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City of Tigard Budget - FY 2011-2012City of Tigard Adop T ed Budge T FISCAL YEAR 2011–2012 13125 SW Hall Boulevard | Tigard, OR 97223 | www.tigard-or.gov CITY OF TIGARD, OREGON FY 2011 -12 ADOPTED BUDGET BUDGET COMMITTEE Dan Goodrich Mayor Craig Dirksen Melody Graeber Councilor Gretchen Buehner Christopher Henn Councilor Marland Henderson Cameron James Councilor Nick Wilson Rick Parker Councilor Marc Woodard CITY EXECUTIVE STAFF City Manager Craig Prosser Assistant City Manager Liz Newton Chief of Police Alan Orr Community Development Director Ron Bunch Finance and Information Services Director Toby LaFrance Human Resources Director Sandy Zodrow Library Director Margaret Barnes Public Works Director Dennis Koellermeier Assistant City Manager/Risk Manager Loreen Mills City Attorney Jordan Schrader Ramis PC Prepared by the following City of Tigard Staff: Craig Prosser, City Manager Toby LaFrance, Finance and Information Services Director Debbie Smith -Wagar, Assistant Finance Director Amy Lawson, Accounting Supervisor Carissa Collins, Senior Management Analyst Liz Lutz, Confidential Executive Assistant www.tigard -or.gov The Government Finance Officers Association of the United States and Canada (GFOA) present- ed an award of Distinguished Budget Presentation to the City of Tigard for its annual budget for the fiscal year beginning July 1, 2010. In order to receive the award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a commu- nication device. The award is valid for a period of one year only. We believe our current budget continues to con- form to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. T ABLE OF C ONTENTS INTRODUCTION 2011 -2012 Budget Transmittal .................................................................................................... 1 Council Goals ............................................................................................................................... 4 Citywide Organization Chart - By Program ............................................................................. 6 READER’S GUIDE User’s Guide to the Budget Document .................................................................................... 7 Budget Process ........................................................................................................................... 11 Basis of Budgeting ..................................................................................................................... 14 Fund Structure ............................................................................................................................ 15 Program Budget Structure ........................................................................................................ 16 Operation Division Funding .................................................................................................... 18 City Information ........................................................................................................................ 20 City of Tigard Map .................................................................................................................... 24 BUDGET SUMMARY Where the money comes from... ............................................................................................. 25 Where the money goes... ........................................................................................................... 26 Fund Balance .............................................................................................................................. 30 Summary of All Funds .............................................................................................................. 31 Summary of Contingency ......................................................................................................... 36 Operating Budget Summary ..................................................................................................... 37 Comprehensive Long Term Financial Forecast .................................................................... 38 REVENUE ANALYSIS Current Revenue Summary by Fund ...................................................................................... 47 Property Tax Summary ............................................................................................................. 48 Assessed Valuation .................................................................................................................... 49 Property Tax Revenue ............................................................................................................... 50 State Revenue Sharing ............................................................................................................... 51 Enterprise Funds - User Fees .................................................................................................. 52 Connection Fees ........................................................................................................................ 53 Permit Fee Revenue ................................................................................................................... 54 County Shared Revenue ............................................................................................................ 55 Fine and Forfeiture Revenue .................................................................................................... 56 Interest Earnings ........................................................................................................................ 57 Franchise Fee Revenue ............................................................................................................. 58 Interfund Transfers ................................................................................................................... 59 PROGRAM SUMMARIES Program Summaries .................................................................................................................. 65 Expenditure Summary by Program ........................................................................................ 66 Operating Budget History ........................................................................................................ 67 Staffing Levels ............................................................................................................................ 69 COMMUNITY SERVICES PROGRAM Community Services Organization Chart .............................................................................. 71 Expenditure/FTE Summary .................................................................................................... 73 Police Organization Chart/FTE Summary ................................................................................. 74 Police Mission Statement ................................................................................................... 75 Police Administration ......................................................................................................... 76 Police Operations ............................................................................................................... 84 Police Support Services ...................................................................................................... 90 Library Organization Chart/FTE Summary ............................................................................... 100 Library Administration ..................................................................................................... 101 Library Reader Services .................................................................................................... 107 Library Technical Services ............................................................................................... 113 Library Circulation ............................................................................................................ 116 Social Services and Community Events ......................................................................... 122 PUBLIC WORKS PROGRAM Public Works Organization Chart ......................................................................................... 125 Expenditure/FTE Summary .................................................................................................. 127 Public Works Public Works Administration .......................................................................................... 128 Parks and Grounds ........................................................................................................... 133 Street Maintenance ........................................................................................................... 138 Fleet Maintenance ............................................................................................................. 144 Property Management ...................................................................................................... 147 Water ................................................................................................................................... 151 Sanitary Sewer .................................................................................................................... 157 Stormwater ......................................................................................................................... 161 PW Engineering ................................................................................................................ 166 Street Lights and Signals .................................................................................................. 171 COMMUNITY DEVELOPMENT PROGRAM Community Development Organization Chart ................................................................... 173 Expenditure/FTE Summary .................................................................................................. 175 Community Development Community Development Administration ................................................................... 176 Building ............................................................................................................................. 181 Development Services ...................................................................................................... 186 Development Services -Engineering (Historical) .......................................................... 192 Community Planning ........................................................................................................ 194 Downtown Redevelopment ............................................................................................ 200 Capital Construction & Transportation (Historical) .................................................... 205 Street Lights & Signals (Historical) ................................................................................ 207 POLICY AND ADMINISTRATION PROGRAM Policy and Administration Organization Chart ................................................................... 209 Expenditure/FTE Summary .................................................................................................. 210 Mayor & Council Organization Chart ........................................................................................................... 211 City Management Organization Chart/FTE Summary .............................................................................. 215 City Manager’s Office ...................................................................................................... 216 Human Resources ............................................................................................................ 220 Risk Management ............................................................................................................. 224 Administrative Services Organization Chart/FTE Summary ............................................................................... 228 Design & Communications ............................................................................................. 229 Municipal Court ................................................................................................................ 233 City Recorder/Records .................................................................................................... 237 Finance and Information Services Organization Chart/FTE Summary ............................................................................... 241 Finance and Information Services Administration ...................................................... 242 Financial Operations ......................................................................................................... 246 Utility Billing ..................................................................................................................... 249 Information Technology .................................................................................................. 252 Contracts and Purchasing ................................................................................................ 256 CAPITAL IMPROVEMENT PLAN Capital Improvement Plan Summary ................................................................................... 259 Streets ........................................................................................................................................ 264 Parks .......................................................................................................................................... 271 Water ......................................................................................................................................... 277 Sanitary Sewer .......................................................................................................................... 286 Stormwater ................................................................................................................................ 300 Facilities ..................................................................................................................................... 306 DEBT SERVICE Debt Service ............................................................................................................................. 309 Debt Service Summary ........................................................................................................... 310 Outstanding Debt Issues ........................................................................................................ 311 Debt Service Schedules General Obligation Bond -Library ......................................................................................... 312 General Obligation Bond -Parks ............................................................................................ 313 General Obligation Bonds Summary .................................................................................... 314 OECDD/Cook Park Expansion .......................................................................................... 315 OECDD/Cook Park Expansion Summary ......................................................................... 316 Tigard Transportation Build America Bond ........................................................................ 317 Tigard Transportation Build America Bond Summary ...................................................... 318 Assessment -69th Avenue Local Improvement District ..................................................... 319 Assessment -Dartmouth Local Improvement District - 2003 ........................................... 320 Assessment -Bancroft Improvement Bonds Summary ....................................................... 321 FUND SUMMARIES Fund Summaries Introduction .............................................................................................. 323 General Funds General Fund ..................................................................................................................... 324 Enterprise Funds Sanitary Sewer Fund ......................................................................................................... 329 Stormwater Fund .............................................................................................................. 331 Water Fund ....................................................................................................................... 332 Water CIP Fund ................................................................................................................ 335 Water Debt Service Fund ................................................................................................ 337 Water Quality/Quantity Fund ....................................................................................... 338 Water SDC Fund ............................................................................................................. 339 Special Revenue Fund Building Fund ................................................................................................................... 340 City Gas Tax Fund ........................................................................................................... 342 Criminal Forfeiture Fund ............................................................................................... 343 Electrical Inspection Fund .............................................................................................. 344 Gas Tax Fund ................................................................................................................... 345 Library Donations & Bequests Fund ............................................................................. 347 Parks Bond Fund .............................................................................................................. 348 Parks SDC Fund ............................................................................................................... 349 Street Maintenance Fund ................................................................................................. 350 Traffic Impact Fee ............................................................................................................ 352 Transportation Development Tax .................................................................................. 353 Urban Forestry Fund ........................................................................................................ 354 Underground Utility Fund ............................................................................................... 355 Debt Service Fund Bancroft Debt Services Fund .......................................................................................... 356 General Obligation Debt Service Fund ......................................................................... 357 Capital Projects Fund Facilities Capital Projects Fund ...................................................................................... 358 Parks Capital Fund ........................................................................................................... 360 Transportation CIP Fund ................................................................................................ 362 Internal Services Funds Central Services Fund ...................................................................................................... 363 Fleet/Property Management Fund ............................................................................... 365 Insurance Fund .................................................................................................................. 366 APPENDIX Schedule of Appropriations ................................................................................................... 367 Financial Policies ...................................................................................................................... 377 Glossary of Budget Related Terms ....................................................................................... 384 Advisory Committees .............................................................................................................. 389 Staffing Summary ..................................................................................................................... 394 Management/Professional Group Salary Schedule ............................................................ 396 Tigard Police Officers Assoc. Salary Schedule .................................................................... 400 Oregon Public Employees Union Salary Schedule ............................................................. 401 City of Tigard | ADOPTED B UDGET | FY 2 01 1 –2 0 1 2 I NTRODUCTION - P AGE 1 FY 2011 -2012 B UDGET T RANSMITTAL To the Citizens of Tigard, It is with some regret and a great deal of pleasure that I present the final budget of my career to you. Thirty -six years is a long time to be developing public budgets and managing public finances. For at least twenty -eight of those years, we were dealing with constrained resources and growing demands. The debate now is whether government has a revenue problem or whether it has an expenditure prob- lem. In point of fact, we have both. It is called a budget problem and it will not be solved by looking at only one side of the equation. Tigard has a strong history of conservative financial management. Since Fiscal Year 2008, we have re- duced staffing by 18.55 FTE or seven percent of our workforce. We are working smarter. We are working harder. We are using technology to reduce costs and get the job done Tigard city employees were among the first in the Portland metropolitan area to begin sharing the cost of their health and dental insurance costs. Tigard general government employees are not covered by PERS. (Tigard Po- lice are covered by PERS.) About 10 years ago, the city looked very seriously into joining PERS for all employees. The City Council at that time and city management decided not to join PERS because of concerns about future cost increases. Tigard also has a history of reasoned fee increases when needed. Most recently, Tigard committed to a course of water rate increases which will end up doubling water rates over the next five years. These fee increases are needed to secure Tigard’s first ownership interest in a source of water since the city was incorporated in 1961. Tigard is sharing the cost of a $230 million project with the City of Lake Oswego which allows the two cities to do something that neither could do alone. The alternatives are to continuing buying water from the City of Portland (which is now actively discussing doubling their water rates) or begin to ration water by 2016. With this background in mind, you will recall that last year’s budget message, followed our second round of position cuts and discussed our strategy for building a budget that could be sustained for two years. Our measure of success would be to maintain a projected General Fund ending fund balance of at least $5 million, both in FY 2011 (the budget we were building last year) and FY 2012 (the budget we are building this year). Our strategy worked! All of our operations are now working at a sustainable level. We have stopped providing some services requested by our citizens (and we are still receiving complaints about that). We still have challenges, but those challenges center around funding for future capital needs. We are still maintaining a level of operations that can be sustained for the next two fiscal years (until FY 2013). We are thinking of this as a hold -the -line budget, with a couple of targeted changes. The Adopted Budget honors Tigard’s labor agreement with SEIU and the cost increases that agreement requires. Additionally, a hold -the -line budget means that material, service and equipment costs remain the same with a couple of targeted exceptions. P AGE 2 - C ITY OF T IGARD FY 2011 -2012 B UDGET T RANSMITTAL There are position increases in two operations not funded by the General Fund. The first of these are as is the Building Division of the Community Development Department. The Building Division was the first division affected by cut backs in response to the recession. In 2009, we cut staffing from 18.8 FTE to 6.2 FTE in response to the downturn in the building industry, which lowered Division work- load and revenues. That cut included putting all remaining staff on a 32 -hour work -week (.8 FTE). We have already returned permit technicians and plans reviewers to a full work week due to an upturn on workload and revenues. In this budget, we are returning the three inspectors to a 40 -hour work week and adding 0.3 FTE to a half -time Planning Assistant position to assist at the front counter and with records. This will add a total of 0.9 FTE in the Building Division in FY 2012. In the Utility Billing section of Finance and Information Services, there is an increase of 0.8 FTE. At the time the Council adopted the Water Finance Plan and adopted the water rate increase schedule, the city switched to monthly billing of utility bills. This was done to ease the impact on the customer, but it doubled the number of meter reads that have to be done in a year. The city attempted to handle this additional workload by contracting it out to a private meter reading firm. This has not been suc- cessful. This budget adds one 32 -hour Customer Service Field Worker to the meter -reading function. This will not increase overall program costs since we are paying for the contract services presently, but it will increase overall city FTE. This function is paid by a transfer from the Water Fund. The table below outlines the changes discussed above and other target changes to city operations con- tained in the Adopted Budget. Fund /Department Amount FTE Re ason Building /Community Development $59,300 0.9 Additional workload for inspections and records in the Building Division Central Services /Finance & Information Services $145,000 0.8 Cost of monthly billing in Utility Billing, including additional met er reading position and bill printing and mailing costs. General Fund /Police $373,545 0.0 Resumption of vehicle replacement after one -year hiatus, increased dispatch costs, and in -car video lease costs . Sewer and Stor mwater Funds /Public Works $60,000 0.0 Performance audit Sewer Fund /Public Works $22,500 0.0 Increase in required enforcement program with Clean Water Services Central Service Fund /City Manager’s Office ($22,150) 0.0 Continued cut of Family Fest Eve nt Property Management / Public Works $96,245 0.0 Needed facility repairs and property improvements added by Budget Committee Human Resource and Mayor & City Council 2,500 0.0 Add $2,000 to Human Resource for temporary services and $500 to Mayor and Coun cil for travel expenses to League of Oregon Cities meetings in Salem added by Budget Committee Public Works, Community Development, and Finance $196,236 0.0 Carry forward unspent budget appropriation for projects that were not completed in prior fiscal ye ar that wil l be done in FY 2012 added by Council at Budget Hearing Total All Funds $933,176 1.7 I NTRODUCTION - P AGE 3 FY 2011 -2012 B UDGET T RANSMITTAL This Adopted Budget marks a turn in Tigard’s Capital Improvement Program (CIP). In prior years, the focus of the CIP was transportation. This Proposed Budget moves to the implementation of capi- tal improvements for parks and water, making up 78 percent of the CIP for FY 2012. In the area of transportation, Tigard is wrapping up major projects on Burnham Street and the Pacific Hwy/Main St /Greenburg Rd intersection. In November 2010, Tigard citizens voted to approve a $17 million Parks Bond to purchase land and develop parks. The Adopted Budget has $6 million in projects relat- ed to the bond. The LO/Tigard water partnership and associated water projects are ramping up. Wa- ter projects make up over $14 million in the Adopted Budget. To fund the parks and the water projects, Tigard’s debt service requirements will increase significantly. In January 2011, Tigard issued $17 million in General Obligation bonds to pay for the parks projects. The Adopted Budget includes the first debt service payments on the parks bonds. At the same time that the parks bonds were issued, the existing General Obligation debt on the library was refinanced and the Adopted Budget includes the lower payments amounts for the library bond. The Adopted Budget also anticipates the first of three issuances of revenue bonds for the LO/Tigard water partner- ship. Based on the Water Financing Plan, the first revenue bond will be $44 million and will likely be issued in the fall of 2011. This has been a challenging year, but a long history of responsible financial management and an early decision to adjust city operations to comply with the new financial realities has put Tigard in a good position to weather the remainder of the recession. We are feeling cautiously optimistic about the fu- ture. It has been a pleasure serving the people of the City of Tigard, the Metro region, the City of Lake Oswego, the City of Portland, and the State of Oregon throughout my career. It has been a very chal- lenging time to work in the field of public finance and city management. We have accomplished great things in the City of Tigard over the past six to seven years. I will miss the work and I will definitely miss the people. However, with a skilled and forward -looking City Council, talented city staff, and dedicated city volunteers such as those on the Budget Committee, I have absolute faith that Tigard will continue to prosper. Thank you for the opportunity to serve this community. Craig Prosser City Manager P AGE 4 - C ITY OF T IGARD C OUNCIL G OALS 2011 TIGARD CITY COUNCIL GOALS 1. Implement Comprehensive Plan a. Show substantial progress on new Tigard Triangle Master Plan. b. Update Tree Code. c. Participate in the Southwest Corridor Study. d. Work with state and regional partners to modify the Transportation Planning Rule. e. Work with partners on urbanization policy issues. 