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CCDA Report FY Ending June 30, 2010 Annual Financial Report '' City Center Development Agency : 1.,- y CCDA ck—, 6,\ ii i. U 111 , �3+'S"7 'It' \ Ni*.....Nt;) � *,44 yi N' F f f ' S1 'SA rte, �, * �' � :'" - � 19 °� t y ♦y .. , fit * h .i�' r �I .�!�,� �f 4/b il l'A ,, .7, O. \ ,,v,,, 4r..'‘ Yi ns l'^ .121411r_lom I , I_ :', 6 4,___.\\ ". -1‘,.4„, 0 , L',,),,c:, ‘. ,, .., - , , --• 6,;sii: pat 4 . ,,,,,,, . , ./...A„,,, ,- ,....., 4 .,,,, 11 , _,_.,, ,,,..„__,,i v.,. q iga r „ fr 'ran, fi „ F i ,,atm.....AX ' 4 4 ( 1 _ 14 �` ` � ` ` i , 40; e i ry ' d Orr ! ' 0 „ -.-, ,„. , . . g . : - . , „,,, \ , 4 ,, w. ,, ,/s11 i "...., IlL 8 41 k 1 ,. f �: Fl 11 r „,,,,........t,„„,..., ,..' / , J,, lit. CI”, ',, l e ,, . \ ,',N, i '''' 4 ' 4. ' ,,,,,,,,,. , -,‘,. -1/4„. ,,, ..,,,, ,„, „,,,,;„ ,,, „...„... we. , , -,,,,v ‘,.\.00 44 ',.., / - ' .. , ,,,, „„ ....,„, , ., . , .. „. ,:., , 4 hi ''''' „of 4 Adh: 1- ", . ' .**,.' 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T --- - - -....,' , <`,,,,‘„,„*" • ,°- -, f ez 0 200 IC° ,ij� i j .e. ^. -... - 7r lJ' _� ■ �'. d ,.,,,„ { 0,-,- q ta ____. _ ,...,...0 „,,_ For the fiscal year ended June 30, 2010 TIGARD CITY CENTER DEVELOPMENT AGENCY ANNUAL FINANCIAL REPORT For the fiscal year ended June 30, 2010 Prepared by: City of Tigard — Financial and Information Services Department City Center Development Agency Table of Contents Mayor and City Council Members 3 Independent Accountant's Review Report 4 Management's Discussion and Analysis 6 Basic Financial Statements Government -Wide Financial Statements Statement of Net Assets 11 Statement of Activities 12 Fund Financial Statements — Governmental Funds Balance Sheet 13 Statement of Revenues and Expenditures 14 Notes to Basic Financial Statements 15 Supplementary Data Schedules of Revenues and Expenditures — Budget and Actual: Urban Renewal Agency Debt Service Fund 22 Urban Renewal Agency Capital Projects Fund 23 Schedule of Property Tax Transactions and Outstanding Balances: Urban Renewal Agency Debt Service Fund 24 Schedule of Future Debt Service Requirements: Urban Renewal Agency Debt Service Fund 25 Independent Accountant's Review Comments 26 2 Tigard City Center Development Agency Fiscal Year 2009 -2010 CITY CENTER DEVELOPMENT AGENCY BUDGET COMMITTEE Jason Snider Craig Dirksen Rick Parker Gretchen Buehner John Bailey Sydney Webb Dena Struck Marland Henderson Cameron James Nick Wilson Dan Goodrich (Alternate) CITY CENTER DEVELOPMENT AGENCY BOARD Craig Dirksen, Chair Gretchen Buehner Nick Wilson Sydney Webb Marland Henderson EXECUTIVE DIRECTOR Craig Prosser COMMUNITY DEVELOPMENT DIRECTOR Ron Bunch REDEVELOPMENT SENIOR PLANNER Sean Farrelly FINANCIAL and INFORMATION SERVICES DIRECTOR Toby LaFrance CITY CENTER DEVELOPMENT AGENCY City of Tigard 1 13125 Hall Blvd. Tigard, OR 97223 1503-639-4171 3 II GROVE, MUELLER & SWANK, P.C. CERTJE1EDJ UBLICACCQUN IAN I S ANL) CONSUL LAN IS 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581 -7788 INDEPENDENT ACCOUNTANT'S REVIEW REPORT Honorable Mayor and Council Members Tigard City Center Development Agency 13125 Hall Boulevard Tigard, Oregon 97223 We have reviewed the accompanying financial statements of the governmental activities and each major fund of the Tigard City Center Development Agency (the Agency) as of and for the year ended June 30, 2010, which collectively comprise the Agency's basic financial statements, as listed in the table of contents. Our review was made in accordance with Statements of Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the Agency's management. A review consists principally of inquiries of the Agency's personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements of the governmental activities and each major fund of the Agency in order for them to be in conformity with accounting principles generally accepted in the United States of America. Management's discussion and analysis is not a required part of the basic financial statements, but is supplementary information required by accounting standards generally accepted in the United States of America. We have applied certain limited procedures that consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit or review the information and express no opinion or assurance on it. 4 