Resolution No. 95-55 115 Al
CITY OF TIGARD,OREGON
RESOLUTION NO. 95- 55
A RESOLUTION OF THE CITY OF TIGARD, OREGON,AUTHORIZING THE ISSUANCE AND
SALE OF LIMITED TAX GENERAL OBLIGATION 3OND ANTICIPATION NOTES,SERIES 1995,
IN AN AMOUNT NOT TO EXCEED $4,250,000 FOR THE PURPOSE. OF THE CONTINUED
Pl::."tidCIj-IG OF THF 1MPRQVFMF-N'r;S FOR THE DARTMOUTH STREET L OCA "
IMPROVEMEidT DISTRICT;PRESCRIBING TI:E FORM AND DETAIL OF SAID NOTES AND THE
COVENANTS AND AGREEMENTS MADE BY THE CITY TO FACILITATE AND PROTECT THE
PAYMENT THEREOF.
WHEREAS,pursuant to Ordinance No.88-08,passed by the City of Tigard,Oregon(the
"City"), on May 9, 1938, which amended Ordinance No. 84-17, passed by the City on April 9, 1984
(collectively the"Dartmouth LID Ordinance"),the City approved the formation of a local improvement
district(the"Dartmouth LID")to provide ccrtain irnpruvements set fbrth in the Dartmouth LID Ordr'na^.ce- e
(the"Improvements"); and
WHEREAS, pursuant to the Dartmouth LID Ordinance, upon completion of the
Improvements the City shall prepare the final assessment rolls for the Improvements,send notice of such
assessments along with notice of a hearing on said proposed final assessments,and shall,after such hearing
and after considering any comments on said proposed tinal assessments, finally assess the properties
benefitted by the improvements and cause such final assessments to be spread upon the benefitted
properties;and
WHEREAS,the City will allow the benefitted property owners to finance the assessments
against their properties as provided in the Bancroft Bonding Act,ORS 223.205,et seq.,as amended,and
the City intends to issue special assessment bonds or limited tax special assessment bonds to the extent
of applications for payment in installments are received; and
WHEREAS,pursuant to ORS 287.502,et seq.,any city authorized to issue bonds under
ORS 223.205,et seq.,is authorized to issue bond anticipation notes to finance-the construction of public p
improvements of the character described in ORS 223.205;and 6
WHEREAS,the Improvements are of the character described in ORS 223.205;and
WHEREAS, as required under ORS 287.515(1), the City held a hearing on the
Improvem_nts on March 28, 1988,and the City Council,acting upon the request of an affected property
owner, continued that hearing to April 11, 1988, has declared in the Dartmouth LID Ordinance its
intention to construct the Improvements;and
WHEREAS,the pursuant to Resolution No.92-05,passe by the City Council on JanLary
28, 1992,the City issued its Limited Tax General Obligation Bond Anticipation.Notes,Series 1992 (the
"1992 Notes"),to provide the interim financing of the Improvements;and
I �
Pac�e 1-Rnolutlon No.95-�5
WHEREAS,the 1992 Notes matured on February 1, 1994,and thq Improvements were
not completed so the City was not able to finally assess the benefitted properties and complete the
peratanent financing of the Improvements by February 1, 1994;and
WHEREAS,ORS 287.504(2) allowed the refinancing of 1992 Notes;and
' _ R_MAS.the ,.l..cc1.uAits .tntter••"
' _.:• —i_.:.>:A_.:. Act_
,
Series 1994(_he"1994 Notes"),pursuant to Resolution 93-62 to provide the continued interim financing
of the Improvements;and
WHEREAS,the 1994 Notes mature on January 1,1996,and the improvements are not
completed so that the City will not be able to finally assess the benefitted properties and complete the
permanent financing of the Improvements by January 1, 1996;and
WHEREAS,ORS 287.504(2) allows the refinancing of 1994 Notes;and
WHEREAS, the City intends to issue its Limited Tax General Obligation Bond
Anticipation Notes, Series 1995 (the "Notes"), to provide the continued interim financing of the
Improvements;and
WHEREAS,this Council finds that Notes issued pursuant to this authority do not exceed
in the aggregate the current estimated cost of the Improvements and that the mvturity date of the Notes
herein authorized is not later than,two y.um hom the date of issuance of the Notes;
TFIE CITY OF TIGARD RESOLVES AS FOLLOWS:
1. Notes Authorized. The City Council authorizes the issuance of Limited Tax General
Obligation Bond Anticipation Notes, &,.'ties 1995 (the "Notes") in a principal amount not to exceed
$4,250,000 pursuant to ORS 287.502, et seq., as amended, for the purpose of funding the interim
construction of the Improvements and the costs of issuing these Notes. The Notes shall be dated
December 1, 1995,or such other date designated by the City Administrator or the Finance Director and
ir5e Nates shall'Dear interest from their oared date payable on June
1 and December 1 of each year commencing on June 1, 1996,until maturity or earlier redemption,at a
rate as hereafter determined. The Notes shall be in denominations of$5,00'J,or such other denominations
designated by the City Administrator or the Finance Director,and integral multip-s¢hern,f.
Interest on the Notes and,upon presentment and surrender thereof,the principal thereof
shall be payable in lawful money of the United States of America by check or draft by First Bank National
P oc ation,Portland,Oregon,the City's paying agent,or its successor. Intermit shall be payable on each
interest payment date to the person in whose name the Note is registered at the close of business on the
15th day,whether or not a business day,of the month preceding the payment date. Interest on the Notes
shall cease at maturity or on a date prior thereto on which the Notes have been duly called for redemption
unless the holder thereof shall present the same for payment and payment is refused.
2. Redemption. The Notes shall be subject to redemption,at the option of the City,in whole
or in part,in integral multiples of$5,000,on June 1, 1996,or on the first day of any month thereafter,
P.g, 2-R—luta—No.95-
ME oil:
at a redemptlon price equal to the par amount thereof, plus accrued interest to the date fixed for
redemption. If the Notes are redeemed in part,the Registrar shall select the Notes to be redeemed by lot.
Unless waived by any registered owner of Notes to be redeemed,official notice of any such
redemption shall be g;v.^..n by the Regisrar on behalf of the City by mailing a copy of an official redemption
notice by registered or certified trail not less than 15 days nor=.ore than 30 days prior to the date fixed
far redemption to the registered owner of the Note or Notes to be redeemed at the address shown on the
Register cr at such other nddr.=as iY f;.:.':«.-hed in writing by such registered owner to the Registrar.
All official notices of redemption shall be dated and shalt state:
(1) the redemption date,
(2) the redemption price,
(3) if fess than all outstanding Notes are to be redeemed,the identification
(and, in the case of partial redemption, the respective principal amounts) of the Notes to be
redeemed,
(4) that on the redemption date the redemption price will become due and
payable upon each such Note called for redemption,and that interest thereon shall cease to accrue
from aa-1 after said date,and
(5) the place where such Notes are to be surrendered for payment of the
redemption price, which plan: of payment shall be the principal corporate trust office of the
Registrar.
::eRcg'st ar shall also cause to be published the official notice of redemption ac r,_q,_ed
in ORS 287.508,as may be amended.
Prior to any redemption date,the O'v shall deposit with the Registrar an amount of money
sufficient to pay the redemption price of ail the Notes which are to be redeemed on that date.
Official notice of redemption haviriR been Riven as aforesaid,the Notes so to be redeemed
shall,on the redemption Bate,become due and payable at the redemption price therein specified,and from
and after such date(unless the City shall default in the payment of the redemption price)such Notes shall
cease to accrue interest. Upon surrender of such Notes for redemption in accordance with such notice,
such Notes shall be paid by the Registrar at the redemption price. Installments of interest due on or prior
to the redemption date shall be payable as herein provided for payment of interest. Upon surrender for
_ any partial redemption of any Note,there shall be prepared for the registered owner a new Note or?rotes
of the same maturity in the amount of the unpaid principal. Notes which have been redeemed shall be
canceled and destroyed by the Registrar and shall not be reissued.
In addition to the foregoing notice, further notice shall be given as may be otherwise
required by law. No defect in said further notice nor any failure to give all or any portion of such further
notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as
above prescribed.
Par_3-F—hitim No.95-$
3. Securiti. The Notes are payable from proceeds of the assessment bonds to be sold upon
completion of the Improvements and as otherwise provided in Section 4 hereof,provided that if the City
is nor able to sell assessment bonds for the Improvements,the City intends to issue limited tax assessment
bonds for the Improvements (the permanent financing in whichever form being collectively referred to
herein as the"Bancroft Bonds"). Tne full faith and credit of the City and any taxes which the City may
levy within the limitations of section 11 or l lb,Article XI of the Oregon Constitution are also pledged
to the punctual payment of the Notes.
4. Notes Sinkine Fund. The Finance Director is directed to establish a sinking fund,
commonly known as the Bancroft Bonded Debt Sinking Fund-Series 1995 Notes (the"Fund"),to which
shall be deposited all proceeds from the collection of unbonded assessments,the sale of improvement bonds
pursuant to '—')RS 223,205,et seq.,and the foreclosure of improvement Hens Lr unbonded assessments
realized from the Improvements with respect to such Notes.
The deposits in the Fund shall be applied to the call and payment of such Notes and such
funds shall not be transferred,borrowed,diverted or used for any other purpose and for failure to hold,
account for and apply such funds as providedin this section,the Finance Direcror s_nau be pex�sally 1—
and shall also be liable on the official bond to the holders of such Notes.
5. Sale of Notes. The City Administrator or Finance Director is authorized to enter into a
purchase cors tract for the Notes or other contractual obligation to issue and sell the Notes(the"Purchase
Contract") with a purchaser selected by either the City Administrator or Finance Director (the
"Underwriter"). The Purchas: Contract shall state the principal amount of Notes to be issued, the
maturity date of the Notes to be issued, the price to be paid to the City far the Notes, the interest rare
on the Notes,the denominations and term of the Notes,the schedule of payment of Note principal and
interest, the terms and conditions under which the Notes may be redeemed prior to maturity, if any,
whether the Notes will be book-entry, and such other terms and conditions of the Notes that are not
appropriately detennired at th c tine of thf:resolution. The City Adm_rnsesater or Fin-- cc D rcz,tur s.all
report the terms of the Purchase Contract to the City Council at the next regularly scheduled meeting of
the City Council. The Purchase Contract shall provide that the price to be paid by the Underwriter for
the Notes shall not be less than 99.5%of the par amount thereof. -111e true interest cost for the Notes
shall not exceed five percent(5.00%).
awlThe City Administrator or Finance Director of the City is hereby authorized and directed
to prepare and execute the Notes in the manner hereinatter specitied,to cause the Notes to be registered
and authenticated with Fust Bank National Association,Portland,Oregon(the"Registrar"),and to deliver
the Notes to the Underwriter,upon payment of the purchase price for the Notes.
6. Form and Denomination. The Notes shall be executed on behalf of the City with the
man,-1 or&,_-ernile signature of the City Administrator or Finance Director. The Notes shall not be valid
or prove obligatory for any purpose or be entitled to any security or benefit under this Resolution until the
Certificate of Authentication thereon shall have bcen dated and executed by manual signature of a duly
authorized officer or employee of the Registrar. The Notes shall be issued substantially in the form as set
forth in Exhibit A hereto and in such names and such denominations as requested by the Underwriter.
Pcge 4-Rezolution Nn 95-5S
7. Authentication.Rmstration and Transfer.
a. Ali Notes shall be in registered form. The City hereby appoints First Band
National Association,Portland,Chegon,to serve as paying agent and registrar for the Notes(the
"?°egistrar"). A successor Registrar may be appointed for the Notes by ordinance or resolution of
the City. The Registrar shall provide notice to Note owners of any change in the Registrar not
later than the interest payment date following the change in Registrar.
b. No Note shall be entitled to any right or benefit under this Resolution
unless it shall have been authenticated by an authorized officer or employee of the Registrar. The
Registrar shall authenticate all Notes to be delivered at closing of this Note issue, and shall
additionally authenticate all Notes properly surrendered for exchange or transfer pursuant to this
Re-.olution and any Note issued in lieu of any mutilated,destroyed,lost or stolen Notes.
C. The ownership of all Notes shall be entered in the Note register
maintained by the Registrar,and the City and the Registrar may treat the person listed as owner
in the Note register as the owner of the Note for all purposes.
d. The Registrar shpll mail each interest payment to the name and address
of the owner of the Note as rhey appear on the Note register at the close of business on the
fifteenth day,whether or not a business day,of the month preceding an interest payment date
(the"Record Date"). I€payment is so mailed,neither the City nor the Registrar shall have any
further liability to any party for such interest payment. The principal of the Notes shall be payable
upon maturity or earlier redemption at the principle corporate trust office of the Registrar upon
presentation and surrender of the Note.
C. Nares may be exchanged for an equal principal amount of Notes of the
same maturity which are in different denominations,and Notes may be transferred to other owners
if the Note owner submits the fallowing to the Registrar.
(1) written instructions for exci,ange or transfer satisfactory to t ie
Registrar,signed by the Note owner or his attorney in fact and guaranteed or witnessed
in a manner satisfactory to the Registrar;and
(2) the Notes to be exchanged or transferred.
f. The Registrar shall not be required to exchange or transfer any Notes
submitted to it during any period beginning with a Record Date and ending on the next following
interest payment date;however,such Notes shall be exchanged or transferred promptly following
= that interest papmcnt date.
g. Each Note delivered under this Resolution upon transfer or exchange for,
or in lieu of, any other Note shall carry all the rights to interest accrued and unpaid, and to
accrue,which were carried by such other Note,and each such Note shall be so dated that neither
gain nor loss in interest shall result from such transfer,exchange or substitution. The Registrar
shall note the date of authentication on each Note. The date of authentication shall be the date
on which the Note owner's name is listed on the Register.
Page 5-F—lutim No.95-55
h. For purposes of this Section,Notes shall be considered submitted to the i
Registrar on the date the Registrar actually receives the materials described in subsection(5) of
this Section 7;provided they are received by noon,otherwise,they will be deemed received and
registered the following business day.
i. The City may alter there provisions regarding registration and transfer by
mailing notification of the altered provisions to all Note owners. The altered provisions shall take
effect on the date stated in the notice, which sball not be earlier th?n 45 days after notice is
mailed.
8. Bonk-En=Provisionsif the Purchase Contract so provides,the Notes shall be issued in
book-entry form. If the Notes are issued in book-entry form.,the following provisions shall apply.
a. Notwithstan ling anything herein to the contrary,the Notes shall be held
m fully immobilized form by Depository Trust Company("DTC")acting as depository pursuant to
the terms and conditions set forth in the Blanket Letter of Representations provided by DTC(the
"Letter of Representations"). —1 induce DTC to accept the Notes as eligible for deposit at DTC,
the City Administrator and the Finance Director are authorized to execute the Letter of
Representations,with such changes as hereafter may be approved by them,and such approval shall
be conclusively presumed by the execution thereof. Neither the City nor the Registrar shall have
any responsibility or obligation to DTC participants or the perscrs for whom they act as nominees
with respect to the Notes regarding accuracy of any records maintained by DTC or DTC
.s of are mo rw of_inci1)al of or interest on the Nates,or an notice which
pa.c;.par`- y a-arra ue r,...,�,�. y
is permitted or required to be given to Registered Owners hereunder (except such notice as is
required to be given by the District to the Registrar or to DTC).
b. The Notes initially shall b=issued in the form of a single Tore,ras,ster d
in the name of CEDE chi Co.as the nominee of DTC. The Note so registered shall be held in fully
immobilized form by DTC as depository. For so long as any Notes are held in fully immobilized
form,DTC, its successor or any substitute depository appointed by the City,as applicable,shall
be deemed to be the Registered Owner for all purposes hereunder and all references to Registered
Owners,bondowners,owners or the like shall mean DTC or its nominees and shall not mean the
owners of any beneficial interests in the Notes. Registered ownership of the Notes,or any portions
thereof,may not thereafter be transferred except:
(1) To any successor of DTC or its nominee,if that successor shall
be qualified under any applicabl! laws to provide the services
proposed to be provided by it;
(2) To any substitute depository appoi.-ateei by the City pursuant to
this section or such substitute depository's successor;or
(3) To any person as herein provided if the Notoz at,-no longer held
in immobilized form.