2. Implement Downtown and Town Center Redevelopment Opportunities a. Develop strategy and materials to attract developers and tenants. b. Advance Ash Avenue Railroad Crossing. 3. Complete Plans for Parkland Acquisition 4. Advance Methods of Communication a. Communication is a part of everyone’s job. b. Support efforts to change organizational culture. 5. Continue Coordination with Lake Oswego on Water Partnership. 6. Financial Stability a. Hold the line on the General Fund Budget. b. Work with partners on long -range solutions to statewide structural problems. c. Evaluate the City’s internal sustainability efforts. Five -Year Council Goals  Obtain Ash Avenue railroad crossing in downtown  Explore 99W Urban Renewal District  Continue to support the Legislature in addressing the financial needs of state and local governments in Oregon  Develop long -term financial strategy  Start implementing plan for City fa cility needs  Develop Sustainability Plan Long -Term Council Goals  Continue pursuing opportunities to reduce traffic congestion  Continue implementing Downtown Urban Renewal Plan  Continue to monitor the Tigard/Lake Oswego Water Partnership I NTRODUCTION - P AGE 5 C ITYWIDE O RGANIZATION C HART - B Y D EPARTMENT M a y o r & C i t y C o u n c i l C i t y A t t o r n e y C I T Y O F T I G A R D H u m a n R e s o u r c e s A d m i n i s t r a t i o n C o m m u n i t y P l a n n i n g D e v e l o p m e n t S e r v i c e s I n f o r m a t i o n S e r v i c e s A d m i n i s t r a t i o n C i r c u l a t i o n A d m i n i s t r a t i o n S u p p o r t S e r v i c e s P o l i c e O p e r a t i o n s P u b l i c W o r k s E n g i n e e r i n g P r o p e r t y M a n a g e m e n t B u i l d i n g R e a d e r S e r v i c e s T e c h n i c a l S e r v i c e s P a r k s & G r o u n d s S t o r m W a t e r W a t e r S a n i t a r y S e w e r F l e e t M a i n t e n a n c e S t r e e t M a i n t e n a n c e C i t y M a n a g e m e n t C o m m u n i t y D e v e l o p m e n t F i n a n c e & I n f o r m a t i o n S e r v i c e s L i b r a r y P u b l i c W o r k s P o l i c e C i t y M a n a g e r D o w n t o w n R e d e v e l o p m e n t F i n a n c i a l O p e r a t i o n s A d m i n i s t r a t i o n A d m i n i s t r a t i o n R i s k M a n a g e m e n t C i t y M a n a g e r ’s O f f i c e A d m i n i s t r a t i v e S e r v i c e s D e s i g n & C o m m u n i c a t i o n s C i t y R e c o r d e r / R e c o r d s M u n i c i p a l C o u r t S t r e e t L i g h t s & S i g n a l s U t i l i t y B i l l i n g C o n t r a c t s & P u r c h a s i n g C I T I Z E N S O F T I G A R D P AGE 6 - C ITY OF T IGARD City of Tigard | A DOPTED B UDGET | FY 2 01 1 –2 0 1 2 R EADER ’S G UIDE - P AGE 7 U SER ’S G UIDE TO THE B UDGET D OCUMENT The budget document describes how the City of Tigard plans to meet the needs of the community. It is also a resource for citizens interested in learning more about the operation of their city government. The city budget fulfills several functions: Firstly, the budget is a communications tool. It is one means that the city uses to explain the various demands, needs, constraints, resources and opportunities it faces. It communicates the choices made and the direction in which the city is headed. At the highest level, the budget is an important policy document. The annual budget process is the one time during the year when all of the city operations and processes are reviewed in a compre- hensive manner. (The city reviews the needs of the community, priorities and goals, and then matches resources against those needs, priorities, and goals.) Resources are limited, so choices must be made. The annual budget reflects those choices. The budget also serves as an operational guide. It identifies work programs and goals to be achieved for each department or unit in the coming fiscal year. At its most basic level, the budget is an accounting document. It establishes the basic guidelines that the city uses to measure and control expenditures and to track its revenues. The budget document has been organized to assist the reader in understanding how and why the city budgets as it does and to provide more summary level information at the beginning of the budget doc- u m e n t w i t h m o r e d e t a i l e d i n f o r m a t i o n a t t h e e n d . N o t o n l y i s t h e d o c u m e n t a r r a n g e d f r o m a h i g h l e v- el summary to more detailed, each section is also arranged in this manner. As the reader reviews the information in this document, he or she will see this arrangement as well as the functions listed above that a budget should fulfill. The City of Tigard’s budget document is divided into thirteen primary sections as presented below: Introduction The preceding section contains the Budget Transmittal from the City Manager. This letter summarizes the major provisions that have been included in the FY 2011 -12 Adopted Budget. It includes a discus- sion of the major policy issues that were considered and major changes from last year. This section also contains council coals which provide the foundation and direction for many of the choices made in constructing this budget. A citywide organization chart orienting the reader as to the programs and services provided by the city is included in this section. P AGE 8 - C ITY OF T IGARD U SER ’S G UIDE TO THE B UDGET D OCUMENT Reader’s Guide This section provides an overview of the budget process, the basis of budgeting, the budget structure and general city information including a map. This section is designed to help familiarize the reader with the city and its budget. Budget Summary The Budget Summary is designed to give the reader an overall view of the entire city budget. This section contains summary charts and information to provide a one -stop picture of the budget. These high -level summaries provide an easy reference for overall city trends and conditions. This section also presents the Comprehensive Long Term Financial Forecast. The Financial Forecast projects city revenues and expenses for major operational areas of the city over the next five years, based on current conditions. The city uses the forecast to identify future trends, needed corrective ac- tion, and to forecast the success of current financial efforts. Revenue Analysis The Revenue Analysis section contains information about the city’s primary sources of revenue across all funds. This section provides a basic explanation of Oregon’s property tax system and a summary of the City of Tigard’s property tax revenues and assessed valuation. This section also provides historical trend information for each of the city’s major revenue categories. Program Summaries The city’s operating budget is organized by major program areas: Community Services, Public Works, Community Development and Policy and Administration. Each program area contains one or more operating departments or budget units. The Program Summaries section provides detailed information for each program area by department and budget unit. The information in this section includes a pro- gram -level narrative and summary expenditures and authorized position counts. The following subsections within the Program Summaries section include a narrative for each budget unit presenting the long term results the unit is working to achieve, a description of the unit’s services and activities, FY 2011 -12 goals and objectives, accomplishments for the prior fiscal year, and major highlights of the unit’s budget. This section also includes workload indicators for each unit showing how much work it has accomplished in the past and how that workload is expected to change in FY 2011 -12. Effectiveness measures show the progress of each unit in achieving its long term results R EADER ’S G UIDE - P AGE 9 U SER ’S G UIDE TO THE B UDGET D OCUMENT Community Services Program This section includes budget appropriations and explanatory material for the Community Services Pro- gram. The Community Service Program includes Police, Library and Social Services and Community Events. Public Works Program This section includes budget appropriations and explanatory material for the Public Works Program. The Public Works Program includes Public Works Administration, Engineering, Parks and Grounds, Sanitary Sewer, Stormwater, Street Maintenance, Fleet Maintenance, Facilities, and Water. Community Development Program This section includes budget appropriations and explanatory material for the Community Develop- ment Program. The Community Development Program includes Community Development Admin- istration, Building, Community Planning, Development Services and Downtown Redevelopment. Policy and Administration Program This section includes budget appropriations and explanatory material for the Mayor and Council, City Management, Administrative Services and Finance and Information Services. Capital Improvements The Capital Improvements section provides information about the city’s five -year capital improvement program. It includes information about major construction and capital acquisition projects that are planned during FY 2011 -12 as well as projections of capital needs over the following four years. Debt Service The Debt Service section presents information on the City of Tigard’s outstanding long term debt. This section shows current and future debt service requirements, calculations of debt ratios, the com- parison to statutory debt limitations, and debt service schedules. Fund Summaries The Fund Summaries section shows the city’s fund structure and detailed fund reconciliations for each fund managed by the city. A fund is a self -balancing set of accounts and is used to track revenues and expenditures for specific operations. Under Oregon law and “accounting principles generally accepted in the United States of America”, revenues and expenditures of individual funds may not be co - mingled. This section shows current and historical information on the resources and requirements of each of the city’s funds. P AGE 10 - C ITY OF T IGARD U SER ’S G UIDE TO THE B UDGET D OCUMENT Appendix The Appendix section contains a variety of other budget -related information to assist the reader, such as salary schedules, staffing summary, the city’s financial policies, and a glossary of terms used in the budget. This section also includes a listing of Advisory Board and Committee members. R EADER ’S G UIDE - P AGE 11 B UDGET P ROCESS Budget Process Staff begins preparing the annual budget several months prior to adoption. In November and Decem- ber, staff completes a five year forecast of all revenues, expenditures and fund balances. The forecast takes the budget and known future changes in fees, technology, laws and impact of capital construction on operating costs. The forecast does not assume future decisions in staffing levels or proposed pro- grams. By producing a forecast on known items, it allows the city to see the size of decisions that need to be made. As the city works through the budget process in the following months, the forecast is continually updated. The City Manager reviews the forecasts for all funds and directs which future expenditures must be postponed or eliminated to ensure a stable financial future, but still provide the necessary resources to continue to provide current services at the same level of service in the future and accomplish City goals that are set by Council in December. Budget parameters and guidelines for the coming fiscal year are set in relation to the finalized five year forecast. Guidelines can include the number of additional or reduced staffing allowed in the budget requests, changes in programs, equipment replacement, etc. In January, department staff prepares their requested budgets to fulfill City Council set for the coming year. These goals and the necessary re- sources to accomplish them are included in the budget requests and may require adjustments to the forecast and budget guidelines. After departments submit their requested budgets, Finance staff reviews the requests and meets with the departments to discuss the requests and obtain additional information to assist with their analysis. In March and April, Finance staff finalizes their budget analyses and meets with the City Manager and department directors to review the requests. The City Manager makes decisions on the requested budgets, which are then incorporated into the proposed budget. In April and into May, the City Manager presents the proposed budget to the Budget Committee. The Budget Committee, in accordance with Oregon Budget Law, is made up of the City Council and an equal number of citizen members. In Tigard’s case, the Budget Committee is comprised of the Mayor, four council members, and five citizens. All budget meetings are open to the public and are required to be advertised as such. At each budget meeting, time for public comment and input is provided. After all input has been received, the Budget Committee approves the budget with any changes and forwards it to the City Council for adoption. In June, the City Council holds another public hearing to allow for additional public comment. After the public hearing, the approved budget is adopted by City Council resolution. The adopted budget takes effect on July 1. According to Oregon Budget Law, a budget must be adopted prior to July 1. P AGE 12 - C ITY OF T IGARD B UDGET P ROCESS Budget Calendar November -December Finance staff updates the five year revenue and expenditure fore- casts and sets growth trends and baselines. City Manager reviews forecasts and sets guidelines and policy for next year’s budget. City Council establishes goals for the year. Finance staff prepares budget instructions, provides training as required, and distributes budget guidelines to department staff. January Departments prepare budget requests for review by Finance staff. Finance staff reviews requests and prepares budget analysis. Departments and Finance staff review budget requests February The five year forecast is updated based on requested budget amounts and projections for the current fiscal year. Requested budgets and budget analyses are submitted to the City Manager. Budget discussions between the City Manager, depart- ment directors, and Finance staff take place. March/April Finance staff updates five year forecast based on proposed budget. The proposed budget document is produced by Finance staff. Budget Committee meetings are advertised. April/May The City Manager’s proposed budget is submitted to the Budget Committee for deliberation. Several public meetings are held to present the proposed budget to the Budget Committee to discuss and to allow citizen comment. The Budget Committee makes changes as appropriate and then approves the budget before for- warding it to the City Council for adoption. R EADER ’S G UIDE - P AGE 13 B UDGET P ROCESS Finance staff updates five year forecast based on approved budget and revised projections for current fiscal year revenues and expenditures. Public Hearing Notice for Budget Adoption is advertised. June A public hearing before City Council is held to allow citizens to com- ment on the approved budget. After the public hearing, the Approved Budget is adopted by City Council resolution. Finance staff updates five year forecast based on adopted budget. The adopted budget document is produced by Finance staff. July The adopted budget takes effect. Budget Revision Procedures Oregon Local Budget Law establishes procedures to revise the budget as events occur after budget adoption. The type of event determines the procedures to be followed. Budget Amendment The adopted budget appropriates contingencies in several funds. As allowed by Oregon Local Budget Law, contingencies cannot be used unless transferred to a specific appropriation by Council Resolu- tion amending the budget. Budget amendments during a fiscal year cannot exceed 15% of fund appropriations without approval of a supplemental budget. Supplemental Budgets In accordance with Oregon Budget Local Budget Law, a supplemental budget is required to appropri- ate increased resources within a fund (except for gifts, grants, and donations), or if total budget amendments in a fund exceed 15% of the existing appropriations. Supplemental budgets which in- clude changes greater than 10% in any fund must be advertised and must be approved by the City Council. If at least ten taxpayers make a written request within ten days of the notice, the Council must refer the supplemental budget to the Budget Committee prior to consideration and action. P AGE 14 - C ITY OF T IGARD B ASIS OF B UDGETING The basis of budgeting is largely the same as the basis of accounting with a few exceptions. Budgets are prepared in accordance with the modified accrual basis of accounting for Governmental Fund Types. Proprietary Fund Type budgets follow the accrual basis of accounting, with the exception that depreciation is not shown as a budgetary expense. Proprietary funds also accrue compensated absenc- es when incurred and become a fund liability. In the governmental funds, compensated absences are paid from current resources and are reported as an expenditure in the year they are paid. And finally, both governmental and proprietary funds show debt service proceeds as a resource and debt service payments as an expense under the budgetary basis of accounting. Activities of the general fund, special revenue funds, debt service funds, capital project funds, enter- prise funds, and internal service funds are included in the annual appropriated budget. Annual appro- priations lapse at the end of each fiscal year (June 30). The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount), is established at the program level within each individual fund. The city maintains an encumbrance accounting system as one tech- nique of accomplishing budgetary control. R EADER ’S G UIDE - P AGE 15 F UND S TRUCTURE The City of Tigard uses various funds to account for its revenues and expenditures. A fund is defined as a fiscal and accounting entity with a self -balancing set of accounts. Also, funds are categorized by fund type as defined by generally accepted accounting principles (GAAP) and Oregon Budget Law. The revenues in each fund may be spent only for the purpose specified by the fund. For example, the revenues in the Water Fund may be used only for purposes related to water operations. However, the General Fund is the primary exception to this rule. The General Fund is used to account for general - purpose revenues and operations of the city. Most of the traditional, core operations of the city (i.e. Police, Library, Parks, Planning, and Mayor and Council) are budgeted in this fund. In FY 2011 -12, the City will use the following funds: General General Fund Enterprise Sanitary Sewer Fund Water CIP Fund Stormwater Fund Water Quality/Quantity Fund Water Fund Water SDC Fund Water Debt Service Fund Special Revenue Building Fund Urban Forestry Fund City Gas Tax Fund Library Donation and Bequest Fund Criminal Forfeiture Fund Gas Tax Fund Electrical Inspection Fund Parks Bond Fund Traffic Impact Fee Fund Street Maintenance Fee Fund Parks SDC Fund Transportation Development Tax Fund Underground Utility Fund Debt Service Bancroft Debt Services Fund General Obligation Debt Service Fund Capital Funds Facilities Capital Parks Capital Fund Projects Fund Internal Service Central Services Fund Insurance Fund Fleet/Property Management Fund A Summary of All Funds is provided in the Budget Summary section to show a summary of each of the funds resources and requirements as budgeted and more detailed breakdown is shown in the Fund Summaries section. Resources include beginning fund balances, current revenues and transfers in from other funds. Requirements include operating expenditures, debt service, loans, capital improvements, transfers out to other funds contingencies and ending fund balances or reserves. The FY 2011 -12 adopted budget is considered a balanced budget as total resources are equal to total requirements in each fund. P AGE 16 - C ITY OF T IGARD P ROGRAM BUDGET S TRUCTURE Program Budget Structure The city adopts and manages its budget by program. Each fund shows the budgeted amount for the programs within that fund. Each program is an aggregation of budget units that are similar in nature or function. The city has established the following program structure. Program Program Department/Function Department/Function Division/Budget Unit Division/Budget Unit Community Services Policy & Administration Police City Management Administration City Manager’s Office Operations Human Resources Support Services Risk Management Mayor and Council Library Administrative Services Administration Design & Communications Readers’ Services City Recorder/Records Technical Services Municipal Court Circulation Social Services/ Community Events Finance and Information Services Social Services Administration Community Events Financial Operations Utility Billing Information Technology Contracts and Purchasing Public Works Community Development Administration Administration PW -Engineering Building Property Management Community Planning Fleet Maintenance Development Services Parks/Grounds Downtown Redevelopment Sanitary Sewer Streets Stormwater Water R EADER ’S G UIDE - P AGE 17 P ROGRAM BUDGET S TRUCTURE A breakdown of each of these programs, departments, and budget units’ expenditures can be found in the individual program sections. In addition to the four operating programs, Debt Service, Loans to the City Center Development Agency, Capital Improvement, Transfers, and Contingency provide the following functions:  Debt Service includes appropriations for interest and principal on all types for debt, i.e. general obligation, local improvement districts, loans and both short term and long -term debt for con- struction projects.  Loans to the City Center Development Agency (CCDA), the City’s urban renewal district, are for catalyst projects in the downtown plan. As the Urban Renewal District generates more tax incre- ment financing revenues in the future, it will be able to finance its own projects. Until then, the city may loan monies to the CCDA, which will be repaid as outlined in the intergovernmental agreement between the two entities.  Capital Improvement includes appropriations for all major construction project expenditures. Capital improvement projects are included in the long range plan for city facilities and infrastruc- ture.  Transfers will be made between funds when the revenue is received in one fund for an expense that occurs in another fund or when city functions have more than one funding source. Another primary reason for transfers is for a fund to pay for services provided by another fund.  