Our review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the basic financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. The individual fund financial statements and other supplementary information are not required parts of the basic financial statements, but are supplementary information required by accounting principles generally accepted in the United States of America. Such information has been subjected to the inquiry and analytical procedures applied in the review of the basic financial statements and we did not become aware of any material modifications that should be made to such information. GROVE, MUELLER & SWANK, P.C. CERTIFIED PUBLIC ACCOUNTANTS By: Charles A. Swank, A Shareholder January 31, 2011 5 Management's Discussion and Analysis As part of this Annual Financial Report, the Tigard City Center Development Agency (Agency) offers readers this narrative overview and analysis of the financial activities of the Agency for the fiscal year ended June 30, 2010. It focuses on significant financial issues, major financial activities, and resulting changes in financial positions, as well as economic factors affecting the Agency. This Management's Discussion and Analysis (MD&A) is based on currently known facts, decisions, and conditions that existed as of the date of the report. Financial Highlights • There were expenses of $72,613 for FY 2009 -10. The payments were for development and design of the downtown area. • The Agency recognized $277,485 in revenue from property taxes, interest earnings and intergovernmental. Overview of the Financial Statements The following discussion and analysis is intended to serve as an introduction to the Agency's basic financial statements. The Agency's basic financial statements include three components: 1. Government -wide financial statements, 2. Fund financial statements, and 3. Notes to the financial statements. Government - wide financial statements Government -wide financial statements are designed to provide readers with a broad overview of the Agency's finances, in a manner that is similar to a private- sector business. The Statement of Net Assets presents information on all of the Agency's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Agency is improving or deteriorating. The Statement of Activities presents information on how the Agency's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in the statement for some items that will result in cash flows in a future period, such as earned but uncollected property taxes. The government -wide financial statements indicate that the functions of the Agency are principally supported by property taxes and are considered governmental activities. The Agency does not have business activities in which costs are covered through user fees or charges. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or functions. The Agency uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All of the funds of the Agency are considered governmental funds. Governmental funds are used to account for Agency functions that are supported primarily by taxes and intergovernmental revenues. These are essentially the same functions that are reported as governmental activities in the government -wide financial statements. Unlike government -wide financial statements, governmental fund financial statements focus on the acquisition and use of spendable resources, as well as 6 balances of available spendable resources at the end of the fiscal year. Such information may be useful in evaluating the Agency's near -term requirements. The Agency maintains two separate governmental funds consisting of the Urban Renewal Debt Service Fund and the Urban Renewal Capital Projects Fund. Information is presented separately in the governmental fund balance sheet and in the governmental funds statement of revenues and expenditures. Notes to the basic Financial Statements The notes provide additional information that is essential for a full understanding of the data provided in the government -wide and fund financial statements. They are an integral part of the financial statements and should be read in conjunction with them. Government - wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of the Agency's financial position. In the case of the Agency, assets increased as revenues, primarily