C. Upon the resignation of DTC or its successor(or any substitute depository
or its successor)from its functions as depository,or a determination by the City that it s no longer
Page 6-Rewiution No.95-S5
in the best interests of beneficial owners of the Notes to continue the system of book entry
trans Ars through DTC or is successor(or any substitute depository or its succor),the City a-my
appoint a substitute depository. Any such substitute depository shall be qualified under any
applicable laws to provide the services proposed to be provided by it.
d. In the case of any transfer pursuant to clause (1)or(2)of subparagraph
b,the Registrar,upon receipt of all outstanding Notes together with a written request on behalf
of the City,shall issue a single new`dote,in the principal amount then outstanding,registered in
the name of such successor or such substitute depository,or their nominees,as the case,may be,
all as specified in such written request of the City.
e. In the event that DTC or its successor (or substitute depository or its
succta.;or) resigns from its functions as depository,and no substitute depository can be obtained;
or the District determines that it a in the best interests of the beneficial owners of the Notes that
they be able to obtain Note certificates,the ownership of Notes may be transferred to any person
as herein provided,and the Notes shall no longer be held
in fully immobilizes forn. The City shall
deliver a written request to the Registrar,together with a supply of definitive Notes,to issue Notes
as herein provided in any authorized denomination. Upon receipt of all then outstanding Notes
by the Registrar,together with a wi-e_ten reque;t on behalf of the City to the Registrar,new Notes
shall be issued in such denominations and registered in the names of such person.;as are requested
in such a written request.
f. For so long as outstanding Notes are registered in the name of Cede&
Co.,or its registered assigns, as nominee of DTC,payments of principal of and interest on the
Notes shah be made at the place and i^ the manner provided in the Letter. of Repre entations.
In all other regards the Registrar shall comply with the provisions of the Letter of Representations.
9. Const-ruction Account. 1 tie proceeds of the:;cress shall he applied fust to the payment
of the maturing principal of and interest on the 1994 Notes on January 1, 1995. Any remaining proceeds
of the Notes shall be deposited in the Construction Account created under Resolution 92-5 and used for
cost of issuance for the Notes,capitalized interest on the Notes and completion of the Improvements. The
amounts in the Construction Account exceeding the insurance available from the Federal Deposit
Insurance Corporation shall be secured by the depository bank in accordance with state and federal law.
Withdrawals from the Construction Account shall be made only on checks signed by the Finance Director
' and--dly�-the*�•,**+ For which the Notes were issued as specified in
as autiiorizcri uy u.n wtuiCii,au.,.,...r .,.. .. —for
estimate of costs,including costs of issuance of the Notes and capitalized interest on the Notes. The
City's sham:of any liquidated damages and other moneys paid by defaulting contractors or the sureties shall_
be deposited in the Construction Account to assure completion of the Improvements. When the
construction of the Improvements has been completed,or all construction costs have been paid in full,any
balance remaining in the Construction Account shall be used to pray or apply on the payment of any such
Notes as may thereafter fall due,or, if said Notes have been paid from the proceeds of the sale of its
Bancroft Bonds, then the balance shall be applied to the payment of the Bancroft Bonds in the manner
prescribed by the resolution authorizing the Bancroft Bonds.
The City shall keep records of all expenditures from the Construction Account designating
whether the expenditure is for the Improvements,capitalized interest or cost of issuance of the Notes.
Page 7.11-4.tlon No.95,511L
Funds in the Construction Account may be used to pay contractors and vendors directly
�r the Improvements,or paid directly to the City to reimburse the City for expenses already paid by the
City from funds other than those held in the Construction Account. 'I ne Citi currently has expenses for
which it will be reimbursed at the closing of the Now issue.
Any unspent funds in the Construction Account shalt be inv-sted at a yield not in excess
of the yield on the Notes as computed in accordance with Treasury Regulation Section.1.148-4.
10. Other Documents and Proceedines. The actions to date of the City Administrator,
Finance Director and other City staff'are hereby ratified. The officers and officials of the City are hereby
authorized and directed to execute and carry out or cause to be carried out the obligations which are
necessary or advisable in connection with this Resolution and the issuance,sale and delivery of the Notes,
including but not limited to,agreements with financial institutions to serve as paying agent and registrar
in accordance with Section 7 hereof. The officers and officials of the City are further authorized and
directed to prepare and famish to the attomeys passing on the legality of the Notes,certified copies of all
proceedings, ordinances, resolutions and records and all such certificates and affidavits and other
instruments as may be required to evidence the legality and marketability of the Notes,and all certified
copies,certificates,affidavits and other instruments so furnished shall constitute representations of the City
as to the correctness of a$facts stated or recited therein.
11. Tax Covenants. The City covenants that it will not take any action,or fail to take any
action,if any such action or failure to take action would adversely affect the exclusion from gross income
of the interest on the Notes under Section 103 of the Internal Revenue Code of 1986,as amended(the
"Code"). The City will not directly or indirectly use or permit the use of any proceeds of the Notes or any
cthcr funds-of the City,or take or o.—..it to take any action,that would cause the Noes to be'arbitrage
bonds"within the meaning of Section 148(a) of the Code. To that end,the City will comply with all
requirements of Section 148 of the Code to the extent applicable to the Notes.
12. Small Issuer Exemption from Bank Nondeductibility Restricticrs. The City hereby
dcsig ates the Notes as"qualified tax-exempt obligations"as defined in Section 265(b)(3)(B) of the Code.
The aggregate face amount of all tax-exempt obligations (excluding private activity bonds other than
qualified 501(c)(3)bonds)issued or'to be issued by the City (and all subordinate entities thereof) during
the calendar year 1995 is not reasonably expected to exceed$10,000,000. The City hereby covenants that
the City and all its subordinate entities will not issue in excess of$10,000,000 of qualified tax-exempt
obligations(including the Notes but excluding private activity bonds other that.qualified 501(c)(3)bonds)
during the calendar year 1995 without fust obtaining an opinion of nationally recognized counsel in the
arra of municipal finance that the designation of Notes as'qualified tax-exempt obligations"will not be
adversely affected.
.3 Sm-all Issuen. Exemr)tg Fmm Rebate Reouirementa. In accordance with Section
148(f)(4)(C) of the Code,the City represents and warrants that it is a governmental unit with general
taxing powers; that the Notes are not private activity bonds as defined in Section 141 of the Code; that
95%or more of the net proceeds of the Notes are to be used for the local government activities of the City
and that the aggregate face amount of all tax-exempt obligations(other than.private activity bonds)issued
by the City (and all subordinate entities) during the calendar year 1995 is not reasonably expected to
exce d$5,000,000.
Page 8-Resoludon No.95-S 5
14. Approval of the Limited Offering Circular. It-+s hereh-1 found that the Limited Offering
Circular in the form attached hereto as Exhibit S,does not cont"in material which is misleading or an
untrue statement of material fact or omit to state any material fact necessary in ord=-. io make the
statements made therein,in light of the circumstances under which they were made,not misleading,with
respect to matter contained therein relating to the City. The use and public distribution of the Limited
Offering Circular is hereby ratified, approved and confirmed.
r____t:____. :.t n__i I c_o r5 _
1�. u �.a., a ...e . :: e s cr:er or Finance Director are hereby
authorized (i) to deem final the limited offering circular and (ii) ;o enter into agreements relating to
secondary market disclosure requirements and other provisions of Securities and Exchange Commission
Rule 15c2-12.
16. Effective Date of Resolution. This Resolution shall take effect and be in full force from
and after its passage and approval.
PASSED by the Council, with a quorum in attendance, this �day of November,
1995.
or, City of T'�ard
ATTEST:
ecorder, City of Tigard -�
Page 9-Aeaolurion Na 95-55
1; NMI
_ EXHIBIT A-FORM OF NOTE
n- $
UN17ED STATES OF AMERICA
C71Y OF 71CARD
WASHN=N COUNTY,OREGON
LIMITED TAX GENERAL OBLIGATION BOND ANTICIPATION NOTE
SERIFS 1995'
INTEf,E51 RATE: % MATUPX,Y DATE .1987 DATED DATE: .1995 CUSIP NUMBER:
Registered Owaen CEDE 6t CO.
Principal Amount
THE CETY OF MGA.RD,OREGON(the"City"),for-,slue r celved,eclmowledga Itself indebted and hereby promises to
pay to the registered owns specified above,or w&tered assigru,the principal amount specified above on the above maturity daw tog-_dter with
in.-rest thereon from the dared dare indicated above at the rare per annum indicated above.L-nreret accruing is payable on June 1 and December
1 of each year commenenng on June 1,1996. Inter str on dila Now is payable through the ofJcs of First Bank National Atsociarlon,Portland,
Oregon,the Cities paying agent and registrar(the"Reginal)by chock or drafr mailed to the name and address of the registered owner as it appears,
or.the Note register on the fLrteenth day of rine month preceding the month on which Interest comes due. Note principal is payable upon
presentation and surrender of this Now to the principle corporate mut offices of the Registrar.lNotwithatanding the foregoing,as long as this Now
-e__tirsd m t e ns,-c of Ca.. Co.,-s aointree of 111.^uepwitory Trust Company("uTC:),Payment of principal and interest shall be made
in accordance with the Letter,of Representations berween the City and D T C.J
The Notes are issuable in the form of-.e&=ed Notes without coupons in the denominations of$5,000 or any integral
multiple thereof.Notes may be exchanged for Notes of the same aggregate principal amount,but differ—,authorized denominations.Any rtanafer
cf :.Nl.w taunt he tegi;t<i as provided In the resolution of the City a tho:.:ttg the issuance of die Nora adopt=-?on Novo—bet ,I845
(the"Resolution'),upon the Note roister kept for that purpose at the office of the Registrar.The Cary and the Registrar may treat the pesr
m whose name this Now is registered as Is,absolurs owner fa all purposes.,as provided in the Resolution.
The Now owner may exchange or transfer any Note only by sutrandergnd it,together with a written instmment of exchange
or transfer which i satisfactory to the Registrar and duly executed by the registered all or his duly authorized attorney,at the office of the
Registrar in the manner and subject to the conditions set forth in the Resolution.
This Now is one of the Limited Tex General Obligation Bond Anticipation Notes,Series 1995,of rhe City,issued in the
aggregate principal amount of$4,250,000 and Is Issued by the City pursuant to Oregon Revised Statutes 2875 q.,f 02,et sethe purpose of
providing construction fir--ing for in certapublic improvements(the"Imorovemenn").The Nope are pa;nhie l�.+•.,ce.a,..f assMv+.ent hnnds
which the City Intends to issue upon completion of the Improvements and as otheral provided in the Resolution;provide that if dla City is nos
able to sell assessment bonds f the Improvements,It intends to Issue limited case misers it bards film the Improvements.The full faith and credit
of the City and any taxes which the City may levy within the limitations of section[11 or l Ib,Article XI of the Oregon Constitution are also
pledged to the punctual payment of principal of and Interest on the Notes.The Finance Director is directed to establish a sinking fund,commonly
known as the Bancroft Bonded Debt Sinking Fund-Serie 1995 Notes(the':'ural"),to which shall be deposited all proceeds from the collection
of unbonded wo—ents,the sale of improvement bonds pursuant to ORS 223,205,et seq.,and the foreclosure of improvement hem f unbonded
assessments mallied frim the Improvements with respect to such Notes.The deposits in the Fund shall be applied to the tali and payment of such
News,and such funds shag not be t stales:ev',b.-.sc,:-, vF,rd or uacd f:any othcr purpose.
The Norex have been issued in full and complete compliance with the Constitution and laws of the Stam of Oregon and the
Charter of the City.
The Notes are subject to redemption prior to maturity,at the optima of the City,in whsle or in part(In integral multiples
of$5,000),on June 1,1996,and the Bort day of each month thereafter,at a redemption price equal no the par amount thereof plus accrued to the
redemption date. If gem than all Notes are redeemed,then the Notes to be redeemed shall be selected by the Regie r by lot
Page 10.Resolution No.95
Un,....c:awed by any mg4tered owner of Neu,w be redamed;official notice of any such rederaptloo shall be given by the
Registrar on be3aff of due Ory by waging a copy of an ofl—f red—pdam hocks by reg4unod or cerrT-d mail rxac le.,as..I,days nae more than
30 days prior to the date fixed for redemptiwr to the teglscered a .of tine Note x Notes m he redcrmed at rl-.e addmm shown on the Register
or at such other address as 4 furnished In writing by such registered owner to the Registrar.Notice of redemptive having been given as aforesaid,
the Notes or portions of Notes so m be redeer+:d shall,or.the redempdan date.become due and payable at the redemption price therein specified,
snd frown and after such dare(unless the Ctry shall default in the payment of the redemption price)such Notes or portions of Notes shall cease
to bear interest. Upon surrender of such Notes for redemption in acro.-dance wkh such notice,such Notes shall be paid by the Reg4rrar at the
redempties price.Installments of interest due m m prior to the redemption dam shall be payable as herein pv-ided for payment of interne Upon
surmise for any partial redemption of my Note,there shall be prepared for the registered ovine:a neer Note or Notes of the same maturity in
the amount of the unpaid principal. (Notwithstanding the foregoing,as long as this Nom 4 registered in the name of Cede&Co.,as nominee
of Mr,any redempdm of the Notes shall be effected in accordance wish the Letter of Representations between the City and DTGI
The Notes have been designated by the ary as gttaldW tax—pt obligations"Fx purposes of Section 265(b)(3)of due
Internal Revenue Code of 1986.
rr IS HEREBY CERTIFIED,RECITED,AND DECLARED thct all conditions,sora,and things required to,exist,w happen,
ani to be performed precedent w and in the issuance of this Nom have ezhted,have happened,and hove been perf d in due time,form and
manner as required by the Coredtudon and statures of the State of Oregon and the Charter of the City,and that the Issue of which thin Nom
is a part,and all other obligations of such City,are within every debt limitation and other limit prescrhed by such C„mtitution and statutes anul
Chart r of the City.
CTIY OF MCARD,OREGON
Finance Director
11-IIS NOTE SHALL NOT BE VALID UNLESS
PRO?ERLY AUTHENTICATED BY THE
REGISTRAR IN THE SPACE INDICATED BELOW.
A=riEh CAUON D.4'P.2.•
REGISTRARS CERTIFICATE OF AUTHENRCATION
This 4 one of the City's Limited
Tax General Obligation Bond Anticipadon Noyes,
Series 1995,issued pursuant to the Resoluc;on
described herein..
First Bank National Association,as Registrar M-
Authcrird Officer
Page 11-Resolution No.95•__
_ A'SSIONMENT
FOR VALUE RECEIVED,the—d—W"sells,suaigns and transfers unto
Plea a Insert social seeuriry or other
identify number of assignee on above line.
the within Nae and does hereby iaevowbly constitute and appoint as uccorney to transfer this Note on the books kept for registration rheroof with
the full power of substitution in the premises.
Dated:
NOTICEt 71u signature to this assignment must correspond with the name of the registered owner as it appears upon the face of the
aithhn Note in every particular,without a wration or enlargement or any change whatever.
ECrTIM Signature(.)must be Signature Guaranteed
gua-anreed by a member of
the Nev,York Stock Exchange
or.,commercial bank r (Bank Trust Company or Brokerage Firm)
trust company.
Authotted Officer
The following abbreviations,when used in the inscription on the face of the within Now,shall be cono—d as though they were written
out in full according to uppliceble laws or regulaetona.
TEN COM--tenants in common
TEN ENT--as tenanm by the entireties
JT-ITN - as Joint tenants with right of survivorship
and tmt as tenants in common
OREGON CUSTODIANS use the following:
CUST UL OREG
as custodian under the laws of Oregon for
MIN
(Minces name)
Additional abbreviations may also be used:hough not in the list above. .
