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CAFR Report - 1996-1997 1 I CITY, OF TIGARD ' OREGON Citrof, ~ Tigard, Oregon i i i ~ Comprehensive Annual ~ Financial Report ' For The Fiscal Year Ended June 30, 1997 1 r 1 r r CITY OF TIGARD, OREGON i COMPREHENSIVE ANNUAL FINANCIAL REPORT for the fiscal year ended June 30, 1997 prepared by the City of Tigard - Finance Department r r r r r i I 1 City of Tigard, Oregon ' Table of Contents Page INTRODUCTORY SECTION: Letter of Transmittal i Mayor and City Council Members x Organization Chart xi Certificate of Achievement for Excellence in Financial Reporting xii FINANCIAL SECTION: f Report of Independent Accountants 1 GENERAL PURPOSE FINANCIAL STATEMENTS ("Liftable" Financial Statements): Combined Balance Sheet - All Fund Types and Account Groups 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types 5 Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balances - All Proprietary Fund Types 6 Combined Statement of Plan Net Assets - Pension Trust Funds 7 Combined Statement of Changes in Plan Net Assets - Pension Trust Funds 8 Combined Statement of Cash Flows - All Proprietary Fund Types - Enterprise Funds 9 Notes to General Purpose Financial Statements 10 SUPPLEMENTARY DATA (Combining and Individual Fund and Account Group Statements and Other Financial Schedules): General Fund: Schedule of Revenues and Expenditures - Budget and Actual 31 City of Tigard, Oregon Table of Contents Page FINANCIAL SECTION Continued: SUPPLEMENTARY DATA (Combining and Individual Fund and Account Group Statements and Other Financial Schedules), Continued: Special Revenue Funds: Combining Balance Sheet 32 Combining Statement of Revenues, Expenditures and Changes in ' Fund Balances 33 Schedules of Revenues and Expenditures - Budget and Actual: Forfeitures From Criminal Activity Fund 34 State Tax Street Fund 35 Parks SDC Fund 36 County Gas Tax Fund 37 Traffic Impact Fund 38 Electrical Inspection Fund 39 Underground Utility Fund 40 FEMA Disaster Fund 41 Workers' Compensation Fund 42 Building Fund 43 ' Urban Services Fund 44 Urban Services - TIF Fund 45 Tree Replacement Fund 46 Debt Service Funds: Combining Balance Sheet 47 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 48 Schedule of Revenues and Expenditures - Budget and Actual: General Obligation Bond Debt Service Fund 49 Bancroft Bond Debt Service Fund 50 Capital Projects Funds: Combining Balance Sheet 51 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 52 Schedule of Revenues and Expenditures - Budget and Actual: Local Improvement Capital Projects Fund 53 Park Levy Capital Improvement Fund 54 Facility Fund 55 Metro Greenspaces Fund 56 City of Tigard, Oregon Table of Contents Page FINANCIAL SECTION, Continued: SUPPLEMENTARY DATA (Combining and Individual Fund and Account , Group Statements and Other Financial Schedules), Continued: Enterprise Funds: Combining Balance Sheet 57 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 58 Combining Statement of Cash Flows 59 Schedule of Revenues and Expenditures - Budget and Actual: Sewer Fund 60 Storm Drainage Fund 61 Water Quality & Quantity Fund 62 Water General Fund 63 Water Systems Development Fund 64 Water Capital Projects Fund 65 ' Fiduciary Funds: Combining Balance Sheet 66 Pension Trust Funds: Combining Statement of Plan Net Assets 67 Combining Statement of Changes in Plan Net Assets 68 Statement of Changes in Assets and Liabilities - Agency Fund - Deferred Compensation Fund 69 General Fixed Assets Account Group: Schedule of General Fixed Assets - By Sources 70 Schedule of General Fixed Assets - By Function and Activity 71 Schedule of Changes in General Fixed Assets - By Function and Activity 72 Other Schedules: Schedule of Property Tax Transactions and Outstanding Balances 73 Schedule of Bond and Bond Interest Transactions 74 Schedule of Future Debt Service Requirements of Bancroft Improvement Bonds 75 Schedule of Future Debt Service Requirements of General Obligation Bonds 76 City of Tigard, Oregon Table of Contents Page STATISTICAL SECTION: General Governmental Expenditures By Function - Budgetary Basis - for the last ten fiscal years 77 General Governmental Revenues By Sources - Budgetary Basis - ' for the last ten fiscal years 78 Property Tax Levies and Collections - for the last ten fiscal years 79 Assessed Value of Taxable Property - for the last ten fiscal years 80 Special Assessment Collections - for the last ten fiscal years 81 Property Tax Rates - Direct and Overlapping Governments - for the last ten fiscal years 82 1 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita - for the last ten fiscal years 83 Computation of Legal Debt Margin - June 30, 1997 84 Computation of Overlapping General Obligation Debt - June 30, 1997 85 Ratio of Annual Debt Service Expenditures for Long-Term r Debt to Total General Governmental Expenditures - for the -last ten fiscal years 86 Property Value, Construction and Bank Deposits - for the last ten fiscal years 87 Principal Taxpayers - June 30, 1997 88 Demographic Statistics - for the last ten fiscal years 89 Miscellaneous Statistical Data - June 30, 1997 90 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY ' STATE REGULATIONS: Introductory Comments 91 Internal Control Structure 92 Other Comments and Disclosures 92 i 1 s i CITY of ncaRO ~ OREGON , 1 1 1 1 1 1 1 1 1 ~O H~ U w Q O H z 1 r CITY OF TIG RD ' OREGON November 24, 1997 1 Honorable Mayor and Members of the City Council City of Tigard, Oregon Submitted herewith is the Comprehensive Annual Financial Report of the City of Tigard (the City) for the fiscal year ended June 30, 1997. This report was prepared by the City's Finance Department. Responsibility for both the accuracy of the presented data and the completeness and fairness of presentation, including all disclosures, rests with the City. We believe the data, as presented, is ' accurate in all material respects and is presented in a manner designed to fairly set forth the financial position and results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain the maximum understanding of the City's financial activities have been included. The Comprehensive Annual Financial Report is presented in four sections: introductory, financial, statistical and audit comments and disclosures. The introductory section includes this transmittal letter, the City's organization chart and a list of principal officials. The financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The audit comments and disclosures section contains audit comments and disclosures required by State regulations. This report includes all funds and account groups of the City under the direction of the City Council. The City provides a full range of services including police protection; sewer, storm drainage, streets and parks repair and maintenance; community planning and building inspection; and infrastructure improvements. Tigard/Tualatin School District, Tualatin Valley Water District, and the Tualatin Valley Fire and Rescue District have not met the established criteria for inclusion in this reporting entity and, accordingly, are excluded from this report. Economic Condition and Outlook The City of Tigard is located in Eastern Washington County just 12 miles southwest of downtown ' Portland, Oregon. Tigard has continued to be one of the fastest growing cities in Washington County and, with a population of approximately 37,400, is the eleventh largest City in the State. 1 1 13125 SW Hall Blvd., P.O. Box 23397, Tigard, Oregon 97223 (503) 639-4171 Over the past several years, new construction activity has remained strong. The average addition to assessed value from new construction from 1988 through 1993 was $62,206,000. New construction value since 1993 has averaged $125,228,000 per year. Projections for the next several years indicates continued strength in new development. The residential share of new value has averaged over $53,697,000 over the past three years. Residential construction value added in 1996/97 was $53,504,619. This included permits for 285 new homes with an average value per home of $187,736. There were permits for 70 multi-family units issued in 1996/97 with a value of $6,076,806. Commercial activity continued strong with $38,236,453 of new construction value added in 1996/97, 1997/98 promises to be another strong year for new construction value and development in Tigard. Tigard's proximity to the Portland Metropolitan area provides its citizens with many diverse employment opportunities. Over 51,823 jobs are located within a five minute drive from Tigard. The unemployment rate in the Portland Metropolitan area averaged just under 3.9% during the year. Tigard's assessed value for 1996/97 was $3,111,388,324, which represents a 14% increase over the previous year. The projected market value for 1997/98 is $3,399,300,503, which represents a 9% increase. This continued growth in value, together with prudent fiscal management, has allowed the City to provide quality services at a very low tax rate. The total property tax rate resulting from City levies in 1996/97 was $2.54 per thousand of assessed value. The economic outlook for the City remains good. The City has continued to experience growth in most areas including the local economy, population, assessed value and development activity. Major Initiatives The City has operated since 1980 using a five-year financial plan. Each plan sets forth the activities and services that will be provided to citizens over the next five-year period. Along with the services to be provided, the plan calls for a certain level of property taxation to support those services. Before each five-year plan has been implemented, voters have had the opportunity to decide whether to support the needed level of taxes. Tigard voters have supported the last four such property tax , increase requests since 1980. The most recent request was placed on the November 1994 ballot and was passed by Tigard voters. The measure called for a $1,700,000 increase in the tax base. The new levy authority was levied in 1996/97. The five-year plan, which covers the operation of the City from 1996/97 through 2000/01 calls for the addition of eighteen police positions over the life of the plan. Several of the new police positions were hired in 1995/96 in anticipation of the beginning of the new plan in 1996/97. 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. ii 1 ' The Pacific Corporate Center development continues to progress. This development is the result of a Local Improvement District that was used to install streets and other infrastructure. Since the completion of the improvements in 1990, over 300,000 square feet of prime office space has been built. Recently added to the development is a Marriot Hotel with 110 guest rooms. Other additions include restaurants, banks and additional new office and retail space. The Dartmouth Local Improvement District project was completed in the summer of 1994. The road improvement provided a connection between Highway 99W and Interstate 5 in an area referred to as 1 the Tigard Triangle. This opened up hundreds of acres of raw land for commercial development. Cub Foods and Costco have opened for business with over 220,000 square feet of retail space. An additional 23,000 square feet of retail space was added with the opening of an Office Max office supply discount store. Although the improvements are complete, the City has not acquired a portion of the street right-of-way due to a dispute with a property owner. As a result, the final costs of the project have not yet been determined but are currently estimated at $4,500,000. Due to a recent agreement with the property owner regarding the purchase of right of way, it is expected that the final hearing will take place in January 1998. Construction financing matures on December 1, 1998 at which time the obligations will be rolled over or converted to long-term bonds. From a development perspective, both of these Local Improvement Districts have been very successful in attracting high value commercial development. It is estimated that the total value at build out from both areas will exceed $40,000,000. The costs of the improvements which have been or will be assessed to the benefiting property owners is just under $6,500,000. During 1995/96, discussions began on the possible expansion of Cook Park, the City's major recreational facility which includes ball fields, playgrounds, boating facilities, and natural areas. The expansion of the park will involve the acquisition of additional land adjacent to the park and the development of additional soccer, baseball and football fields along with restroom facilities and parking. One large parcel has already been acquired. The project is currently envisioned as a cooperative effort between the City and various sports associations. A study is currently underway to determine the scope of the project and improvements which will be funded with Park System Development Charges and will be maintained by General Fund dollars. The Portland Metropolitan Area was hit hard by a wind storm in December 1995 and by flood and heavy rains in February 1996. The City activated it's Emergency Operations Center for both disasters ' and both events were declared disasters for Federal Emergency Management Agency (FEMA) reimbursement purposes. City crews and contractors worked through the spring to restore Cook Park to its prestorm condition by the summer season. The park was completely submerged for several weeks by the waters of the swollen Tualatin River. Total estimated costs eligible for FEMA reimbursement were just over $200,000. The City commissioned a water rate study during the 1995/96 fiscal year. The purpose of the study was to review the adequacy of the water rate structure, update water system development charges and meter installation fees. The CH2M Hill study found that the current water rate structure was adequate but recommended that system development charges and installation fees be increased and the water rate structure be changed to eliminate the minimum charge and to charge for water usage by customer class on a cost of service basis. The City Council approved the changes to become effective January 1, 1997. III The City of Tigard's motion for summary judgment in the Dolan/A-Boy case was denied and the , motion of the plaintiff was granted. This case stems from a development application in the early 1990's for the expansion of the A-Boy store on Main street. The City required the applicant to dedicate a strip of land in the flood plain for a bike path as a condition of approval. The applicant refused to donate the property. The taking claim was judged in the City's favor until it reached the U.S. Supreme Court which ruled five to four in favor of the applicant. The applicant has sued the City on several issues for a substantial amount of money citing lost profits and other damages. The granting of the applicant's motion for summary judgment indicates that the court found a taking had occurred. A jury trial began in November 1997. On November 18, 1997, the City and the Dolan's reached an out of court settlement in the amount of $1,500,000 to be paid by December 10, 1997. At the November 1996 election, a citizen initiative to reduce property taxes known as measure 47 was approved by voters. Most properties in the state have experienced dramatic increases in assessed values over the past several years which have resulted in rapidly increasing property taxes to schools. The Measure would have rolled back the property tax on individual properties for 1997-98 to the 1995-96 level less 10%. Future increases were then limited to 3% per year. Just as the implications of measure 47 were being determined, the legislature placed Measure 50 on the May 1997 ballot. Measure 50 achieves similar tax reduction by limiting assessed value to 1995-96 values less 10% and then allows 3% growth per year. The impact of this measure on the City has been determined to be a loss of $76,000 in General Fund tax revenues. The loss to the City is not expected to have serious affects on the City's ability to fund General Fund programs at current levels. Taxes to pay debt service on outstanding bonds are generally unaffected by the measure. The City of Tigard finished 1996-97 in a strong financial position. Ending fund balances for most ' funds were greater than estimated. Outstanding debt is decreasing as are property tax rates. Assessed value continues to increase and development activity remains strong. All of these things taken together make Tigard one of the most financially viable communities in the State and well situated to deal with growth and limitations on funding sources. Financial Information 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. r t iv Budgeting Controls In addition, the City maintains budgetary controls, the objective of which is to ensure compliance with legal provisions in the annual appropriated budget adopted by the Tigard City Council. Activities of all funds are included in the annual adopted budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by program within each individual fund. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. General Governmental Functions Revenues for general governmental functions (all governmental funds) on a generally accepted accounting principles basis totaled $19,921,378 in fiscal year 1997. The 23.19% increase from fiscal year 1996 resulted primarily from increases in property tax revenues, licenses and permits, special assessments and an increase in charges for services. Revenues from various sources and changes from last year are shown below: Increase/ Percent (Decrease) Percent of from Fiscal Increase/ Functions Amount Total Year 1996 (Decrease) Taxes $ 7,699,433 38.65 % $ 1,838,485 31.37 % Franchise fees 1,736,933 8.72 67,149 4.02 ' Special assessments 353,977 1.78 135,310 61.88 Licenses and permits 3,782,084 18.99 1,126,813 42.44 Intergovernmental revenues 3,834,114 19.25 116,459 3.13 ' Charges for services 798,129 4.00 440,558 123.21 Fines and forfeitures 397,637 2.00 93,391 30.70 Miscellaneous revenues 1,319,071 6.61 (67,930) (4.90) Total $ 19,921,378 100.00 % $ 3,750,235 23.19 % Property tax revenue increased over last year due to the increased tax base levy approved by voters in 1994 and levied for the first time in 1996/97. Charges for services and licenses and permits have increased due to growth in development activity. Intergovernmental revenues have also increased due to growth in population and growth in library circulation. i 1 The following schedule presents a summary of program expenditures for all governmental funds including debt service for the fiscal year ended June 30, 1997, and the changes from last year: Increase/ r Percent (Decrease) of from Fiscal Percent Functions Amount Total Year 1996 Increase Community services $ 6,537,097 35.25 % $ 463,879 7.64 % Development services 3,507,918 18.92 277,602 8.59 , Policy and administration 1,699,813 9.17 217,619 14.68 Nondepartmental 245,657 1.32 (40,961) (14.29) Capital improvements 4,437,162 23.93 1,828,228 70.08 Debt service 2,117,957 11.41 (3,034,558) (58.89) $ 18,545,604 100.00 % $ (288,191) (1.53)% Total expenditures decreased 1.53% from the previous year. The decrease is mostly attributable to reductions in debt service. Debt service expenditures included the refinancing of the Dartmouth Bond Anticipation notes. Increase in operating programs are due to the addition of star called for in the five-year plan and the filling of vacant positions from the previous year. Capital projects vary from year to year depending on weather and bid schedules. , Fund Balances Total fund balances of the City were $11,706,943 at June 30, 1997, consisting of $4,217,311 in the General Fund, $5,044,993 in the Special Revenue Funds, $1,261,053 in the Debt Service Funds, and $1,183,586 in the Capital Projects Funds. Enterprise Operations The City's enterprise activities include sanitary sewer, stornl sewer and water operations. Although i the Unified Sewerage Agency (USA) owns and operates sewage treatment plants and sets the sewer rates, the City bills sewer accounts and maintains all sewer lines within the City. The City also maintains the storm sewer system throughout the City and charges a monthly surface water fee at a rate set by the Regional Surface Water Management Agency, a regional entity affiliated with USA. 1 A ' Sewer operating revenues derived primarily from service charges amounted to $1,666,183. Operating expenses totaled $895,340 resulting in net income of $994,755 after nonoperating interest revenues totaling $223,912. Storm drainage operating revenues amounted to $594,162. Storm drainage operating expenses totaled $768,571 resulting in a net loss of $198,528 after nonoperating transfer to the FEMA fund of $112,512 and interest revenues totaling $88,393. Water operating revenues derived from user charges amounted to $4,061,690. Operating expenses ' totaled $3,971,272 resulting in net income of $616,825 after nonoperating interest revenues totaling $526,407. 1 Pension Trust Funds 1 The City provides a retirement plan for each employee group. Non-police personnel, including both management and non-management, are covered by ICMA money purchase plans. Effective July 1, 1989, police personnel were included in the State of Oregon Public Employes Retirement System. In addition, all employees have the option to contribute to an ICMA deferred compensation program. The money purchase plans are accounted for in a pension trust fund. The deferred compensation plan is accounted for in an agency fund. Cash Management Temporarily idle cash during the year was invested in accordance with the investment policy in certificates of deposit, banker's acceptances, commercial paper, U. S. Treasury Notes and Agencies, and the State of Oregon Local Government Investment Pool as approved by the Council. Pension trust funds are invested by the agents with which investment funds have been deposited and are therefore not included in the City's investment activities. Results of investment activity for the fiscal year are shown below in comparison with the previous year: Investment Income 1997 1996 General Fund $ 266,232 $ 256,052 Special Revenue Funds 228,601 193,710 Capital Projects Funds 102,329 85,410 Debt Service Funds 52,642 67,878 Enterprise Funds 838,512 729,626 Pension Trust Fund 592,200 448,540 ' $ 2,080,516 $ 1,781,216 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. Vii Risk Management The City has initiated a Risk Management Program to include regular risk categories such as property and liability as well as workers' compensation. Such risks are currently being insured by third party insurance companies, however, participation in insurance pools and/or self insurance is being discussed. Debt Management , At June 30, 1997, the City has the following debt issues outstanding: General obligation bonds $ 3,965,000 Bancroft improvement bonds 1,160,000 Bond anticipation notes 4,625,000 $ 9,750,000 The State of Oregon mandates a general obligation debt limit of 3 percent of true cash value of taxable property within the City boundaries. The limit totaled $93,341,650 at June 30, 1997. The City's debt subject to this limit was $3,965,000. Bancroft Bonds and bond anticipation notes are not subject to the limitation. Therefore, $89,376,650 is available for future indebtedness. The City has an Al bond rating from Moody's Investment Services on its general obligation bonds. Independent Audit Oregon State Law requires every municipal corporation to submit an annual financial report to the Secretary of State; to have its combined financial statements audited by an independent certified public accountant in accordance with generally accepted auditing standards and Minimum Standards for Audits of Oregon Municipal Corporations as prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy; and to have an independent auditor express an opinion upon the financial position, results of operations and cash flows as reported by the municipal corporation for the period under audit. The City is in full compliance with the aforementioned requirements, and the independent auditor's opinion has been included in this report. Awards For the last fourteen 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. 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. VIII 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. 1 In addition, the City also received the GFOA's Award for Distinguished Budget Presentation for its last eight adopted budgets. In order to qualify for the Distinguished Budget Presentation Award, the government's budget document was judged to be proficient in several categories including policy document, financial plan, operations guide and communications device. Acknowledgements The preparation of the comprehensive annual financial report was made possible by the dedicated service of the entire staff of the Finance Department. Each member of the Department has our sincere appreciation for the contributions made in the preparation of this report. In closing, without the leadership and support of the City Council of the City of Tigard, preparation of this report would not have been possible. Sincerely, ' William A. Monahan Wayne Lowry City Administrator Director of Finance r i ix i 1 A4 CITY of ncnaD ~ OREGON 1 City of Tigard, Oregon MAYOR AND COUNCIL MEMBERS AS OF JUNE 30, 1997 Name Term Expires Mayor James Nicoli December 31, 1998 10594 S.W. Windsor Ct. Tigard, Oregon 97223 Councilor Paul Hunt December 31, 2000 10320 S.W. Century Oak Drive Tigard, Oregon 97224 Councilor Bob Rohlf December 31, 1998 12430 S.W. North Dakota Tigard, Oregon 97223 Councilor Brian Moore December 31, 2000 9835 S.W. Kimberly Drive Tigard, Oregon 97224 Councilor Ken Scheckla December 31, 1998 10890 S.W. Fairhaven Way Tigard, Oregon 97223 1 William A. Monahan, City Manager Wayne Lowry, Director of Finance Cyndi A. Turner, Financial Operations Manager ' LEGAL COUNSEL O'Donnell, Ramis, Crew, Corrigan, & Bachrach 1727 N.W. Hoyt Portland, Oregon 97209 ' X City of Tigard, Oregon r Organization Chart _ r Citizens 1 Mayor & City city Cpuncil Attorney City Manager , Flnence Police Ubrery Public Works Community Engineering city Development Administration r Police Library Public Works Community Dev. F_r lerino City Admin. Finance Finance Administration Administration Administration Administration Engineering City Recorder epar tment Department D r library Police Readers Public Works Community Dev. Engineering City Admin. Finance Operations Serv ices Sanitary Sewer Administration Urban Services Community Accounting Urban Services Involvement Police Library Community Dev. City Admin. Public Works Engineering Finance Support Technical Storm Sewer Building Street Lights/ Human Office Services Services Services Inspection Signals Resources Commu fin Dev. City Admin. Finance Library Public Works Risk Building Circulation Water Inspection Management Records Urban Services Public Works Street Community Dev. Finance Maintenance Municipal Court Current Planning Public Works Shops & Community Dev Services CurrentPlenning Urban Services Public Works Property Mgmt. ' Community Dev. Advance Planning r r X. ~ Certificate of Achievement 1 for Excellence in Financial Reporting Presented to City of Tigard, Oregon For its Comprehensive Annual ' Financial Report for the Fiscal Year Ended June 30, 1996 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. NEE OFpj~, ~ /'/J/ ~ ~NCIEO STATES y t w AND S ' g G1PON10T 1 ° President y CORRATION SIEA~ CHJill CAGG Y~~(7 Executive Director XII CITY of ncaeo ~ OREGON 1 FINANCIAL SECTION 1 1 1 1 t f 1 1 1 i Coo ers Coopers & Lybrand L.L.P. & Ly rand a professional services firm i 1 Report of Independent Accountants ' Honorable Mayor and Council Members City of Tigard Tigard, Oregon We have audited the general purpose financial statements of the City of Tigard, Oregon as of and for the year ended June 30, 1997, as listed in the table of contents. These general purpose financial ' statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. 1 We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a ' test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall 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, 1997, and the results of its operations and the cash flows of its Enterprise Funds for the year then ended in conformity with generally accepted accounting principles. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the City of Tigard, Oregon taken as a whole. The combining and individual fund and ' account group statements and other financial schedules listed as supplementary data in the table contents are presented for purposes of additional analysis and are not a required part of the general i 1 1 ' Coopers & Lybrand L.L.P. is a member of Coopers & Lybrand International, a Swiss limited liability association. purpose financial statements of the City of Tigard, Oregon. 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 presented 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. i COOPERS & LYBRAND L.L.P. By Brent A. Macey, a partner Portland, Oregon September 17, 1997, except for Note 16 as to which the date is November 18, 1997 2 ' ' General Purpose Financial Statements 1 City of Tigard ' Combined Balance Sheet All Fund Types and Account Groups June 30, 1997 , Governmental ' Special ASSETS AND OTHER DEBITS General Revenue Assets: Cash and investments $ 5,993,002 $ 5,328,707 Restricted cash and investments Accounts receivable 4,448 50,000 Property taxes receivable 219,305 Assessment liens receivable 162,383 ' Due from other funds 119,370 Accrued interest on delinquent assessments Prepaid insurance 192,817 Inventory 18,631 Fixed assets, net ' Amount available for bonded debt service Amount to be provided for retirement of general long-term debt Total assets and other debits $ 6,547,573 $ 5,541,090 , LIABILITIES, FUND EQUITY AND OTHER CREDITS Liabilities: ' Accounts payable and accrued liabilities $ 544,309 $ 289,637 Customer deposits 131,279 64,443 Deferred revenues: , Property taxes 154,674 Assessment liens receivable 142,017 Accrued interest on delinquent assessments Litigation settlement payable 1,500,000 Due to other funds ' Deferred compensation payable Accrued vacation payable Bond anticipation notes payable General obligation bonds payable , Special assessment bonded debt with government commitment Total liabilities 2,330,262 496,097 Fund equity and other credits: ' Contributed capital Investment in general fixed assets Retained earnings , Fund balances: Reserved for prepaid insurance 192,817 Reserved for inventory 18.631 Reserved for employee retirement benefits Unreserved and designated for debt service ' Unreserved and undesignated 4,005,863 5,044,993 Total fund equity and other credits 4,217,311 5,044,993 Total liabilities, fund equity and other credits $ 6,547,573 $ 5,541,090 ' The accompanying notes are in integral part of the general purpose financial statements. 3 Fiduciary Account Groups ' Fund Types Proprietary Fund Type General Total Debt Capital Fund Type Trust General Long-Term (Memorandum Service Projects Enterprise and Agency Fixed Assets Debt Only) $ 424,803 $ 1,890,359 $ 10,545,173 $ 7,668,734 $ 31,850,778 6,103,898 6,103,898 136,325 1,588,241 1,779,014 62,780 2,091 284,176 1,445,841 1,608,224 832,000 4,725 956,095 37,443 37,443 192,817 149,824 168,455 ' 33,483,370 $ 11,638,842 45,122,212 $ 1,261,053 1,261,053 8,895,481 8,895,481 $ 2,802,867 $ 2,028,775 $ 51,875,231 $ 7,668,734 $ 11,538,842 $ 10,156,534 $ 98,259,646 ' $ 11,785 $ 1,639,732 $ 2,485,463 78,699 274,421 ' $ 46,947 1,404 203,025 1,445,841 1,150 1,589,008 37,443 37,443 1,500,000 ' 11,583 832,000 112,512 956,095 $ 2,251,383 2,251,383 73,648 $ 406,534 480,182 4,625,000 4,625,000 3,965,000 3,985,000 ' 1,160,000 1,160,000 1,541,814 845,189 1,905,741 2,251,383 10,156,534 19,527,020 ' 41,523,387 41,523,387 $ 11,638,842 11,638,842 8,446,103 6,446,103 ' 192,817 18,631 5,417,351 5,417,351 1,261,053 1,261,053 ' 1,183, 586 10,234,442 1,261,053 1,183,586 49,969,490 5,417,351 11,638,842 78,732,626 ' $ 2,802,867 $ 2,028,775 $ 51,875,231 $ 7,668,734 11,638,842 10 $ 98,259,646 CITY OF TIGARD OREGON 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, 1997 Total Special Debt Capital (Memorandum ' General Revenue Service Projects Only) Revenues: Taxes $ 6,307,560 $ 1,388,623 $ 3,250 $ 7,699,433 Franchise fees 1,736,933 1,736,933 Special assessments 353,977 353,977 Licenses and permits 386,339 $ 3,395,745 3,782,084 Intergovernmental revenues 2,114,498 1,712,290 7,326 3,834,114 Charges for services 232,451 565,678 798,129 ' Fines and forfeitures 397,637 397,637 Miscellaneous revenues 355,325 673,775 52,642 237,329 1,319,071 Total revenues 11,530,743 6,347,488 1,795,242 247,905 19,921,378 ' Expenditures: Current: Community services 6,537,097 6,537,097 Development services 1,565,162 1,942,756 3,507,918 Policy and administration 1,431,755 268,058 1,699,813 Nondepartmental 184,243 61,414 245,657 Capital improvements 1,792,745 2,443,891 200,526 4,437,162 Debt service 2,117,957 2,117,957 ' Total expenditures 11,511,002 4,716,119 2,117,957 200,526 18,545,604 Revenues over (under) expenditures 19,741 1,631,369 (322,715) 47,379 1,375,774 Other financing sources: ' Proceeds from issuance of bond anticipation notes 4,449,666 175,334 4,625,000 Operating transfer in 112,512 112,512 Total other financing sources 112,512 4,449,666 175,334 4,737,512 ' Revenues and other financing sources over expenditures 19,741 1,743,881 4,126,951 222,713 6,113,286 Fund balances - beginning of year 4,197,570 3,301,112 (2,865,898) 960,873 5,593,657 ' Fund balances - end of year $ 4,217,311 $ 5,044,993 $ 1,261,053 $ 1,183,586 $ 11,706,943 ' The accompanying notes are an integral part of the general purpose financial statements. 