Contingency includes allowance for unforeseen needs that have not been planned for in the cur- rent budget and some reserves. Contingency can only be accessed by City Council resolution. P AGE 18 - C ITY OF T IGARD O PERATION D IVISION F UNDING Budget Unit (Division)G e n e r a l G a s T a x E l e c t r i c a l I n s p e c t i o n B u i l d i n g C r i m i n a l F o r f e i t u r e U r b a n F o r e s t r y B a n c r o f t D e b t S e r v i c e F a c i l i t i e s C a p i t a l P r o j e c t s T r a f f i c I m p a c t F e e T r a n s p o r t a t i o n D e v e l o p m e n t T a x S t r e e t M a i n t e n a n c e F e e P a r k s C a p i t a l P a r k s B o n d P a r k s S D C S a n i t a r y S e w e r S t o r m w a t e r W a t e r W a t e r C a p i t a l I m p r o v e m e n t s Police Administration  Police Operations  Police Support Services  Library Administration  Readers Services  Technical Services  Circulation  Social Services & Community Events  Public Works Administration  Public Works- Engineering  Parks & Grounds  Sanitary Sewer  Stormwater  Street Maintenance  Fleet Maintenance  Property Management  Water  Street Lights & Signals  Community Development Administration  Building  USE OF FUNDS BY OPERATING DIVISION FUND R EADER ’S G UIDE - P AGE 19 O PERATION DIVISION F UNDING Budget Unit (Division)G e n e r a l G a s T a x E l e c t r i c a l I n s p e c t i o n B u i l d i n g C r i m i n a l F o r f e i t u r e T r e e R e p l a c e m e n t B a n c r o f t D e b t S e r v i c e Fa c i l i t i e s C a p i t a l Pr o j e c t s T r a f f i c I m p a c t F e e T r a n s p o r t a t i o n D e v e l o p m e n t T a x S t r e e t M a i n t e n a n c e Fe e Pa r k s C a p i t a l Pa r k s B o n d Pa r k s S D C S a n i t a r y S e w e r S t o r m w a t e r W a t e r W a t e r C a p i t a l I m p r o v e m e n t s USE OF FUNDS BY OPERATING DIVISION FUND Development Services  Community Planning  Downtown Redevelopment  Mayor & Council  City Manager's Office  Human Resources  Risk Management  Design & Communications  City Recorder/Records  Municipal Court  Finance Administration  Financial Operations  Utility Billing  Information Technology  Contracts/ Purchasing  P AGE 20 - C ITY OF T IGARD C ITY I NFORMATION Form of Government: The City of Tigard was incorporated in 1961. An elected Mayor and four Council members who comprise the City Council govern the City of Tigard. The city’s charter establishes a Mayor/Council form of government. Members of the City Council are elected at large to serve four -year terms. The Mayor presides at council meetings and is elected at -large for a four -year term. Together, the Mayor and council provide community leadership, develop policies to guide the city in delivering services and achieving commu- nity goals, and encourage citizen awareness and involvement. The City Council appoints the City Manager, who acts as the administrative head of the city govern- ment. The City Manager is responsible for ensuring council policies are implemented using resources appropriated by the Council to achieve desired service results in the community. The Mayor and Council are responsible for establishing city policies. Services Provided: Community Services Community Development City Management Police CD Administration Mayor and Council Library Building Inspection City Manager’s Office Social Services & Community Planning Human Resources Community Events Development Services Risk Management Downtown Redevelopment Design & Communication City Recorder/Records Municipal Court Finance & Information Services Public Works Finance Administration PW Administration Financial Operations PW Engineering Utility Billing Facilities Information Technology Parks/Grounds Contracts/Purchasing Sanitary Sewer Streets Storm Water Water R EADER ’S G UIDE - P AGE 21 C ITY I NFORMATION Population Facts Population -Factfinder.census.gov Estimated Population (2011)* 48,035 Median Age (2008) 35.9 years old Average Household Size (2009) 2.51 persons per unit Median Household Income (2009) $63,554 Number of Housing Units (2009) 19,376 Number of Occupied Units 18,667 Owner Occupancy Rate (2009) 61.5% *Population data received from Community Development Population Facts: Population by year: 2011 48,035 2010 47,700 2009 47,470 2008 46,715 2007 46,400 2006 46,300 2005 45,500 2004 44,650 2003 44,070 1990 27,050 1980 14,286 Quickfacts.census.gov Hispanic or Latino (of any race) 5,848 13% White 34,459 72% Black or African American 550 2% American Indian/Alaskan Indian 127 0.3% Asian 3,150 7% Native Hawaiian + Other Pacific Islander 350 0.7% Some other race 1,907 4% Two or more races 1,644 4% P AGE 22 - C ITY OF T IGARD C ITY I NFORMATION Tigard Land Uses - 2011 Land Use Acres Percentage Commercial 523 6.9% Industrial 726 9.6% Mixed -Use 794 10.5% Residential 5,522 73.0% Total 7,565 Land use area is based on current zoning districts. Source: Tigard Urban Planning, April Tigard Facts Square Miles 11.82 County Washington School District Tigard -Tualatin * Annual Average Rainfall 37.4 inches Average Daily Temperature - Jan 41.1 Average Daily Temperature - July 68.1 Highest Elevation - Bull Mountain Summit 713 ft. Lowest Elevation - Cook Park River- front 104 ft. *Scholls Ferry area served by Beaverton District Physical/Geographic Facts: The incorporated area of the City is 11.82 square miles or 7,565 acres. The City maintains more than 14 parks totaling over 233 acres and an additional 202.4 acres of areas considered greenways where development cannot occur. As a result from the Parks bond passing in November, 2010, the city will purchase additional park land in 2011 -2012. Economic Facts: Tigard’s location in the Portland metropolitan area provides citizens with many diverse employment opportunities. The unemployment rate in the Portland metropolitan area is approximately 9.6%, down 1.2% from the same time last year. Tigard is also located in Washington County; its unemploy- ment rate is currently 8.4%, down 1.2% from last year. Seventy -three percent of land within the City is planned to accommodate residential use, ranging from low density single family homes to high density multi -family dwellings. The City tracks builda- ble lands through a yearly inventory process. At the end of 2010, less than 10 percent of land within the City was considered buildable. Single family home construction, which includes free standing and attached, hit a high of 335 units in 1995 and dipped to a low of 49 permits issued in 2009. Single fam- i l y c o n s t r u c t i o n p e r m i t s i n c r e a s e d s l i g h t l y i n 2 0 1 0 t o a t o t a l o f 1 0 3 i s s u e d . R EADER ’S G UIDE - P AGE 23 C ITY I NFORMATION Top Ten Taxpayers in 2011 -12: Type of Business Percent of Total Assessed Valuation Pacific Realty Associates 3.7% Washington Square LLC 2.4% Lincoln Center LLC. 1.6% Frontier Communications 1.2% Walton CWOR Park LLC 0.8% Portland General Electric 0.6% Comcast Corporation 0.6% Northwest Natural Gas 0.5% Robinson, Constance 0.5% Macy’s Department Stores Inc. 0.4% Economic Data Number of Businesses, 2011 2,745 408 home -based Primary Economic Sector (receipts/sales) Wholesale Trade Permanent Tax Rate $2.51310 per $1,000 of assessed value Total Assessed Value (2010 -11) $5,028,671,727 Top Ten Employers in 2011: Employer # of Employees Tigard -Tualatin School District 724 Macy’s Department Stores, Inc. 704 Nordstrom 579 Oregon Public Employees Retirement 396 Providence Health System 377 HSBC Card Services Inc. 301 Costco Wholesale Corporation 300 City of Tigard 267 University of Phoenix 256 Veris Industries LLC 248 P AGE 24 - C ITY OF T IGARD C ITY OF T IGARD M AP B UDGET S UMMARY - P AGE 25 W HERE THE MONEY COMES FROM ... Resources to meet the City of Tigard’s obligations and service needs are derived from three primary sources: beginning fund balance, current revenues, and fund transfers. Beginning fund balance con- sists of revenues carried forward from previous fiscal years, including reserves for specific purposes (e.g., debt reserves and capital improvements) and monies used for cash flow. Current revenues are those earned from city operations or taxes collected during the fiscal year. The principal sources of current revenues are utility fees and charges, property taxes, bond proceeds and building and develop- ment fees and charges. The third source is a transfer between funds to pay for either direct or indi- rect costs. Resources Beginning Fund Balance 43,094,567 $ Current Revenues Property Taxes 14,644,268 Franchise Fees 4,797,202 Special Assessments 120,000 Licenses and Permits 4,867,937 Intergovernmental 9,149,270 Charges for Services 22,470,978 Fines and Forfeitures 944,100 Interest Earnings 502,819 Miscellaneous 232,687 Other Financing Sources 44,522,727 Subtotal Current Revenues 102,251,988 Fund Transfers 21,118,669 Total Resources 166,465,224 $ P AGE 26 - C ITY OF T IGARD W HERE THE MONEY GOES ... City budgetary requirements fall into three primary categories: total requirements, total appropriations, and program expenditures (or operating expenditures). Total requirements consist of all funds appro- priated for use during the fiscal year plus ending fund balances, which are not appropriated and cannot be used. Ending fund balances are reserved for use in future fiscal years. Total appropriations consist of funds available for use during the fiscal year and include program expenditures, debt service, capital improvements, transfers, and contingencies. Program expenditures reflect the ongoing operating budg- et for the delivery of services. The following charts provide information about each of these major cat- e g o r i e s . Operating Budget 49,435,066 $ Debt Service 5,423,068 Loan to CCDA 375,000 Capital Improvements 25,955,846 Contingency 3,461,255 Subtotal Current Expenditures 84,650,235 Fund Transfers 21,118,669 Ending Fund Balance 60,696,319 Total Requirements 166,465,224 $ The total requirements of the FY 2011 -12 city budget total $166,465,224. Of that amount, 64% is actually appropriated for use during the fiscal year. The remaining 36% is ending fund balances. The- se balances are not intended to be used during the fiscal year and are reserved for future requirements and cash flow. B UDGET S UMMARY - P AGE 27 W HERE THE MONEY GOES ... Total appropriations of $105,768,904 consist of several subcategories of use. Of this amount, Program Expenditures account for 47% of the total. Program Expenditures make up the city’s operating budg- et. Appropriations are also established for debt service, loans to the City Center Development Agency, capital improvements, transfers between funds, and contingencies. Debt service accounts for 5% of total city appropriations and pays principal and interest on outstanding assessment bonds, loans, and voter -approved General Obligation bonds. Loans to the City Center Development Agency make up less than 1% of appropriations. Capital improvements account for 25% of total appropriations and consist of major construction or acquisition projects that add to or extend the life of major city facilities and assets. Transfers between funds total roughly 20% of appropriations. Money is transferred between funds to share resources or to pay expenses incurred in one fund that also benefit the program in one or more additional funds. Contingencies account for 3% of total appropriations and are used to pay for unexpected expenses. No money may be spent directly out of a contingency account; if needed, money must be transferred from contingency to another expenditure category by resolution of the City Council. P AGE 28 - C ITY OF T IGARD W HERE THE MONEY GOES ... Program expenditures are the operating budget of the city. Program expenditures pay for the day -to - day costs of running the city and providing services to citizens. This is the heart of the city budget. Program expenditures may be looked at from several different perspectives. Each perspective provides a different view of the use of these dollars. The following charts show three different perspectives of program expenditures Program Expenditures by program shows the major functional areas that make up the total city operat- ing budget. The largest functional areas within the operating budget are the Community Services (42%) and Public Works programs (34%). The Community Services program consists of Police ser- vices, Library services, and city grants to social service agencies and community events. The Public Works program consists of services that operate and maintain the city’s infrastructure (streets, water system, parks and grounds, sanitary sewer, storm water, fleet maintenance, and city facilities). The Community Development program accounts for 9% of the total operating budget. This program area includes building permits and inspections, and land use planning. The Policy and Administration pro- gram accounts for 15% of the total operating budget and includes the central city administrative func- tions, Finance, and Information Technology . B UDGET S UMMARY - P AGE 29 W HERE THE MONEY GOES ... Another way of looking at the city’s program expenditures is by department. This view reflects the ad- ministrative structure of the city. The largest city department is Public Works with 34% of the budget. Public Works is followed by Police with 30%, Library with 12%, City Management with 4%, Adminis- trative Services with 3%, Community Development with 9%, Financial and Information Services 7%, and the Mayor and City Council at 1%. Finally, the third way to view the Program Expenditures is by major object category. Roughly 55% of the operating budget is for Personal Services which are the salaries and benefits for staff who are oper- ating the programs and providing services to the public. Materials and services, supplies, professional services, small equipment, etc., account for 29% of the operating budget. Capital Outlay (purchases of equipment or vehicles) necessary to running programs and providing services accounts for about 3% of the operating budget. Finally, Interdepartmental expenses pay for services provided within the city and make up 14% of operating expenses. P AGE 30 - C ITY OF T IGARD F UND B ALANCE The General Fund beginning fund balance is projected to be $7,766,831. A beginning fund balance is maintained to provide cash flow for specific operations until current year revenues are received. In addition, the fund balance provides funding stability to meet the city’s needs projected in the Five Year Financial Forecast. The largest portion of the beginning fund balances is made up of $16.9 million in the Enterprise Funds. These funds are dedicated to the operation, maintenance, and capital investment of the city’s sanitary sewer, storm water, and drinking water systems. The Capital Project Funds include $0.9 million for parks development, street capital improvement pro- jects and facilities projects. The purpose of the capital project funds is to provide a single fund to track the expenditures related to the projects. Generally, the revenues to support the projects are not moved to the capital project funds until they are needed, resulting in a low fund balance. Special Revenue Funds include $15.7 million for Gas Tax Funds, Urban Forestry Fund, Building Fund, street maintenance funds, and Parks Bond and Parks SDC funds primarily. The largest contributor to fund balance in this group is the $8.0 million remaining in the Parks Bond Fund from the $17 million bond approved by the voters of Tigard in November 2010. The primary revenue for the Gas Tax Fund is from a tax on motor vehicle fuel imposed by Washington County and the State of Oregon. The City Gas Tax Fund was created to account for a local fuel tax imposed by the city, which went in- to effect in April 2007. These revenues will be dedicated to a specific capital street project. Currently all revenues in that fund are dedicated to the Greenburg Road/Pacific Hwy. intersection. Another of the street maintenance funds include the Traffic Development Tax Fund (TDT), which is a charge on new development assessed by Washington County, but is collected by cities (it replaces TIF). The city has two debt funds, General Obligation Debt Service Fund and the Bancroft Bond Debt Ser- vice Fund. The beginning fund balances of just over $750,000 are specifically dedicated to the retire- ment of both General Obligation and Bancroft debt outstanding. The city’s Internal Service Funds provide services to other city departments on a reimbursable basis. Most of the fund balance is in the Insurance Fund. This fund provides coverage for losses unfunded by traditional insurance policies, management of insurance/claim activity, and reduction of significant liability exposures. B UDGET S UMMARY - P AGE 31 S UMMARY OF ALL FUNDS P AGE 32 - C ITY OF T IGARD S UMMARY OF A LL F UNDS B UDGET S UMMARY - P AGE 33 S UMMARY OF A LL F UNDS P AGE 34 - C ITY OF T IGARD S UMMARY OF A LL F UNDS B UDGET S UMMARY - P AGE 35 S UMMARY OF A LL F UNDS P AGE 36 - C ITY OF T IGARD S UMMARY OF C ONTINGENCY The FY 2011 -12 budget includes contingency appropriations for most operating funds. Contingencies are built into the budget to ensure that funds are available for unforeseen events and to build a cushion into revenue estimates. Contingencies are sized according to the maximum amount allowed by Oregon Local Budget Law (15% of total fund appropriations) or a prudent amount based on the size of the fund. Contingencies may not be spent directly; if needed, they must be transferred to a program expenditure by resolution of the City Council. If not transferred to a program expenditure during the fiscal year, the contingency amount becomes part of the ending fund balance. Fund Revised FY 2010-11 Proposed FY 2011-12 Approved FY 2011-12 Adopted FY 2011-12 100-General Fund 710,659 $ 1,000,000 $ 903,755 $ 903,755 $ 200-Gas Tax Fund 26,844 300,000 300,000 $ 300,000 $ 205-City Gas Tax Fund - 50,000 50,000 50,000 220-Electrical Inspection Fund - 30,000 30,000 30,000 230-Building Fund 60,129 200,000 200,000 $ 200,000 $ 240-Criminal Forfeiture Fund - - 260-Tree Replacement Fund - - 300-Bancroft Debt Service Fund - - 350-General Obligation Debt Service Fund - - 400-Facilities Capital Fund - 70,000 70,000 70,000 405-Transportation Development Tax - 40,000 40,000 40,000 410-Traffic Impact Fee Fund - 20,000 20,000 20,000 411-Underground Utility Fund - - 412-Street Maintenance Fund - 100,000 100,000 100,000 420-Parks Capital Fund - 400,000 400,000 50,000 425-Parks SDC Fund - 300,000 300,000 300,000 500-Sanitary Sewer Fund 241,633 400,000 400,000 $ 400,000 $ 510-Stormwater Fund 238,844 100,000 100,000 $ 100,000 $ 511-Water Quality/Quantity Fund - - 530-Water Fund 70,487 500,000 500,000 $ 500,000 $ 531-Water SDC Fund - - 532-Water CIP Fund - - 600-Central Services Fund 499,639 300,000 297,500 $ 297,500 $ 650-Fleet/Property Management Fund 222,000 100,000 100,000 $ 100,000 $ 660-Insurance Fund - - 930-Urban Renewal Debt Service - - 940-Urban Renewal Capital Improvements - - 980-Library Donation & Bequests - - - Total Contingency 2,070,235 $ 3,910,000 $ 3,811,255 $ 3,461,255 $ B UDGET S UMMARY - P AGE 37 O PERATING B UDGET S UMMARY P AGE 38 - C ITY OF T IGARD C OMPREHENSIVE L ONG T ERM F INANCIAL F ORECAST General Fund The General Fund is unique in that, unlike the city’s other funds, it is unrestricted in nature and can therefore be used for any valid purpose to provide government services. Because these funds are unre- stricted there are also great demands for these resources to fund projects and programs for which oth- er, restricted monies are insufficient or unavailable. It is therefore critical that these funds be used judi- ciously and a sufficient reserve balance be maintained for unforeseen expenditures. The City of Tigard has developed a comprehensive long term financial forecast every year since the 1980’s. This forecast allows the city to project expected revenues and expenditures for each of its funds to help anticipate financial requirements. This tool continues to be central to Tigard’s financial management strategy. By forecasting and anticipating financial trends, Tigard can develop strategies to respond to emerging issues. The city forecasts operating and capital fund revenues and expenditures over a five -year period. The forecast is adjusted as each year’s final results are known and as new years are budgeted. As a result of these forecasting efforts and a projected decline in general fund balances due to the recession, the city took steps to reduce expenditures in FY 2010. Staff also continues to revise current fees and charges based on cost recovery and construction cost indexes. There are some significant financial issues facing the city over the next five years. One key issue relates to the city’s capital improvement needs. The city has identified about $332 million in needed capital projects, but does not have the resources to implement all of them. The following charts do not in- clude the needed projects that do not have funding source. The reason for this is because almost all the funds would show large negative fund balances, which is not realistic or practical. The city will contin- ue to prioritize the needed capital projects, seek alternative revenue sources, and develop financing strategies to construct as many of the needed capital projects as possible. B UDGET S UMMARY - P AGE 39 C OMPREHENSIVE L ONG T ERM F INANCIAL F ORECAST General fund needs a minimum of $5.0 million in fund balance. Nearly half of the general fund’s reve- nue comes from property tax which is mostly received in late November and December. From the beginning of the fiscal year in July until the property tax collection in late November, the general fund expends more than it receives. The fund balance is used in order to make payroll and other regular expenses. Toward the end of F iscal Year 2010, the city implemented significant cuts in services. The cuts were made with the goal to sustain the new level of services during FY 2011 & FY 2012. The reason for the cuts was a declining general fund balance (i.e., savings), due to the recessionary impacts on revenues. Early in the recession, the city allowed the general fund balance to decline, in order to maintain service levels. Once the severity of the recession was known, the forecasts showed the fund balance going below $5.0 million in the near future, the city took the fiscally responsible step at the end of FY 2010 of reducing staff by 17.20 FTE. This was a combination of layoffs and reduction in hours, and should position the city to get through 2012 without any additional reductions in staff. In addition to the staff reductions, the city also reduced materials and services, and cut most of the capital projects that required general fund support. A year later, it appears that the city has fulfilled the commitment to getting through FY 2012 without additional cuts. With Tigard’s FY 2012 Adopted Budget , the second year of the general fund forecast is still over the $5.0 million threshold in the second year of the forecast, now FY 2013. While it ap- pears that the budget that is proposed for FY 2012 can be sustained for two years, that statement is made with less confidence than it was made last year. There is less margin for error and a higher risk that that cuts will be necessary when we plan FY 2013; however, the risk is not high enough to recom- mend cuts for FY 2012. The forecast expenses for 2012 are different than the budgeted expenditures. In the forecast, we as- sume that the city spends 95% of the budget. Historically, Tigard has spent a lower percentage of the general fund budget. Due to the economy, we have experienced fewer vacancies as staff hold on to their jobs and there are fewer opportunities to leave. In addition, departments have refined their budg- ets and will likely need a higher percentage of their budget to maintain anticipated services. In prior forecasts, the general fund fund balance has gone negative in the third or fourth year of the five -year forecast. Although the fund balance does not go negative in this forecast until the last year, in the third year it does drop below the minimum $5.0 million that the city needs to get from July to No- vember. This situation will be monitored in the future to determine if revenues will be sufficient to maintain general fund fund balance at a sustainable level, or if additional reductions in services or capi- tal expenditures will be necessary. P AGE 40 - C ITY OF T IGARD C OMPREHENSIVE L ONG T ERM F INANCIAL F ORECAST Development Funds The projections for the city’s development funds (building and electrical inspection funds) show these funds have stabilized. In 2008 -09, building ended the year with a fund balance near zero even after laying off seven staff and reducing hours for the remaining staff in this fund. The fund balance in this fund is not expected to grow significantly in the next five years. In FY 2009 -10, the building fund was further stabilized by a one -time $300,000 resource transfer from general fund and a fee increase de- signed to generate an additional $250,000 annually. Activity in the Building Division has had some modest increases. During 2010 -11, five positions were restored to full time, adding a total of 1.0 FTE to the division. The Adopted Budget for FY 2011 -12 adds an additional 0.9 FTE. Expenses of all the building inspection services are charged to the building fund. The electrical inspec- tion fund transfers money into the building fund to pay for those costs associated with electrical in- spection services. The transfer is evaluated and updated each year based upon the actual activity. The building activity trend appears to have modest increases. The city is seeing a significant number of permits, but those permits are made up of fewer new construction permits and more small remodeling permits. That means the amount of money brought in per permit is lower than it has been in the past. The electrical inspection fund is more stable than the building fund. The revenues in this fund are more directly tied to remodeling activity which has not see the same level of decline as other develop- ment activities. B UDGET S UMMARY - P AGE 41 C OMPREHENSIVE L ONG T ERM F INANCIAL F ORECAST Park Funds The revenues in the parks funds include the system development charge (SDC), urban forestry reve- nues, grants, and the Parks Bond that was approved by voters in November 2010. Resources from the park SDC fund are transferred to the parks capital fund to pay the SDC portion of the capital projects. These projects have been identified in the City’s Parks Master Plan. The most recent SDC methodolo- gy and fee was approved by the City Council in January 2005. In FY 2008 -09 the urban forestry fund (formerly known as the tree replacement fund) was established to account for revenue collected from developers in lieu of planting trees. The fund is then used to plant trees in Tigard. In FY 2010 -11, a significant number of commitments from developers who failed to plant were called, increasing the fund balance over $1 million. In November 2010 Tigard voters approved a $17 million Parks Bond to help the city acquire and de- velop additional parks, with at least 80 percent to be used to acquire land and the remaining amount to develop parks. Of the total, ten percent can be used in downtown. During FY 2010 -11, $9.0 million of parks land was acquired, including Summer Creek Park, Sunrise Park, and Potso Dog Park. In the next two years, the remaining $8.0 million will be paired with parks SDC and grant funds to purchase and develop parks. P AGE 42 - C ITY OF T IGARD C OMPREHENSIVE L ONG T ERM F INANCIAL F ORECAST Transportation Funds The city’s transportation funds include the Gas Tax, the Traffic Impact Fee (TIF), Transportation De- velopment Tax (TDT), Street Maintenance Fee, City Gas Tax, and the Transportation CIP Fund. In 2009 -10, the city is borrowed $7.25 million for two projects: the Burnham Street improvements and reconstruction, and the Greenburg Rd./Pacific Hwy./Main St. intersection improvements. Reve- nues in these funds will be used for debt service payments for the next ten years. The gas tax fund has been the traditional funding source for street improvements for most local juris- dictions in Oregon, and Tigard is no exception. In addition, maintenance of roads and the electrical bill for traffic and street lights is paid out of gas tax. Gas tax revenues are expected to increase over the next five years as a bill approved by the 2009 Oregon Legislature is implemented that adds revenue from increased vehicle registration fees and additional state gas tax rate, and as the economy improves. With the additional revenue generated by the approved bill, Tigard is able to fund the debt service that is required to fund Burnham without cutting into operational expenses. Until the debt is paid, there is only limited resources available for additional projects. The traffic impact fee (TIF) is a charge on new development established by Washington County, but collected by cities. This fee is being phased out as the transportation development tax (TDT) is being phased in. The TDT was approved by Washington County voters in November 2008. However de- velopments approved prior to July 1, 2009 still pay the TIF. Because these fees are based on new de- velopment, the amount of revenue fluctuates with building activity and the city has experienced a de- cline in this activity. In addition, the Washington County Board of Commissioners granted a discount on the TDT to developers in 2009 -10. That action has negatively impacted the city’s revenues in this fund. The fees collected from the TIF and TDT may only be used for highway and transit capital im- provements that provide additional capacity to major transportation systems, and to pay the costs of administering the program. Like the gas tax fund, the forecast includes only those street projects that the fund can afford. The TIF and TDT revenues are almost entirely programmed for capital projects through FY 2015 -16. Any money not used for additional projects may be used for debt service in the gas tax fund for repayment of the bonds for the Burnham Street project. B UDGET S UMMARY - P AGE 43 C OMPREHENSIVE L ONG T ERM F INANCIAL F ORECAST The city took steps to address existing local street conditions by adopting a Street Maintenance Fee in November 2003 with an update approved in January 2010. This fee provides a stable source of reve- nue designated for use in the maintenance of existing streets. The Tigard Municipal Code requires that the fee be evaluated every three years. The most recent evaluation showed that the cost of maintaining the roads at the city’s standard has increased and the current Street Maintenance Fee is inadequate to cover the costs. Therefore the fee is set to increase over a two year period with full implementation by January 2012. The revenue from the fee is designed to prevent further deterioration of the city’s over- all pavement condition. The increase in the fee is not enough to improve the pavement condition. The projected fund balance for FY 2015 -16 is $1.9 million. The size of the fund balance is needed, since most of the program’s expenditures happen in the beginning of the fiscal year when the weather is good for construction. The city gas tax was established to account for revenues generated from Tigard’s local gas tax. The 3 - cent tax was developed by a citizen task force who recommended it as a way to fund improvements to the Greenburg Rd./Pacific Hwy./Main St. intersection. All