Page 12-Resolution No.95-
LIMITED OFFERING CIRCULAR DATED: L Yki bi+
NEW ISSUE RATING:Non-rated
SALE DATE:December 5,1995
In dee opinion of Davis Wright Tremain,,Bond Counsel, raider existing federni hiw and assuming compliance ivith certain
covenants,interest on the Notes is excludable fron.the gross income<J lite owners of the Votes jeer federal in.otne tar purposes
and is not on item of tear preference for purposes of determining alternative inininturn taxable income fen- individuals.and
corporations under the Internal Revenue Code of 1986,as untended(rite"Code"). In the opinion of Bond Counsel,interest on
the Notes is exempt front present personal inconne ucration by the State of Oregon. See"Tia Exennption"herein.
CITY OF TiGARD,OREGON
$4,220,000* _ T
LIMITED TAX GENERAL OBLIGATION ',_i4S�
BOND ANTICIPATION NOTES
(DartIIlorath Street LID Project"
Series 1995
DATED:December 1,1995 DUE:As Shown Below
The Limited Tax Generd Obligation Bond Anticipation Notes,Series 1995(the"Notes"),which are being
issued by the City of'Tigard,Oregon(the"City")are fully registered notes in denominations of$5,000 or integral
multiples thereof. The Notes shall he payable only at maturity or prior redemption upon presentation and surrender
thereof through the principal corporate trust offices of the registrar turd paying agent of the City,currently First Trust
Oregon. Interest on the Notes wit!be payable semi-annually on June 1 and December 1 of each year,commencing
June 1,1995.
The proceeds of the Notes will be used to refinance the Limited Tax General Obligation Bond Anticipation
Notes.Series 1994(the"1994 Notes"),to pay for the additional costs of right-of-way,and the costs of issuing the
Notes. The Notes are limited rex general obligations of the City and are secured by and payable from assessments
and the proceeds of permanent financing to be sold upon completion of the projects. The Notes are secured by the
full faith and credit of the City^nd my taxes which the City may levy within the limitation of section II or I Ib,
Article XI of the Ore-eon.Const—itudon.
The Notes will be issued ars fully registered bonds,registered initially in the mune of Cede 8c Co., is nominee of
The Depository Trust Company,New York.New York("DTC")and subject to a Book-Entry System of registration
and tr ,iisfor, Individual purchasers of Bonds will not receive physical delivery of Bond certificates. Transfer of
Bonds will be made through the Book-Entry System described in the section entitled"BOOK-ENTRY SYSTEM."
MATURITY SCHEDULE
Maturity Principal Interest
R= Amount Rate Yield
12/1/97 $ % %
Redemption Provision - The Notes are subject to redemption as more fully described herein. See "Optional
Redemption of the Notes".
Bank Designation-These notes,combined with all other anticipated tax-exempt issues of the City,toil less than
$10,000,000 for calendar year 1995. Therefore the City has designated the Notes as "qualified tax-exempt
obligations"pursuant to the Internal Revenue Code of 1986.
Legal Opinion -The Notes are offered when,as and if received by the Underwriter, subject to prior sale, or
withdrawal or modification of the offer without notice,and to the approval of legality by Davis Wright Tremaine,
Portland Cregon,Bond Counsel. Certain legal matters will be passed upon for the City by the City Attorney. Notes
will be available for delivery in Book-Entry form through the facilities of DTC in New York,New York on or about
December 20,1995.
Public Financial Management,Inc.
1000 SW Fifth Avenue,Suite 1500
Portland,Oregon 9720-5
"
Preliminary,subject to change.
LIMITED OFFERING CIRCULAR
OF
CI'T'Y CDF TIG ARD,()REG.0NN
Relating to
$4,220,000*
Limited Tax(:general Obligation Bond Anticipation Notes
Series 1995
CITY COUNCIL
James Nicoll,Mayor
Paul Hunt
Bob Rohlf
Went&Conover Hawley
Ken Scheckla
William A.Monahan,Cily Administrator
Wayne Lowry,Director of Finance
BOND COUNSEL
Davis Wright Tremaine
Portland,Oregon
FINANCIAL ADVISOR
Public Financial Management,inc.
Portland,Oregon
LEGAL COUNSEL
O'Donnell,Ramis,Crew,Corrigan&Bachrach
Portland,Oregon
This Limited Offering Circuli has been designed to conform, where applicable, to the guidelines
presented in Disclosure Guidelines for State and Local Government .Securities, published by the
Government Finance Officers Association in 1991.
This Limited Offering Circular is intended only to furnish information in connection with the purchase of
these Notes. The Limited Offering Circular DOES NOT constitute a recommendation, expressed or
implied,to purchase or not to purchase these Notes orany ny other previous Notes of the issuer.
Preliminary,subject to change
Representations
NeiGaer the City nor the Financial Advisor have authorized any dealer,booker, sate-nersor, or other
persons to give any information or make any represenuttion; other than those made in this Limited
Offering Circular,and, if given or made,such other information or representations must not be relied
upon as having been authorized by the City or the Financial Advisor. This Limited Offering Circular does
not constitute an offer to sell,nor shall there be any sale of the:Notes by any person in any jurisdiction in
which it is unlawful for such person to make such a sale.
The information contained in this Limited Offering Circular fuu been obtained from City officials and
other sources believed to be reliable. Neither a representation, warranty nor guarantee is made by the
Fitumcial Advisor as to the necuru:y or completeness of any information in his Limited Offering Circular
a ud nothing contained in this Limited Offering Circular is cur shall be retied upon <as a promise or
representation by the Fimmci d Advisor. The delivery of this Limited Offering Circular does not imply
that the information conutined herein is correct,is of any tiriae subsequent to the date of the Limited
Offering Circular tis shown on the cover page.
Securities`:aws
The Notes have not been registered under the Secur,ties Act of 1933,,is mnended, in reliance upon a
specific exemptions contained in such act nor under the securities laws of tiny suite.
This Litnited Offering Circular,as of its(Lite,is in a form"deemed final"by the City for purposes of SEC
Rule 15c2-12(b)(1). The final Limited Offering Circular will be available to the Underwriter within seven
(7)days of the sale date.
TABLE OF CONTENTS
INTRODUCTION.............................................................................................................................I....................I
DESCRIPTION OF THE SERIES 1995 NOTES................................................................................................1
PurposeOf The Notes.......................................................:...........................................I.................................1
Authorization..................................................................................................................................................... 1
Patymew And Security For The Notes..............................................................................................................2
The Optional Redemption Of The Notes.........................................................................................................2
BOOK-ENTRY SYSTEM......................................................................................................................................3
CITYOF TIGAP.D................................................................................................................................................4
GOVERNMENT................................................................................................................................................4
Table 1: City Council and Other Officials of elle Cit;..................................................................................4
ADMINISTRATION.........................................................................................................................................4
STAFF...............................................................................................................................................................5
Table 2: Bargaining Units and Contract Status..........................................................................................5
Table3: Facilities......................................................................................................................................5
THE LOCAL IMPROVEMENT PROSECT...........................................................................................................6
GENERAL IMPROVEMENT PROJECT PROCEDURES.................................................................................6
THEPROJECT..................................................................................................................................................7
LEGAL ISSUES RELATED TO DARTMOUTH LID PROJECT.......................................................................7
Potential Impacts Resulting From Litigation...................................................................................................8
Table 4: Sources and Uses of Funds...........................................................................................................9
DEBTINFORMATION..........................................•............................................................................................10
DEBTSUMMARY..........................................................................................................................................10
DEBTRATIOS................................................................................................................................................10
DEBTLIMITATION...................................................................................................................................... 10
DEBTAUTHORIZATION.............................................................................................................................. 10
DIEBTMANAGEMENT..................................................................................................................................10
FUTUREDEBT PLANS.................................................................................................................................. 1 1
DebtService Funds.......................................................................................................................................I 1
- Table 5: Outstanding Obligations............................................................................................................I I
ACCRUEDVACATION.................................................................................................................................12
Table 6: Combined Debt Service Requirements........................................................................................12
Table 7: Overlapping General O!,Fgation Debt........................................................................................13
TAXINFORMATION.........................................................................................................................................14
THE PROPERTY TAX LIMITATION MEASURE.........................................................................................14
Exemptions from Property Tax Limitations.................................................................................................14
ImplementingLegislation............................................................................................................................. 14
RealMarketValue.......................................................................................................................................14
SYNOPSIS OF PROPERTY TAX ADMINIS.RATION..................................................................................15
Assessment im i Ey_"li_"•:ul. 15
TacLevy...................................................................................................................................................... 15
Collection.....................................................................................................................................................16
Table8: Principal Taxpayers.................................................................................................................. 17
Table 9: Consolidated 1993-94 Tax Rate................................................................................................. 17
FINANCIAL INFORMATION............................................................................................................................18
BASFOF ACCOUNTING ING..................................-.......................................................................................... 18
FISCALYEAR................................................................................................................................................ 18
AUDITS.......................................................................................................................................................... 18
BUDGETING..................................................................................................................................................18
Table 10: Sttmmmy of 1993-94 Adopted Budget......................................................................................19
Table 11: General Fund Consecutive Bahuice Sheets...............................................................................20
Table 12: General Fund Consecutive Statement of Revenues:md Expenditures........................................21
Table 13: Bancroft Bond Debt Service Fund Consecutive Balance Sheets................................................22
Table 14: Bancroft Bond Debt Service Fand Consecutive Statement of Revenues and Expenditures.........23
ECONOMIC AND DEMOGRAPHIC INFORMATION.......................................................................................24
LAND USE PLANNING.................................................................................................................................24
POPULATION.................................................................................................................................................24
EMPLOYMENT..............................................................................................................................................24
EconomicDevelopment................................................................................................................................25
UTILITIES......................................................................................................................................................25
PUBLIC``FACILITIES......................................................................................................................................26
Sewer...........................................................................................................................................................26
Water...........................................................................................................................................................26
FireProtection......................................................................................................... . ...............................26
HealthCare..................................................................................................................................................20
Education.....................................................................................................................................................26
TRANSPORTATION......................................................................................................................................26
AGRICULTURE..............................................................................................................................................26
HOUSING.......................................................................................................................................................27
INFORI.4ATION SOURCES............................................................................................................................27
INFORMATIONSOURCES............................................................................................................................27
Table 15: Population Estimates................................................................................................................28
Table 14: Portland PMSA Average Annual Unemnloyment.....................................................................29
Table 17: Portland PMSA Labor Force 1991-92.......................................................................................30
Table 18: Portland PMSA Employment Annual Average and Percent Distribution by Industry................31
Table19: Major Employers...........................................................................:..........................................32
Table20: Retail Trade.............................................................................................................................32
Table21: Income Estimates.....................................................................................................................33
Table22: Gross Farm Sales.....................................................................................................................33
Table23: Building Activity.....................................................................................................................34
RATINGS............................................................................................................................................................35
CONTINUING DISCLOSURE............................................................................................................................35
LEGALMATTEP.S.............................................................................................................................................35
TAXEXEMPTION............................................................................................................................................35
FINANCIALADVISOR......................................................................................................................................36
MISCELLANEOUS.............................................................................................................................................36
CONCLUDINGSTATEMENT...........................................................................................................................36
APPENDICES
A: Audited Financial Statements(Partial),as of Jtme 30.1995
B: Fonn of Legad Opinion
CITY OF TIGARD,OREGON
Limited rax General Obligation
Bond Anticipation Notes,Series 1995
$4,220,000`
PROPOSED TERM SHEET
TIME OF BID: Wednesday,December 5,1995 at 10:00 a.m.Pacific Time.
FORM OF BID: Written or facsimile.
AMOUNT: $4,220,000
DATED DATE: December 1,1995
DELIVERY DATE: December20,1995
PAYABLE: Principal and interest on the Notes are payable only at maturity.
MATURITY: December 1,1997
OPTIONAL REDEMPTION:
DISCOUNT: The price bid for the Notes may not be less than 99.5% of their principal
amount.
SECURITY: The Notes are limited um general obligations of the City. The full and credit of
the City and any Wes which the City may levy within the limitation of the
Oregon Constitution are pledged to the punctual payment of the Notes.The City
has covenanted in the resolution to establish it fund to which shall be deposited
all proceeds of permanent financing,the proceeds of unbonded;assessments,the
foreclosure of improvement liens for unbonded assessments realized from the
Improvement Project and any unspent note proceeds which may be available on
the maturity date of the Notes. The deposits in the fund shall be applied to the
payment of such Notes and such funds shall not be transferred, borrowed,
diverted,or used for any other purpose.
DENOMINATION: $5,000
FORM: Book-Entry Only
RATING: Non-Rated.
PURPOSE: The proceeds of the Notes will b;used to refinance the Lirnited Tax General
Obligation Bond Anticipation Notes,Series 1994(the"1994 Notes"),to pay for
the additiona!costs of fight-of-way,and the costs of issuing the Notes.
LEGAL OPINION:. Davis Wright Tremain (Form of Opinion provided in Limited Offering
Circular).
INTEREST METHOD: 30/360
BASIS OF AWARD: TIC("culated from December 1.1995).
GOOD FAITH DEPOSIT: $50,000
RIGHT OF REJECTION: The City reserves the right to eject any or all bid, and to waive any
irregularities.
Preliminary,subject to change.
LIMITED OFFERING CIRCULAR
OF THE
CrFY OF TIGARD
OREGON
Relating to
$4,220,000*
Limited Tax General Obligation
Bond Anticipation Notes
Seri---- 1-1995
INTRODUCTION
The purpose of this Limited Offeringtilt-cular is to set forth certain utfornation concerning the City of Tigard,Oregon (the City),
the Dartmouth LID Project(the Improvement Project),and the City's Bond Anticipation Notes,Series 1995,dated December 1,
1995(the"Notes"). Capitalized terms not defined in this Limited Offering Circular have the meanings as esutblished in Resolution
No- adopted by the City Counci! on (the "Resolution"). All quotations from and summaries and
explanations of provisions of the Resolution do not purport to be complete,and reference is made to the Resolution for full and
complete statements of its provisions. A copy of the Resolution is available upon request.
DESCR PTION OFTHE SERIES 1995 NOTES
The Notes will be issued in book-entry form only, in re&—tered from without coupons i,-t denominations of$5,000 or integral
multiples thereof. The Notes,when executed and delivered,will he registered in the mune of Cede&Co.,as the registered owner
and nominee of the Depository Trust Company,New York,New York("DTC'). While the Notes are in book-entry form,principal
and interest on the Notes will be paid through DTC.
interest on the Notes will be due semi-annually on June 1 and December 1 of each year commencing June 1,1996. Principal on the
Notes.will be due at maturity. So tong as the Notes are subject to the Book-Entry System,all payments of the principal amd interest
on the Notes shall be remitted by the Paying Agent/Registrar, currently First Bank National Association,Portland,Oregon (the
"Paying Agent")directly to DTC. DTC,in turn,will be required to distribute such payments to DTC Participants,and the DTC
Participants will be responsible for ultimate distribution of such payments to the Beneficial Owners of the Notes. The City has no
responsibility for the distribution of any payments on the Notes by DTC to any DTC Participant or by any DTC Participant to any
Beneficial Owner,and shall have no liability whatsoever in the event of any failure by DTC or a DTC Participant to mat=e up such
distribution.
The Notes are limited taut general obligations of the City and are secured by and payable from assessments and the proceeds of
permanent financing to be sold upon receipt and execution of all benefited assessment contracts as further described herein.
The Notes are secured by the full faith and credit and any taxes which the City may levy within the limitation of section 11 or 1 lb,
Article.XI of the Oregon Constitution. The Notes will be paid at maturity or at prior redemption by check or drat: upon
presentation and surrender of the Notes at the office of the Paying Agent/Registrar,currently First Trust Oregon.
Purpose Of The Notes
The proceeds of the Notes will be used to refinance the Limited Tax General Obligation Bond Anticipation Notes,Series 1994(the
"1994 Notes"),to pay for the additional costs of right-of-way,and the costs of issuing the Notes.
Authorization
The Nodes are being issued pursuant to the Resolution and the authority established in ORS 287-502,et seq.,which provides general
authority for cities to borrow money to provide interim financing for capital projects.
Preliminary,subject to change.
