for the fiscal year ended June 30, 2002, and the changes from the prior year: Increase/ Amount (Decrease) Percent Fiscal Year Percent from Fiscal Increase/ Programs 2002 of Total Year 2001 (Decrease) Community Services $ 8,372,801 32.42% $ (323,409) (3.72%) Public Works and Community Development 5,927,523 22.95% 1,094,886 22.66% Policy and Administration 309,559 1.20% (2,284,257) (88.07%) Citywide Support Program - 0.00% (16,021) -(100.00%) • Capital Improvements 2,700,075 10.45% (1,178,858) -(30.39%) • Debt Service 2,785,404 10.78% 2,112,748 314.09% Total Expenditures 20,095,362 77.81% (594,911) (2.88%) Other Financing Uses - Operating Transfers Out 5,731,724 22.19% 5,015,224 699.96% Total Expenditures and Other Financing Uses $ 25,827,086 100.00% $ 2,893,411 12.62% S In previous years, the budget for the City's Parks and Grounds Division was shown in the Community Services program. This was moved to the Public Works program in fiscal year 2002, accounting for most of the decrease in the Community Services program and increasing the Public Works and Community Development program category. At the same time, however, there were increased expenditures in both the Library and Police f~ Departments making the impact of the Parks and Grounds transfer not as great. In the Policy and Administration, there is a significant reduction in expenditures in the governmental finds. This is due to the creation of an Internal Service Fund (Central Services Fund) which accounts for all policy and administrative program costs other than Mayor and Council and Municipal Court, which are still being accounted for in the ' VII • • General Fund. Please see page VIII of this transmittal letter for further explanation. In addition all Citywide Support Program expenditures, which are City Attorney costs, were also transferred to the Central Services Fund. The decrease in Capital Improvements is consistent with the changes in the City's Five-Year Capital Improvement Program (CIP). The significant increase in Debt Service reflects the City refinancing the bond anticipation notes for the 691h Ave. and Dartmouth LIDs. Transfers out have increased due to the establishment of the Internal Service Funds. . Governmental Fund Balances • Total governmental budgetary fund balances of the City were $19,851,839 at June 30, 2002, consisting of $7,795,072 in the General Fund, $7,850,731 in the Special Revenue • Funds, $2,154,758 in the Debt Service Funds, and $2,051,278 in the Capital Projects Funds. • Enterprise Operations • • The City's enterprise activities include sanitary sewer, storm sewer and water operations. Although Clean Water Services (formerly Unified Sewerage Agency) owns and operates sewage treatment plants and sets the sewer rates, the City bills sewer accounts and maintains all sewer lines within the city. The City also maintains the storm sewer system, and charges a monthly surface water fee at a rate set by the Regional Surface Water Management Agency, a regional entity affiliated with Clean Water Services. • Sanitary sewer operating revenues derived primarily from service charges amounted to $1,319,135. Operating expenses totaled $753,455 resulting in net income of $599,433 after non-operating interest revenues totaling $273,324 and operating transfers out of ; $239,571. Storm sewer operating revenues amounted to $1,078,641. Storm sewer operating expenses totaled $813,114 resulting in net loss of $102,768 after non-operating interest • revenues totaling $82,627 and operating transfers out of $450,922. • • Water operating revenues derived from user charges amounted to $5,098,467. Operating expenses totaled $4,927,200 resulting in a net loss of $533,547 after non-operating interest revenues of $370,772 and operating transfers out of $1,075,586. Internal Services Funds For fiscal year 2002, the City adopted a major change to its financial management practices by changing to a direct charge system. Each operation is assigned to a home fund and the expenditures of those operations are charged to that fund without having to go through a two-step allocation process. r • In some cases, some operational cost may be properly paid out of more than one fund. In these instances, the City charges the expenditure to the home fund, but will then transfer resources from other funds that can properly pay a portion of those expenses to the home fund, for budgetary purposes. The operations most directly affected by the need to • VIII • transfer resources are the central administrative functions (City Administration, Finance, and City Attorney) and internal services (Fleet Maintenance and Property Management). Accordingly, two new funds were established: the Central Services Fund and the Fleet/Property Management Fund. The Central Services Fund accounts for the expenses of the central administrative services of the City: City Administration (City Manager, Human Resources, Network Services, and Risk Management), Finance (Finance Administration, Financial Operations, Office Services, and Records Management) and the City Attorney. The Fleet/Property Management Fund accounts for the expenses of the Fleet Maintenance Division and the Property Management Division. These two divisions of the Public Works Department provide services maintaining and repairing all City vehicles and all City buildings Pension Trust Fund The City provides a retirement plan for each employee group. Non-police personnel, including both management and non-management, are covered by ICMA money purchase plans. The money purchase plans are accounted for in a pension trust fund. Effective July 1, 1989, police personnel were included in the State of Oregon Public Employees Retirement System. As of January 1, 2002, the City picked up the employee contribution per the new labor contract. In addition, all employees have the option to contribute to an ICMA deferred compensation program. • Cash Management • • Temporarily idle cash during the year with invested in accordance with the investment policy approved by the City Council in certificates of deposit, banker's acceptances, commercial paper, U.S. Treasury Agencies and Notes, and the State of Oregon Local • Government Investment Pool. Pension trust funds are invested by the agents with whom investment funds have been deposited and are, therefore, not included in the city's investment activities. • Results of investment activity for the fiscal year are shown below in comparison with the previous year: Investment Income (Loss) 2002 2001 General Fund $ 270,006 $ 503,570 S Special Revenue Funds 282,874 442,274 Capital Projects Fund 72,602 97,471 • Debt Service Funds 28,477 51,402 Enterprise Funds 726,723 1,220,811 Internal Service Funds 17,317 - Pension Trust Fund (979,031) (888,314) Total $ 418,968 $ 1,427,214 • 0 IX • 0 0 • 0 0 The objective of the City's investment policy is to provide for the preservation of City assets, to ensure such assets are available to meet obligations and to provide for a reasonable rate of return on those assets. However, the City does not have direct control 0 over the Pension Trust Fund assets. These fiinds are invested by the pension fund managers. Due to an economic downturn in the market, the fair value of these assets decreased. • Risk Management • The City has initiated a Risk Management Program to include regular risk categories such as property and liability as well as workers' compensation. Such risks are currently • being insured by third party insurance companies, however, participation in insurance • pools and/or self-insurance is being discussed. • • For the last two years the City has received awards for excellence from SAIF and League • of Oregon Cities / City County Insurance Services for the safety record the City has • maintained for a city of this size. • • Debt Management At June 30, 2002, the City has the following debt issues outstanding: • General Obligation Bonds - 1993 Series A $ 245,000 Bancroft Improvement Bonds - 1993 Series B 190,000 Limited Tax Improvement Bonds - Series 1998 1,081,274 • Limited Tax Improvement Bonds - Series 2002 1,307,969 • Bond Anticipation Notes 3,771,003 • Long-term Notes Payable 2,290,248 Total $ 8,885,494 • The State of Oregon mandates a general obligation debt limit of 3 percent of true cash • value of taxable property within the city boundaries. The limit totaled $138,720,271 at June 30, 2002. The City's debt subject to this limit was $245,000. Bancroft Bonds, Limited Tax Improvement bonds and Bond Anticipation Notes are not subject to the limitation. Therefore, $138,475,271 is available for future indebtedness. • The City has an Al bond rating from Moody's Investment Services on its general obligation bonds. Independent Audit r 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 x Corporations as prescribed by the Secretary of State. The independent auditors' opinion has been included in this report. 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 The preparation of the comprehensive annual financial report was made possible by the dedicated service of the entire staff of the Finance Department and our auditors, Pauly, Rogers and Co., P.C. Each member of the Department has our sincere appreciation for the contributions made in the preparation of this report. In closing, without the leadership and support of the City Council of the City of Tigard, preparation of this report would not have been possible. Sincerely, William A. Monahan Craig Prosser City Manager Finance Director • • • • xi • • • • • • City of Tigard, Oregon • • • 0 MAYOR AND COUNCIL MEMBERS AS OF JUNE 30, 2002 • • • • • Name Term Expires • • Mayor James Griffith December 31, 2002 • • Councilor Craig Dirksen December 31, 2004 • • Councilor Brian Moore December 31, 2004 • • Councilor Joyce Patton December 31, 2002 • • Councilor Ken Scheckla December 31, 2002 • • • • 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 • • • • • • XII • • ORGANIZATION CHART City of Tigard, Oregon Citizens Mayor & City City Council Attorney City Manager Police Library Public Works Community Engineering City Finance t.y Development Administration Administration Administration Administration Administration Engineering City Finance Department Management Department Operations Readers Services Sanitary Sewer Building Inspection Street Lights/Signals Mayor & Financial Council Operations I I Support Technical Services Storm Sewer Current Human Resources Office Seruces Seruces Planning Circulation Water Long Range Risk Management Records Planning Street Network Services Municipal Court Maintenance Fleet Maintenance I Property Mgmt. • • Parks and • Grounds • • • • • • • • XIII • • • • • • 0 • • 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 i1 June 30, 2001 • 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. • • s 0 0fcj~ • ~ FTN ~ UNITED STALES y CMMA u' • y s President CORPORATION SFAL ClIICP~O O` Executtive Director • • • • • • XIV • • FINANCIAL SECTION • • • s ` • • • • • • • PAUL. ROGERS AND CO., P.C. 1~rrrle CERTIFIED PUBLIC ACCOUNTANTS • 12700 SW 72ND AVENUE • TIGARD, OREGON 97223 December 23, 2002 • (503) 620-2632 • FAX (503) 684-7523 To the Honorable Mayor and Members of the City Council City of Tigard, Oregon INDEPENDENT AUDITORS' REPORT We have audited the general purpose financial statements of the City of Tigard, Oregon, as of and for the year ended June 30, 2002 as listed in the table of contents. The general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Tigard, Oregon, as of June 30, 2002, and the results of its operations, and the cash flows of its proprietary fund types for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The supplementary data of combining and individual fund and account group statements and other financial schedules, as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The other data included in this report, designated as the statistical section in the table of contents, has not been audited by us, and accordingly, we express no opinion on such data. J i 1 •~~~~~~~~~e~~~~~~~~~~~~~~~~~~~~~~~i~~~s~~~~~~~~~i~~~~~s General Purpose Financial Statements • • • • • • • • • • • • • • • • • • • • 0 CITY OF TIGARD, OREGON COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 2002 Governmental Fund Types • Special Debt Capital ASSETS AND OTHER DEBITS General Revenue Service Projects Assets: Cash and investments $ 8,398,838 $ 8,125,288 $ 2,139,824 $ 2,060,624 • Restricted cash and investments - - - - Accounts receivable 112,547 1,579,283 - Due from other funds - - - • Property taxes receivable 360,047 - 13,501 Assessment liens receivable - 121,328 4,500,060 Prepaid insurance 42,116 - - - • Inventory - - Fixed assets, net - - Other Debits: • Amount available for retirement of general long-term debt - - - - Amount to be provided for retirement of general long-term debt - - - Total Assets and Other Debts $ 8,913,548 $ 9,825,899 $ 6,653,385 $ 2,060,624 • LIABILITIES, FUND EQUITY AND OTHER CREDITS • Liabilities Accounts payable and accrued liabilities $ 512,893 $ 394,037 $ - $ 9,346 Customer deposits 334,701 372,796 - - Deferred revenues: Property taxes 270,882 - 9,627 Assessment liens receivable - 1,208,335 2,430,368 • Accrued interest on delinquent assessments - 2,629 • Accrued vacation payable - - - - Notes payable - • Bond anticipation notes payable - - 2,056,003 - Bonds payable - - - - Special assessment bonded debt • with government commitment - - Total Liabilities 1,118,476 1,975,168 4,498,627 9,346 • Equity and Other Credits: Contributed capital - - - Investment in general fixed assets - - - Retained earnings - - Fund balances: Reserved for prepaid insurance 42,116 - - • Reserved for inventory - - - Reserved for employee retirement benefits - - - - Unreserved and undesignated (Deficit) 7,752,956 7,850,731 2,154,758 2,051,278 . Total Equity and Other Credits 7,795,072 7,850,731 2,154,758 2,051,278 Total Liabilities, Equity and Other Credits $ 8,913,548 $ 9,825,899 $ 6,653,385 $ 2,060,624 The amount available for retirement of general long-term debt is the ending fund balance O in the General Obligation Debt Service Fund. (See Note 14) The accompanying notes are an intergral part of the general purpose financial statements. 2 O Proprietary Fiduciary Fund Types Fund Type Account Groups General Totals Internal Pension General Long-term (Memorandum Enterprise Service Trust Fixed Assets Debt Only) $ 16,233,087 $ 564,920 $ 8,194,960 $ $ $ 45,717,541 5,253,994 - - 5,253,994 1,491,282 2,807 - - 3,185,919 36 - - 373,584 - - 4,621,388 - - - 42,116 104,350 12,625 116,975 47,304,057 - 18,540,468 65,844,525 - - 51,244 51,244 - - - 7,307,627 7,307,627 $ 70,386,806 $ 580,352 $ 8,194,960 $ 18,540,468 $ 7,358,871 $ 132,514,913 $ 1,259,208 $ 184,204 $ - $ - $ - $ 2,359,688 87,308 - 794,805 - 280,509 436 - 3,639,139 - - - 2,629 133,551 112,382 529,380 775,313 - 2,290,248 2,290,248 - 1,715,000 3,771,003 245,000 245,000 - - - 2,579,243 2,579,243 1,480,503 296,586 7,358,871 16,737,577 • 53,076,458 - - 53,076,458 - - 18,540,468 - 18,540,468 • 15,829,845 283,766 - - 16,113,611 • - - - - 42,116 - 8,194,960 - 8,194,960 • - - - 19,809,723 68,906,303 283,766 8,194,960 18,540,468 - 115,777,336 • $ 70,386,806 $ 580,352 $ 8,194,960 $ 18,540,468 $ 7,358,871 $ 132,514,913 00000 000000000000000000®®00•®® O CD 4) L O L R I-h w.