CAFR Report FY 2010-2011 CAFR
City of Tigard
FOR THE F ' ' ' - . .., NE 30, 2011
Comprehensive Annual Financial Report
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13125 SW Hall Boulevard • Tigard, Oregon 97223 • www.tigard-or.gov
CITY OF TIGARD, OREGON
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the fiscal year ended June 30, 2011
Prepared by:
City of Tigard — Financial and Information Services Department
City of Tigard, Oregon
Table of Contents
Page
INTRODUCTORY SECTION:
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 9
Organization Chart 10
Mayor and City Council Members 11
FINANCIAL SECTION:
Independent Auditors'Report 15
Management's Discussion and Analysis 17
Basic Financial Statements:
Government-Wide Financial Statements
Statement of Net Assets 35
Statement of Activities 36
Fund Financial Statements
Major Governmental Funds:
Balance Sheet 37
Statement of Revenues,Expenditures,and Changes in Fund Balance 38
Reconciliation of the Statement of Revenues,Expenditures,and
Changes in Fund Balance to the Statement of Activities 39
Proprietary Funds:
Statement of Net Assets 40
Statement of Revenues,Expenses,and Changes in Fund Net Assets 41
Statement of Cash Flows 42
Pension Trust Fund:
Statement of Plan Net Assets 43
Statement of Changes in Plan Net Assets 43
Notes to Basic Financial Statements 45
Required Supplementary Information:
Schedules of Revenues and Expenditures—Budget and Actual:
General Fund 75
Gas Tax Fund 76
Notes to Required Supplemental Information—Budget to GAAP Reconciliation 77
Other Supplementary Information:
Nonmajor Governmental Funds Combining Statements:
Combining Balance Sheet 81
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances 82
Special Revenue Funds:
Combining Balance Sheet—Nonmajor Special Revenue Funds 85
Combining Statement of Revenues,Expenditures,and Changes in Fund Balance 86
Schedules of Revenues and Expenditures—Budget and Actual:
City Gas Tax Fund 87
Electrical Inspection Fund 88
Building Fund 89
Criminal Forfeiture Fund 90
Tree Replacement Fund 91
Library Fund 92
City of Tigard, Oregon
Table of Contents, Continued
Page
FINANCIAL SECTION,Continued:
Other Supplementary Information,Continued:
Debt Service Funds:
Combining Balance Sheet—Nonmajor Debt Service Funds 95
Combining Statement of Revenues,Expenditures,and Changes in Fund Balance 96
Schedules of Revenues and Expenditures—Budget and Actual:
Bancroft Debt Service Fund 97
General Obligation Bond Debt Service Fund 98
Urban Renewal Agency Debt Service Fund 99
Capital Projects Funds:
Combining Balance Sheet—Nonmajor Capital Projects Funds 103
Combining Statement of Revenues,Expenditures and
Changes in Fund Balances—Nonmajor Capital Projects Funds 104
Schedule of Revenues and Expenditures—Budget and Actual:
Facility Fund 105
Transportation Development Tax Fund 106
Traffic Impact Fee Fund 107
Underground Utility Fund 108
Street Maintenance Fee Fund 109
Parks Capital Fund 110
Parks Bond Fund 111
Parks SDC Fund 112
Urban Renewal Agency Capital Projects Fund 113
Proprietary Funds:
Enterprise Funds:
Schedules of Revenues and Expenditures—Budget and Actual:
Sanitary Sewer Fund 117
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Sanitary Sewer Fund 118
Storm Sewer Fund 119
Water Quality and Quantity Fund 120
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Storm Sewer Funds 121
Water General Fund 122
Water System Development Fund 123
Water Capital Projects Fund 124
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Water Funds 125
Reconciliation of Budgetary Fund Balances to Generally Accepted
Accounting Principles Basis Net Assets 126
Internal Service Funds:
Combining Statement of Net Assets 129
Combining Statement of Revenues,Expenses,and Changes in Fund Net Assets 130
Combining Statement of Cash Flows 131
Schedules of Revenues and Expenditures—Budget and Actual:
Central Service Fund 132
Fleet/Property Management Fund 133
Insurance Fund 134
City of Tigard, Oregon
Table of Contents, Continued
Page
FINANCIAL SECTION,Continued:
Other Supplementary Information,Continued:
Other Schedules:
Schedule of Property Tax Transactions and Outstanding Balances 137
Schedule of Bond and Bond Interest Transactions 138
Schedule of Future Debt Service Requirements of
Long-term Notes Payable 139
Schedule of Future Debt Service Requirements of
Bancroft Improvement Bonds 140
Schedule of Future Debt Service Requirements of
General Obligation Bonds 141
STATISTICAL SECTION:
Net Assets by Component 146
Changes in Net Assets 148
Fund Balances of Governmental Funds 152
Changes in Fund Balances of Governmental Funds 154
Government—Wide Revenues 156
Government—Wide Expenses by Function 157
General Governmental Revenues by Sources 158
General Governmental Expenses by Function 159
Market Value and Assessed Value of Taxable Property 160
Property Tax Rates—Direct and Overlapping Governments 161
Principal Property Taxpayers 162
Property Tax Levies and Collections 163
Special Assessment Collection 164
Ratio of Annual Debt Service Expenditures for Long-Term Debt to
Total Governmental Expenditures 165
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt per Capita 166
Computation of Direct and Overlapping General Obligation Debt 167
Computation of Legal Debt Margin 168
Ratio Debt by Type 169
Demographics Statistics 170
Principal Employers 171
Property Value and Construction 172
Full-time Equivalent City Government Employees by Function 173
Operating Indicators by Function/Program 174
Capital Assets Statistics by Function 175
AUDIT COMMENTS AND DISCLOSURE REQUIREMENTS:
Independent Auditor's Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in Accordance with Government
Auditing Standards 179
Independent Auditor's Report Required by Oregon State Regulations 181
INTRODUCTORY SECTION
1
1111 .
■
TIGARD
February 7, 2012
Citizens of Tigard
Honorable Mayor
Members of the City Council
It is our pleasure to submit to you the Comprehensive Annual Financial Report of the City of Tigard,
Oregon, for the fiscal year ended June 30, 2011.
Oregon Revised Statutes (ORS) 297.425 requires that every municipal corporation publish within six
months of the close of each fiscal year a complete set of financial statements presented in conformity with
accounting principles generally accepted in the United States of America (GAAP) and audited in
accordance with auditing standards generally accepted in the United States of America by a firm of
licensed certified public accountants.
This report consists of management's representations concerning the finances of the city. Consequently,
management assumes full responsibility for the completeness and reliability of all of the information
presented in this report. To provide a reasonable basis for making these representations, management of
the city has established a comprehensive internal control framework that is designed both to protect the
city's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of
the city's financial statements in conformity with GAAP. Because the cost of internal controls should not
outweigh their benefits, the city's comprehensive framework of internal controls has been designed to
provide reasonable rather than absolute assurance that the financial statements will be free from material
misstatements. As management, we assert that, to the best of our knowledge and belief, this financial
report is complete and reliable in all material respects.
The city's financial statements were audited by Talbot, Korvola & Warwick, LLP, a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable assurance that
the financial statements of the city for the fiscal year ended June 30, 2011, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by the management; and evaluating the overall financial statement presentation.
The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering
an unqualified opinion that the city's basic financial statements for the fiscal year ended June 30, 2011, are
fairly presented, in all material respects, in conformity with GAAP. The independent auditor's report is
included in the financial section of this report.
GAAP require that management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of
3
transmittal is designed to complement the MD&A and should be read in conjunction with it. The city's
MD&A can be found immediately following the report of the independent auditors.
Profile of the Government
The City of Tigard is located in southeast Washington County, 15 minutes from downtown Portland,
Oregon and along major highways, Interstate 5 and Highway 217. The city is included in the Metro urban
growth boundary and Tigard's closest neighboring cities include Beaverton, Lake Oswego, Tualatin,
Durham, Portland, and King City. A state highway, 99W, runs north and south through the eastern
portion of the city and is a major transportation corridor leading to the City of Portland. There is also a
major greenway called Fanno Creek that connects neighborhoods to the natural environment and several
of the city's parks. The incorporated area of the city represents 11.81 square miles and has a population of
48,035. The city has experienced a steady growth since its incorporation in 1961. Population increases
have varied from a yearly change of less than
1 percent to almost 50 percent since incorporation. It is projected that the city will have a population of
close to 49,000 by 2012. The city can extend its corporate limits by annexation which is permitted by state
statute.
The city is governed by an elected mayor and four council members who comprise the City Council. The
city's charter established the Mayor/Council form of government. Each member of the City Council is
elected at-large to serve a four-year term. The mayor presides at council meetings and is elected at-large
for a four-year term. The mayor and council provide community leadership, develop policies to guide the
city in delivering services and achieving community goals, and encourage citizen awareness and
involvement.
The city council appoints a city manager, who is the chief administrative officer of the city. The city
manager is responsible for ensuring council policies are implemented using resources appropriated by the
council to achieve desired service results in the community.
The city provides a full range of municipal services. These services include police, municipal court,
community planning and development, parks, library, capital improvement planning, administration and
central services, street maintenance, water, and other general public works activities. The city owns and
maintains the wastewater and storm drainage system within the city limits under an agreement with Clean
Water Services. Fire protection is provided by Tualatin Valley Fire and Rescue.
The city maintains budgetary controls to ensure compliance with legal provisions in the annual
appropriated budget adopted by the City Council. Activities of all funds are included in the annual
adopted budget. The level of budgetary control (that is, the level at which expenditures cannot legally
exceed the appropriated amount) is established by program within each individual fund.
As demonstrated by the statements and schedules included in the financial section of this report, the city
continues meeting its responsibility for sound financial management.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered
from the broader perspective of the specific environment within which the City of Tigard operates.
4
Local economy
The city's location in the Portland metropolitan area provides citizens with many diverse employment
opportunities. Unemployment data is reported specifically for Tigard as well as Washington County and
the Portland Metro area.
The chart below shows a six-year comparison of unemployment rates for the state and local areas as well
as the U.S. The City of Tigard has the lowest rates over the six-year time period and the Portland Metro
area and the State of Oregon have the highest rates. Although in the past year the rate for every category
decreased from the previous year due to the slow economic recovery in 2011.
14.00% 1
12.00%
10.00%
•Oregon
8.00% •US
6.00%
•PtId Metro
▪Wash Co.
.00%
Tigard
2.00% -
0.00%
2006 2007 2008 2009 2010 2011
Wholesale trade, retail trade, and the service industry all play a large role in Tigard's economy. Retail trade
has the most establishments; and the retail and service industries employ the most people. The city has
within its boundaries one of the largest shopping malls in the region, Washington Square. The mall has
five major department stores and more than 140 specialty shops that occupy over 1.3 million square feet.
Summary of Economic Data
Number of Businesses,as of October 2011 2,889
Median Household Income (estimated 2009) $63,554
Primary Economic Sector(receipts/sales) Wholesale Trade
General Fund Permanent Tax Rate $2.51310 per$1000
of assessed value
Total Assessed Value (2011) $5,028,671,727
5
Ten Largest Employers
(as of March 2011)
Employer Product or service Employment
Tigard-Tualatin School District Local school district 724
Macy's Retail department store 704
Nordstrom Retail department store 579
Oregon Public Employees Retirement Public retirement system 396
Providence Health System Health care provider 377
HSBC Card Services Financial Services 301
Costco Wholesale Corporation Box store 300
City of Tigard Local government 267
University of Phoenix Higher education 256
Veris Industries LLC Manufacturing 248
Long-term financial planning
The city has developed a comprehensive long-term financial forecast every year since the 1980's. By
forecasting and anticipating financial trends, the city can develop strategies to respond to emerging
financial trends. The city forecasts operating fund revenues and expenditures over a five-year period. The
forecast is adjusted as each year's final results are known and as budgets are prepared for the following
year. In addition, the city also prepares a five-year Capital Improvement Program (CIP) that is also
updated every year. The CIP is developed through a process separate from, but parallel to the budget
process. The impact on future operating and maintenance costs are projected from the CIP and then
incorporated in the long-term financial forecast.