I
Payment And Security For The Notes
The Notes are limited tai.general obligations of the City. The full.f-dth and credit of the City and any taxes which the City may
y within the limitation of the Oregon Constitution am pledged to the punctual payment of the Notes. The City has cov':rkanted in
e resolution to establish a fund to which shall be deposited all proceed;of permanent financing, the proceeds of unbonded
.usessrnents,the foreclosure; of improvement liens for unbonded assessments realized from the Irnp;ovement Project and any
unspent note proceeds which may be available ntt the ria,irity:'a c of the,Notes. The deposits-in the fund shall be applied to the
payment of suer Notes and such funds shall not be transferred,borrowed,diverted,or usad for any other purpose.
It is currently the intent of the City,upon completion of the Improvement Project,to issue special assessment bonds to provide
long-term financing for the Improvement Project. Should the City be unable to market special assessment bonds,the City will issue
limited tax genend obligation bonds to provide long-tern financing for the Improvement Project.
The Ilptional Redemption Of The Notes
The Notes tue subject to option-.,i redemption prior to maturity on the first day of each month,commencing June 1,1996. All Notes
called for redemption shall cease to accrue interest from the date of redemption designated in the redemption notice. The amount
payable upon redemption of my Note is an aunount equal to the principal amount of such Note tad accrued interest to the date of
redemption. Notice of redemption will be mailed to the registered ewners by registered or certified mail not less than fifteen(15)
nor more fain thirty(30)days prior to the intended redemption date.
2
BOOK-ENTRY SYSTEM
e Depository Trust Company 'D'fC"),New York,NY,will act itssecurities depository for the Notes. The Notes will be issued
fully-registered Notes registered in the mune of Cede&Co.(DTC's partnership ncminea). One filly-registered ct�rtif3cate will
be issued for each maturity(including one certificate for each principal amount due pursuant to a Mandatory Redemption Schedule)
of the Notes,in the aggregate principal amount thereof,and will be deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law,it"banking organization'within the meaning
of the New York Banking Law,a member of the Federal Reserve System,a"clearing corporation"within the meaning of the New
York Uniform Commercial Code,and a"clearing agency"registered pursuant to the provisions of Section 17A of the Securities
Exchange Act of 1934. DTC holds securities that its participants("Participants") deposit with DTC. DTC also facilitates the
settlement among DTC Participants of securities trarisactions, such is transfers and pledges, in deposited securities through
electronic computerized book-envy changes in Participants'accounts,thereby eliminating the need for physical movement of
securities certificates. Direct Participants include securities brokers and dealers,banks,trust companies,clearing corporations and
certain other organizations. DTC is owned by a number of its Direct Participants mrd by the New York Stock Exchange,Inc.,the
American Stock Exchange, Inc., and the National Association of Securities Dealers, Inc. Access to the DTC system is also-
available to others such as securities brokers and dealers,ranks,and trust companies that clear through or maintain a custodial
relationship with a Direct Participant,either directly or indirectly("Indirect Participants'). The Rules applicable to DTC and its
Participants are on file with the Securities and Exchange Commission.
Purchases of the Notes under the DTC system must be made by or through Direct Participants,which will receive it credit for the
Notes on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in turn to be
recorded on the Direct and Indirect Participants'records. Beneficial Owners will not receive written confirmation from DTC of
their purchase,but Beneficial Owners are expected to receive written confirmations providing details of the transaction,as well is
periodic statements of their holdings,from the Direct or Indirect Participant through which the Beneficial Owner entered into the
transaction. Transfers of ownership interests in the Notes are to be accomplished by entries made on the books of Participants
acting on behalf of Beneficial Owners. Beneficial fawners will not receive certificates representing their ownership interests in the
Notes.except in the event that use of book-entry system for the Notes is discontinued.
o facilitate subsequent transfers,all Notes deposited by Participants with DTC are registered in the mune of DTC's partnership
mine,Cede& Co. The deposit of Notes with DTC and their registration in the name of Cede & Co. effect no change in
beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Notes. DTC's records reflect only the identity
of the Direci Paiiiicif.z=_ to whose accounts such Notes are credited, which may or may not be the Beneficiai Owners. The
Participants will remain responsible for keeping account of their hoidings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants,by Direct Participants to Indirect Participants,and
by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them,subject to any
statutory or regulatory requirements as may be it-effect from time to time.
Redemption notices shall be sent to Cede&Co. If less than all of the Notes are being redeemed,DTC's practice is to determine by
lot the a inount of the interest of each Direct Participant in such issue to be redeemed.
Principal and interest payments on the Notes will be made to DTC. DTC's practice is to credit Direct Participants'pts' accounts on
payable date in accordance with their respective holdings shown on DTC's records unless DTC has reason to believe that it will not
receive payment on payable date. Payments by Participants to Beneficial Owners will be governed by standing instructions and
customary practices,as is the case with securities held for the accounts of customers in bearer form or registered in"street name,"
and will be the responsibility of such Participant and not of DTC,the Trustee,or Tri-Met,subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of principal and interest to DTC is the responsibility of Tri-&let or the
Trustee, disbursement of such Dayments to Direct Participants shall be the responsibility of DTC, and disbursement of such
payments to the Beneficial Owners shall be the resporsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as securities depository with respect to the Notes at any time by giving reasonable
notice to the City or the Trustee. Under such circumstances,in the event that a successor securities depository is not obtained,
Bond certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book-entry transfers through DTC(or a successor securities depository).
In that event,Bond certificates will be printed and delivered..
e information in this section concerning DTC and DTC's hook-entry system has been obtained from sources that the City believes
be reliable,but the City takes no responsibility for the accuracy thereof.
3
CITY OF TI ARD
e City of Tigard ha:r:P:,estimated population of 34,000. The City was incorporated September If. 1961,and encompasses an
<rea of 10 square miles. The C,ty is located in the southeasterly portion of Washington County,in the State of Oregon,and is part
of a rapidly developing suburban area within the Portland metropolitan area- The terrain is gently rolling and hilly,with elevations
from 110 to 710 feet above sea level. It is drained by the Tualatin River and Fawm Caeek and their tributaries. It was a fanning
area until the 1950s,but.has grown as population and industry have moved out along major state amf federal highways heading
south and west out of the metropolitan.center.
GOVERNMENT
T he government of the City is vested in a Mayor and Council. The Council consists of four members who are elected at-large
biennially to four-year terms. The Mayor is elected for a four-year term. The Council appoints the Municipal Judge,City Attorney
as well as the City Administrator,who is responsible for the day martagement of the City and policy implementation,which is set
by the Mayor and City Council.
Table I
CITY OFTIGARD _
City Council
and Other OfTrcial:.of the City
Mayor: James Nicoll is owner of Nicoli Engineering and Construction Services. His service as Mayor began January 1,1995,and
his current tern will expire December 31,1998.
Current Current
Council Member Occupation Term Began Term Expires
Paul Hunt Retired 01/01/93 12/31/96
Wendi Conover Hawley Sales-Certified Kitchen Designer 01/01/93 12/31/96
Bob Rohlf Attorney 01/01/95 12/31/98
Ken Scheckla Retired 01/01/95 12/31/98
City Administrator: William A.Monahan
Finance Director: Wayne Lowry
Legal Counsel: O'Donnell,Ramis,Crew,Corrin=an&Bachrach
Source: City of Tigard.
ADMINISTRATION
William A.Monahan,City Administrator,has been with the City since August 1994. Prior to that,Mr.Monahan was an attorney
in private practice concentrating on heti use and municipal law issues for six years. He also served s Direct(,,.-of Community
Development for Tigard,Oregon for six years,and City Planner for Brockton,Macsachnectts for three years. He received a Ju in
Doctor degree from the Northwestern School of Law at Lewis and Clark College,in Portland,Oregon:a Masters of Community
Planning degree from the University of Rhode Island in Kingston,Rhode Island:find a Bachelor of Arts degree in sociology font
Stonehill College at North Easton,Massachusetts. Mr. Monahan is an associate member of the International City Management
Association,a member of the American Institute of Certified Mariners,and the Oregon State Bar Association.
Wayne Lowry,Finance Director,has been with the City since February 1985. He served as the City's Accounting Manager
through August 1986 and was then appointed Finance Director. Prior to his employment by the City of Tigard,he served as an
Internal Audit Manager for Orange County,California,for four and a half yens. Mr.Lowry received his Bachelor of Science
degree in business administration,with a concentration in accounting,from Long Beach State University,Long Beach,California,
amd is a Certified Public Accountant.
WdWegner Maintenance Services Director,has been with the City since- Prior to that Mr.Wegner served as Director of Parks
Recreation in both Beatrice,Nebraska and Vadporvso,Indiauza; Director of Community Services in Gladstone,Missouri and
Distract Physical Plant Superintendent for Metropolitan Community Colleges in Kansas City,Missouri. He received his Bachelor of
4
Science degree in r,creation from the Univursity of Nebraska in 1977, Mr.Wegner is a member of American Public Works
Associa tion and American Water Works Association.
ftcendy Wooley, City Engineer,has been with the City since Nfirch 1986. Prior to that N1r. Wooley wits self-employed. He
ived his Bachelor of Science degree in Civil Engineering from the University of New Mexico and Master of Science degree in
Civil Engineering from the University of California.
Sandy Zodrow,Human Resources Director,has been with the City since April 3 1995. Prior to that Ms.Zodrow worked for the
City of Albany as a Planning Assistant and is Personnel Director for Benton County and it Senior Personnel Analyst and as
Personnel Manager for Washington County. She received a Bachelor of Science degree in Public Administration and Community
Service from the University of Oregon.
Ron Goodpas.er,Police Chief,has been with the City since August 1989. Prior to that Mr.Goodpaster worked for the City of
Milwaukie. He received it Bachelor of Science degree from Portland State University and Master of Arts degree in Justice
Administration from University of Portland.
Jim Hendryx,Community Development Director,has been with the City since May 1995. Prior to that he held positions as a
land use planner for Curry County; is County Planner for Tillamook County and as Senior Policy-Planner for the City of Beaverton.
He received a Bachelor of Science degree in Geography and a Certificate in Urban Studies from Portland Slate University.
STAFF
As of July 1995_ the City employed 195 people; 170 are fuil-time regular, 10 part-time regular employees,and 15 tentporry
employees. Listed in the table below are the bargaining units representing 135 City employees.
Table 2
CITY OFTIG ARD
Bargaining Units and Contract Status _
Number of Termination Date Status of
So llective Bargaining Unit Employees of Current Contract Negotiations
Tigard Police Officers Association 45 06/30/96 Settled
Tigard Municipal Employees Association;
Oregon Public Employees Union 90 12/31/95 In Process
Source: City of Tigard.
Table 3
CITY OF TIGARD
Facilities
Insured
Facility Year Built,Improved Replacement Value
City Hall Annex 1972 ' 20,400
Civic Center Building 1985 3,227,200
Senior Citizens Center 1982 620,300
Operations Office 1969 202,500
Public Works Annex 1978 122,200
Maintenance Building#2 1969 133,900
Burnham Police Building 1973,1979 94,200
Public Works Pole Building 1984 35,000
Carpentry Shop 1969 21.200
Toad S 4.659900
Source: City of Tigard.
5
THE LOCAL IMPROVEMENT PROJECT
VOWNERAL IMPROVEMENT PROJECT PROCEDURES
Under their home rule authority,cities may prescribe their own methods of financing local improvements by special assessment,or
may utilize the procedures in ORS 223.387 to 223.399.
Local improvement projects are initiated either by petition of property owners or by resolution of the Council. Projects must
conform to those local improvements described in ORS 223.387 or in the City Charter. The Council sets the boundaries of the area
to receive special benefits from the improvement projects;this area is refered to as a local improvement district(LID). If the
project is initiated by petition,the petition describes the boundaries. The Council passes a resolution or ordinance declining its
intention to initiate the improvement project and orders she preparation of an engineering report. This report describes the project,
estimates the cost and lists the affected properties. It may also specify the formula for apportioning the cost. Before the
improvement project is approved,,t public notice and hearing is required(ORS 223.389). Notices are usually mailed to the affected
property owners as well as published or posted. At the hearing,owners may remonstrate and,if a certain percentage remonstrate,
the project may be terminated or delayed according to City charter or ordinance provisions.
After the hexing, the Council makes the final decision to proceed by enacting an ordinance or resolution. The City is then
nathorized to issue hond anticipation notes in the amount of the estimated cost of the improvements. Thereafter, the assessed
property owners may fife litigatiun against the City regarding the assessment bmnula for allocation of cost,but may not litigate the
eventual assessment. When the estimated cost to the City isascertained ascertained on the basis of the contract award,or after the work is done
and rhe cost actually determined,the Council levies atts'essments on each benefited property by ordinance. The assessing ordinance
creates a lien on each property.
When a property owner rc-ives a Notice of Assessment,he or she has the option of making it cash payment in full or signing a
"bond application." This "bond application" is it legal contract whereby the property owner agrees to pay the assessment in
installments. -Principal is paid in uqual semi-annual insudlments. There is no prepayment penalty.
e-assessments may be levied before the project is constructed. The property owner has the Sarre options of signing a bond
application. The applicant waives all irregularities or defects, jurisdictional or otherwise, in the proceedings to cause the
improvement and assessment thereof(ORS 223.215). If the assessment is made before the total cost of the improvement is known
and is found that the aunount of the assessment is insufficient to pay the costs of the improvement,the Council may, by motion,
declare such deficit and instruct the manager to prepare a deficit assessment. The Council sets a time for hexing objections to
deficit assessment,and notices are mailed to affected property owners as well its published or posted. After the hearing, the
Council,by ordinance,levies deficit assessments,and notices are mailed to property owners. If the assessment levied is greater
than theactual costs of the improvements,the Council determines the amount and declares it by ordinance. The excess amounts we
entered on the Tien docket as it credit against the appropriate assessment. If the assessment has been paid,the arount that exceeds
the original assessment shall be refunded to the property owner who paid the assessment.
A delinquency in payment of assessments occurs one year after failure to snake payments when due,and in that event all unpaid
installments,including interest,shall become immediately due and payable,and the total amount may be collected in any legal
rammer. including foreclosure of lien. ORS 223,270 and ORS 223.505 to 223.595 nrovide that one year from the date an
aissessnient installment is delinquent,the City may collect unpaidassessments by advertisement and sale in the rmamer provided by
law for sale of real property on execution. Bonds are sold under the provisions of Oregon Suite Law that collectively are known as
the"Bancroft Act,"to finance all assessments to be paid in installments. "Bancroft bonds"are backed by the full faith and credit of
the City as well as the pledge of the uncollected liens and interest thereon.
6
THE PROJECT
The Dartnouth Street Local Improvement District(the"LID") :wits formed in the early 1980's. Located in an area known as the
0gtud Triangle,the Dartmouth Street LID occupies approximately 60 acres at the junctures of Oregon Highways 217 a nd 9% The
oject consists of a 44-foot wide paved and curbed street within a 70-foot wide right of way extending approximately 3,250 feet
from S.W.69th Avenue at its intersection with the existing Dartmouth Street to Pacific Highway(Oregon 99)at its intersection with
S.W. 78th Avenue. Construction was financed by the issuance of over $2,600,000 in limited tax general obligation bond
anticipation capital appreciation notes in 1992. The notes mature on February 1,1994 in thea mount of$2,890,003. A Construction
contact was awarded on April 27, 1993,and construction was completed in 1994. The City has acquired portions of the right of
way and has it right of entry for the remaining portions.
The project includes three lanes with curbs and street lighting. As development continues,the street will be widened to five lanes
between 68th Avenue and Highway 99. The widening of D.rrturouth Street will be the financial responsibility of the adjoining
property owners,and will not be assessed against the LID. In addition,the street improvements to the LID also street lights,stonn
drrins,waterlines,sanitary sewers,and other underground utilities its required to minimize excavation.
A porion of the proceeds of the Notes will be used to finance the costs of olimming right-of-way for the Improvement Project.
These costs were originally estimated to be$900,000,but due to project delays,the cost of obtaining right-of-way have increased to
$1,682,000.