- O CU CITY OF TIGARD, OREGON COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES for the fiscal year ended June 30, 2002 Totals Special Debt Capital (Memorandum Revenues: General Revenue Service Projects Only) Taxes $ 8,782,517 $ - $ 235,841 $ 2 $ 9,018,360 Franchise fees 2,674,389 - - - 2,674,389 Special assessments - - 343,642 343,642 Licenses and permits 41,937 3,146,024 - - 3,187,961 Intergovernmental revenues 2,490,851 2,163,013 - 124,586 4,778,450 Charges for services 982,297 98,858 - - 1,081,155 Fines and forfeitures 415,760 - - - 415,760 Interest earnings 270,006 282,874 28,476 72,602 653,958 Miscellaneous 51,001 140,107 83,946 67,185 342,239 Total revenues 15,708,758 5,830,876 691,905 264,375 22,495,914 Expenditures: Current: Community services 8,372,801 - - - 8,372,801 Public works 2,197,835 - - 2,197,835 Development services 2,260,205 1,469,483 - 3,729,688 Policy and administration 3,193,722 708,814 - - 3,902,536 Capital projects 55,942 2,412,227 - 231,906 2,700,074 Debt service - - 2,785,404 - 2,785,404 Total expenditures 16,080,505 4,590,524 2,785,404 231,906 23,688,339 Changes in fund balance before other financing sources (uses) (371,747) 1,240,352 (2,093,499) 32,469 (1,192,425) Other financing sources (uses): Proceeds from issuance of bond anticiaption notes - - 3,365,972 - 3,365,972 Proceeds from long-term note - 781,073 - 781,073 Operating transfers in 1,308,584 427,891 - 404,997 2,141,472 Operating transfers (out) (459,749) (1,681,723) - - (2,141,472) Total other financing sources (uses) 848,835 (472,759) 3,365,972 404,997 4,147,045 Changes in fund balance 477,088 767,593 1,272,473 437,466 2,954,620 • Fund Balance (Deficit) - Beginning of year, • as previously stated 7,317,984 7,083,138 (406,067) 1,613,812 15,608,867 Prior period adjustment (Note 13) - - 1,288,352 - 1,288,352 Fund Balance - Beginning of year, • as restated 7,317,984 7,083,138 882,285 1,613,812 16,897,219 • Fund Balance - End of year $ 7,795,072 $ 7,850,731 $ 2,154,758 $ 2,051,278 $ 19,851,839 • • • • • • The accompanying notes are an integral part of the general purpose financial statements. • • 3 • • • • CITY OF TIGARD, OREGON • COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES • IN FUND BALANCES - BUDGET AND ACTUAL - ALL GOVERNMENTAL FUND TYPES • for the fiscal year ended June 30, 2002 • • • General Fund Special Revenue Funds • Variance Variance Final Favorable Final Favorable Revenues: Budget Actual (Unfavorable) Budget Actual (Unfavorable) Taxes $ 8,430,990 $ 8,782,517 $ 351,527 $ - $ - $ - • Franchise fees 2,306,860 2,674,389 367,529 - Special assessments - - - 54,208 - (54,208) • Licenses and permits 40,695 41,937 1,242 3,599,676 3,146,024 (453,652) • Intergovernmental revenues 2,415,100 2,490,851 75,751 2,595,168 2,163,013 (432,155) Charges for services 329,001 344,561 15,560 80,440 98,858 18,418 Fines and forfeitures 683,750 415,760 (267,990) - • Interest earnings 341,500 270,006 (71,494) 297,440 282,874 (14,566) Miscellaneous 76,250 51,001 (25,249) 55,000 140,107 85,107 Total revenues 14,624,146 15,071,022 446,876 6,681,932 5,830,876 (851,056) • • Expenditures: • Community services 9,134,516 8,372,801 761,715 - - - Public works 2,374,907 2,197,835 177,072 - - - Development services 2,532,431 2,260,205 272,226 1,580,644 1,469,483 111,161 • Policy and administration 398,345 309,559 88,786 - - - Contingency 979,393 - 979,393 1,018,195 - 1,018,195 Capital projects 410,000 55,942 354,058 6,037,158 2,412,227 3,624,931 • Debt service - - - - - - • Total expenditures 15,829,592 13,196,342 2,633,250 8,635,997 3,881,710 4,754,287 • Changes in fund balance before other financing sources (uses) (1,205,446) 1,874,680 3,080,126 (1,954,065) 1,949,166 3,903,231 • Other financing sources (uses): • Proceeds from issuance of bond • anticipation notes - - - - - - Proceeds from long term note - - - 1,431,847 781,073 (650,774) Operating transfer in 2,231,920 1,946,320 (285,600) 427,891 427,891 - • Operating transfer out (3,616,008) (3,343,912) 272,096 (2,699,341) (2,390,537) 308,804 • Total other financing sources (uses) (1,384,088) (1,397,592) (13,504) (839,603) (1,181,573) (341,970) • Changes in fund balance (2,589,534) 477,088 3,066,622 (2,793,668) 767,593 3,561,261 Fund Balance - Beginning of year, • as previously stated 6,082,150 7,317,984 1,235,834 5,679,613 7,083,138 1,403,525 • Prior period adjustment (Note 12) - - - - - - • • Fund Balance - Beginning of year, • as restated 6,082,150 7,317,984 1,235,834 5,679,613 7,083,138 1,403,525 • Fund Balance (Deficit) - End of year $ 3,492,616 $ 7,795,072 $ 4,302,456 $ 2,885,945 $ 7,850,731 $ 4,964,786 • • • • • • • • The accompanying notes are an intergrai part of the general purpose financial statements. • 4 • • Debt Service Funds Capital Projects Funds Totals (Memorandum Only) Variance Variance Variance Final Favorable Final Favorable Final Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 220,564 $ 235,841 $ 15,277 $ - $ 2 $ 2 $ 8,651,554 $ 9,018,360 $ 366,806 - - - - - 2,306,860 2,674,389 367,529 228,356 343,642 115,286 - - - 282,564 343,642 61,078 - - - - - 3,640,371 3,187,961 (452,410) - - 131,046 124,586 (6,460) 5,141,314 4,778,450 (362,864) - - - 409,441 443,419 33,978 - - - - - - 683,750 415,760 (267,990) 6,000 28,476 22,476 78,100 72,602 (5,498) 723,040 653,958 (69,082) 115,542 83,946 (31,596) - 67,185 67,185 246,792 342,239 95,447 570,462 691,905 121,443 209,146 264,375 55,229 22,085,686 21,858,178 (227,508) - - - - - - 9,134,516 8,372,801 761,715 2,374,907 2,197,835 177,072 4,113,075 3,729,688 383,387 398,345 309,559 88,786 112,500 - 112,500 2,110,088 - 2,110,088 - - 951,046 231,906 719,140 7,398,204 2,700,075 4,698,129 4,762,210 2,785,404 1,976,806 - - - 4,762,210 2,785,404 1,976,806 4,762,210 2,785,404 1,976,806 1,063,546 231,906 831,640 30,291,345 20,095,362 10,195,983 (4,191,748) (2,093,499) 2,098,249 (854,400) 32,469 886,869 (8,205,659) 1,762,816 9,968,475 4,450,000 3,365,972 (1,084,028) - - - 4,450,000 3,365,972 (1,084,028) 1,431,847 781,073 (650,774) - - - 450,000 404,997 (45,003) 3,109,811 2,779,208 (330,603) - - - - - (6,315,349) (5,734,449) 580,900 4,450,000 3,365,972 (1,084,028) 450,000 404,997 (45,003) 2,676,309 1,191,805 (1,484,504) 258,252 1,272,473 1,014,221 (404,400) 437,466 841,866 (5,529,350) 2,954,620 8,483,970 257,662 (406,067) (663,729) 1,490,859 1,613,812 122,953 13,510,284 15,608,867 2,098,583 - 1,288,352 1,288,352 1,288,352 1,288,352 • 257,662 882,285 624,623 1,490,859 1,613,812 122,953 13,510,284 16,897,219 3,386,935 • $ 515,914 $ 2,154,758 $ 1,638,844 $ 1,086,459 $ 2,051,278 $ 964,819 $ 7,980,934 $ 19,851,839 $ 11,870,905 • CITY OF TIGARD, OREGON COMBINED STATEMENT OF REVENUES, EXPENSES AND • CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUNDS • for the fiscal year ended June 30, 2002 • • • Internal Totals • Enterprise Service (Memorandum • Funds Funds Only) • Operating revenues: • Service charges $ 7,408,960 $ 4,907,154 $ 12,316,114 Miscellaneous 87,283 4,004 91,287 • Total operating revenues 7,496,243 4,911,158 12,407,401 • • Operating expenses: Salaries, wages and benefits 1,556,344 2,849,775 4,406,119 Contracted services 133,224 495,439 628,663 • General, administrative and other 4,940,379 1,299,495 6,239,874 Depreciation 1,629,901 - 1,629,901 • Total operating expenses 8,259,848 4,644,709 12,904,557 • Operating income (loss) (763,605) 266,449 (497,156) • Nonoperating revenues - Interest 726,723 17,317 744,040 • Net income (loss) (36,882) 283,766 246,884 • Add depreciation on fixed assets donated or acquired from capital contributions that reduce contributed capital 641,544 - 641,544 • Increase in retained earnings 604,662 283,766 888,428 Retained earnings - beginning of year 15,225,183 - 15,225,183 Retained earnings - end of year $ 15,829,845 $ 283,766 $ 16,113,611 • • • • • The accompanying notes are an integral part of the general purpose financial statements. • • • • • • • 5 • • CITY OF TIGARD, OREGON COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUNDS for the fiscal year ended June 30, 2002 Internal Totals Enterprise Service (Memorandum Funds Funds Only) Cash flows from operating activities: Operating income (loss) $ (763,605) $266,449 $ (497,156) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 1,629,901 - 1,629,901 Increase in accounts receivable 454,454 (2,807) 451,647 Decrease in inventory 15,205 (12,625) 2,580 Decrease in customer deposits 7,247 - 7,247 Decrease in accounts payable and accrued liabilities 11,895 184,204 196,099 Decrease in accrued vacation payable 37,693 112,382 150,075 (Decrease) in deferred revenue (31) - (31) Net cash provided by operating activities 1,392,759 547,603 1,940,362 Cash flows from capital and related financing activities: Capital contributions 619,212 - 619,212 Acquisition of fixed assets (1,358,044) - (1,358,044) Net cash used by capital and related financing activities (738,832) - (738,832) Cash flows from investing activities - Interest earnings 726,723 17,317 744,040 Net increase in cash and cash equivalents 1,380,650 564,920 1,945,570 Cash and cash equivalents - beginning of year 20,106,431 - 20,106,431 Cash and cash equivalents - end of year $ 21,487,081 $564,920 $22,052,001 • Cash and cash equivalents are displayed on the balance sheet as follows: Cash and investments $ 16,233,087 $564,920 $16,798,007 • Restricted cash and investments 5,253,994 - 5,253,994 • $ 21,487,081 $564,920 $22,052,001 • • Supplemental schedule of noncash investing, capital and • related financing activities: • Contributed sewer, storm and water lines $ 2,655,790 $ - $ 2,655,790 • • The accompanying notes are an integral part of the general purpose financial statements. • • • ~ 6 • • • • • • • CITY OF TIGARD, OREGON • • STATEMENT OF PLAN NET ASSETS PENSION TRUST FUND June 30, 2002 • • • • Cash and investments $ 8,194,960 • • Net assets held in trust for pension benefits $ 8,194,960 • • • • • • • STATEMENT OF CHANGES IN PLAN NET ASSETS PENSION TRUST FUND • for the fiscal year ended June 30, 2002 • • • • • Additions: • Contributions $ 824,994 • Investment (loss) (979,031) Total additions (deficit) (154,037) • Deductions: Benefit payments and withdrawals (415,923) • • • Decrease in net assets (569,960) Net assets held in trust for pension benefits: • Beginning of year 8,764,920 • • End of year $ 8,194,960 • • • • The accompanying notes are an integral part of the general purpose financial statement. • 7 Notes to General Purpose Financial Statements • • • • • • • • • • • • • • • 0 • City of Tigard, Oregon • Notes to General Purpose 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 has no component units. Measurement Focus The financial statements of the Governmental Fund Types are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets • and current liabilities generally are included on the combined balance sheet. • Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current • assets. • The Proprietary Fund Type (Enterprise Funds and Internal Service Funds) and the Pension • Trust Fund are accounted for using a flow of economic resources measurement focus. With • this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the combined balance sheet. . Bases of Accounting • • The Governmental Fund Types are maintained on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded in the accounting • period in which they become measurable and available and expenditures are recorded in the time liabilities are incurred. • Revenues which were measurable and available at year-end under the modified accrual . basis of accounting were as follows: . * State, county, and local shared revenues for cigarette tax, liquor tax and other. • S Property tax revenues and assessment liens principal installments which are • collected within sixty days following year-end. • The accrual basis of accounting is utilized by the Proprietary Fund Types and the Pension Trust Fund. Under this method, revenues are recorded when earned and expenses are • recorded at the time liabilities are incurred. The proprietary funds have applied all Financial • Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles • Board Opinions and Accounting Research Bulletins of the Committee and Accounting • Procedure issued on or before November 30, 1989, unless those pronouncements conflict with or contradict Governmental Accounting Standards Board (GASB) pronouncements. • The bases of accounting described above are in accordance with generally accepted accounting principles. • Receivables • Receivables for state, county and local shared revenues are recorded as revenue in the Governmental Funds when they are determined to be measurable and available. . Receivables of the Enterprise Funds are recorded as revenue when earned. • • • 8 • • • • City of Tigard, Oregon Notes to General Purpose Financial Statements 1. Summary of Significant Accounting Policies, Continued: Substantially all accounts receivable for sewer and water service are either current or less than 30 days delinquent and are considered collectible. Therefore, an allowance for uncollectible accounts has not been provided. All accounts receivable balances are due from customers within the City's boundaries. Property taxes receivable for the Governmental Fund Types which have been collected within sixty days subsequent to year-end are considered measurable and available and are recognized as revenues. All other property taxes are offset by deferred property tax revenues and, accordingly, have not been recorded as revenue. Property taxes become a lien and are levied on July 1. Collection dates are November 15, February 15, and May 15 following the lien date. Discounts are allowed if the amount due is received by November 15. Taxes unpaid and outstanding on May 16 are considered delinquent. All property taxes received are due from property owners within the County. Assessments in the governmental funds are recognized as receivables at the time property owners are assessed for property improvements. Assessments receivable collected within sixty days after year-end are considered measurable and available and are recognized as revenue. All other assessments receivable are recorded as deferred revenue and, accordingly, have not been recorded as revenue. Accrued interest on delinquent assessments which has been collected within sixty days after year-end is considered measurable and available is recognized as revenue. The remaining accrued interest on delinquent accounts is offset by a deferred revenue account and, accordingly, has not been recorded as revenue. Inventories Inventories of parts, materials and supplies are stated at cost on the first-in, first-out basis 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. Restricted Cash and Investments Cash and investments which may only be used for construction of fixed assets in accordance with applicable laws and regulations have been reported as restricted cash and investments on the combined balance sheet Investments Investments included in cash and investments are stated at fair value. Investments in the pension trust fund are stated at 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 Oregon State Treasurer's Investment Pool, to be cash. 9 • • City of Tigard, Oregon • Notes to General Purpose Financial Statements • 1. Summary of Significant Accounting Policies, Continued: Enterprise Fund Fixed Assets • Purchased fixed assets are stated at historical cost or estimated historical cost when • historical cost is not available. Donated assets are recorded at fair market value on the date of donation. Estimated fair market value of donated assets is determined based on the • engineering estimates of current cost or price indexed cost. Depreciation is computed on assets in service, using the straight-line method over their estimated useful lives: Buildings 40 years • Sewer Systems 40 years Storm Drainage System 40 years Water System 50 years • Equipment 5 to 10 years Autos and Trucks 6 years Depreciation expense on fixed assets donated or acquired from capital contributions is • recognized as a reduction of contributed capital and an increase in retained earnings. • Normal maintenance and repairs are charged to operations as incurred. Major additions, 0 improvements and replacements are capitalized. Gains or losses from sales or retirements • of fixed assets are included in operations. General Fixed Assets • General fixed assets are stated at historical cost or estimated cost when historical cost is not • available. Fixed assets are charged to expenditures in the Governmental Fund Types as purchased and capitalized in the General Fixed Assets Account Group. Maintenance and repairs of fixed assets are charged to expenditures in the Governmental Fund Types as • incurred and are not capitalized. As fixed assets are disposed of, the historical cost or estimated historical cost is removed from this account group; proceeds from sales of general 0 fixed assets are recorded as General Fund revenue. Depreciation is not computed on 0 general fixed assets. 