Relevant financial policies
The City of Tigard has an important responsibility to its citizens to carefully account for public funds,
manage municipal finances wisely, and plan adequate funding of services and facilities desired and needed
by the public.
In support of this effort, the city has established a set of fiscal policies to ensure that the public's trust is
upheld. With such fiscal policies, the city has established the framework under which it will conduct its
fiscal affairs, ensuring that it is and will continue to be capable of funding and providing outstanding local
government services.
The goals of Tigard's fiscal policies are:
• To enhance the City Council's policy-making ability by providing accurate information on program
and operating costs.
• To assist sound management of the city government by providing accurate and timely information
on current and anticipated financial conditions.
• To provide sound principles to guide important decisions of the council and management which
have significant fiscal impact.
6
• To set forth operational principles, which minimize the cost and financial risk of the city's
government consistent with services, desired by the public.
• To employ revenue policies which prevent undue or unbalanced reliance on any one source,
distribute the cost of municipal services fairly, and provide adequate funds to operate desired
programs.
• To provide and maintain essential public facilities,utilities,infrastructure and capital equipment.
• To protect and enhance the city's credit rating.
• To insure that all surplus cash is prudently invested in accordance with the investment policy
adopted by the council to protect city funds and realize a reasonable rate of return.
Major initiatives
The Tigard City Council meets at the beginning of each calendar year to establish goals. Council goals
comprise high-priority tasks or programs that the City Council intends to complete or initiate during the
year, though attainment of these goals may take several years. The goals are based on the city's Vision
Task Force goals, departmental needs, and City Council priorities. In the goal setting meeting, the City
Council reviews information and develops its annual and long-term goals. Council goals set the priorities
for city government and are incorporated into departmental work plans. For 2011 council established five
goals for the city as follows:
1. Implement Comprehensive Plan
a. Show substantial progress on new Tigard Triangle Master Plan
b. Update Tree Code
c. Participate in the Southwest Corridor Study
d. Work with state and regional partners to modify the Transportation Planning Rule
e. Work with partners on urbanization policy issues
2. Implement Downtown and Town Center Redevelopment Opportunities
a. Develop strategy and materials to attract developers and tenants
b. Advance Ash Avenue Railroad Crossing
3. Complete Plans for Parkland Acquisition
4. Advance Methods of Communication
a. Communication is a part of everyone's job
b. Support efforts to change organizational culture
5. Continue Coordination with Lake Oswego on Water Partnership
6. Financial Stability
a. Hold the line on the general fund budget
b. Work with partners on long-range solutions to statewide structural problems
c. Evaluate the city's internal sustainability efforts
With the passage of Tigard's Urban Renewal ballot measure, the city established a funding base to
implement the Tigard Downtown Improvement Plan. The formation of the Urban Renewal District
sends a clear message that the city is now financially committed to carrying out its Downtown Plan and
will be in a position to support investments there.
Although it will take time for tax revenues to accumulate under the tax increment financing process, it is
anticipated that enough funding will be available for $22 million in public improvements for downtown.
The implementation of all of the projects such as streets, parks, plazas, a public market and performing
arts center will take up to 20 years to accomplish but citizens are already seeing improvements. A
completely redesigned Burnham Street reopened to the public near the end of fiscal year 2011. In
addition, several businesses in downtown Tigard have received city funds to update their facades, and
planning continues on numerous downtown improvements.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City of Tigard for its Comprehensive Annual Financial Report
(CAFR) for the fiscal year ended June 30, 2010. This was the 26th consecutive year that the city has
received this esteemed award. In order to be awarded a Certificate of Achievement, the government
published an easily readable and efficiently organized CAFR. This report satisfied both GAAP and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR
continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the
GFOA to determine its eligibility for another certificate.
In addition, the city also received the GFOA's Distinguished Budget Presentation Award for its annual
budget for fiscal year 2011-2012. This was the 24th consecutive year that the city has received this
prestigious award. In order to qualify for the Distinguished Budget Presentation Award, the city's budget
document was judged to be proficient in several categories, including as a policy document, a financial
plan,an operations guide,and a communications device.
The preparation of this report was made possible by the dedicated service of the staff of the Financial and
Information Services department. Each member of the department has our sincere appreciation for the
contributions made in the preparation of this report. Special recognition should be given to the financial
operations staff for their work in preparing this document. Credit also must be given to the mayor and
City Council for their unfailing support for maintaining the highest standards of professionalism in the
management of the City of Tigard's finances.
Respectfully submitted,
•
Liz Ne -o Toby rance
Acting City Manager Director of Financial and
Information Services
8
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Tigard
Oregon
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30,2010
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports(CAFRs)achieve the highest
standards in government accounting
and financial reporting.
..ute (opt ot....ii./L.e
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AND �, . .<9,60.414,-,1
3 mom CORPORATOR President
DO — ir Or"0401S•o'
Executive Director
9
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10
CITY OF TIGARD, OREGON
PRINCIPAL OFFICIALS AS OF JUNE 30, 2011
ELECTED OFFICIALS:
Name Term Expires
Mayor Craig Dirksen December 31, 2014
Councilor Nick Wilson December 31,2012
Councilor Gretchen Buehner December 31, 2014
Councilor Marland Henderson December 31,2012
Councilor Mark Woodard December 31, 2014
APPOINTED OFFICIALS:
Craig Prosser, City Manager
Toby LaFrance,Director of Financial and Information Services
All may be reached at:
13125 SW Hall Boulevard
Tigard, OR 97223
LEGAL COUNSEL
Ramis, Crew, Corrigan &Bachrach
1727 NW Hoyt Street
Portland, OR 97209
11
FINANCIAL SECTION
13
INDEPENDENT AUDITOR'S REPORT
0 February 7, 2012
City Council
City of Tigard
TKIII Tigard, Oregon
We have audited the accompanying financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining
Talbot,Korvola fund information of the City of Tigard, Oregon, (the City) as of and for the year ended
&Warwick,[[P June 30, 2011, which collectively comprise the City's basic financial statements as
listed in the Table of Contents. These financial statements are the responsibility of
` tuc`r" o the City's management. Our responsibility is to express opinions on these financial
ohs
statements based on our audit.
4800 SW Macadam Ave,Suite 400
Portland,Oregon 97239-3973 We conducted our audit in accordance with auditing standards generally accepted in
P503274.2849 the United States of America and the standards applicable to financial audits
F503.2742853 contained in Government Auditing Standards, issued by the Comptroller General of
www.tkw.com the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes consideration of internal control over
financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control over financial reporting. Accordingly, we
express no such opinion. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund
information of the City, as of June 30, 2011, and the respective changes in financial
position and the cash flows, where applicable, thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of
America.
In accordance with Government Auditing Standards, we have also issued our report
dated February 7, 2012 on our consideration of the City's internal control over
financial reporting and our tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an
iVICGLADREY ALLIANCE • MCGiaa rey
15
The McGladrey Alliance is a premier affiliation of independent accounting and consulting firms. The McGladrey Alliance member firms maintain their name.
autonomy and independence and are responsible for their own client fee arrangements delivery of services and maintenance of client relationships.
INDEPENDENT AUDITOR'S REPORT (Continued)
City Council
City of Tigard, Oregon
Page 2
opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
Management's Discussion and Analysis as listed in the Table of Contents, is not a required part
of the basic financial statements but is supplementary information required by accounting
principles generally accepted in the United States of America. We have applied certain limited
procedures, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the required supplementary information. However, we did not
audit the information and express no opinion on it.
Required Supplementary Information consisting of budgetary comparison information for the
General Fund and major special revenue funds, as listed in the Table of Contents, is not a
required part of the basic financial statements but is supplementary information required by
accounting principles generally accepted in the United States of America. This information has
been subjected to the auditing procedures applied in the audit of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The Combining and Individual Fund
Financial Statements and Schedules, and Other Financial Schedules, as listed in the Table of
Contents as Other Supplementary Information, are presented for purposes of additional analysis
and are not a required part of the basic financial statements. Such information as described has
been subjected to the auditing procedures applied in the audit of the basic financial statements
and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial
statements taken as a whole.
The accompanying Introductory and Statistical Sections, as listed in the Table of Contents, are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. This information has not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we express no opinion on it.
TALBOT, KORVOLA & WARWICK, LLP
Certified Public Accountants
By
Robert . Moody, ., P° r
16
Management's Discussion and Analysis
As management of the City of Tigard,we offer readers this narrative overview and analysis of the financial
activities of the City of Tigard for the fiscal year ended June 30, 2011. It focuses on significant financial
issues, major financial activities, and resulting changes in financial positions, as well as economic factors
affecting the city. This Management's Discussion and Analysis (MD&A) is based on currently known
facts, decisions, and conditions that existed as of the date of the independent auditors'report.
We encourage readers to consider the information presented here in conjunction with the transmittal letter
at the front of this report and the city's financial statements which follow this discussion and analysis.
Financial Highlights
• The assets of the city exceeded its liabilities at the close of the most recent fiscal year by$292.7 million
(net assets). Of this amount, $20.6 million (unrestricted net assets) may be used to meet the city's
ongoing obligations to citizens and creditors.
• The city's net assets increased $6.8 million over the course of this year's operations. Within this total
the net assets of our business-type activities increased by $5.3 million or 6.1 percent, and net assets of
our governmental activities increased by$1.5 million or 0.8 percent.
• During the fiscal year, the city generated $39.6 million in taxes, charges for services, and other
revenues for governmental programs while incurring expenses from governmental activities totaling
$38.1 million, for a increase in net assets of$1.5 million. This includes $1.6 million of transfers into
governmental activities from business-type activities.
• In the city's business-type activities, revenues increased by about $5.0 million, while expenses
decreased by about $1.3 million. The city increased water rates by 37.5 percent, sewer rates by 5
percent and storm water fees by 10.5 percent.
• As of the close of fiscal year 2011, the city's governmental funds reported combined ending fund
balances of$26.7 million, an increase of$4.4 million. This increase reflects bond proceeds of $26.2
million and related expenditures of$9.2 million for park acquisition and $9.1 million to refund existing
general obligation bonds. Without the bond proceeds and related expenditures, the governmental
funds would have decreased approximately $3.7 million. This is primarily due to increasing expenses
and flat revenues.
• At the end of the fiscal year, unassigned fund balance for the General Fund was $7.6 million, which
included a prior period adjustment for interfund loan transactions that had been treated as transfers.
The city is not anticipating a significant change in the economy and is closely monitoring revenues and
expenses.
• The city's total debt increased by $15.5 million during fiscal year 2011. This is due to the issuance of
$17.1 million in general obligation bonds to fund the purchase and development of parks within the
city, $0.2 million (net) to refund general obligation bonds, and $0.3 in loans for the city's downtown
urban renewal program, offset by $2.1 million of normal annual debt service payments on the general
obligation bonds,long-term notes, and Bancroft improvement bonds.
17
Overview of the Financial Statements
In addition to this discussion and analysis, the financial section of this annual report contains the basic
financial statements, required supplementary information, and the combining statements of the non-major
funds and schedules demonstrating legal compliance.
The basic financial statements also include notes that explain the information in the financial statements
and provide more details. The statements are followed by the required supplementary information section
that supports the information in the financial statements.