property taxes, exceeded expenses and resulted in an increase in cash and receivables. Tigard City Center Development Agency Statement of Net Assets June 30, Governmental Activities 2010 2009 ASSETS: Current and other assets $ 455,382 $ 187,553 Property taxes receivable 8,775 3,695 Capital assets 256,046 256,046 Total assets 720,203 447,294 LIABILITIES: Other liabilities 943 2,977 Long -term debt 393,687 323,616 Total liabilities 394,630 326,593 NET ASSETS: Investment in capital assets, net of related debt (95,196) (39,603) Restricted 420,769 160,304 Total net assets $ 325,573 $ 120,701 7 Tigard City Center Development Agency Governmental Activities Change Net Assets For the Year Ended June 30, REVENUES: 2010 2009 General revenues: Property taxes $ 259,570 $ 117,744 Intergovernmental 17,020 - Interest earnings 895 2,898 Total revenues 277,485 120,642 EXPENSES: Capital projects 72,613 39,603 Excess (defidency) of revenues over expenses 204,872 81,039 Change in net assets 204,872 81,039 Net assets - beginning 120,701 39,662 Net assets - ending $ 325,573 $ 120,701 Capital Assets As of June 30, 2010 the Agency had invested $256,046 in capital assets as reflected in the following table. Land $ 256,046 The Agency invested in land right -of -way purchases in order to construct improvements in the Downtown Tigard area per the Urban Renewal Plan. Economic Factors and Next Year's Budget The Tigard City Center Development Agency budget consists of two funds: The Capital Projects Fund and the Debt Service Fund. The Capital Projects Fund is supported by loans from the City of Tigard. These loans will be repaid with interest once the District begins generating enough tax increment revenue. The fund supports portions of two projects: that portion of the Burnham Street project that is directly attributable to the Agency's plans for downtown, including wider sidewalks and the installation of street furniture and medians, and the local match to the Metro Green Street grant for the design of the Main Street Improvements. The Debt Service Fund reflects the revenues anticipated to be generated by the growth in the assessed value of the urban renewal district. In FY 2010 -11 we expect that increment to be $267,083 which is reflective of the anticipated growth in the assessed value of the District. This fund also contains a beginning fund balance of $414,075, which represents the tax increment collected in FY 2007 -08, FY 2008 -09 and FY 2009 -10. Under state law, these revenues may only be used for the repayment of indebtedness. Under the Intergovernmental Agreement (IGA) between the Agency and the City of Tigard, loans from Tigard to the Agency are repaid in ten equal payments on the principle starting ten years after the loan; however, interest payments start in the second year after the loan. In FY 2009 -10, the Agency took its second loan from Tigard General Fund in the amount of $70,071. Since the IGA with Tigard states that interest 8 payments start in the second year after the loan, no payments will be necessary until FY 2010 -11 and no loan repayments were budgeted in FY 2009 -10. Requests for Information This financial report is designed to provide a general overview of the Agency's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Financial and Information Services Director, City of Tigard, 13125 SW Hall Blvd., Tigard, Oregon 97223. 9 Basic Financial Statements 10 Tigard City Center Development Agency Statement of Net Assets June 30, 2010 Governmental Activities ASSETS: Current and other assets $ 455,382 Property taxes receivable 8,775 Capital assets 256,046 Total assets 720,203 LIABILITIES: Other liabilities 943 Long -term debt 393,687 Total liabilities 394,630 NET ASSETS: Investment in capital assets, net of related debt (95,196) Restricted for debt service 420,769 Total net assets $ 325,573 See independent accountant's review report and notes to financial statements 11 Tigard City Center Development Agency Statement of Activities Year Ended June 30, 2010 Net (Expense) /Revenue and Change in Net Program Revenues Assets Total Charges for Governmental Functions /Programs Expenses Services Activities Governmental activities: Community development $ 72,613 $ 17,020 $ 55,593 Total governmental activities $ 72,613 $ 17,020 55,593 General revenues: Property