4 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, 1997 t General Fund Special Revenue Funds Variance variance ' Favorable Favorable Revised (Unfavor- Revised (Unfavor- Budget Actual able) Budget Actual able) Revenues: ' Taxes $ 6,439,200 $ 6,307,560 $ (131,640) Franchise fees 1,662,300 1,736,933 74,633 Special assessments Licenses and permits 496,000 386,339 (109,661) $ 2,905,170 $ 3,360,265 $ 455,095 Intergovernmental revenues 2,026,354 2,114,498 88,144 1,755,000 1,712,290 (42,710) ' Charges for services 217,000 232,451 15,451 594,150 565,678 (28,472) Fines and forfeitures 280,000 397,637 117,837 Miscellaneous revenues 243,400 355,325 111,925 662,250 633,391 (28,859) Total revenues 11,364,254 11,530,743 166,489 5,916,570 6,271,624 355,054 ' Expenditures: Current: Community services 6,998,062 6,537,097 460,965 5,000 5,000 ' Development services 1,757,886 1,565,162 192,724 2,298,565 1,942,756 355,809 Policy and administration 1,585,420 1,431,755 153,665 296,571 268,058 28,513 Nondepartmental 255,357 184,243 71,114 85,120 61,414 23,706 Contingency 283,500 283,500 310,000 310,000 Capital improvements 389,500 292,745 96,755 4,533,000 2,443,891 2,089,109 ' Debt service Total expenditures 11,269,725 10,011,002 1,258,723 7,528,256 4,716,119 2,812,137 Revenues over (undeo expenditures 94,529 1,519,741 1,425,212 (1,611,686) 1,555,505 3,167,191 ' Other financing sources (uses): Proceeds from issuance of bond anticipation notes ' Operating transfer in 112,512 112,512 Operating transfer out Total other financing sources 112,512 112,512 ' Revenues and other financing sources over (under) expenditures 94,529 1,519,741 1,425,212 (1,611,686) 1,668,017 3,279,703 Fund balances - budgetary basis, ' beginning of year 3,375,500 4,197,570 822,070 2,562,417 3,129,649 567,232 Fund balances - budgetary basis, end of year $ 3,470,029 5,717,311 $ 2,247,282 $ 950,731 4,797,666 $ 3,846,935 ' Adjustments to generally accepted accounting principles basis: Equity in nonbudgeted funds 247,327 Settlement liability accrued on the generally ' accepted accounting principles basis (1,500,000) Fund balances - generally accepted accounting principles basis, , end of year $ 4,217,311 $ 5,044,993 The accompanying notes are an integral part of the general purpose financial statements. , 5 ' Debt Service Funds Capital Projects Funds Total (Memorandum Only) ' Variance Variance Variance Favorable Favorable Favorable (Unfavor- Revised (Unfavor- Revised (Unfavor- Budget Actual able) Budget Actual able) Budget Actual able) 1,416,095 $ 1,388,623 $ (27,472) $ 4,500 $ 3,250 $ (1,250) $ 7,859,795 $ 7,699,433 $ (160,362) 1,662,300 1,736,933 74,633 400,000 353,977 (46,023) 400,000 353,977 (46,023) 3,401,170 3,746,604 345,434 633,000 7,326 (625,674) 4,414,354 3,834,114 (580,240) 811,150 798,129 (13,021) 280,000 397,637 117,637 60,000 52,642 (7,358) 231,000 237,329 6,329 1,196,650 1,278,687 82,037 ' 1,876,095 1,795,242 (80,853) 868,500 247,905 (620,595) 20,025,419 19,845,514 (179,905) ' 7,003,062 6,537,097 465,965 4,056,451 3,507,918 548,533 1,881,991 1,699,813 182,178 340,477 245,657 94,820 593,500 593,500 ' 2,829,200 200,526 2,628,674 7,751,700 2,937,162 4,814,538 6,299,095 6,202,957 96,138 6,299,095 6,202,957 96,138 6,299,095 6,202,957 96,138 2,829,200 200,526 2,628,674 27,926,276 21,130,604 6,795,672 ' (4,423,000) (4,407,715) 15,285 (1,960,700) 47,379 2,008,079 (7,900,857) (1,285,090) 6,615,767 ' 4,322,000 4,449,666 127,666 175,334 175,334 4,322,000 4,625,000 303,000 832,000 832,000 944,512 944,512 (832,000) (832,000) (832,000) (832,000) ' 4,322,000 5,281,666 959,666 (656,666) (656,666) 4,322,000 4,737,512 415,512 (101,000) 873,951 974,951 (1,960,700) (609,287) 1,351,413 (3,578,857) 3,452,422 7,031,279 ' 315,000 387,102 72,102 1,960,700 1,792,873 (167,827) 8,213,617 9,507,194 1,293,577 $ 214,000 1,261,053 1 1,047,053 $ 1,183,586 $ 1,183,586 $ 4,634,760 12,959,616 $ 8,324,856 247,327 ' (1,500,000) ' $ 1,261,053 $ 1,183,586 $ 11,706,943 1 City of Tigard, Oregon Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balances t All Proprietary Fund Type for the fiscal year ended June 30, 1997 , 1 1 Enterprise Operating revenues: , Service charges $ 6,227,765 Miscellaneous 94,270 Total operating revenues 6,322,035 , Operating expenses: ' Salaries and wages 2,792,744 Contracted services 55,034 General and administrative and other 1,687,106 Depreciation 1,100,299 ' Total operating expenses 5,635,183 Operating income 686,852 ' Nonoperating revenue (expense): Interest 838,712 ' Operating transfer out (112,512) Net income 1,413,052 ' Add depreciation on fixed assets donated or acquired from capital contributions that reduces contributed capital 901,457 ' Increase in retained earnings 2,314,509 Retained earnings - beginning of year 6,131,594 ' Retained earnings - end of year $ 8,446,103 1 The accompanying notes are an integral part of the general purpose financial statements. ' 6 City of Tigard, Oregon Pension Trust Funds ' Combined Statement of Plan Net Assets June 30, 1997 ' Cash and investments $ 5,417,351 Net assets held in trust for pension benefits $ 5,417,351 1 7 City of Tigard, Oregon Pension Trust Funds Combined Statement of Changes in Plan Net Assets for the fiscal year ended June 30, 1997 Additions: ' Contributions $ 562,742 Interest 592,200 Total additions 1,154,942 Deductions: Benefit payments and withdrawals 439,431 Increase in net assets 715,511 Net assets held in trust for pension benefits: Beginning of year 4,701,840 End of year $ 5,417,351 City of Tigard, Oregon Combined Statement of Cash Flows All Proprietary Fund Types - Enterprise Funds for the fiscal year ended June 30, 1997 Cash flows from operating activities: Operating income $ 686,852 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 1,100,299 Loss on disposal of fixed assets 43,863 Change in assets and liabilities: Accounts receivable (84,662) Assessments receivable 3,839 Inventory (43,524) Customer deposits (58,971) Accounts payable and accrued liabilities 477,335 Accrued vacation payable (21,126) Deferred revenue (2,689) Due from other fund 85 r Net cash provided by operating activities 2,101,301 Cash flows from capital and related financing activities: Capital contributions 1,303,029 Acquisition of fixed assets (1,434,509) Net cash used in capital and related financing activities (131,480) Cash flows from investing activities: Interest earnings 838,712 Net increase in cash and cash equivalents 2,808,533 Cash and cash equivalents - beginning of year 13,840,538 Cash and cash equivalents - end of year $ 16,649,071 Supplemental schedule of noncash, capital and related financing activities: Contributed sewer, storm and water lines $ 1,636,336 Restatement of beginning contributed capital $ 192,534 Cash and cash equivalents are displayed on the balance sheet as follows: Cash and investments $ 10,545,173 Restricted cash and investments 6,103,898 $ 16,649,071 The accompanying notes are an integral part of the general purpose financial statements. 9 1 i 1 1 arroFncaio ~ OREGON 1 1 I 1 1 i 1 Notes to General Purpose Financial Statements L- r. r M City of Tigard, Oregon Notes to General Purpose Financial Statements 1. Summary of Significant Accounting Policies: The City of Tigard, under its Charter of 1962, is governed by an elected mayor and four council members who comprise the City Council. The City has no component units. Measurement Focus The financial statements of the Governmental Fund Types are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the combined balance sheet. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Agency funds do not present operating results. The Proprietary Fund Type (Enterprise Funds) and Pension Trust Fund are accounted for using r a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the combined balance sheet. , Bases of Accounting The Governmental Fund Types and Agency Fund are maintained on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded in the accounting period in which they become measurable and available and expenditures are recorded in the time liabilities are incurred. Revenues which were measurable and available at June 30, 1997 under the modified accrual basis of accounting were as follows: • State, county, and local shared revenues for cigarette tax, liquor tax and other. • Property tax revenues and assessment liens principal installments which are collected within sixty days following year end. The accrual basis of accounting is utilized by the Proprietary Fund Type and Pension Trust Fund. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The proprietary funds have applied all Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the Committee and Accounting Procedure issued on or before November 30, 1989, unless those pronouncements conflict with or contradict Governmental Accounting Standards Board (GASB) pronouncements. t, The bases of accounting described above are in accordance with generally accepted accounting principles. 10 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 1. Summary of Significant Accounting Policies, Continued: Receivables Receivables for state, county and local shared revenues are recorded as revenue in the Governmental Funds when they are determined to be measureable and available. Receivables of the Enterprise Funds are recorded as revenue when earned. Substantially all accounts receivable for sewer and water service are either current or less than 30 days delinquent and are considered collectible. Therefore, an allowance for uncollectible accounts has not been provided. All accounts receivable 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 City. Assessments in the governmental funds are recognized as receivables at the time property owners are assessed for property improvements. Assessments receivable collected within sixty days after year end are considered measurable and available and are recognized as revenue. All other assessments receivable are recorded as deferred revenue and, accordingly, have not been recorded as revenue. Accrued interest on delinquent assessments which has been collected within sixty days subsequent to year end is considered measurable and available is recognized as revenue. The remaining accrued interest on delinquent accounts is offset by a deferred revenue account and, accordingly, has not been recorded as revenue. Inventories Inventories of parts, materials and supplies are stated at cost on the first-in, first-out basis and are charged to expenditures as used. Restricted Cash and Investments Cash and investments which may only be used for construction of fixed assets in accordance with applicable laws and regulations have been reported as restricted cash and investments on ' the combined balance sheet. 11 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 1. Summary of Significant Accounting Policies, Continued: Investments Investments included in cash and investments are stated at amortized cost (cost plus amortization of premium or discounts). Investments in the deferred compensation plans and pension trust funds are stated at market. For purposes of the statement of cash flows, the City considers the Enterprise Funds' cash and investments with remaining maturities of three months or less and the Oregon State Treasurer's Investment Pool to be cash. 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 System 40 years Storm Drainage System 40 years Water System 50 years Equipment 5 to 10 years Autos and Trucks 6 years Depreciation expense on fixed assets donated or acquired from capital contributions is recognized as a reduction of contributed capital. Such reduction is recorded by a transfer from retained earnings. Normal maintenance and repairs are charged to operations as incurred. Major additions, improvements and replacements are capitalized. Gains or losses from sales or retirements of fixed assets are included in operations. General Fixed Assets General fixed assets are stated at historical cost or estimated cost when historical cost is not available. Fixed assets are charged to expenditures in the Governmental Fund Types as purchased and capitalized in the General Fixed Assets Account Group. Maintenance and repairs of fixed assets are charged to expenditures in the Governmental Fund Types as incurred and are not capitalized. As fixed assets are disposed of, the historical cost or estimated historical cost is removed from this account group; proceeds from sales of general fixed assets are recorded as General Fund revenue. Depreciation is not computed on general fixed assets. 12 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 1. Summary of Significant Accounting Policies, Continued: General Fixed Assets, Continued Expenditures for public domain fixed assets (streets, sidewalks, curbs and gutters, lighting systems and similar assets) that are immovable and of value only to the City as a governmental unit are reported as expenditures as incurred and are not capitalized in the General Fixed Assets Account Group. Long-Term Debt All unmatured long-term debt is recorded in the General Long-Term Debt Account Group. Periodic principal and interest repayments on bonded debt are made from special assessments and property tax levies and are recorded in the Debt Service Funds. Bond anticipation notes are expected to be repaid by rolling over the bonds to new bond anticipation notes or by issuing long-term Bancroft Bonds. The accrued vacation liability will be paid from the various governmental funds. The City has no long-term debt in its Enterprise Funds. Accrued Vacation Payable Accumulated vested vacation pay is accrued in the Enterprise Funds as it is earned by employees. In Governmental Fund Types the amounts, if any, expected to be liquidated with expendable available resources are accrued as liabilities of the funds and the amount payable from future resources is recorded in the General Long-Term Debt Account Group. Sick pay, which does not vest, is recorded in all funds when leave is taken. Contributed Capital 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. 13 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 1. Summary of Significant Accounting Policies, Continued: Budget A budget is prepared for each governmental fund except for the Fiduciary Fund Types, essentially in accordance with the modified accrual basis of accounting for governmental funds, and on the accrual basis of accounting for the Enterprise Funds, and in accordance with the legal requirements set forth in Oregon Local Budget Law. However, as set forth in Note 3, certain budgetary accounting practices are not in accordance with generally accepted accounting principles but are acceptable budgetary practices under Oregon Local Budget Law. Accordingly, the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (Non-GAAP) and Actual - All Governmental Fund Types is presented as a comparison to budget and is reconciled to the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types. The resolution authorizing appropriations sets the maximum level of expenditures for each fund. Expenditure appropriations may not be legally overexpended. Appropriations lapse at the end , of each fiscal year. Appropriations are made at the major program level for each fund, for example, Community Services, Public Works, Development Services, Policy and Administration, Nondepartmental, Debt Service, Capital Improvements and Contingency. The detail budget document, however, is required to contain more detailed information for the above-mentioned expenditure categories. Budget amounts include original approved amounts and all subsequent appropriations transfers approved by the City Council. After budget approval, the City Council may approve supplemental budgeted appropriations if an occurrence, condition, or need exists which had not been ascertained at the time the budget was adopted. A supplemental budget requires hearings before the public, publications in newspapers and approval by the City Council. Original and supplemental budgets may be modified by the use of appropriations transfers between the levels of control. Such transfers require approval by the City Council. Management may not amend the budget without Council approval. During the fiscal year ended June 30, 1997, several appropriation transfers were made. The budgets for each of the governmental funds include capital outlay expenditures in each program for capital outlays applicable to that program. Capital outlay expenditures benefiting the City generally, and not an identifiable program, are reported separately. Debt service is also budgeted separately. Total (Memorandum Only) Column on Combined Financial Statements The total (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. 