LEGAL ISSUES RELATED TO DART MO UTH LII)PROJECT
Since the inception of the LID there have been it number of lawsuits filed against the Improvement Project by certain land owners
within the local improvement district- All such lawsuits have been ruled in favor of the City or have been dismissed. The litigation
has been filed in both Washington County Circuit Court,Oregon Land Use Board of Appeals,and Marion County Circuit Court.
The following provides a bnfief summary of the suits filed against the Irnprovement Project.
• Martin v.City of Tigard,78 Or App 181,714 Ptd 1115(1986). This case was the Martins'initial challenge to the
LID. They claimed that the formation of the LID was illegal in a number of respects. T-he trial court ruled against
them and for the City on all claims. The Oregon Court of Appeals found the Martins'challenges to the fonnation of
the LID to be:without:rent,art,-'a:ffinped all of the trial court's rulings. The Court of Appeals did discover a defect,
not rused by the parties,in that it small section of the proposed ro idw;-y was located outside of the LID boundaries,
but the cost of that section of the roadway was mist!!enly included in the LID assessments. The Court of Appeals
remanded the LID to the City for reassessment. This case established that the City followed proper procedures in
forming the LID.
• Cordon R.Martin,ei al. v.City of Tigard,LUBA No.88-034(September 19,1988), In this case,the Martin's,filed an
appeal with the Land Use.Baud if Appeals(LUBA), challenging the City's adoption of Ordinance 88-08,which
mnended the 1984 ordinance that had established the LID. Ordinance 88-08 was adopted, in part,to correct the
deficiency pointed cut by the Conti of Appeals in the case discussed atove.
LUBA agreed with the City, detennining that Ordinance 88-08 was not it land use decision within LUBA's
jun diction....,d even if i, the Martins'ch..!11enge......actua!ly based upon..superseded draft e
a _m nt between
the City and the Oregon Department of Transportation,and the Martins had provided no basis for LUBA to review
Ordinance 88-08:
• Gordon R.Martin,et til.v.City of Tigard, 101 Or App 676(1990),review denied 311 or 60(1990). In this case the
Martins'challenged the v.didity of the local improvement district on the b=asis that there had been"substantial changes"
to the LID subsequent to its formation,thereby necessitating the City Council to reinstitute the LID fonnation process.
The trial court granted the City's motion for summary judgment,the Court of Appeals affirmed the trial court without
opinion,and the Oregon Supreme Cour denied review.
• Gordon R. Martin v. State of Oregon,et al. Marion County Circuit Court No.91 010659-1. `'in itis case, the
plaintiffs claim wits based solely on the assertion that the State,through ODOT,illegally renewed it road approach
pennit that had been granted to the City of Tigard. Tie City prevailed both in the trial court and in ti-,e Court of
Appeais.
7
• Donald Pollock, et ul.v.City of Tigurd, Washington County Circuit Court Nos.C 930071 CV and C 930171 CV:
These are two condenutadion cases filed by the City to acquire property necessary for construction of Dartmouth
Street. The defendant property owners raised a variety of arguments in opposition to the City's motion to acquire
immediate possession of their property. The court ruled against all of those arguments and granted possession to the
City. (The other owners of right-of-way property voluntarily allowed the City to commence construction on their
property).
After the cont granted the City's inotion for immediate possession,the defendants filed affinnative defenses and a
counterclaim to the City's lawsuit, nosing arguments similar to those previously rejected by the court. The court
bifurcated the lawsuit into two triads,one to the court on defendants' affrinative defenses and one to a jury on the
amount of just compensation due the defendants. At the tri d to the court,all of defendants'affinnative defenses and
cuunterclaiins were dismissed based on the court's finding that defendants had previously waived their right to raise
the affinnative defenses and counterclaim. T"ne verdict in the triad to the jury established the just compensation due
the defendants for the property acquired by the City,and included an award to the defend,-.fits of their attorney fees and
expenses. The City filed an appeal for the purpose of challenging various rulings of the trial court, including the
court's rejection of the City's appraisal theory. The defendants have also filed an appeal,presmnably to challenge the
trial court's dismissal of thew affirmative defenses and counterclairn. Both appeals are pending.
Potential Impacts Resulting From Litigation
The City has prevailed in the principal legal challenge to the Dautinouth Street Local Improvement Project The City fully expects
that it will prevail in any additional legal proceedings- The City'nticipates that it will be able to levy assessments to the benefiting
properties and issue bonds to pennatnently finance the Improvement Project.
8
There are eight landholders within the LID. The following table summarizes the current land holdings.
Prol2erty Owner Approx.Acres 1994/1995 AV
Alexander 0.49 $327,080
Costco ,7.94 1,467,350
Holland Inc. 0.85 439,780
Martin 26.49 488,870
Montgomery 0.17 55,990
Pollock 7.98 633,710
Stewart 0.53 89,100
Waremart 17.91 7322.8SI1
Tont) 6�"t6 $10.824.70
Source: Washington County Department of Assessment and Taxation
Table 4
CITY OF TIGARID
Sources and Uses of Funds
Sources of Funds Amount
Note Proceeds $
Accrued Interest
Toad sources of funds S
Uses of Funds
Deposit to Construction Accomtt $
Underwriter's Discount
Total uses of funds
9
DEBT INFORMATION
BT SUMMARY
As of Decemi,^r 15,1995(includes this issue)
Outstanding debt
Short-teen $4220.00t1
Long-term:
Gross bonded debt(.111 debt with a genera obligation pledge) $8,120,000
Net direct debt(.111 debt paid in whole or in part by taxes) $6,655,000
Net overlapping debt(as of June 30,1995) x55341,743
Total net direct and overlapping debt $66.210,.743
DEBT RATIOS
Percent of
Per Capita Assessed Value
Assessed Value(AV) $81,058 --%
Gross Bonded Debt $241 .3%
Net Direct Debt $197 .24%
Net Direct and overlapping debt $1,962 2.42%
OTE: 1995-96 assessed value is$2,735,213,090.
Estimated 1995 population is 33.744.
DEBT LIMITATION
Oregon Revised Statutes 287.004 provides that the aggregate amount of general obligation bonded debt of cities s`aall not at any
time exceed three percent of the true cash value of all utxable property in the City.
1995-96 Assessed Value $2,735,213,090
Debt limitation(3%of TCV) 82,056,393
Applicable bonded debt 6,655,000
Dcbt i iargin 75,401,393
Percent of limit issued 8.11
DEBT AUTHORIZATION
No election is required to issue the notes.
DEBT MANAGEMENT
The City h is not defaulted on any debt of ligation.
46 Preliminary,subject to change.
10
FUTURE DEBT PLANS
Debt Service Funds
1 outstanding Bancroft bonds issued prior to 1986 are secured by a fund within tho City's Bancroft Bond Debt Service Fund. This
fund receives assessment payments for all Bancroft bonds issued prior to 1986. The City projected$200,000 shortfall in this fund
through the year 2000 caused by a mismatch in the anticipated cash flows. The City has undertaken conective actions to remedy
this shorf.•ll. The City has instituted an aggressive invesurent policy to maximize earrings on all prepayments and the City is
exercising early redemption provisions for outstanding high-coupon bonds. The City has also increased pursuit of delinquent
accounts and has mnsferred assets train other City funds which have benefited from Bancroft construction. The City anticipates
that the fund will begin repayment of t-ansfers beginning in FY 1995-96.
For all Bancroft bonds issued after adoption of the Internal Revenue Code of 1986,the City has established it new fund to act as the
debt service fund. This fund holds all assessment payments on bonds issued since 1989.
Table 5
CITY OF TIGARD
Outstanding Obligations
As ofDecernber 15,1995
Date Due Amount Amount
GENERAL OBLIGATION BONDS of Bonds Date Issued Outstanding
Tax Supported
G.O.Refunding Bonds,Series 1987(non-callable) 01/1/87 06/1/04 2,215,000 155,000
G.O.Refunding Bonds Series 1993A 05/1/93 07/1/04 6,935,000 6 500,00(
5-66 i S 000
ancroft Bonds
cries 1989(non-callable) 12/1/89 12/1/99 340,000 20,000
Series 1990(nun-callable) 08/1/90 08/1/05 2,244,000 835,000
Series 1993B 05/1/93 12/1/05 660,000 610,000
. 51.465-000
SPECIAL,ASSESSMENT BONDS
Lincoln 8c Locust Street Project 08/1/91 06-Alo!_ 405,000 X265 iiUO
SHORT TERM NOTES
Dartmouth Notes(this issue) 12/f/95 12/1/97 $4,220,000 :*4.22O O00*
* Does not include the 1994 Notes due January 1. 1996 in the principal amount of 53,080.000. The 1994 Notes are being
refinautced through the issuance of the Notes.
11
AL(RU'D VACATION
As of June 30,1995 the total vacation liability for the City was$429,142
ource: City of Tigard
Table 6
CITY OF TIGARD
Combined Debt Service Requirements
(As of June 30,1995)
Total
Fiscal Total All
Year Tax-Supported Bancroft
Gonds Bonds
1995-96 $1,490,594 $216,890
1996-97 1,380,645 218,428
1997-98 1,571,165 199,898
1998-99 1,622,925 201,285
1959-00 1,642,823 255,873
2000-01 24o,515 199,758
2001-02 251,994 29,560
2002-03 241,813 137,030
2003-04 250,819 24,500
2004-05 24,500
2005-06 502,250
Total $K 699.293 $2.009972
ource: Derived from annual financial statements.
City orrigard.
12
rmm
Table 7
CITY OF TIGARD
Overlapping General Obligation Debt
As of Lute 30,1995
Overlapping
Nett Nett
1994-95 Direct Direct
Assessed Debt Percent Debt
Overlapping District Valuation (in$000) Overlap (in$000)
Tigard/Tualatin School District S 3,425,791,481 S57,335 51.6'7 $29,560
Tri-Metropolitan[Transportation Districts 54,568,311,276 117,425 3.7 4,342
Port of Pordand2 59984,969,773 56,002 3.4 1,884
Metro4 54,374,970,294 61,515 3.7 2,283
Beaverton School District#48 8,957,687.561 98,390 2.8 2,766
Portland Community CoLege 42,1,97911,593 56.714 4.8 2,712
Washington County 17,557,392,470 90.639 11.5 10,418
Unified Sewerage Ageney3 16,474,354,599 84400 12.3 1,029
Tualatin Rural Fire Protection Disitici i2,i74,309.161 1,435 .6.6 238
Tigard Water District 2,028.657,771 155 70.7 111)
$548.010 $55,342
342
NOTE:There are three overlapping districts which have no outstanding general obligation debt
1. Net Direct Debt includes all tax-supported bonds. Bancroft Act general obligation improvement bonds and
isself-supporting bonds are excluded.
The Port of Portland had 5428,773,075 in revenue bonds outstanding as of June 30,1995.
3. The Unified Sewerage Agency had$188,489,197 in revenue bonds outstanding as of June 30,1995,
4. Metro had 556.480,000 in revenue bonds outstanding as of June 30,1995.
5. Tri-Met had$31,260,000 in revenue bonds outstanding as of June 30,1995.
Source: Municipal Debt Advisory Commission,Oregon State Treasury.
13
7AX INFORMATION
E PROPERTY TAX LIMITATION MEASURE
(This stumtn<-uy of Article XI,Sanction l IL of the Sta.,,of Oregon Constitution(Ballot Measure 5)does not purport to be a complete
explanation of this constitutionad provision or any legislation enacted to implement Article XI Section l lb_)
On November 6, 1990,Oregon voters approved a 1.5 percent property tax limitation measure,Ballot Measure 5 (now Article XI,
Section 11b of the Oregon Constitution). Therefore, beginning in fiscal year July 1, 1991, races imposed on property were
separated into two categories: (1)property roc revenues raised to fund the state's public school districts defined ru:"educational
services, provided by some unit of government at any level from pre-kindergarten through post-graduate training," and (2)
"revenues raised to fund government operations otter than school s.y,stems."
Property taxes for non-school goverrunent operations are limited to$10.00 per$1,000 of Real Nharket Value(defined herein;. For
public school systems collections,Article XI,Section I lb of the Oregon Constitution phases in the property tax limitation rates
over a five-year period from$15.00 per$1,000 of Real Market Value("P-MV")in fiscal year 1991-92 to$5.00 per$1,000 RMV in
fiscal year 1995-96.
Exemptions from Property Tax Limitations
Sections I lb(3a)and(36)of Article M specifically exempt taxes imposed to pay principal and interest on bonded indebtedness
provided bonds are:(1)authorized by a specific provision of the Oregon Constitution,(2)outstanding on November 6, 1990 and
were for'capital construction or improvements." or(3)are approved by the voters of a government unit and offered as general
obligations for 'capital construction or improvements." Capital construction and improvements are not defined in Article XI
Section 11b itself,but in new law which is described in the next section-
Implementing
ectionImplementing Legislation
Wpte1pter 459. 1991 Laws(House Bill 2550) is the statutory implementation of Article XI Section l lb and because effective on
mber 26, 1991. Chapter 459, 1991 Laws prescribes the overall tax assessment,administration and collection methods and
procedures which conform to the tax litaitations and requirements of Article IX Section 1 lb. In regard to bonded indebtedness,the
new law also defines key tents including"Exempt Bonded Indebtedness,""Capital Construction,"and"Capital improvements."
ORS 310.140(15)(b)exempts general obligation indebtedness issued before or on November 6, 1990,for cnpitl consaruction or
improvcinents.
ORS 310.140(15)(c)exempts genera obligation indebtedness issued after November 6.1990 which is voter approved and used for
capital construction or improvements.
ORS 310.140(17)-(19) defines capita: construction and improvements to include all activities related to the construction.
modification,replacement,repair,remodeling and renovation of structures which have a useful life of over one year;the acquisition
of land,or legal interest in land,in conjunction with the capital construction of a structure; the acquisition and installation of
machinery,equipment furnishings and equipment which have a life of over one year;and activities related to capitd construction
such,as planning,design,studies,permits,and obtdning financing. Structure is defined to mean any building or improvement to
real property.
ORS 289.160 provides that under certain conditions general obligation refunding bonds that replace genera obligation bonds
outstanding on November 6,J 990,may he issued and shall be deemed issued as of the date of the general obligation bonds being
replaced.
The Bonds satisfy ORS 310.140(15)(c);therefore the ad valorem tz, levy pledged for payment and security of the Bonds will not
be subject under the limitations of Article XI,Section I lb of the Oregon Constitution.
Real Martcet Value
der law,property taxes are calculated based on the"Real Market Value"(RMV)of each property. The propecty identification
date,the date on which the value of property is determined for tax purposes is now July 1,the beginning of each tax year. Section
I lb(2)(a)of the measure defines Read Market Value as"the minimum amount of cash which could reasonably be expected by in
14
informed seiier,wAing wiiho-at C m.pulSix::,in an.nn-s Length r - actinn during the,print fur which the nrnnerty is q(x-1" The
Suite of Oregon Attc.Ley General has opined that the measure requires Read Market Value to he the minimum market value during
e current tax year. Chapter 459, 1991 Laws specifies that Real Market Value is based on the inimmurn market value of property
ring the fiscal year. Fur i991-92, interim procedures for calculating Real Market Value were developed by the Oregon
eParunent of Revenue(the"Department"). For subsequent years,the Depa rmient hits developed permanent rules and procedures
for determining a property's Real Market-vaduc. For the purposes of tax ,,;culation Real Market Value equals Assessed Value
In the event that valuations decrease over he tax year,a reduced value appeals process is available to taxpayers,commencing at the
end of each fiscal year. (For further discussion,see the section titled"Assessment and Equalization".)
SYNOPSIS OF PROPERTY TAX ADMINISTRATION
The property tax is used by Oregon cities,counties,schools and other special districts to raise revenue to defray the expense of local
government. The State of Oregon has not levied property nixes since 1941 and obtains its revenue principally from income and
excise taxes.
Property tax administration,governed by the Oregon Constitution,the state's taxation laws and regulations of the Department of
Revenue,involves the process of assessment,equalization,levy and collection of taxes.
Assess.en¢and Equalizatio.