0 Expenditures for public domain fixed assets (streets, sidewalks, curbs and gutters, lighting 0 systems and similar assets) that are immovable and of value only to the City as a • governmental unit are reported as expenditures as incurred and are not capitalized in the • General Fixed Assets Account Group. • Long-term Debt 0 All unmatured long-term debt is recorded in the General Long-term Debt Account Group. Periodic principal and interest repayments on bonded debt are made from special assessments and property tax levies and are recorded in the Debt Service Funds. Bond anticipation notes are expected to be repaid by rolling over the bonds to new bond . anticipation notes or by issuing long-term Bancroft Bonds. The accrued vacation liability will be paid from the various governmental funds. The City has no long-term debt in its Proprietary funds. • • 0 0 10 0 • 0 City of Tigard, Oregon Notes to General Purpose Financial Statements 1. Summary of Significant Accounting Policies, Continued: Accrued Vacation Payable Accumulated vested vacation pay is accrued in the Proprietary Funds as it is earned by employees. In Governmental Fund Types the amounts, if any, expected to be liquidated with expendable available resources are accrued as liabilities of the funds and the amount payable from future resources is recorded in the General Long-term Debt Account Group. Sick pay, which does not vest, is recorded in all funds when leave is taken. Contributed Capital Contributed capital in the Enterprise Funds represents the accumulation of contributions in the form of cash or other assets which generally do not have to be returned to the contributor. Such contributions are recorded directly to contributed capital and, accordingly, are not recognized as revenue. The following transactions are recorded in contributed capital in the Enterprise Funds: • Receipts of federal and state grants for acquisition of fixed assets. • Fixed assets contributed from other funds or the General Fixed Assets Account Group. • Contributions from others for the acquisition or construction of fixed assets. • Transfers from retained earnings for depreciation on fixed assets donated or acquired by contributed capital resources. • Meter installation and waterline hookup fees from customers and pipe installations by developers. Budget A budget is prepared for each fund except for the Pension Trust Fund, essentially in accordance with the modified accrual basis of accounting used by governmental funds, in accordance with the legal requirements of Oregon Local Budget Law. The resolution authorizing appropriations sets the maximum level of expenditures for each fund. Expenditure appropriations may not be legally overexpended. Appropriations lapse at the end of each fiscal year. Appropriations are made at the major program level for each fund, for example, Community Services, Public Works, Development Services, Policy and Administration, Nondepartmental, Debt Service, Capital Improvements and Contingency. The detail budget document, however, is required to contain more detailed information for the above-mentioned expenditure categories. Budget amounts include original approved amounts and all subsequent appropriations transfers approved by the City Council. After budget approval, the City Council may approve supplemental budgeted appropriations if an occurrence, condition, or need exists which had not been ascertained at the time the budget was adopted. A supplemental budget 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, 2002, nine appropriation transfers were made with one of those transfers being a supplemental budget. The budgets for each of the funds include capital outlay expenditures in each program for • capital outlays applicable to that program. Capital outlay expenditures benefiting the City • generally, and not an identifiable program, are reported separately. ~ 11 • • City of Tigard, Oregon • Notes to General Purpose Financial Statements • • 1. Summary of Significant Accounting Policies, Continued: Budget, Continued • • Debt service is also budgeted separately. For GAAP presentation, the transfers from • operating funds for services to the internal fund and the general fund are considered revenues and expenses/expenditures, as appropriate, but are considered to be interfund • transfers for budgetary purposes. • Totals (Memorandum Only) Column on Combined Financial Statements 0 • The "Totals (Memorandum Only)" column on the combined financial statements represents • an aggregate of the columnar statements by fund type and account group; it does not • represent consolidated financial information. Interfund eliminations have not been made in • the aggregation of this data • 2. Fund Types and Account Groups: • The City's financial operations are accounted for in the following funds and account groups: • • Governmental Fund Types • General Fund - This fund accounts for the City's general operations. It is used to • account for all transactions not specifically related to the City's other funds. • Special Revenue Funds: • • Criminal Forfeiture Fund - This fund accounts for funds and property 0 seized from criminals in connection with crimes committed. • State Gas Tax Fund - This fund accounts for revenues received from state • gasoline taxes which are to be expended as specified in the Constitution of • the State of Oregon, Article IX, Section 3. • Parks SDC Fund - This fund accounts for system development charges for 0 major improvements to recreational facilities within the City. • County Gas Tax Fund - This fund accounts for road tax monies received • from Washington County for the maintenance and operation of roads. • Traffic Impact Fund - This fund accounts for traffic impact fees charged for • new development. This voter approved county-wide fee takes the place of • the City's Street SDC Fund. Funds will be used for highway and transit 0 capital improvements approved by the County that provide additional • capacity to the major transportation system. • Electrical Inspection Fund - This fund accounts for fees charged for • permits and inspection of electrical improvements. • • Underground Utility Fund - This fund accounts for monies received from • developers for future underground utility improvements. • Workers' Compensation Fund - Records refunds of prior years workers' • compensation premiums. • Building Fund - This fund accounts for fees charged for building inspection • and plan review activities. 0 • 12 • • 41 City of Tigard, Oregon Notes to General Purpose Financial Statements 2. Fund Types and Account Groups, Continued: Governmental Fund Types, Continued Special Revenue Funds, Continued: Urban Services Traffic Impact Fee Fund - This Fund accounts for traffic impact fees collected in the unincorporated Bull Mountain area. Funds will be used for highway and transit capital improvements approved by Washington County that provide additional capacity to the City's transportation system. Urban Services Fund - This fund accounts for all revenues and expenditures related to services provided in the unincorporated Bull Mountain area. The City of Tigard provides services to this area pursuant to an intergovernmental agreement with Washington County. Tree Replacement Fund - This fund accounts for fees charged to developers in lieu of saving existing trees. Economic Improvement District Fund - This fund was designed to account for fees collected from assessments to local business and property owners for the purpose of supporting revitalization efforts in the downtown area. The Economic Improvement District was never formed and therefore no activity is shown in this fund. Debt Service Funds: General Obligation Debt Service Fund - This fund accounts for payment of general obligation bond principal and interest. The principal source of revenue is from property taxes. Bancroft Bond Debt Service Fund - This fund accounts for payment of Bancroft improvement bond principal and interest. The principal source of revenue is the collection of assessments against benefited property, interest and contributions from other funds for their share of costs. Capital Projects Funds: 69thAve. Local Improvement District Fund - This fund accounts for construction of Local Improvement District projects from the sale of bond anticipation notes and certain other debt. SW Dartmouth Local Improvement District 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 - This fund accounts for proceeds from the sale of certificates of participation and improvements to the City's park system. Facility Fund - This fund accounts for monies set aside for future City facility improvements. Metro Greenspaces Fund - This fund accounts for monies received from Washington County to be used for greenspace property acquisition and improvements. 13 • • City of Tigard, Oregon • Notes to General Purpose Financial Statements • • 2. Fund Types and Account Groups, Continued: Proprietary Fund Types • • 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) • • Internal Service Funds: • 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 Management and Property Management divisions in the • City. • Fiduciary Fund Type: • • Pension Trust Fund - This fund accounts for the City's General • and Water Fund employee defined contribution plans. • Account Groups • • General Fixed Assets - This account group displays the City's investment • in fixed assets, with the exception of those assets recorded in the • Enterprise Funds. • General Long-term Debt - This account group displays general long-term • indebtedness of the City. • • • • • • • • • 14 • • • City of Tigard, Oregon Notes to General Purpose Financial Statements 3. Cash and Investments: The City maintains a cash and investment pool that is available for use by all funds, except the Pension Trust Funds. Each fund type's portion of this pool is displayed on the combined balance sheet as "cash and investments". The investments of the Pension Trust Fund are held separately from those of other City funds. Cash and investments are comprised of the following at June 30, 2002: Cash on hand $ 5,176 Cash held by Department of Finance, Washington County 37,363 Deposits with financial institutions 3,618,560 Investments 47,310,436 $ 50,971,535 Cash and investments are displayed on balance sheet as follows: Cash and investments $ 45,717,541 Restricted cash and investments 5,253,994 $ 50,971,535 Deposits Deposits with financial institutions include bank demand deposits and time deposit accounts. The total bank balance is $3,628,852 (book balance is $3,618,560). Of these deposits, $100,000 was covered by federal depository insurance and $3,528,852 was collateralized with securities held by collateral pool managers. Oregon Revised statutes require the depository institution to maintain on deposit, with a collateral pool manager, securities having a value not less than 25 percent of the outstanding certificates of collateral issued by the poll manager. The City's deposits are fully collaterlized in accordance with state law. Investments State statutes authorize the City to invest primarily in general obligations of the U.S. government and its agencies, certain bonded obligations of Oregon municipalities, bank repurchase agreements, bankers' acceptances, certain commercial paper and the state Treasurer's Investment pool, among others. The City participates in the Oregon State Treasurer's Local Government Investment Pool (LGIP), an open-ended; no-load diversified portfolio created under ORS 294.805 to 294.895. The LGIP is administered by the State Treasurer and the Oregon Investment Council with the advice of the Oregon Short-Term Fund Board. The Oregon State Treasurer's Office has calculated the fair value of the underlying investments of the LGIP and the City's share of fair value is reflected below. The City's investments are categorized below to give an indication of the level of credit risk assumed by the City at June 30, 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. 15 0 • City of Tigard, Oregon • Notes to General Purpose Financial Statements • • 3. Cash and Investments, Continued: Category 1 2 3 Amount • U.S. Government Securities $ 27,202,936 $ 27,202,936 Held by custodians • under pension plans- mutual fund investments 8,194,960 State Treasurer's Local Government Investment Pool 11,912,540 • Total Investments $ 47,310,436 • • 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 0 bear interest to 7 to 13 percent. At June 30, 2002, the portion of the assessments • receivable balance that represents delinquent accounts is approximately $1,225. • 5. Fixed Assets: • • Changes in fixed assets and accumulated depreciation by major classes in the Enterprise Funds for the year ended June 30, 2002, are as follows: • Balances Balances • June, 30 June, 30 • 2001 Additions Retirements 2002 • Land $ 1,379,908 $ 6,455 $ - $ 1,386,363 • Building 1,052,255 28,574 - 1,080,829 • Sewer system 12,476,693 1,501,732 - 13,978,425 • Storm drainage system 10,892,912 1,226,762 - 12,119,674 • Water system 38,210,475 1,211,067 (564) 39,420,978 • Equipment 1,192,180 - (37,069) 1,155,111 Autos and trucks 1,133,557 39,244 .