14 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 2. Fund Types and Account Groups: The City's financial operations are accounted for in the following funds and account groups: Governmental Fund Types General Fund - This fund accounts for the City's general operations. It is used to account for all transactions not specifically related to the City's other funds. Special Revenue Funds: Forfeitures From Criminal Activity Fund - This fund accounts for funds and property seized from criminals in connection with crimes committed. State Tax Street Fund - This fund accounts for revenues received from state gasoline taxes which are to be expended as specified in the Constitution of the State of Oregon, Article IX, Section 3. Parks SDC Fund - This fund accounts for system development charges for major improvements to recreational facilities within the City. County Gas Tax Fund - This fund accounts for road tax monies received from Washington County for the maintenance and operation of roads. Traffic Impact Fund - This fund accounts for traffic impact fees charged for new development. This voter approved county-wide fee takes the place of the City's Street SDC Fund. Funds will be used for highway and transit capital improvements approved by the County that provide additional capacity to the major transportation system. Electrical Inspection Fund - This fund accounts for fees charged for permits and inspection of electrical improvements. j Underground Utility Fund - This fund accounts for monies received from developers for future underground utility improvements. FEMA Disaster Fund - This fund accounts for the flood disaster and wind storm clean up and recovery activities. Activities are anticipated to be funded by Federal Disaster Relief Funds and a transfer from the Storm Drainage Fund. Worker's Compensation Fund This fund accounts for payments made for the Worker's Compensation insurance plan. Building Fund - This fund accounts for fees charged for building inspection and plan review activities. 15 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 2. Fund Types and Account Groups, Continued: Governmental Fund Types, Continued Special Revenue Fund, Continued: Urban Services Fund - This fund accounts for all revenues and expenditures related to services provided in the unincorporated Bull Mountain area. The City of Tigard began providing services to this area after signing an intergovernmental agreement with Washington County. Urban Services TIF Fund - This Fund accounts for traffic impact fees collected in the unincorporated Bull Mountain area. Funds will be used for highway and transit capital improvements approved by the Washington County that provide additional capacity to the major transportation system. Tree Replacement Fund - This fund accounts for fees charged to developers in lieu of saving existing trees. Debt Service Funds: General Obligation Bond Debt Service Fund - This fund accounts for payment of general obligation bond principal and interest. The principal source of revenue is from property taxes. Bancroft Bond Debt Service Fund - This fund accounts for payment of Bancroft improvement bond principal and interest. The principal source of revenue is the collection of assessments against benefited property, interest and contributions from other funds for their share of costs. Capital Projects Funds: Local Improvement Capital Projects Fund - This fund accounts for construction of Local Improvement District projects from the sale of bond anticipation notes and certain other debt. Park Levy Capital Improvement Fund - This fund accounts for proceeds from the sale of certificates of participation and improvements to the City's park system. 16 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 2. Fund Types and Accounts Groups, Continued: Proprietary Fund Types Capital Projects Funds, Continued: 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. Enterprise Funds: Sewer Fund - This fund accounts for the City's sewer utility operations. Storm Drainage Fund - This fund accounts for the City's storm drainage operations. ' Storm Drainage Fund (budgetary basis financial statements only) Water Quality and Quantity Fund (budgetary basis financial statements only) Water Fund - This fund accounts for the City's water operations. Water General Fund (budgetary basis financial statements only) Water Systems Development Fund (budgetary basis financial statements only) Water Capital Projects Fund (budgetary basis financial statements only) Fiduciary Fund Types: Deferred Compensation Fund - This agency fund accounts for monies withheld from employees under deferred compensation plans and earnings on investment of those funds. Pension Trust Funds - These funds account for the City's General and Water Fund employee defined contribution plans. Account Groups General Fixed Assets - This account group accounts for the City's investment in fixed assets, with the exception of those assets recorded in the Enterprise Funds. General Long-Term Debt - This account group accounts for general long-term indebtedness of the City. 17 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 3. Reconciliation of Budgetary Basis to Generally Accepted Accounting Principles Basis: The budget of the City is prepared differently from generally accepted accounting principles (Note 1). Therefore, the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (Non-GAAP Basis) and Actual - All Governmental Fund Types is presented on the budgetary basis and the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types is presented on a generally accepted accounting principles basis. The following is a reconciliation of the differences between the budgetary basis and generally accepted accounting principles basis for revenues, expenditures and other financing sources (uses): r Special Debt Capital General Revenue Service Projects Fund Funds Funds Funds Revenues, budgetary basis $ 6,271,624 Revenue in nonbudgeted funds 75,864 Revenue, generally accepted accounting principles basis $ 6,347,488 Expenditures, budgetary basis $ 10,011,002 $ 6,202,957 Litigation settlement (Note 17) 1,500,000 Debt service payments treated as expenditures on a budgetary basis (4,085,000) Expenditures, generally accepted accounting principles basis $ 11,511,002 $ 2,117,957 Other financing sources (uses), budgetary basis $ 5,281,666 $ (656,666) Transfer from Capital Projects Funds to Debt Service Fund on a budgetary basis, not recorded on a generally accepted accounting principles basis (832,000) 832,000 Other financing sources (uses), generally accepted accounting principles basis $ 4,449,666 $ 175,334 18 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 4. Cash and Investments: The City maintains a cash and investment pool that is available for use by all funds, except the Deferred Compensation Fund and Pension Trust Fund. Each fund type's portion of this pool is displayed on the combined balance sheet as "cash and investments". The investments of the Deferred Compensation Fund and Pension Trust Fund are held separately from those of other City funds. Cash and investments are comprised of the following at June 30, 1997: Cash on hand $ 3,600 Cash held by Department of Finance, Washington County 37,715 Deposits with financial institutions 853,365 Investments 37,059,996 37,954,676 Cash and investments are displayed on the balance sheet as follows: Cash and investments $ 31,850,778 Restricted cash and investments 6,103,898 $ 37,954,676 Deposits Deposits with financial institutions. include bank demand deposits and time deposit accounts. The total bank balance is $1,210,655 (book balance is $853,365). Of these deposits, $100,000 was covered by federal depository insurance and $1,110,655 was fully collateralized with securities held by financial institutions acting as custodians for the City in the City's name. Oregon Revised Statutes require the depository institution to maintain on deposit, with a collateral pool manager, securities having a value not less than 25 percent of the outstanding certificates of participation issued by the pool manager. Investments State statutes authorize the City to invest primarily in general obligations of the U. S. Government and its agencies, certain bonded obligations of Oregon municipalities, bank r repurchase agreements, bankers' acceptances, certain commercial paper and the State Treasurer's Investment Pool, among others. 19 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 4. Cash and Investments, Continued: Investments, Continued The City's investments are categorized below to give an indication of the level of credit risk , assumed by the City at June 30, 1997. Category 1 includes investments that are insured or for which the securities are held by the City in the City's name. Category 2 includes uninsured investments for which the securities are held in the City's name by the trust department of the financial institution selling the security to the City. Category 3 includes uninsured investments for which the securities are held by the financial institution selling the security to the City or by its trust department, but not in the City's name. The City does not use brokers or dealers for its investments. Category Carrying Market 1 2 3 Amount Value U.S. Government Securities $ 10,444,258 $ 10,444,258 $ 10,496,538 Held by custodians under deferred compensation and pension plans - mutual fund investments 7,668,734 7,668,734 State Treasurer's Invest- ment Pool 18,947,004 18,947,004 Total investments $ 37,059,996 $ 37,112,276 5. Assessment Liens Receivable: Assessment liens receivable represent the uncollected amounts levied against benefited property for the cost of local improvements. Because the assessments are liens against the benefited property, an allowance for uncollectible amounts is not deemed necessary. Substantially all assessments are payable over a period of 10 to 20 years. Assessments bear interest to 7 to 13 percent. At June 30, 1997, the portion of the assessments receivable balance that represents delinquent accounts is approximately $64,600. i 20 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 6. Due To/Due From Other Funds: Amounts are comprised of the following: Interfund Interfund Fun Receivables Payables General Fund $ 119,370 Debt Service Fund: General Obligation Bond Debt Service Fund $ 11,583 Bancroft Bond Debt Service Fund 832,000 Capital Projects Fund: Local Improvement Capital Projects Fund 832,000 Enterprise Fund: Water Fund 4,725 Storm Drainage Fund 112,512 $ 956,095 $ 956,095 1 7. Fixed Assets: Fixed assets and accumulated depreciation by major classes in the Enterprise Funds at June 30, 1997 are as follows: Balances Reclassifications! Balances June 30, Restatement June 30, 1996 (Note 9) Additions Retirements 1997 Land $ 901,746 $ 350,272 $ 1,252,018 Building 1,038,625 1,490 1,040,115 Sewer system 8,604,964 318,633 8,923,597 Storm drainage system 7,977,788 321,212 8,299,000 Water system 26,586,629 1,879,370 28,465,999 Equipment 899,751 $ 62,596 181,169 $ (57,525) 1,023,395 Autos and trucks 781,470 (62,596) 18,699 (52,261) 747,908 46,790,973 $ - $ 3,070,845 $ (109,786) 49,752,032 Less accumulated depreciation (15,426,820) $ 192,534 $ (1,100,299) $ 65,923 (16,268,662) $ 31,364,153 $ 33,483,370 21 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 7. Fixed Assets, Continued: Changes in fixed assets in the General Fixed Asset Account Group for the year ended June 30, 1997 are as follows: Balances Balances June 30, June 30, 1996 Additions Retirements 1997 Land $ 3,280,704 $ 407,123 $ (164,600) $ 3,523,227 Buildings 4,289,638 245,847 4,535,485 Equipment 863,197 99,313 (33,453) 929,057 Autos and trucks 1,134,580 153,938 (147,817) 1,140,701 Office equipment 1,372,277 260,252 (122,157) 1,510,372 $ 10,940,396 $ 1,166,473 $ (468,027) $ 11,638,842 8. Long-Term Debt: Bonds Payable Bonds payable transactions for the year ended June 30, 1997 and future maturities of bond principal and interest are as follows: Outstanding Outstanding June 30, Paid June 30, 1996 During Year 1997 Interest General Obligation Bonds: General obligation bond issues; interest rates 3.40% to 4.75%: Fiscal year: 1998 $ 1,385,000 $ 1,385,000 $ 80,618 1999 1,490,000 $ 1,490,000 132,925 2000 1,570,000 1,570,000 72,822 2001 210,000 210,000 36,515 2002 - 2004 695,000 695,000 49,626 $ 5,350,000 $ 1,385,000 $ 3,965,000 $ 372,506 22 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 8. Long-Term Debt, Continued: Bond Payable, Continued Outstanding Paid Called Outstanding June 30, During During June 30, 1996 Year Year 1997 Interest Bancroft Improvement Bonds: General obligation improvement bond issues; interest rates from 4.1 % to 11.75%; payable first from assessments to benefited properties and second, from the general credit of the City: Fiscal year: 1997 $ 155,000 $ (145,000) $ 10,000 1998 135,000 135,000 $ 58,515 1999 145,000 145,000 49,903 2000 210,000 $ (35,000) 175,000 40,584 2001 65,000 (65,000) 35,760 2002 - 2006 735,000 (40,000) 695,000 109,107 $ 1,445,000 $ (145,000) $ (140,000) $ 1,160,000 $ 293,869 During fiscal year 1997, the City issued $4,625,000 in bond anticipation notes dated June 2, 1997, due on December 1, 1998, with an interest rate of 4.05% payable on June 1 and December 1 of each year. The notes are collateralized by and payable from the assessment bonds to be sold upon completion of the improvements. The net proceeds were used to retire $4,085,000 in bond anticipation notes dated December 1, 1995. Other Long-Term Debt Other long-term debt recorded in the General Long-Term Debt Account Group and the changes thereto during the year ended June 30, 1997 are as follows: Balance Balance June 30, June 30, 1996 Additions Deletions 1997 Accrued vacation payable $ 370,722 $ 406,534 $ 370,722 $ 406,534 Bond anticipation notes due ' December 1, 1998; interest rate 4.05% $ - $ 4,625,000 $ - $ 4,625,000 i 23 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 9. Contributed Capital: The changes in contributed capital were as follows: Balance - beginning of year, as previously reported $ 39,292,945 Restatement of beginning contributed capital 192,534 Balance - beginning of year, as restated 39,485,479 Transfer of depreciation on certain contributed fixed assets from retained earnings (901,457) Contributions from customers 2,939,365 Balance - end of year $ 41,523,387 The beginning fund balance has been restated to properly report contributed capital at June 30, 1996. 10. Operating Transfers: Operating transfers in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types for the year ended June 30, 1997, do not equal because of transfers made with the Storm Drainage Fund (an Enterprise Fund). The following is a reconciliation of operation transfers for the year: Transfers Transfers In Out Total operating transfers included in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types $ 112,512 Transfer to FEMA Disaster Fund from the Storm Drainage Fund $ 112,512 $ 112,512 $ 112,512 24 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 11. Retirement Plans: The City contributes to retirement plans on behalf of all eligible employees. At June 30, 1997 > the following employee groups were covered by the following retirement plans: Group Retirement Plan Management/Professional Staff International City Managers (Nonunion) Association Retirement Corporation (ICMARC) Money Purchase Plan Oregon Public Employees Union Employees ICMARC Money Purchase Plan Tigard Water Fund Employees Ameritus 1 Tigard Police Officers State of Oregon Public Employes Retirement System (PERS) Oregon Public Employes Retirement System (OPERS) Plan Description The City is a participating employer in the Oregon Public Employes 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 Employes Retirement System, P.O. Box 23700, Tigard, Oregon 97281-3700. Funding Policy The City's annual required contribution rate is currently 9.80% of covered payroll and was increased effective July 1, 1997 to 9.89%, based upon the December 31, 1995 valuation. The next scheduled valuation date is December 31, 1997. The City is required by State Statute to contribute its current employer rate of 9.80% of covered plus employee contributions of 6% of covered payroll. 