taxes 259,570 Interest earnings 895 Total general revenues 260,465 Change in net assets 204,872 Net assets - beginning 120,701 Net assets - ending $ 325,573 See independent accountant's review report and notes to financial statements 12 Tigard City Center Development Agency Balance Sheet - Governmental Funds June 30, 2010 Total Debt Capital Governmental Service Projects Funds ASSETS: Cash and investments $ 411,994 $ 43,388 $ 455,382 Property taxes receivable 8,775 - 8,775 Total assets $ 420,769 $ 43,388 $ 464,157 LIABILITIES AND FUND BALANCES: LIABILITIES: Accounts payable and accrued liabilities $ - $ 943 $ 943 Deferred revenues: Property taxes 6,694 - 6,694 Total liabilities 6,694 943 7,637 FUND BALANCES: Unreserved 414,075 42,445 456,520 Total fund balances 414,075 42,445 456,520 Total liabilities and fund balances $ 420,769 $ 43,388 Capital assets used in governmental activities are not finandal resources and are not reported in the funds. 256,046 Long -term assets not available to pay for current- period expenditures and, therefore, are deferred in the funds: Property taxes earned but not available 6,694 Long -term liabilities - not reported in funds: Loan from City of Tigard, not due and payable in the current period (393,687) Net Assets of Governmental Activities $ 325,573 See independent accountant's review report and notes to financial statements 13 Tigard City Center Development Agency Statement of Revenues and Expenditures - Governmental Funds Year Ended June 30, 2010 Total Debt Capital Governmental Service Projects Funds REVENUES: Taxes $ 255,601 $ - $ 255,601 Charges for services - 17,020 17,020 Interest earnings 895 - 895 Total revenues 256,496 17,020 273,516 EXPENDITURES: Capital projects - 72,613 72,613 Change in fund balance before other financing sources: 256,496 (55,593) 200,903 Other financing sources: Proceeds from issuance of debt - 70,071 70,071 Change in fund balance 256,496 14,478 270,974 FUND BALANCE, BEGINNING OF YEAR 157,579 27,967 185,546 FUND BALANCE, END OF YEAR $ 414,075 $ 42,445 $ 456,520 Net change in fund balances - total governmental funds $ 270,974 Property taxes reported in the government -wide as revenue. 3,969 Other financing sources reported in the government- wide statements as a liability. (70,071) Change in Net Assets of Governmental Activities $ 204,872 See independent accountant's review report and notes to financial statements 14 Notes to Basic Financial Statements 15 Summary of Significant Accounting Policies: Year Ended June 30, 2010 The financial statements of the Tigard City Center Development Agency (Agency) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. GAAP statements include all relevant Governmental Accounting Standards Board (GASB) pronouncements. The Agency The Tigard City Center Development Agency was approved on May 16, 2006 with plans to commence operations during fiscal year 2009 under the provisions of Oregon Revised Statutes, Chapter 457 (ORS 457), to provide improvements in the downtown area so that it will be economically healthy while maintaining its "uniquely Tigard" character. The Tigard City Center Development Agency is a legally separate entity, which is governed by a board comprised of the City Council, as stipulated in the bylaws. The Council has the ability to impose its will on the Agency as determined on the basis of budget adoption, taxing authority, and funding. The purpose of the Agency is to undertake urban renewal projects and activities pursuant to the City's downtown redevelopment plan. The financial results of the Agency are reported herein as a debt service fund and a capital projects fund. The Agency is a blended component unit of the City of Tigard and its financial activities are included in the basic financial statements of the City. The Agency boundaries include primarily the City's central business district, general commercial district and professional commercial district. Basic Financial Statements The Agency's financial operations are presented at both the government -wide and fund financial levels. All activities of the Agency are categorized as governmental activities. Government -wide financial statements The statement of net assets and the statement of activities display information about the Agency as a whole. These statements include all the