The process of identifyingand assigning a value to taxable property is termed assessment and the process of maintaining uniformity
of values between property owners and various classes of property is Ierined equalization. Assessment of properly is administered
by the County Assessor,except for public utility property,which is assessed by the Sate Department of Revenue. All property is
reappraised in six-year cycles,and v.Cues are adjusted a rmu.Wy to maintain assessments within a specified rage of county-wide
market value. Equalization of values is performed by the County Board of Equalization. Administrative and judicial remedies are
available to property owners who disagree with assessments.
Ouse Bill 2550,Chapter 459 of 1991 Laws,establishes a permanent equalization,notification and appeals process effective,fiscal
ar 1991-92. The property identification date is July 1, value notices and taut statements are sent together in October, and
valuation appeal proceedings commence after max statements are received. Under the new law there are two appeals processes,one
which begins in December which permits property owners to appeal the real market value shown on their October tax statements
and it second appeals process beginning the end of each fiscal year which allows property owners to challenge"at the RMV of their
property,determined as of the prior July 1,was not the tr:ininium RMV during the year.
The law establishes county Boards of Ratio Review(BORR)to take over some functions which were previously the responsibility
of the County Boards of Equalization. Each BORR performs ratio review and equalization and is responsible for the fiscal year end
valuation appeals process. County Boards of Equalization remain responsible for hearing the regul:-RMV appeals which begin
each December.
Property which is assessed for taxation includes all privately owned real property(Laud,buildings and improvements)and personal
property(machinery,office furniture,equipment and livestock). There is no property tat on household furnishings(exempt in
1913),personal belongings,automobiles (exempt in 1920), crops,orchards,business inventories or intangible properly such as
stocks,bonds or bank accounts. Property used for religious, fraternal and go;iernmental purposes is exempt,and reductions in
assessments are granted for veterans' homesteads,certain open space farm lands and historic buildings. The assessment roll,a
listing ofa-11 taxable property,is prepared ars of July I of each year.
Ballot Measure 5 and House Bill 2550(Chapter 459, 1991 Laws)do not affect fully exempt property. Taxes on partially exempt
property such as historic buildings and certain farm and forest lands are calculated by it stattutory valuation formula, which,
depending on each property.may be less that if the nixes were based on RMV.
Tax Levy
The process of ascertaining and declaring the aunount of taxes to be raised from taxpayers is termed marking the levy. Authority to
0vy property taxes is vested with the governing body of each Iocal government unit. The governing body determines the levy
uatlly before July 15th as part of the budget process. Annual budgets for local units are based on a fiscal year which begins July
st and ends the following June 30th. Constitutional and St-ttutory limitations on the amount that a governing body may levy are:
1.5
1. Levy Within 6% Limitation(Tax Base Levy), P.tax baso,approved by a majority of voters as it general election,
represents permanent authority to annually levy a dollar amount which cannot exceed the highest mnount levied in the
three most recent years'in which a levy was made,PLUS six percent thereof. Tax Base levies may also be increased
in proportionate aunounts for annexed territory. A local unit is permitted to have but one tax base levy and proceeds
may be used for any purpose for which the unit may lawfully expend funds.
2. Levy(.)utsid (Spccisl, :. .-.r 12onti^ ..g r cv; .S�ec;^d a„d Seri., e t a-r
') .,t levies a* empor. y trx:.^.g
authority permitting,the levy of a specific dollar amount for one year (Special) or for two to ten years (Serial).
Continuing levies are those approved by voters prior to 1953,acre permanent in natureand nd:re limited in amount by the
product of the voted tax rte and the assessed,or read market value of the unit. Since 1978 Serial levies may also he
established based on a specified tax rate but the term may not exceed three years; not more than four serial levy
measures may be proposed in a given year.Special levies are limited in size by the net tax rate freeze described later
in this section.
Ballot Measure 5 and the new laws to implement the,measure do not affect the existing tax levying authority of local government
units. However,Measure 5 does impose caps on total aunounts of property tax revenues local government units may collect.
Should the local government and its surrounding government units'combined taxes exceed the rate limits imposed by Ballot
Measure 5,new law specifies that the taxes owed to each jurisdiction will be reduced by an equal percentage in order to bring the
total rate in line with the measure's maximums.
3. Levy Not Subject to 6%Limitation(Debt Levy).Local units are required to annually levy an amount sufficient to
pay principal and interest costs for a bonded debt. Bond measures to he paid from future tax levies must first be
approved by a majority of those voting unless otherwise provided by law. Proceeds from a deb[ levy cannot be
diverted to another purpose.
Collection
The County Assessor extends authorized levies and computes tax rates. The Tax Collector bills all taxes and makes periodic
ittances of collections to tax levying units. To comply with Article X1,Section l lb of the Oregon Constitution,assessors acre
arged with calculating public school and other local government unit taxes separately, calculating any tax rate reductions to
comply with the mesnre's limits,and developing percentage distribution schedules. The tax collector then reports to each taxing
district,within five days,the a-nount of nixes imposed.
As each year's taxes for all taxing bodies within a county are collected,the money is segregated into one pool,with each taxing
body sharing in the pool on the basis of its tax rate, regardless of the actual collection experience within each taxing body.
Therefore,in application,the amount of each tatting body becomes a pro mut share of the total tax collection record of all taxing
bodies within the county. Thus,an overall collection rate of 90 percent of the county-wide levy indicates a 90 percent falx levy
collection for each taxing body.
Taxes are levied and become a lien on July I(the lien date for personal property is July 1)and tax payments are due November 15
of the same calendar year. Under the partial payment schedule the first third of Laces are due November 15,the second one-third on
February 15 and the remaining one-third on May 15.
A 3 percent discount is allowed if full payment is made by the November 15 due date,2 percent fora two-thirds payment- For late
payments interest accrues after each trimester at a rate of 1.33 percent per month. Property foreclosure proceedings are initiated
four years after the nix due date.
Tax statements mailed to property owners disclose the current and prior year's real market value of property,the tax rates and the
aunount of taxes due and the amount levied by each taxing unit,segregated by public school district and other local govemment
districts. Tax rates,expressed as an amount per$1,000 of the assessed real market value,are obtained by dividing the taxable real
market value of a local unit into the taxes levied. Additionally,tax statements show the taxes are due if levied without limitation to
the rate limits imposed by Article?O,Section l lb of the Oregon Constitution. Should reductions be required,tax statements show
the tax reductions for each segregated group and provide the actual tax amount due.
16
Table 8
CITY OFTIGARD
t'rincipal'taxpayers
As oflune 30,1995
Estimated
Assessed Percent of
Name Product or Service Valuation City AV
WinmarCompany Washington Square Shopping Mall $74,335,600 3.0217,
SF Oregon Co.,Ltd. Lincoln Center Office Park 55,061,200 2.24
Pacific Really Associates Oregon Business Park 53,146,490 2.16
GTE Northwest Telephone Company 34,133,266 1.39
Spieker Properties Park 217 Retail Office Center and 27,844,010 1.13
Nelson Business Park
Nesbitt Partners Embassy Suites Hotel 20,465,000 0.83
Robinson Trust Scholls Business Center 14,718,700 0.60
Spiek.,r-Hosford-Eddy-Southern Limited Tech Center Business Park 13.876,460 0.56
Partnership
The May Department Stores Co. Meier&Frame Depa=puent Store 12,494,700 0.51
Westwood Holding Corp. Tigard Town Square Shopping 12.343.290 iim
Center
Total Principal Taxpayers $318,418,656 12.95
All Other Taxpayers 140 319.893 ii 0
Total Assessed Value g2 4�ft 738 549 1f10 M-002
urce: City of Tigard.
Table 9
CFTY OFTIGARD
Consolidated 1994-95 Tax Rate
Lone A(ea 23-7-
District School. government Unlimited Total
Washington County $1.1501. $0.3673 $1.5174
Co-op Library .3788 0-3799
Major Street IMPR .4468 0-4468
ESD-Washington $.I810 0.1810
PCC .6930 0.0957 0-7887
SD#23-Tigard 12.3830 1.6305 14-0135
Water-Tigard 0.0590 0.0590
Bonds-Unified Sewer 0.6927 0.0927
TV Fire&,Rescue 1.6324 0.0265 1-6589
City of Tigard 1.6549 0.5262 2.1811
Port of Portland 0.0721 0.0578 0-0299
Metro Service Dist 0.0992 0.2701 0-3693
Tri-Met 0.0435 0 143;
Total Tax Rate $13.2570 $5.4343 $3.2693 $21.9606
Limited Tax Rate $5.0000 $5.4343 $3.2593 $13.7036
TE:Code Area 23-74 represents the highest assessed value,53.7 percent of the total assessed value of the City.
Source: Washington County Assessors Office
;7
FINANCIAL INFORMATIOPq
SIS OF ACCOUNTING
The governmental fund types are maintained on the modified accrual basis of accounting. The propriety fund type(enterprise fund
and Pension Trust Fund)are accounted for utilizing the accrual basis of accounting. The City's accounting practices conform to
generally accepted accounting principles.
FISCAL YEAR: July I to June 30
AUDITS
The Oregon Municipal Audit Law(ORS 297.405 - 297.555)requires in audit and examination be made of the accounts and
financial affairs of ever, municipal corporation at least once a year. Unless the municipality elects to have the audit performed by
the State Division of Audits,the audit shall be made by accountants whose names are included on the roster prepared by the State
Board of Accountancy.
The City audits for the fiscal years 1983-84 thrcugh 1992-93 were performed by Coopers and Lybrand,CPAs,Portland,Oregon.
The auditors did not review the tables and offer no opinion regarding the tables. A compiete copy of the City's annual financial
statements may be obtained from the City's Finance Department.
BUDGETING
The City prepares annual budgets in accordance with provisions of ate Oregon Local Budget Law, which provides standard
procedures for the preparation,presentation,admirtistration and appraisal of budgets. In the months of January through May of
each year a proposed budget is prepared tinder supervision of the City's Budge:Committee. This committee consists of the Council
and in equal nnnber of electors of the City. These electors are appointed to the Committee. All members of the budget committee
have an equal vote and final approval of the budget.
or to adoption,a proposed budget must be approved by the budget committee. In in advertised public meeting,the budget
rrntittee reviews the budget and the "budget message," which explains the budget and significant changes in the local
government's financial position. All budget conunitter mee•ings are open to the public.
Following budget approval by the budget committee,another public hearing is held. A budget summary and notice of hearing are
published prior to the hearing. Publication is governed by strict requirements as to time and[node.
A public herring is then held after which time the Council adopts the final budget,makes appropriations and declares tax levies.
Prior to the public hearing,a budget summary and notice of hearing are published. Publication is governed by strict requirements is
to time and mode. After the budget hearing, the Council considers the citizen's testimony and,if necessary,alters the budget
subject to statutory limitations upon increasing taxes or fund allocations without further publication and hearing.
An election must be held to approve the City's tax levy to the extent that the levy exceeds the City's "Tax Base." A tax base is
equal to 106 percent of the largest regular tax levy within the prior six percent limitation for the prior three years. The 1995-96 tax
base far the City was$4,526,835. In addition,the City alsc,levied$1,439,39.5 for debt service. The 1994-95 tax base for the City
ware 4,26%,990. The City also levied$1,547,196 for debt service.
After the ope-sting levy election,if one is required,the Council prepares a formal resolution which adopts the budget,authorizes
taxes to be levied and sets out a schedule of appropriations. This resolution must be adopted not later than June 30. Two copies of
the budget are submitted to the Assessor's Office before July 15 so that the tax levy may be certified.
Supplemental budgets may be prepared ars needed during the fiscal year utilizing transfers between the appropriation categories
which are approved by the Council. Supplemental budgets are considered and adopted by the same process as the regular budget,
including public hearings and notices of hearings.
18
Table IO
CITY OF TICS ARD
Summary of 1995-96 Adopted Budgets
Percent
Fund Allocation Maior Revenue Sources Amount of Fund
General $12,729,880 Property t x s2 $4,390,200 34.5%
From other agencies 1,768,600 139
Fees&charges 1,221,080 9.6
Franchise revenue 1,561,200 12.3
Beginning fund balance 3,300,000 25.9
Sanitary Sewer` 3,69.4,360 Beginning fund balance 2,300,000 62.3
Charges for services 990,000 26.8
Storm Sewer 1,876,360 Charges for service 673,200 35.9
SDC Storm Drainage 153,160 8.2
Beginning fund balance 1,000,000 53.3
Water#15 7,359,870 Watersa':-.s 3,778,380 ;1.3
Developer fees 173,000 2.4
Beginning Rand balance 3,300,000 44.8
State Gas Tax 2,037,200 State Gas Tax Share 1,546,000 75.9
Beginning fund balance 450,000 22.1
Traffic Impact Fee 2,414,000 Traffic Impact Fee 944,000 39.1
Beginning fund balance 1,400,000 58.0
::ter SDC#27 2,274,485 Other revenue 324,485 14.3
Beginning fund balance 1,900,000 78.7
General Obligation Debt Service 1,685,363 Property Taxes 1,505,163 89.3
Beginning fund balance 150,000 8.9
Bancroft Bond Debt Service 3,673,304 Proceeds/Cillections 3,286,721 89.5
Beginning fund balance 230,000 63
Interest from other sources 146,583 4,0
Special Assessment CIP 670,000 Beginning fund balance 670,000 100.0
Water Capital Project#57 685,000 Beginning fund balatnce 650,000 97.0
Other Funds 3.260952
Total $42,359,774
NOTE: Columns may not foot due to rounding
1. Summarizes revenue sources greater than 5 percent of fund.
2. Includes current and delinquent taxes.
Source: Adopted 1995-96 Budget City of Tigard.
19
Table 11
CITY OFTIGARD
® General Fund
Consecutive Balance Sheets
As of June 30
Assets 1991 1992 1993 1994 1995
Cash and investments $2,129,019 $2,719,395 $3,120,802 $3,678,451, $4,171,305
Accounts receivable -- 93,640 5,850 4,303 11
Property taxes receivable 245,530 276,843 266,102 225,767 195,795
Contracts receivable -- -- -- --
Due from other funds 369,503
Deposits -- -- -- --
Prepaid Insurance 74,630 80,623 94,940 122,340 122,768
Inventory of gasolip-e 24.331 19A3 lK272 9 1�)R
Total assets ti2,943.O13 S3JM931 $3.505.966 `,4.040.059 $4,509,063
Liabilities and fund balance
Liabilities
Accounts payable&Accrued Liabilities $475,066 $699,892 $497,903 531,660 $641,080
Deposits 95,169 67,284 56,672 85,421 119,561
Due to other funds 220,458 -- -- --
Deferred Revenue 186,990 210,920 205,635 175,280 143,723
Contracts receivable -- --
liabilities 977,683 978,096 760.211) 792,361 904364
Fund balance
Designated 98,961 219,053 113,212 131,538 141,952
Undesignated776 1669 1,991.79 2,632.544 3,I1ti.160 3,462.747
Total fund balance and other credits 1,86 5,330 2,210,835 2?45,756 4,247,698 3,604,699
Total liabilities and fund balance $2.843,013 3 188 931 3 505 966 $4.040.059 $4.509,063
Source: Derived from auutual finauteial statements.
20
Table 12
MY OFTIGARD'
o General Fund
Consecutive Statement of Revenues and Expenditures
For Fiscal Year Ended June 30
Revenues 1991 1992 1993 1994 1995
Taxes $2,554,087 $3,446,324 $3,i61,694 $3,972,304 $4,225,130
Franchise fees 1,179,833 1,287,794 1,326,686 1,447,668 1,446,159
Licenses and pennits 875,251 812,322 590,963 1,332,954 1,158 984
Intergovemmentnlrevenues 1,187,126 1,587,773 1,537,538 1,541,289 1,699,896
Charges for services 48,156 85,936 92,396 92,211 103,423
Fines and forfeitures 259,497 322,618 316,947 367,982 325.970
Miscellaneous 438.493 284.276 216.489 174316 351.387
Toad revenues 6,542,431 7,827,643 8,236,713 8,868,724 9,310,943
Expenditures
Cornmunity services 4,312,354 4,517,483 4,746,579 5,688,712 5,656,128
Community development 1,616,172 1,431,756 1,556,326 1,625,186 1,832,998
Policy and administration 241,351 1,072,616 1,134,955 1,216,411 1,174,462
City-wide support functions 329,631 227,869 171,167 249,100 237,105
Capital projects 385.893 231,820 104,825 191.701 53,249
Toud expenditures 6.879 461 7.481.538 7.761.792 8.371J04 &953,942
Excess of revenues over
der)expenditures (336,970) 345,505 534,921 497,620 357,001
Begiitnhig fund balance 2,202,300 1,1,65,3 30 2,210,835 2,745,756 3,247.698
Residual equity transfer in 4,322
Ending fund balance 1 865 330 $2.216.835 92.745.756 $3.247.698 $3.(.[14.699
Source: Derived from aunuad Financia statements.