(937) 1,171,864 • • 66,337,980 $ 4,013,834 $ (38,570) 70,313,244 • Less accumulated • depreciation (21,417,856) $ (1,629,901) $ 38,570 (23,009,187) • • $ 44,920,124 $ 47,304,057 • • Internal Service Funds have no fixed assets. • Changes in fixed assets in the General Fixed Asset Account Group for the year ended June • 30, 2002, are as follows: • • • • 16 • • 0 City of Tigard, Oregon Notes to General Purpose Financial Statements 5. Fixed Assets, Continued: Balances Balances June 30, 2001 Additions Retirements June 30, 2002 Land $ 5,748,614 $ 1,504,241 $ - $ 7,252,855 Buildings 5,951,973 196,395 - 6,148,368 Equipment 1,659,761 72,020 (21,745) 1,710,037 Autos and trucks 1,641,113 135,131 - 1,776,244 Office equipment 1,903,338 8,390 (258,763) 1,652,964 $ 16,904,799 $ 1,916,177 $ (280,508) $ 18,540,468 6. Long-term Debt and Other Debt: Bonds payable Bond transactions for the year ended June 30, 2002, 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, 2001 During Year June 30, 2002 Interest 2002 $ 225,000 $ 225,000 $ - $ - 2003 245,000 - 245,000 11,638 $ 470,000 $ 225,000 $ 245,000 $ 11,638 Bancroft Improvement Bonds: Bancroft improvement bond issues - Interest rates from 3.75% to 11.75%; payable first from assessments to benefited properties and second, from the general credit of the City. Paid and Outstanding Additions Called Outstanding Fiscal Year June 30, During During June 30, Future Due 2001 Year Year 2002 Interest 2002 $ 140,894 $ - $ (140,894) $ - $ - 2003 257,147 28,200 285,347 151,728 2004 153,678 32,900 186,578 140,536 2005 160,499 35,300 195,799 131,290 2006 347,622 37,900 (100,000) 285,522 117,064 2007 175,061 40,800 215,861 102,323 2008 182,831 43,800 226,631 91,541 2009 94,436 47,000 141,436 80,193 2010-2022 - 1,042,069 1,042,069 584,522 $ 1,512,168 $ 1,307,969 $ (240,894) $ 2,579,243 $ 1,399,197 17 • • City of Tigard, Oregon • Notes to General Purpose Financial Statements • • 6. Long-term Debt and Other Debt, Continued: • Notes Payable: • • Note payable issued January 23, 2002 - Interest rates from 3.00% to 4.35%; payable from • Parks SDC fund. r Fiscal Total • Year Future Coupon Debt • Due Principal Interest Rate Service • • 2003 $ 198,521 $ 79,340 3.00% $ 277,861 9 2004 199,527 78,548 3.00% 278,075 • 2005 210,563 72,563 3.00% 283,126 • 2006 216,630 66,246 3.25% 282,876 • 2007 222,820 59,205 3.65% 282,025 • 2008 229,201 51,072 3.80% 280,273 • 2009 235,690 42,363 4.00% 278,053 2010 247,318 32,935 4.10% 280,253 • 2011 259,053 22,795 4.25% 281,848 • 2012 270,925 11,785 4.35% 282,710 40 Totals $ 2,290,248 $ 516,852 $ 2,807,100 • • Long-term debt recorded in the General Long-term Debt Account Group and the changes • thereto during the year ended June 30, 2002, are as follows: • • Balance Balance • June 30, June 30, • 2001 Additions Retirements 2002 • Accrued vacation payable $ 573,424 $ 529,380 $ (573,424) $ 529,380 • • Bond anticipation note (18 month) • purchased June 30, 2000, matures • January 2, 2002; interest rate 5.1 % $ 1,715,000 $ - $ - $ 1,715,000 • • • • • • • • • • • • • • • • 18 • • • 0 City of Tigard, Oregon Notes to General Purpose Financial Statements 6. Long-term Debt and Other Debt, Continued: Other Debt Other debt recorded in the Bancroft Bond Debt Service Fund and the changes thereto during the year ended June 30, 2002, are as follows: Balance Balance June 30, June 30, 2001 Additions Retirements 2002 Bond anticipation notes due May 1, 2002; interest rate 4.06% $ 2,015,097 $ - $ (2,015,097) $ - May 1, 2003; interest rate 4.39% - 2,056,003 2,056,003 Total bond anticipation notes due $ 2,015,097 $ 2,056,003 $ (2,015,097) $ 2,056,003 7. Contributed Capital: The changes in contributed capital for the year ended June 30, 2002, were as follows: Balance - Beginning of year $ 50,443,000 Contributions from customers - cash 619,212 Contributions from customers - non-cash 2,655,790 Transfer of depreciation on certain contributed fixed assets from retained earnings (641,544) Balance - End of year $ 53,076,458 8. Operating Transfers: Transfers Transfers - In Out Transfers per Statement of Revenues, Expenditures, Changes in Fund Balances - Budget and Actual - All Governmental Funds Types $ 2,779,208 $ 5,734,449 Transfers in from proprietary funds considered to be service charges revenue (637,736) - Transfers to proprietary funds considered to be administrative expenses - (1,641,065) Transfers to General Fund considered to be administrative expenses to transferring funds and service charges revenue to the Genreal Fund - (1,951,912) Transfers per Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Total $ 2,141,472 $ 2,141,472 19 • • City of Tigard, Oregon • Notes to General Purpose Financial Statements • • 9. Retirement Plans: • The City contributes to retirement plans on behalf of all eligible employees. At June 30, • 2002, the following employee groups were covered by the following retirement plans: • Group Retirement Plan 41 Management/Professional Staff (Nonunion) International City Managers Association • Retirement Corp. (ICMARC) Money • Purchase Plan • • Oregon Public Employees Union Employees ICMARC Money Purchase Plan Tigard Police Officers State of Oregon Public Employees Retirement System (PERS) • Oregon Public Employees Retirement Systems (OPERS) • Plan Description • The City is a participating employer in the Oregon Public Employees Retirement System • (OPERS), an agent multiple-employer public employee retirement system, established • under Oregon Revised Statutes 238.600, that acts as a common investment and • administrative agent for public employers in the State of Oregon. Substantially all full-time • police employees are participants in PERS. The plan provides retirement, death and disability benefits to participants or their beneficiaries. Benefits are established by State • Statute, and employer contributions are made at an actuarially determined rate as adopted • by the OPERS Retirement Board. OPERS, a component unit of the State of Oregon, issues • a comprehensive annual financial report, which may be obtained by writing to Oregon Public • Employees Retirement System, P.O. Box 23700, Tigard, Oregon 97281-3700. • Funding Policy • • The City's annual required contribution rate, as of July 1, 1999, is 6.99% of covered payroll. • The next scheduled valuation date is December 31, 2002. • The City is required by State Statute to contribute its current employer rate of 6.99% of • covered wages plus employee contributions of 6%. • Beginning January 1, 2002 the City began paying the 6% employee contribution as well as • the City's required 6.99% of covered payroll. • • Annual Pension Cost • Because all OPERS participating employers are required by law to submit the contributions • as adopted by the OPERS Retirement Board, there is no net pension obligation to report • and the annual contributions are equal to the annual pension cost. For the fiscal years ended June 30, 2002, 2001 and 2000, the City's annual pension cost was approximately • $279,000, $211,000 and $202,000, respectively. The City's pension liability and the annual required contribution rate were determined as part • of the December 31, 1999 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. • • 20 • • • City of Tigard, Oregon Notes to General Purpose Financial Statements 9. Retirement Plans, Continued: The following table presents a schedule of funding progress for the City's multiple-employer pension plan: Overfunded Actuarial Overfunded Liability as a 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% The City is expecting an increase in the PERS rate based upon new actuarial information to be provided pursuant to the yet-to-be-issued December 31, 2001 Actuarial Valuation. 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 $808,379 for the year ended June 30, 2002. Covered payroll was $7,348,900, for the year ended June 30, 2002. Contributions as a percentage of payroll was 11 percent for all eligible employees participating in the plans. Deferred Compensation Plans The City offers certain employees deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans permit employees to defer a portion of their salary until future years. Contributions for the plans are made to fiduciaries who hold the funds in trust for the plans' participants. The Deferred Compensation Plans are not considered City funds and are excluded from the Combined Balance Sheets. 21 • • City of Tigard, Oregon • Notes to General Purpose Financial Statements • • 10. 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 • 21.4 percent of sewer service charges collected and 20 percent of connection charges • collected, in accordance with an agreement between the City and Clean Water Services. • Payments of $5,317,342 were made to Clean Water Services during 2002 under this • agreement. • The City has a similar agreement with the Regional Surface Water Management Agency, • which is an affiliate of Clean Water Services, for storm water systems. Payments made to • the Agency during 2002 under the agreement were $359,933. • The net amount retained by the City is reported as revenue in the Enterprise Funds in the • Combined Statement of Revenues, Expenses and Changes in Retained Earnings-All • Proprietary Funds. Revenues are reported net because the City acts in a fiduciary capacity • on behalf of Clean Water Services. • 11. Segment Information for Enterprise Funds: • • The City's Sewer Fund and Storm Drainage Fund account for the acquisition, • operation, and maintenance of sewer and storm drainage systems which are supported by • user 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, 2002, is as follows: • Sanitary Storm • Sewer Sewer Water • Fund Fund Fund Total • Operating revenue $ 1,319,135 $ 1,078,641 $ 5,098,467 $ 7,496,243 • Depreciation 373,206 325,960 930,735 1,629,901 • Operating income 565,680 265,527 171,267 1,002,474 • Net income (loss) 599,433 (102,768) (533,547) (36,882) • Current capital contributions 1,047,258 1,134,587 473,946 2,655,791 • Fixed asset additions 456,193 93,895 807,956 1,358,044 • Net working capital 4,498,145 1,581,280 10,268,827 16,348,252 • Total assets 18,936,417 12,196,082 39,254,307 70,386,806 • Total equity 18,178,627 12,042,037 38,685,639 68,906,303 • 12. Constitutional Property Tax Limitations: • • In November 1990, the Oregon voters approved a State constitutional limit on property taxes • for schools and nonschool government operations. Under the provisions of the limitation, • tax revenues are separated into those for the public school system and those for local . government operations other than the public school system. The limitation specifies $10.00 is the maximum allowable tax for each $1,000 of property real market value imposed by • local governments other than the public school system. • The limitation applies to all state and local taxes and charges on property except for the • following: • • 1. Incurred charges for goods or services received at the owner's option; • • 2. assessments for capital construction that provide a special benefit to the property • and that can be paid off over at lease ten years; • 22 • • City of Tigard, Oregon Notes to General Purpose Financial Statements 12. Constitutional Property Tax Limitations, Continued: 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. 13. Prior Period Adjustment: During the year ended June 30, 2002, management determined that proceeds from the sale of certain short-term bond anticipation notes were recorded in error as revenue in the Bancroft Bond Debt Service Fund in previous years. To correct the error the beginning fund balance and deferred revenue-assessments for this fund were adjusted. 14. Overexpenditures of Appropriations: For the Year ended June 30, 2002, the following fund had an over expenditure of appropriations: Central Service Fund General Government $11,736 The Fleet / Property Management Fund has a deficit retained earnings balance of $10,390. The budgetary fund balance of this fund is positive. 15. Amount Available for Retirement of General Long-term Debt: Due to the prior period adjustment discussed in Note 13, the amount available for retirement of general long-term debt shown in the General Long-term Debt Account Group on the Combined Balance Sheet is the ending fund balance for the General Obligation Debt Service Fund only. 16. 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. 17. Subsequent Events: A bond measure was passed on May 21, 2002 for the purpose of building a new City library. Bonds were sold on December 4, 2002 to the Oregon Economic and Community Development Department in the amount of $13.0 million at an interest rate of 4.21 % 23 • • • • • • • A • • • • • • • • • • • • • s • • City of Tigard, Oregon • • • • • • • • • • • / 1 Supplementary Data • • • • • • • • • • • • 0 L L R .1.+ v General Fund This fund accounts for the financial operations of the City which are not accounted for in any other fund. Principal resources are property taxes, franchise fees, intergovernmental revenues, and licenses and permits. Expenditures in the General Fund are made primarily for police protection, community development and library services. • • CITY OF TIGARD, OREGON • GENERALFUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • for the fiscal year ended June 30, 2002 • • • • • • Variance • Budgeted Amounts Actual Favorable • REVENUES: Original Final Amounts (Unfavorable) • • Taxes $ 8,430,990 $ 8,430,990 $ 8,782,517 $ 351,527 Franchise fees 2,306,860 2,306,860 2,674,389 367,529 • Licenses and permits 40,695 40,695 41,937 1,242 • Intergovernmental revenues 2,398,900 2,415,100 2,490,851 757751 • Charges for services 329,001 329,001 344,561 15,560 • Fines and forfeitures 683,750 683,750 415,760 (267,990) Interest earnings 341,500 341,500 270,006 (71,494) • Miscellaneous 76,250 76,250 51,001 (25,249) • • Total revenues 14,607,946 14,624,146 15,071,022 446,876 • EXPENDITURES: • • Community services 9,065,313 9,134,516 8,372,801 761,715 • Public works 2,374,907 2,374,907 2,197,835 177,072 • Development services 2,532,431 2,532,431 2,260,205 272,226 • Policy and administration 385,738 398,345 309,559 88,786 • Contingency 1,000,000 979,393 - 979,393 • Capital projects 410,000 410,000 55,942 354,058 • Total expenditures 15,768,389 15,829,592 13,196,342 2,633,250 • • Change in fund balance • before other financing sources (uses) (1,160,443) (1,205,446) 1,874,680 3,080,126 • • Other financing sources (uses): • Operating transfer in 2,231,920 2,231,920 1,946,320 (285,600) • Operating transfer out (3,661,011) (3,616,008) (3,343,912) 272,096 • Total other financing sources (uses) (1,429,091) (1,384,088) (1,397,592) (13,504) • • Change in fund balance (2,589,534) (2,589,534) 477,088 3,066,622 UNDESIGNATED, UNRESERVED - • FUND BALANCE BEGINNING OF YEAR 6,082,150 6,082,150 7,317,984 1,235,834 • UNDESIGNATED, UNRESERVED - • FUND BALANCE END OF YEAR $ 3,492,616 $ 3,492,616 $ 7,795,072 $ 4,302,456 • • • • 24 • • • • Special Revenue Funds The Special Revenue Funds account for revenue derived from specific taxes or other earmarked revenue sources which are legally restricted to finance particular functions or activities. Funds included in the fund type are: • Criminal Forfeiture Fund • State Gas Tax Fund • Parks SDC Fund • County Gas Tax Fund • Traffic Impact Fund • Electrical Inspection Fund • Underground Utility Fund • Workers' Compensation Fund • Building Fund • Urban Services Traffic Impact Fee Fund • Urban Services Fund • Tree Replacement Fund • Economic Improvement District Fund CITY OF TIGARD, OREGON SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2002 State County Urban Services Economic Criminal Gas Parks Gas Traffic Electrical Underground Workers' Traffic Urban Tree Improvement Forfeiture Tax SDC Tax Impact Inspection Utility Compensation Building Impact Fee Services Replacement District Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total ASSETS: Cash and investments $ 68,538 $ 980,448 $ 728,601 $ 65,410 $ 2,098,915 $ 126,810 $ 399,822 $ 487,271 $ 720,558 $ 1,411,985 $ 814,267 $ 222,663 $ - $ 6,125,288 Accounts receivable - - 345,006 1,225,451 - - - - 8,826 - 1,579,283 Assessment liens receivable 121,328 121,328 Total assets $ 68,538 $ 980,448 $ 1,073,607 $ 65,410 $ 3,445,694 $ 126,810 $ 399,822 $ 487,271 $ 720,558 $ 1,411,985 $ 823,093 $ 222,663 $ $ 9,825,899 LIABILITIES AND FUND BALANCES: LIABILITIES: Accounts payable $ - $ 40,624 $ 247,362 $ - $ 42,404 $ - $ 22,868 $ - $ 38,063 $ - $ 2,716 $ - $ - $ 394,037 Customer deposits 272,012 - 11,018 - - 89,766 372,796 Deferred revenues 1,208,335 1,208,335 Total liabilities - 312,636 247,362 - 1,250,739 