Required Elements of the
Comprehensive Annual Financial Report
MANAGEMENT'S DISCUSSION AND ANALYSIS
1
FINANCIAL STATEMENTS
I I
Government-wide(full accrual) Fund
Governmental Activities Governmental(modified accrual)
Business type Activities Proprietary(full accrual)
Fiduciary(full accrual)
Notes to Basic Financial Statements
REQUIRED SUPPLEMENTAL INFORMATION
(other than MD&A)
OTHER SUPPLEMENTARY INFORMATION
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
city's finances,in a manner similar to a private-sector business.
The Statement of Net Assets presents information on all of the city's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the city is improving or deteriorating.
The Statement of Activities presents information showing how the city's net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to
the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will result in cash flows in a future fiscal period. Examples
of such items include earned, but uncollected property taxes, and earned, but unused compensated
absences.
Both of the government-wide financial statements distinguish functions of the city that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
18
intended to recover all or a significant portion of their costs through user fees and charges (business-type
activities).
The governmental activities of the city include the following:
• Community services,police,library, and social services
• Public works,including parks and recreation
• Community development, current and long-range planning
• Policy and administration
The business-type activities of the city include the following:
• Sanitary sewer
• Storm water
• Water
The government-wide financial statements can be found on pages 35-36 of this report.
Fund Financial Statements are designed to display compliance with finance-related legal requirements
demonstrated by the use of fund accounting. A fund is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities and objectives. The funds
of the city can be divided into the following categories: governmental funds, proprietary funds, and a
fiduciary fund.
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of available
resources, as well as on balances of available resources at the end of the fiscal year. Such information may
be useful in evaluating a government's near-term financial capability.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the city's near-term financing decisions. Both
the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds
and governmental activities.
The city maintains 20 individual governmental funds. Information is presented separately in the
governmental fund balance sheet and the statement of revenues, expenditures, and changes in fund
balances for those funds that are considered significant (major) to the city taken as a whole. These
financial statements report five major funds: General Fund, Gas Tax Fund, the Bancroft Debt Service
Fund, the Parks Capital Fund and the Parks Bond Fund. Data from the other 15 governmental funds are
combined into a single, aggregated presentation. Individual fund data for each of these non-major
governmental funds is provided in the form of combining statements elsewhere in this report.
The city adopts an annual appropriated budget for all of its governmental funds. A budgetary comparison
statement has been provided for each fund individually to demonstrate compliance with their budgets.
19
The basic governmental fund financial statements can be found on pages 37-39 of this report.
Proprietary funds are used to account for a government's business-type activities. The city maintains two
different types of proprietary funds - enterprise funds and internal service funds. Enterprise funds are
used to report the same functions presented as business-type activities in the governmental-wide financial
statements. The city uses enterprise funds to account for its sanitary sewer, storm water, and water
operations. Internal service funds are an accounting device used to accumulate and allocate costs
internally among the city's various functions. The city uses internal service funds to account for fleet
maintenance,risk management, office services, finance and accounting, and other management services.
The city reports all three of the enterprise funds as major funds. These funds are the Sanitary Sewer Fund,
the Storm Sewer Fund, (which consists of the budgetary Storm Sewer and the Water Quality/Quantity
Funds), and the Water Fund, (which includes the budgetary Water, Water SDC, and Water CIP Funds).
However, for budgetary and legal purposes these funds are accounted for separately. Conversely, all
internal service funds are combined into a single, aggregated presentation in the proprietary fund financial
statements. Individual fund data for the internal service funds is provided as other supplementary
information.
The city also adopts an annual appropriated budget for all proprietary funds. To demonstrate compliance
with the budget, budgetary comparison statements have been provided for the enterprise funds as other
supplementary information on pages 117-126 of this report. Budgetary comparisons for the internal
service funds are provided on pages 129-134 of this report.
The proprietary fund financial statements can be found on pages 40-42 in the basic financial statements.
Fiduciary funds are used to report assets held in a trustee or agency capacity for others and therefore
cannot be used to support the government's own programs. The city has a pension trust fund that
accounts for employee defined contribution plans. The accounting used for the fiduciary fund is much
like that used for the proprietary funds.
No budget is adopted for the fiduciary fund in accordance with Oregon Local Budget Law.
The fiduciary fund financial statements can be found on page 43 in the basic financial statements.
Notes to the Basic Financial Statements provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to
the financial statements can be found on pages 45-71 of this report.
The combining statements referred to earlier in connection with non-major governmental funds and
business-type funds are presented immediately following the required supplementary information.
Combining and individual fund statements and schedules can be found on pages 73-134 of this report.
Government-wide Financial Analysis
Net assets: As noted earlier, net assets may serve over time as a useful indicator of the city's financial
position. In the case of the city, assets exceeded liabilities by$292.7 million at June 30, 2011.
The largest portion of the city's net assets (89 percent) reflects its investment in capital assets (e.g., land,
buildings, roads, sewers, storm water facilities, etc.) less any related debt used to acquire those assets that is
20
still outstanding. None of these capital assets, including the city infrastructure, are available for future
spending. Although the city's investment in capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since capital
assets themselves cannot be used to liquidate these liabilities.
City of Tigard,Oregon
Net Assets as of Fiscal Year-end
(in millions)
Governmental Business-type
Activities Activities Total
FY 10-11 FY 09-10 FY 10-11 FY 09-10 FY 10-11 FY 09-10
Assets
Current and other assets $ 33.1 $ 30.4 $ 22.7 $ 22.0 $ 55.8 $ 52.4
Net capital assets 206.0 192.5 78.9 73.7 284.9 266.2
Total assets 239.1 222.9 101.6 95.7 340.7 318.6
Liabilities
Other liabilities 4.1 5.5 1.9 4.5 6.0 10.0
Outstanding debt 35.9 19.8 6.1 2.9 42.0 22.7
Total liabilities 40.0 25.3 8.0 7.4 48.0 32.7
Net assets
Invested in capital assets,
net of related debt 181.3 175.2 78.9 70.9 260.2 246.1
Restricted 5.9 6.9 6.0 - 11.9 6.9
Unrestricted 11.9 15.5 8.7 17.4 20.6 32.9
Total net assets $ 199.1 $ 197.6 $ 93.6 $ 88.3 $ 292.7 $ 285.9
The city's net assets increased by $6.8 million during the fiscal year. This increase was attributable to the
increase in water rates and decrease in expenses in that service.
The revenues and expenses shown on the next table explain changes in net assets for fiscal year 2011.
21
Governmental Business-type
Activities Activities Total
FY 10-11 FY 09-10 FY 10-11 FY 09-10 FY 10-11 FY 09-10
Revenues
Program Revenues
Charges for services $ 4.9 $ 3.6 $ 12.3 $ 10.8 $ 17.2 $ 14.4
Capital grants and contributions - 0.3 4.6 1.0 4.6 1.3
Operating grants and contributions - 0.2 - - - 0.2
Total Program revenues 4.9 4.1 16.9 11.8 21.8 15.9
Taxes 18.0 16.1 - - 18.0 16.1
Interest 0.3 0.3 0.1 0.1 0.4 0.4
Other 14.9 11.9 - 0.2 14.9 12.1
Total General revenues 33.2 28.3 0.1 0.3 33.3 28.6
Total revenues 38.1 32.4 17.0 12.1 55.1 44.5
Expenses
Community services 20.0 19.8 - - 20.0 19.8
Public works 11.0 8.6 - - 11.0 8.6
Community development 4.2 4.9 - - 4.2 4.9
Policy and administration 1.8 1.5 - - 1.8 1.5
Interest on long-term debt 1.2 0.5 - - 1.2 0.5
Sewer - - 1.4 1.3 1.4 1.3
Storm water - - 1.6 2.0 1.6 2.0
Water
-
- 7.0 7.9 7.0 7.9
Total expenses 38.2 35.3 10.0 11.2 48.2 46.5
Transfers in(out) 1.6 1.3 (1.6) (1.3) - -
Changes in net assets 1.5 (1.6) 5.4 (0.4) 6.9 (2.0)
Beginning net assets 197.6 199.2 88.3 88.7 285.9 287.9
Ending net assets $ 199.1 $ 197.6 $ 93.7 $ 88.3 $ 292.8 $ 285.9
22
Revenues - Governmental Activities
Property taxes continue to be a major source of revenue for the funding of city programs. Oregon voters
passed Measure 50, a State constitutional amendment, which fundamentally changed property tax
calculation and administration in Oregon in May 1997. Measure 50 converted operating property tax
authority from a "levy-based" system to a "rate-based" system, and it became effective in FY 1997-98.
The city's tax base, which was $6,891,856 in FY 1997-98, was converted to a permanent tax rate of
$2.5131 by the measure. The measure established FY 1997-98 assessed value at FY 1995-96 values less 10
percent.
The permanent rate is multiplied by the assessed value each year to arrive at the tax authority for that year.
Assessed value growth is limited to a maximum 3 percent per year, plus a pro-rated share of new
construction and annexations. Assessed value cannot exceed real market value. The city has begun to see
a significant number of properties whose assessed value is at or near real market value. For this reason,
growth in the city's property taxes levied for general purposes was less than 3 percent for fiscal year 2011.
Measure 50 did not change the basis for calculating General Obligation (GO) debt service levies. GO debt
service levies are calculated to produce enough tax revenues that (when combined with other resources
such as interest earnings and fund balance) will be enough to pay debt service due on these voter approved
bonds. On November 2, 2010, voters approved a bond measure in the amount of $17.0 million for
acquisition and development of park land. These bonds were sold on February 3, 2011 to Wells Fargo
Bank, National Association. Also on that date, the city refunded $9.0 million of outstanding general
obligation bonds that were approved on May 21, 2002, by voters to build a new library. Taxes collected
through the tax levy will repay this bonded debt.
Property taxes constitute 36 percent of total governmental revenues. Intergovernmental revenue, charges
for services, franchise fees and other revenues make up the bulk of the city's governmental revenue:
• Franchise fees are charged to public utilities for the use of the public right-of-way. Franchised
activities paying the fee include electricity, natural gas, telecommunications, cable television, and
solid waste haulers - $4.4 million.
• Operating grants and contributions constitutes a significant amount of funding for the city. This
category includes the city's share of the Washington County Cooperative Library Services
(WCCLS) tax levy,along with state and county gas tax revenues.
• Intergovernmental revenue is another significant revenue category and totals $2.8 million. These
revenue sources include state shared revenues such as cigarette tax,liquor tax, and revenue sharing.
In addition, this category also includes the city's portion of the county-wide Hotel/Motel Tax.
• Charges for service includes a variety of land use planning and permit fees, library fines, and other
miscellaneous types of fees and charges - $4.9 million.
23
Governmental Activities
Fiscal Year 2011
Revenues by Source
$37,999,386 Charges for Service,
Other,$5,284,426 $4,852,985
14% 13%
Interest,$296,964
1% Operating grants
and contributions,
$6,516,004
17%
Intergovernmental
revenue,$2,838,802
7%
Capital grants,
Franchise fees,
Taxes,$13,604,285 $230,500
$4,375,420 36% 1%
11%
Revenues-Business-type Activities
Charges for services represent 72.8 percent of total revenues and are composed of fees that are charged to
all users for services provided such as water, sanitary sewer, and storm water. The sanitary and storm
water fees are established by Clean Water Services (CWS) and are set by the agency each year. The city
council, through an intergovernmental agreement with other water system participants, sets the water rates.
The city is continuing to pursue efforts to secure a long-term water source to meet future demands over
the next 50 years. In August 2009 the city entered into an intergovernmental agreement with the City of
Lake Oswego in which the City of Tigard will share the cost of upgrading and expanding Lake Oswego's
water treatment plant in return for a long-term water contract. Over the past eight years, the city council
has approved a yearly 7 percent water rate adjustment in anticipation of having to issue revenue bonds to
finance capital projects associated with these potential water sources. The city conducted a water rate
study during fiscal year 2010. The city council approved rate increases of 7% on October 1, 2010 and 30.5
% on January 1, 2011, along with 14%increases on January 1, 2012,2013, and 2014.