25 r City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 11. Retirement Plans, Continued: Oregon Public Employes Retirement System (OPERS), Continued Annual Pension Cost Because all OPERS participating employers are required by law to submit the contributions as adopted by the OPERS Retirement Board, there is no net pension obligation to report and the annual contributions are equal to the annual pension cost. For the fiscal years ended June 30, 1997, 1996 and 1995, the City's annual pension cost was approximately $404,000, $359,000 and $318,000, respectively. The City's pension liability and the annual required contribution rate were determined as part of the December 31, 1995 actuarial valuation using the entry age actuarial cost method. The unfunded actuarial accrued liability in amortized as a level percentage of covered payroll over a 30-year period. The actuarial assumptions include a rate of return on investment of present and future assets of 8% per year, projected salary increase of 5% per year, and cost of living adjustments of 2% per year for post-retirement benefits. The following table presents a schedule of funding progress for the City's multiple-employer ' pension plan: Unfunded Actuarial Unfunded Liability Actuarial Actuarial Actuarial as a Percent Actuarial Value of Accrued Accrued Funded Covered of Covered Valuation Date Assets Liability Liability Ratio Payroll Payroll December 31, 1993 $ 5,846,165 $ 5,738,843 $ (107,322) 102 % $ 1,918,181 (5.6)96 December 31, 19% 7,946,463 7,616,463 (330,001) 104 2,353,479 (14.0) 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. 26 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 11. Retirement Plans, Continued: ICMARC Plans, Continued Required and actual contributions to the plan were $562,742 for the year ended June 30, 1997. Current year covered payroll amounted to $5,395,146. Contributions as a percentage of covered payroll was 10.4 percent. Ameritus Plan Beginning January 1, 1994 the City assumed the operations of the Southeast Washington County Joint Agency (the Agency). In addition, the City assumed responsibility of the Agency's defined contribution retirement plan (Ameritus Plan). The Ameritus Plan participants were transferred to the ICMARC Plan on January 1, 1994 and no further contributions to the Ameritus Plan will be made. Ameritus Plan assets accumulated through January 1, 1994 will remain in the plan. Employees may withdraw funds upon retirement or termination of employment. The fiduciary holds the funds in trust and makes distributions as provided by the plan. Since the plan is administered by the City, the assets, equity and operations of the plan are accounted for in the Water Fund Employees Pension Plan Fund, a pension trust fund. Deferred Compensation Plans The City offers certain employees deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans, available to City employees, permits them 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 is not available to employees until termination, retirement, death or unforeseeable emergency. All amounts of compensation deferred under the plans, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plans), subject only to the claims to the City's general creditors. Participants' rights under the plans, are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. The City has no liability for losses under the plans but does have the duty of due care that would be required of an ordinary prudent investor. ' 27 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 12. Transactions with Unified Sewerage Agency of Washington County: The City collects charges for treatment of City sewage on behalf of the Unified Sewerage Agency of Washington County (USA) and remits all collections to USA except for 30 percent of sewer service charges collected, 20 percent of connection charges collected and a certain amount for revenue bond debt service, in accordance with an agreement between the City and USA dated June 25, 1991. Payments of $6,132,193 were made to USA during 1997 under this agreement. The City has a similar agreement with the Regional Surface Water Management Agency, which is an affiliate of USA for storm water systems. Payments made to the Agency during 1997 under the agreement were $243,694. The net amount retained by the City is reported as revenue in the Enterprise Funds in the Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balance - All Proprietary Fund Types - Enterprise Funds. Revenues are reported net because the City acts in a fiduciary capacity on behalf of USA. 13. Urban Services Fund: The City of Tigard entered into an intergovernmental agreement with Washington County in June 1997. The agreement provided that the City would take over most development services in certain unincorporated areas adjacent to the City of Tigard boundaries. The County agreed to pay the City $220,000 on May 14, 1997 to cover permits in process and to provide the City with funds for startup costs of this new program. Under the agreement, the City provides permitting, building inspection, planning and engineering services. In addition, the City assumed code enforcement responsibilities for the area. The City is entitled to all development revenues ' generated from development activity in the area. During 1997, the City established a new fund called the Urban Services Fund. This fund is used to record revenues and expenses related to urban services activities. In addition, the City established an Urban Services Traffic Impact Fee Fund to record revenues collected from the Urban Services area. These funds are to be used for road improvements in the area. 28 ' City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 14. Segment Information for Enterprise Funds: The City's Sewer Fund and Storm Drainage Fund account for the acquisition, operation, and maintenance of sewer and storm drainage systems which are supported by user 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, ' 1997 is as follows: Storm Sewer Drainage Water Fund Fund Fund Total Operating revenue $ 1,666,183 $ 594,162 $ 4,061,690 $ 6,322,035 Depreciation 259,696 153,065 687,538 1,100,299 Operating income (loss) 770,843 (174,409) 90,418 686,852 Net income (loss) 994,755 (198,528) 616,825 1,413,052 Current capital contributions 166,793 114,229 2,658,343 2,939,365 Fixed asset additions 242,027 292,990 899,492 1,434,509 Networking capital 1,601,057 316,314 8,464,851 10,382,222 Total assets 11,544,372 8,707,018 31,623,841 51,875,231 Total equity 10,562,256 8,148,773 31,258,461 49,969,490 15. Passage of 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 least ten years; ' 3. taxes to repay bonded debt authorized by the state constitution; 4. taxes to repay existing bonded debt for capital construction, and 5. taxes to repay new bonded debt for capital construction if approved by voters. 'I 29 City of Tigard, Oregon Notes to General Purpose Financial Statements, Continued 15. Passage of Constitutional Property Tax Limitations, Continued: During May 1997, Oregon voters approved Measure 50 which limits taxes on each property by reducing the 1997-98 assessed value of each property to 90% of its 1995-96 value. Measure 50 also limits future growth of taxable value to 3% per year with certain exceptions. Measure 50 also establishes permanent tax rates for Oregon's local taxing districts, which replace the former tax base amounts of the districts. The financial impact of the implementation of Measure 50 to the City is estimated to be a reduction of General Fund property tax revenue of $76,000. 16. Implementation of GASB Statements: The City has implemented GASB No. 25, Financial Reporting for Defined Benefit Pension Plaits and Note Disclosures for Defined Contribution Plan. The City has also elected to early implement GASB No. 27, Accounting for Pensions by State and Local Governmental Employers. Although GASB No 25 requires restatement when prior periods are presented, the affect of the pronouncement was not material to the City's prior year financial statements. As such, no restatement of the prior year financial statements have been made. 17. Contingencies: r At June 30, 1997, the City was a defendant in a lawsuit that was pending in the Circuit Court for Washington County, Oregon. The plaintiffs were seeking damages for an alleged taking of their property as a result of the City's decision to impose certain requirements upon the plaintiffs for easements as a condition of allowing the plaintiffs to erect improvements on property owned by the plaintiffs within the City. The plaintiffs were claiming damages of inverse condemnation and violation of the Federal Civil Rights Act and were seeking various damages of approximately $2,400,000. On November 18, 1997, the City and plaintiff completed a court-approved settlement agreement whereby the City will pay the plaintiffs $1.5 million by December 10, 1997. In addition, the City will issue necessary building permits to allow the plaintiffs to expand their retail business. The City will receive an easement from the plaintiffs which will allow the City to build a pedestrian and bicycle trail. As a result of the settlement, a liability in the amount of $1.5 million has been accrued in the ' General Fund as of June 30, 1997. 30 a r Supplementary Data 1 1 1 1 1 1 1 1 1 1 1 A R~ CITwoofile OREGON 1 1 General Fund This fund accounts for the financial operations of the City which are not accounted for in any other fund. Principal resources are property taxes, franchise fees, intergovernmental revenues, and licenses ' and permits. Primary expenditures in the General Fund are made for police protection, community development and administration. I~ City of Tigard, Oregon General Fund ' Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Revised Favorable ' Budget Actual (Unfavorable) Revenues: Taxes $ 6,439,200 $ 6,307,560 $ (131,640) Franchise fees 1,662,300 1,736,933 74,633 Licenses and permits 496,000 386,339 (109,661) Intergovernmental revenues 2,026,354 2,114,498 88,144 Charges for services 217,000 232,451 15,451 Fines and forfeitures 280,000 397,637 117,637 , Miscellaneous revenues 243,400 355,325 111,925 Total revenues 11,364,254 11,530,743 166,489 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 3,375,500 4,197,570 822,070 $ 14,7394754 $ 15,728,313 $ 988,559 Revised Budgeted Variance Appropriations Actual Favorable Expenditures: Community services $ 6,998,062 $ 6,537,097 $ 460,965 Development services 1,757,886 1,565,162 192,724 Policy and administration 1,585,420 1,431,755 153,665 Nondepartmental 255,357 184,243 71,114 Contingency 283,500 283,500 Capital improvements 389,500 292,745 96,755 Total expenditures 11,269,725 $ 10,011,002 $ 1,258,723 UNAPPROPRIATED ENDING FUND BALANCE 3,470,029 $ 14,739,754 , 31 I 1 1 Special Revenue Funds The Special Revenue Funds account for revenue derived from specific taxes or other earmarked revenue sources which are legally restricted to finance particular functions or activities. Funds included in this fund category are: • Forfeitures From Criminal Activity Fund • State Tax Street Fund • Parks SDC Fund • County Gas Tax Fund • Traffic Impact Fund • Electrical Inspection Fund • Underground Utility Fund • FEMA Disaster Fund • Workers' Compensation Fund • Building Fund • Urban Services Fund Urban Services - TIF Fund Tree Replacement Fund ail II City of Tigard, Oregon Special Revenue Funds Combining Balance Sheet June 30, 1997 Forfeitures From State County Tree Criminal Tax Parks Gas Traffic Electrical Underground Workers' Urban Urban Replace- Activity Street SDC Tax Impact Inspection Utility Compensation Building Services Services - ment Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund TIF Fund Fund Total ASSETS Cash and investments $ 2,160 $ 152,898 $1,028,425 $ 24,391 $2,735,049 $ 182,857 $ 152,960 $ 111,847 $ 356,238 $ 373,436 $ 35,480 $ 172,966 $ 5,328,707 Accounts receivable 50,000 50,000 Assessment liens receivable 162,383 162,383 Total assets $ 2,160 $ 202,898 $1,028,425 $ 24,391 $2,897,432 $ 182,857 $ 152,960 $ 111,847 $ 356,238 $ 373,436 $ 35,480 $ 172,966 $ 5,541,090 LIABILITIES AND FUND BALANCES W N Liabilities: Accounts payable $ 41,521 $ 2,172 $ 63,158 $ 67 $ 182,719 $ 289,637 Deferred revenues 142,017 142,017 Customer deposits 21,684 38,200 4,359 64,443 Total liabilities 63,405 2,172 243,375 4,426 182,719 496,097 Fund balances, unreserved $ 2,160 139,493 1,026,253 $ 24,391 2,654,057 178,431 $ 152,960 $ 111,847 $ 356,238 190,717 $ 35,480 $ 172,966 5,044,993 Total liabilities and fund balances $ 2,160 $ 202,698 $1,028,425 $ 24,391 $2,897,432 $ 182,857 $ 152,960 $ 111,847 $ 356,238 $ 373,436 $ 35,480 $ 172,966 $ 5,541,090 City of Tigard, Oregon Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances for the fiscal year ended June 30, 1997 Forfeitures From State County Tree Criminal Tax Parks Gas Traffic Electrical Underground FEMA Workers' Urban Urban Replace- Activity Street SDC Tax Impact Inspection Utility Disaster Compensa- Building Services Services - ment Fund Fund Fund Fund Fund Fund Fund Fund tion Fund Fund Fund TIF Fund Fund Total Revenues: Licenses and permits $1,713,826 $ 311,940 $ 1,068,654 $ 265,845 $ 35,480 $ 3,395,745 Intergovernmental revenues $1,565,218 $147,072 1,712,290 Charges for services 6,861 $ 558,817 565,678 Miscellaneous revenues $ 1,160 71,765 55,797 1,574 125,426 7,542 $ 47,553 $ 131,006 $ 40,384 14,767 510 $176,291 673,775 Total revenues 1,160 1,643,844 614,614 148,646 1,839,252 319,482 47,553 131,006 40,384 1,083,421 266,355 35,480 176,291 6,347,488 W Expenditures: Ca Development services 770,452 107,944 51,313 189,174 21,702 726,533 75,638 1,942,756 Policy and administration 132,550 37,229 18,685 79,594 268,058 Nondepartmental 28,075 7,019 5,264 21,056 61,414 Caphal improvements 983,014 264,922 1,192,630 3,325 2,443,891 Total expenditures 1,914,091 264,922 152,192 1,243,943 213,123 21,702 827,183 75,638 3,325 4,716,119 Revenues over (under) expenditures 1,160 (270,247) 349,692 (3,546) 595,309 106,359 47,553 109,304 40,384 256,238 190,717 35,480 172,966 1,631,369 Other financing sources: Operating transfer in from Storm Drainage Fund 112,512 112,512 Revenues and other financing sources over (under) expenditures 1,160 (270,247) 349,692 (3,546) 595,309 106,359 47,553 221,816 40,384 256,238 190,717 35,480 172,966 1,743,881 FUND BALANCES, beginning of year 1,000 409,740 676,561 27,937 2,058,748 72,072 105,407 (221,816) 71,463 100,000 - 3,301,112 FUND BALANCES, end of year $ 2,160 $ 139,493 $1,026,253 $ 24,391 $2,654,057 $ 178,431 $ 152,960 $ - $ 111,847 $ 356,238 $ 190,717 $ 35,480 $ 172,966 $ 5,044,993 City of Tigard, Oregon Forfeitures From Criminal Activity Fund Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Budget Actual (Unfavorable) Revenues: Miscellaneous $ 25,000 $ 995 $ (24,005) Interest 1,000 165 (835) Total revenues 26,000 1,160 (24,840) BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 17,000 1,000 (16,000) $ 43,000 $ 2,160 $ (40,840) ' Budgeted Variance Appropriations Actual Favorable Expenditures: Community services $ 5,000 $ - $ 5,000 UNAPPROPRIATED ENDING FUND BALANCE 38,000 $ 43,000 34 City of Tigard, Oregon State Tax Street Fund Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 i Variance Revised Favorable Budget Actual (Unfavorable) Revenues: State gas tax $ 1,605,000 $ 1,565,218 $ (39,782) Lighting subdivisions 20,000 6,861 (13,139) Interest 30,000 14,720 (15,280) Miscellaneous 50,000 57,045 7,045 Total revenues 1,705,000 1,643,844 (61,156) BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 409,330 409,740 410 $ 2,114,330 $ 2,053,584 $ (60,746) Revised Budgeted Variance Appropriations Actual Favorable Expenditures: Development services $ 921,008 $ 770,452 $ 150,556 Policy and administration 146,410 132,550 13,860 Nondepartmental 38,912 28,075 10,837 Capital improvements 1,008,000 983,014 24,986 Total expenditures $ 2,114,330 $ 1,914,091 $ 200,239 35 City of Tigard, Oregon Parks SDC