11,018 22,868 - 38,063 - 92,462 - - 1,975,168 FUND BALANCE UNRESERVED 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 N Total liabilities and fund balances $ 68,538 $ 980,448 $ 1,073,607 $ 65,410 $ 3,445,694 126 810 $ 399,822 487 271 720 558 $ 1,411985 823,093 $ 222,663 $ - $ 9,825,899 *000 • • • 0090 • • 010090 • 00 0 0000000000 0 4000 0404000000 000000100 000 CITY OF TIGARD, OREGON SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE for the fiscal year ended June 30, 2002 State County Urban Services Economic Criminal Gas Parks Gas Traffic Electrical Underground Workers' Traffic Urban Tree Improvement Forfeiture Tax SDC Tax Impact Inspection Utility Compensation Building Impact Fee Services Replacement District Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES: Licenses and permits $ - $ - $ 370,947 $ - $ 718,727 $ 170,263 $ - $ - $ 983,373 $ 218,613 $ 639,261 $ 44,839 $ - $ 3,146,023 Intergovernmental revenues 1,752,644 250,000 160,369 - 2,163,013 Charges for services - 10,042 - - - - 61,822 - 8,360 - 18,634 - - 98,858 Interest earnings 1,638 26,831 20,479 2,169 93,911 5,288 12,713 16,346 25,707 45,284 24,946 7,562 - 282,874 Miscellaneous revenues 43 6,445 106,067 - 26,824 728 - - - 140,107 Total revenues 1,681 1,795,962 641,426 162,538 918,705 175,551 74,535 43,170 1,018,168 263,897 682,641 52,401 - 5,830,876 EXPENDITURES: Community services - - - - - - - - Public works - - - - - - - - Development services - 392,941 - - - - - - 1,076,542 - - - - 1,469,483 Policy and administration - - - - - - - - - ' General government - - - - - - - - - - Contingency - - Capital projects - 198,630 1,258,885 - 912,873 - 22,867 - - - 7,054 11,916 2,412,227 N Total expenditures - 591,571 1,258,885 - 912,873 - 22,867 - 1,076,542 7,054 11,916 3,881,710 0) Changes in fund balance before other financing sources 1,681 1,204,391 (617,459) 162,538 5,832 175,551 51,668 43,170 (58,374) 263,897 675,787 40,485 - 1,949,166 Other financing sources (uses): Proceeds from long-term note - - 781,073 - - - - - - - - - 781,073 Operating transfer in - - - - - - - - 427,891 - - - - 427,891 Operating transfer out (2,000) (975,020) - (167,969) (98,009) (219,193) - - (480,634) (14,840) (430,572) (2,300) (2,390,537) Changes in fund balance (319) 229,370 163,614 (5,431) (92,177) (43,642) 51,668 43,170 (111,117) 249,057 245,215 38,185 - 767,593 FUND BALANCE - beginning of year 68,857 438,441 662,631 70,841 2,287,132 159,434 325,286 444,101 793,612 1,162,928 485,396 184,478 7,083,138 FUND BALANCE - end 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 • • CITY OF TIGARD, OREGON • CRIMINAL FORFEITURE FUND • SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL • for the fiscal year ended June 30, 2002 • • • • • • • Variance • Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) • • REVENUES: • Interest earnings $ 2,900 $ 2,900 $ 1,638 $ (1,262) • Miscellaneous - - 43 43 • • Total revenues 2,900 2,900 1,681 (1,219) • • Other financing (uses): Operating transfer out (56,420) (56,420) (2,000) 54,420 Change in fund balance (53,520) (53,520) (319) 53,201 • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 53,520 53,520 68,857 15,337 • • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ 68,538 $ 68,538 • • • • • • • • • • • • • • • • • • • • • 27 • • • CITY OF TIGARD, OREGON STATE GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: O State gas tax $ 1,650,588 $ 1,650,588 $ 1,752,644 $ 102,056 Street lighting fees 8,000.00 8,000 10,042 2,042 Interest earnings 22,700.00 22,700 26,831 4,131 • Miscellaneous - - 6,445 6,445 Total revenues 1,681,288 1,681,288 1,795,962 114,674 O EXPENDITURES: Development services 505,000 505,000 392,941 112,059 Contingency 19,800 19,800 - 19,800 Capital projects 207,000 207,000 198,630 8,370 Total expenditures 731,800 731,800 591,571 140,229 O Change in fund balance before other financing (uses) 949,488 949,488 1,204,391 254,903 Other financing (uses): Operating transfer out (1,070,410) (1,070,410) (975,020) 95,390 • Change in fund balance (120,922) (120,922) 229,370 350,292 • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 149,452 149,452 438,441 288,989 • • UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 28,530 $ 28,530 $ 667,812 $ 639,282 • • • • • • • • • • 28 • • • • CITY OF TIGARD, OREGON • PARKS SDC FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • for the fiscal year ended June 30, 2002 • • • • • • • Variance • Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) • • REVENUES: • System development charges $ 502,322 $ 502,322 $ 370,947 $ (131,375) • Intergovernmental revenues 250,000 250,000 250,000 - • Interest earnings 9,600 9,600 20,479 10,879 • Total revenues 761,922 761,922 641,426 (120,496) • • EXPENDITURES: Contingency 80,000 346,895 - 346,895 Capital projects 821,764 2,503,611 1,258,885 1,244,726 • Total expenditures 901,764 2,850,506 1,258,885 1,591,621 • • Change in fund balance • before other financing (uses) (139,842) (2,088,584) (617,459) 1,471,125 • Other financing sources: • Proceeds from long-term note 1,431,847 1,431,847 781,073 (650,774) • Total other financing sources 1,431,847 1,431,847 781,073 (650,774) • • Change in fund balance 1,292,005 (656,737) 163,614 820,351 • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 395,331 662,226 662,631 405 • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 1,687,336 $ 5,489 $ 826,245 $ 820,756 • • • • • • • • • • 29 • • CITY OF TIGARD, OREGON COUNTY GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: County gas taxes $ 174,580 $ 174,580 $ 160,369 $ (14,211) Interest earnings 2,000 2,000 2,169 169 Total revenues 176,580 176,580 162,538 (14,042) EXPENDITURES: Contingency 10,000 10,000 - 10,000 Change in fund balance before other financing (uses) 166,580 166,580 162,538 (4,042) Other financing (uses): Operating transfer out (184,448) (184,448) (167,969) 16,479 Change in fund balance (17,868) (17,868) (5,431) 12,437 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 37,068 37,068 70,841 33,773 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 19,200 $ 19,200 $ 65,410 $ 46,210 • • • • • • • • • • • • 30 • • • • CITY OF TIGARD, OREGON TRAFFIC IMPACT FEE FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • for the fiscal year ended June 30, 2002 • • • • • Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: • • Federal Grants $ 270,000 $ 270,000 $ - $ (270,000) System development charges 993,700 993,700 718,727 (274,973) • Interest earnings 109,500 109,500 93,911 (15,589) Miscellaneous - - 106,067 106,067 • Total revenues 1,373,200 1,373,200 918,705 (454,495) • • EXPENDITURES: Contingency 300,000 250,000 - 250,000 Capital projects 2,941,000 2,991,000 912,873 2,078,127 • Total expenditures 3,241,000 3,241,000 912,873 2,328,127 • • Change in fund balance before other financing (uses) (1,867,800) (1,867,800) 5,832 1,873,632 • Other financing (uses): • Operating transfer out (106,466) (106,466) (98,009) 8,457 • Change in fund balance (1,974,266) (1,974,266) (92,177) 1,882,089 • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 1,990,478 1,990,478 2,287,132 296,654 • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 16,212 $ 16,212 $ 2,194,955 $ 2,178,743 • • • • • • 31 CITY OF TIGARD, OREGON ELECTRICAL INSPECTION FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Electrical permit fees $ 184,900 $ 184,900 $ 163,722 $ (21,178) Electrical plan check fees 9,030 9,030 6,541 (2,489) Interest earnings 6,200 6,200 5,288 (913) Total revenues 200,130 200,130 175,551 (24,579) EXPENDITURES: Contingency 33,000 33,000 - 33,000 Change in fund balance before other financing (uses) 167,130 167,130 175,551 8,421 Other financing (uses): Operating transfer out (223,998) (223,998) (219,193) 4,805 Change in fund balance (56,868) (56,868) (43,642) 13,226 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 160,000 160,000 159,434 (566) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 103,132 $ 103,132 $ 115,792 $ 12,660 • • • • • 32 • • • CITY OF TIGARD, OREGON • UNDERGROUND UTILITY FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 s • • • • • Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: • Charges for services $ 58,000 $ 58,000 $ 61,822 $ 3,822 • Interest earnings 17,840 17,840 12,713 (5,127) • Miscellaneous 10,000 10,000 - (10,000) • Total revenues 85,840 85,840 74,535 (11,305) • EXPENDITURES: • Contingency 6,000 - - - • Capital projects 40,000 85,547 22,867 62,680 • Total expenditures 46,000 85,547 22,867 62,680 • Change in fund balance 39,840 293 51,668 51,375 UNDESIGNATED, UNRESERVED • • • FUND BALANCE, BEGINNING OF YEAR 296,962 324,969 325,286 317 UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 336,802 $ 325,262 $ 376,954 $ 51,692 • • • • • • • • • • 33 • CITY OF TIGARD, OREGON WORKERS' COMPENSATION FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Interest earnings $ 23,300 $ 23,300 $ 16,346 $ (6,954) Miscellaneous 45,000 45,000 26,824 (18,176) Total revenues 68,300 68,300 43,170 (25,130) UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 423,102 423,102 444,101 20,999 UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 491,402 $ 491,402 $ 487,271 $ (4,131) • • • • • • • • • • • • 34 • • • • CITY OF TIGARD, OREGON BUILDING FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • for the fiscal year ended June 30, 2002 • • • • Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) • REVENUES: • • Licenses and permits $1,062,030 $1,062,030 $ 983,373 $ (78,657) Charges for services 9,690 9,690 8,360 (1,330) . Interest earnings 29,700 29,700 25,707 (3,993) . Miscellaneous - - 728 728 • Total revenues 1,101,420 1,101,420 1,018,168 (83,252) • EXPENDITURES: Development services 1,075,644 1,075,644 1,076,542 (898) Contingency 250,000 250,000 - 250,000 • Total expenditures 1,325,644 1,325,644 1,076,542 249,102 • Change in fund balance • before other financing sources (uses) (224,224) (224,224) (58,374) 165,850 Other financing sources (uses): • Operating transfer in 427,891 427,891 427,891 - Operating transfer out (507,414) (507,414) (480,634) 26,780 • Total other financing sources (uses) (79,523) (79,523) (52,743) 26,780 Change in fund balance (303,747) (303,747) (111,117) 192,630 UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 539,956 539,956 793,612 253,656 • UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 236,209 $ 236,209 $ 682,495 $ 446,286 • • • • • • • 35 • • 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, 2002 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: System development charges $ 357,200 $ 357,200 $ 218,613 $ (138,587) Interest earnings 55,400 55,400 45,284 (10,116) Total revenues 412,600 412,600 263,897 (148,703) EXPENDITURES: Contingency 6,200 6,200 - 6,200 Change in fund balance before other financing (uses) 406,400 406,400 263,897 (142,503) Other financing (uses): Operating transfer out (46,751) (46,751) (14,840) 31,911 Change in fund balance 359,649 359,649 249,057 (110,592) UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 1,006,705 1,006,705 1,162,928 156,223 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 1,366,354 $ 1,366,354 $ 1,411,985 $ 45,631 • • • 36 • • • CITY OF TIGARD, OREGON • URBAN SERVICES FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 • • • • Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: • • Intergovernmental revenues $ 250,000 $ 250,000 $ - $ (250,000) Licenses and permits 478,494 478,494 639,261 160,767 Charges for services 4,750 4,750 18,634 13,884 • Interest earnings 8,500 8,500 24,946 16,446 . Total revenues 741,744 741,744 682,841 (58,903) • EXPENDITURES: Contingency 94,500 94,500 - 94,500 Capital projects 200,000 200,000 7,054 192,946 • Total expenditures 294,500 294,500 7,054 287,446 I• Change in fund balance • before other financing (uses) 447,244 447,244 675,787 228,543 • Other financing (uses): Operating transfer out (446,926) (446,926) (430,572) 16,354 • Change in fund balance 318 318 245,215 244,897 • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 153,997 153,997 485,396 331,399 UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 154,315 $ 154,315 $ 730,611 $ 576,296 • • • • • • • • • • • 37 • i CITY OF TIGARD, OREGON TREE REPLACEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Tree replacement revenue $ 12,000 $ 12,000 $ 44,839 $ 32,839 Interest earnings 9,800 9,800 7,562 (2,238) Total revenues 21,800 21,800 52,401 30,601 EXPENDITURES: Contingency 7,800 7,800 - 7,800 Capital projects 50,000 50,000 11,916 38,084 Total expenditures 57,800 57,800 11,916 45,884 Change in fund balance before other financing (uses) (36,000) (36,000) 40,485 76,485 Other financing (uses): Operating transfer out (2,300) (2,300) (2,300) - Change in fund balance (38,300) (38,300) 38,185 76,485 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 178,140 178,140 184,478 6,338 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 139,840 $ 139,840 $ 222,663 $ 82,823 • 38 • • CITY OF TIGARD, OREGON ECONOMIC IMPROVEMENT DISTRICT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL e. for the fiscal year ended June 30, 2002 • • Variance Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) REVENUES: . BID/EID Assessments $ 54,208 $ 54,208 $ - $ (54,208) • • Change in fund balance before other financing (uses) 54,208 54,208 - (54,208) • Other financing (uses): Operating transfer out (54,208) (54,208) - 54,208 • S Change in fund balance - - - - • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR - - - - f UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ - $ - • • • • • • • • • • • • • 39 • Debt Service Funds The Debt Service Funds account for the payment of debt principal and interest. The City's debt service funds consist of • General Obligation Bond Debt Service Fund • Bancroft Bond Debt Service Fund Principal sources of revenues are property taxes for the General Obligation Bond Debt Service Fund and special assessment collections and interest earnings for the Bancroft Bond Debt Service Fund. i • • • • CITY OF TIGARD, OREGON DEBT SERVICE FUNDS • COMBINING BALANCE SHEET • June 30, 2002 • • • • • General t Obligation Bancroft • Debt Bond Debt Service Fund Service Fund Total ASSETS: Cash and investments $ 47,370 $ 2,092,454 $ 2,139,824 • Property taxes receivable 13,501 - 13,501 • Assessment liens receivable - 4,500,060 4,500,060 • Total assets $ 60,871 $ 6,592,514 $ 6,653,385 . LIABILITIES AND FUND BALANCES: • • LIABILITIES: • Deferred revenues: Property taxes $ 9,627 $ - $ 9,627 Assessment liens - 2,430,368 2,430,368 . Accrued interest on delinquent • assessments - 2,629 2,629 Bond anticipation notes payable - 2,056,003 2,056,003 • • Total liabilities 9,627 4,489,000 4,498,627 FUND BALANCES - • DESIGNATED FOR DEBT SERVICE 51,244 2,103,514 2,154,758 • Total liabilities and • fund balances $ 60,871 $ 6,592,514 $ 6,653,385 • • • • • • • • • • i • • • • 40 • • CITY OF TIGARD, OREGON DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES for the fiscal year ended June 30, 2002 General Obligation Bancroft Debt Bond Debt Service Fund Service Fund Total REVENUES: Taxes $ 235,841 $ - $ 235,841 Collection of Bonded Assessments - 343,642 343,642 Interest earnings 5,380 23,096 28,476 Miscellaneous earnings - 83,946 83,946 Total revenues 241,221 450,684 691,905 EXPENDITURES: Debt service 246,988 2,538,416 2,785,404 Change in fund balance before other financing (uses): (5,767) (2,087,732) (2,093,499) Other financing (uses): Proceeds from issuance of bond anticipation notes - 3,365,972 3,365,972 Change in fund balance (5,767) 1,278,240 1,272,473 DESIGNATED - FUND BALANCE (DEFICIT) BEGINNING OF YEAR 57,011 (463,078) (406,067) PRIOR PERIOD ADJUSTMENT - 1,288,352 1,288,352 DESIGNATED FUND BALANCE, BEGINNING OF YEAR - AS RESTATED 57,011 825,274 882,285 DESIGNATED FUND BALANCE, END OF YEAR $ 51,244 $ 2,103,514 $ 2,154,758 • • • • • • • 41 • • CITY OF TIGARD, OREGON • GENERAL OBLIGATION DEBT SERVICE FUND r SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 • • • • • r 1 Variance Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) REVENUES: • Taxes $ 220,564 $ 220,564 $ 235,841 $ 15,277 • Interest earnings 6,000 6,000 5,380 (620) • Total revenues 226,564 226,564 241,221 14,657 EXPENDITURES: • Debt service 246,988 246,988 246,988 - Change in fund balance (20,424) (20,424) (5,767) 14,657 S • DESIGNATED FUND BALANCE, BEGINNING OF YEAR 40,424 40,424 57,011 16,587 • DESIGNATED FUND BALANCE, END OF YEAR $ 20,000 $ 20,000 $ 51,244 $ 31,244 • • • • • • • • • • • • • • • • • 42 • • CITY OF TIGARD, OREGON BANCROFT BOND DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Collection of bonded assessments $ 228,356 $ 228,356 $ 343,642 $ 115,286 Interest earnings 115,542 115,542 23,096 (92,446) Miscellaneous - - 83,946 83,946 Total revenues 343,898 343,898 450,684 106,786 EXPENDITURES: Debt service 4,515,222 4,515,222 2,538,416 1,976,806 Change in fund balance before other financing sources (4,171,324) (4,171,324) (2,087,732) 2,083,592 Other financing sources: Proceeds from issuance of bond anticipation notes 4,450,000 4,450,000 3,365,972 (1,084,028) Change in fund balance 278,676 278,676 1,278,240 999,564 DESIGNATED - FUND BALANCE, BEGINNING OF YEAR - AS PREVIOUSLY STATED 217,238 217,238 1,552,019 1,334,781 PRIOR PERIOD ADJUSTMENT (726,745) (726,745) DESIGNATED FUND BALANCE, BEGINNING OF YEAR - AS RESTATED 825,274 825,274 DESIGNATED FUND BALANCE, END OF YEAR $ 495,914 $ 495,914 $ 2,103,514 $ 1,824,838 NOTE: * Prior period adjustment for double recording of bancroft bond proceeds in previous years. 