Sanitary rates have been traditionally adjusted by CWS annually with the increase in revenues being
dedicated to debt service requirements for treatment plant expansions made by the agency.
Storm water rates increased approximately 10.5%in fiscal year 2011.
24
Expenses - Governmental Activities
Expenses related to governmental activities are shown in the chart below and are expressed as a percent of
total expenses for all governmental activities.
The majority of the expenses (52 percent) relate to the city library and police department within the
community services activity.
Overall, expenses in governmental activities increased by $2.9 million over the previous fiscal year. The
majority of this increase can be attributed to expenses related to capital outlay that does not qualify to be
capitalized.
Expenses by Service Type
Fiscal Year 2011
Governmental Activities
Policy and $38,098,943 Interest on long-
administration term debt
$1,825,398 $1,214,420
5% 3%
Community
development
$4,159,289
11% Community services
$19,987,961
52%
Public works
$10,911,875
29%
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Expenses -Business-type Activities
The majority of the expenses (70 percent) relate to the drinking water service provider activity. Currently
the city does not have its own water source, so it has to purchase water from other agencies. This water
purchase expense is a major portion of the total water expenses. The water expense decreased slightly
over last year due to a decrease in wages and benefits and material costs.
The sanitary sewer expenses increased only slightly from the previous fiscal year. Storm water expenses
decreased slightly from fiscal year 2010. Neither of these activities has experienced major growth or
expansion of their respective systems, so expenses have remained generally flat as the city works to keep
expenses in line with revenues.
Expenses by Service Type
Fiscal Year 2011
Business-type Activities
$10,050,759 Sewer
$1,386,597
14%
Storm water
$1,667,699
17%
Water
$6,996,463
70%
Financial Analysis of the City's Funds
As noted earlier, the city uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental Funds
The focus of the city's governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the city's financing requirements.
In particular, unreserved fund balance may serve as a useful measure of the city's net resources available
for spending at the end of the fiscal year.
As of the end of the fiscal year 2011, the city's governmental funds reported combined ending fund
balances of$26.7 million, an increase of$4.4 million in comparison with the prior year. Most of that fund
balance, $16.5 million, is reported as restricted for various purposes. In the General Fund, $0.3 million is
reported as non-spendable, and $7.2 million is reported as unassigned.
26
General Fund
The General Fund is the chief operating fund of the city. At the end of the fiscal year 2011, the
unassigned fund balance was $7.2 million that can be used for funding of city programs. This is an
increase of approximately $0.2 million which is primarily due to a prior period adjustment to correct the
treatment of interfund loan transactions.
Gas Tax Fund
This fund records shared revenues from state and county taxes on sale and use of motor vehicle fuel.
Funds are used for construction, reconstruction, improvement, repair, maintenance, operation, and use of
public highways, roads, streets, and roadside rest areas. This revenue source can also be used for street
lighting and cleaning, storm drainage, traffic control devices, and cost of administration. At the end of
fiscal year 2011, the fund balance was $2.2 million, a decrease of$2.3 million. This decrease is due to the
capital expenditures for the improvement of Burnham Street. Approximately $2.8 million was spent on
the Burnham Street project during fiscal year 2011, bringing the total spent to date on that project to $6.9
million. This project was completed early in fiscal year 2012.
Bancroft Debt Service Fund
The Bancroft Debt Service Fund accounts for the payment of Bancroft improvement bond principal and
interest. The sources of revenue are the collection of assessments against benefited property,interest, and
contributions from other funds for their share of costs. Revenues may only be used for the retirement of
debt. At the end of fiscal year 2011, the fund balance was $0.4 million, a decrease of$0.9 million. This
decrease was due to a transfer of accumulated administrative fees to the General Fund, and debt service
payments. As assessment payments build up in the fund, that money is remitted to the bank to pay the
related bond principal and interest.
Parks Capital Fund
The Parks Capital Fund accounts for the purchase and improvements to city parks. At the end of fiscal
year 2011, the fund balance was $69,078, a decrease of $57,188. This decrease is due to a difference in
transfers in and out, as this fund has no dedicated source of revenue.
Parks Bond Fund
The Parks Bond Fund was created in fiscal year 2011 to account for the parks bond proceeds. At the end
of fiscal year 2011, the fund balance was $7,906,647. This is the balance of the unspent bond proceeds,
and it is restricted for park acquisition and development.
Proprietary Funds
The City's proprietary funds include the Sanitary Sewer, Storm Sewer,Water, and Internal Services Funds.
The unrestricted net assets of the business-type activities which include the Sanitary Sewer, Storm Sewer,
and Water Funds at the end of the year amounted to $14.7 million, a decline of$2.7 million from the prior
year. The decline in unrestricted net assets is offset by an increase of$6.0 million in net assets restricted
27
for capital improvements. The total increase in net assets for these funds was $5.3 million,which shows as
an increase to net assets restricted for capital improvements.
The factors concerning the finances of the funds have already been addressed in the discussion of the
city's business-type activities.
General Fund Budgetary Highlights
The city council approved three budget amendments to the adopted General Fund budget. Total increase
in appropriations was $798,869. The changes are summarized as follows:
• A transfer of$285,500 that decreased contingency by that amount and increased the appropriation
for transfers out to the Facilities Fund in order to replace the roof on the Permit Center. This
project was a carry-over from fiscal year 2010 and had a net impact of zero on the General Fund
budget.
• Increase of$742,170 to increase transfers out in order to pay some rental agreements that were not
included in the original budget and to recognize some miscellaneous grants and related
expenditures.
• Increase of $56,699 in the police, library, and public works departments to recognize various
grants.
The overall change to the budget in the General Fund after these three amendments was less than one
percent and had no significant affect on future services or liquidity.
The city budgeted the General Fund with the anticipation that ending fund balance would decrease by
approximately $1.6 million. Actual results left the ending fund balance unchanged. This difference was
caused by expenditures,including transfers out, that were $1.6 million lower than budget.
For expenditures, the variance was primarily due to a conservative approach to the budget and about $711
thousand of contingency that was budgeted but not needed.
Capital Asset and Debt Administration
Capital Assets
Governmental Activities
The city's investment in capital assets for its governmental activities as of June 30, 2011, amounts to $206.0
million (net of accumulated depreciation). This investment in capital assets primarily includes land,
buildings, machinery and equipment, office equipment, and infrastructure. The infrastructure includes
roads, curbs and sidewalks, signage, streetlights and right-of-ways. The total increase in the city's
investment in governmental activities capital assets was $13.5 million, about seven percent. This was
primarily due to additions to infrastructure throughout the city, including significant improvements to
Burnham Street, the intersection of Greenburg Road, Pacific Highway and Main Street and the
intersection of Hall Boulevard and Pacific Highway.
Business-type Activities
28
The city's investment in capital assets for its business-type activities as of June 30, 2011, amounts to $78.9
million (net of accumulated depreciation). In addition to machinery, equipment, and vehicles, the capital
assets include the sanitary sewer collection system, storm drainage, and water systems. Total increase in
the city's investment in business-type activities capital assets was $5.1 million or seven percent. This is
primarily due to further expansion of the city's water reservoir system.
City of Tigard, Oregon
Capital Assets at Year-end
(Net of Depreciation)
(in millions)
Governmental Business-type
Activities Activities Total
FY 10-11 FY 09-10 FY 10-11 FY 09-10 FY 09-10 FY 08-09
Land $ 20.7 $ 8.0 $ 4.4 $ 4.4 $ 25.1 $ 12.4
Construction in progress 8.6 8.9 14.4 8.2 23.0 17.1
Buildings and building improv. 16.5 16.5 1.4 1.4 17.9 17.9
Land improvements 1.3 1.4 - - 1.3 1.4
Sewer system - - 15.6 15.0 15.6 15.0
Storm drainage system - - 10.5 11.0 10.5 11.0
Water system - - 31.7 32.9 31.7 32.9
Machinery and equipment 1.6 1.8 0.2 0.4 1.8 2.2
Autos and trucks 0.6 0.9 0.7 0.5 1.3 1.4
Infrastructure 156.7 155.0 - - 156.7 155.0
Total capital assets $ 206.0 $192.5 $ 78.9 $ 73.8 $284.9 $ 266.3
Additional information on the city's capital assets can be found in the notes on pages 55-57 of this report.
Debt Outstanding
As of year-end, the city had four types of debt currently outstanding, three of which are governmental and
one is business-type. The governmental debt includes general obligation bonds ($32.3 million) secured by
the city's authority to levy property taxes and assessment bonds ($1.0 million) secured by installment
payment contracts with property owners. The third is a loan ($270,925) through the Oregon Economic
and Community Development Department (OECDD). This loan was secured by current and future park
system development charges collected by the city. The business-type activity debt is a draw against a line
of credit for water system improvements. The amount outstanding is $6.0 million, which is the total
amount available. Principal payments are not required under the credit agreement until 2012. The city
intends to issue revenue bonds to pay off the line of credit before June 2012.
The most recent bond rating occurred during fiscal year 2011 and received a rating of Aa2 and AA from
Moody's and Standard &Poor's, respectively, for general obligations of the city. Existing debt levels have
no direct impact on current or future city operations.
The State of Oregon limits the amount of general obligation debt that cities can issue to 3 percent of the
real market value of all taxable property within the city limits. The city's total outstanding general
obligation debt is significantly below the 3 percent limit of$150.9 million.
Additional information on the city's debt can be found on pages 62-64 of this report.
29
City of Tigard, Oregon
Outstanding Debt at Fiscal Year-end
(in millions)
Total
Totals Percentage
FY 10-11 FY 09-10 Change
Governmental:
General obligation $ 32.6 $ 16.7 95.2%
Local improvement 1.0 1.2 -16.7%
Note payable 0.3 0.5 -40.0%
Total outstanding debt $ 33.9 $ 18.4 84.2%
Business-type:
Line of credit $ 6.0 $ 2.9 100%
Economic Factors
The unemployment rate for the Washington County area was 9.5 percent at the end of the fiscal year,June
30, 2011. This is an increase from the same period last year, when the rate was 9.0 percent. The rate is
slightly higher than the national average of 9.2 percent for June 2011.
The City of Tigard issues licenses for businesses operating within the city limits. As of June 30, 2011,
there were 2,889 businesses licensed in the city. The U.S. Economic Census, which takes place every five
years, provides data on industry sales within the city. Wholesale trade is generating the most dollars in
shipments, sales, and receipts. Retail trade employed the most people, and also ranks second in the
amount of dollars generated.
Almost 70 percent of land within the city is planned to accommodate residential use, ranging from low
density single family homes to high density multi-family dwellings. The city tracks buildable lands through
a yearly inventory process. At the end of 2011, less than 10 percent of land within the city was considered
buildable. Residential home construction, which includes free standing and attached, hit a high of 576
units in 2001 and dipped to a low of 42 in 2009, reflecting the fact that all construction declined
significantly in 2009. Residential construction valuation increased slightly in 2010-11 to $28.2 million, up
from $28.0 million in 2009-10. Total housing units added in the city during 2010-11 totaled 113, down
from 123 in 2009-10, but up significantly from the 42 issued in 2008-09.
The City of Tigard has developed a comprehensive long-term financial forecast every year since the 1980's.
This forecast allows the city to project expected revenues and expenditures for each of its funds to help
anticipate financial requirements.
The comprehensive long-term financial forecast continues to be central to Tigard's financial management
strategy. By forecasting and anticipating financial trends,Tigard can develop strategies to respond to these
emerging financial trends.
The current forecast shows that in the short-term the city's financial condition is stable in most funds.
The fiscal year 2011 budget continued addressing a projected General Fund deficit that had been
30
forecasted to occur earlier than what is now projected. Managers are aware of the continuing issue of flat
revenues and increasing expenses, and are managing their budgets with that in mind.