Fund Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Favorable Budget Actual (Unfavorable) Revenues: System development charges $ 574,150 $ 558,817 $ (15,333) Interest 35,000 50,794 15,794 Miscellaneous 5,003 5,003 Total revenues 609,150 614,614 5,464 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 599,000 676,561 77,561 $ 1,208,150 $ 1,291,175 $ 83,025 Budgeted Variance Appropriations Actual Favorable Expenditures: Capital improvements $ 1,100,000 $ 264,922 $ 835,078 Contingency 75,000 75,000 Total expenditures 1,175,000 $ 264,922 $ 910,078 UNAPPROPRIATED ENDING FUND BALANCE 33,150 $ 1,208,150 36 City of Tigard, Oregon County Gas Tax Fund Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 i 1 Variance ' Favorable Budget Actual (Unfavorable) Revenues: County gas taxes $ 150,000 $ 147,072 $ (2,928) Interest 1,500 1,574 74 Total revenues 151,500 148,646 (2,854) BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATIONS 15,326 27,937 12,611 ' $ 166,826 $ 176,583 $ 9,757 Budgeted Variance Appropriations Actual Favorable Expenditures: Development services $ 107,979 $ 107,944 $ 35 Policy and administration 40,797 37,229 3,568 Nondepartmental 9,728 7,019 2,709 Total expenditures 158,504 $ 152,192 $ 6,312 UNAPPROPRIATED ENDING FUND BALANCE 8,322 $ 166,826 37 City of Tigard, Oregon Traffic Impact Fund Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 i Variance Budget Actual Favorable Revenues: Traffic impact fees $ 1,211,150 $ 1,713,826 $ 502,676 Interest 120,000 125,426 5,426 Total revenues 1,331,150 1,839,252 508,102 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 1,254,330 2,058,748 804,418 $ 2,585,480 $ 3,898,000 $ 1,312,520 ' Budgeted Variance , Appropriations Actual Favorable Expenditures: Development services $ 63,586 $ 51,313 $ 12,273 Capital improvements 2,300,000 1,192,630 1,107,370 Contingency 150,000 150,000 ' Total expenditures 2,513,586 $ 1,243,943 $ 1,269,643 UNAPPROPRIATED ENDING FUND BALANCE 71,894 $ 2,585,480 i 1 38 City of Tigard, Oregon Electrical Inspection Fund Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Revised Favorable Budget Actual (Unfavorable) Revenues: Electrical permit fees $ 313,200 $ 291,552 $ (21,648) Electrical plan check fees 14,900 20,388 5,488 Interest 2,500 7,542 5,042 1 Total revenues 330,600 319,482 (11,118) BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 62,431 72,072 9,641 $ 393,031 $ 391,554 $ (1,477} Revised Budgeted Variance Appropriations Actual Favorable Expenditures: Development services $ 195,987 $ 189,174 $ 6,813 Policy and administration 20,906 18,685 2,221 Nondepartmental 7,296 5,264 2,032 Contingency 20,000 20,000 Total expenditures 244,189 $ 213,123 $ 31,066 UNAPPROPRIATED ENDING FUND BALANCE 148,842 $ 393,031 ' 39 City of Tigard, Oregon Underground Utility Fund , Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 i 1 Variance Budget Actual Favorable , Revenues: Interest $ 5,000 $ 6,881 $ 1,881 Miscellaneous 10,000 40,672 30,672 , Total revenues 15,000 47,553 32,553 BEGINNING FUND BALANCE AVAILABLE , FOR APPROPRIATION 105,000 105,407 407 $ 120,000 $ 152,960 $ 32,960 Budgeted Variance Appropriations Actual Favorable Expenditures: Capital improvements $ 120,000 $ - $ 120,000 1 1 40 City of Tigard, Oregon FEMA Disaster Fund ' Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 i 1 Variance ' Favorable Budget Actual (Unfavorable) Revenues: Miscellaneous $ 170,250 $ 131,006 $ (39,244) Other financing source: Operating transfer from Storm Drainage Fund 112,512 112,512 Total revenues and other financing source 170,250 243,518 73,268 ' BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION (221,816) (221,816) $ 170,250 $ 21,702 $ (148,548) Budgeted Variance Appropriations Actual Favorable Expenditures: Development services $ 170,250 $ 21,702 $ 148,548 ' 41 City of Tigard, Oregon Workers' Compensation Fund 1 Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Budget Actual Favorable Revenues: Miscellaneous revenues $ 40,384 $ 40,384 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION - 71,463 71,463 $ - $ 111,847 $ 111,847 Budgeted Variance ' Appropriations Actual Favorable Expenditures $ - $ - $ - 42 City of Tigard, Oregon Building Fund ' Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Revised Favorable Budget Actual (Unfavorable) Revenues: Licenses and permits $ 1,090,920 $ 1,068,654 $ (22,266) Interest 12,000 14,767 2,767 Total revenues 1,102,920 1,083,421 (19,499) BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 100,000 100,000 ' $ 1,202,920 $ 1,183,421 $ (19,499) Revised Budgeted Variance Appropriations Actual Favorable Expenditures: Development services $ 755,105 $ 726,533 $ 28,572 Policy and administration 88,458 79,594 8,864 Nondepartmental 29,184 21,056 8,128 Contingency 50,000 50,000 Total expenditures 922,747 $ 827,183 $ 95,564 UNAPPROPRIATED ENDING FUND BALANCE 280,173 ' $ 1,202,920 ' 43 City of Tigard, Oregon Urban Services Fund , Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Revised Favorable Budget Actual (Unfavorable) Revenues: Licenses and permits $ 275,000 $ 265,845 $ (9,155) Interest 510 510 $ 275,000 $ 266,355 $ (8,645) 1 Revised , Budgeted Variance Appropriations Actual Favorable Expenditures: Development services $ 84,650 $ 75,638 $ 9,012 Contingency 15,000 15,000 Total expenditures 99,650 $ 75,638 $ 24,012 UNAPPROPRIATED ENDING FUND BALANCE 175,350 , $ 275,000 i 1 1 44 ' City of Tigard, Oregon Urban Services - TIF Fund Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Budget Actual Favorable Revenues: _ Licenses and permits $ $ 35,480 $ 35,480 Budgeted Variance Appropriations Actual Favorable Expenditures $ _ $ _ $ _ 45 City of Tigard, Oregon Tree Replacement Fund 1 Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Revised Favorable Budget Actual (Unfavorable) Revenues: Tree replacement $ 200,000 $ 174,584 $ (25,416) Interest 1,707 1,707 Total revenues $ 200,000 $ 176,291 $ (23,709) Revised ' Budgeted Variance Appropriations Actual Favorable Expenditures: , Capital improvements $ 5,000 $ 3,325 $ 1,675 UNAPPROPRIATED ENDING FUND BALANCE 195,000 ' $ 200,000 46 ' 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. City of Tigard, Oregon Debt Service Funds Combining Balance Sheet June 30, 1997 General Obligation Bancroft Bond Debt Bond Debt Service Fund Service Fund Total ASSETS Cash and investments $ 424,803 $ 424,803 Property taxes receivable $ 62,780 62,780 Assessment liens receivable 1,445,841 1,445,841 Due from other funds 832,000 832,000 Accrued interest on delinquent assessments 37,443 37,443 Total assets $ 62,780 $ 2,740,087 $ 2,802,867 LIABILITIES AND FUND BALANCES Liabilities: Deferred revenues: Property taxes $ 46,947 $ 46,947 Assessment liens receivable $ 1,445,841 1,445,841 Accrued interest on delinquent assessments 37,443 37,443 Due to other funds 11,583 11,583 Total liabilities 58,530 1,483,284 1,541,814 Fund balances - unreserved and designated for debt service 4,250 1,256,803 1,261,053 Total liabilities and fund balances $ 62,780 $ 2,740,087 $ 2,802,867 , 47 ' City of Tigard, Oregon Debt Service Funds ' Combining Statement of Revenues, Expenditures and Changes in Fund Balances ' for the fiscal year ended June 30, 1997 ' General Obligation Bancroft Bond Debt Bond Debt Service Fund Service Fund Total Revenues: Taxes $ 1,388,623 $ 1,388,623 Special assessments $ 353,977 353,977 Miscellaneous revenues 43,067 9,575 52,642 Total revenues 1,431,690 363,552 1,795,242 Expenditures: Debt service 1,596,095 521,862 2,117,957 ' Revenues under expenditures (164,405) (158,310) (322,715) Other financing uses: Proceeds from issuance of bond anticipation notes 4,449,666 4,449,666 ' Revenues over (under) expenditures and other financing uses (164,405) 4,291,356 4,126,951 FUND BALANCES - beginning of year 168,655 (3,034,553) (2,865,898) ' FUND BALANCES - end of year $ 4,250 $ 1,256,803 $ 1,261,053 ' 48 City of Tigard, Oregon General Obligation Bond Debt Service Fund ' Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Favorable ' Budget Actual (Unfavorable) Revenues: Taxes $ 1,416,095 $ 1,388,623 $ (27,472) , Interest 40,000 43,067 3,067 Total revenues 1,456,095 1,431,690 (24,405) ' BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 140,000 168,655 28,655 $ 1,596,095 $ 1,600,345 $ 4,250 Budgeted Variance Appropriations Actual Favorable ' Expenditures: Debt service $ 1,596,095 $ 1,596,095 $ - 49 ' City of Tigard, Oregon Bancroft Bond Debt Service Fund ' Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 ' Variance Favorable Budget Actual (Unfavorable) Revenues: ' Collection of bonded assessments $ 400,000 $ 353,977 $ (46,023) Interest 20,000 9,575 10,425 Total revenues 420,000 363,552 (56,448) ' Other financing sources: Proceeds from issuance of bond anticipation ' notes 4,322,000 4,449,666 127,666 Operating transfer from Local Improvement Capital Projects Fund 832,000 832,000 ' Total other financing sources 4,322,000 5,281,666 959,666 Total revenues and other financing sources 4,742,000 5,645,218 903,218 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 175,000 218,447 43,447 $ 4,917,000 $ 5,863,665 $ 946,665 ' Budgeted Variance Appropriations Actual Favorable ' Expenditures: Debt service $ 4,703,000 $ 4,606,862 $ 96,138 ' UNAPPROPRIATED ENDING FUND BALANCE 214,000 $ 4,917,000 50 CITY OF TIGARD OREGON I ' Capital Projects Funds The Capital Projects Funds are used to account for the construction of major capital projects and include: • Local Improvement Capital Projects Fund - funded by proceeds from the sale of bond anticipation notes and other short-term debt. ' Park Levy Capital Improvement Fund - funded by proceeds from the sale of certificates of participation. Such improvements are expected to be completed within a three year period. • Facility Fund - accounts for monies set aside for future City facility improvements. ' Metro Greenspaces Fund - accounts for monies received from Washington County to be used for greenspace property acquisition and improvements. City of Tigard, Oregon Capital Projects Funds , Combining Balance Sheet June 30, 1997 t Local Improvement Park Levy ' Capital Capital Metro Projects Improvement Facility Greenspaces Fund Fund Fund Fund Total ASSETS ' Cash and investments $ 1,630,602 $ 182,968 $ 68,982 $ 7,807 $ 1,890,359 Accounts receivable 136,325 136,325 , Property taxes receivable 2,091 2,091 Total assets $ 1,630,602 $ 185,059 $ 205,307 $ 7,807 $ 2,028,775 ' LIABILITIES AND FUND BALANCES ' Liabilities: Accounts payable and ' accrued liabilities $ 2,403 $ 1,575 $ 7,807 $ 11,785 Due to other funds 832,000 832,000 Deferred revenues $ 1,404 1,404 Total liabilities 834,403 1,404 1,575 7,807 845,189 , Fund balances - ' unreserved 796,199 183,655 203,732 - 1,183,586 Total liabilities and fund balances $ 1,630,602 $ 185,059 $ 205,307 $ 7,807 $ 2,028,775 ' 51 , City of Tigard, Oregon Capital Projects Funds ' Combining Statement of Revenues, Expenditures and Changes in Fund Balances ' for the fiscal year ended June 30, 1997 Local Improvement Park Levy Capital Capital Metro Projects Improvement Facility Greenspaces Fund Fund Fund Fund Total Revenues: ' Property taxes $ 3,250 $ 3,250 Intergovernmental revenues $ 7,326 7,326 Miscellaneous $ 135,000 135,000 ' Interest $ 76,891 9,296 16,142 102,329 Total revenues 76,891 12,546 151,142 7,326 247,905 ' Expenditures: Capital improvements 39,908 2,296 152,772 5,550 200,526 Revenues over (under) expenditures 36,983 10,250 (1,630) 1,776 47,379 ' Other financing sources (uses): Proceeds from issuance of bond ' anticipation notes 175,334 175,334 Revenues and other ' financing sources over (under) expenditures 212,317 10,250 (1,630) 1,776 222,713 ' FUND BALANCES - beginning of year 583,882 173,405 205,362 (1,776) 960,873 FUND BALANCES - end of year $ 796,199 $ 183,655 $ 203,732 $ - $ 1,183,586 ' 52 City of Tigard, Oregon Local Improvement Capital Projects Fund , Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Favorable ' Budget Actual (Unfavorable) Revenues: Interest $ 80,000 $ 76,891 $ (3,109) ' Other financing source: Proceeds from issuance of bond ' anticipation notes 175,334 175,334 Total revenue and other financing source 80,000 252,225 172,225 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 1,600,000 1,415,882 (184,118) $ 1,680,000 $ 1,668,107 $ (11,893) , Budgeted Variance ' Appropriations Actual Favorable Expenditures: , Capital improvements $ 1,680,000 $ 39,908 $ 1,640,092 Other financing use: ' Operating transfer to Bancroft Bond Debt Service Fund 832,000 (832,000) Total expenditures and other financing use $ 1,680,000 $ 871,908 $ 808,092 ' 53 ' City of Tigard, Oregon Park Levy Capital Improvement Fund ' Schedule of Revenues and Expenses - Budget and Actual for the fiscal year ended June 30, 1997 Variance Favorable Budget Actual (Unfavorable) Revenues: ' Property taxes $ 4,500 $ 3,250 $ (1,250) Interest 4,000 9,296 5,296 Total revenues 8,500 12,546 4,046 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 158,000 173,405 15,405 $ 166,500 $ 185,951 $ 19,451 ' Budgeted Variance Appropriations Actual Favorable Expenditures: Capital improvements $ 166,500 $ 2,296 $ 164,204 1 1 54 1 City of Tigard, Oregon Facility Fund ' Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 1 Variance Budget Actual Favorable ' Revenues: Interest $ 12,000 $ 16,142 $ 4,142 Miscellaneous 135,000 135,000 ' Total revenues 147,000 151,142 4,142 BEGINNING FUND BALANCE AVAILABLE ' FOR APPROPRIATION 202,700 205,362 2,662 $ 3494700 $ 356,504 $ 6,804 ' Budgeted Variance ' Appropriations Actual Favorable Expenditures: ' Capital improvements $ 349,700 $ 152,772 $ 196,928 t 1 t 55 ' r r City of Tigard, Oregon Metro Greenspaces Fund t Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 r Revised Variance Budget Actual (Unfavorable) r Revenues: Intergovernmental revenue $ 633,000 $ 7,326 $ (625,674) r BEGINNING FUND BALANCE (DEFICIT) AVAILABLE FOR APPROPRIATION (1,776) (1,776) $ 633,000 $ 5,550 $ (627,450) ' Revised Budgeted Variance Appropriations Actual Favorable Expenditures: Capital improvements $ 633,000 $ 5,550 $ 627,450 1 1 r r r r r r 56 i i i CRY OF TIGARD OREGON ' 1 ■ Enterprise Funds The Sewer and Storm Drainage Funds are used to account for the acquisition and maintenance of sewer and storm drainage facilities which are supported by user charges. The Water Fund is used to account for the operations and maintenance of the water system and is supported through user charges. For financial reporting and operating purposes, management considers the activities of the Water Fund as a unitary enterprise. However, for budgetary and legal purposes these activities are t~ accounted for in the funds listed below. Budget to actual schedules for these funds, prepared on the accrual basis of accounting are included in this subsection. Funds included in this fund category are: • Sewer Fund • Storm Drainage Fund • • Storm Drainage Fund • • Water Quality and Quantity Fund • Water Fund • - Water General Fund Water Systems Development Fund Water Capital Projects Fund r r City of Tigard, Oregon Enterprise Funds Combining Balance Sheet June 30, 1997 Storm Sewer Drainage Water Fund Fund Fund Total ASSETS Current assets: Cash and investments $ 1,802,351 $ 732,343 $ 8,010,479 $ 10,545,173 Accounts receivable 780,822 142,216 665,203 1,588,241 Inventory 149,824 149,824 Due from other funds 4,725 4,725 t Total current assets 2,583,173 874,559 8,830,231 12,287,963 Noncurrent assets: I Restricted cash and investments 2,667,316 994,559 2,442,023 6,103,898 Fixed assets, net 6,293,883 6,837,900 20,351,587 33,483,370 Total noncurrent assets 8,961,199 7,832,459 22,793,610 39,587,268 Total assets $ 11,544,372 $ 8,707,018 $ 31,623,841 $ 51,875,231 LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 962,810 $ 426,418 $ 250,504 $ 1,639,732 Customer deposits 78,699 78,699 Deferred revenues 1,150 1,150 Due to other funds 112,512 112,512 Accrued vacation payable 19,306 19,315 35,027 73,648 , Total current liabilities 982,116 558,245 365,380 1,905,741 Fund equity: Contributed capital 6,217,815 7,481,287 27,824,285 41,523,387 Retained earnings 4,344,441 667,486 3,434,176 8,446,103 Total fund equity 10,562,256 8,148,773 31,258,461 49,969,490 Total liabilities and fund equity $ 11,544,372 $ 8,707,018 $ 31,623,841 $ 51,875,231 r 57 City of Tigard, Oregon Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings for the fiscal year ended June 30, 1997 Stone Sewer Drainage Water Fund Fund Fund Total Operating revenues: Service charges $ 1,639,846 $ 566,223 $ 4,021,696 $ 6,227,765 Miscellaneous 26,337 27,939 39,994 94,270 Total operating revenues 1,666,183 594,162 