proceeds generated are currently dedicated to this one project. In 2009 the Oregon Legislature passed an update to the state gas tax that required the Tigard City Council to make adjustments to the city gas tax. As a result of the legislative action, the City Council chose to make the city’s gas tax continuous, and to identify specific projects through a public process for which the tax will be dedicated. Repaying the debt service for this project will take most of the funds resources, but the fund balance will slowly grow. It is anticipated that the next pro- ject to use the city gas tax will be identified in the next two fiscal years . P AGE 44 - C ITY OF T IGARD C OMPREHENSIVE L ONG T ERM F INANCIAL F ORECAST Sanitary and Stormwater Funds These funds support all of the sanitary sewer and stormwater collection systems in the city. The city provides these services based upon an Intergovernmental Agreement (IGA) with Clean Water Services (CWS), which is a local service district in Washington County that provides both sanitary sewer treat- ment and stormwater management services. The Board of Directors of CWS sets all service charges and system development charges for both sanitary sewer and stormwater services throughout the ser- vice district. The City of Tigard is undertaking a Sewer Master Plan to determine how to support the aging infra- structure. The forecast anticipates identifying specific projects and use of the accumulated fund bal- ance to support the projects. The revenues retained from sanitary sewer and stormwater fees are not growing and in some instances are declining. In accordance with the intergovernmental agreement with CWS, the city retains only a portion of the sanitary and storm fees it collects. Each year, CWS revises the split for sanitary sewer fees. Because recent rate increases that have been implemented by CWS have been totally dedicated to pay down debt that CWS has incurred with the expansion and improvements at their sewer treatment plants, the city has not been able to retain a greater share of the revenues collected. This has resulted in these funds showing a minimal increase over the forecast period. Because of this, the city will need to analyze what steps need to be implemented over time so that these funds can adequately support any future capital improvement projects as well as continuing to adequately maintain the infrastructure. In 2009 -10, CWS implemented a new way to share system development charges. Prior to 2009 -10, Tigard was responsible for any pipe smaller than 20” and received twenty percent of SDC revenue. In 2009 -10, Tigard became responsible for pipes under 12”, but only receives four percent of a larger SDC. This change in SDC revenue is reflected in the forecast. The stormwater fund shows modest growth in the coming years. In effort to offset little or no increases from CWS over the past few years, the city has implemented a $2.00 per month charge to stormwater fees. This surcharge allows the city to maintain a sustainable cash flow position and to construct needed capital projects in future years. B UDGET S UMMARY - P AGE 45 C OMPREHENSIVE L ONG T ERM F INANCIAL F ORECAST Water Funds The water funds include the water, the water system development charge (SDC), the water Capital Im- provement Plan (CIP), water debt service, and the water quality/quantity funds. The water CIP Fund is reserved for a long -term water source and other water distribution system capital projects. The costs of the Water Division are funded solely by the revenues in the water fund. The financial condition of the water funds is driven by both the needs in the capital program as well as the cost of the day -to -day operation and maintenance of the water system in the city. The most im- portant factor in the city’s capital program remains the need for a long -term source of water. In Au- gust 2008 the city entered into an agreement with the city of Lake Oswego for a long -term water source. The project to upgrade Lake Oswego’s water treatment plant is underway. The City of Tigard is paying approximately 57% of the overall cost of the project. In November 2010, City Council adopted a Water Financing Plan through 2020 to fund the LO/Tigard partnership project. The forecast is based on the financing plan which entails issuance of $125 million in debt and over 150 million in capital projects. The first debt issuance of $44 million will be in FY 2011 -12. Along with the Water Financing Plan, Council adopted revised water utility charges and System Devel- opment Charges. Water utility charges will roughly double over a five year period and SDCs will roughly triple over the next four years. The water quality/quantity Fund has been allowed to slowly grow over the last few years. The fund will be used on a major stormwater facility in FY 2013 -14. P AGE 46 - C ITY OF T IGARD C OMPREHENSIVE L ONG T ERM F INANCIAL F ORECAST Synopsis The city’s Five Year Financial Forecast shows that in the short term the city has some challenges, but appears to be in a good position to meet those challenges. The general fund is sustainable for one to two years due to cuts in service made in FY 2010. The building fund is stable at a reduced level and even allows for some growth in services. Burnham Street reconstruction and Pacific Hwy/Greenburg/ Main St. intersection is using most of the available transportation funding sources to pay debt service on the projects for the next seven or more years. Funding a long -term water source for Tigard is a nec- essary and expensive process and will require significant borrowing coupled with significant rate in- creases to repay the debt. The city will continue to monitor its revenues and expenditures and will de- velop plans and options to manage its resources to continue to provide quality services to its citizens. R EVENUE A NALYSIS - P AGE 47 C URRENT R EVENUE S UMMARY B Y FUND P AGE 48 - C ITY OF T IGARD P ROPERTY T AX S UMMARY Tigard’s permanent property tax rate of $2.5131 per thousand is applied to the assessed value (AV) of property in the city each year. This permanent tax rate produces revenues to support General Fund operating costs such as Police, Library, and Parks. Under the Oregon Constitution (as amended by Measure 50 in 1997), assessed values may increase 3% per year. The city’s total property assessed value grew at a rate greater than 3% due to new construction and annexations until FY 2010 -11 when as- sessed value increased by only 2.35%. This reduction in assessed value was the result of decreased property values and commercial real estate selling for significantly less than in previous years. The FY 2011 -12 assessed value is projected to increase only slightly to 2.5% due to the forecasted economic conditions. The city’s total projected assessed value is multiplied by its permanent tax rate per $1,000 of assessed value to calculate the anticipated property taxes to be received. Due to various circumstances, howev- er, the city assumes just over a 94% collection rate on property taxes for FY 2011 -12. This is in line with previous year’s collection estimates and reflective of the current collection rate. Actual Actual Est. Actual Adopted Tax Information 2008-09 2009-10 2010-11 2011-12 Property Taxes General Fund 11,261,295 $ 11,631,870 $ 11,988,851 $ 12,435,379 $ GO Debt Service 794,245 1,031,305 976,383 2,208,889 Total Tax Levied 12,055,540 $ 12,663,175 $ 12,965,234 $ 14,644,268 $ Assessed Values Prior Year Assessed Value 4,572,357,820 $ 4,732,621,073 $ 4,893,755,236 $ 5,002,275,070 $ Increase up to 3%137,170,735 141,978,632 90,923,741 106,908,862 Est. Annexations & New Const.23,092,518 19,155,531 17,596,093 18,148,015 Total Assessed Value 4,732,621,073 $ 4,893,755,236 $ 5,002,275,070 $ 5,127,331,947 $ Tax Rates/$1,000 AV General Fund Permanent Rate 2.51310 $ 2.51310 $ 2.51310 $ 2.51310 $ GO Debt Service 0.17510 0.21360 0.20870 0.45562 Tax Rate 2.68820 $ 2.72670 $ 2.72180 $ 2.96872 $ Assessed Value of Average Home 193,975 $ 200,788 $ 207,834 $ 214,069 $ General Fund 487.48 504.60 522.31 537.98 GO Debt Service 33.97 42.89 43.37 97.53 Total Estimated Tax per Household 521.44 $ 547.49 $ 565.68 $ 635.51 $ R EVENUE A NALYSIS - P AGE 49 A SSESSED V ALUATION At the beginning of each fiscal year, the Washington County Assessor determines assessed values of properties in the city. Prior to Measure 50, Oregon’s property tax system was based on dollars levied and not tax rates, therefore increased values had the effect of lowering property tax rates, not chang- ing the amount of taxes that could be collected. With the approval of Measure 50 in 1997, assessed values on individual properties were rolled back to FY 1995 -96 levels and then reduced by 10%. Assessed values are limited to an increase of 3% per year. The difference between market value and assessed value is expected to widen in future years due to the 3% cap on assessed value growth. For FY 2011 -12, Tigard’s total assessed value is projected to be roughly 67% of its real market value. Assessed value is used for spreading the operating levies, while market values are used to meet the Measure 5 cap requirements, which limit tax rates to $15 per $1,000 of real market value ($5.00 for schools and an aggregate $10.00 for all other government), and to spread debt service levies, which are exempt from Measures 5 and 50. Fiscal Year Assessed Value FY 04 -05 $3,908,208,975 FY 05 -06 $4,087,904,786 FY 06 -07 $4,344,958,735 FY 07 -08 $4,572,357,820 FY 08 -09 $4,732,621,073 FY 09 -10 $4,893,755,236 FY 10 -11 $5,002,275,070 FY 11 -12 (estimate) $5,127,331,947 Tigard Assessed Value P AGE 50 - C ITY OF T IGARD P ROPERTY T AX R EVENUE The city has a General Obligation Bond property tax levy. In May 2002, Tigard voters approved a $13 million General Obligation Bond to construct a new library. In November 2010, Tigard voters ap- proved a parks bond measure allowing the city to issue up to $17 million in General Obligation Bonds for parks land acquisition. FY 2011 -12 property tax revenues include the debt service for these bonds. R EVENUE A NALYSIS - P AGE 51 S TATE R EVENUE S HARING State revenue sharing monies, which include gas, liquor and cigarette taxes, are allocated to cities based on population with an adjustment for local taxing efforts. Since FY 2005 -06, the city has received close to $3 million a year in state shared revenue. The city’s cigarette tax revenue is generated by two cents of the state -imposed $1.18 per pack cigarette tax. After a decade of constant decline, cigarette tax revenues stabilized for a few years; however, reve- nue forecast shows a decline in the next five years. The city’s liquor tax revenue is distributed by the Oregon Liquor Control Commission to cities in two different manners:  20 percent of the state’s liquor receipts are allocated as revenues to cities on a per capita basis and distributed monthly; and  14 percent of state liquor receipts are allocated to cities on a formula basis, as outlined in ORS 221.770. Oregon’s 2009 Transportation Package generates an additional $54.6 million annually to be allocated to cities from vehicle title and registration fee increases and an increase in the gas tax. Cities, including Tigard, will realize funding increases over time on the following schedule: 69 percent by 2011; 98 per- cent by 2012; and 100 percent by 2013. Tigard’s distribution will be adjusted to account for revenue received from the local gas tax which was grandfathered in under the legislation. To project state shared revenues, the city used the League of Oregon Cities (LOC) 2011 State Shared Revenue Estimates and the Oregon Economic and Revenue Forecast prepared by the State of Oregon Office of Economic Analysis (OEA). P AGE 52 - C ITY OF T IGARD E NTERPRISE F UNDS - U SER F EES User fees include water, sanitary sewer, and storm drainage fees charged to all users of such services. The sanitary and storm fees are established by the Clean Water Services Agency (CWS) and updated by the agency each year. The City Council, through an intergovernmental agreement with other system participants, sets the water rates. In 2008, Tigard entered into a water partnership with the City of Lake Oswego on a long -term water source. The two cities agreed to jointly expand a treatment facility, replace an existing river intake on the Clackamas River, and construct a reservoir. The improvements will allow Tigard and Lake Oswego to produce up to 38 million gallons of water per day. Of this amount, Tigard will receive between 14 and 20 million gallons per day. Water is anticipated to begin flowing from the new facility by 2016. Developing the new water source will be costly. The projects associated with the water partnership are estimated to cost more than $200 million. Tigard's share of the improvements and cost to buy into Lake Oswego's existing system is estimated to be $118 million. In order to pay for future bond issu- ances that will be necessary to complete the project, water rates will increase during the coming years. In January 2011, water rates increased by approximately 34% and are projected to increase by about 14% per year through January 2014. Per the intergovernmental agreement with CWS, the city retains only a portion of the sanitary and storm fees it collects. Each year, CWS revises the split for these fees. It is anticipated that the sanitary sewer and stormwater revenues will see minimal growth during FY 2011 -12. R EVENUE A NALYSIS - P AGE 53 C ONNECTION F EES Connection fees include traffic impact fees (TIF), storm and sanitary sewer connection charges, water connection and system development charges, and parks system development charges. This revenue category has shown a marked decline in recent years, particularly in fees for roads and sewer, which coincides with the decreased level of development activity that has occurred in Tigard. The city antici- pates development activity will remain at below historic levels over the next few years due to economic factors. The transportation development tax went into effect on July 1, 2009, replacing the traffic impact Fee (TIF) program. Like TIF, TDT is assessed on new development to help provide funds for the in- creased capacity transportation improvements needed to accommodate the additional vehicle traffic and demand for transit facilities generated by that development. It provides funds for these capacity improvements to county and city arterials, certain collectors, and certain state and transit facilities as listed in the County’s Capital Improvements Project List. The TDT is categorized as an Improvement Fee. Revenue must be dedicated to capital improvements that expand capacity and may not be used for maintenance, repair, or other non -capital improvements. As part of the funding of the water project with Lake Oswego, water system development charges (SDC) increased. Starting February 2011, the water SDC increased 87%. The increase fully imple- mented the reimbursement portion of the water SDC. Over a four year period, the improvement por- tion of the water SDC will be phased in, resulting in water SDC fees tripling by February 2014. Fiscal Year 2011 -12 anticipates the increased water SDC revenue. P AGE 54 - C ITY OF T IGARD P ERMIT F EE R EVENUE Permit fee revenues are recorded in the building fund, the electrical inspection fund and the general fund. The primary fees that are represented in the chart include: Engineering Public Improvement Fee, Sign Permits, Land Use Planning Application Fees, and all related Building Permit Fees. Nearly all fees are related to development activity and, therefore, reflect the level of that activity. A deep slow down in development activity occurred in Tigard, much of Oregon and the US through 2009. In October 2010, building fees increased to bring them in line with area communities. Com- bined with modest growth in activity, permit revenues have recovered, but are expected to remain at reduced levels through FY 2011 -12. When development activity does return, the city expects small, gradual increases in permit revenue. R EVENUE A NALYSIS - P AGE 55 C OUNTY S HARED R EVENUE County Shared Revenues include the Washington County gas tax, the Washington County Cooperative Library System (WCCLS) levy, and a countywide hotel/motel tax. Washington County collects a one -cent per gallon tax on gasoline, which is distributed to cities in the county to be used for road maintenance activities. Since the county has not increased the gas tax, as an increase has to be approved by voters, this revenue source has seen very minor growth over the past few years. The hotel/motel tax is collected by Washington County at a 7% rate and is distributed to all participat- ing jurisdictions. Tigard receives about one -third of the amount collected in the city limits. Tax collec- tions are directly related to room rental rates, the number of hotel and motel rooms within the city, and the economy. As the economy continues in a prolonged downturn, the city projects that this revenue source will continue to remain depressed from historical levels. WCCLS funds come from the county property taxes generated from the county’s permanent property tax rate. WCCLS funds are distributed to cities with public libraries based upon a formula heavily weighted to increases in circulation. In November 2010, a renewal of the 2006 WCCLS levy was passed by the voters. P AGE 56 - C ITY OF T IGARD F INE AND F ORFEITURE R EVENUE This source of revenue includes traffic and civil infraction citations, which are processed by the Munic- i p a l C o u r t , a n d f i n e s f o r l a t e a n d l o s t m a t e r i a l s a t t h e L i b r a r y . F i n e c o l l e c t i o n s a r e d i r e c t l y r e l a t e d t o the number of citations issued. The bail schedule is updated annually by the Municipal Court Judge. R EVENUE A NALYSIS - P AGE 57 I NTEREST E ARNINGS Interest earnings are generated from the investment of cash on hand in various funds of the city. In- terest earnings are directly attributable to the amount of cash available for investment and current in- terest rates. The city is assuming an interest rate of .5% for its investments due to the low rate of re- turns in the current market. It is anticipated that interest earnings will be flat in FY 2011 -12 as interest rates remain historically low. P AGE 58 - C ITY OF T IGARD F RANCHISE F EE R EVENUE Franchise fees are charged to private utilities for the use of the public rights -of -way. Private franchised activities paying the fee include electricity, natural gas, telecommunications, cable television, and solid waste haulers. In FY 2006 -07, the city began charging a 5% franchise fee to its public utilities, water and sanitary sewer. All franchise fees are computed as a percentage of gross proceeds generated within Tigard’s city limits. All franchises, with exception of cable television, are directly between the city and the franchise holder. The Metropolitan Area Communications Commission (MACC), a consortium of cities in the metro area, administers the cable television franchise. In January 2006, the solid waste franchise fee was increased from 3% to 4%. In Fiscal Year 2009 -10 the city brought the methodology used to calculate the Sanitary Sewer Franchise Fee more in line with the intention of the ordinance. As a result, an additional $300,000 will be paid to the General Fund each year. Current franchisees and franchise rates are: Service Provider Rate Cable Television Comcast/Verizon 5.00% Electricity Portland General Electric 3.50% Garbage All haulers 4.00% Natural Gas Northwest Natural Gas 5.00% Sanitary Sewer City of Tigard 5.00% Telecommunications All providers 5.00% Water City of Tigard 5.00% R EVENUE A NALYSIS - P AGE 59 Interfund transfers are the transfer of revenues between funds when the revenue is received in one fund for an expense that occurs in another fund or when City functions have more than one funding source. Another primary reason for transfers is for a fund to pay for services provided by another fund (for example, Financial Operations Division providing utility billing services for the Water, Sani- tary Sewer, Stormwater, and Street Maintenance Funds). A transfer -out is an expense to the fund that is transferring the money out or buying services. A trans- fer -in is a resource to the fund that is receiving the money or selling the service. For every expense transfer -out, there is a corresponding resource transfer -in. The corresponding transfers must show the same dollar amount. The various types of interfund transfers are defined below: General Resource Transfer Transfer of resources from one fund to another which are not based upon a cost allocation plan, actual expenditure, or any expectation of a payment for services provided. This type of transfer is simply a transfer of resources from one fund to another. Direct Resource Transfer/Capital Improvement Plan (CIP) Transfer Transfer of resources from one fund to another which are based upon a cost allocation plan and actual expenditures or an expectation of a payment for services provided. This type of transfer is typically based upon actual expenditure needs by a certain fund and are “trued up” from the budget figure based upon actual expenditures. Debt/Loan Repayment Transfer Transfer of resources from one fund to another to pay either all or a portion of an interfund loan. This type of transfer is typically based upon a five -year repayment schedule for capital loans. Indirect Cost Transfer Transfers received for services provided, which have been allocated based upon a cost allocation plan. The Indirect Cost Transfers Out are typically budgeted along with a division’s operating budget to show the true cost for that division to the City. For the City, the following bases of allocation are used for those functions or programs listed below: City Management – size of budget Finance Administration – size of budget Financial Operations – size of budget Human Resources – FTE count Risk Management – FTE/Auto Assignment/Bond Premium/Property Premiums Information Technology – number of personal computers assigned to budget unit and number of li- censes for specific software applications. Design & Communications – percent of time spent working on projects City Recorder/Records – percentage of Council items processed/percentage of records requests Property Management – square footage Fleet Maintenance – vehicle assignment Since the internal transfers are complex and can be difficult to follow and trace through the budget document, the following explanation is provided for each transfer, by fund. I NTERFUND T RANSFERS P AGE 60 - C ITY OF T IGARD I NTERFUND T RANSFERS R EVENUE A NALYSIS - P AGE 61 I NTERFUND T RANSFERS P AGE 62 - C ITY OF T IGARD I NTERFUND T RANSFERS R EVENUE A NALYSIS - P AGE 63 I NTERFUND T RANSFERS P AGE 64 - C ITY OF T IGARD I NTERFUND T RANSFERS P ROGRAM S UMMARIES - P AGE 65 P ROGRAM S UMMARIES The city adopts and manages its operating expenditures by program. The city has four operating pro- grams: Policy & Administration, Community Development, Community Services, and Public Works. Within each of these programs are one or more departments and budgets units, or divisions. A more detailed explanation of the city’s program structure can be found in the Reader’s Guide section. The following charts give a summary of the expenditures for the programs, budget classifications, and staffing levels. P AGE 66 - C ITY OF T IGARD E XPENDITURE S UMMARY BY P ROGRAM FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2011-12 FY 2011-12 Description Actual Actual Revised Proposed Approved Adopted Expenditure by Program Policy and Administration $5,997,149 $6,606,480 $6,854,700 $7,228,274 $7,230,774 $7,250,774 Community Development $5,794,319 $5,086,368 $4,061,877 $4,392,555 $4,392,555 $4,406,555 Community Services $15,584,782 $18,870,803 $19,304,054 $20,744,094 $20,744,094 $20,744,094 Public Works $10,756,136 $14,777,152 $16,876,831 $16,775,162 $16,871,407 $17,033,643 Total Expenditure by Program $38,132,386 $45,340,803 $47,097,462 $49,140,085 $49,238,830 $49,435,066 Number of FTE by Program Policy and Administration 45.55 44.15 44.15 44.95 44.95 44.95 Community Development 41.90 25.40 26.60 27.50 27.50 27.50 Community Services 135.90 128.90 128.90 128.90 128.90 128.90 Public Works 61.10 69.40 69.40 69.40 69.40 69.40 Total FTE by Program 284.45 267.85 269.05 270.75 270.75 270.75 Expenditure per FTE Policy and Administration $131,661 $149,637 $155,259 $160,807 $160,863 $161,308 Community Development $138,289 $200,251 $152,702 $159,729 $159,729 $160,238 Community Services $114,678 $146,399 $149,760 $160,932 $160,932 $160,932 Public Works $176,042 $212,927 $243,182 $241,717 $243,104 $245,442 Total Expenditure by FTE $134,057 $169,277 $175,051 $181,496 $181,861 $182,586 P ROGRAM S UMMARIES - P AGE 67 O PERATING B UDGET H ISTORY P AGE 68 - C ITY OF T IGARD O PERATING B UDGET H ISTORY P ROGRAM S UMMARIES - P AGE 69 S TAFFING L EVELS Between FY 2010 -11 and FY 2011 -12, City staff levels increased by 0.6% or a net increase of 1.7 FTE. A summary of the changes by department is below. Library The Library is showing a decrease of 3.10 FTE in fiscal year 2009 -10 that consisted of a combination of reduced hours and eliminated positions. Staffing levels are expected to remain flat in FY 2011 -12 in relation to the growth in general fund dollars. Community Development During the course of FY 2010 -11, Community Development added 1.2 FTE. The increase comes from restoring the hours of five 0.8 FTE Building Division staff to 1.0 FTE each. In addition, a posi- tion in Development Service increased from 0.8 FTE to 1.0 FTE to manage the Code Enforcement program. The increases brought the Department from 25.4 FTE to 26.6 FTE at the end of FY 2010 - 11. The Adopted Budget for FY 2011 -12 has a further increase of 0.9 FTE for Community Development. In the Building Division, the three 0.8 FTE Inspector positions will have their hours restored back to 1.0 FTE, accounting for 0.6 FTE increase. The remaining 0.3 FTE increase is also in the Building Di- vision to assist at the counter and with records. The increase is made possible by splitting a 1.0 FTE Planning Assistant position in Development Services in half, with 0.5 FTE going to Downtown Rede- velopment. The remaining half of the position will be increased by 0.3 FTE, making it a 0.8 FTE posi- tion. The 0.8 FTE Planning Assistant position is allocated 0.5 FTE to Development Services and 0.3 FTE to Building. Public Works The Public Works Department staffing increased in FY 2009 -10 as a result of the engineering reorgani- zation which moved the Engineering Division from Community Development to Public Works. The department continues to remain flat due to reallocation of current resources and workloads. Police The Police Department staffing continues to remain stable after general fund reductions in FY 2009 - 10. P AGE 70 - C ITY OF T IGARD City Management City Management sees a net decrease of .30 FTE in FY 2011 -12. This decrease consists of the realloca- tion of the Assistant City Manager’s position to Design & Communications (.20 FTE) and City Record- er/Records Divisions (.10 FTE). Administrative Services Administrative Services’ staffing level has increased by .30 FTE due to the reallocation of the Assistant City Manager to .20 FTE in Design and Communications, and .10 FTE in City Recorder/Records Di- visions. Finance and Information Services In FY 2011 -12, Finance and Information Services staffing will increase by 0.8 FTE. This increase is due to the city’s move to monthly utility billing. Previously, utility billing was performed every other month. With monthly billing, twice as many water meters need to be read each month. The Proposed Budget for FY 2011 -12 includes the addition of a Customer Service Field Worker in Utility Billing to assist with reading water meters and field service calls. S TAFFING L EVELS C OMMUNITY S ERVICES - P AGE 71 C OMMUNITY S ERVICES O RGANIZATION C HART P O L I C E L I B R A R Y C O M M U N I T Y S E R V I C E S S O C I A L S E R V I C E S /C O M M U N I T Y E V E N T S P AGE 72 - C ITY OF T IGARD C OMMUNITY S ERVICES P ROGRAM The Community Services Program consists of programs provided by the Police Department, Library and several Social Services and Community Event grants made by the City. Police programs include traditional public safety efforts (patrol, enforcement, traffic safety, etc.), but also include work with community groups to increase public safety awareness. Library programs include circulation of a wide variety of print and other media materials and the offer- ing of programs designed to increase reading, computer skills and lifelong learning. Social Service and Community Event grants provide funding to a variety of community organizations and groups that provide services to those in need in the community or which offer events that promote a greater sense of community. The primary source of funding for this program area is the General Fund. C OMMUNITY S ERVICES - P AGE 73 C OMMUNITY S ERVICES P ROGRAM P AGE 74 - C ITY OF T IGARD P OLICE O RGANIZATION C HART A D M I N I S T R A T I O N S U P P O R T S E R V I C E S P O L I C E O P E R A T I O N S C OMMUNITY S ERVICES - P AGE 75 P OLICE M ISSION S TATEMENT Tigard Police Department MISSION The Mission of the Tigard Police Department is to create the highest level of livability possible by working with our citizens to preserve and protect life, liberty, and property. VISION The Tigard Police Department is committed to achieving our mission by:  Partnering with citizens and other departments  Developing well trained, ethical, and accountable employees  Earning public trust and confidence through our actions and values GOALS The goals of the Tigard Police Department are:  To reduce crime and the fear of crime  To assist the City of Tigard in the accomplishment of municipal goals and objectives  To enhance the safety and security of Tigard’s residents, visitors, and businesses  To preserve constitutional and civil rights, and foster good citizenship in our youth CORE VALUES Attitude - Leadership - Integrity - Service - Teamwork  Officers and staff have ownership, familiarity, and knowledge of the unique needs of each patrol district making this City “A Place to Call Home,” with Tigard Police being here for you!  