43 r S City of Tigard, Oregon a S 1 Capital Projects Funds The Capital Projects Funds are used to account for the construction of major capital projects and include: 69th Ave Local Improvement District Fund - funded by proceeds from the sale of bond anticipation notes and other short-term debt. • Dartmouth Local Improvement District Fund- funded by proceeds from the sale of bond anticipation notes and other short-term debt. • Metro Greenspaces Fund - accounts for monies received from Washington County to be used for greenspace property acquisition and improvements. • Park Levy Improvement Fund - Revenue from Certificates of Participation may only be used to fund specific park system improvements. The Park Levy ended in 1994/95. Continuing delinquent collections provide limited funds for ongoing improvements. • Facility Fund - accounts for monies set aside for future City facility improvements. • • • • • r • • • • • • CITY OF TIGARD, OREGON • CAPITAL PROJECTS FUNDS • COMBINING BALANCE SHEET • June 30, 2002 1 • • • • 69th Avenue Dartmouth • Local Local • Improvement Improvement Metro Park Levy District District Greenspaces Improvement Facility • Fund Fund Fund Fund Fund Total • ASSETS: • Cash and investments $ 52,668 $ 8,816 $ 56,464 $ 122,805 $ 1,819,871 $ 2,060,624 • • LIABILITIES AND FUND BALANCES: • LIABILITIES: • Accounts payable and accrued liabilities $ 5,207 $ - $ $ - $ 4,139 $ 9,346 Total Liabilities 5,207 - - - 4,139 9,346 S • FUND BALANCES - UNRESERVED 47,461 8,816 56,464 122,805 1,815,732 2,051,278 Total liabilities and fund balances $ 52,668 $ 8,816 $ 56,464 $ 122,805 $ 1,819,871 $ 2,060,624 • i • • • • • • • • • • • • • • • • • • • • ! • 44 • • • CITY OF TIGARD, OREGON CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE for the fiscal year ended June 30, 2002 69th Avenue Dartmouth Local Local Improvement Improvement Metro Park Levy District District Greenspaces Improvement Facility Fund Fund Fund Fund Fund Total REVENUES: Property taxes $ $ $ - $ 2 $ $ 2 Intergovernmental revenues 124,586 - 124,586 Interest earnings 1,216 298 893 4,156 66,039 72,602 Miscellaneous 54,329 - 750 10,000 2,106 67,185 Total revenues 55,545 298 126,229 14,158 68,145 264,375 EXPENDITURES: Capital projects 41,041 - 69,765 7,505 113,595 231,906 Change in fund balance before other financing sources 14,504 298 56,464 6,653 (45,450) 32,469 Other financing sources: Operating transfers in - - - - 404,997 404,997 Change in fund balance 14,504 298 56,464 6,653 359,547 437,466 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 32,957 8,518 - 116,152 1,456,185 1,613,812 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 47,461 $ 8,816 $ 56,464 $ 122,805 $ 1,815,732 $ 2,051,278 • • 45 • CITY OF TIGARD, OREGON E 69th AVE. LOCAL IMPROVEMENT DISTRICT FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 • • • • • Variance • Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) REVENUES: • Interest earnings $ - $ - $ 1,216 $ 1,216 • Miscellaneous - - 54,329 54,329 • Total revenues - - 55,545 55,545 • EXPENDITURES: e Capital projects 50,000 50,000 41,041 8,959 Change in fund balance (50,000) (50,000) 14,504 64,504 S • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 50,000 50,000 32,957 (17,043) • • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ 47,461 $ 47,461 • • • • • • • • • • • • • • • • • • 46 • • • CITY OF TIGARD, OREGON DARTMOUTH LOCAL IMPROVEMENT DISTRICT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Interest Earnings $ - $ - $ 298 $ 298 EXPENDITURES: Capital projects 10,000 10,000 - 10,000 Change in fund balance (10,000) (10,000) 298 10,298 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 10,000 10,000 8,518 (1,482) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ 8,816 $ 8,816 47 • CITY OF TIGARD, OREGON METRO GREENSPACES FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 • • • • • • Variance • Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) REVENUES: Intergovernmental revenues $ 131,046 $ 131,046 $ 124,586 $ (6,460) • Interest earnings - - 893 893 • Miscellaneous - - 750 750 • Total revenues 131,046 131,046 126,229 (5,567) EXPENDITURES: Capital projects 131,046 131,046 69,765 61,281 • • Change in fund balance - - 56,464 55,714 • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR - - - - • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ 56,464 $ 55,714 • • • • • • • • • • • • • • • • • • • 48 • • • CITY OF TIGARD, OREGON PARK LEVY IMPROVEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Property taxes $ - $ - $ 2 $ 2 Interest earnings - - 4,156 4,156 Miscellaneous - - 10,000 10,000 Total revenues - - 14,158 4,158 EXPENDITURES: Capital projects 10,000 10,000 7,505 2,495 Change in fund balance (10,000) (10,000) 6,653 6,653 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 10,000 10,000 116,152 106,152 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ 122,805 $ 112,805 • • • • • • • • • • • • • • 49 • • • • • CITY OF TIGARD, OREGON FACILITY FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 • • • • • Variance Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) REVENUES: Interest earnings $ 78,100 $ 78,100 $ 66,039 $ (12,061) • Miscellaneous - - 2,106 2,106 • Total revenues 78,100 78,100 68,145 (9,955) • EXPENDITURES: • • Contingency 112,500 112,500 - 112,500 • Capital projects 750,000 750,000 113,595 636,405 • Total expenditures 862,500 862,500 113,595 748,905 • Change in fund balance ! before other financing sources (784,400) (784,400) (45,450) 738,950 • • Other financing sources: Operating transfer in 450,000 450,000 404,997 (45,003) • Change in fund balance (334,400) (334,400) 359,547 693,947 • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 1,420,859 1,420,859 1,456,185 35,326 • • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 1,086,459 $1,086,459 $1,815,732 $ 729,273 • • • • • • • • • • • • • 50 • • • Enterprise Funds The Sanitary Sewer and Storm Sewer Funds are used to account for the acquisition and maintenance of sewer and storm drainage facilities which are supported by user charges. The Water Fund is used to account for the operations and maintenance of the water system and is supported through user charges. For financial reporting and operating purposes, management considers the activities of the Storm Sewer Fund and the Water Fund as unitary enterprises. However, for budgetary and legal purposes these activities are accounted for in the funds listed below. Budget to actual schedules for these funds, prepared on the budgetary basis of accounting, are included in this subsection. Funds included in this fund category are: • Sanitary Sewer Fund • Storm Sewer Fund • Storm Sewer Fund • Water Quality/Quantity Fund • Water Fund • Water General Fund • Water SDC Fund • Water CIP Fund • • • • • • • CITY OF TIGARD, OREGON ENTERPRISE FUNDS • COMBINING BALANCE SHEET June 30, 2002 • • w • Sanitary Storm 01 Sewer Sewer Water • Fund Fund Fund Total • ASSETS: 1• • Current assets: • Cash and investments $ 4,586,278 $ 1,577,677 $ 10,069,132 $ 16,233,087 • Accounts receivable 669,657 157,648 663,977 1,491,282 Property taxes receivable - - 36 36 • Inventory - - 104,350 104,350 • • Total current assets 5,255,935 1,735,325 10,837,495 17,828,755 • Noncurrent assets: • Restricted cash and investments 3,604,032 993,089 656,873 5,253,994 • Fixed assets, net 10,076,450 9,467,668 27,759,939 47,304,057 • • Total noncurrent assets 13,680,482 10,460,757 28,416,812 52,558,051 • Total assets $ 18,936,417 $ 12,196,082 $ 39,254,307 $ 70,386,806 • • i LIABILITIES AND FUND EQUITY: • • Current liabilities: • Accounts payable and accrued • liabilities $ 736,272 $ 124,821 $ 398,115 $ 1,259,208 Customer deposits - 2,118 85,190 87,308 • Deferred revenue 342 - 94 436 • Accrued vacation payable 21,176 27,106 85,269 133,551 • Total liabilities 757,790 154,045 568,668 1,480,503 • • FUND EQUITY: • • Contributed capital 8,431,721 9,255,007 35,389,730 53,076,458 • Retained earnings 9,746,906 2,787,030 3,295,909 15,829,845 • Total fund equity 18,178,627 12,042,037 38,685,639 68,906,303 • • Total liabilities and fund equity $ 18,936,417 $ 12,196,082 $ 39,254,307 $ 70,386,806 • • 0 • • • • • • 51 • • • CITY OF TIGARD, OREGON ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS for the fiscal year ended June 30, 2002 Sanitary Storm Sewer Sewer Water Fund Fund Fund Total OPERATING REVENUES: Service charges $ 1,299,346 $ 1,078,641 $ 5,030,973 $ 7,408,960 Miscellaneous 19,789 - 67,494 87,283 Total operating revenues 1,319,135 1,078,641 5,098,467 7,496,243 OPERATING EXPENSES: Salaries and wages 296,448 384,018 875,878 1,556,344 Contracted services 9,561 2,080 121,583 133,224 General, administrative and other 74,240 101,056 2,999,004 3,174,300 Depreciation 373,206 325,960 930,735 1,629,901 Total operating expenses 753,455 813,114 4,927,200 6,493,769 Operating income 565,680 265,527 171,267 1,002,474 NONOPERATING REVENUE: Interest revenue 273,324 82,627 370,772 726,723 Income before operating transfers 839,004 348,154 542,039 1,729,197 OPERATING TRANSFERS: Operating transfers out 239,571 450,922 1,075,586 1,766,079 Net income (loss) 599,433 (102,768) (533,547) (36,882) RECLASSIFICATION: Add depreciation on fixed assets donated or acquired from capital contributions that reduces contributed capital 227,002 218,580 195,962 641,544 Increase (decrease) in retained earnings 826,435 115,812 (337,585) 604,662 RETAINED EARNINGS - beginning of year 8,920,471 2,671,218 3,633,494 15,225,183 RETAINED EARNINGS - end of year $ 9,746,906 $ 2,787,030 $ 3,295,909 $ 15,829,845 • • 52 • • • CITY OF TIGARD, OREGON ENTERPRISE FUNDS • COMBINING STATEMENT OF CASH FLOWS • for the fiscal year ended June 30, 2002 • • R Sanitary Storm Sewer Drainage Water Fund Fund Fund Total Cash flows from operating activities: • Operating income $ 565,680 $ 265,527 $ 171,267 $ 1,002,474 • Adjustments to reconcile operating income to net cash provided • by operating activities: • Depreciation Expense 373,206 325,960 930,735 1,629,901 Decrease in accounts receivable 194,997 47,271 212,186 454,454 • Decrease in inventory - - 15,205 15,205 • (Decrease) in customer deposits - - 7,247 7,247 Increase (decrease) in accounts payable • and accrued liabilities 16,479 58,273 (62,857) 11,895 Increase in accrued vacation payable 3,002 6,882 27,809 37,693 Operating transfers (uses) (239,571) (450,922) (1,075,586) (1,766,079) (Decrease) in deferred revenues - - (31) (31) • Net cash provided operating activities 913,793 252,991 225,975 1,392,759 • Cash flows from capital and related • financing activities: Capital contributions - - 619,212 619,212 Acquisition of fixed assets (456,193) (93,895) (807,956) (1,358,044) • Net cash (used by) capital • and related financing activities (456,193) (93,895) (188,744) (738,832) • • Cash flows from investing activities - • Interest earnings 273,324 82,627 370,772 726,723 • Net increase in cash • and cash equivalents 730,924 241,723 408,003 1,380,650 Cash and cash equivalents - beginning of year 7,459,386 2,329,043 10,318,002 20,106,431 • • Cash and cash equivalents - end of year $8,190,310 $ 2,570,766 $ 10,726,005 $ 21,487,081 • • Cash and cash equivalents are displayed on the balance sheet as follows: • Cash and investments $4,586,278 $ 1,577,677 $ 10,069,132 $ 16,233,087 Restricted cash and investments 3,604,032 993,089 656,873 5,253,994 • $8,190,310 $ 2,570,766 $ 10,726,005 $ 21,487,081 • Supplemental Schedule of Noncash • Capital and Related Financing Activities: Contributed sewer, storm and water lines $1,047,257 $ 1,134,587 $ 473,946 $ 2,655,790 • • • • 53 • • • CITY OF TIGARD, OREGON SANITARY SEWER FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Service charge $ 2,254,500 $ 2,254,500 $ 1,299,346 $ (955,154) Miscellaneous - - 19,789 19,789 Interest earnings 455,400 455,400 273,324 (182,076) Total revenues 2,709,900 2,709,900 1,592,459 (1,117,441) EXPENDITURES: Public works 456,791 456,791 377,247 79,544 Contingency 430,000 430,000 - 430,000 Capital projects 2,230,000 2,230,000 456,194 1,773,806 Total expenditures 3,116,791 3,116,791 833,441 2,283,350 Change in fund balance before other financing (uses) (406,891) (406,891) 759,018 1,165,909 Other financing (uses): Operating transfer out (260,659) (260,659) (239,571) 21,088 Change in fund balance (667,550) (667,550) 519,448 1,186,998 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 8,279,097 8,279,097 7,603,905 (675,192) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 7,611,547 $7,611,547 $8,123,353 $ 511,806 54 • • CITY OF TIGARD, OREGON • STORM SEWER FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • for the fiscal year ended June 30, 2002 • • • • • • • Variance • Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) • REVENUES: Service charge $1,462,860 $1,462,860 $1,040,459 $ (422,401) • Interest earnings 52,200 52,200 22,182 (30,018) • • Total revenues 1,515,060 1,515,060 1,062,641 (452,419) • • EXPENDITURES: • • Public works 452,530 452,530 450,741 1,789 • Contingency 182,000 182,000 - 182,000 • Capital projects 342,000 342,000 91,219 250,781 • Total expenditures 976,530 976,530 541,960 434,570 • • Change in fund balance • before other financing (uses) 538,530 538,530 520,681 (17,849) • Other financing (uses): • Operating transfer out (493,548) (493,548) (449,815) 43,733 • Change in fund balance 44,982 44,982 70,866 25,884 • • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 960,638 960,638 725,760 (234,878) • • UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 1,005,620 $ 1,005,620 $ 796,626 $ (208,994) • • • • • • • • • • • • • 55 • • • CITY OF TIGARD, OREGON WATER