4,061,690 6,322,035 Operating expenses: Salaries and wages 397,832 381,984 2,012,928 2,792,744 Contracted services 55,034 55,034 General, administrative and other 237,812 233,522 1,215,772 1,687,106 Depreciation 259,696 153,065 687,538 1,100,299 Total operating expenses 895,340 768,571 3,971,272 5,635,183 Operating income (loss) 770,843 (174,409) 90,418 686,852 Nonoperating revenue (expense): Interest 223,912 88,393 526,407 838,712 Operating transfer out to FEMA Disaster Fund (112,512) (112,512) Net income (loss) 994,755 (198,528) 616,825 1,413,052 j" Add depreciation on fixed assets donated or acquired from capital contributions that reduces contributed capital 163,830 175,170 562,457 901,457 Increase (decrease) in retained earnings 1,158,585 (23,358) 1,179,282 2,314,509 Retained earnings- beginning of year 3,185,856 690,844 2,254,894 6,131,594 Retained earnings - end of year $ 4,344,441 $ 667,486 $ 3,434,176 $ 8,446,103 58 City of Tigard, Oregon Enterprise Funds Combining Statement of Cash Flows for the fiscal year ended June 30, 1997 Storm Sewer Drainage Water Fund Fund Fund Total Cash flows from operating activities: Operating income (loss) $ 770,843 $ (174,409) $ 90,418 $ 686,852 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 259,696 153,065 687,538 1,100,299 Loss on disposal of fixed assets 10,547 15,093 18,223 43,863 Decrease (increase) in accounts receivable (53,601) 3,302 (34,363) (84,662) Decrease in assessments receivable 3,839 3,839 Increase in accounts payable and accrued liabilities 109,621 358,747 8,967 477,335 Decrease in customer deposits (12,490) (46,481) (58,971) Increase (decrease) in accrued vacation payable (5,993) 1,435 (16,568) (21,126) Increase in inventory (43,524) (43,524) Increase (decrease) in deferred revenues (3,839) 1,150 (2,689) Decrease in due from other fund 85 85 Net cash provided by operating activities 1,078,623 357,233 665,445 2,101,301 _ Cash flows from capital and related financing activities: Capital contributions 1,303,029 1,303,029 Acquisition of fixed assets (242,027) (292,990) (899,492) (1,434,509) Net cash provided by (used in) capital and related financing activities (242,027) (292,990) 403,537 (131,480) Cash flows from investing activities: Interest earnings 223,912 88,393 526,407 838,712 Net increase in cash and cash equivalents 1,060,508 152,636 1,595,389 2,808,533 Cash and cash equivalents - beginning of year 3,409,159 1,574,266 8,857,113 13,840,538 Cash and cash equivalents - end of year $ 41469,667 $ 1,726,902 $ 10,452,502 $ 16,649,071 Supplemental schedule of noncash capital and related financing activities: Contributed sewer, storm and water lines $ 166.793 $ 114.229 $ 1.355.314 $ 1.636.336 Restatement of beginning contributed capital $ 431,360 $ 2,003,204 $ (2,242,030) $ 192,534 1 59 City of Tigard, Oregon Sewer Fund Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Budget Actual Favorable Revenues: Service charges $ 1,361,100 $ 1,639,846 $ 278,746 Interest 150,000 223,912 73,912 Miscellaneous 26,337 26,337 Total revenues 1,511,100 1,890,095 378,995 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 3,071,176 3,270,563 199,387 $ 4,582,276 $ 5,160,658 $ 578,382 Budgeted Variance Appropriations Actual Favorable Expenditures: Development services $ 569,099 $ 481,776 $ 87,323 Policy and administration 233,582 217,780 15,802 Nondepartmental 48,640 35,094 13,546 Contingency 200,000 200,000 Capital improvements 1,500,000 151,840 1,348,160 Total expenditures 2,551,321 $ 886,490 $ 1,664,831 ' UNAPPROPRIATED ENDING FUND BALANCE 2,030,955 $ 4,582,276 60 City of Tigard, Oregon Storm Drainage Fund Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Favorable Budget Actual (Unfavorable) Revenues: Service charges $ 675,000 $ 406,620 $ (268,380) Interest 70,000 44,356 (25,644) Miscellaneous 933,450 5,282 (928,168) Total revenues 1,678,450 456,258 (1,222,192) BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 1,102,631 1,245,528 142,897 $ 2,781,081 $ 1,701,786 $ (1,079,295) Variance Budgeted Favorable Appropriations Actual (Unfavorable) Expenditures: ' Development services $ 569,161 $ 461,537 $ 107,624 Policy and administration 213,646 200,655 12,991 Nondepartmental 48,640 35,094 13,546 Contingency 75,000 75,000 Capital improvements 1,827,000 100,500 1,726,500 Total expenditures 2,733,447 797,786 1,935,661 Other financing uses: Operating transfer to FEMA Disaster Fund 112,512 (112,512) Total expenditures and other financing uses 2,733,447 $ 910,298 $ 1,823,149 UNAPPROPRIATED ENDING FUND BALANCE 47,634 $ 2,781,081 61 City of Tigard, Oregon Water Quality & Quantity Fund Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 l Variance Budget Actual Favorable Revenues: Service charges $ 61,150 $ 159,603 $ 98,453 Interest 15,000 43,837 28,837 Miscellaneous 22,657 22,657 Total revenues 76,150 226,097 149,947 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 354,000 396,222 42,222 $ 430,150 $ 622,319 $ 192,169 Budgeted Variance Appropriations Actual Favorable Expenditures: Capital improvements $ 430,150 $ 106,483 $ 323,667 62 City of Tigard, Oregon Water General Fund Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 1. 1 Variance Budget Actual Favorable Revenues: Service charges $ 3,538,800 $ 4,021,696 $ 482,896 System development charges 425,380 843,834 418,454 Interest 210,700 354,271 143,571 Miscellaneous 11,900 39,994 28,094 Total revenues 4,186,780 5,259,795 1,073,015 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 4,948,867 5,523,462 574,595 $ 9,135,647 $ 10,783,257 $ 1,647,610 r Budgeted Variance Appropriations Actual Favorable Expenditures: Public works $ 3,417,171 $ 3,196,895 $ 220,276 Policy and administration 289,778 266,959 22,819 City-wide support function 48,640 35,094 13,546 Contingency 300,000 300,000 Capital improvements 740,100 273,109 466,991 Total expenditures 4,795,689 $ 3,772,057 $ 1,023,632 UNAPPROPRIATED ENDING FUND BALANCE 4,339,958 $ 9,135,647 63 City of Tigard, Oregon Water Systems Development Fund Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Budget Actual Favorable Revenues: System development charges $ 324,500 $ 621,150 $ 296,650 Interest 90,000 134,149 44,149 Total revenues 414,500 755,299 340,799 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 2,436,000 2,582,997 146,997 $ 2,850,500 $ 3,338,296 $ 487,796 Budgeted Variance Appropriations Actual Favorable Expenditures: Capital improvements $ 2,750,500 $ 580,189 $ 2,170,311 Contingency 100,000 100,000 $ 2,850,500 $ 580,189 $ 2,270,311 i 64 City of Tigard, Oregon Water Capital Projects Fund Schedule of Revenues and Expenditures - Budget and Actual for the fiscal year ended June 30, 1997 Variance Budget Actual Favorable Revenues: Interest $ 35,000 $ 37,987 $ 2,987 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 701,000 704,854 3,854 $ 736,000 $ 742,841 $ 6,841 Budgeted Variance Appropriations Actual Favorable Expenditures: Capital improvements $ 736,000 $ - $ 736,000 `a i 65 Fiduciary Funds i~ These funds account for resources received and held by the City in a fiduciary capacity. Disbursements from these funds are made in accordance with the trust agreement or conditions of the trust for the particular fund. Funds included in this category are: • Agency Fund - Deferred Compensation Fund t - Pension Trust Funds - General and Water Fund Employees Pension Plans 1' City of Tigard, Oregon Fiduciary Funds Combining Balance Sheet June 30, 1997 l Agency Fund - Deferred Compensation Pension Fund Trust Funds Total ASSETS Cash and investments $ 2,251,383 $ 5,417,351 $ 7,668,734 LIABILITIES AND FUND BALANCE Liabilities: Deferred compensation payable $ 2,251,383 $ 2,251,383 Fund balance: Reserved for employee retirement benefits $ 5,417,351 5,417,351 $ 2,251,383 $ 5,417,351 $ 7,668,734 l 1 1 66 City of Tigard, Oregon Pension Trust Funds Combining Statement of Plan Net Assets June 30, 1997 Water Fund General Employees Employees Pension Pension Plan Plan Total Cash and investments $ 603,056 $ 4,814,295 $ 5,417,351 Net assets held in trust for pension benefits $ 603,056 $ 4,814,295 $ 5,417,351 '1 67 i~ City of Tigard, Oregon Pension Trust Funds Combining Statement of Changes in Plan Net Assets for the fiscal year ended June 30, 1997 Water Fund General Employees Employees Pension Pension Plan Plan Total Additions: Contributions $ 562,742 $ 562,742 Interest $ 46,098 546,102 592,200 Total additions 46,098 1,108,844 1,154,942 Deductions: Benefit payments and withdrawals 144,984 294,447 439,431 Increase (decrease) in net assets (98,886) 814,397 715,511 Net assets held in trust for pension benefits: Beginning of year 701,942 3,999,898 4,701,840 End of year $ 603,056 $ 4,814,295 $ 5,417,351 j s$ ~ , City of Tigard, Oregon Agency Fund - Deferred Compensation Fund Statement of Changes in Assets and Liabilities for the fiscal year ended June 30, 1997 Balance Balance June 30, June 30, 1996 Additions Deletions 1997 ' ASSETS Cash and investments $2,030,140 $ 498,281 $ 277,038 $2,251,383 LIABILITIES Deferred compensation payable $2,030,140 $ 498,281 $ 277,038 $2,251,383 s t r 69 i 1 CITY OF TIGARD OREGON t 1 1 1 1 1 1 i r r r 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. r. r City of Tigard, Oregon Schedule of General Fixed Assets - By Sources June 30, 1997 GENERAL FIXED ASSETS Land $ 3,523,227 Buildings 4,535,485 Equipment 929,057 Autos and trucks 1,140,701 Office equipment 1,510,372 Total investment in general fixed assets $ 11,638,842 INVESTMENT IN GENERAL FIXED ASSETS Investment in general fixed assets from: Investment in property acquired prior to June 30, 1996 $ 10,472,369 Net investment in property acquired after June 30, 1996 from: General Fund 1,166,473 Total investment in general fixed assets $ 11,638,842 1 1 1 70 D City of Tigard, Oregon Schedule of General Fixed Assets - By Function and Activity June 30, 1997 0 Machinery, Equipment, Function and Activity Total Land Buildings and Other Community services: Police $ 1,207,900 $ 1,207,900 Library 445,837 445,837 Parks 298,404 298,404 Total community services 1,952,141 1,952,141 Community development: Administration 79,455 79,455 Building 154,404 154,404 Planning 29,575 29,575 Engineering 194,364 194,364 Operations/admin. 48,266 48,266 Operations/shops 48,080 48,080 Streets 445,155 445,155 Operations/management 25,556 25,556 Total community development 1,024,855 1,024,855 Policy and administration: Mayor and City Council 11,895 11,895 City administration 54,865 54,865 0 Finance 75,663 75,663 Computer services 163,064 163,064 Accounting 51,015 51,015 Office services 65,903 65,903 Records 43,004 43,004 Court 7,499 7,499 Total policy and administration 472,908 472,908 General government 8,188,938 $ 3,523,227 $ 4,535,485 130,226 Total investment in general fixed assets $ 11,638,842 $ 3,523,227 $ 4,535,485 $ 3,580,130 71 City of Tigard, Oregon Schedule of Changes in General Fixed Assets - By Function and Activity for the fiscal year ended June 30, 1997 General General Fixed Assets Transfers/ Fixed Assets Function and Activity June 30, 1996 Additions Retirements June 30, 1997 Community services: Police $ 1,129,894 $ 186,463 $ (108,457) $ 1,207,900 Library 385,355 61,301 (819) 445,837 Parks 276,125 29,669 (7,390) 298,404 Total community services 1,791,374 277,433 (116,666) 1,952,141 Community development: Administration 55,735 23,720 79,455 Building 114,192 40,874 (662) 154,404 Planning 28,965 3,650 (3,040) 29,575 Engineering 164,374 49,919 (19,929) 194,364 Operations/admin. 58,905 1,887 (12,526) 48,266 Operations/shops 51,251 1,680 (4,851) 48,080 Streets 503,798 28,912 (87,555) 445,155 Operationstmanagement 22,498 3,059 (1) 25,556 Total community development 999,718 153,701 (128,564) 1,024,855 Policy and administration: j Mayor and City Council 12,424 (529) 11,895 City administration 46,997 8,220 (352) 54,865 Finance 60,868 16,145 (1,350) 75,663 Computer services 136,592 40,892 (14,420) 163,064 Accounting 52,507 9,108 (10,600) 51,015 Office services 75,070 2,065 (11,232) 65,903 Records 40,688 3,632 (1,316) 43,004 Court 7,994 2,305 (2,800) 7,499 Total policy and administration 433,140 82,367 (42,599) 472,908 General government 7,716,164 652,972 (180,198) 8,188,938 Total investment in general fixed assets $ 10,940,396 $ 1,166,473 $ (468,027) $ 11,638,842 ■ 72 D D. D d Other Schedules D Schedules included in this section are: • Property Tax Transactions and Outstanding Balances • Bond and Bond Interest Transactions D Future Debt Service Requirements of Bancroft Improvement Bonds • Future Debt Service Requirements of General Obligation Bonds D` City of Tigard, Oregon Schedule of Property Tax Transactions and Outstanding Balances for the fiscal year ended June 30, 1997 Property Add Property Taxes Levy as Taxes Receivable Extended Deduct Receivable June 30, By Discounts Deduct Add Deduct June 30, 1996 Assessor Allowed Adjustments Interest Collections 1997 1996-97 $ 7,924,163 $ (191,885) $ (25,896) $ 4,251 $ (7,511,237) $ 199,396 1995-96 $ 148,754 (3,489) 7,127 (103,958) 48,434 1994-95 53,468 (5,531) 5,680 (29,396) 24,221 1993-94 28,072 (3,346) 6,237 (22,905) 8,058 j 1992-93 8,742 (735) 2,591 (8,913) 1,685 1991-92 and prior 6,351 (3,078) 1,199 (2,090) 2,382 $ 245,387 $ 7,924,163 $ (191,885) $ (42,075) $ 27,085 $ (7,678,499) $ 284,176 Property Taxes Receivable Cash June 30, Collections 1997 Distributed as follows: General Fund: Current $ 6,165,445 $ 158,512 Prior years' levies 120,436 60,793 Total General Fund 6,285,881 219,305 Debt Service Funds: Current 1,342,652 40,884 Prior years' levies 43,140 21,896 Total Debt Service Funds 1,385,792 62,780 Capital Projects Funds: Prior years' levies 6,826 2,091 Total $ 7,678,499 $ 284,176 73 Q City of Tigard, Oregon Schedule of Bond and Bond Interest Transactions for the fiscal year ended June 30, 1997 Bond Transactions Interest Transactions Outstanding Outstanding Original June 30, June 30, Bancroft Bonds Issue 1996 Matured Paid 1997 Matured Paid Issued September 1, 1982 $ 184,664 $ 10,000 $ 10,000 Issued December 1, 1989 340,000 20,000 $ 20,000 $ (20,000) $ 600 $ 600 Issued August 1, 1990 2,244,000 620,000 125,000 (225,000) 395,000 34,325 34,508 Issued August 1, 1991 405,000 185,000 (40,000) 145,000 9,900 9,900 Issued May 1, 1993 660,000 610,000 610,000 29,520 29,520 $ 1,445,000 $ 145,000 $ (285,000) $ 1,160,000 $ 74,345 $ 74,528 General Obligation Bonds Issued May 1, 1993 6,935,000 $ 5,350,000 $ - $(1,385,000) $ 3,965,000 $ 230,645 $ 211,095 a~ 74 City of Tigard, Oregon Schedule of Future Debt Service Requirements of Bancroft Improvement Bonds as of June 30, 1997 Issued Issued Issued Issued September 1, 1982 August 1, 1990 August 1, 1991 May 1, 1993 Year of Total Requirements 11.75% 6.0% to 6.3% 6.0% 4.10% to 5.0% Maturi ty Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 1997-98 $ 145,000 $ 58,515 $ 10,000 ' $ 135,000 $ 20,295 $ 8,700 $ 29,520 1998-99 145,000 49,903 145,000 11,683 8,700 29,520 1999-2000 175,000 40,584 115,000 3,594 8,700 $ 60,000 28,290 2000-01 35,760 8,700 27,060 2001-02 145,000 31,410 $ 145,000 4,350 27,060 2002-03 110,000 24,530 110,000 24,530 2003-04 22,000 22,000 2004-05 22,000 22,000 2005-06 440,000 9,167 440,000 9,167 Totals $1,160,000 $ 293,869 $ 10,000 $ - $395,000 $ 35,572 $145,000 $ 39,150 $610,000 $219,147 Issue was called on 6/1/93. Amounts outstanding are bearer bonds which have not been presented for payment. mo~' 401 NONE a a City of Tigard, Oregon Schedule of Future Debt Service Requirements of General Obligation Bonds as of June 30, 1997 Issued May 1, 1993 Year of 3.4% to 4.75% aturi Principal Interest 1997-98 $ 80,618 1998-99 $ 1,490,000 132,925 1999-2000 1,570,000 72,822 -01 210,000 36,515 2000 2001-02 225,000 26,994 2002-03 225,000 16,813 O 2003-04 245,000 5,819 $ 3,965,000 $ 372,506 a a a 76 r Cam( Of TIGARD I OREGON 1 S.r VIC NL SECTION 1 1 1 1 l 1 1 1 City of Tigard, Oregon General Governmental Expenditures by Function - Budgetary Basis for the last ten fiscal years D City-Wide Support Functions, Fiscal Capital Year Ended Community Community Policy and Projects Debt June 30, Services Development Administration and Other Service Total 0 1988 $ 3,042,321 $ 1,764,513 $ 121,016 $ 1,452,149 $ 785,234 $ 7,165,233 1989 3,357,664 1,980,927 112,966 3,177,147` 772,739 9,401,443 1990 3,539,680 2,096,431 253,593 4,977,930 3,481,870 14,349,504 1991 4,347,338 2,558,534 281,180 7,216,338 4,157,959 18,561,349 1992 4,520,483 2,466,774 1,157,205 4,001,522 2,643,174 14,789,158 1993 4,755,049 2,459,618 1,223,269 2,449,617 2,652,428 13,539,981 1994 5,088,712 2,641,694 1,317,972 3,604,930 5,647,732 18,301,040 1995 5,656,128 2,745,236 1,332,630 2,148,788 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 O 1997 6,537,097 3,507,918 1,699,813 3,182,819 6,202,957 21,130,604 O Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types. a a 77 a City of Tigard, Oregon General Governmental Revenues by Sources - , Budgetary Basis for the last ten fiscal years Fiscal Year Licenses Inter- Charges Ended Franchise and governmental for Fines and Miscellaneous June 30, Taxes Fees Permits Revenues Services Forfeitures Revenues" Total 1988 $ 2,152,792 $ 849,844 $ 1,031,018 $ 1,220,779 $ 514,048 $ 254,154 $ 1,160,391 $ 7,183,026 1989 2,408,597 1,031,791 1,059,725 1,517,777 599,002 240,849 1,113,184 7,970,925 , 1990 3,746,834 1,100,181 1,445,011 2,040,711 39,818 232,332 2,183,206 10,788,093 1991 4,160,790 1,179,833 1,206,920, 2,379,431 79,370 259,497 1,627,675 10,893,516 1992 4,963,329 1,287,794 1,659,542 3,050,675 102,081 322,618 1,464,811 12,850,850 1993 5,493,516 1,320,686 1,682,341 3,073,728 301,569 316,947 1,599,480 13,788,267 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 7,699,433 1,736,933 3,746,604 3,834,114 798,129 397,637 1,632,664 19,845,514 'Includes special assessments collections and private donations. Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types. p 78 City of Tigard, Oregon Property Tax Levies and Collections for the last ten fiscal years Fiscal Percent Percent Year Percent Delinquent Total Total Tax Outstanding Delinquent Ended Total Current Tax of Levy Tax Tax Collections Delinquent Taxes to June 30, Tax Levy Collections Collections Collections Collections to Tax Levy Taxes Tax Levy 1988 $ 2,229,786 $ 2,023,790 90.76% $ 124,659 $ 2,148,449 96.35 % $ 254,595 11.42 % 1989 2,455,914 2,240,508 91.23 150,511 2,391,019 97.36 289,212 11.78 1990 3,812,090 3,520,898 92.36 193,334 3,714,232 97.43 332,144 8.71 1991 4,266,155 3,918,774 91.86 224,988 4,143,762 97.13 372,918 8.74 1992 5,148,022 4,717,610 91.64 228,047 4,945,657 96.07 408,691 7.94 1993 5,548,159 5,213,266 93.96 260,368 5,473,634 98.66 391,447 7.06 1994 5,984,204 5,622,050 93.95 272,191 5,894,241 98.50 333,198 5.57 e 1995 6,212,584 5,864,693 94.40 242,923 6,107,616 98.30 285,651 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 Taxes are levied as of July 1 each year and are payable in three installments, without interest, on November 15, February 15, and May 15. Interest is charged at the rate of 1% per month on delinquent taxes. Tax liens are foreclosed after three year's delinquencies. Taxpayers receive a discount of 3% for payment in full by November 15 and 2% for payment of two-thirds of the total taxes due. Information derived from Comprehensive Annual Financial Reports. a 79 0 City of Tigard, Oregon Assessed Value of Taxable Property for the last ten fiscal years , Assessed Value Fiscal Public Year Ended Real Personal utility June 30, Property Property Property Total 1988 $ 1,057,515,500 $ 86,733,050 $ 32,526,302 $ 1,176,774,852 1989 1,200,581,900 93,401,270 32,131,292 1,326,114,462 1990 1,278,128,284 106,268,976 38,738,512 1,423,135,772 1991 1,435,394,724 115,983,044 36,707,073 1,588,084,841 1992 1,755,342,623 114,457,543 40,526,271 1,910,326,437 1993 1,820,521,857 139,064,986 50,197,374 2,009,784,217 1994 1,972,696,888 142,496,210 60,467,981 2,175,661,079 1995 2,229,444,147 156,419,813 72,874,589 2,458,738,549 1996 2,499,277,057 164,967,611 70,968,422 2,735,213,090 1997 2,870,072,277 165,084,982 76,231,065 3,111,388,324 All property is assessed as of January 1, preceding the fiscal year beginning July 1. Source: Washington County Department of Assessment and Taxation. 1 1 i 80 ~ City of Tigard, Oregon Special Assessment Collections for the last ten fiscal years Ratio of Fiscal Current Collections Total Year Ended Assessments Assessments to Amount Outstanding June 30, Due (1) Collected (2) Due Assessments 1988 $ 308,000 $ 532,224 172.8 % $ 1,218,351 1989 328,000 372,584 113.6 828,575 1990 693,000 818,094 118.1 892,780 O 1991 343,000 279,468 81.5 3,181,495 1992 427,000 288,574 67.6 2,900,352 1993 408,000 688,664 168.8 2,380,059 1994 193,000 186,036 96.4 2,250,041 1995 208,000 146,548 70.5 2,088,745 1996 135,000 218,667 161.98 1,846,910 1997 145,000 353,977 244.12 1,608,224 (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. a a 81 City of Tigard, Oregon Property Tax Rates - Direct and Overlapping Governments (Per $1, 000 of Assessed Value) for the last ten fiscal years Tigard/ Washington Washington Fiscal Metzger Tualatin Beaverton Tualatin County County Year Metzger Water School School Tigard Unified Rural Fire Rural Fire Portland Education Other Ended Water District City of Washington District District Water Metzger Sewerage Protection District Community Service Taxing June 30, District Combined Tigard County No. 23J No. 48 District Sanitary Agency District No.1 College District Agencies 1988 0.03 0.53 2.03 2.81 12.10 13.13 0.19 0.24 0.36 2.70 2.65 0.89 0.26 0.63 1989 0.02 0.59 1.98 2.95 14.46 16.49 0.15 0.36 2.49 2.62 0.92 0.26 0.73 1990 0.02 0.61 2.79 2.02 14.54 16.67 0.13 0.27 2.52 0.94 0.26 1.69 1991 0.02 0.53 2.76 2.94 14.60 15.82 0.11 0.25 2.41 0.91 0.25 0.57 1992 0.02 0.48 2.76 1.41 16.73 13.44 0.09 0.19 1.99 0.81 0.21 0.49 00 N 1993 0.48 2.80 1.41 15.95 14.16 0.08 0.18 1.98 0.90 021 0.43 1994 0.42 2.77 1.36 15.58 13.39 0.08 0.12 1.88 0.87 0.20 0.37 1995 0.25 2.51 1.27 13.88 12.41 0.07 0.07 1.76 0.82 0.19 0.38 1996 0.25 2.18 1.52 14.01 12.07 0.06 0.09 1.66 0.79 0.18 0.38 1997 0.23 2.54 1.35 12.85 11.41 0.05 1.52 0.73 0.30 0.83 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. The operating levy may be increased annually to 106% of the highest levy in the prior three years. Levy increases are permitted in the year following expansion of a district's boundaries. Special operating levies may be approved for periods not exceeding 10 years. 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. 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 rates 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 1997 ranged from $18.04/$1000 to $21.241$1000. Source: Washington County Department of Assessment and Taxation. ~r ~r .s r• ~ ~ ~r r~ rr ~ ~ ~ r rr ~ it r r City of Tigard, Oregon Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita for the last ten fiscal years Gross General Ratio of Obligation Less Debt Net Bonded Fiscal Bonded Service Net Debt to Net Bonded Year Ended Assessed Debt Monies Bonded Assessed Debt Per June 30, Population Value Outstanding Available Debt Value Capita a 1988 24,782 $ 1,176,774,852 $ 2,580,000 $ 17,871 $ 2,562,129 0.21 % $ 103.39 1989 25,602 1,326,114,462 10,990,000 45,028 10,944,972 0.83 427.50 1990 27,050 1,423,135,772 11,990,000 ` 165,664 11,824,336 0.83 437.13 1991 29,652 1,588,084,841 13,304,000 ' 345,050 12,958,950 0.82 437.03 a 1992 30,835 1,910,326,437 12,595,000 ' 620,597 11,974,403 0.63 388.34 1993 31,271 2,009,784,217 11,671,000 ' 830,080 10,840,920 0.54 346.68 1994 33,802 2,175,661,079 9,878,000 ' 611,481 9,266,519 0.43 274.14 1995 33,744 2,458,738,549 8,385,000 ' 422,107 7,962,893 0.32 235.98 1996 35,021 2,735,213,090 6,795,000 • 387,102 6,407,898 0.23 182.97 1997 35,925 3,111,388,324 5,125,000 ' 1,261,053 3,863,947 0.12 107.56 Excludes bond anticipation notes payable. Sources: City budget documents, Comprehensive Annual Financial Reports in the City and Washington County Department of Assessment and Taxation. 83 City of Tigard, Oregon Computation of Legal Debt Margin June 30, 1997 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 (1996-97) (1) $ 3,111,388,324 General obligation debt limit x 3 % 93,341,650 Gross bonded debt $ 5,125,000 Excludable debt- Bancroft improvement bonds (1,160,000) Debt subject to limitation 3,965,000 Legal debt margin - amount available for future indebtedness $ 89,376,650 (1) From Washington County Department of Assessment and Taxation. t i 1 84 D City of Tigard, Oregon Computation of Overlapping General Obligation Debt June 30, 1997 Percent Amount Applicable Applicable Net Debt Inside City Inside City Jurisdiction Outstanding of Tigard of Tigard Tigard/Tualatin School District #23-J $ 71,995,000 52.4641 % $ 37,771,529 Tri-Met 136,035,000 3.9836 5,419,090 Port of Portland 45,654,480 3.6088 1,647,579 D Metro 217,980,958 4.0033 8,726,432 Beaverton School District #48 126,420,000 4.0131 5,073,361 Portland Community College 52,858,585 5.1544 2,724,543 Washington County 84,405,000 11.9395 10,077,535 Unified Sewerage Agency 3,020,000 12.8517 388,121 D Tualatin Rural Fire Protection District 685,000 13.8174 94,649 Tigard Water District (Metzer Bond) 3,150,000 58.1489 1,831,690 $ 742,204,023 $ 73,754,529 D Source: Oregon Municipal Debt Advisory Commission- D D D D 85 City of Tigard, Oregon ' Ratio of Annual Debt Service Expenditures for Long-Term Debt to Total General Governmental Expenditures i for the last ten fiscal years Fiscal Total Percent of Debt Year Total General Service to Ended Debt Governmental Total General June 30, Principal Interest Service Expenditures Expenditures 1988 $ 393,000 $ 390,369 $ 783,369 $ 7,165,233 10.9 % 1989 418,000 354,739 772,739 9,401,443 8.2 1990 2,383,000 1,098,870 3,481,870 14,349,504 24.3 1991 3,034,760 1,123,199 4,157,959 18,561,349 22.4 1992 1,664,000 979,174 2,643,174 14,789,158 17.9 1993 1,939,000 713,428 2,652,428 13,539,981 19.6 1994 4,742,523 (1) 905,209 (1) 5,647,732 18,301,040 30.1 1995 1,828,000 (2) 560,061 (2) 2,388,061 14,270,841 16.7 1996 4,385,000 (1) 767,515 (1) 5,152,515 18,833,795 27.4 1997 5,755,000 (1) 447,957 (1) 6,202,957 21,130,604 29.4 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. 86 o City of Tigard, Oregon Property Value, Construction and Bank Deposits for the last ten fiscal years Commercial Residential Fiscal Construction (1) Construction (1) Year Ended Number of Number of Bank Deposits June 30, Permits Value Permits Value (in thousands) (2) 1988 228 $ 34,991,735 633 $ 32,524,988 $ 165,107 1989 212 21,189,454 604 35,826,025 N/A 1990 320 27,495,457 749 40,729,414 N/A O 1991 62 27,985,499 268 28,160,790 N/A 1992 37 31,498,832 218 24,259,243 N/A 1993 28 25,685,703 408 43,687,254 N/A 1994 40 63,946,411 683 62,765,587 N/A 1995 24 31,873,570 452 63,699,561 N/A 1996 37 34,644,201 496 65,935,382 N/A 1997 22 44,227,644 355 59,581,425 N/A (1) From City of Tigard Building Department. Multi-family permits are included in the number of permits issued for residential construction. (2) From State of Oregon Department of Commerce, Division of Finance and Corporate Securities. N/A - Information not available. 87 City of Tigard, Oregon ' Principal Taxpayers June 30, 1997 ' Percentage of Total Assessed Assessed Tax aver Type of Business Valuation Valuation Pacific Realty Associates Oregon Business Park $ 131,953,480 4.24 % Winmar Co. Washington Square Shopping Mall 117,165,590 3.77 , SF Oregon Co. Ltd. Lincoln Center Office Park 67,289,495 2.16 Spieker Properties Park 217 retail office center and ' Nelson Business Park 23,354,628 0.75 Nesbitt Partners Embassy Suites Hotel 23,183,794 0.75 Robinson Trust Scholls Business Center 16,866,248 0.54 Real Estate Equities Joint Venture Meadow Creek Apartments 13,370,038 0.43 Costco/Wholesale Price/Costco 11,796,652 0.38 Pacific Corp. Tigard Marketplace Shopping Plaza 10,622,574 0.34 FIG Holding Co. Farmers Insurance 10,595,353 0.34 , Total principal taxpayers 426,197,852 13.70 All other taxpayers 2,685,190,472 86.30 Total $ 3,111,388,324 100.00 % ' Source: City of Tigard Planning Department. , 88 0 a City of Tigard, Oregon Demographic Statistics for the last ten fiscal years Assessed (2) Value Unemployment Fiscal of Taxable (3) Rate a Year Ended (1) Property School Portland June 30, Population Per Capita Enrollment Metro. Area 1988 24,782 $ 47,485 7,050 4.8 % 1989 25,602 51,797 7,236 4.5 O 1990 27,050 52,611 7,940 4.1 1991 29,652 53,557 8,795 4.9 1992 30,835 61,953 8,965 6.2 1993 31,271 64,270 9,427 5.8 1994 33,802 64,365 9,644 4.8 1995 33,744 72,865 10,579 4.7 O 1996 35,021 78,102 10,829 4.2 1997 35,925 86,608 11,071 3.9 Sources of information: (1) Portland State University, Population Research & Census Center. (2) U.S. Bureau of Labor Statistics. (3) Tigard/Tualatin School District #23-J. 89 City of Tigard, Oregon ' Miscellaneous Statistical Data June 30, 1997 ' i Date of incorporation 1961 Form of government Council - Mayor - Administrator Area 10.44 square miles Miles of streets 123.6 miles , Number of street lights: City owned 2,466 City maintained (PGE owned) 681 Police protection: Number of stations 1 Number of policemen and officers 48 , Education: Attendance centers 14 Number of teachers 592 , Number of students 11,071 Sanitary sewers 120.8 miles Storm lines 74.1 miles Open ditches 11.5 miles , Building permits issued (1996-97) 377 permits Recreation and culture: , Number of parks 13 Number of libraries 1 Number of volumes (estimated) 107,863 volumes Employees: Classified service (union) 168 Unclassified (non-union) 56 Information obtained from the various departments of the City of Tigard, Oregon and Tigard/Tualatin School ' District #23-J. 90 , ~ AUDIT COMMENTS AND ~ DISCLOSURES R QUIRED BY ~ STATE REGULATIONS 1 1 1 1 1 1 1 1 1 1 1 1 a a 0 a a 0 Audit Comments and Disclosures Required By State Regulations Oregon Administrative Rules 162-10-050 through 162-10-320 incorporate the Minimum Standards for Audits of Oregon Municipal Corporations. These standards, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, comments and disclosures required in audit reports. The required statements and schedules are set forth in the preceding sections of this report. Required comments and disclosures related to our audit of such statements and schedules are set forth following. 91 City of Tigard, Oregon ' Audit Comments and Disclosures 1. Internal Control Structure: ' In planning and performing our audit of the financial statements of the City of Tigard as of and for the year ended June 30, 1997, we considered its internal control 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. Our consideration of the internal control would not necessarily disclose all matters in the internal control that might be material weaknesses , under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that errors or 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. However, we noted no matters involving the internal control and its ' operation that we consider to be material weaknesses as defined above. This report is intended solely for the information of the Board of Directors, management, 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. II. Other Comments and Disclosures: We have audited the general purpose financial statements of the City of Tigard, Oregon as of and for the year ended June 30, 1997, and our report thereon is included on Pages 1 and 2 of this report. Our audit was made in accordance with generally accepted auditing standards. ' In connection with our audit, nothing came to our attention that caused us to believe the City was not in compliance with: • ORS 294.305 to 294.520 in the preparation and adoption of its budget and tax levies for the fiscal years ending June 30, 1997 and June 30, 1998, • the legal requirements relating to debt, • the appropriate law, rules and regulations pertaining to programs funded wholly or ' partially by other governmental agencies, • the cost accounting guidelines developed by the State of Oregon Executive Department with regard to the City's cost accounting system, ' • ORS 294.035 in the investment of public monies, • the collateral requirements for public fund deposits specified in ORS Chapter 295, , • ORS Chapter 279 in the awarding of public contracts and the construction of public improvements, and , 92 D City of Tigard, Oregon Audit Comments and Disclosures, Continued D D II. Other Comments and Disclosures, Continued: • the legal requirements, (as contained in Article IX, Section 3a of the Oregon D Constitution), pertaining to the use of revenue from taxes on motor vehicle use and fuel. However, it should be noted our audit was not directed primarily toward obtaining knowledge D of noncompliance with such requirements. Additionally, we make the following other comments: • We found the City's accounting records to be adequate for audit purposes. • We reviewed the City's insurance and fidelity bond coverage at June 30, 1997 and ascertained such policies appeared to be in force. We are not competent by training to state whether the insurance policies covering City-owned property in force at June 30, 1997, are adequate. COOPERS & LYBRAND L.L.P. D By . Brent A. Macey, a partner D Portland, Oregon September 17, 1997 0 D D D D 93 1 1 1 1 cm of ncaRo OREGON '