More adjustments were made to the forecast model during with the fiscal year 2012 budget taking into
account the city never spends 100% of its appropriations, but as budgets get tighter, departments are
approaching the 100% expenditure of budgets. Also there are forecasted positions (FTE's) which may not
be needed to maintain the level of service proposed in the forecast. The city will carefully weigh the long-
term effect these options may have before approving them.
The city will also need to establish sound financing for the capital improvement program that is needed in
order to maintain and improve the city's infrastructure. A Downtown Revitalization Plan was adopted by
the city council and recommended the creation of an urban renewal district. The creation of the district
and use of tax increment financing was approved by the voters in May 2006. The city will still need to
fund some catalyst projects that are identified in the plan and financing of these projects will need to come
from other sources. The voters in the City of Tigard also approved the parks bond levy, and the city has
already begun purchasing property and making park improvements with that bond.
Requests for Information
This financial report is designed to provide a general overview of the City of Tigard's finances for all those
with an interest in the city's finances. Questions concerning any of the information provided in the report
or requests for additional financial information should be addressed to the Financial and Information
Services Director, City of Tigard, 13125 SW Hall Blvd.,Tigard, Oregon 97223.
31
BASIC FINANCIAL STATEMENTS
33
CITY OF TIGARD,OREGON
STATEMENT OF NET ASSETS
June 30,2011
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 29,456,918 $ 16,961,131 $ 46,418,049
Accounts receivable 1,890,467 5,697,735 7,588,202
Property taxes receivable 513,386 - 513,386
Assessment liens receivable 912,112 - 912,112
Prepaid expenses 325,111 - 325,111
Inventory 12,605 50,463 63,068
Capital assets:
Land and construction in process 29,326,701 18,807,811 48,134,512
Other capital assets (net of accumulated depreciation) 176,707,529 60,113,020 236,820,549
Total Assets 239,144,829 101,630,160 340,774,989
LIABILITIES
Accounts payable and accrued liabilities 2,294,138 1,867,511 4,161,649
Customer deposits 1,365,205 46,674 1,411,879
Accrued interest payable 415,127 - 415,127
Due within one year:
Line of credit - 5,953,868 5,953,868
Notes payable 270,925 - 270,925
Bonds payable 1,565,000 - 1,565,000
Accrued compensated absences 1,070,839 72,346 1,143,185
Special assessment bonded debt
with government commitment 138,720 - 138,720
Due in more than one year:
Bonds payable 31,032,213 - 31,032,213
Accrued compensated absences 356,946 24,115 381,061
Special assessment bonded debt
with government commitment 885,810 - 885,810
Net OPEB obligation 644,556 63,410 707,966
Total Liabilities 40,039,479 8,027,924 48,067,403
NET ASSETS
Invested in capital assets,net of related debt 181,343,650 78,920,831 260,264,481
Restricted for:
Capital projects 4,810,096 6,005,540 10,815,636
Debt service 1,070,659 - 1,070,659
Unrestricted 11,880,945 8,675,865 20,556,810
Total Net Assets $ 199,105,350 $ 93,602,236 $ 292,707,586
The accompanying notes are an integral part of the basic financial statements.
35
CITY OF TIGARD,OREGON
STATEMENT OF ACTIVITIES
June 30,2011
Net(Expense)Revenue and
Program Revenues Changes in Net Assets
Charges Operating Capital Primary Government
for Grants and Grants and Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental activities:
Community services $ 19,987,961 $ 1,008,691 $ 3,427,205 $ - $ (15,552,065) $ - $ (15,552,065)
Public works 10,911,875 2,096,677 3,019,484 - (5,795,714) - (5,795,714)
Community development 4,159,289 1,747,617 69,315 230,500 (2,111,857) - (2,111,857)
Policy and administration 1,825,398 - - - (1,825,398) - (1,825,398)
Interest on long-term debt 1,214,420 - - - (1,214,420) - (1,214,420)
Total governmental activities 38,098,943 4,852,985 6,516,004 230,500 (26,499,454) - (26,499,454)
Business-type activities:
Sewer 1,386,597 1,021,840 - 40,644 - (324,113) (324,113)
Stone water 1,667,699 2,178,298 - - - 510,599 510,599
Water 6,996,463 9,065,554 - 4,543,120 - 6,612,211 6,612,211
Total business-type activities 10,050,759 12,265,692 - 4,583,764 - 6,798,697 6,798,697
Total $ 48,149,702 $ 17,118,677 $ 6,516,004 $ 4,814,264 (26,499,454) 6,798,697 (19,700,757)
General Revenues: to
M
Property taxes,levied for general purposes 12,185,481 - 12,185,481
Property taxes,levied for debt service 1,418,804 - 1,418,804
Franchise fees 4,375,420 - 4,375,420
Unrestricted intergovernmental revenues 2,838,802 - 2,838,802
Interest earnings 296,964 115,828 412,792
Miscellaneous 5,284,426 3,269 5,287,695
Total general revenues 26,399,897 119,097 26,518,994
Transfers between Governmental and Business-type Activities 1,629,245 (1,629,245) -
Change in net assets 1,529,688 5,288,549 6,818,237
Net assets--beginning 197,575,662 88,313,687 285,889,349
Net assets--ending $ 199,105,350 $ 93,602,236 $ 292,707,586
The accompanying notes are an integral part of the basic financial statements.
CITY OF TIGARD,OREGON
GOVERNMENTAL FUNDS
BALANCE SHEET
June 30,2011
Bancroft Parks Parks Other Total
General Gas Tax Debt Service Capital Bond Governmental Governmental
Fund Fund Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 7,643,052 $ 2,489,336 $ 391,710 $ 71,923 $ 7,906,633 $ 9,374,764 27,877,418
Accounts receivable 995,704 462,469 2,122 97,841 14 299,848 1,857,998
Due from other funds 225,382 200,000 - - - - 425,382
Property taxes receivable 513,386 - - - - - 513,386
Assessment liens receivable - - 854,377 - - 57,735 912,112
Prepaid expense 305,164 - - - - - 305,164
Total assets $ 9,682,688 $ 3,151,805 $ 1,248,209 $ 169,764 $ 7,906,647 $ 9,732,347 $ 31,891,460
LIABILITIES
Accounts payable and accrued liabilities $ 1,334,453 $ 376,001 $ - $ 5,576 $ 205,971 $ 1,922,001
Customer deposits 140,188 - - - - 311,189 451,377
Due to others 229,677 594,759 - - - 89,392 913,828
Due to other funds - - - - - 425,382 425,382
Deferred revenues:
Property taxes 425,823 - - 95,110 - 39,986 560,919
Assessment liens - - 854,377 - - 57,735 912,112
Total liabilities 2,130,141 970,760 854,377 100,686 - 1,129,655 5,185,619
FUND BALANCES
Nonspendable:
Prepaid expense 305,164 - - - - - 305,164
Restricted for:
Street maintenance and improvements - 2,181,045 - - - 1,320,639 3,501,684
Debt set-vice - - 393,832 - - 676,827 1,070,659
Park improvements - - - 69,078 7,906,647 2,426,083 10,401,808
Underground utilities - - - - - 505,718 505,718
Building inspection 843,588 843,588
Police services 60,871 60,871
Library improvements 471,336 471,336
Committed for:
Street maintenance and improvements - - - - - 965,374 965,374
Urban forestry - - - - - 1,297,714 1,297,714
Assigned to:
City facilities - - - - - 417,479 417,479
Unassigned: 7,247,383 - - - - (382,937) 6,864,446
Total fund balances 7,552,547 2,181,045 393,832 69,078 7,906,647 8,602,692 26,705,841
Total liabilities and fund balances $ 9,682,688 $ 3,151,805 $ 1,248,209 5 169,764 5 7,906,647 $ 9,732,347
Amounts reported for governmental activities in the Statement
of Net Assets are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds,net
of accumulated depreciation of$71,707,822. 206,034,230
Other long-term assets are not available to pay for current-period
expenditures and,therefore are deferred in the funds:
Assessment liens 912,112
Property taxes earned but not available 560,919
Internal service funds are used by management to charge the
cost of administrative functions as well as fleet and property
management to individual funds. The assets and liabilities of
the internal service funds are included in governmental
activities in the statement of activities. 992,452
Accrued compensated absences are not due and payable in the
current period and therefore are not reported m the funds. (1,147,853)
Long-term liabilities-not reported in the funds:
Bonds,notes payable and other liabilities,not due and
payable in current period (33,892,668)
Accrued interest payable,not due and payable in the current period (415,127)
Net OPEB obligation (644,556)
Net Assets of Governmental Activities $ 199,105,350
The accompanying notes are an integral part of the basic financial statements.
37
CITY OF TIGARD,OREGON
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE
For the fiscal year ended June 30,2011
Bancroft Parks Parks Other Total
General Gas Tax Debt Service Capital Bond Governmental Governmental
Fund Fund Fund Fund Fund Funds Funds
REVENUES
Taxes $ 12,243,957 $ 2,515,111 $ - $ - $ - $ 1,994,389 $ 16,753,457
Franchise fees 4,375,420 - - - - - 4,375,420
Special assessments - - 40,164 - - - 40,164
Licenses and permits 1,029,219 94,206 - - - 1,467,091 2,590,516
Intergovernmental revenues 5,937,445 499,219 - 3,390,660 - 7,322 9,834,646
Charges for services 214,336 130 - - - 2,912,841 3,127,307
Fines and forfeitures 907,216 - - - - - 907,216
Interest earnings 101,003 34,925 62,447 223 24,193 64,493 287,284
Miscellaneous 45,873 - - - 9 1,607 47,489
Total revenues 24,854,469 3,143,591 102,611 3,390,883 24,202 6,447,743 37,963,499
EXPENDITURES
Current operating
Community services 19,182,018 - - - - - 19,182,018
Public works 4,341,985 1,717,707 - - - - 6,059,692
Community development 2,941,551 - - - - 1,033,706 3,975,257
Policy and administration 711,743 - - - - - 711,743
Debt service:
Principal - 564,000 179,199 - - 1,847,257 2,590,456
Interest - - 67,294 - - - 67,294
Refunded bonds - - - - - 8,836,046 8,836,046
Refunding bond issuance cost - - - - - 81,236 81,236
Capital outlay - 2,824,123 - 12,957,489 - 3,466,330 19,247,942
Total expenditures 27,177,297 5,105,830 246,493 12,957,489 - 15,264,575 60,751,684
Excess(deficiency)of revenues
over(under)expenditures (2,322,828) (1,962,239) (143,882) (9,566,606) 24,202 (8,816,832) (22,788,185)
OTHER FINANCING SOURCES(USES)
Debt proceeds - - - - 17,000,000 9,097,282 26,097,282
Premium on sale of debt - - - - 117,213 - 117,213
Transfers in 3,508,981 384,978 - 9,581,316 - 3,501,867 16,977,142
Transfers out (1,368,545) (675,622) (800,000) (71,898) (9,234,768) (3,855,344) (16,006,177)
Total other financing sources(uses) 2,140,436 (290,644) (800,000) 9,509,418 7,882,445 8,743,805 27,185,460
Net change in fund balances (182,392) (2,252,883) (943,882) (57,188) 7,906,647 (73,027) 4,397,275
Fund balances-as previously reported 7,341,252 4,433,928 1,337,714 126,266 - 9,069,406 22,308,566
Prior-period adjustment-Note 14 393,687 - - - - (393,687) -
Fund balances-beginning of year restated 7,734,939 4,433,928 1,337,714 126,266 - 8,675,719 22,308,566
Fund balances-end of year $ 7,552,547 $ 2,181,045 $ 393,832 $ 69,078 $ 7,906,647 $ 8,602,692 $ 26,705,841
The accompanying notes are an integral part of the basic financial statements.