Provides leadership and management to the Department in support of the city’s strategic plans and objectives, including the “Values Integration Project.”  Increases police effectiveness by developing ethical, accountable, productive, and well - trained employees.  Oversees Department activities, evaluates policies, organizational structure, working con- ditions, and customer service levels; manages resources, develops partnerships and pro- grams; directs strategic planning.  The Public Information Officer (PIO) prevents and suppresses crime by providing crime prevention materials and programs to the media. Supports the City’s efforts in the “Neighborhood Network” and works with rental property owners and community mem- bers in the prevention of crime.  The Executive Assistant to the Chief of Police/Alarm Coordinator supports the Office of the Chief of Police and administers the City of Tigard Alarm Ordinance . P AGE 76 - C ITY OF T IGARD P OLICE A DMINISTRATION B UDGET U NIT : 4000 C OMMUNITY S ERVICES - P AGE 77 B UDGET U NIT : 4000 P OLICE A DMINISTRATION P AGE 78 - C ITY OF T IGARD P OLICE A DMINISTRATION B UDGET U NIT : 4000 C OMMUNITY S ERVICES - P AGE 79 P OLICE A DMINISTRATION B UDGET U NIT : 4000 P AGE 80 - C ITY OF T IGARD P OLICE A DMINISTRATION B UDGET U NIT : 4000 C OMMUNITY S ERVICES - P AGE 81 B UDGET U NIT : 4000 P OLICE A DMINISTRATION P AGE 82 - C ITY OF T IGARD B UDGET U NIT : 4000 P OLICE A DMINISTRATION C OMMUNITY S ERVICES - P AGE 83 B UDGET U NIT : 4000 P OLICE A DMINISTRATION P AGE 84 - C ITY OF T IGARD P OLICE O PERATIONS B UDGET U NIT : 4100 C OMMUNITY S ERVICES - P AGE 85 P OLICE O PERATIONS B UDGET U NIT : 4100 P AGE 86 - C ITY OF T IGARD P OLICE O PERATIONS B UDGET U NIT : 4100 C OMMUNITY S ERVICES - P AGE 87 P OLICE O PERATIONS B UDGET U NIT : 4100 P AGE 88 - C ITY OF T IGARD P OLICE O PERATIONS B UDGET U NIT : 4100 C OMMUNITY S ERVICES - P AGE 89 P OLICE O PERATIONS B UDGET U NIT : 4100 P AGE 90 - C ITY OF T IGARD P OLICE S UPPORT S ERVICES B UDGET U NIT : 4200 C OMMUNITY S ERVICES - P AGE 91 P OLICE S UPPORT S ERVICES B UDGET U NIT : 4200 P AGE 92 - C ITY OF T IGARD P OLICE S UPPORT S ERVICES B UDGET U NIT : 4200 C OMMUNITY S ERVICES - P AGE 93 B UDGET U NIT : 4200 P OLICE S UPPORT S ERVICES P AGE 94 - C ITY OF T IGARD B UDGET U NIT : 4200 P OLICE S UPPORT S ERVICES C OMMUNITY S ERVICES - P AGE 95 B UDGET U NIT : 4200 P OLICE S UPPORT S ERVICES P AGE 96 - C ITY OF T IGARD B UDGET U NIT : 4200 P OLICE S UPPORT S ERVICES C OMMUNITY S ERVICES - P AGE 97 B UDGET U NIT : 4200 P OLICE S UPPORT S ERVICES P AGE 98 - C ITY OF T IGARD P OLICE S UPPORT S ERVICES B UDGET U NIT : 4200 C OMMUNITY S ERVICES - P AGE 99 P OLICE S UPPORT S ERVICES B UDGET U NIT : 4200 P AGE 100 - C ITY OF T IGARD L IBRARY O RGANIZATION C HART L I B R A R Y A D M I N I S T R A T I O N T E C H N I C A L S E R V I C E S R E A D E R S ’ S E R V I C E S C I R C U L A T I O N C OMMUNITY S ERVICES - P AGE 101 L IBRARY A DMINISTRATION B UDGET U NIT : 5000 P AGE 102 - C ITY OF T IGARD L IBRARY A DMINISTRATION B UDGET U NIT : 5000 C OMMUNITY S ERVICES - P AGE 103 L IBRARY A DMINISTRATION B UDGET U NIT : 5000 P AGE 104 - C ITY OF T IGARD L IBRARY A DMINISTRATION B UDGET U NIT : 5000 C OMMUNITY S ERVICES - P AGE 105 L IBRARY A DMINISTRATION B UDGET U NIT : 5000 P AGE 106 - C ITY OF T IGARD L IBRARY A DMINISTRATION B UDGET U NIT : 5000 C OMMUNITY S ERVICES - P AGE 107 B UDGET U NIT : 5100 L IBRARY R EADER S ERVICES P AGE 108 - C ITY OF T IGARD L IBRARY R EADER S ERVICES B UDGET U NIT : 5100 C OMMUNITY S ERVICES - P AGE 109 L IBRARY R EADER S ERVICES B UDGET U NIT : 5100 P AGE 110 - C ITY OF T IGARD L IBRARY R EADER S ERVICES B UDGET U NIT : 5100 C OMMUNITY S ERVICES - P AGE 111 B UDGET U NIT : 5100 L IBRARY R EADER S ERVICES P AGE 112 - C ITY OF T IGARD L IBRARY R EADER S ERVICES B UDGET U NIT : 5100 C OMMUNITY S ERVICES - P AGE 113 L IBRARY T ECHNICAL S ERVICES B UDGET U NIT : 5200 P AGE 114 - C ITY OF T IGARD B UDGET U NIT : 5200 L IBRARY T ECHNICAL S ERVICES C OMMUNITY S ERVICES - P AGE 115 L IBRARY T ECHNICAL S ERVICES B UDGET U NIT : 5200 P AGE 116 - C ITY OF T IGARD B UDGET U NIT : 5300 L IBRARY C IRCULATION C OMMUNITY S ERVICES - P AGE 117 L IBRARY C IRCULATION B UDGET U NIT : 5300 P AGE 118 - C ITY OF T IGARD L IBRARY C IRCULATION B UDGET U NIT : 5300 C OMMUNITY S ERVICES - P AGE 119 L IBRARY C IRCULATION B UDGET U NIT : 5300 P AGE 120 - C ITY OF T IGARD L IBRARY C IRCULATION B UDGET U NIT : 5300 C OMMUNITY S ERVICES - P AGE 121 L IBRARY C IRCULATION B UDGET U NIT : 5300 P AGE 122 - C ITY OF T IGARD S OCIAL S ERVICES AND C OMMUNITY E VENTS B UDGET U NIT : 5900/5910 Program Description: Each year the City appropriates funds to support Social Service and Community Event activities that assist or benefit Tigard citizens. Community organizations are invited to submit requests in January of each year. A subcommittee of the Budget Committee meets to review Social Service requests and to recommend funding in the Proposed Budget. Community Event requests are reviewed informally by the Council. The Proposed Budget presents the results of both reviews. The budget committee guideline is to set total events and social service appropriations at approximately one -half of 1% of the prior year’s operating budget. Also, the City budgets three set asides within this appropriation in addition to the target amount for grants: the Housing Program “emergency fund” to assist occupants of housing declared to be unsafe; the Affordable Housing Set -Aside to assist providers of low -income housing; and the Residential Services Agency Emergency Set -Aside to assist agencies that provide emergency food and housing to those in need. The City received $280,049 in grant requests for community events and social services for FY 2011 -12. In addition to direct grants, some of the grant recipients also receive in -kind services from the City. These services range from provision of a building and its operating costs for the Loaves and Fishes/ Tigard Senior Center to Tigard Public Works and Police time to support community events. C OMMUNITY S ERVICES - P AGE 123 B UDGET U NIT : 5900/5910 S OCIAL S ERVICES AND C OMMUNITY E VENTS P AGE 124 - C ITY OF T IGARD S OCIAL S ERVICES AND C OMMUNITY E VENTS B UDGET U NIT : 5900/5910 City of Tigard City of Tigard FY 2011-12 FY 2011-12 Community Event Grant Requests Social Services Grant Requests Agency Recommended Agency Recommended Res 00-22 Broadway Rose*Direct 10,000 $ Affordable Housing Set-Aside Direct 10,000 $ $10,000/yr Res 00-20 Festival of the Balloons**Direct 19,000 $ Housing Prog Emergency Fund Direct 10,000 $ $10,000/yr Res 00-21 Tigard 4th of July***Direct 13,000 $ Residential Services Agency Direct 6,000 $ $7,500/yr In-Kind 1,600 $ Set Aside Total Set Aside Total Direct 42,000 $ Direct 26,000 $ In-Kind 1,600 $ In-Kind -$ Tigard Little League Direct 2,919 $ Caring Closet Direct 5,000 $ City of Tigard Dog Park Direct 400 $ CommunityAction Org Direct 7,000 $ Tigard Area Farmer's Market Direct 8,500 $ Compassion Tigard Clinic Direct 10,000 $ Tigard Area Visitor's Center Direct 12,000 $ Domestic Violence Res Center Direct 5,000 $ Tigard Historical Association Direct 1,500 $ Good Neighbor Center Direct 15,000 $ Tigard High Graduation Party Direct 2,000 $ LifeWorks Direct 20,000 $ Tigard Safety Town Direct 4,000 $ Louves and Fishes/Senior Center Direct 29,000 $ In-Kind 66,000 $ Tualatin Riverkeepers Direct 3,000 $ In-Kind 920 $ Luke Dorf Direct 27,000 $ Tualatin Valley Community Band Direct 2,000 $ Rebuilding Together Washington County Direct 650 $ Retired & Senior Volunteer Prog Direct 6,000 $ Sexual Assault Resource Center Direct 6,000 $ Tigard Tualatin Family Resource Ctr Direct 6,500 $ Sub-total Sub-total Direct 36,319 $ Direct 137,150 $ In-Kind 920 $ In-Kind 66,000 $ Total (Set asides and others)Total (Set asides and others) Direct 78,319 $ Direct 163,150 $ In-Kind 2,520 $ In-Kind 66,000 $ P UBLIC W ORKS - P AGE 125 P UBLIC W ORKS O RGANIZATION C HART P U B L I C W O R K S F L E E T M A I N T E N A N C E P W E N G I N E E R I N G A D M I N I S T R A T I O N P R O P E R T Y M A N A G E M E N T P A R K S A N D G R O U N D S S A N I T A R Y S E W E R S T R E E T M A I N T E N A N C E W A T E R S T O R M W A T E R S T R E E T L I G H T S & S I G N A L S P AGE 126 - C ITY OF T IGARD P UBLIC W ORKS P ROGRAM The Public Works Program encompasses the Public Works Department and includes the maintenance of the city’s infrastructure (roads, grounds and city buildings) as well as provision of water, sanitary sewer and stormwater sewer services. In 2008, the city entered into an agreement with the city of Lake Oswego for sharing drinking water resources and costs. In fiscal year 2010, as part of the Lake Oswego Partnership, Public Works com- pleted a water financial plan that estimated the revenue requirements for project expenditures, debt service, and operations for a 20 year period. The reader will find that this section of the budget document addresses the results of the partnership. P UBLIC W ORKS - P AGE 127 P UBLIC W ORKS P ROGRAM P AGE 128 - C ITY OF T IGARD P UBLIC W ORKS A DMINISTRATION B UDGET U NIT : 6000 P UBLIC W ORKS - P AGE 129 P UBLIC W ORKS A DMINISTRATION B UDGET U NIT : 6000 P AGE 130 - C ITY OF T IGARD P UBLIC W ORKS A DMINISTRATION B UDGET U NIT : 6000 P UBLIC W ORKS - P AGE 131 P UBLIC W ORKS A DMINISTRATION B UDGET U NIT : 6000 P AGE 132 - C ITY OF T IGARD P UBLIC W ORKS A DMINISTRATION B UDGET U NIT : 6000 P UBLIC W ORKS - P AGE 133 P ARKS AND G ROUNDS B UDGET U NIT : 6100 P AGE 134 - C ITY OF T IGARD P ARKS AND G ROUNDS B UDGET U NIT : 6100 P UBLIC W ORKS - P AGE 135 B UDGET U NIT : 6100 P ARKS AND G ROUNDS P AGE 136 - C ITY OF T IGARD P ARKS AND G ROUNDS B UDGET U NIT : 6100 P UBLIC W ORKS - P AGE 137 B UDGET U NIT : 6100 P ARKS AND G ROUNDS P AGE 138 - C ITY OF T IGARD S TREET MAINTENANCE B UDGET U NIT : 6200 P UBLIC W ORKS - P AGE 139 S TREET MAINTENANCE B UDGET U NIT : 6200 P AGE 140 - C ITY OF T IGARD S TREET MAINTENANCE B UDGET U NIT : 6200 With the adopted FY 2011 budget, the Street Maintenance Division was moved from the General Fund to the Gas Tax Fund. These two pages reflect the history in the General Fund and the 2011 budget in the Gas Tax Fund. P UBLIC W ORKS - P AGE 141 S TREET MAINTENANCE B UDGET U NIT : 6200 P AGE 142 - C ITY OF T IGARD S TREET MAINTENANCE B UDGET U NIT : 6200 P UBLIC W ORKS - P AGE 143 S TREET MAINTENANCE B UDGET U NIT : 6200 P AGE 144 - C ITY OF T IGARD F LEET MAINTENANCE B UDGET U NIT : 6300 P UBLIC W ORKS - P AGE 145 F LEET MAINTENANCE B UDGET U NIT : 6300 P AGE 146 - C ITY OF T IGARD F LEET MAINTENANCE B UDGET U NIT : 6300 P UBLIC W ORKS - P AGE 147 P ROPERTY MANAGEMENT B UDGET U NIT : 6400 P AGE 148 - C ITY OF T IGARD P ROPERTY MANAGEMENT B UDGET U NIT : 6400 P UBLIC W ORKS - P AGE 149 P ROPERTY MANAGEMENT B UDGET U NIT : 6400 P AGE 150 - C ITY OF T IGARD P ROPERTY MANAGEMENT B UDGET U NIT : 6400 P UBLIC W ORKS - P AGE 151 W ATER B UDGET U NIT : 6500 P AGE 152 - C ITY OF T IGARD WATER B UDGET U NIT : 6500 P UBLIC W ORKS - P AGE 153 WATER B UDGET U NIT : 6500 P AGE 154 - C ITY OF T IGARD WATER B UDGET U NIT : 6500 P UBLIC W ORKS - P AGE 155 WATER B UDGET U NIT : 6500 P AGE 156 - C ITY OF T IGARD WATER B UDGET U NIT : 6500 P UBLIC W ORKS - P AGE 157 S ANITARY SEWER B UDGET U NIT : 6600 P AGE 158 - C ITY OF T IGARD S ANITARY SEWER B UDGET U NIT : 6600 P UBLIC W ORKS - P AGE 159 B UDGET U NIT : 6600 S ANITARY SEWER P AGE 160 - C ITY OF T IGARD S ANITARY SEWER B UDGET U NIT : 6600 P UBLIC W ORKS - P AGE 161 S TORMWATER B UDGET U NIT : 6700 P AGE 162 - C ITY OF T IGARD S TORMWATER B UDGET U NIT : 6700 P UBLIC W ORKS - P AGE 163 STORMWATER B UDGET U NIT : 6700 P AGE 164 - C ITY OF T IGARD B UDGET U NIT : 6700 STORMWATER P UBLIC W ORKS - P AGE 165 STORMWATER B UDGET U NIT : 6700 P AGE 166 - C ITY OF T IGARD PW E NGINEERING B UDGET U NIT : 6250 P UBLIC W ORKS - P AGE 167 B UDGET U NIT : 6250 PW E NGINEERING P AGE 168 - C ITY OF T IGARD B UDGET U NIT : 6250 PW E NGINEERING P UBLIC W ORKS - P AGE 169 B UDGET U NIT : 6250 PW E NGINEERING P AGE 170 - C ITY OF T IGARD B UDGET U NIT : 6250 PW E NGINEERING Note: In FY 2010, some expenditures of the PW Engineering Division were coded directly to the Wa- ter Fund. The section below displays these actual expenditures for historical purposes. P UBLIC W ORKS - P AGE 171 S TREET L IGHTS & S IGNALS B UDGET U NIT : 6800 P AGE 172 - C ITY OF T IGARD S TREET L IGHTS & S IGNALS B UDGET U NIT : 6800 Note: Prior to FY 2011, Street Lights & Signals was part of the Community Development Program. This page is split to show the change from Community Development (upper portion of page) to Public Works (lower portion of page). C OMMUNITY D EVELOPMENT - P AGE 173 C OMMUNITY DEVELOPMENT O RGANIZATION C HART C O M M U N I T Y P L A N N I N G B U I L D I N G A D M I N I S T R A T I O N C O M M U N I T Y D E V E L O P M E N T D E V E L O P M E N T S E R V I C E S D O W N T O W N R E D E V E L O P M E N T P AGE 174 - C ITY OF T IGARD C OMMUNITY D EVELOPMENT P ROGRAM This section includes budget appropriations and explanatory materials for the Community Develop- ment Program. The Community Development Department budget includes five activity areas: Com- munity Development Administration, Building, Development Services, Community Planning and Downtown Redevelopment. The Community Development Department has been significantly affected by the economic recession; particularly through the downturn in development related revenues. However, council goals have shifted the focus from land use development to more long -term strategic goals. These goals consist primarily of the implementation of the Comprehensive Plan including updating the Tree Code, the Tigard Triangle Master Plan, as well as participation in the Southwest Corridor Study. With this change in direction, Community Development has reorganized the department in order to better utilize its re- sources to achieve these council goals. Major changes include combining Development Services Plan- ning with Long Range Planning which is now called Community Planning. Development Engineering has also been reorganized and its name changed to Development Services. In this budget document, the reader will find the historical information for Development Services - Engineering, Capital Construction and Transportation, as well as Street Lights and Signals. C OMMUNITY D EVELOPMENT - P AGE 175 C OMMUNITY D EVELOPMENT P ROGRAM P AGE 176 - C ITY OF T IGARD C OMMUNITY D EVELOPMENT A DMINISTRATION B UDGET U NIT : 3000 C OMMUNITY D EVELOPMENT - P AGE 177 C OMMUNITY D EVELOPMENT A DMINISTRATION B UDGET U NIT : 3000 P AGE 178 - C ITY OF T IGARD B UDGET U NIT : 3000 C OMMUNITY D EVELOPMENT A DMINISTRATION C OMMUNITY D EVELOPMENT - P AGE 179 B UDGET U NIT : 3000 C OMMUNITY D EVELOPMENT A DMINISTRATION P AGE 180 - C ITY OF T IGARD B UDGET U NIT : 3000 C OMMUNITY D EVELOPMENT A DMINISTRATION C OMMUNITY D EVELOPMENT - P AGE 181 B UILDING B UDGET U NIT : 3100 P AGE 182 - C ITY OF T IGARD B UDGET U NIT : 3100 B UILDING C OMMUNITY D EVELOPMENT - P AGE 183 B UDGET U NIT : 3100 B UILDING P AGE 184 - C ITY OF T IGARD B UDGET U NIT : 3100 B UILDING C OMMUNITY D EVELOPMENT - P AGE 185 B UDGET U NIT : 3100 B UILDING P AGE 186 - C ITY OF T IGARD B UDGET U NIT : 3200 D EVELOPMENT S ERVICES C OMMUNITY D EVELOPMENT - P AGE 187 B UDGET U NIT : 3200 D EVELOPMENT S ERVICES P AGE 188 - C ITY OF T IGARD B UDGET U NIT : 3200 D EVELOPMENT S ERVICES C OMMUNITY D EVELOPMENT - P AGE 189 B UDGET U NIT : 3200 D EVELOPMENT S ERVICES P AGE 190 - C ITY OF T IGARD B UDGET U NIT : 3200 D EVELOPMENT S ERVICES C OMMUNITY D EVELOPMENT - P AGE 191 B UDGET U NIT : 3200 D EVELOPMENT S ERVICES P AGE 192 - C ITY OF T IGARD D EVELOPMENT S ERVICES -E NGINEERING B UDGET U NIT : 3500 C OMMUNITY D EVELOPMENT - P AGE 193 D EVELOPMENT S ERVICES -E NGINEERING B UDGET U NIT : 3500 Note: Development Services -Engineering Division was combined with Development Services for FY 2012. The information is provided for historical purposes. P AGE 194 - C ITY OF T IGARD B UDGET U NIT : 3300 C OMMUNITY P LANNING C OMMUNITY D EVELOPMENT - P AGE 195 B UDGET U NIT : 3300 C OMMUNITY P LANNING P AGE 196 - C ITY OF T IGARD B UDGET U NIT : 3300 C OMMUNITY P LANNING C OMMUNITY D EVELOPMENT - P AGE 197 B UDGET U NIT : 3300 C OMMUNITY P LANNING P AGE 198 - C ITY OF T IGARD C OMMUNITY P LANNING B UDGET U NIT : 3300 C OMMUNITY D EVELOPMENT - P AGE 199 B UDGET U NIT : 3300 C OMMUNITY P LANNING P AGE 200 - C ITY OF T IGARD D OWNTOWN R EDEVELOPMENT B UDGET U NIT : 3700 C OMMUNITY D EVELOPMENT - P AGE 201 B UDGET U NIT : 3700 D OWNTOWN R EDEVELOPMENT P AGE 202 - C ITY OF T IGARD B UDGET U NIT : 3700 D OWNTOWN R EDEVELOPMENT C OMMUNITY D EVELOPMENT - P AGE 203 D OWNTOWN R EDEVELOPMENT B UDGET U NIT : 3700 P AGE 204 - C ITY OF T IGARD B UDGET U NIT : 3700 D OWNTOWN R EDEVELOPMENT C OMMUNITY D EVELOPMENT - P AGE 205 C APITAL C ONSTRUCTION & T RANSPORTATION B UDGET U NIT : 3400 P AGE 206 - C ITY OF T IGARD B UDGET U NIT : 3400 C APITAL C ONSTRUCTION & T RANSPORTATION Note: This division was moved during FY 2010 to Public Works and became the PW Engineering Di- vision. This information is for historical purposes. C OMMUNITY D EVELOPMENT - P AGE 207 B UDGET U NIT : 3600 S TREET L IGHTS & S IGNALS Note: This division was moved during FY 2011 to Public Works. This information is for historical purposes. P AGE 208 - C ITY OF T IGARD City of Tigard | A DOPTED B UDGET | FY 2 01 1 –2 0 1 2 P OLICY AND A DMINISTRATION - P AGE 209 P OLICY & A DMINISTRATION O RGANIZATION C HART P AGE 210 - C ITY OF T IGARD P OLICY AND A DMINISTRATION P ROGRAM The Policy and Administration Program consists of the Mayor and Council, City Management, Ad- ministrative Services and the Finance and Information Service Departments. This program includes a wide variety of functions that encompass the areas of administrative support, strategic planning, city management, computer and information services, financial management, accounting, utility billing, municipal court, human resource management, records management, risk management and contracts and purchasing. The Mayor and Council and the Municipal Court budgets are funded completely out of the General Fund. The other budget units are funded by charge backs to other city programs that use these com- mon services. P OLICY AND A DMINISTRATION - P AGE 211 M AYOR AND C ITY C OUNCIL P AGE 212 - C ITY OF T IGARD M AYOR & C ITY C OUNCIL B UDGET U NIT : 0500 P OLICY AND A DMINISTRATION - P AGE 213 M AYOR & C ITY C OUNCIL B UDGET U NIT : 0500 P AGE 214 - C ITY OF T IGARD B UDGET U NIT : 0500 M AYOR & C ITY C OUNCIL P OLICY AND A DMINISTRATION - P AGE 215 C ITY MANAGEMENT O RGANIZATION C HART P AGE 216 - C ITY OF T IGARD C ITY M ANAGER ’S O FFICE B UDGET U NIT : 1000 P OLICY AND A DMINISTRATION - P AGE 217 B UDGET U NIT : 1000 C ITY M ANAGER ’S O FFICE P AGE 218 - C ITY OF T IGARD B UDGET U NIT : 1000 C ITY M ANAGER ’S O FFICE P OLICY AND A DMINISTRATION - P AGE 219 B UDGET U NIT : 1000 C ITY M ANAGER ’S O FFICE P AGE 220 - C ITY OF T IGARD B UDGET U NIT : 1100 H UMAN R ESOURCES P OLICY AND A DMINISTRATION - P AGE 221 B UDGET U NIT : 1100 H UMAN R ESOURCES P AGE 222 - C ITY OF T IGARD B UDGET U NIT : 1100 H UMAN R ESOURCES P OLICY AND A DMINISTRATION - P AGE 223 B UDGET U NIT : 1100 H UMAN R ESOURCES P AGE 224 - C ITY OF T IGARD B UDGET U NIT : 1200 R ISK M ANAGEMENT P OLICY AND A DMINISTRATION - P AGE 225 B UDGET U NIT : 1200 R ISK M ANAGEMENT P AGE 226 - C ITY OF T IGARD B UDGET U NIT : 1200 R ISK M ANAGEMENT P OLICY AND A DMINISTRATION - P AGE 227 B UDGET U NIT : 1200 R ISK M ANAGEMENT P AGE 228 - C ITY OF T IGARD A DMINISTRATIVE S ERVICES O RGANIZATION C HART P OLICY AND A DMINISTRATION - P AGE 229 B UDGET U NIT : 1300 D ESIGN & C OMMUNICATIONS P AGE 230 - C ITY OF T IGARD B UDGET U NIT : 1300 D ESIGN & C OMMUNICATIONS P OLICY AND A DMINISTRATION - P AGE 231 B UDGET U NIT : 1300 D ESIGN & C OMMUNICATIONS P AGE 232 - C ITY OF T IGARD B UDGET U NIT : 1300 D ESIGN & C OMMUNICATIONS P OLICY AND A DMINISTRATION - P AGE 233 M UNICIPAL C OURT B UDGET U NIT : 1400 P AGE 234 - C ITY OF T IGARD M UNICIPAL C OURT B UDGET U NIT : 1400 P OLICY AND A DMINISTRATION - P AGE 235 M UNICIPAL C OURT B UDGET U NIT : 1400 P AGE 236 - C ITY OF T IGARD B UDGET U NIT : 1400 M UNICIPAL C OURT P OLICY AND A DMINISTRATION - P AGE 237 C ITY R ECORDER /R ECORDS B UDGET U NIT : 1500 P AGE 238 - C ITY OF T IGARD B UDGET U NIT : 1500 C ITY R ECORDER /R ECORDS P OLICY AND A DMINISTRATION - P AGE 239 C ITY R ECORDER /R ECORDS B UDGET U NIT : 1500 P AGE 240 - C ITY OF T IGARD B UDGET U NIT : 1500 C ITY R ECORDER /R ECORDS P OLICY AND A DMINISTRATION - P AGE 241 F INANCE AND I NFORMATION S ERVICES O RGANIZATION C HART P AGE 242 - C ITY OF T IGARD F INANCE & I NFORMATION S ERVICES A DMIN B UDGET U NIT : 2000 P OLICY AND A DMINISTRATION - P AGE 243 B UDGET U NIT : 2000 F INANCE & I NFORMATION S ERVICES A DMIN P AGE 244 - C ITY OF T IGARD F INANCE & I NFORMATION S ERVICES A DMIN B UDGET U NIT : 2000 P OLICY AND A DMINISTRATION - P AGE 245 F INANCE & I NFORMATION S ERVICES A DMIN B UDGET U NIT : 2000 P AGE 246 - C ITY OF T IGARD F INANCIAL O PERATIONS B UDGET U NIT : 2100 P OLICY AND A DMINISTRATION - P AGE 247 F INANCIAL O PERATIONS B UDGET U NIT : 2100 P AGE 248 - C ITY OF T IGARD F INANCIAL O PERATIONS B UDGET U NIT : 2100 P OLICY AND A DMINISTRATION - P AGE 249 U TILITY B ILLING B UDGET U NIT : 2200 P AGE 250 - C ITY OF T IGARD U TILITY B ILLING B UDGET U NIT : 2200 P OLICY AND A DMINISTRATION - P AGE 251 U TILITY B ILLING B UDGET U NIT : 2200 P AGE 252 - C ITY OF T IGARD I NFORMATION T ECHNOLOGY B UDGET U NIT : 2300 P OLICY AND A DMINISTRATION - P AGE 253 I NFORMATION T ECHNOLOGY B UDGET U NIT : 2300 P AGE 254 - C ITY OF T IGARD B UDGET U NIT : 2300 I NFORMATION T ECHNOLOGY P OLICY AND A DMINISTRATION - P AGE 255 I NFORMATION T ECHNOLOGY B UDGET U NIT : 2300 P AGE 256 - C ITY OF T IGARD B UDGET U NIT : 2500 C ONTRACTS & P URCHASING P OLICY AND A DMINISTRATION - P AGE 257 B UDGET U NIT : 2500 C ONTRACTS & P URCHASING P AGE 258 - C ITY OF T IGARD C ONTRACTS & P URCHASING B UDGET U NIT : 2500 C APITAL I MPROVEMENT P LAN - P AGE 259 C APITAL I MPROVEMENT P LAN S UMMARY TIGARD CAPITAL IMPROVEMENT PROGRAM FY 2011 -16 The Capital Improvement Program (CIP) establishes Tigard’s annual budget for capital improvements to its public facility system. Public facilities addressed by the CIP are roads, parks, sanitary sewer, storm drainage, water quality management, domestic water, public buildings and operations facilities. The CIP is also an important budget -planning tool that prioritizes and assigns costs to needed public facility capital projects over a 5 -year period including each budget year. Tigard’s CIP management team up- dates the program annually. The management team consists of various representatives from all depart- ments including Public Works, Community Development and Finance and Information Services. The CIP Management Team’s responsibilities include coordinating the CIP update with master plans, city departments, and comments from Tigard residents. The update process provides the public op- portunities to identify needed community infrastructure investments. By definition, a capital improve- ment project is any project that improves or adds value to the city’s infrastructure, costs $50,000 or more, and has a useful life or extends the useful life of infrastructure for 5 years or more. Maintenance expenditures are recurring capital expenditures and are not part of the CIP. The CIP includes only those projects that are fully funded. The CIP Plan is a document providing de- tails of those fully funded projects and is also updated and published annually along with the city’s op- erating budget. In addition, the cost of internal staff is included in the CIP. In prior years, if design work was performed by outside consultants, the cost was included, but not if that same work was per- formed in -house. Also, this CIP includes a summary of all projects by funding source for each year of the 5 -year Capital Improvement Program plus a summary for all 5 years. P AGE 260 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN S UMMARY Impact of Capital Improvement Program on Operating Costs Capital projects can impact the future operating and maintenance costs of the city. In some instances, such as the construction of a new facility, operating costs will increase. In other instances, such as re- placement of old and defective water meters, operating costs may decrease. As the city makes deci- sions about which capital projects to implement, it must also evaluate the impact these projects will have on future operating costs and determine if the city will be able to afford those costs in future years. By approving the CIP projects, the city is making a commitment to adequately fund those future operating costs. The following discussion summarizes the anticipated major operating cost within each capital improve- ment system: General Facilities Capital Projects System Program The city General Facilities Capital Projects System Program’s FY 2011 -12 CIP includes funding for campus parking of city facilities. This project will have very minimal impact on future operating costs as it will not require additional staffing or materials. Parks System Program The Parks System Program FY 2011 -12 CIP includes projects that will have a direct impact on the city’s operating costs. The very nature of a park system requires ongoing maintenance costs both for new additions to a system as well as maturing parks or trails. Significant projects listed within the FY 2011 -12 parks systems include land acquisitions and development resulting from the $17 million dollar parks bond that was approved by voters in November 2010. A total of $9.09 million has been utilized for purchase of land for Summer Creek Park 1 & 2, Sunrise Park, Tigard Street Trail, and Potso Park in FY 2011. A total of $5.58 million dollars has been earmarked for sites