QUALITY/QUANTITY FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Service charge $ 96,400 $ 96,400 $ 38,182 $ (58,219) Interest earnings 60,500 60,500 60,446 (54) Total revenues 156,900 156,900 98,627 (58,273) EXPENDITURES: Contingency 53,000 23,624 - 23,624 Capital projects 403,500 432,876 32,208 400,668 Total expenditures 456,500 456,500 32,208 424,292 Change in fund balance before other financing (uses) (299,600) (299,600) 66,419 366,019 Other financing (uses): Operating transfer out (1,156) (1,156) (1,107) 49 Change in fund balance (300,756) (300,756) 65,312 366,068 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 1,149,297 1,149,297 1,739,536 590,239 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 848,541 $ 848,541 $1,804,848 $ 956,307 56 • • CITY OF TIGARD, OREGON WATER FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • for the fiscal year ended June 30, 2002 • • • • • • • Variance • Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) • REVENUES: Service charge $ 5,393,200 $ 5,393,200 $ 4,893,014 $ (500,186) • System development charges 230,865 230,865 185,863 (45,002) Interest earnings 291,000 291,000 192,268 (98,732) • Miscellaneous 40,400 40,400 66,766 26,366 • Total revenues 5,955,465 5,955,465 5,337,911 (617,554) • EXPENDITURES: • Public works 4,221,381 4,221,381 3,943,232 278,149 • Contingency 952,000 952,000 - 952,000 Capital projects 982,500 982,500 478,319 504,181 • • Total expenditures 6,155,881 6,155,881 4,421,551 1,734,330 • • Change in fund balance • before other financing (uses) (200,416) (200,416) 916,360 1,116,776 • Other financing (uses): Operating transfer out (1,161,105) (1,161,105) (1,075,586) 85,519 • • Change in fund balance (1,361,521) (1,361,521) (159,226) 1,202,295 • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 5,289,023 5,289,023 5,796,960 507,937 • • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 3,927,502 $ 3,927,502 $ 5,637,734 $ 1,710,232 • • • • • • • • • • • 57 • • • CITY OF TIGARD, OREGON WATER SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: System development charges $ 698,131 $ 698,131 $ 401,301 $ (296,830) Interest earnings 3,600 3,600 33,116 29,516 Miscellaneous - - 728 728 Total revenues 701,731 701,731 435,145 (266,586) EXPENDITURES: Contingency 88,200 88,200 - 88,200 Capital projects 588,000 588,000 26,828 561,172 Total expenditures 676,200 676,200 26,828 649,372 Change in fund balance 25,531 25,531 408,317 382,786 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 65,829 65,829 725,076 659,247 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 91,360 $ 91,360 $1,133,393 $ 1,042,033 58 • • CITY OF TIGARD, OREGON WATER CIP FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • for the fiscal year ended June 30, 2002 • • • • • • • Variance • Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) • REVENUES: System development charges $ - $ - $ 291,544 $ 291,544 • Interest earnings 219,200 219,200 145,388 (73,812) • Total revenues 219,200 219,200 436,932 217,732 • EXPENDITURES: • • Contingency 73,000 73,000 - 73,000 • Capital projects 485,500 485,500 449,773 35,727 • Total expenditures 558,500 558,500 449,773 108,727 • • Change in fund balance (339,300) (339,300) (12,842) 326,458 • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 3,985,979 3,985,979 4,133,125 147,146 • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 3,646,679 $ 3,646,679 $ 4,120,283 $ 473,604 • • • • • • • • • • • • • • • • • 59 • • Internal Service Funds The Internal Service Funds are used to account for the revenues and expenditures of the central administrative functions and the Fleet Management and Property Management Divisions of the City. The resources for these funds are transfers from other City funds. These transfers are based on a cost allocation plan that is revised each year based on anticipated use or benefits. Funds included in the fund type: • Central Services Fund • Fleet / Property Management Fund • • CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS • COMBINING BALANCE SHEET JUNE 30, 2002 • • • • Central Fleet/Property • Services Management Fund Fund Total ASSETS: • • Current assets: • Cash and investments $ 535,148 $ 29,772 $ 564,920 Accounts Receivable 2,807 - 2,807 Inventory 4,824 7,801 12,625 • Total current assets 542,779 37,573 580,352 • • Total assets $ 542,779 $ 37,573 $ 580,352 • • • LIABILITIES AND FUND EQUITY: Current liabilities: • • Accounts payable and accrued liabilities $ 146,726 $ 37,478 $ 184,204 • Accrued vacation payable 101,897 10,485 112,382 • Total liabilities 248,623 47,963 296,586 FUND EQUITY: • • Retained earnings (deficit) 294,156 (10,390) 283,766 • Total liabilities and fund equity $ 542,779 $ 37,573 $ 580,352 • 60 • • CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS for the fiscal year ended June 30, 2002 Central Fleet/Property Services Management Fund Fund Total OPERATING REVENUES: Service charges $ 4,105,027 $ 802,127 $ 4,907,154 Miscellaneous 3,014 990 4,004 Total operating revenues 4,108,041 803,117 4,911,158 OPERATING EXPENSES: Salaries and wages 2,491,214 358,561 2,849,775 Contracted services 358,856 136,583 495,439 General, administrative and other 977,900 321,595 1,299,495 Total operating expenses 3,827,970 816,739 4,644,709 Operating income (loss) 280,071 (13,622) 266,449 NONOPERATING REVENUE: Interest revenue 14,085 3,232 17,317 Net income (loss) 294,156 (10,390) 283,766 RETAINED EARNINGS - beginning of year - - - RETAINED EARNINGS (DEFICIT) - end of year $ 294,156 $ (10,390) $ 283,766 61 • • CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS • COMBINING STATEMENT OF CASH FLOWS • for the fiscal year ended June 30, 2002 • • • • Central Fleet/Property Services Management Fund Fund Total • Cash flows from operating activities: Operating income (loss) $ 280,071 $ (13,622) $ 266,449 • Adjustments to reconcile operating • income (loss) to net cash provided by operating activities: (Increase) in accounts receivable (2,807) - (2,807) • Decrease in inventory (4,824) (7,801) (12,625) • Increase in accounts payable and • accrued liabilities 146,726 37,478 184,204 Increase in accrued vacation payable 101,897 10,485 112,382 • Net cash provided operating activities 521,063 26,540 547,603 Cash flows from investing activities - • Interest earnings 14,085 3,232 17,317 • Net increase in cash and cash equivalents 535,148 29,772 564,920 • • Cash and cash equivalents - beginning of year - - - Cash and cash equivalents - end of year $ 535,148 $ 29,772 $ 564,920 • • • • • • • • • • • • • • • • • • • 62 • • • CITY OF TIGARD, OREGON CENTRAL SERVICES FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 Variance Budgeted Amounts Actual Favorable Original Final Amounts (Unfavorable) REVENUES: Interest earnings $ - $ - $ 14,085 $ 14,085 Miscellaneous - - 3,014 3,014 Total revenues - - 17,099 17,099 EXPENDITURES: Policy and administration 3,838,413 3,886,413 3,611,727 274,686 Contingency 187,650 139,650 - 139,650 General government 25,000 25,000 36,736 (11,736) Total expenditures 4,051,063 4,051,063 3,648,463 402,600 Change in fund balance before other financing sources (uses) (4,051,063) (4,051,063) (3,631,364) 419,699 Other financing sources (uses): Operating transfer in 4,396,903 4,396,903 4,105,027 (291,876) Operating transfer out (95,840) (95,840) (77,610) 18,230 Total other financing sources (uses) 4,301,063 4,301,063 4,027,417 (273,645) Change in fund balance 250,000 250,000 396,053 146,054 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR - - - - UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 250,000 $ 250,000 $ 396,053 $ 146,054 63 O • • CITY OF TIGARD, OREGON FLEET/PROPERTY MANAGEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 2002 • • • • • • • Variance • Budgeted Amounts Actual Favorable • Original Final Amounts (Unfavorable) REVENUES: Interest earnings $ - $ - $ 3,232 $ 3,232 • Miscellaneous - - 990 990 • Total revenues - - 4,222 4,222 • EXPENDITURES: • • Public works 825,947 825,947 698,031 127,916 • Contingency 40,000 40,000 - 40,000 • Total expenditures 865,947 865,947 698,031 167,916 • Change in fund balance • before other financing sources (uses) (865,947) (865,947) (693,809) 172,138 • • Other financing sources (uses): Operating transfer in 982,364 982,364 802,127 (180,237) • Operating transfer out (116,417) (116,417) (108,223) 8,194 • Total other financing sources (uses) 865,947 865,947 693,904 (172,043) • • Change in fund balance - - 95 95 • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR - - - - • • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ - $ - $ 95 $ 95 • • • • • • • • • • • 64 • • • • O General Fixed Assets Account Group This account group accounts for the City's investment in fixed assets, with the exception of those assets in the Enterprise Funds. O O O 0 • • CITY OF TIGARD, OREGON SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE • June 30, 2002 • • • • • • • • GENERAL FIXED ASSETS • Land $ 7,252,856 Building 6,148,367 Office equipment 1,652,964 • Equipment 1,710,037 • Autos and trucks 1,776,244 • Total general fixed assets $ 18,540,468 • • • • • INVESTMENT IN GENERAL FIXED ASSETS BY SOURCE: • General fund $ 11,980,374 • Special revenue funds 3,691,337 Capital projects funds 1,742,580 Donations 1,126,178 • • Total investment in general fixed assets $ 18,540,468 • • • • • • • • • • • • • • • • • • • • 65 • • • CITY OF TIGARD, OREGON SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY June 30, 2002 Machinery, Equipment, Function and Activity Total Land Buildings and Other Community services: Police $ 2,019,498 $ $ $2,019,498 Library 442,997 442,997 Parks 681,911 681,911 Total community services 3,144,406 3,144,406 Community development: Administration 69,293 69,293 Building 147,669 147,669 Planning 34,900 34,900 Engineering 242,481 242,481 Operations/admin. 75,025 75,025 Operations/shops 54,210 54,210 Streets 584,409 584,409 Operations/management 29,661 29,661 Total community development 1,237,646 1,237,646 Policy and administration: Mayor and City Council 20,564 20,564 City administration 48,194 48,194 Finance 73,776 73,776 Computer services 319,141 319,141 Accounting 39,679 39,679 Office services 43,454 43,454 Records 38,360 38,360 Court 5,111 5,111 Total policy and administration 588,279 588,279 General government 13,570,137 7,252,856 6,148,367 168,914 Total investment in general fixed assets $18,540,468 $7,252,856 $6,148,367 $5,139,246 66 • • CITY OF TIGARD, OREGON SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY for the fiscal year ended June 30, 2002 • • • • General General • Fixed Assets Transfers/ Fixed Assets Function and Activity June 30, 2001 Additions Retirements June 30, 2002 • Community services: • Police $ 1,991,024 $ 106,425 $ (77,951) $ 2,019,498 Library 453,054 8,390 (18,447) 442,997 • Parks 588,372 96,199 (2,660) 681,911 • Total community services 3,032,450 211,013 (99,057) 3,144,406 • Community development: • Administration 98,604 - (29,311) 69,293 . Building 171,170 - (23,502) 147,669 Planning 45,819 - (10,920) 34,900 • Engineering 266,351 - (23,871) 242,481 Operations/admin. 78,219 - (3,194) 75,025 • Operations/shops 55,890 - (1,680) 54,210 • Streets 586,529 4,528 (6,648) 584,409 Operations/management 30,172 - (511) 29,661 Total community development 1,332,754 4,528 (99,636) 1,237,646 • • Policy and administration: • Mayor and City Council 20,564 - - 20,564 • City administration 57,171 - (8,977) 48,194 • Finance 77,782 - (4,006) 73,776 Computer services 353,728 - (34,587) 319,141 • Accounting 55,779 - (16,100) 39,679 Office services 50,291 - (6,837) 43,454 • Records 41,752 - (3,392) 38,360 Court 11,892 - (6,781) 5,111 • • Total policy and administration 668,959 - (80,680) 588,279 • General government 11,870,636 1,700,636 (1,135) 13,570,137 • • Total investment in general fixed assets $ 16,904,799 $1,916,177 $ (280,508) $ 18,540,468 • • • • • • • • • • • • • 67 • • • Other Schedules Schedules included in this section are: • Property Tax Transactions and Outstanding Balances • Bond and Bond Interest Transactions • Future Debt Service Requirements of Long Term Notes Payable • Future Debt Service Requirements of Bancroft Improvement Bonds • Future Debt Service Requirements of General Obligation Bonds CITY OF TIGARD, OREGON SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES for the fiscal year ended June 30, 2002 Property Add Property Taxes Levy as Taxes Receivable Extended Deduct Add Receivable June 30, by Discounts (Deduct) Add Deduct June 30, • 2001 Assessor Allowed Adjustments Interest Collections 2002 2001 -2002 $ - $ 8,984,987 $ (222,057) $ (28,041) $ 3,782 $ (8,498,029) $ 240,642 2000 - 2001 222,697 - - (11,078) 9,013 (143,324) 77,308 • 1999 - 2000 79,692 - - (3,429) 6,615 (44,785) 38,093 1998 - 1999 42,487 - - (2,083) 7,891 (35,614) 12,681 • 1997 - 1998 15,415 - - (970) 3,723 (16,148) 2,020 1996-1997 2,074 - - (673) 411 (999) 813 1995 - 1996 & Prior 3,472 - - (1,410) 431 (466) 2,027 $ 365,837 $ 8,984,987 $ (222,057) $ (47,684) $ 31,866 $ (8,739,365) $ 373,584 Property Taxes S Cash Receivable Distributed as follows: Collections June 30, 2002 General Fund: • Current $ 8,327,091 $ 266,699 Prior years' levies 174,577 93,348 • Total General Fund 8,501,668 360,047 Enterprise Funds: • Prior Years' levies 25 36 Total Enterprise Funds 25 36 • Debt Service Funds: • Current 224,927 13,501 Prior years' levies 12,739 - Total Debt Service Funds 237,666 13,501 • Capital Projects Funds: • Prior years' levies 6 - . Total Capital Projects Funds 6 - • Total $ 8,739,365 $ 373,584 68 CITY OF TIGARD, OREGON SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS for the fiscal year ended June 30, 2002 Bond Transactions Interest Transactions Outstanding Outstanding Original June 30, Matured/ June 30, Bancroft Bonds Issue 2001 Additions Called Paid 2002 Matured Paid Issued May 1, 1993 $ 660,000 $ 290,000 $ $100,000 $(100,000) $ 190,000 $11,560 $(11,560) Issued November 30, 1998 1,565,576 1,222,168 - 140,894 (140,894) 1,081,274 52,124 (52,124) Issued June 27, 2002 1,307,969 - 1,307,969 - 1,307,969 - $ 1,512,168 $1,307,969 $240,894 $(240,894) $2,579,243 $63,684 $(63,684) General Obligation Bonds Issued May 1, 1993 $6,935,000 $ 470,000 $ - $225,000 $(225,000) $ 245,000 $21,988 $ 2( 1,988) i 69 • CITY OF TIGARD, OREGON • SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS i OF LONG TERM NOTES PAYABLE • JUNE 30, 2002 • • • Issued - January 23, 2002 • 3.00% to 4.35% Original Issue - $ 2,290,248 Total ~ Payment Coupon Debt • Date Principal Interest Rate Service • January 1, 2003 $ 198,521 $ 79,340 3.00% $ 277,861 January 1, 2004 199,527 78,548 3.00% 278,075 January 1, 2005 210,563 72,563 3.00% 283,126 • • January 1, 2006 216,630 66,246 3.25% 282,876 • i January 1, 2007 222,820 59,205 3.65% 282,025 January 1, 2008 229,201 51,072 3.80% 280,273 i • January 1, 2009 235,690 42,363 4.00% 278,053 • January 1, 2010 247,318 32,935 4.10% 280,253 • January 1, 2011 259,053 22,795 4.25% 281,848 • January 1, 2012 270,925 11,785 4.35% 282,710 • • Totals $ 2,290,248 $ 516,852 $ 2,807,100 • • • i • • • • • • • i • • • • 70 • • • • CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF BANCROFT IMPROVEMENT BONDS June 30, 2002 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 2002-2003 $ 285,347 $ 151,729 $110,000 $ 11,530 $ 147,147 $ 45,871 $ 28,200 $ 94,328 2003-2004 186,578 140,536 - 9,000 153,678 39,340 32,900 92,196 2004-2005 195,799 131,290 - 9,000 160,499 32,519 35,300 89,771 2005-2006 285,522 117,064 80,000 4,500 167,622 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 $ 