38
CITY OF TIGARD,OREGON
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND
BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the fiscal year ended June 30,2011
Net change in fund balances--total governmental funds $ 4,397,275
Amounts reported for governmental activities in the
Statement of Activities are different because:
Governmental funds report capital outlays as expenditures
while governmental activities report depreciation expense to
allocate those expenditures over the life of the assets. This is
the amount by which capital outlay exceeded depreciation
in the current period.
Expenditures for capital assets 17,658,965
Less current year depreciation (4,255,203) 13,403,762
In the Statement of Activities,the loss on the disposition
of capital assets is reported. The loss is not a use of
current resources and thus is not reported in the funds. (1,728)
Revenues in the Statement of Activities that do not
provide current financial resources are not reported
as revenues in the funds.
Property taxes (18,489)
Assessment liens (40,164) (58,653)
Repayment of bond principal is an expenditure in the
governmental funds,but the repayment reduces long-term
liabilities in the Statement of Net Assets.
Bond and loan proceeds (26,214,495)
Principal payments 11,041,925 (15,172,570)
Some expenses reported in the Statement of Activities
do not require the use of current financial resources
and therefore are not reported as expenditures in
governmental funds.
Compensated absences (52,300)
Accrued interest on debt (154,021)
Increase in net OPEB obligation (644,556) (850,877)
Internal service funds are used by management to charge the
cost of administrative functions as well as fleet and property
management to individual funds. The net revenue of internal service
funds is reported with governmental activities.
Change in Net Assets- Internal Service Funds (187,521)
Change in Net Assets of Governmental Activities $ 1,529,688 -
The accompanying notes are an integral part of the basic financial statements.
39
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
June 30,2011
Business-type Activities Governmental
Enterprise Funds Activities
Internal
Sanitary Storm Service
Sewer Sewer Water Totals Funds
ASSETS
Current assets:
Cash and investments $ 8,415,496 $ 2,967,042 $ 5,578,594 $ 16,961,131 $ 1,579,500
Accounts receivable 618,196 214,368 4,865,171 5,697,735 32,469
Prepaid expenses - - - - 19,947
Inventory - - 50,463 50,463 12,608
Total current assets 9,033,692 3,181,409 10,494,228 22,709,329 1,644,524
Noncurrent assets:
Capital assets:
Land and construction in process 50,666 6,490 18,750,655 18,807,811 -
Other capital assets(net of accumulated depreciation) 16,252,980 11,025,377 32,834,663 60,113,020 -
Total noncurrent assets 16,303,646 11,031,867 51,585,318 78,920,831 -
Total assets 25,337,338 14,213,276 62,079,546 101,630,160 1,644,524
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 746,414 101,542 1,019,555 1,867,511 373,728
Customer deposits - 5,722 40,952 46,674 -
Line of credit - - 5,953,868 5,953,868 -
Accrued compensated absences 12,044 12,289 48,013 72,346 278,344
Net OPEB obligation 13,728 18,304 31,378 63,410 117,537
Total current liabilities 772,186 137,857 7,093,766 8,003,809 769,609
Noncurrent liabilities:
Accrued compensated absences 4,015 4,096 16,004 24,115 -
Total liabilities 776,201 141,953 7,109,770 8,027,924 769,609
NET ASSETS
Invested in capital assets,net of related debt 16,303,646 11,031,867 45,631,450 72,966,963 -
Restricted for capital projects - - 6,005,540 6,005,540 -
Unrestricted 8,257,491 3,039,456 3,332,786 14,629,733 874,915
Total net assets 5 24,561,137 S 74,071,323 $ 54,969,776 S 93,602,236 S 874,915
The accompanying notes are an integral part of the basic financial statements.
40
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET ASSETS
For the fiscal year ended June 30,2011
Business-type Activities Governmental
Enterprise Funds Activities
Internal
Sanitary Storm Service
Sewer Sewer Water Totals Funds
OPERATING REVENUES
Charges for services $ 1,021,840 $ 2,178,298 $ 9,065,554 $ 12,265,692 $ 7,139,418
Miscellaneous - 309 2,960 3,269 90,461
Total operating revenues 1,021,840 2,178,607 9,068,514 12,268,961 7,229,879
OPERATING EXPENSES
Salaries and wages 460,195 603,332 1,016,056 2,079,583 4,536,204
Contracted services 69,204 401,176 2,883,812 3,354,192 1,073,528
General,administrative and other 217,091 217,760 1,297,555 1,732,406 1,613,477
Depreciation 640,107 445,431 1,709,395 2,794,933 -
Total operating expenses 1,386,597 1,667,699 6,906,818 9,961,114 7,223,209
Operating income(loss) (364,757) 510,908 2,161,696 2,307,847 6,670
NONOPERATING REVENUES(EXPENSES)
Investment revenue 37,729 3,353 74,746 115,828 5,809
Interest expense - - (89,645) (89,645) -
Federal grant revenues - - 4,010,188 4,010,188 -
System development revenue 40,644 - 532,932 573,576 -
Total non-operating revenue 78,373 3,353 4,528,221 4,609,947 5,809
Net income before contributions(loss) (286,384) 514,261 6,689,917 6,917,794 12,479
Transfers in - - 852,698 852,698 -
Transfers out (249,931) (286,363) (1,945,649) (2,481,943) (200,000)
Change in net assets (536,315) 227,898 5,596,966 5,288,549 (187,521)
Net assets--beginning of year 25,097,452 13,843,425 49,372,810 88,313,687 1,062,436
Net assets--end of year $ 24,561,137 $ 14,071,323 $ 54,969,776 $ 93,602,236 $ 874,915
The accompanying notes are an integral part of the basic financial statements.
41
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
For the fiscal year ended June 30,2011
Governmental
Business-type Activities-Enterprise Funds Activities
Sanitary Storm Internal
Sewer Sewer Water Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 1,703,586 $ 2,330,717 $ 6,009,855 $ 10,044,158 $ 7,135,679
Payments to suppliers (983,305) (696,744) (5,961,120) (7,641,169) (2,666,549)
Payments to employees (465,423) (586,952) (959,866) (2,012,241) (4,397,084)
Other receipts - 309 2,960 3,269 82,670
Net cash provided(used)by operating activities 254,858 1,047,330 (908,171) 394,017 154,716
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to other funds (249,931) (286,363) (1,945,649) (2,481,943) (200,000)
Proceeds from other funds - - 852,698 852,698 -
Net cash(used)by capital and related
financing activities (249,931) (286,363) (1,092,951) (1,629,245) (200,000)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
System development revenue 40,644 - 532,932 573,576 -
Proceeds from line of credit - 3,100,000 3,100,000 -
Interest expense - - (89,645) (89,645) -
Grant proceeds - 4,010,188 4,010,188 -
Disposition of capital assets - (309) - (309) -
Acquisition of capital assets (465,116) (6,492) (7,447,534) (7,919,142) -
Net cash(used)by capital and related
financing activities (424,472) (6,801) 105,941 (325,332) -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 37,729 3,353 74,746 115,828 5,809
Net increase(decrease)in cash and cash equivalents (381,816) 757,519 (1,820,435) (1,444,732) (39,475)
Cash and investments--beginning of the year 8,797,312 2,209,523 7,399,029 18,405,864 1,618,975
Cash and investments--end of the year $ 8,415,496 $ 2,967,042 $ 5,578,594 $ 16,961,132 $ 1,579,500
RECONCILIATION OF OPERATING INCOME(LOSS)TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income(loss) $ (364,757) $ 510,908 $ 2,161,696 $ 2,307,847 $ 6,670
Adjustments to reconcile operating income to net cash
provided by operating activities:
Cash flows reported in other categories:
Depreciation expense 640,107 445,431 1,709,395 2,794,933 -
Change in assets and liabilities:
Receivables 681,746 152,419 (3,054,932) (2,220,767) (11,527)
Prepaid expenses - - - - 30,523
Inventory - - - - 65
Accounts payable and accrued liabilities (716,591) (77,808) (1,779,753) (2,574,152) (10,135)
Accrued compensated absences 625 (2,892) 24,812 22,545 21,583
Customer deposits - 968 (767) 201 -
OPEB obligation 13,728 18,304 31,378 63,410 117,537
Net cash provided(used)by operating activities $ 254,858 $ 1,047,330 $ (908,171) $ 394,017 $ 154,716
The accompanying notes are an integral part of the basic financial statements.
42
CITY OF TIGARD, OREGON
STATEMENT OF PLAN NET ASSETS
PENSION TRUST FUND
June 30, 2011
Assets
Cash and cash equivalents $ 5,845,138
Corporate bonds 534,425
Corporate stocks 11,580,807
Total assets 17,960,370
Net assets held in trust for pension benefits $ 17,960,370
STATEMENT OF CHANGES IN PLAN NET ASSETS
PENSION TRUST FUND
For the fiscal year ended June 30, 2011
Additions:
Contributions-employer $ 1,211,118
Contributions-employee 47,273
Investment income 2,661,139
Total additions 3,919,530
Deductions:
Benefit payments and withdrawals 862,534
Increase in net assets 3,056,996
Net assets held in trust for pension benefits
Beginning of year 14,903,374
End of year $ 17,960,370
The accompanying notes are an integral part of the basic financial statements.
43
Notes to Basic Financial Statements
45
1. Summary of Significant Accounting Policies:
The City of Tigard, under its Charter of 1961, is governed by an elected mayor and four council
members who comprise the City Council. The City Council appoints a City Manager,who acts
as the administrative head of government for the city.
In accordance with GASB Statement No. 14, The Financial Reporting Entity, the activities of
the Tigard Urban Renewal Agency (the Agency) are included in the city's financial statements as
a blended component unit. The Agency is a legally separate entity,which is governed by a board
comprised of the City Council, as stipulated in the bylaws. The Council has the ability to impose
its will on the Agency as determined on the basis of budget adoption, taxing authority, and
funding. The purpose of the Agency is to undertake urban renewal projects and activities
pursuant to the city's downtown redevelopment plan. The financial results of the Agency are
reported herein as a debt service fund and a capital projects fund. The Agency also prepares a
separate component unit financial report that may be obtained from the Agency's administrative
offices at 13125 SW Hall Blvd.,Tigard, Oregon 97223.
The financial statements of the city have been prepared in accordance with accounting principles
generally accepted in the United States of America (GAAP). GAAP statements include all
relevant GASB pronouncements. For purposes of the proprietary fund financial statements, the
city has elected not to apply private-sector standards of accounting and financial reporting issued
after November 30, 1989, unless specifically adopted by GASB pronouncements. The city
applies the provisions of all applicable GASB statements that define requirements and the
reporting model for the annual financial reports of state and local governments. The city has
recorded capital and certain other long-term assets and liabilities in the statement of net assets,
reported all revenues and the cost of providing services under the accrual basis of accounting in
the statement of activities,and uses the direct method of reporting cash flows.
Basic Financial Statements
Basic financial statements are presented at both the government-wide and fund financial level.
Both levels of statements categorize activities as either governmental or business-type.
Governmental activities, which are normally supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent
on fees and charges for support.
Government-wide financial statements display information about the city as a whole. For the
most part, the effect of interfund activity has been removed from these statements. Interfund
services provided by one fund and charged to another have been eliminated in the Statement of
Activities. These statements focus on the sustainability of the city as an entity and the change in
aggregate financial position resulting from the activities of the fiscal year. These aggregated
statements consist of the Statement of Net Assets and the Statement of Activities.
The Statement of Activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are
47
1. Summary of Significant Accounting Policies Continued:
clearly identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase,use, or directly benefit from goods, services or
privileges provided by a given function or segment, and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Indirect expenses are recovered through internal service fund charges. These indirect expenses
are allocated based on a full-cost approach, thereby allocating indirect expenses among functions
with the objective of allocating all expenses. Taxes and other items not properly included
among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and the
pension trust fund, even though the pension trust fund is excluded from the government-wide
financial statements. Major individual governmental funds and major individual enterprise funds
are reported as separate columns in the fund financial statements.