21
Table 13
CrrY 0F TI(:ARD
C Bancroft Bond Debt Scr vice Find
Consecutive Biboace Sheets
For the Period Ended Jum,30
Assets 1991 1992 1993 1994 1995
Cashandinvestments $465,167 $557,127 $721,695 :3325,813 $150,360
Assessments receivable 3,181,495 2,890,873 2,196,388- 2,035,1107 1,862,079
Accrued interest
on delinquent assessments 49,022 52,499 52 698 60397 69,347
Total-sets }9 F95 694 $x,500.498 $2.97().781 $2.421.607 x2(.)81.78(,
Liabilities and fund balances
Liabilities
Accounts payable&Ace med Liabilities $ 2,580 $ 2,044 $ 280 $ 1,130
Accrued interest&Delinquent Assessments 49,022 50,026 52,619 58,215 69,347
Assessment liens receivable 3,170.132 2,884,007 2,192,972 2,006,891 1.860,343
Due to other Faulds 293,004 -- -- --
Total liabilities 4,514.738 2.936,077 2,245,971 871 2 066 296 1029.690
Unreserved .-
Fund bai:mce 190,946 564.421 724,910 355,371 152.096
Total liabilities and fund balances $3_695.684 $3500.498 $20711.781 2.421,6117 x2081.786
Source: Derived from annual financial statements.
22
'Cable 14
CITY OFTIG ARD
Bancroft Bond Debt Service Fund
Consecutive Statement of Revenues and Expenditures
For the Period Ended June 30
1991 1992 1993 1994 1995
Revenues
Speckdassessments $297,46' $288,574 $688,664 $186,036 $146,548
Miscellaneous 290.945 271,039 254,056 190.097 171.623
Total revenues 979413 559,612 942.720 376.133 319,171
Expenditures
Debt service 2,696,635 979,003 911,369 3,825,672 521,445
Total expenditures 696.635 979.00 911,369 3,'25.672 521.445
Excess of revenues over
(under)expenditures (=,118 222, 0319 4 11 31,351 (3.449.53912( ti3.2741
Other Financing Sources:
Bancroft Bond Proceeds 2,15-,366 324,862 7,765,557 3,080,000
Operating transfers in 65,000 478,004 75,000 --
Patytnent to Escrow Agent -- 1711
tad other financing sources 2,222366 802,966 129 138 4.080M(H)
Excess Revenues and other Sources
over(under)expenditures 104,144 383,475 160,489 (369,539) (203,274)
Adjustment to eliminate
Special Assessment Fund -- 637,484 -- -- --
Beginning fund balance 76.902 180.946 564.421 724.910 455.370
Ending fund balance $iR0.946 k564A2I 724910 $355.371 ti 152.09(,
NOTE: The positive fund bpaaulce figure results from a chvtge in finvtckd reporting standards from the Governmenu l
Accounting Standards Bared Statement No.6,which went into effect July 1,1987.
Source: Derived fromannual financial statements.
23
ECONOMIC AND DEMOGRAPHIC INFORMATION
T c:City of Tigard, located in northwesters Orem tn,in the Pordand rnetropolita n rea,began as a small town,developed its a
drootn conununity, and now has a diverse economic base. Major employers include manufacturers of machinery, fabri,:rated
mein,and wood products,as well as newspaper pubiishers and tacking.
LAND USE PLt+NNING
State law,--wires comprehensive im l use planning to beaccomplishedat the city and county levels_ T•„pr.,vi=_Je p,.nmon direction
and consistency within each city and county comprehensive plan, the Oregon Legislature directed the Land Conservation and
Deveioptnent Commission(LCDC)to adopt sure-wide planning goals and guidelines. All zoning and development within a city or
county must r:xBonn to the appropriate comprehensive plan. Nineteen statewide planning gods have been adopted,dealing with
matters which include:
Economy Air,Water and Land Resources Quality
Housing Agriculture Lands
Urbanization Public Facilities
The Washington County comprehensive plant for the urban areas was adopted in June 1983 and acknowledged by LCDC in October
1983. The rural portion wits adopted in April 1982. After revision,it was ack-nowledged in April 1984,
The City of Tigard submitted its plate,to LCDC i'n itwas ledgcd in 1981.. The most rcccpr r.mprehensive plan update
was performed in 1991.
As part of a comprehensive plan.,an urban growth boundary for the year 2000 tilust be established. This boundary is designed to
contain urban sprawl and should encompass adequate land in each zoning cateorry to support predicted population growth. In the
Portland Metropolitan Area,Lite Metropolitan Service District has responsibility for adoption,amendment and:maintenance of a
regional urban growth boundary. Local comprehensive plans must conform to the regional urban growth boundary.
)PULATION
In 1970,nine years after its incorporation.in 1961,the City's population was estimated at 5,302. Ten years later it had nearly tripled
in size,to 14,900. Between 1984 and 1994,its population increased by 83 percent to an estimated 33,730,which was an anual
growth rate of 6.2 percent. Approximately 22 percent of this growth was due to annexation.
The population of Washington County increased from 260,200 in 1984 to 359,500 in 1994; this represents it 3.3 percent
compounded arcual rate of growth. The County is the fastest growing in the State.
EMPLOYMENT
The Portland Standard Metropolitan Statistical Area consisted of Multnomah,Clackamas imd Washington counties in Oregon,and
Clark County in Washington until the 1980 Census,after Clark County was eliminated from the area and Yatthill County added,
malting it the Portland Primary Metropolitan Statistical Area("PMSA"). In 1994,the PMSA became the Portland-Vancouver
PMSA and now includes Multnomah,Washington,Clackamas,Columbia and Yanhill counties in Oregon,and Clark County in
Washington. Metropolitan statistical areas are based on commuting patterns within it metropolitan area,and are used primarily for
labor,employment and unemployment statistics.
The ina jor trend in the Portland economy since 1978,has been greater diversification. Employment in manufacturing,construction,
mining,and government is proportionately lower in Portland than in the United States. But employment in trade,services,finance,
insurance.real estate,and transportation is proportionately greater L-n Portland than in the United States,
Between 1985 and 1994, employment in nun-manufacturing increased by 195,900 jobs, amd employment in manufacturing
increased by 19,300. In 1994 manufacturing employment accounted for 18.68 percent and non-manufacturing 83.92 percent,of
total wage and salary employment The preliminary unemployment rate for the PMSA wis 4.4 percent.
Orvie!and W cellaneous. This is the largest employment sector i;:the Portland PMSA,with 26.63 percent of the jobs in 1994,
cllccting Portland's importance as a service center for the region.
24
Trade. Employment in wholesale and retail trade accounted for 25.27 percent or the jobs in the Portland PMSA in 1994,malting
this the second largest employment sector.
ngth in domestic warehousing and di—ribution owes to Portland's geo;anphic location at the hub of interstate freeways and
taih'oads in the Pacific Northwest. International trade further eninmces the domestic distribution business in Portland. Being
located along the Columbia River with a deep drift channel to the Pacific Ocean has made Portland one of the West Coast's leaders
in yearly export tonnage.
Manufacturing. Empioymeni in&i.irufactur:,-,g accourued for 16.09 percent of the jobs in the Portland PMSA in i994. Durabie
goods manufacturing accounted for 69 percent of all manufacturing jobs and 11 percent of all wage and salaried employment.
Although there have been decreases in employment in the wood products industry many have been offset by growth in the
electronics industry.
The state's economy is largely based on the lumber and wood products industry,which accounted for about 24.7 percent of the
states manufacturing employment in 1994,and on food and kindred projects,which accounted for about 11.4 percent. The Portland
economy is less dependent on these sectors(8.7 and 9.5 percent)because of its increasing diversification. The four most important
manufacturing sectors in the Portland PMSA are instruments and related products, machinery, electronic and other electrical
equipment,and meads.
Government. The fourth larges[sector in the Portland PMSA is government,with 13.51 percent of the jobs in 1994. Local
government is the largest of the governmental employers,including school districts,counties,cities,and special districts.
Economic Development
Most of the industrial land in the City is zoned for light industry. Currently,the total amount of vacant industrial land in the City is
107 acres,with another 145 acres zoned for commercial use and 508 acres zoned ror residential use.
Industrial development is concentrated west of Interstate 5,along the Burlington Northern and Southern Pacific railroad tracks,and
long Southwest 72nd Avenue south of Highway 217. A number or business and industrial parks have been developed in these and
er locations over the past few years. Tenants include many high tech industries. Ainong the major business/industrial parks are:
Name Square
e Footage Usage
Oregon Business Park 2,100,000 Mixed
Lincoln Center 724,000 Office
Nelson Business Center 402,410 Mixed
Scholls Business Park Tigard 313,379 Mixed
Park 217 254,000 Mixed
Tigard Distribution Center 150,000 Mixed
PacTrust is constructing a mixed-use development on 60 acres adjacent to the firm's Oregon Business Park. The park is being
developed and should be completed within the next couple of years,with 800,000 to one million square feet of space at completion.
The$40 million park will incorporate office,retail and flex space,as well as a restaurant and hotel.
Three major projects are in the planning stages. The Tri-County center is it five-building, 500,000-square-foot shopping center
recently approved by the City. The Tigard Promenade is a proposed complex next to Highway 217, with proposed cinemas,
restaurants.hotel and health club. The City has approved plans for the hotel.
A new 200,1100-square-foot shopping+nail is now under construction,with a Safeway store as the anchor tenant. Other projects in
the City include it new 110,0100-square-Coot Home Depot,a 155,415-square-foot Costco and the 27,000-square-foot Payless Drug
Store,all completed in 1994. A number of medium-sized office buildings have also been built in the City over tae past three years
UTILITIES
Northwest Naturai Gas supplies natural gats to the area; electricity is provided by Portland General Electric Company;and both
0Ueneml Telephone Electronics and U.S.West Communianions provide telephone service.
IILIC:FAC:ILI-i`IES
25
Sewer
The UnilietlSewerage Agency provides treatment facilities for it 102-square-mile urban area of Wash,agton County,inciudirg must
the incorporated areas. The Agency,which was tinned in 1970,operates seven treatment plants. The City owns and maintains
own collection system.
Water
Before Januauy 1, 1994,residents of the City received their water from the.Southeast Washington Coun! Joint Water Agency(the
"Agency")and the Tualatin Valley Water Ltistr;ct. ,After than date,the City incorporated due Agency as it City water deprinteni.
The City draws its water from the Clackaunas River through the Lake Oswego system and from Bull Run Reservoir,through the
City of Portland's system. The water source for the Tualatin Valley Water District is also Bull Run Reservoir.
Public Safety
Tualatin Valley Fire and Rescue,which serves much of urban Washington County,provides the City with fire protection.
The City Police Department hits 54 employees,who are dispatched by the Washington County Communications Agency(WCCA)
which is an intergovernmental effort among all Washington County law enforcement organizations.
Health Care
Meridian Park Hospital is the closest major health care facility,located within minutes of downtown Tigard. Many other health
care facilities can be found in the metropolitan area,including public health facilities,hospitals and private clinics.
Education
Tigard School District No. 23J,serving the. Tigard and Tualatin area, enrolls approximately 9,000 students. Because several
retirement communities are located in the Tigard area,the School District makes extensive use of retired volunteers is classroom
aides. Additionally,the City overlaps approximately two percent of the Beaverton School District.
ae main cmnpus of Portland Community College is located four miles east of Tigard. Approximately 30,000 students are enrolled
each term at this campus-
Other post-Secondary education'facilities in the:ictropolitn area include the Oregon Health Sciences University,Northwest School
of.Law,Portland Suite University,Lewis and Clark College.Reed College, and numerous other private colleges and training
centers.
TRANSPORTATION
Major highways through the City include Interstate 5 which tuns the length of the Pacific Coast,and Sante Highways 217 and 99W.
The suburban areas formed mainly along these highways west of the Portland metropolitanarea. Street patterns have grown up on it
rural hase,r csulting in some inconvenience and congestion.
The southem terminus of the Interstate 205 Beltway is located two miles south of the City and provides access to Clacka imis
County and East Multnoioah County,as well its to Clark County,across the Columbia River in Washington.
Rail freight service is provided in the City by the Burlington Northern and Southern Pacific Railroad.
Major airlines operate out of Portland International Airport,approximately 17 miles from the City. Air transportation is also
available at the Hillsboro Airport,15 miles northwest of the City. These airports are operated by the Port of Portland.
AGRICULTURE
Although over time agriculture has become less important as a source of employment in the County, it still contributes to the
economy of the County. The rich soil,abundant rairfall and mild climate of the Tualatin tin Valley provide appropriate conditions for
it variety of crops, including ormmnent l plants, wheat, berries and nuts. In 1994,gross farm sales in Washington County were
77.546,000.
26
A:;hough the Oregon wine industry is relatively young,the vineyards and wineries of Washington County have grown rapidly since
their beginnings in the 1970s. In 1994, 186 acres of grapes were heaving Inuit:another 232 acres had been planted but had not
niched fruiting maturity,according to the Oregon State Extension Service. By 1993,the beiaing acreage had increased to Mtn,
'th an additional 149 planted, and total production of 1,786 tons of grapes. There are presently nine bonded wineries i.i the
-County,including the hugest berry wine producer in the State,Oak Knoll Winery of Hillsboro. The premier red.vine in the County
and Susie is pivot noir. The Washington County Wine Growers Association has joined with the statewide organization in the
promoting of local products both within Oregon and to the broader national audience.
li(_iUJllV ii
Major ttiausing subdivisions under development over the pact three years include: Castle Hill,with 126 lots:Eagle Poht!e,with 64;
Anton Paj'<No.2,with 53;and Pebble Creek,with 65. Apartment complexes planned or under development include Farm Creek
Village,with 61 units;M<vn Street Apautrnents,with 239;and Arbour Heights,with 348 t shits.
WFORmATY0N SOURCES
Historical data have been collected from generally accepted standard sources, uswill-y fro n public bodies. In Oregon data is
frequently available for counties and also,to a somewhat lesser degree,for cities. Because the City is located within the Portland
Primary Metropolitan Statisticad Area, this statement presents data for than area,as well as for the County and the City when
available.
ECONOMFC ANIS DEMOGRAPHIC TABLES
The tables that follow provide further infonnation about the economic and demographic nature of the City.
27
Table 15
CITE!Cr
Population Estimates
City of Percent Washington Percent Percent
Tigard Change County Change Oregon Change
i940 39;194 -- 1_089,684
1950 -- 61,269 56.3% 1,521,341 39.6%
1960 -- 92,130 50.4 1,768,687 15.3
1970 5,302 -- 157,920 71.4 2,091,533 183
1980 14,900 181.0 247,800 6.3 2,639,915 2.2
i9c+4 18,4500 260,200 5.0
195 20,250 9.8 268,000 3.0 2,675,800 0.6
1986 20,765 2.5 273,300 2.0 2,661,500 -0.5
1987 23,335 12.4 280,000 2.5 2,690,000 1.1
1988 25,510 9.3 287,000 2.5 2,741,000 1.9
1989 27,050 6.0 295,000 2.8 2,791,000 1.F
1990, 29,650 9.6 313,000 6.1 2,847,000 2.0
1991 30,835 4.0 328,500 4.9 2,930,000 2.9
1992 31,271- 1.4 340,000 3.5 2.979,000 1.7
1993 32,145 2.8 351,000 3.2 3,038,000 2.0
1994 33,730 4.9 359,500 2.4 3;`42,0110 1.5
1984-94
Mmpounded
-& Iual Rate
of Change 6.2% 3.3% 1.5%
1989-94
Compounded
Annual Rate
of Chttnge 4.5% 4.0% 2.0%
1. 1990 Fedend Census figures are as follows: City of Tigard 29,344
Washington County 311,544
State of Oregon. 2,842,321
Source: Under State law,the State Board of Higher Education tnust est4tnate annually the population of Oregon cities and counties
so that shared revenues may be properly apportioned. The Center for Population Research and Census at Portland State
University perforins this statutory duty.