identified by the city’s Parks & Recreation Advisory Board (PRAB). Another $450,000 has been set aside for land development includ- ing sites located within the downtown area. The remaining funds are programmed to be spent in FY 2013 for parks development. There is a total 90 acres of land for parks that is expected to require maintenance in the coming years. Therefore, the Parks and Grounds Division budget includes an overall slight increase in order to hire more seasonal workers at a cost of $140,000. In addition, the city will contract out for a Program C APITAL I MPROVEMENT P LAN - P AGE 261 C APITAL I MPROVEMENT P LAN S UMMARY Manager whose main responsibility is to administer all land acquisitions and development projects for the city. Sanitary Sewer Program Many of the projects in the Sanitary Sewer Program, such as the Major Maintenance and Line Replace- ment programs, address existing and potential maintenance problems and thereby serve to reduce and prevent future operating cost impacts. The Sanitary Sewer Rehabilitation Program addresses those in- frastructure needs that have been identified by the Sanitary Sewer Master Plan. Although additional sewer lines increase operating costs somewhat, these costs are offset by the additional revenues re- ceived by new sewer customers. No new positions related to the Sanitary Sewer program are anticipat- ed in the coming years. Street System Program The operating cost impact of the Streets Program is minimal and no new positions are forecast in the next few years. The city’s Pavement Management Program (PMP) provides corrective and preventative maintenance on city streets including right -of -way maintenance. The program restores the wearing course of the streets and thereby improves the pavement’s integrity, improves ride ability, and enhances traffic safety. By performing these upgrades and improvements to the city’s streets on a regular sched- ule, the city is able to reduce future operating costs. P AGE 262 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN S UMMARY The FY 2011 -12 CIP budget does contain a few street and crosswalk light/signal installation projects. As the streets and crosswalk lights/signals cost the city a little more than $500,000 annually to light, the impact to operating costs will be minimal when rolled into the overall program. The city’s use of Liquid Crystal Display (LCD) lights in signals helps to minimize these ongoing costs. As part of the Street System, street projects that are related to the Urban Renewal District are reflected in the CIP. The FY 2011 -12 CIP includes two downtown projects; Main Street Green Street Retrofit and the Burnham Street Public Parking Lot. With the complete reconstruction of this street, the im- pact on future operating costs is minimal. Storm Water Program The projects within the Strom Water Program are typically designed to address erosion and storm drainage problems and to return wetland areas to a more natural, native state. These projects have a tendency to show a positive impact on future operating costs by postponing the need for additional staff. As a result, no new positions are forecast in the coming years related to this program. C APITAL I MPROVEMENT P LAN - P AGE 263 C APITAL I MPROVEMENT P LAN S UMMARY Water System Program In the FY 2011 -12 CIP, the Water System Program has a variety of projects planned. A number of these projects, including the Water Main Line Over -sizing projects which consists of the maintenance or replacement of existing infrastructure. By maintaining the existing system, the city avoids higher future costs than if the system were allowed to deteriorate. While difficult to calculate, it is safe to say that these projects create savings in future operating costs. There are water system projects that will have a direct impact on operating costs in the coming years. The 10 MG Transfer Pump Station will increase utility costs by roughly $35,000 annually. Although this project does have an impact on operating costs, the newly completed station will provide a higher pumping capacity. The FY 2011 -12 CIP also sees the continuation of the Lake Oswego Partnership. This project will provide Tigard with a long term water supply with delivery scheduled for 2015. The project will in- clude a raw water intake facility on the Clackamas River, increased piping size, increased water treat- ment plant capacity, and other capacity increases. The full impact of this project on future operating cost is extremely difficult to forecast this early in the project but it is certain there will be a significant effect on materials, utilities, and likely personnel costs. P AGE 264 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - S TREETS C APITAL I MPROVEMENT P LAN - P AGE 265 C APITAL I MPROVEMENT P LAN - S TREETS P AGE 266 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - S TREETS C APITAL I MPROVEMENT P LAN - P AGE 267 C APITAL I MPROVEMENT P LAN - S TREETS P AGE 268 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - S TREETS C APITAL I MPROVEMENT P LAN - P AGE 269 C APITAL I MPROVEMENT P LAN - S TREETS P AGE 270 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - S TREETS C APITAL I MPROVEMENT P LAN - P AGE 271 C APITAL I MPROVEMENT P LAN - P ARKS P AGE 272 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - P ARKS C APITAL I MPROVEMENT P LAN - P AGE 273 C APITAL I MPROVEMENT P LAN - P ARKS P AGE 274 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - P ARKS C APITAL I MPROVEMENT P LAN - P AGE 275 C APITAL I MPROVEMENT P LAN - P ARKS P AGE 276 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - P ARKS C APITAL I MPROVEMENT P LAN - P AGE 277 C APITAL I MPROVEMENT P LAN - W ATER P AGE 278 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - W ATER C APITAL I MPROVEMENT P LAN - P AGE 279 C APITAL I MPROVEMENT P LAN - W ATER P AGE 280 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - W ATER C APITAL I MPROVEMENT P LAN - P AGE 281 C APITAL I MPROVEMENT P LAN - W ATER P AGE 282 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - W ATER C APITAL I MPROVEMENT P LAN - P AGE 283 C APITAL I MPROVEMENT P LAN - W ATER P AGE 284 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - W ATER C APITAL I MPROVEMENT P LAN - P AGE 285 C APITAL I MPROVEMENT P LAN - W ATER P AGE 286 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - S ANITARY S EWER C APITAL I MPROVEMENT P LAN - P AGE 287 C APITAL I MPROVEMENT P LAN - S ANITARY S EWER P AGE 288 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - S ANITARY S EWER C APITAL I MPROVEMENT P LAN - P AGE 289 C APITAL I MPROVEMENT P LAN - S ANITARY S EWER P AGE 290 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - S ANITARY S EWER C APITAL I MPROVEMENT P LAN - P AGE 291 C APITAL I MPROVEMENT P LAN - S ANITARY S EWER P AGE 292 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - S ANITARY S EWER C APITAL I MPROVEMENT P LAN - P AGE 293 C APITAL I MPROVEMENT P LAN - S ANITARY S EWER P AGE 294 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - S ANITARY S EWER C APITAL I MPROVEMENT P LAN - P AGE 295 C APITAL I MPROVEMENT P LAN - S ANITARY S EWER P AGE 296 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - S ANITARY S EWER C APITAL I MPROVEMENT P LAN - P AGE 297 C APITAL I MPROVEMENT P LAN - S ANITARY S EWER P AGE 298 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - S ANITARY S EWER C APITAL I MPROVEMENT P LAN - P AGE 299 C APITAL I MPROVEMENT P LAN - S ANITARY S EWER P AGE 300 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - S TORMWATER C APITAL I MPROVEMENT P LAN - P AGE 301 C APITAL I MPROVEMENT P LAN - S TORMWATER P AGE 302 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - S TORMWATER C APITAL I MPROVEMENT P LAN - P AGE 303 C APITAL I MPROVEMENT P LAN - S TORMWATER P AGE 304 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - S TORMWATER C APITAL I MPROVEMENT P LAN - P AGE 305 C APITAL I MPROVEMENT P LAN - S TORMWATER P AGE 306 - C ITY OF T IGARD C APITAL I MPROVEMENT P LAN - F ACILITIES C APITAL I MPROVEMENT P LAN - P AGE 307 C APITAL I MPROVEMENT P LAN - F ACILITIES P AGE 308 - C ITY OF T IGARD City of Tigard | A DOPTED B UDGET | FY 2 01 1 –2 0 1 2 D EBT S ERVICE - P AGE 309 D EBT S ERVICE The c ity has five types of debt currently outstanding. The first are two general obligation bond s secured by the c ity’s authority to levy property taxes. The second is a loan through the Oregon Economic and Community Development Department (OECDD), secured by current and future park system development charges collected by the c ity. The third is a Build America Bond (BAB) for transportation projects that wi ll be repaid with Gas Tax, City Gas Tax, Transportation Impact Fees and Transportation Development Tax. The fourth is assessment bonds secured by installment payment contracts with property owners. Fifth , the c ity has a line of credit to pay for the plan ning stages of the c ity’s water agreement with the City of Lake Oswego. It is anticipated that this line of credit will be paid off when revenue bonds are issued in FY 2011 - 12. Also , the c ity has the authority to issue short term bond anticipation notes secured by the c ity’s full faith and credit and the ability to assess property owners when the related project is complete. The c ity’s current outstanding debt payments (principal plus interest) are as follows: General Obligation Loans Build America Bo nd Assessments Line of Credit Total FY 11 -12 2,195,950 282,710 949,058 193,418 6,000,000 9,621,135 FY 12 -13 2,191,500 - 940,348 193,372 - 3,325,219 FY 13 -14 2,193,700 - 925,768 148,415 - 3,267,883 FY 14 -15 2,194,700 - 915,535 103,330 - 3,213,565 FY 15 -16 2,194,500 904,433 103,397 3,202,329 FY 15 -16 - 30 - 31 25,716,875 - 3,508,653 391,162 - 29,616,690 $36,687,225 $282,710 $ 8,143,793 $ 1,133,094 $6,000,000 $52,246,821 The portion of the Build America Bonds that are repaid with Gas Tax revenues will compete with operational needs for road maintenance. Otherwise, e xisting debt levels have no direct impact on current or future c ity operations. The most recent bond rating occurred in 2010 and the rating given by Moody’s was A a 2 and by AA by Standard and Poor’s . This is a two step increase over the city’s prior bond rating. Legal Debt Limit Oregon statu t es limit local government debt to 3% of true cash value. The debt limit calculations excludes debt related to assessments, therefore only outstanding general obligation debt is subject to the limit ation. The limit for FY 2011 -12 will be $217,807,537 based upon the estimated market value of $7,260,251,256 . Future Debt Limit At this time, the c ity intends to issue Water Revenue Bonds totaling approximately $44.15 million in FY 2011 -12 , $40 .0 million in FY 2013 -14 and $41.34 million in FY 2014 -15 . These are the amount included in the approved Water Financing Plan. The following tables and graphs depict future debt service requirements in total and by debt service type. These figures also present schedules detailing required debt service expenditures for FY 20 1 1 -1 2 . P AGE 310 - C ITY OF T IGARD D EBT S ERVICE S UMMARY Per Capita Debt Service General Obligation 61% Bancroft Improvement 5% Build America Bond 26% OECDD Loan 8% Debt Service by Type $- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 FY 2007-08 Actual FY 2008-09 Actual FY 2009-10 Actual FY 2010-11 Revised FY 2011-12 Adopted FY 2011-12 Debt Service GENERAL OBLIGATION BONDS- Paid from property taxes Parks Bond $1,294,536 Library Bond $901,414 $2,195,950 OREGON ECONOMIC COMMUNITY DEVELOPMENT DEPARTMENT (OECDD) LOAN- Paid from system development charges Cook Park $282,710 $282,710 BUILD AMERICA BOND Paid primarily from Gas Tax and City Gas Tax 2010 Transportation Bond $949,058 $949,058 ASSESSMENTS - BANCROFT IMPROVEMENT BONDS Paid primarily from special assessments 2002 69th Avenue LID 103,410 2003 Dartmouth Street LID 90,008 Additional Bond Calls 0 $193,418 $3,621,135 TOTAL 2011-12 DEBT SERVICE D EBT S ERVICE - P AGE 311 O UTSTANDING D EBT I SSUES Original Interest Original Principal Final Source of Issue Amount Rate Issue Date Outstanding Maturity Payment GENERAL OBLIGATION BONDS Library Bond $8,655,000 2.92%02/03/11 $8,655,000 06/30/23 Property Taxes Parks Bond $17,000,000 4.15%02/03/11 $17,000,000 06/01/31 Property Taxes TOTAL GENERAL OBLIGATION BONDS OUTSTANDING $25,655,000 OTHER DEBT Loans Outstanding Oregon Economic Community Development Dept. Parks System Development Cook Park $2,290,248 4.80%01/23/02 $270,925 01/01/12 Charges TOTAL OTHER DEBTS OUTSTANDING $270,925 SPECIAL ASSESSMENT BONDS 69th Avenue Local Improvement District Special Series 2002 $1,307,969 7.25%06/27/02 $661,223 01/01/20 Assessments Dartmouth Street Local Improvement District Special Series 2003 $1,947,678 3.90%12/03/03 $212,434 11/15/13 Assessments TOTAL SPECIAL ASSESSMENT BONDS $873,657 BUILD AMERICA BOND 2010 Transportation Bonds $7,250,000 4.35%06/21/10 $6,645,000 06/01/20 Gas Tax, City Gas Tax, TIF, & TDT TOTAL BUILD AMERICA BONDS $6,645,000 GRAND TOTAL - CITY OF TIGARD DEBT OUTSTANDING $33,444,582 P AGE 312 - C ITY OF T IGARD D EBT S ERVICE S CHEDULE G ENERAL O BLIGATION B OND —L IBRARY The Tigard Public Library general obligation bond was authorized by voters on May 21, 2002. The ini- tial bond was purchased in whole by the State of Oregon through the Oregon Economic and Commu- nity Development Department. In 2011, the initial bond was refunded at the same time that Tigard sold the Parks bond. The new issue saved Tigard property tax payers $863,289 over the remaining life of the bond. Bond proceeds were used to purchase a 14.7 acre parcel and construct a two -story 47,500 square foot library. The new library opened in August 2004. D EBT S ERVICE - P AGE 313 D EBT S ERVICE S CHEDULE G ENERAL O BLIGATION B OND —P ARKS The Tigard Parks general obligation bond was authorized by voters on November 2, 2010. Bond pro- ceeds will be used to purchase and develop parks in Tigard. At least 80 percent of the proceeds will be used to purchase land and the remainder can be used to develop parks. In addition, 10 percent can be used in Downtown Tigard in the same 80/20 split $17,000,000 2/3/2011 Original Issue True Interest Rate (TIC):4.148% Principal Outstanding as of July 1, 2011:$17,000,000 Payment Due Interest Rate Principal Due Interest Due Total Debt Service 12/1/2011 560,799 560,799 6/1/2012 3.00%395,000 338,738 733,738 12/1/2012 332,813 332,813 6/1/2013 3.00%625,000 332,813 957,813 12/1/2013 323,438 323,438 6/1/2014 3.00%645,000 323,438 968,438 12/1/2014 313,763 313,763 6/1/2015 3.00%665,000 313,763 978,763 12/1/2015 303,788 303,788 6/1/2016 3.00%685,000 303,788 988,788 12/1/2016 293,513 293,513 6/1/2017 3.00%705,000 293,513 998,513 12/1/2017 282,938 282,938 6/1/2018 3.00%725,000 282,938 1,007,938 12/1/2018 272,063 272,063 6/1/2019 4.00%750,000 272,063 1,022,063 12/1/2019 257,063 257,063 6/1/2020 4.00%780,000 257,063 1,037,063 12/1/2020 241,463 241,463 6/1/2021 4.00%810,000 241,463 1,051,463 12/1/2021 225,263 225,263 6/1/2022 4.00%845,000 225,263 1,070,263 12/1/2022 208,363 208,363 6/1/2023 4.00%875,000 208,363 1,083,363 12/1/2023 190,863 190,863 6/1/2024 4.00%910,000 190,863 1,100,863 12/1/2024 172,663 172,663 6/1/2025 4.25%950,000 172,663 1,122,663 12/1/2025 152,475 152,475 6/1/2026 4.25%990,000 152,475 1,142,475 12/1/2026 131,438 131,438 6/1/2027 4.50%1,030,000 131,438 1,161,438 12/1/2027 108,263 108,263 6/1/2028 4.50%1,075,000 108,263 1,183,263 12/1/2028 84,075 84,075 6/1/2029 4.75%1,125,000 84,075 1,209,075 12/1/2029 57,356 57,356 6/1/2030 4.75%1,180,000 57,356 1,237,356 12/1/2030 29,331 29,331 6/1/2031 4.75%1,235,000 29,331 1,264,331 Total $17,000,000 $8,861,386 $25,861,386 Amount Issued: Issue Date: P AGE 314 - C ITY OF T IGARD G ENERAL O BLIGATION B OND -S UMMARY D EBT S ERVICE - P AGE 315 D EBT S ERVICE S CHEDULE OECDD/C OOK P ARK E XPANSION This loan through the Oregon Economic and Community Development Department (OECDD) was obtained in January 2002 and used to complete a major capital project to expand and improve park facilities at Cook Park. Improvements included a butterfly garden, two picnic shelters, a new play- ground, four sports fields, and wetland viewing gazebo. The loan was secured by current and future park system development charges collected by the city. $2,290,248 1/23/2002 4.801% $270,925 Payment Due Interest Rate Principal Due Interest Due Total Debt Service 1/1/2012 4.35%270,925 11,785 282,710 Total $270,925 $11,785 $282,710 Original Issue True Interest Rate (TIC): Principal Outstanding as of July 1, 2011: Amount Issued: Issue Date: P AGE 316 - C ITY OF T IGARD OECDD/C OOK P ARK E XPANSION -S UMMARY D EBT S ERVICE - P AGE 317 D EBT S ERVICE S CHEDULE T IGARD T RANSPORTATION B UILD A MERICA B OND The Tigard Transportation Bond is a full faith and credit obligation authorized by Tigard City Council in Resolution #10 -26 and issued on June 21, 2010. The bond has a ten year repayment with an oppor- tunity to call the bond after seven years. The bond is a Build America Bond (BAB) which is part of the American Recovery and Reinvestment Act (ARRA). A BAB is a taxable bond for the bond holder. To make the bond attractive to the bond holder, the interest rate is higher than a tax -exempt bond; howev- er, the Federal Government reimburses to Tigard 35% of the interest paid by the City (the BAB Subsi- dy). The result for this Transportation Bond is that Tigard pays interest at 4.35% to the Bond Holder, but after the BAB Subsidy, the net debt service is lowered and the net interest cost to Tigard is only 2.83%. The bond was issued to pay for two projects - Burnham Street Reconstruction and the Greenburg Rd. / Main Street / Pacific Highway (Hwy 99) intersection. Of the $7.25 million in proceeds, $4.75 million (65.5%) is for the Burnham Street Reconstruction and will be repaid with Gas Tax Fund reve- nues. The remaining $2.5 million (34.5%) in bond proceeds is for the Greenburg Road / Main Street / Pacific Highway Intersection and will be repaid with City Gas Tax Fund revenues. Payments will be made proportionally from each fund. The projects are also eligible for Transportation Impact Fee Fund (TIF) and Transportation Development Tax Fund (TDT) revenues which may also be used for repayment. From a budgetary basis, Tigard will adopt the Total Debt Service payment, the BAB Subsi- dy will be proportionally returned to the contributing funds and the proceeds can be used within the limitations of those funds. One potential use will be to contribute to the following year's payments. Amount Issued:$7,250,000 Issue Date:6/21/2010 Original Issue True Interest Rate (TIC):4.350% Principal Outstanding as of July 1, 2011:$6,645,000 Payment Due Interest Rate Principal Due Interest Due Total Debt Service BAB Subsidy Net Debt Service Resulting Net Interest Rate 12/1/2011 4.35%144,528.75 144,528.75 50,585.06 93,943.69 2.83% 6/1/2012 4.35%660,000 144,528.75 804,528.75 50,585.06 753,943.69 2.83% 12/1/2012 4.35%130,173.75 130,173.75 45,560.81 84,612.94 2.83% 6/1/2013 4.35%680,000 130,173.75 810,173.75 45,560.81 764,612.94 2.83% 12/1/2013 4.35%115,383.75 115,383.75 40,384.31 74,999.44 2.83% 6/1/2014 4.35%695,000 115,383.75 810,383.75 40,384.31 769,999.44 2.83% 12/1/2014 4.35%100,267.50 100,267.50 35,093.63 65,173.87 2.83% 6/1/2015 4.35%715,000 100,267.50 815,267.50 35,093.63 780,173.87 2.83% 12/1/2015 4.35%84,716.25 84,716.25 29,650.69 55,065.56 2.83% 6/1/2016 4.35%735,000 84,716.25 819,716.25 29,650.69 790,065.56 2.83% 12/1/2016 4.35%68,730.00 68,730.00 24,055.50 44,674.50 2.83% 6/1/2017 4.35%755,000 68,730.00 823,730.00 24,055.50 799,674.50 2.83% 12/1/2017 4.35%52,308.75 52,308.75 18,308.06 34,000.69 2.83% 6/1/2018 4.35%780,000 52,308.75 832,308.75 18,308.06 814,000.69 2.83% 12/1/2018 4.35%35,343.75 35,343.75 12,370.31 22,973.44 2.83% 6/1/2019 4.35%800,000 35,343.75 835,343.75 12,370.31 822,973.44 2.83% 12/1/2019 4.35%17,943.75 17,943.75 6,280.31 11,663.44 2.83% 6/1/2020 4.35%825,000 17,943.75 842,943.75 6,280.31 836,663.44 2.83% Total $6,645,000 1,498,792.50 8,143,792.50 524,577.36 7,619,215.14 P AGE 318 - C ITY OF T IGARD T IGARD T RANSPORTATION B UILD A MERICA B OND S UMMARY FY 2011-12 debt service on the outstanding 2010 Transportation Build America Bond is as follows: Net Net 2011 Transportation BAB Date Interest Principal Total Interest Total Bond Payment 12/1/2011 $144,529 $0 $144,529 $93,944 $93,944 Bond Payment 6/1/2012 $144,529 $660,000 $804,529 $93,944 $753,944 Total 2011 Transportation BAB Debt Service $289,058 $660,000 $949,058 $187,887 $847,887 D EBT S ERVICE - P AGE 319 D EBT S ERVICE S CHEDULE A SSESSMENT -69 TH A VENUE L OCAL I MPROVEMENT D ISTRICT The 69th Avenue Local Improvement District (LID) was finalized in 2002. This Bancroft Bond was issued to retire the interim financing used for construction of the LID. The source of revenue for repayment of the bonds are payments on installment contracts executed by benefited property own- ers. LID assessments are secured by liens on the benefited property. $1,307,969 6/27/2002 7.250% $661,223 Payment Due Interest Rate Principal Due Interest Due Total Debt Service 7/1/2011 7.25%27,600 24,105 51,705 1/1/2012 7.25%28,600 23,105 51,705 7/1/2012 7.25%29,600 22,068 51,668 1/1/2013 7.25%30,700 20,995 51,695 7/1/2013 7.25%31,800 19,882 51,682 1/1/2014 7.25%33,000 18,729 51,729 7/1/2014 7.25%34,100 17,533 51,633 1/1/2015 7.25%35,400 16,297 51,697 7/1/2015 7.25%36,700 15,014 51,714 1/1/2016 7.25%38,000 13,683 51,683 7/1/2016 7.25%39,400 12,306 51,706 1/1/2017 7.25%40,800 10,878 51,678 7/1/2017 7.25%42,300 9,399 51,699 1/1/2018 7.25%43,800 7,865 51,665 7/1/2018 7.25%45,400 6,277 51,677 1/1/2019 7.25%47,100 4,632 51,732 7/1/2019 7.25%48,700 2,924 51,624 1/1/2020 7.25%28,223 1,159 29,382 Total $661,223 $246,850 $908,073 Original Issue True Interest Rate (TIC): Principal Outstanding as of July 1, 2011: Amount Issued: Issue Date: P AGE 320 - C ITY OF T IGARD D EBT S ERVICE S CHEDULE A SSESSMENT -D ARTMOUTH L OCAL I MPROVEMENT D ISTRICT - 2003 The Dartmouth Local Improvement District was finalized in 1998; however, two property owners had contested the assessment amounts. In September 2003, the court ruled in favor of the City of Tigard and the assessments stood. The source of revenue for repayment of the bonds are payments on in- stallment contracts executed by benefited property owners. LID assessments are secured by liens on the benefited property. D EBT S ERVICE - P AGE 321 A SSESSMENT -B ANCROFT IMPROVEMENT BONDS S UMMARY P AGE 322 - C ITY OF T IGARD City of Tigard | A DOPTED B UDGET | FY 2 01 1 –2 0 1 2 F UND SUMMARIES - P AGE 323 F UND SUMMARIES INTRODUCTION The following section shows a detailed listing of the resources and requirements for each fund used by the city. Explanatory narratives are provided for each of the funds. In addition to active funds, the city also shows three new funds, a Parks Bond Fund, Water Debt Ser- vice Fund, and a Transportation CIP Fund. In FY 2011 -12, the city will use the following funds Fund Type Fund Name General General Fund Enterprise Sanitary Sewer Fund Stormwater Fund Water Fund Water CIP Fund Water Debt Service Fund Water Quality/Quantity Fund Water SDC Fund Special Revenue Building Fund City Gas Tax Fund Criminal Forfeiture Fund Electrical Inspection Fund Gas Tax Fund Library Donations & Bequests Fund Parks Bond Fund Parks SDC Fund Street Maintenance Fund Traffic Impact Fee Transportation Development Tax (TDT) Fund Urban Forestry Fund Underground Utility Fund Debt Service Bancroft Debt Services Fund General Obligation Debt Service Fund Capital Projects Facilities - Capital Projects Fund Parks Capital Fund Transportation CIP Fund Internal Service Central Services Fund Fleet/Property Management Fund Insurance Fund P AGE 324 - C ITY OF T IGARD G ENERAL F UND The General Fund is used to account for the city’s revenues and expenditures that are of a general na- ture and therefore not required to be recorded in another fund. General Fund revenues include prop- erty taxes, fees and charges for services, franchise fees, fines, interest, revenue from other agencies, and transfers from other funds. Expenditures out of the General Fund include programmatic expenses such as Police, Library, Community Development, and Parks, as well as capital improvement transfers. In total, the General Fund has, and continues to see very limited growth in revenues. Some revenue streams may remain constant, such as property taxes, while others are expected to remain significantly flat, such as planning fees. Property taxes constitute the largest single source of revenue for the Gen- eral Fund. Revenues received from other agencies include Hotel/Motel Tax, Washington County Co- operative Library Services (WCCLS) distribution share, Liquor Tax, 911 Tax, Cigarette Tax, State Rev- e n u e S h a r i n g d i s t r i b u t i o n , a n d m i s c e l l a n e o u s o t h e r I n t e r g o v e r n m e n t a l R e v e n u e . F r a n c h i s e F e e s a r e paid by utility entities for their use of public right -of -ways and are based on a percentage of their gross revenues collected within the city. Fiscal Year 2010 -11 shows a decline in collections of electrical fran- chise fees. The downturn in the economy has led to an increase in vacant buildings which leads to less electrical usage. Therefore, the FY 2011 -12 budget reflects a decrease in electrical franchise fees. The city anticipates that General Fund revenues will continue to remain largely flat in the next couple of fiscal years. As the City of Tigard, along with the State of Oregon and the nation, begin to slowly climb out of the economic downturn, especially in development and construction, revenues will begin to see slight increases. Requirements in the General Fund show a slight inflationary increase in fiscal year 2011 -12 budget when compared to the previous fiscal year budget. With the anticipation of limited growth in re- sources in the General Fund over the next couple of years, the city will continue to provide services at levels that were obtained after significant reductions made in fiscal year 2009 -10. While many of these reductions were largely felt internally within the city, a few of the reductions, as found in the divisional narratives, have rippled outward and were felt to some degree by city residents. F UND SUMMARIES - P AGE 325 G ENERAL F UND P AGE 326 - C ITY OF T IGARD G ENERAL F UND F UND SUMMARIES - P AGE 327 G ENERAL F UND P AGE 328 - C ITY OF T IGARD G ENERAL F UND F UND SUMMARIES - P AGE 329 E NTERPRISE FUND -S ANITARY S EWER Funds collected in the Sanitary Sewer Fund are applied to the operation, maintenance, repair, and up- grade of the city’s sanitary sewer infrastructure. Within Washington County, a special district, Clean Water Services (CWS), provides stormwater and sanitary sewer treatment and sets all fees related to these services. CWS contracts with the City of Tigard for billing and collection of sanitary sewer charges within the city’s limits and to provide stormwater system maintenance within the city. Sanitary Sewer Connection Fees are charged to developers and property owners upon connection to the city’s sewer system. The amount of this fee is determined by CWS each year. CWS also sets the base monthly sewer service charges. A customer’s monthly sewer charge is comprised of the base charge plus a consumption charge which is based on the customer’s average water consumption dur- ing the previous winter. The city retains approximately 16% (11% in the Sanitary Sewer Fund and 5% in the General Fund) of these revenues and sends the remaining 84% to CWS each month. In Fiscal Year 2009 -10 the city brought the methodology used to calculate the Sanitary Sewer Fran- chise Fee more in line with the spirit of the ordinance. As a result, an additional $300,000 will be paid to the General Fund each year. P AGE 330 - C ITY OF T IGARD E NTERPRISE FUND -S ANITARY S EWER F UND SUMMARIES - P AGE 331 Funds collected in the Stormwater Fund are applied to the operation, maintenance, repair, and upgrade of the city’s stormwater facilities. Within Washington County, a special district, Clean Water Services (CWS), provides stormwater and sanitary sewer treatment and sets all fees related to these services. CWS contracts with the City of Tigard for billing and collection of stormwater charges within the city’s limits and to provide stormwater system maintenance within the city. The city currently retains 75% of the stormwater fees collected by the city. The city also assesses a $2.00 per month surcharge for stormwater system maintenance. E NTERPRISE FUND -S TORMWATER P AGE 332 - C ITY OF T IGARD The City of Tigard manages the operation of the water system through intergovernmental agreements with the cities of King City and Durham and with the Tigard Water District. The Water Fund is the primary operating fund for the water system and accounts for all costs associated to the water opera- tion, including ongoing maintenance. The Water Fund also transfers to the Water CIP Fund for vari- ous capital improvement projects. In 2008 Tigard entered into a water partnership with the City of Lake Oswego on a long -term water source. The two cities agreed to jointly:  Expand Lake Oswego's water treatment facility.  