Fund financial statements display information at the individual fund level. Each fund is
considered to be a separate accounting entity. Funds are classified and summarized as
governmental,proprietary, or fiduciary.
Currently, the city has governmental, proprietary, and fiduciary fund types. Non-major funds
are combined into a single column in the basic financial statements and are detailed in the
supplemental information.
Basis of Presentation
The financial transactions of the city are recorded in individual funds. Each fund is accounted
for by providing a separate set of self-balancing accounts that comprises its assets, liabilities,
fund equity,revenues and expenditures/expenses.
Professional standards set forth minimum criteria (percentage of the assets, liabilities, revenues
or expenditures/expenses or either fund category or the governmental and enterprise combined)
for the determination of major funds. The city electively added funds as major funds, which
either had debt outstanding or specific community focus. Non-major funds are combined in a
column in the fund financial statements and detailed elsewhere in the financial report.
Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe which transactions are recorded within the various
financial statements. Basis of accounting refers to when transactions are recorded.
The government-wide, proprietary fund and fiduciary fund financial statements are presented on
a full accrual basis of accounting with an economic resource measurement focus. An economic
resource focus concentrates on an entity or fund's net assets. All transactions and events that
affect the total economic resources (net assets) during the period are reported. An economic
resources measurement focus is inextricably connected with full accrual accounting. Under the
48
1. Summary of Significant Accounting Policies Continued:
full accrual basis of accounting, revenues are recorded when earned and expenses are recorded at
the time liabilities are incurred, regardless of the timing of related cash inflows and outflows.
Governmental funds financial statements are presented on a modified accrual basis of
accounting with a current financial resource measurement focus. This measurement focus
concentrates on the fund's resources available for spending currently or in the near future. Only
transactions and events affecting the fund's current financial resources during the period are
reported.
Similar to the connection between an economic resource measurement focus and full accrual
accounting, a current financial resource measurement focus is inseparable from a modified
accrual basis of accounting. Under modified accrual accounting, revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the city considers revenues to be available if they are collected
within 60 days of the end of the current fiscal year. Expenditures generally are recorded when a
liability is incurred, as under accrual accounting. Property taxes, intergovernmental and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so
have been recognized as revenues of the current fiscal period. Only the portion of special
assessments receivable due within the current fiscal period is considered susceptible to accrual as
revenue of the current period. All other revenues are considered to be measurable and available
only when cash is received by the city.
A deferred revenue liability arises in the governmental funds balance sheet when potential
revenue does not meet both the measurable and available criteria for recognition in the current
year. This unavailable deferred revenue consists primarily of uncollected property taxes and
assessments not deemed available to finance operation of the current period. In the
government-wide Statement of Activities,with a full accrual basis of accounting, revenue must
be recognized as soon as it is earned regardless of its availability. Thus, the liability created on
the governmental fund balance sheet for unavailable deferred revenue is eliminated. Note that
deferred revenues also arise outside the scope of measurement focus and basis of accounting,
such as when the city receives resources before it has a legal claim to them. For instance, when
grant monies are received prior to the incurrence of qualifying expenditures.
Similar to the way revenues are recorded, governmental funds only record those expenditures
that affect current financial resources. Principal and interest on general long-term debt is
recorded as a fund liability only when due, or to the extent that it is expected to be liquidated
with expendable financial resources. However, in the government-wide financial statements
with full accrual basis of accounting, all expenditures affecting the economic resource status of
the government must be recognized. Thus, the expense and related accrued liability for long-
term portions of debt and compensated absences must be included.
49
1. Summary of Significant Accounting Policies Continued:
Since the governmental fund statements are presented on a different measurement focus and
basis of accounting than the government-wide statements' governmental column, a
reconciliation is necessary to explain the adjustments needed to transform the fund based
financial statements into the governmental column of the government-wide presentation. This
reconciliation is part of the basic financial statements.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions and 3) capital grants and
contributions. Internally dedicated resources are reported as general revenues rather than as
program revenues. Likewise,general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services, and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the city's Sanitary Sewer, Storm Sewer and Water Funds are
charges to customers for sales and services. The Sanitary Sewer, Storm Sewer and Water Funds
recognize fees intended to recover the cost of connecting new customers to the city's utility
systems as non-operating revenues. Operating expenses for enterprise funds include the cost of
sales and services, administrative expenses and overheads, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses.
The fiduciary fund accounts for the resources held by the city in a custodial capacity, on behalf
of the employees of the city.
When both restricted and unrestricted resources are available for use,it is the city's policy to use
restricted resources first, then unrestricted resources as they are needed.
Assets,Liabilities, and Equity
Cash and Investments
Investments included in cash and investments are stated at cost,which is approximate to the fair
value. Investments in the pension trust fund are stated at fair value.
For purposes of the statement of cash flows, the city considers the proprietary funds' cash and
investments with initial maturities to the city of three months or less, and the amounts in the
Oregon State Treasurer's Investment Pool, to be cash equivalents.
Receivables and Payables
Property taxes are levied and become a lien on July 1. Collection dates are November 15,
February 15, and May 15 following the lien date. Discounts are allowed if the amount due is
received by November 15 or February 15. Taxes unpaid and outstanding on May 16 are
considered delinquent.
50
1. Summary of Significant Accounting Policies Continued:
Inventories
Inventories of parts,materials and supplies are stated at the lower of cost on the first-in, first-out
basis, or market, in the proprietary funds. The purchases method is used in accounting for
inventory for all funds on the budgetary basis. The consumption method is used for the
government-wide presentation as well as the proprietary funds and business-type activities.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads,
pathways, street lights, etc.) are reported in the applicable governmental or business type
activities columns in the government-wide financial statements, and in the proprietary fund
statements.
Capital assets are charged to expenditures as purchased or constructed in the governmental fund
statements, and capitalized in the proprietary fund statements. Capital assets are recorded at
historical cost or estimated historical cost. Donated assets are recorded at estimated fair market
value as of the date of the donation.
Capital assets are defined by the city as assets with an initial, individual cost of$5,000 or more,
and an estimated useful life of greater than one year. Additions or improvements and other
capital outlays that significantly extend the useful life of an asset, or that significantly increase the
capacity of an asset are capitalized. Other costs for repairs and maintenance are expensed as
incurred.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of
Activities with accumulated depreciation reflected in the Statement of Net Assets and is
provided on the straight-line basis over the following estimated useful lives:
Asset Years
Buildings and improvements 25-40
Improvements other than buildings 10-20
Machinery and equipment 5-10
Vehicles 5-10
Utility systems 25-40
Infrastructure 20-40
Accrued Compensated Absences and Sick Pay
It is the city's policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. There is no liability for unpaid accumulated sick leave, since the city does not have a
policy to pay any amounts when employees separate from the city. All vacation pay is accrued
when incurred in the government-wide and proprietary fund financial statements. A liability for
these amounts is reported in the governmental funds only when it has matured, for example, as
result of employee resignations or retirements. At June 30, 2011 there were no governmental
fund liabilities for accrued compensated absences.
51
1. Summary of Significant Accounting Policies Continued:
Interfund Transfers
The city utilizes three types of interfund transfers. The first type is transfers received for
services provided. These transfers are based on a cost allocation plan and are reflected as
expenses of the appropriate activity in the government—wide statements. The second type of
transfer is a transfer of resources. Typically, this transfer is made to close out funds that are no
longer needed for financial reporting. The third type of transfer is a transfer for direct costs
that can be specifically identified and billed directly to the benefiting fund. These types of
transfers are reflected as expenses of the appropriate activity in the basic financial statements.
Long-term Debt
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type in the
Statement of Net Assets. Bond premiums and discounts are deferred and amortized over the
life of the bonds. Bonds payable are reported net of the applicable bond premium or discount.
Bond issuance costs,which are immaterial, are treated as period costs in the year of issue.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds
received,are reported as debt service expenditures.
Fund Balance
In the fund financial statements, the fund balance for governmental funds is reported in a
hierarchy of classifications based primarily on the extent to which the government is bound to
honor constraints on the specific purposes for which amounts in those funds can be spent.
Fund balance is reported as nonspendable when the resources cannot be spent because they are
either in a nonspendable form or legally or contractually required to be maintained intact.
Resources in nonspendable form include inventories, prepaids, deposits and assets held for
resale.
Fund balance is reported as restricted when the constraints placed on the use of resources are
either: (a) externally imposed by creditors (such as through debt covenants), grantors,
contributors, laws or regulations of other governments; or (b) imposed by law through
constitutional provisions or enabling legislation.
Fund balance is reported as committed when the City Council passes an ordinance that places
specific constraints on how the resources may be used. The City Council can modify or rescind
the ordinance at any time through passage of an additional ordinance.
52
1. Summary of Significant Accounting Policies Continued:
Resources that are constrained by the government's intent to use them for a specific purpose,
but are neither restricted nor committed, are reported as assigned fund balance. Intent is
expressed when the City Council approves which resources should be "reserved" during the
adoption of the annual budget. The city's Finance Director uses that information to determine
whether those resources should be classified as assigned or unassigned for presentation in the
city's Comprehensive Annual Financial Report.
Unassigned fund balance is the residual classification for the General Fund. This classification
represents fund balance that is not assigned, committed, restricted or nonspendable within the
General Fund. This classification is also used to report any negative fund balance amounts in
other governmental funds.
Use of Estimates
In preparing the city's financial statements, management is required to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements, and the reported amounts
of revenues and expenses/expenditures during the reporting period. Actual results could differ
from those estimates.
Budget
A budget is prepared for each fund, except for the Pension Trust Fund, essentially in
accordance with the modified accrual basis of accounting used by governmental funds,which is
in accordance with the legal requirements of Oregon Local Budget Law.
The resolution authorizing appropriations sets the maximum level of expenditures for each
fund and may not legally be over expended. Appropriations lapse at the end of each fiscal year.
Appropriations are made at the major program level for each fund, for example, Community
Services, Public Works, Community Development, Policy and Administration, Debt Service,
Capital Improvements and Contingency. The detail budget document is required to contain
more detailed information for the above-mentioned expenditure categories. The budgets for
each of the funds include capital outlay appropriations. Debt service is also budgeted separately.
After budget approval, the City Council may approve supplemental budgeted appropriations if
an occurrence, condition, or need exists which had not been ascertained at the time the budget
was adopted. A supplemental budget may require hearings before the public, publications in
newspapers and approval by the City Council. Original and supplemental budgets may be
modified by the use of appropriations transfers between the levels of control. Such transfers
require approval by the City Council. Management may not amend the budget without Council
approval.
53
1. Summary of Significant Accounting Policies Continued:
For GAAP presentation, the transfers from operating funds for services provided by the
internal service funds and the General Fund are considered revenues and
expenses/expenditures, as appropriate, but are considered to be interfund transfers for
budgetary purposes.
2. Fund Types:
The city's financial operations are accounted for in the following funds:
Governmental Funds
Governmental funds finance most governmental functions of the city. The acquisition, use and
balances of the city's expendable financial resources and the related liabilities, excluding those
accounted for in proprietary funds, are accounted for through governmental funds. The
measurement focus is upon determination of changes in current financial resources, rather than
upon net income determination. The following are the city's major governmental funds:
General Fund - This fund accounts for the city's general operations. It is used to
account for all transactions not specifically required to be accounted for in the city's
other funds.
Gas Tax Fund -This fund records shared revenues from the State and County taxes on
the sale and use of motor vehicle fuel. Funds are used for construction, reconstruction,
improvement, repair, maintenance, operation and use of public highways, roads, streets,
and roadside rest areas. Monies may also be used for street lighting and cleaning, storm
drainage, traffic control devices and administration costs.