financial activities of the Agency. The statement of activities presents a comparison between direct expenses and program revenues for each function of the Agency's governmental activities. Direct expenses and revenues are clearly identifiable with a specific function. All costs are supported by general revenues which include property taxes and interest earnings. Fund financial statements These statements display information at the individual fund level. Each fund is considered to be a separate accounting entity. Funds are classified and summarized as governmental, proprietary and fiduciary. Currently the Agency has only governmental fund types. Basis of Presentation The financial transactions of the Agency are recorded in individual funds. Each fund is accounted for by providing a separate set of self - balancing accounts that comprises its assets, liabilities, fund equity, revenues and expenditures /expenses. 16 Summary of Significant Accounting Policies Cont'd: Professional standards set forth minimum criteria (percentage of the assets liabilities, revenues or expenditures /expenses or either fund category or the governmental and enterprise combined) for the determination of major funds. For purposes of presentation, each of the Agency's funds is presented as a major fund. The Urban Renewal Debt Service Fund accounts for the accumulation of resources and payments for long -term debt related to the Tigard City Center Development Agency. The Urban Renewal Capital Projects Fund accounts for the acquisition and development of capital assets related to the Tigard City Center Development Agency. Measurement Focus and Basis of Accounting Measurement focus is a term used to describe which transactions are recorded with the various financial statements. Basis of accounting refers to when transactions are recorded, regardless of the measurement focus. The government -wide financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Agency considers revenues to be available if they are collectible within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, long -term debt and compensated absences are recorded only when payment is due. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government -wide statements, reconciliation is necessary to explain the adjustments needed to transform the fund based financial statements into the government -wide presentation. Cash and Investments For purposes of the statements of cash flows, the Agency considers cash equivalents as all highly liquid debt instruments purchased with maturity of three months or less. Investments included in cash and cash equivalents are reported at fair value. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g. roads, pathways, street lights, etc.) are reported in the applicable governmental type activities columns in the government - wide financial statements. Capital assets are charged to expenditures as purchased or constructed in the governmental fund statements, and capitalized in the government -wide financial statements. Capital assets are recorded at historical cost or estimated historical cost. Donated assets are recorded at estimated fair market value as of the date of the donation. 17 Summary of Significant Accounting Policies Cont'd: Capital assets are defined the Agency as assets with an initial, individual cost of $5,000 or more, and an estimated useful life of greater than one year. Additions or improvements and other capital outlays that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are capitalized. Other costs for repairs and maintenance are expensed as incurred. Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with accumulated depreciation reflected in the Statement of Net Assets and is provided on the straight -line basis over the following estimated useful lives: Asset Years Buildings and improvements 25 -40 Improvements other than buildings 10 -20 Utility systems 25 -40 Infrastructure 20 -40 Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. The Agency currently has no designations of fund balance. Use of Estimates In preparing the Agency's financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses /expenditures during the reporting period. Actual results could differ from those estimates. 