2,579,243 $1,399,198 $190,000 $ 34,030 $ 1,081,274 $ 173,343 $1,307,969 $1,191,825 71 • • CITY OF TIGARD, OREGON • SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF GENERAL OBLIGATION BONDS • June 30, 2002 • • • • • • • Series 1993A • Issued: May 1,1993 • Year of 3.00% to 4.75% • Maturity Principal Interest 2002-2003 $ 245,000 $ 11,638 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 72 • • • STATISTICAL SECTION • • • • • • • • • • • • • • • CITY OF TIGARD, OREGON GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION - BUDGETARY BASIS for the last ten fiscal years City-Wide Support Public Works Functions, Fiscal and Capital Year Ended Community Community Policy and Projects Debt June 30 Services Development Administration and Other Service Total 1993 $ 4,755,049 $ 2,459,618 $ 1,223,269 $ 2,449,617 $ 2,652,428 $ 13,539,981 1994 5,088,712 2,641,694 1,317,972 3,604,930 5,647,732 18,301,040 1995 5,656,128 2,745,236 1,332,630 2,148,786 2,388,061 14,270,841 1996 6,073,218 3,230,316 1,482,194 2,895,552 5,152,515 18,833,795 1997 6,537,097 3,507,919 1,699,813 3,182,818 2,117,957 17,045,604 1998 6,973,417 4,072,109 1,914,207 5,084,190 2,171,542 20,215,465 1999 7,778,333 4,476,564 2,100,829 4,349,185 6,850,522 25,555,433 2000 8,322,224 4,738,142 2,287,819 3,902,719 2,699,338 21,950,242 2001 8,696,210 4,832,637 2,593,816 3,894,954 672,656 20,690,273 2002 8,372,801 5,927,523 309,559 2,700,075 2,785,404 20,095,363 73 • • CITY OF TIGARD, OREGON • GENERAL GOVERNMENTAL REVENUES BY SOURCES - • BUDGETARY BASIS • for the last ten fiscal years • • • Fiscal Licenses Inter- Charges • Year Ended Franchise and governmental For Fines and Miscellaneous • June 30 Taxes Fees Permits Revenues Services Forfeitures Revenues' Total • 1993 $ 5,493,516 $ 1,320,686 $ 1,682,341 $ 3,073,728 $ 301,569 $ 316,947 $ 1,599,480 $ 13,788,267 • 1994 5,894,241 1,447,668 2,554,752 3,105,356 393,349 307,982 1,576,679 15,280,027 • 1995 6,107,116 1,592,707 2,344,386 3,350,614 418,965 325,970 851,444 14,991,202 • 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 2,674,389 3,187,961 4,778,450 443,419 415,760 1,339,839 21,858,178 • • " Includes special assessments collections and private donations. • Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types • • • • • • • • • • • • • • • • • • • • • • • • • 74 • • • CITY OF TIGARD, OREGON PROPERTY TAX LEVIES AND COLLECTIONS for the last ten fiscal years Percent Percent Total Tax Delinquent Fiscal Total Percent Delinquent Total Collections Outstanding Taxes Year Ended Tax Current Tax of Levy Tax Tax To Tax Delinquent To Tax June 30 Levy Collections Collections Collections Collections Levy Taxes Levy 1993 $ 5,548,159 $ 5,213,266 93.96% $ 260,368 $ 5,473,634 98.66% $ 391,447 7.06% 1994 5,984,204 5,622,050 93.95% 272,191 5,894,241 98.50% 333,198 5.57% 1995 6,212,684 5,864,693 94.40% 242,923 6,107,616 98.31% 285,651 4.60% 1996 5,982,372 5,671,785 94.81% 198,054 5,869,839 98.12% 245,387 4.10% 1997 7,924,163 7,511,237 94.79% 167,262 7,678,499 96.90% 284,176 3.59% 1998 8,470,116 8,119,848 95.86% 135,325 8,255,173 97.46% 318,590 3.76% 1999 8,915,821 8,400,875 94.22% 227,801 8,628,676 96.78% 418,484 4.69% 2000 7,881,754 7,385,015 93.70% 270,169 7,655,184 97.13% 395,297 5.02% 2001 8,479,977 8,017,056 94.54% 241,309 8,258,365 97.39% 365,837 4.31% 2002 8,984,987 8,498,029 94.58% 241,336 8,739,365 97.27% 373,584 4.16% Taxes are levied as of July 1 each year and are payable in three installments, without interest, on November 15, February 15, and May 15. Interest is charged at the rate of 1 % per month on delinquent taxes. Tax liens are foreclosed after three year's delinquencies. Taxpayers receive a discount of 3% for payment in full by November 15 and 2% for payment of two thirds of the total taxes due. 75 • • CITY OF TIGARD, OREGON • MARKET VALUE AND ASSESSED VALUE OF TAXABLE PROPERTY • for the last ten fiscal years • • • • • • • • Fiscal Market Value • Year Public • Ended Real Personal Utility Total • June 30 Property Property Property Total Assessed Value • 1993 $ 1,820,521,857 $ 139,064,986 $ 50,197,374 $ 2,009,784,217 $ 2,009,784,217 • • 1994 1,972,696,888 142,496,210 60,467,981 2,175,661,079 2,175,661,079 • 1995 2,229,444,147 156,419,813 72,874,589 2,458,738,549 2,458,738,549 • • 1996 2,499,277,057 164,967,611 70,968,422 2,735,213,090 2,735,213,090 • 1997 2,870,072,277 165,084,982 76,231,065 3,111,388,324 3,111,388,324 • • 1998 3,122,530,514 205,073,620 97,363,138 3,424,967,272 2,711,669,298 • 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 • • 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. • • • w • • • • • • • • • • 76 • • • 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 1993 $ 408,000 $ 688,664 168.79% $ 2,900,352 1994 193,000 186,036 96.39% 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 (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 • • • s • • • • • • • • • 77 • • 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 1993 $ 0.48 $ 2.80 $ 1.42 $15.95 $ 14.16 $ 0.08 $ 0.18 $ 1.98 $ 0.90 $ 0.21 $ 0.43 $ 38.59 1994 0.42 2.77 1.36 15.58 13.39 0.08 0.12 1.88 0.87 0.20 0.37 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 0.73 0.30 0.83 31.81 -4 1998 0.27 3.12 2.60 6.60 6.16 1.54 0.37 0.78 21.44 00 1999 0.28 3.10 2.57 6.65 6.17 1.53 1.15 0.35 0.81 22.61 2000 0.21 2.59 2.54 6.31 6.19 1.56 1.29 0.36 0.70 21.75 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 Tax rates, expressed in dollars and cents per $1,000 of assessed value of taxable property in each taxing district, are required by the State Constitution to be uniform throughout the district. Taxes levied may be composed of three types of levies: (1) a base operating levy, (2) a special operating levy approved by the voters in the district and (3) a debt service levy. Each district with outstanding General Obligation bonded debt is required to levy taxes sufficient with other available funds, to meet principal and interest payments when due. All operating levies were converted to a permanent rate by the passage of measure 50 in 1997. Permanent rates can not be changed. Prior to Measure 50, rates were dependent on both the levy and assessed value. Assessment and tax rolls are prepared and maintained by Washington County for all taxing districts with territory in the County. The County collects all taxes against property in the County (except assessments for improvements charged to benefited property and distributes taxes collected at least monthly. No charges are made to the taxing districts for these services. NOTE: - Not all taxing districts are charged on each parcel of property, actual rates on tax bills are a combination of the above depending upon the location of the parcel and the school district and sewer and water district boundaries. Total overlapping tax rates for property in Tigard In 2000 ranged from $13.63/$1,000 to $14.03/$1,000. Source: Washington County Department of Assessment and Taxation. ~~~~0*00010 09 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9 •~••••••••••~••••••••~•~0 0 0 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 1993 31,271 $ 2,009,784,217 $ 11,671,000 $ 830,080 $ 10,840,920 0.54% $ 346.68 1994 33,802 2,175,661,079 9,878,000 611,481 9,266,519 0.43% 274.14 1995 33,744 2,458,738,549 8,385,000 422,107 7,962,893 0.32% 235.98 1996 35,021 2,735,213,090 6,795,000 387,102 6,407,898 0.23% 182.97 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 - 2,824,243 0.08% 65.62 Excludes bond anticipation notes payable. Sources: City budget documents, Comprehensive Annual Financial Reports of the City and Washington County Department of Assessment and Taxation. 79 • • CITY OF TIGARD, OREGON • COMPUTATION OF LEGAL DEBT MARGIN • June 30, 2002 • • • • • • • 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 (2001-2002) $ 4,624,009,037 • • General obligation debt limit X 3% • 138,720,271 • • Gross bonded debt $ 2,824,243 • • Excludable debt - Bancroft improvement bonds (2,579,243) • • Debt subject to limitation 245,000 • Legal debt margin - amount available for future indebtedness $ 138,475,271 • • • • • • Source: Washington County Department of Assessment and Taxation • • • • • • • • • • • • • • • • • • • • • 80 • • CITY OF TIGARD, OREGON COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT June 30, 2002 Percent Amount Applicable Applicable Net Debt Inside City Inside City Jurisdiction Outstanding of Tigard of Tigard Tigard/Tualatin School District #23-J $ 73,108,487 52.7821% $ 38,588,195 Tri-Metropolitan Transportation District 4,028,946 3.7376% 150,586 Port of Portland 1,877,722 3.4294% 64,395 Metro 6,682,437 3.7574% 251,086 Beaverton School District #48 7,088,884 3.7557% 266,237 Portland Community College 9,442,678 4.7973% 452,994 Washington County 7,834,646 10.8438% 849,573 Tualatin Valley Fire & Rescue District 1,156,266 13.7487% 158,972 Tualatin Valley Water (Metzger Bond) 959,565 62.5124% 599,847 Sub-Total of Overlapping Debt 112,179,631 41,381,884 City of Tigard 2,824,243 100.0000% 2,824,243 Total for Overlapping (Underlying) Debt $ 115,003,874 $ 44,206,127 Source: Oregon State Treasury Debt Management Division • • • • 81 • • • CITY OF TIGARD, OREGON • RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR LONG-TERM DEBT TO TOTAL • GENERAL GOVERNMENTAL EXPENDITURES • for the last ten fiscal years • • • • • • Total Percent of Debt • Fiscal Year Total General Service to • Ended Debt Governmental Total General • June 30 Principal Interest Service Expenditures Expenditures • 1993 $ 1,939,000 $ 713,428 $ 2,652,428 $ 14,789,158 17.93% • • • 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 4,385,000 767,516 5,152,516 14,270,841 36.11% • • 1997 5,755,000 447,957 6,202,957 21,130,604 29.36% • • 1998 6,390,000 406,542 6,796,542 20,215,465 33.62% • • 1999 6,190,576 659,946 6,850,522 25,555,433 26.81% • 2000 2,487,352 211,986 2,699,338 21,950,242 12.30% • • 2001 2,408,085 207,914 2,615,999 22,638,451 11.56% • • 2002 4,195,966 325,036 4,521,002 20,095,362 22.50% • • • Source: Comprehensive Annual Financial Reports of the City. • • (1) Includes bond anticipation notes principal and interest. • • (2) Includes bond anticipation notes interest and certificates of participation principal and interest • • • • • • • • • • • 82 • • CITY OF TIGARD, OREGON PROPERTY VALUE AND CONSTRUCTION for the last ten fiscal years Commercial Residential Fiscal Year Construction (1) Construction (1) Ended Number of Number of June 30 Permits Value Permits Value 1993 28 $ 25,685,703 408 $ 43,687,254 1994 40 63,946,411 683 62,765,587 1995 24 31,873,570 452 63,699,561 1996 37 34,644,201 496 65,935,382 1997 22 44,227,644 355 59,581,425 1998 28 45,381,833 147 30,720,243 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 (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 • 83 • • • CITY OF TIGARD, OREGON • PRINCIPAL TAXPAYERS • June 30, 2002 • • • • • Percentage of Total • Assessed Assessed • Taxpayer Type of Business Valuation Valuation • Pacific Realty Associates Oregon Business Park $ 132,897,390 3.83% ! EOP-Lincoln, LLC Lincoln Center Complex 66,341,620 1.91% • • Verizon Northwest Inc Nelson Business Park 54,931,404 1.58% PPR Washington Square, LLC Washington Square Shopping Mall 52,227,210 1.50% • • Calwest Industrial Holdings, LLC Property Management 21,124,330 0.61% • • AT&T Communications Inc Utility - Communications 20,991,700 0.60% • Sprint Spectrum Utility - Communications 20,043,600 0.58% • • Portland General Electric Utility - Power Operations 19,831,446 0.57% Archstone Communities Trust Property Management 17,997,260 0.52% • • Portland Hotel Associates Embassy Suites Hotel 16,782,000 0.48% • • • Total Principal Taxpayers 423,167,960 12.19% • • • All Other Taxpayers 3,047,410,903 87.81% Total $ 3,470,578,863 100.00% • • Source: City of Tigard Planning Department, estimated from Washington County Assessment & Taxation records. • • • • • • • • • • • • • • • 84 • • CITY OF TIGARD, OREGON DEMOGRAPHICS STATISTICS for the last ten 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 1993 31,271 $ 64,270 8,965 5.80% 1994 33,802 64,365 9,427 4.80% 1995 33,744 72,864 9,644 4.70% 1996 35,021 78,102 10,579 4.20% 1997 35,925 86,608 10,829 3.90% 1998 36,680 73,928 11,071 4.30% 1999 37,200 74,537 11,080 4.50% 2000 39,672 76,453 11,145 4.10% 2001 42,260 77,014 11,500 4.50% 2002 43,040 80,636 11,785 7.50% 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 85 • • CITY OF TIGARD, OREGON • MISCELLANEOUS STATISTICAL DATA • June 30, 2002 • • • • • • Date of Incorporation 1961 Form of government Council - Mayor - Manager • Area (Square Miles - incorporated area) 10.92 • Miles of streets 129.0 • Population 43,040 • • Drinking Water: • Water mains 208 Miles • Reservoirs 13 • • • • Police protection: • Number of stations 1 • Number of sworn police officers 55 • • Education: • Attendance centers 15 • Number of teachers 668 • Number of students 11,785 • Sanitary sewers 743,723 ft. • • • • Storm sewer lines 575,470 ft • • Building Permits issued (2001-2002) 399 • Recreation and culture: • Number of parks 11, totaling 160.8 acres • Greenways 132.7 acres • Number of libraries 1 • Number of volumes (estimated) 111,502 • Employees: • Classified service (union) 194 Unclassified (non-union) 76 • Information obtained from the various departments of the City of Tigard, • Oregon, and Tigard/Tualatin School District #23-J - City student totals not available • • • • 86 • • • 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 23, 2002 AUDITORS' COMMENTS AND DISCLOSURES Oregon Administrative Rules 162-10-000 through 162-16-000, the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, comments and disclosures required in audit reports. Certain required disclosures, statements and schedules are set forth in preceding pages of this report. Additional required comments and disclosures related to our audit of such statements and schedules are set forth as follows: REPORT ON INTERNAL ACCOUNTING CONTROL We have audited the general purpose financial statements of the City of Tigard, Oregon, as of and for the year ended June 30, 2002, and have issued our report thereon dated December 23, 2002. 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 general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the general purpose financial statements of the City of Tigard, Oregon, for the year ended June 30, 2002, 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 87 • • 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 of management, 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, 2002 except for the over expenditure indicated in Note 14 to the general purpose • financial statements. • • 2001-2002 and 2002-2003 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 • • Collateral pledged by the depositories appears to have been adequate to meet • requirements of Oregon Law at all times during the year. Each depository is required • by ORS Chapter 295 to maintain securities having a value of not less than 25% of the • face amount of the collateral certificate issued by the pool manager, for funds • deposited in the depository in excess of the amounts insured by the Federal Deposit • Insurance Corporation. Deposits in the State Local Government Investment Pool are • not required to be collateralized. • • INVESTMENTS • • The City's investments for the year ending June 30, 2002 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. • • 88 • • • • 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, 2002. 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. • 89 • i L% Wilma