Replace the existing river intake.  Construct a reservoir.  Upsize transmission lines.  Develop existing water rights and permits on the Clackamas River. The improvements would allow Tigard and Lake Oswego to produce up to 38 million gallons of water per day. Of this amount, Tigard would receive between 14 and 20 million gallons per day. Water is anticipated to begin flowing from the new facility by 2016. Developing a new water source will be costly. In October 2010, City Council approved the Water Rate Study that was completed by Red Oak Consulting. Based on this water financing plan, Tigard's share of the improvements and cost to buy into Lake Oswego's existing system is estimated to be $151 mil- lion E NTERPRISE FUND -W ATER F UND SUMMARIES - P AGE 333 E NTERPRISE FUND -W ATER P AGE 334 - C ITY OF T IGARD E NTERPRISE FUND -W ATER F UND SUMMARIES - P AGE 335 E NTERPRISE FUND -W ATER CIP The Water CIP Fund accounts for major capital improvement projects for the water system. Re- sources in this fund consist largely of transfers from the Water Fund and borrowing proceeds. In Fis- cal Year 2011 -12, the fund sees a large influx of $44.1 million dollars from water revenue bonds. The- se dollars will be utilized to fund the city’s long term water project. In 2008 Tigard entered into a water partnership with the City of Lake Oswego on a long -term water source. The two cities agreed to jointly:  Expand Lake Oswego's water treatment facility.  Replace the existing river intake.  Construct a reservoir.  Upsize transmission lines.  Develop existing water rights and permits on the Clackamas River. The improvements would allow Tigard and Lake Oswego to produce up to 38 million gallons of wa- ter per day. Of this amount, Tigard would receive between 14 and 20 million gallons per day. Water is anticipated to begin flowing from the new facility by 2016. In October 2010, City Council approved the Water Rate Study that was completed by Red Oak Con- sulting. Based on this water financing plan, Tigard's share of the improvements and cost to buy into Lake Oswego's existing system is estimated to be $151 million. Bonding revenues will be received in the Water CIP Fund and annual bond payments in subsequent years will show in the Water Debt Service Fund. Funding for the bond payments will come from fu- ture water rate increases and will be transferred by the Water Fund into the Water Debt Service Fund. P AGE 336 - C ITY OF T IGARD E NTERPRISE FUND -W ATER CIP F UND SUMMARIES - P AGE 337 E NTERPRISE FUND -W ATER D EBT S ERVICE The Water Debt Service Fund was established in fiscal year 2011 -12 and accounts for revenues and debt service payments related to anticipated issuance of water revenue bonds in Fall 2011. The Fund also maintains a fund balance to provide debt service coverage. P AGE 338 - C ITY OF T IGARD E NTERPRISE FUND -W ATER Q UALITY /Q UANTITY The Water Quality/Quantity Fund is a subsidiary fund of the Stormwater Fund. The city charges Wa- ter Quality/Quantity fees, which are established by Clean Water Services, on certain development ac- tivities in the city. Revenues collected are used to fund offsite stormwater system improvements and capacity improvements to the system. Revenues, as they are tied directly to development activities, fluctuate to a degree and as such have been down over the past few years. In addition to a slowdown in development activity, some developers are choosing to build their own on -site stormwater deten- tion facilities rather than pay the fee. F UND SUMMARIES - P AGE 339 E NTERPRISE FUND -W ATER SDC The Water System Development Charge (SDC) Fund is a subsidiary of the Water Fund. Water SDCs are charged when new water meters are sold and installed. The total purpose of the Water SDC is to fund future capacity -increasing projects and pay a reimbursement fee for existing assets. In October 2010, the city completed its update of the Water SDCs. The rate increase was implemented in January 2011. The last update to the charge occurred in 2000. As SDCs are tied to development activities they tend to fluctuate to a degree and as such have been down over the past few years. The city anticipates that, outside of any increases as a result of the study, revenues will continue to be lower than historical figures over the coming years. P AGE 340 - C ITY OF T IGARD The Building Fund is used to track building permit revenues and expenditures. All activities of the city’s Building Division are appropriated in this fund. The Building Division, a part of the Community Development Department, is responsible for reviewing plans, issuing permits, and inspecting construc- tion to ascertain compliance with the State of Oregon specialty codes. The specialty codes include building, fire, plumbing, mechanical, electrical codes and other State of Oregon rules and statutes. The division enforces requirements of the Tigard Municipal Code and Community Development Codes and ordinances. Revenues collected in the Building Fund are dedicated to supporting the divisional activities and related administrative expenses. The amount of the charge for a building -related fee is detailed in ORS 455.210 and OAR 918 -020 -0220. In 2009, staff conducted a detailed analysis of the City’s building - related fees. This analysis resulted in the adoption of a new fee schedule that is intended to support a full -service Building Division. S PECIAL REVENUE FUND -B UILDING F UND SUMMARIES - P AGE 341 S PECIAL REVENUE FUND -B UILDING P AGE 342 - C ITY OF T IGARD The City Gas Tax Fund is used to account for revenues generated from and projects funded by Tigard’s local gas tax. The tax was developed by a citizen task force in 2006 as a means to fund im- provements to the Greenburg Road/Pacific Highway/Main Street intersection. In 2009, the decision was made by the Tigard City Council to have the tax remain in effect permanently as a source to fund other future transportation project needs. With the completion of the Greenburg Road/Pacific High- way/Main Street intersection project in December 2010, the Tigard Transportation Advisory Commit- tee (TTAC) will advise council of potential transportation projects that can be funded by this revenue. S PECIAL REVENUE FUND -C ITY G AS T AX F UND SUMMARIES - P AGE 343 S PECIAL REVENUE FUND – C RIMINAL F ORFEITURE The Criminal Forfeiture Fund records revenues received from the seizure of assets used in criminal activity. In 2000 the voter -passed Ballot Measure 3, which limited the ability of police agencies to seize assets, was ruled unconstitutional. Therefore the city established this fund in order to account for the seizures. A transfer out to the General Fund is established in FY 2011 -12 in order for the Tigard Po- lice Department to have as -needed access to fund allowable police and drug enforcement activities. P AGE 344 - C ITY OF T IGARD The Electrical Inspection Fund records revenues related to electrical permits and plan check fees in the city. The fees are established by single or multi -family dwelling units or by type of service, and are established following the guidelines detailed in ORS 455.210 and OAR 918 -020 -0220. These guide- lines specify that the fees charged are necessary and are to be set at a level that reasonably recovers costs. In 2009 staff conducted a detailed analysis of the City’s electrical inspection -related fees. This analysis resulted in the adoption of a new fee schedule that will be able to support an Electrical In- spection program within the Building Division. S PECIAL REVENUE FUND – E LECTRICAL I NSPECTION F UND SUMMARIES - P AGE 345 S PECIAL REVENUE FUND – G AS T AX The Gas Tax Fund records shared revenues from the State of Oregon and Washington County taxes on the sale of motor vehicle fuel. The city utilizes these revenues to fund various construction, recon- struction, improvements, repairs, maintenance, and operation of public highways, roads, and streets. These monies may also be used for street lighting and cleaning, storm drainage, traffic control devices, and administrative costs. State of Oregon gas tax and vehicle registration fees are shared with cities and counties throughout the State using a formula set by the legislature. The city is anticipating an increase in gas tax revenues from the State due to some changes at the State level in 2009. Fuel consumption, however, is anticipated to continue to remain at lower than historical levels largely due to the higher cost per gallon for fuel, more fuel -efficient cars, and because of economic conditions. Washington County collects one cent per gallon for all motor vehicle fuel sold within the county. Por- tions of this collection are distributed to cities within the county according to a formula set by the county. As a result of borrowing funds for the Burnham Street Improvement Project in FY 2009 -10, the FY 2011 -12 budget reflects continued debt service payments in this fund. This payment is anticipated to continue over the next ten years. P AGE 346 - C ITY OF T IGARD S PECIAL REVENUE FUND – G AS T AX F UND SUMMARIES - P AGE 347 S PECIAL REVENUE FUND – L IBRARY D ONATIONS & B EQUESTS The Library Donations and Bequest Fund (formally the Library Fund), was created in the 2008 -09 fis- cal year to account for the remaining amounts from several donations and bequests that were afforded the Library for various special projects and artwork. A transfer to the General Fund is appropriated in FY 2011 -12 for any of these projects or artwork that arise. P AGE 348 - C ITY OF T IGARD S PECIAL REVENUE FUND – P ARKS B OND In November 2010, voters approved a $17 million parks bond for purchase of land and greenspaces to be used for parks. A total of 80% of the proceeds can be used for land acquisitions with the re- maining 20% to be utilized for park improvements. Funding for land acquisitions and improvements will come from the Parks Bond Fund to the Parks Capital Fund. F UND SUMMARIES - P AGE 349 S PECIAL REVENUE FUND – P ARKS SDC The Parks System Development Charge (SDC) Fund was established to track the revenues and ex- penditures associated with the collection of the Parks SDCs. Parks SDCs are charged when a building permit is issued for any new residential, multi -family, or commercial construction. Funds collected are used for the acquisition, development, and expansion of additional recreation spaces and facilities that are included in the city’s Parks Master Plan. P AGE 350 - C ITY OF T IGARD S PECIAL R EVENUE FUND – S TREET M AINTENANCE F EE The Street Maintenance Fee Fund was established to track the revenues and expenditures associated with the Street Maintenance Fee that was approved through Ordinance No. 03 -10 by the City Council in November 2003 and updated with revised fees in January 2010. The Street Maintenance Fee is a monthly fee designed specifically for the maintenance of existing roads in Tigard. Monthly fees are collected from both residential and non -residential customers and are billed and collected through the city's utility billing system. In January 2011, the City of Tigard changed its processing of utility bills from a bi -monthly schedule to a monthly schedule. The fee provides a stable source of revenue designated for the use in the maintenance of existing streets and right -of -way maintenance with the city. This includes applying new street surfaces such as slurry seals, pavement overlays, and repairing deteriorating streets. F UND SUMMARIES - P AGE 351 S PECIAL R EVENUE FUND – S TREET M AINTENANCE F EE P AGE 352 - C ITY OF T IGARD S PECIAL R EVENUE FUND – T RAFFIC I MPACT F EE The Traffic Impact Fee (TIF) Fund was implemented to account for the revenues and expenditures associated with the Traffic Impact Fee which was a charge on new development assessed by Wash- ington County, but collected by cities. The TIF was replaced by the Transportation Development Tax on July 1, 2009 and will be phased out over an approximately three year period. The TIF is based upon the number of trips per day that each type of development is estimated to generate. The County maintains a table of standards for all possible uses. The standard trips per day for each development are multiplied by the rate per trip to determine the amount of the TIF. Fund revenues may only be used for highway and transit capital improvements that provide additional ca- pacity to major transportation systems and to pay the costs of administering the program. F UND SUMMARIES - P AGE 353 S PECIAL R EVENUE FUND – T RANSPORTATION D EVELOPMENT T AX The Transportation Development Tax (TDT) Fund accounts for a Washington County Tax approved by the voters in November 2008 that is administered and collected by the City of Tigard. The tax went into effect on July 1, 2009, replacing the Traffic Impact Fee (TIF) program. Like TIF, TDT is assessed on new development to help provide funds for the increased capacity trans- portation improvements needed to accommodate the additional vehicle traffic and demand for transit facilities generated by that development. It provides funds for these capacity improvements to county and city arterials, certain collectors, and certain state and transit facilities as listed in the County’s Capi- tal Improvements Project List. The TDT is categorized as an Improvement Fee: Revenue must be dedicated to capital improvements that expand capacity and may not be used for maintenance, repair, or other non -capital improvements. In fiscal year 2009 -10, the Washington County Board of Commissioners granted a discount to develop- ers. This has negatively impacted the city’s revenues in this fund. P AGE 354 - C ITY OF T IGARD S PECIAL REVENUE FUND – U RBAN F ORESTRY The Urban Forestry Fund was established to account for funds collected from developers in lieu of preserving trees. Monies collected in this fund can be used by the city to plant trees in public rights -of - way and other public properties. F UND SUMMARIES - P AGE 355 S PECIAL R EVENUE FUND – U NDERGROUND U TILITY The Underground Utility Fund was established to record funds that are received in lieu of under- grounding utilities. The collections in this fund are used primarily to support various capital improve- ment projects that require underground utility components. P AGE 356 - C ITY OF T IGARD The Bancroft Debt Service Fund accounts for revenues and debt service payments related to two local improvement districts (LID) with the City. In July of 2002, the city sold bonds for the 69 th Avenue LID project. In December of 2003, the city then sold bonds to finance the remaining portion of the Dartmouth LID project, which had been in litigation and was decided in favor of the city. Revenues are derived from assessments on properties that participate within these districts. The reserve for future expenses is to be used to protect against fluctuations and non -payment of assessments by property owners and to provide cash flow to pay debt service as scheduled. D EBT S ERVICE FUND – B ANCROFT D EBT S ERVICES F UND SUMMARIES - P AGE 357 D EBT S ERVICE FUND – G ENERAL O BLIGATION D EBT S ERVICE The General Obligation Debt Service Fund was created to account for revenues and debt service pay- ments related to the 2002 voter -approved bond measure for a new library. The amount of the bond was $13 million and was sold to the Oregon Economic and Community Development Department which allowed the city to obtain a more favorable interest rate. Property taxes collected through the levy will be used to repay this debt and ending fund balance is used to protect against fluctuations in property tax payments and provide cash flow to match collections and payments. P AGE 358 - C ITY OF T IGARD The Facilities Capital Projects Fund is used largely for general construction, reconstruction, replace- ment, and expansion related to the city’s facilities. Transfers into this Fund come from the various other funds that will benefit directly from these projects. The fund is currently building a reserve to construct a new Public Works facility with transfers from the General Fund, Water Fund, Sanitary Sewer Fund, Stormwater Fund and Gas Tax Fund supporting this reserve C APITAL PROJECTS FUND – F ACILITIES C APITAL P ROJECTS F UND SUMMARIES - P AGE 359 C APITAL PROJECTS FUND – F ACILITIES C APITAL P ROJECTS P AGE 360 - C ITY OF T IGARD C APITAL PROJECTS FUND – P ARKS C APITAL The Parks Capital Fund was established to track various parks and greenspaces projects. Revenues accounted for in the Parks Capital Fund include various federal and state grants, intergovernmental revenues, and transfers in. A transfer of proceeds from the Parks Bond Fund is reflected in the FY 2011 -12 budget for land acquisitions and development . F UND SUMMARIES - P AGE 361 C APITAL PROJECTS FUND – P ARKS C APITAL P AGE 362 - C ITY OF T IGARD The Transportation CIP Fund was established in fiscal year 2011 -12 in order to track all capital im- provement projects that are funded with transportation revenues including Gas Tax, Traffic Impact Fees (TIF), and Transportation Development Tax (TDT). C APITAL PROJECTS FUND – T RANSPORTATION CIP F UND SUMMARIES - P AGE 363 I NTERNAL SERVICE FUND – C ENTRAL S ERVICES The Central Service Fund was established to track the revenues and expenditures of the central ad- ministrative functions in the city. The resources for this fund are largely interdepartmental charges to city funds. The basis for these allocated costs is reviewed each year based on anticipated use or bene- fits that are provided to other city departments or divisions. P AGE 364 - C ITY OF T IGARD I NTERNAL SERVICE FUND – C ENTRAL S ERVICES F UND SUMMARIES - P AGE 365 I NTERNAL SERVICE FUND – F LEET /P ROPERTY M ANAGEMENT The Fleet/Property Management Fund tracks the revenues and expenditures of the Fleet Maintenance Division and Property Management Division. The resources for this fund are largely interdepartmental charges to other city funds that are based on a cost allocation plan that is revised each year. The cost allocation plan is based on anticipated use of benefits that are provided to other city departments or divisions. P AGE 366 - C ITY OF T IGARD I NTERNAL S ERVICE F UND – I NSURANCE This is an internal service fund established to track worker’s compensation and other insurance related revenues as well as limited expenditures. Expenditures in this fund are for self -insured retentions on losses unfunded by traditional insurance policies, management of insurance/claim activity and reduc- tion of significant liability exposures. A PPENDIX - P AGE 367 S CHEDULE OF APPROPRIATIONS P AGE 368 - C ITY OF T IGARD S CHEDULE OF APPROPRIATIONS A PPENDIX - P AGE 369 S CHEDULE OF APPROPRIATIONS P AGE 370 - C ITY OF T IGARD S CHEDULE OF APPROPRIATIONS A PPENDIX - P AGE 371 S CHEDULE OF APPROPRIATIONS P AGE 372 - C ITY OF T IGARD S CHEDULE OF APPROPRIATIONS A PPENDIX - P AGE 373 S CHEDULE OF APPROPRIATIONS P AGE 374 - C ITY OF T IGARD S CHEDULE OF APPROPRIATIONS A PPENDIX - P AGE 375 S CHEDULE OF APPROPRIATIONS P AGE 376 - C ITY OF T IGARD S CHEDULE OF APPROPRIATIONS A PPENDIX - P AGE 377 F INANCIAL P OLICIES The City of Tigard has an important responsibility to its citizens to carefully account for public funds, manage municipal finances wisely and plan adequate funding for services and facilities desired and needed by the public. The city has established a formal set of financial policies to ensure that the pub- lic’s trust is upheld. With these financial policies, the city has established the framework under which it conducts its financial affairs, ensuring that it is, and will continue to be, capable of funding and provid- ing outstanding local government services. The goals of Tigard’s financial policies are as follows: • Enhance City Council’s policy -making ability by providing accurate information on program and operating costs. • Assist sound management of the city government by providing accurate and timely information on current and anticipated financial conditions. • Provide sound principles to guide important decisions of the council and management that have significant financial impact. • Set forth operational principles which minimize the cost and financial risk of local government consistent with services desired by the public. • Employ revenue policies that prevent undue or unbalanced reliance on any one source, distribute the cost of municipal services fairly and provide adequate funds to operate desired programs. • Provide and maintain essential public facilities, utilities, infrastructure and capital equipment. • Protect and enhance the city’s credit rating. • Ensure that all surplus cash is prudently invested in accordance with the investment policy adopted by the council to protect city funds and realize a reasonable rate of return. The city uses the following financial policies to guide its financial affairs: Revenue Policy • Maintain a diversified and stable revenue system to shelter the government from short -term fluctu- a t i o n s i n a n y o n e -r e v e n u e s o u r c e . • One -time revenues will be used only for one -time expenditures. The city will avoid using tempo- rary revenues to fund mainstream services. • All revenue forecasts shall be conservative. • Regular reports comparing actual to budgeted revenues will be prepared by the Finance Depart- ment and presented to the City Manager. • All city funds shall be safely invested to provide a sufficient level of liquidity to meet cash flow needs and to provide the maximum yield possible in that order. One hundred percent of all idle cash will be continuously invested. P AGE 378 - C ITY OF T IGARD F INANCIAL P OLICIES • The city will maintain an unallocated fund balance or retained earnings equal to or greater than two months of general operating expenditures or expenses. This reserve will be calculated based on the adopted annual operating budget of the city. These funds will be used to avoid cash -flow interrup- tions, generate interest income, reduce need for short -term borrowing and assist in maintaining an investment grade bond rating capacity. The city will also end each fiscal year with an adequate fund balance in the General Fund to pro- vide resources necessary for cash flow from July 1 until property taxes are received in November. Operating Budget Policy • Regular reports comparing actual to budgeted expenditures will be prepared by the Finance De- partment and distributed to the City Manager. • Departmental objectives will be integrated into the city’s annual budget and monthly departmental reports. • Before the city undertakes any agreements that create fixed costs, both operating and capital, the implications of such agreements will be fully determined for current and future years. • All non -salary benefits, such as social security, pension and insurance will be estimated and their impact on future budgets assessed annually. • Cost analysis of salary increases will include the effect of such increases on the city’s share of relat- ed fringe benefits. • The city will annually submit documentation to obtain the Award for Distinguished Budget Presentation from the Government Finance Officers Association (GFOA). Capital Improvement Policy • Systems development charges (SDCs) will be used for infrastructure capacity expansion and im- provements, including in -house engineering and design. • Future operating costs associated with new capital improvements will be projected and included in the operating budget forecast. • The city will determine and use the most effective and efficient method for financing all new capi- tal projects. • Special funds dedicated for capital improvements will be segregated in the accounting system and used only for the intended capital purposes. Fixed Asset Policy • The city will control capital assets by assigning accountability and responsibility to specific depart- ments. • The city will provide documentation of equipment loss to the insurance companies in the event of losses due to fire or theft. • The city will maintain and provide information such as depreciation and obsolescence needed for city’s enterprise funds (Water, Sanitary Sewer and Stormwater). A PPENDIX - P AGE 379 F INANCIAL P OLICIES The city will provide budget information for capital replacements and additions. • The city will maintain inventories of all city equipment to avoid duplication of equipment. • The city will maintain a list of all assets and their values to ensure the capital assets are properly insured. Accounting Policy • The city will maintain high standards of accounting. Accounting principles generally accepted in the United States of America (GAAP) will be used in accordance with the standards developed by the Governmental Accounting Standards Board (GASB) and endorsed by the Government Fi- nance Officers’ Association (GFOA). • An independent annual audit will be performed by a public accounting firm, which will issue an official opinion on the annual financial statements and management letter detailing areas that need improvement. • Full disclosure will be provided in the financial statements and bond representations. • Financial systems will be maintained to monitor expenditures and revenues on a monthly basis, with thorough analysis. • The accounting system will provide monthly information about cash position and investment per- formance. • The city will annually submit documentation to obtain the Certificate of Achievement for Excel- lence in Financial Reporting from GFOA. Debt Policy • Capital projects financed through bond proceeds shall be financed for a period not to exceed the useful life of the project. • Long term borrowing will be confined to capital improvements too large to be financed from cur- rent revenues. • Issuance of assessment bonds will be pursued to finance local improvement districts approved by City Council. • Bond anticipation notes will be used as needed to finance construction of local improvements. Single Owner Local Improvement District Policy Local improvement districts (LIDs) are usually initiated either by the City Council or by written re- quest of the property owners owning at least fifty percent of the property benefited by the local im- provement. On occasion, the city receives requests to form a LID in which there would be only one property owner involved. City Council has established a formal policy for single owner LIDs. The following are the conditions that must be met before council will consider allowing the LID to be formed. • The property is zoned and proposed to be used for industrial, commercial or office development. • The applicant demonstrates the “Public Purpose” involved, which may include the creation of jobs in the community. P AGE 380 - C ITY OF T IGARD F INANCIAL P OLICIES  The applicant demonstrates that the risk to the city government or the general taxpayer is mini- mized. As a guideline, the City Council will request the following: a. That the applicant provide an appraisal of the property affected, such appraisal being done by an appraiser acceptable to the City Manager. b. That the amount to be assessed against the property not exceed 25% of the appraised value