28
I MEN=
Table 16
WASHINGTON COUNTY
Portland PMSA
Average Annual Un_mployment
As a Percent of Labor Force
Portland State of
Year PMSA Oregon United States
1985 7.4% 8.8 7.2
1986 7.1 8.5 7.0
1987 5.1 6.2 6.2
1988 4.7 5.8 5.5
1989 4.5 5,7 5.3
1990 4_2 5,5 5,5
1991 4.7 6.7 6.0
1992 6.4 7.5 7.2
1993 6.0 7.2 6.8
1994 4.4 5.4 6.1
Source: State of Oregon Employment Division,Deparuncnt of Hunuut Resources. _
29
Table 17
PORI LAND PMSA t
Labor Force 1984-94
By Place ofltesidence
Resident
Civilian Unemployment as a Total
Labor Force Unemployment Percent of Employment2
Year (000) (000) Labor Force (000)
1984 600.6 48.2 8,i) 552.4
1985 594.7 44.0 7,4 550,7
1986 608.1 43.8 7.1 564.3
1987 632.9 33.4 53 599.;
i948 6n910A _ 4.7 618:3
1989 675,0 30,2 4.5 644.8
1990 683.0 28.7 4,2 647.0
1991 699.0 33.0 4,7 666.0
1992 713.7 45.4 6,4 668.3
Portland-Vancouver PMSA
199' 905.0 54.5 6.0 850.5
1994 937.0 41.4 4.4 895.6
1. The Portland Primary Metropolitan SUttistic.ti Area(PMSA)includes Clackamas,Multnomah,Washington.and Ytunhill Counties.
Data for 1985 are not comparable to prior years because of the inclusion of Yamhill County and the exclusion of Clark County,
Washington.
2. Includes non-agricultural wage and salary, self-employed,unpaid ftunily workers, domestics, agricultural workers, and labor
ft dky ut.uats.
Ource: Staite of Oregon Department of Hmn.m Resources,Employment Division.
30
mom
Table 18
PORTLAND PMSA
Employrti
Annual Averages and Percent Distribution by Industry
(By place of ertploymenr)
1985 19941
Annual Percent �Ar,nual Percent
Average(000) of Total Average(0100) of Total
Non-Agricultural
Wage&Salary Employment 586.6 100.00% 801.8 100.00%
Manufacturin 109.6 18.68% 128.9 16.08%
Durable goc23 76.6 13.06% 88.7 11.06%
Lumber&wood products 19.2 1.74% 8.7 1.09%
Other durable goods 66.3 11.30% 80.1 9.991/1,
Nondurable goods 33.1 5.CAIli. 40.2 5.01%
Food products 9.1 1.5517, M 1.18%
Other nondurable goods 24.0 4.09% 30.7 3.83%
Nonmanufacturing 477.0 81.32% 672.9 8392%
Construction 21.8 332% 39.9 4M%
Trmsportation,cotntnunication
&utilities 378 6.39% 45.7 5.70%
Trade 151.0 25.74% 202.6 25.27%
Finance,insurance&real estate 45.3 7.72% 62.1 7.75%
Services 132.8 22.641K, 213.5 26.63%
Government 87.5 14.92% 108.3 13.51%
NOTES: Columns may not foot due to rounding.
From 1980 through 1983, the Portland Primary Metropolitan Statistical Area (PMMA) included Clark County.
Washington;between 1984 and 1992,the PMSA included Clack<unas,Multnomah, Washington and Y=hill counties.
Beginning in 1993, Columbia County in Oregon and Clark County,Washington were added, to create the Portland-
Vancouver PMSA.
Source: State of Oregon Department of human Resources,Employment Division.
31
Table 19
CITY OFTIGARD
Major Employers
=9'•93
Employer Product or Service Employment
Precision Interconnect Cables for electronic medical apparatus 510
Nordstrom's Department store 500
Farmer's Insurance Insurance 427
Puget Corporation of Oregon Plastic injection molding 376
Automated Office Systems Office equipment deader 375
US West Direct Publishing 356
Key Pacific Corp. Bank operation&2 branches 344
Physicians Medlab Outpatient blood testing 316
JC Penney Company Department store 275
Fred Meyer Shoppit.g center 242
Coe Manufacturing Company Veneer plywood machinery 235
Avia Sports shoes&apparel 230
Fiskars Cutlery 211
FLIR Systems,Inc. Thermal imaging systems 197
Northwest Landscape Industries Landscaping 190
GTE Communications service 184
Williams Air Controls Air brakes and valves 177
Mervyn's Departrnent Store Department store 174
Embassy Suites Hotel Hotel 158
Stewart Title of Oregon Fimmcerba n ing/real estate 150
ource: City of Tigard.
Table 20
WASHINGTON COUNTY
Retaii Trade
(in$000)
Year Washington County .)regor.
1983 $1,775,460 $14,879,990
1984 1,794,963 14,267,550
1985 1,925,998 15,159,386
1986 2,051,133 15,872,208
1987 _ 2.166.386 16.183.394
1988 2,373,691 17,724,240
1989 2,894,343 20,225,882
1990 3,205,427 22,416,935
1991 3,392,408 23,262,179
1992 3,679,578 25,235,324
1993 4,086,641 27,767,4-16
1983-93
Compounded Annual
Rate of Change: 8.69% 6.44
urce: Sales&Marketing Management,Survey of Buying Power.
32
Table 21
WASHINGTON COUNTY
income Estimates
Per Capita Income Median Household
Totai Personal aEffectivc buying;Income
Income Washington Washington
Year (in millions) County Oregon U.S. County Oregon
1983 $3,475 $13,305 $11,281 $12,100 $29,106 $20,825
1984 3,823 14,492 1I,613 13,116 31,900 22,796
1985 4,030 15,028 12,641 13,899 30,999 21,395
1986 4,265 15,525 13,128 14,597 33,035 22,306
1987 4-590 16,350 13,851 15,425 32,392 22,309
1988 5,079 17,459 15,002 16,600 33,482 22,464
1989 5,696 18,876 16,193 17.696 33,780 23.624
1990 6,302 20,020 17.201 18,667 36,320 26,9[14
1991 6,645 20,279 17,768 19,201 37,739 29,300
1992 7,209 21,279 18,667 20,137 39,134 30,394
1993 7,704 22,046 19,437 20,800 40,850 31,744
Source: U.S.Department of Commerce,Bureau of Economic Analysis,Survey of Current Business.
Sales&Nfarketing Management,Survey of Buying Power.
Table 22
WASHINGTON COUNTY
Gross Farm Sales
(in$000)
Washington Ccunty Oregan
Year Crops Livesteck/Products Total Crops Livestock/Products Tota:
1984 $74,280 $19,506 $93,786 $1,178,167 $639,792 $1,817,959
1985 93,858 18,579 102,437 1,188,638 625,739 1,814,377
1996 91,216 19,897 111,113 1,266,969 661,385 1,928,354
1987 99,561 19,229 119,790 1,333,924 680.650 2,014,574
1988 121,001 17,669 138,670 1,564,836 741,674 2,306,510
1989 124,409 18,928 143,337 1,767,943 767,924 2,535,867
1990 133,113 20,373 153,486 1,749,060 818.087 2,567,147
1991 140,429 18,645 159.073 1,760,819 798,625 2,559,444
1992 148,278 20,172 168,450 1,953,734 304,380 2,758,114
1993 152,523 19,987 172,510 2,165,369 790,436 2,955,805
1994 157,410 20,136 177,546 2,283,366 764,285 3,047,651
Source: Extension Economic Information Office,Oregon State University.
33
Table 23
CITY OF TIGARD
BuRdi ng Activity
City of Tigard
Total
Total Residential Non-Residential
Number of Permits Costs: Construction Costs: Construction
Single Multi- and Aiter4tions and Alterations
Year Family Fancily (in$000) (in$000)
1984 175 34 $15,889 $ 3,053
1985 283 338 28,473 6,818
1986 396 126 31,274 11,46.5
1987 372 286 36,533 20,601
1988 297 229 30,333 24,364
1989 289 386 34,606 23,471
1990 303 287 40,012 i8,133
1991 176 0 20,942 27,950
1992 298 0 32,130 20,375
1993 451 298 65,906 58,015
1994 344 108 53,775 37,318
Washington County
Total
Total Residential Non-Residential
Number of Permits Costs: Construction Costs: Construction
Go Single Multi- and Alterations and Alterations
Year Family Family (in$000) (in$000)
1984 1,338 414 $107,471 $124,421
1985 1,548 2,287 180,901 135,741
1986 1,834 1,273 177,678 92,426
1987 1,946 1,407 203,413 120.911
1988 2,113 1,355 240,009 130,708
1989 2584 4,563 411,348 159,972
1990 2,694 2,371 407.656 i11.614
1991 2,110 516 267,463 196,328
1992 2,828 327 356,190 145,311
1993 3,277 703 447,932 202,603
1994 3,146 1,933 494,250 282,406
Source: State of Oregon Housing Agency.
34
RATINGS
o rating for the Notes has been or will be applied for.
CONTINUIN:.DISCLOSURE
LEGAL MA T TERS
Davis Wright Tremaine of Portland,Oregon,Bond Counsel for the City,will render an opinion with respect to the validity of and
tax exemption on the Notes. A copy of such opinion of Bend Counsel is included in Appendix B of this Limited Offering Circular.
Certain legal matters incident to the authorization,issuance and sale of the Notes are subject to the approval of the City Attorney.
TAX EXEMPTION
General. In the opinion of Davis Wright Tremain,Portland,Oregon,Bond Counsel,interest on the Notes is excluded from gross
income subject to federal income taxation pursuant to Section 103 of the Internal Revenue Cade of i986(the"Code"),provided that
the arbitrage requirements of Section 148 of the Code titre complied with. See "Confirming Requirements"for discussion of these
provisions. Interest on the notes is Dill an item of tax preference for purpsi
oses r determining alternative minimum taxable income
under the Code. Interest on rF.o Notes is taken into account in the computation of the corporate alternative minimum tax under
Section 55 of the w3c rad in the computation of the environmental tax on corporations under Section 59A of the Code as more
fully described in the Section under the heading"Certain Federal Income Tax Consequences." Interest on the Notes is exempt from
present personal income taxation by the State of Oregon.
Continuing Requirements. Section 148 of the Code has continuing arbitrage requirements that must be met subsequent to the
issuance of the Notes in order for interest on the Notes to be,and remain, exempt from regular federal income taxation. These
equirements include provisions that prescribe investment yield limitations for the proceeds of lie Notes and that certain investment
ings be paid on periodic basis to the federal government. The Resolution contains covenants of the City to comply with these
continuing,wbimage requirements.
Certain Federal Income Tax Consequences. The following is a discussion of certain federal tax matters under the Code. This
discussion does not purport to deal with all aspects of federal taxation that may be relevant to particular owners of the Notes.
Prosp,:ctive owners of the Notes,particularly those who may be subject to special rules,are advised to consult their own tax
advisors regarding the federal tax consequences of owning and disposing of the Notes,as well as any tau consequences arising
under the laws of any suite or other Luing jurisdiction.
Alternative Minimum Tax on Corporations. Section 55 of the Code imposes an alternative minimum tax on
corporations equal to the excess of the tentative minimum tau for the taxable year over the regular tax for such year. The
tentative minimum tax is based upon alternative minimum taxable income which is regular taxable income with certain
adjustments and increased by the mnount of certain items of tax preference. One of the adjustments is a portion of the
amount by which a corporation's adjusted current eaini,lgs exceeds the corporations alternative:: ii;num taxable
(determined withou.regard to such adjustment and the alternative tax net operating loss deduction). Interest on tax-exempt
obligations,such is the Notes,is included in a corporation's adjusted current earnings.
Enviror:mental Tax on Corporations. Section 59A of the Code imposes:n environmental tax on corporations for taxable
years beginning before January 1, 1996(subject to certain exceptions) equal to.127.of modified alternative minimum
taxable income(determined,in part.without regard to the alternative minimum tax net operating loss deduction) that is
excess of$2,000,000. Interest on tax-exempt obligations,such a:: the Notes,is included in it corporation's alternative
minimum taxable income for purposes of this environmental tax. The environmental tax is payable whetter or not an
alternative minimum tax is payable.
Borrowed Funds. The Code provides that interest pard on funds borrowed to purchase or carry tax-exempt obligations
during a tax year is not deductible. In addition.under rules used by the Internal Revemae Service fo.determining when
borrowed funds are considered used for the purposes of purchasing or when carrying particular assets,the purchase of
35
obligations may be considered to have been made with borrowed funds even though the borrowed funds are not directly
traceable to the purchase of such obligations.
Property and Casualty Insurance Companies. The deduction for loss reserves for property and casualty insurance
cumpanies is reduced by 15%of the sum of certain items,including the in erect received on tax-exempt obligations,such
as the Notes.
Social Security and Railroad Retirement Benerits. The Code requires recipients of certain Social Security or a Railroad
Retirement benefits to take into account,in determining gross income,receipts or accruals of interest that is exempt from
federal income tax.
Branch Profits Tax. Certain foreign corporations doing bt:sh.: ss in the United States may be subject to a branch profits
tax on their effectively connected earnings and profits,including rix-exempt interest on obligations such au the Notes.
S Corporations. Certain S corporations that have subchapter C earnings and profits at the close 01'a taxable year and
gross receipts more than 25%of which acre passive investment income,which includes interest on tax-exempt obligations,
such as the Notes,may be subject to a tax on excess net passive income.
FINANCIAL ADVISOR
The City has retained Ptblic Financial Management,Inc.,Portland, Oregon, as financial l advisor (the "Financial Advisor") in
connection with the Notes and with respect to the authorization and issuance of the Notes. The Financial Advisor i.s not obligated to
undertake,and Inas not undertaken to make,an independent verification or to assume responsibility for the accuracy,completeness,
or fairness of tine information contained in the Limited Offering Circular. Public Financial Management,Inc.,is an independent
advisory ftnn and is not engaged in the business of underwriting, trading, w distributing municipal securities or other public
securities. Public Financial Management, Inc., is a wholly-owned subsidiary of Marine Midland Bank, N.A., New York, New
York.
MISCELLANEOUS
Rl quotations from and summaries and explanations of provisions of law herein do not purport to be complete,and reference is
made to said laws for fulland complete statements of their provisions.
This Limited Offering Circular is not to be construed as a contract or agreement between the City and the purchasers or holders of
any of the Notes. Any statements made in this Limited Offering Circular involving matters of opinion axe intended merely as
opinion and not ars representation of fact. The information and expressions of opinion herein are subject to change without notice,
and neither the delivery of this Limited Offering Circular nor any side made hereunder shall,under any circumstances.create amy
implication that there has been no change in the affairs of the City or its agencies,since the date thereof.
CONCLUDING STATEMENT
The undersigned certifies that to the bast of my knowledge and belief,(i)the i i. iwd Offering Cirrt-d r,both as of its date and as of
the date of delivery of the Notes,does not contain-my untrue statement of a material fact or omit any statement of it material tact
necessary to make the statements herein,in the light of the circumstances under which they were made, not misleading and (ii)
between the date of the Limited Offering Circular and the date of delivery of the Notes there has been no material change in the
affairs(finaticiad or others),financial condition,or results of operations of the City except is set forth in or contemplated by the
Limited Offering Circular.
CITY OF TIG AIRD,OREGON
By: [s/
Finance Director
36