1. Stewardship, Compliance, and Accountability: Budgets The Agency's budget is prepared in accordance with Oregon local budget law. All annual appropriations lapse at fiscal year end. During the month of February each year, the Agency submits requests for appropriations to the City Manager that a budget may be prepared. In June, the proposed budget is presented to the City Council for approval. The Council holds public hearings and a final budget must be prepared and adopted no later than June 30. The adopted budget is prepared by fund and function. The legal level of budgetary control, (i.e., the level at which expenditures may not legally exceed appropriations) is the fund and function level. 2. Cash and Investments: The Agency's cash and investments reported on the statement of net assets represent the Agency's share of the City's cash and investment pool. The Agency's participation in the cash and investment pool is involuntary. Interest earnings from this pool are allocated to the Agency on a monthly basis. At June 30, 2010 the Agency's share of the City's cash and investment pool totaled $455,382. Information about the pooled investments is included in the City's annual financial report and may be obtained by contacting the City's Finance Department at 13125 SW Hall Blvd., Tigard, OR 97223. 18 3. Risk Management: As a component unit of the City, the Agency is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the City carries commercial insurance. The City has established risk management programs for liability insurance coverage. The Agency is covered under policies and programs insuring the City. There were no insurance claims attributable to the Agency as of June 30, 2010. 4. Receivables and Payables: Property taxes are levied and become a lien 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 or February 15. Taxes unpaid and outstanding on May 16 are considered delinquent. 5. Capital Assets: Capital assets include land right -of -way purchases for the Burnham Street reconstruction, which includes plans for wider sidewalks, landscaped medians, pedestrian crossings and on- street parking. Balance Balance July 1, 2009 Additions Deletions June 30, 2010 Land $ 256,046 $ - $ - $ 256,046 6. Long -term Debt: The Agency received a loan of $70,071 from the City of Tigard for urban renewal projects approved in the Urban Renewal Plan. The interest rate calculated for the loan is based on the same average rate as that earned on other funds invested by the City, which is currently 1 %. Tigard City Center Development Agency Schedule of Long -Term Debt Transactions For the fiscal year ended June 30, 2010 Debt Transactions Interest Outstanding Outstanding June 30, 2009 Additions Paid June 30, 2010 Paid Loan from City of Tigard for urban renewal projects. Annual interest only payments starting June 30, 2011. Annual principal payments starting June 30, 2019. $ 323,616 $ 70,071 $ - $ 393,687 $ - 19 Long Term Debt Cont'd: Future debt service requirements are as follows: Fiscal Year Ending June 30 Principal Interest Total 2010 $ - $ - $ - 2011 - 3,937 3,937 2012 - 3,937 3,937 2013 - 3,937 3,937 2014 - 3,937 3,937 2015 -2019 37,629 19,685 57,314 2020 -2024 193,868 13,963 207,831 2025 -2028 162,190 4,075 166,265 $ 393,687 $ 53,471 $ 447,158 20 Supplementary Data 21 Tigard City Center Development Agency Urban Renewal Agency Debt Service Fund Schedule of Revenues and Expenditures - Budget and Actual For the fiscal year ended June 30, 2010 Variance Budgeted Amounts Actual Over Original Final Amounts (Under) REVENUES: Property taxes $ 177,004 $ 177,004 $ 255,601 $ 78,597 Interest earnings 718 718 895 177 Total revenues 177,722 177,722 256,496 78,774 Change in fund balance 177,722 177,722 256,496 78,774 FUND BALANCE BEGINNING OF YEAR 159,979 159,979 157,579 (2,400) FUND BALANCE END OF YEAR $ 337,701 $ 337,701 $ 414,075 $ 76,374 22 Tigard City Center Development Agency Urban Renewal Agency Capital Projects Fund Schedule of Revenues and Expenditures - Budget and Actual For the fiscal year ended June 30, 2010 Variance Budgeted Amounts Actual Over Original Final Amounts (Under) REVENUES: Intergovernmental $ 150,000 $ 150,000 $ 17,020 $ (132,980) EXPENDITURES: Capital projects 177,967 177,967 72,613 105,354 Change in fund balance before other financing sources (uses) (27,967) (27,967) (55,593) (27,626) Other finandng sources (uses): Proceeds from issuance of debt - - 70,071 70,071 Change in fund balance (27,967) (27,967) 14,478 42,445 FUND BALANCE BEGINNING OF YEAR 27,967 27,967 27,967 - FUND BALANCE END OF YEAR $ - $ - $ 42,445 $ 42,445 23 Tigard City Center Development Agency Urban Renewal Agency Debt Service Fund Schedule of Property Tax Transactions and Outstanding Balances For the fiscal year ended June 30, 2010 Property Levy as Interest, Property Taxes Extended Discounts Taxes Year of Receivable by and Receivable Levy July 1, 2009 Assessor Adjustments Turnovers June 30, 2010 2009 -10 $ - $ 267,083 $ (7,463) $ (252,174) $ 7,446 2008 -09 3,695 - (54) (2,312) 1,329 3,695 $ 267,083 $ (7,517) $ (254,486) $ 8,775 24 Tigard City Center Development Agency Urban Renewal Agency Debt Service Fund Schedule of Future Debt Service Requirements For the fiscal year ended June 30, 2010 Future debt service requirements are as follows: Fiscal Year Ending June 30 Principal Interest Total 2010 - 2011 - 3,937 3,937 2012 - 3,937 3,937 2013 - 3,937 3,937 2014 - 3,937 3,937 2015 -2019 37,629 19,685 57,314 2020 -2024 193,868 13,963 207,831 2025 -2028 162,190 4,075 166,265 $ 393,687 $ 53,471 $ 447,158 25 TIGARD CITY CENTER DEVELOPMENT AGENCY INDEPENDENT ACCOUNTANT'S REVIEW COMMENTS YEAR ENDED JUNE 30, 2010 Oregon Administrative Rules 162 - 040 -000 through 162- 040 -160 of the Minimum Standards for Review of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, comments, and disclosures required in annual financial reports. Required comments and disclosures related to our review of such financial statements and schedules are set forth on the following pages. Significant Accounting Policies The significant accounting policies followed in preparing the Agency's financial statements are summarized in the notes to the financial statements. Organization and Fund Structure The organization and fund structure of the Agency is documented on the title page and in the notes to the financial statements. Internal Accounting Control and Accounting Records We have reviewed the financial statements of the Tigard City Center development Agency as of and for the year ended June 30, 2010, and have issued our report thereon dated January 31, 2011. In accordance with Statements of Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants, we performed inquiry and analyzed procedures related to the accounting records and adequacy of accounting and internal control systems. Indebtedness The Agency has no bonded indebtedness. We are not aware of any violations related to other indebtedness. Adequacy of Collateral Securing Depository Balances The Agency has complied with Oregon Revised Statutes Chapter 295 in relation to deposit accounts. Budget Compliance We are not aware of any failure to comply with Local Budget Law (ORS 294) in the preparation, adoption and execution of the budget for the fiscal years ending June 30, 2010 and 2011. Insurance and Fidelity Bonds We are not aware of any failure to comply with legal requirements relating to insurance and fidelity bond coverage at June 30, 2010. Investments We are not aware of any failure to comply with ORS 295, as it pertains to investment of public funds, during the year ended June 30, 2010. 26 TIGARD CITY CENTER DEVELOPMENT AGENCY INDEPENDENT ACCOUNTANT'S REVIEW COMMENTS (Continued) YEAR ENDED JUNE 30, 2010 Public Contracting and Purchasing We are not aware of any failure to comply with the legal requirements relating to public contracting, purchasing procedures and construction of public improvements. Programs Funded From Outside Sources We are not aware of any failure to comply with appropriate laws, rules, and regulations pertaining to programs funded wholly or partially by the other governmental agencies. Highway Funds The Agency received no revenue from taxes on motor vehicle fuel. Schedule of Accountability of Independently Elected Officials There are no elected Agency officials who collect or receive funds on behalf of the Agency. This report is intended for the information and use of the board of directors and management of the Tigard City Center development Agency and is not intended and should not be used by anyone other than those parties. GROVE, MUELLER & SWANK, P.C. CERTIFIED PUBLIC ACCOUNTANTS By: Charles A. Swank, A Shareholder January 31, 2011 27