of the land only, excluding any improvements to the property. c. That financial documents be provided as required to the City Manager which can demonstrate that the property owner has the financial ability to pay the assessments levied on the property. INVESTMENT POLICY The following Investment Policies are intended to meet the requirements of ORS 294.035 and to pro- vide the framework within which City of Tigard funds may be invested. Authority The Finance and Information Services Director shall serve as the investment officer of the city. The investment officer is responsible for ensuring that funds are invested so as to make necessary cash available to meet current obligations and to invest excess cash in accordance with ORS 294.035 through ORS 294.047 and these Investment Policies. The Finance and Information Services Director may assign the delegation of authority to persons re- sponsible for investment transactions. This person would then act as investment officer with prior approval of the City Manager. Scope These Investment Policies apply to all excess cash related to all activities and funds under the direction of the Tigard City Council. Cash accumulations related to bond proceeds or short -term borrowing is included unless more restrictive state or federal regulations are applicable. Excess cash shall be defined as all liquid assets not necessary to meet current obligations. Deferred Compensation Deferred compensation funds are placed with a third party for investment and are therefore excluded from the restrictions set forth in these guidelines. Objectives The objectives of these policies are to provide for the preservation of city assets, the availability of such assets to meet obligations as they come due, and to provide for a reasonable rate of return on those assets, in that order. A PPENDIX - P AGE 381 F INANCIAL P OLICIES Prudent Investor Investments shall be made under the prudent investor’s rule, which states, “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for invest- ment, considering the probable safety of their capital as well as the probable income to be derived.” Internal Controls The investment officer shall maintain a system of written internal controls, which will be reviewed an- nually by the independent auditor. Cash Flow Analysis The investment officer shall maintain a historical cash flow record and a cash flow projection, which extends twelve months into the future. The projection shall be reviewed and updated on a regular ba- sis. No fixed maturity securities shall be purchased unless the cash flow projection indicates that the funds invested will not be required until the maturity date of the investment. Bond Proceeds Surplus funds resulting from debt issuance shall be considered as a separate portfolio and shall not be restricted by the maturity and instrument diversification section of these policies. Such funds may be invested for periods exceeding 18 months and up to 60 months. Such maturities shall coincide with the projected cash flow needs resulting from the projected construction schedule. Diversification The investment officer will diversify the general portfolio to avoid unreasonable risks within the fol- lowing parameters: • Maturity Diversification Investment maturities shall be scheduled to coincide with projected cash flow needs. Thirty percent of the portfolio will mature in less than 90 days. No investments will be made for a period to ex- ceed 18 months unless: This investment policy has been submitted to the Oregon Short Term Fund Board (OSTF) for comment prior to being approved by council and complies with the requirements of ORS 294.135. In this case, the maximum maturity shall be defined in policy. If the funds are being accumulated for a specific purpose, including future construction projects, and upon approval of the council, the maximum maturity date matches the anticipated use of the funds (ORS 294.135(1)(b)). P AGE 382 - C ITY OF T IGARD F INANCIAL P OLICIES If this investment policy has been submitted for review by the OSTF Board as specified above and in accordance with ORS 294.135(1)(a), debt service reserves may be invested to mature not longer than five years. Otherwise, debt service reserves shall not be invested to a maturity date exceeding one year as specified under ORS 294.135(3). The investment officer may make investments having maturity longer than 18 months, but not more than 36 months, with the exception of bond proceeds. The city’s investment portfolio shall not con- tain more than 20% of the total dollar value of its investments with maturities between 18 months and 36 months. • Instrument Diversification Certificates of Deposit 25% maximum Corporate Indebtedness 35% maximum Bankers Acceptance 50% maximum Treasury/Agency Securities 90% maximum Local Government Investment Pool 100% maximum Demand Deposits 10% maximum Lawfully issued Debt Obligations of the States of Oregon, Washington, Idaho and California and political subdivisions of those states 25% maximum • Institution Diversification Bank liabilities with any one qualified financial institution shall not exceed 20 percent of the port- folio. Bank liabilities of any one qualified financial institution shall not exceed one percent of the institution’s total assets. Investment in Corporate Indebtedness shall not exceed 5 percent of the portfolio in any one Oregon corporate entity meeting the rating requirements of P -2/A -2 or bet- ter, or 5 percent of the portfolio in any one corporate entity outside the State of Oregon (ORS 294.035 section C). For purposes of these guidelines, the state local government investment pool (LGIP) shall be considered to have a one -day liquidity. Selection of Investment Instruments Investments shall be made by the investment officer through the exercise of his/her judgment after requesting quotes from financial institutions. Selections will be made so as to provide the highest rate of return within the parameters of these policies. A PPENDIX - P AGE 383 F INANCIAL P OLICIES Qualified Institutions The investment officer shall maintain a list of all authorized institutions that are approved for invest- ment purposes. The investment officer will request, analyze and keep on file periodic financial state- ments and related information to satisfy himself/herself as to the creditworthiness of each institution on the approved list. Reporting The investment officer shall prepare an investment activity report at the end of each month for review by the City Manager. Amendments These investment policies may be amended at the request of the investment officer, the City Manager, or members of City Council. Such amendments shall be approved by the City Council in the same manner as the investment policies. Authorized Investment Instruments The investment officer shall invest the money of the city only in qualifying investments according to guidelines in ORS 294.035. These investments include: • Demand deposits with approved institutions. • Deposits in the Oregon Local Government Investment Pool. • Certificates of Deposit with Oregon banks. • Banker’s acceptances. • Qualifying corporate indebtedness not to exceed 5% of the portfolio on any one corporation. • Lawfully issued debt obligations of the United States and obligation guaranteed by the United States, the agencies of the United States or enterprises sponsored by the United States govern- ment, not to exceed 40% of the portfolio on any one government sponsored enterprise. • Lawfully issued debt obligations of the States of Oregon, Washington, Idaho and California and political subdivisions of those states. Safekeeping A third -party custodian, as evidenced by safekeeping receipts, will hold securities (excluding funds in- vested in the state local government investment pool (LGIP), bank deposits, and Certificates of De- posits). Other Policy Considerations Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. P AGE 384 - C ITY OF T IGARD G LOSSARY OF B UDGET R ELATED T ERMS Adopted Budget : The budget amended and approved by the Budget Committee becomes the adopted budget after City Council takes action on it. The adopted budget becomes effective July 1. Ad Valorem Tax : A tax based on value, such as a property tax. Appropriations : Legal authorization granted by the City Council to spend public funds. Appropria- tions within each program may not be exceeded. Approved Budget: The proposed budget as amended and approved by the Budget Committee and recommended to the City Council for adoption is referred to as the Approved Budget. Assets: Property owned by the city, which has monetary value. Balanced Budget: A budget is “balanced” when total resources (beginning fund balance plus current revenues plus transfers -in) equals total requirements (expenditures plus contingency plus transfers -out plus ending fund balance) for each fund. Bancroft : Section of Oregon Law that allows benefited property owners within an LID to pay their assessments in installments. This is made possible by the sale of long term “Bancroft” bonds, pro- ceeds of which are used to pay LID costs. Principal and interest on Bancroft bonds are paid by assess- ments received from property owners within an LID, though these bonds also carry the full faith and credit guarantee of the city. Bond : A written promise to pay a specified sum of money, called the face value or principal amount, at a specified date or dates in the future, called the maturity date(s), together with periodic interest at a specified rate. Bond Anticipation Note (BAN): BANs are a form of short -term borrowing in anticipation of a fu- ture sale of long -term bonds. BANs are used frequently to finance construction of local improvement district improvements and are retired by eventual sale of Bancroft bonds or collection of special assess- ments from benefited property owners. Budget : A plan of financial operation embodying an estimate of adopted resources and expenditures for a given year. The budget is the legal spending limit for city activities. Budget Calendar : Schedule of key dates or milestones followed by city departments in the prepara- tion, review and administration of the budget. Budget Message : Opening section of the budget which provides the City Council and public with a general summary of the most important aspects of the budget, changes from current and previous fis- cal years and views and recommendations of the City Manager. A PPENDIX - P AGE 385 G LOSSARY OF B UDGET R ELATED T ERMS Capital Improvement Projects (CIP): Expenditures which result in the acquisition of land, improve- ments to existing facilities and construction of streets, sewers, storm drains, park facilities and other public facilities. Capital Improvements Program : Long -range plan for city facilities and infrastructure. Capital Outlays : Expenditures equal to or greater than $5,000, for equipment, vehicles or machinery that results in the acquisition or addition to fixed assets. City Center Development Agency (CCDA): The Urban Renewal Agency approved by the voters in May, 2006. The CCDA is comprised of members of the City Council as its governing body. Clean Water Services (CWS): A county -wide agency formerly named the Unified Sewerage Agency (USA). Clean Water Services owns and operates all major sewage treatment plants within Washington County. CWS establishes sewer rates and contracts with most cities to collect monthly charges from residents and perform most sewer maintenance and repair within city limits. Community Investment Program: Long -range plan for city facilities and infrastructure. Contingency : Appropriation established in certain funds for the funding of unforeseen events. Con- tingency may be appropriated for a specific purpose by the City Council by approval of a resolution. Debt Service: Interest and principal on outstanding bonds due and payable during the fiscal year. Employee Benefits : Benefits include social security, retirement, group health, dental and life insur- ance, workers’ compensation and disability insurance. Enterprise Funds : Governmental activities that can be operated most like a commercial business are referred to as enterprise activities and are accounted for in enterprise funds. Tigard’s enterprise activi- ties include sewer, stormwater and water utilities. Expenditures are matched with revenue from service charges to ensure the program is self -supporting. Expenditure: Actual payment made by city check or wire transfer for services or goods received or obligations extinguished. Fees : General term used for any charge levied by local government in connection with providing a ser- vice, permitting an activity or imposing a fine or penalty. Major types of fees include building permits, business and non -business taxes, fines and user charges. Fiscal Year: Period used for accounting year. The City of Tigard has a fiscal year of July 1 through the following June 30. P AGE 386 - C ITY OF T IGARD G LOSSARY OF B UDGET R ELATED T ERMS Franchise: A special privilege granted by a government, permitting the continued use of public prop- erty, such as city streets, and usually involving the elements of monopoly and regulation. FTE: Abbreviation for Full Time Equivalent. Staffing levels are measured in FTE’s to give a con- sistent comparison from year to year. In most cases, an FTE is one full time position filled for the en- tire year. However, in some instances an FTE may consist of several part time positions. Fund: A fiscal and accounting unit with a self -balancing set of accounts in which cash and other finan- cial resources, liabilities, equities and changes therein are recorded to carry on specific activities and/or objectives. Fund Balance : Amount left over after expenditures are subtracted from resources. Each fund begins and ends each fiscal year with a positive or negative fund balance. General Fund : The primary discretionary fund of the city, which accounts for general -purpose reve- nues (such as property tax) and general -purpose operations. Generally Accepted Accounting Principles (GAAP): Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. Intergovernmental Revenues: Revenue from other governments, primarily Federal and State grants and State shared revenues, but also payments from other local governments. Local Improvement District (LID): An LID is an entity formed by a group of property owners or the city to construct public improvements (such as streets, sewers, storm drains, streetlights, etc.) to benefit properties. Costs of such improvements are then assessed among benefited properties. Measure 5: A constitutional limit on property tax rates passed by voters in the State of Oregon in No- vember 1990. This provision sets a maximum $10 tax rate on individual properties for the aggregate of all non -school taxing jurisdictions. School’s maximum rate is limited to $5. Measure 47 : A Constitutional limit on individual property tax collections approved by voters in No- vember 1996. This measure was repealed and replaced by Measure 50 before it took effect. Measure 50 : Passed by voters in May 1997, this legislatively referred measure repealed Measure 47, and significantly reduced future property taxes. The measure rolled back assessed values on individual property to the 1995 -96 value, less 10%. It reduced 1997 -98 city levy authority by an average of 17% and then converted it to a rate to be applied to assessed value in all future years. Assessed value growth was limited to 3% per year. The measure reinstated Measure 47 limits on fees and charges and on majority turnout election requirements. A PPENDIX - P AGE 387 G LOSSARY OF B UDGET R ELATED T ERMS Metro : The only directly elected regional government in the nation. Metro is responsible for regional transportation and land use planning. It also manages the Oregon Zoo, the Oregon Convention Cen- ter, the Portland Center for the Performing Arts, and the Exposition Center. Metro is also responsible for regional solid waste disposal. Modified Accrual Basis : The accrual basis of accounting adapted to the governmental fund -type measurement focus. Under it, revenues and other financial resource increments (e.g., bond issue pro- ceeds, property taxes and/or special assessments) are recognized when they become both measurable and available to finance expenditures of the current period. Object Classification : Indicates type of expenditure being made, i.e., personal services, materials and services, capital outlay, etc. Operating Budget : The portion of the budget that includes appropriations for direct services to the public including wages and benefits, materials and services and capital outlay. Excluded from the oper- ating budget are capital improvement projects, debt service requirements, transfers, contingency and reserves. ODOT: Oregon Department of Transportation. Permanent Tax Rate: The dollar -per -thousand figure used to calculate property tax revenues. Under Measure 50, all tax bases in Oregon were converted to a permanent tax rate. This rate, when applied to assessed value of property within a jurisdiction, produces the property tax revenues used to support general city operations. Tigard’s Permanent Tax Rate is $2.5131 per $1,000. Personal Services : Compensation to city employees in the form of salaries, wages and employee bene- fits. Program Budget: A budget wherein expenditures are based primarily on programs of work and sec- ondarily on character, classification, and performance. Programs within the City of Tigard’s adopted budget include Community Services, Public Works, Community Development, Policy & Administra- tion and General Government. Proposed Budget : City budget developed by the City Manager and submitted to the Budget Commit- tee for their deliberation. Reserved Fund Balance : Those portions of fund balance that are not appropriable for expenditure or that are legally segregated for a specific future use. SDC: Abbreviation for systems development charges. SDCs are paid by developers and builders to fund expansion of infrastructure necessary due to increased usage. Such charges are collected for sew- ers, storm drains, streets, parks and schools. P AGE 388 - C ITY OF T IGARD G LOSSARY OF B UDGET R ELATED T ERMS SWM: Abbreviation for Storm & Surface Water Management. The program is closely affiliated with Clean Water Services (formerly USA) and performs the same functions for the stormwater system throughout the county. Special Assessment : A charge made against certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily those properties. Special Revenue Fund: A fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. Tax Base: Oregon law used to allow cities within the State, with voter approval, to establish a dollar amount of property tax that may be levied on property within the city. Once established, a tax base was allowed to increase by 6% each year without further voter approval. All tax bases in the State were eliminated by Measure 50 and replaced with permanent tax rates. Tax Increment Financing: Financing secured by the anticipated incremental increase in tax revenues, resulting from the redevelopment of an area. TIF: Abbreviation for Traffic Impact Fee. These are revenues from a County -instituted fee on devel- opment. It was approved by voters in 1989. Funds are used for highway and transit capital improve- ments, which provide additional capacity to major transportation systems and recovery of costs of ad- ministering the program. The city collects this fee inside its boundaries. Urban Renewal District: In May of 2006, Tigard voters approved the formation of an Urban Renew- al District encompassing the downtown and surrounding areas. With the formation of this district, future increases in property tax revenues from property within the district, called tax increment, will provide an important source of funding for a number of needed capital projects. Urban Service Area : The area of unincorporated Washington County within the City of Tigard’s area of interest, but outside Tigard city limits. The city and the county entered into an agreement in which the city provided development services to the area.. Tigard collected all fees and charges from such development and used the funds to pay for the related costs of that service. In FY 2006 -07, the city and county terminated the contract and the city no longer provides services to this area. WCCLS : Abbreviation for Washington County Cooperative Library Services. All libraries within Washington County are partially funded through a county -wide serial levy. Funds are distributed twice each fiscal year in accordance with a formula that takes into account circulation, open hours, and col- lection development. A PPENDIX - P AGE 389 A DVISORY C OMMITTEES Budget Committee The Budget Committee is established by Oregon Local Budget Law. The Committee consists of the four elected council members, the Mayor and five members from the community appointed by the City Council for three year terms. The council also appoints a non -voting, alternate member who may fill any vacancies that may occur during the year. The committee is responsible for deliberating on the proposed budget submitted by the City Manager and for sending the approved budget to the City Council for adoption. The committee must also approve tax levies. Members Jurisdiction Buehner, Gretchen Councilor Dirksen, Craig Mayor Goodrich, Dan Citizen Graeber, Melody Citizen Henderson, Marland Councilor Henn, Christopher Citizen James, Cameron Citizen Parker, Rick Citizen Wilson, Nick Councilor Woodard, Marc Councilor City Center Advisory Commission This committee’s role is defined in the City Charter and is to assist the Urban Renewal Commission in developing and carrying out an Urban Renewal Plan. Members Jurisdiction Barkley, Carolyn Citizen Craghead, Alexander Citizen Ellis Gaut, Alice Citizen Hughes, Ralph Citizen Louw, Peter Citizen Murphy, Thomas Citizen Pao, Linli Citizen Shearer, Elise Citizen Thornburg, Philip Citizen P AGE 390 - C ITY OF T IGARD A DVISORY C OMMITTEES Neighborhood Involvement Committee The Neighborhood Involvement Committee is charged with oversight of the Neighborhood Network Program and finding ways to engage residents in the program. Members Jurisdiction Anda, Patricia Citizen Carver, Sue Citizen Christopher, Basil Citizen Froude, Bev Citizen Olson, Cathy Citizen Ramaekers, Connie Citizen Intergovernmental Water Board The Intergovernmental Water Board consists of five members and was established through an inter- governmental agreement between the cities of Tigard, Durham and King City and the Tigard Water District. Each jurisdiction is represented by one member and one member is appointed at large. Members Jurisdiction Buehner, Gretchen Tigard Henschel, Ken Tigard Water District Jehnke, Keith Durham Stone, Michael Member at Large Winn, Dick King City Library Board The Library Board consists of seven citizen members appointed by the City Council to serve four year terms. The board advises the City Manager and City Council on matters related to library operations. Members Jurisdiction Burke, David Citizen Cadiz, Laura Citizen Carter, Stephanie Alternate Hancock, Scott Citizen Harris, Katie Alternate Monahan, Linda Citizen Nguyen, Cecilia Citizen Snyder, Dan Citizen Storhm, John Citizen A PPENDIX - P AGE 391 A DVISORY C OMMITTEES Park and Recreation Advisory Board The Park and Recreation Advisory Board consists of seven voting members, two ex -officio members, and one Youth Advisory Council representative. One ex -officio member represents the Tigard Plan- ning Commission and one represents the Tigard -Tualatin School District 23 -J. The board advises the City Council on matters pertaining to the creation, operation, and maintenance of recreation facilities under the jurisdiction of the city. Members Jurisdiction Albertson, Barry (ex -officio) Citizen Brown, David Citizen Dao, Hong Citizen Faber, Peggy Citizen Henry, Marshall Citizen Kunkle, Gordon Citizen Mears, Troy Citizen Polivka, Holly Citizen Romans, Gary Citizen Pedestrian and Bicyclist Subcommittee Formed in 2010 as part of the Tigard Transportation Advisory Committee, its primary focus is to ad- vise staff and city leadership about issues affecting pedestrians and cyclists in Tigard. Their role in- cludes enhancing and promoting the city by supporting walking, cycling and related events in the city. Members Jurisdiction Basil, Christopher Citizen Baumgarten, David Citizen Boughton, Steve Citizen Bucsek, John Citizen Jenson, Jill Citizen Reynolds, Erik Citizen Ruby, Zach Citizen Tabor, Kristen Citizen Viaene, Stevie Citizen P AGE 392 - C ITY OF T IGARD A DVISORY C OMMITTEES Planning Commission The Planning Commission consists of nine citizen members, appointed by the City Council to serve four year terms. The commission’s responsibilities include assisting the City Council to develop, main- tain, update and implement the City Comprehensive Plan; to formulate the City Community Invest- ment Program; and to review and take action on development projects and Development Code provi- sions delegated to the commission. Members Jurisdiction Anderson, Tom Citizen Doherty, Margaret Citizen Hasman, Stuart Citizen Muldoon, Matthew Citizen Rogers, Jason Citizen Ryan, Karen Citizen Schmidt, Donald Citizen Shavey, Richard Citizen Walsh, David Citizen Tigard Transportation Advisory Committee (TTAC) Created in 2009, the TTAC is advisory to City Council and staff on transportation matters. The com- mittee provides a venue for citizen involvement in transportation decisions. Members Jurisdiction Bass, Steve Citizen Christopher, Basil Citizen Fox, Don Citizen Hughart, Karen Citizen Mitchell, Dennis Citizen Moreland, Kim Citizen Schmidt, Don Citizen Stanfield, Jennifer Citizen Stevenson, Mike Citizen Warren, Christopher Citizen Wolf, Maureen Citizen A PPENDIX - P AGE 393 A DVISORY C OMMITTEES HCT Land Use Plan Citizen Advisory Committee (CAC) This committee was created in 2010 and is an adjunct committee from TTAC. Its main purpose is to advise on a study for High Capacity Transit (HCT). The Tigard HCT Corridor Land Use Plan will look at the relationship between land use and transportation in the Pacific Highway/99W corridor. The project is a partnership with the city, Metro and ODOT. Members Jurisdiction Anda, Patti Citizen Bass, Steve Citizen Christopher, Basil Citizen Fox, Don Citizen Greenlaw -Fink, Sheila Citizen Hughart, Karen Citizen Mitchell, Dennis Citizen Moreland, Kim Citizen Schmidt, Don Citizen Stanfield, Jennifer Citizen Stevenson, Mike Citizen Warren, Christopher Citizen Wolf, Maureen Citizen Tree Board The Tree Board was established by City Council resolution. The board consists of up to seven mem- bers, who are appointed by the City Council for two or four year terms. The role of the board is to act as a voice for Tigard citizens regarding urban forestry issues. The Tree Board is active in participating in numerous aspects of the Urban Forestry program such as reviewing tree planting, maintenance and removal requirements; assisting in developing and updating a street tree inventory; creating an Urban Forestry Management Plan; and working with the City Forester in selecting tree species for plantings. on public property. Members Jurisdiction Ettelstein, Mort Citizen Gross, Wayne Citizen Jackson, Paul Citizen Lieuallen, Bret Citizen Walsh, David Citizen P AGE 394 - C ITY OF T IGARD S TAFFING S UMMARY A PPENDIX - P AGE 395 S TAFFING S UMMARY P AGE 396 - C ITY OF T IGARD M ANAGEMENT /P ROFESSIONAL G ROUP S ALARY S CHEDULE A PPENDIX - P AGE 397 M ANAGEMENT /P ROFESSIONAL G ROUP S ALARY S CHEDULE P AGE 398 - C ITY OF T IGARD M ANAGEMENT /P ROFESSIONAL G ROUP S ALARY S CHEDULE A PPENDIX - P AGE 399 M ANAGEMENT /P ROFESSIONAL G ROUP S ALARY S CHEDULE P AGE 400 - C ITY OF T IGARD T IGARD P OLICE O FFICERS A SSOC . S ALARY S CHEDULE A PPENDIX - P AGE 401 O REGON P UBLIC E MPLOYEES U NION S ALARY S CHEDULE P AGE 402 - C ITY OF T IGARD O REGON P UBLIC E MPLOYEES U NION S ALARY S CHEDULE A PPENDIX - P AGE 403 O REGON P UBLIC E MPLOYEES U NION S ALARY S CHEDULE P AGE 404 - C ITY OF T IGARD City of Tigard | A DOPTED B UDGET | FY 2 01 1 –2 0 1 2