Bancroft Debt Service Fund — This fund accounts for the payment of Bancroft
improvement bond principal and interest. The sources of revenue are the collection of
assessments against benefited property, interest and contributions from other funds for
their share of costs.
Parks Capital Fund—This fund was established to track various parks and greenspaces
projects. The revenues are generated from various federal and state grants,
intergovernmental agreements and transfers from other funds.
Parks Bond Fund—This fund was established through voter approval of a $17 million
parks bond to account for purchases of land and greenspaces to be used for park
development.
54
2. Fund Types, Continued:
Proprietary Funds
Proprietary funds are used to account for the acquisition, operation and maintenance of sewer,
storm drainage, and water systems in the city. These funds are entirely or predominantly self-
supported through user charges to customers. The measurement focus is upon net income
determination, rather than upon determination of changes in current financial resources. The
following are the city's major proprietary funds:
Enterprise Funds:
Sanitary Sewer Fund - This fund accounts for the city's sewer utility operations.
Storm Sewer Fund — This fund accounts for the city's storm drainage operations
which consists of the following two budgetary funds: Storm Sewer Fund and Water
Quality/Quantity Fund.
Water Fund - This fund accounts for the city's water operations which consists of the
following three budgetary funds: Water Fund,Water SDC Fund and Water CIP Fund.
Additionally, the city reports the following fund type. Neither of these funds are major
funds:
Internal Service Funds:
Central Services Fund — This fund accounts for the central administrative functions
within the city which are generally allocated to other funds.
Fleet/Property Management Fund—This fund accounts for all activity related to the
Fleet Maintenance and Property Management divisions in the city.
Fiduciary Fund:
Pension Trust Fund - This fund accounts for the city's employee defined contribution
pension plan.
Nonmajor Governmental Funds
Other governmental funds include nonmajor special revenue, debt service and capital projects
funds of the city. The following lists all other governmental funds by governmental fund type:
Special Revenue Funds:
City Gas Tax Fund
Electrical Inspection Fund
Criminal Forfeiture Fund
Building Fund
Tree Replacement Fund
Library Fund
55
2. Fund Types, Continued:
Debt Service Funds:
General Obligation Debt Service Fund
Urban Renewal Debt Service Fund
Capital Projects Funds:
Facility Fund
Transportation Development Tax Fund
Traffic Impact Fee Fund
Underground Utility Fund
Street Maintenance Fee Fund
Parks SDC Fund
Urban Renewal Capital Projects Fund
3. Cash and Investments:
The city maintains a cash and investment pool that is available for use by all funds except the
Pension Trust Fund. Each fund type's portion of this pool is displayed on the combined
balance sheet as "cash and investments". The investments of the Pension Trust Fund are held
separately from those of other city funds.
Cash and investments are comprised of the following at June 30, 2011:
Cash on hand $ 3,450
Cash held by Department of Finance,Washington County 55,740
Deposits with financial institutions 4,386,628
Investments 41,972,231
Total cash and investments $ 46,418,049
Deposits
Deposits with financial institutions include bank demand deposits and time deposit accounts.
The total bank balance is $11,032,819 (book balance is $9,642,544). Of these deposits,
$500,000 was covered by federal depository insurance and $10,582,819 was collateralized in
accordance with Oregon statutes.
Custodial credit risk — deposits. In the case of deposits, this is the risk that in the event of
bank failure, the city's deposits may not be returned to it. The Federal Depository Insurance
Corporation (FDIC) provides insurance for the city's deposits with financial institutions up to
$250,000 each for the aggregate of all non-interest bearing accounts and aggregate of all interest
bearing accounts at each institution. Institutions with deposits in excess of FDIC coverage
participate in the Oregon Public Funds Collateralization Program (PFCP). The PFCP is a
shared liability structure for participating bank depositories. It provides some protection for
56
3. Cash and Investments, Continued:
public funds, although it does not guarantee that all funds are 100% protected. Barring any
exceptions, a bank depository is required to pledge collateral valued as follows:
If well capitalized, 10%
If adequately capitalized,25%
If undercapitalized, 110%
The Office of the State Treasurer categorizes the financial institutions in Oregon. In the event
of a bank failure, the entire pool of collateral pledged by all qualified Oregon public funds bank
depositories is available to repay deposits of public funds of government entities. The Office
of the State Treasurer maintains a list of qualified financial institutions for the deposit of public
funds in excess of FDIC insurance. The financial institutions holding city deposits are all on
the State Treasurer's list.
Investments
State statutes authorize the city to invest primarily in general obligations of the U.S. government
and its agencies, certain bonded obligations of Oregon municipalities, bank repurchase
agreements, bankers' acceptances, certain commercial paper and the State of Oregon Local
Government Investment Pool.
Interest rate risk. In accordance with its investment policy, the city manages its exposure to
declines in fair value by limiting the individual maturities in its investment portfolio to eighteen
months or less. The city does have a provision in its investment policy that up to twenty
percent of the portfolio can have maturities from eighteen months to thirty-six months.
Custodial credit risk — investments. For an investment, this is the risk that, in the event of
failure of the counterparty, the city will not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party. All of the city's investments,
except for the investment in the Local Government Investment Pool, which is not evidenced
by securities, are held in safekeeping by the financial institution counterparty in the financial
institution's general customer account name.
The city participates in the Oregon State Treasurer's Local Government Investment Pool
(LGIP), an open-ended; no-load diversified portfolio created under ORS 294.805 to 294.895
that is not registered with the U.S. Securities and Exchange Commission as an investment
company. The LGIP is administered by the State Treasurer and the Oregon Investment
Council with the advice of the Oregon Short-Term Fund Board. These funds must be invested
and managed, as a prudent investor would, exercising reasonable care, skill and caution. The
Oregon Audits Division of the Secretary of State's Office audits the LGIP annually.
The city employees participate in a defined contribution pension plan. These funds are
recorded in the city's Pension Trust Fund. The balance at June 30, 2011 is $17,960,370. This
balance is not included in the government-wide or fund financial statements, but is shown
separately on page 43.
57
3. Cash and Investments, Continued:
As of June 30, 2011, the city had the following investments:
Percentage of
Investment Type Fair Value Cost Portfolio
State Treasurer's Local
Government Investment Pool $ 21,367,641 $ 21,367,641 50.41%
Money markets 5,809,906 5,809,906 13.71%
U.S. Government Securities 9,099,133 9,197,776 21.70%
Certificates of Deposit 247,000 247,000 0.58%
Corporate bonds 5,448,551 5,765,058 13.60%
Total Investments $ 41,972,231 $ 42,387,381 100.00%
Concentration of credit risk: The city's policy for investing in individual issuers varies
depending on the type of investments. Agency securities are restricted to no more than 90
percent of the total portfolio. Municipal bonds are restricted to no more than 25 percent of the
total portfolio. No more the 35 percent of the total portfolio of investments may be invested
in corporate bonds. Investments in corporate bonds of any one issuer may not exceed 5
percent of the investment portfolio.
Credit risk: The city's policy, which adheres to State of Oregon law, is to limit its Corporate
and Municipal investments to the following: Issuers within Oregon must be rated "A" (bonds)
or A-2 / P-2 (commercial paper) or better by Standard and Poor's, Moody's Investors Service
or any other nationally recognized statistical rating organization. Issuers not in Oregon must be
rated AA /Aa (bonds) or A-1 / P-1 (commercial paper) or better.
At June 30, 2011, the city's investments were rated as follows:
Highest Rating from
Moody's Investors Service or Standard&Poor's Corporation
Investment Type Total Aaa/AAA Aa/AA Not Rated
LGIP $ 21,367,641 $ - $ - $ 21,367,641
Money markets 5,809,906 - - 5,809,906
US Government securities 9,099,133 9,099,133 - -
Certificates of Deposit 247,000 - - 247,000
Corporate bonds 5,448,551 5,448,551 -
Total $ 41,972,231 $ 14,547,684 $ - $ 27,424,547
58
3. Cash and Investments, Continued:
The city has a formal investment policy that explicitly limits investment maturities as a means of
managing its exposure to fair value loss arising from increasing interest rates. At June 30, 2011,
the concentration of those maturities included the Local Government Investment Pool, Money
Markets, and investments with average maturities of twelve months or less at 85.77% of the
total portfolio. Investments with maturities between twelve and eighteen months made up
2.37% of the portfolio and investments with maturities between eighteen and thirty-six months
were 11.86% of the total portfolio.
4. Assessment Liens Receivable:
Assessment liens receivable represent the uncollected amounts levied against benefited property
for the cost of local improvements. Because the assessments are liens against the benefited
property, an allowance for uncollectible amounts is not deemed necessary. Substantially all
assessments are payable over a period of 10 to 20 years. Assessments bear interest from 5.2 to
9.4 percent. At June 30, 2011, the portion of the assessments receivable balance that represents
delinquent accounts is $758.
59
5. Capital Assets:
Capital asset activity for governmental activities for the year ended June 30, 2011 was as
follows:
Balances Balances
June,30 June,30
2010 Additions Deletions Transfers 2011
Non-depreciable
Land $ 7,967,069 $ - $ - $ 12,714,313 $ 20,681,382
Construction in progress 8,866,188 17,362,710 (14,940) (17,568,639) 8,645,319
Total non-depreciable 16,833,257 17,362,710 (14,940) (4,854,326) 29,326,701
Depreciable
Building and improvements 21,226,765 220,459 (2,230) 292,224 21,737,218
Land improvements 6,742,375 - - - 6,742,375
Machinery and equipment 2,054,594 125,739 (17,781) - 2,162,552
Autos and trucks 2,398,637 105,104 (46,725) - 2,457,016
Office equipment 1,984,314 7,999 - - 1,992,313
Infrastructure 208,749,125 12,650 - 4,562,102 213,323,877
Total depreciable 243,155,810 471,951 (66,736) 4,854,326 248,415,351
Accumulated depreciation
Building and improvements (4,713,666) (501,531) 502 - (5,214,695)
Land improvements (5,328,403) (130,900) - - (5,459,303)
Machinery and equipment (1,736,045) (84,973) 17,781 - (1,803,237)
Autos and trucks (1,541,803) (360,275) 46,725 - (1,855,353)
Office equipment (524,311) (269,095) - - (793,406)
Infrastructure (53,673,399) (2,908,429) - - (56,581,828)
Total accumulated depreciation (67,517,627) (4,255,203) 65,008 - (71,707,822)
Governmental activities
capital assets,net $ 192,471,440 $ 13,579,458 $ (16,668) $ - $ 206,034,230
Depreciation expense for governmental activities is charged to functions as follows:
Community services $ 596,913
Public works 3,274,234
Community development 105,098
Policy and administration 278,958
Total depreciation for governmental activities $ 4,255,203
60
5. Capital Assets Continued:
Capital assets activity for business-type activities for the year ended June 30, 2011, was as
follows:
Balances Balances
June 30,2010 Additions Deletions Transfers June 30,2011
Non-depreciable
Land $ 4,422,170 $ - $ - $ - $ 4,422,170
Construction in progress 8,250,302 7,329,982 - (1,194,643) 14,385,641
Total non-depreciable 12,672,472 7,329,982 - (1,194,643) 18,807,811
Depreciable
Land improvements 392,710 - - - 392,710
Buildings and improvements 2,010,974 - - - 2,010,974
Sewer System 22,822,468 189,175 - 905,379 23,917,022
Storm drainage system 16,556,794 310 - - 16,557,104
Water system 54,874,831 - (6,851) 289,264 55,157,244
Equipment 1,465,814 51,276 - - 1,517,090
Auto and trucks 1,504,626 355,558 (17,832) - 1,842,352
Total depreciable 99,628,217 596,319 (24,683) 1,194,643 101,394,496
Accumulated depreciation
Land improvements (360,669) - - - (360,669)
Buildings and improvements (607,776) (45,166) - - (652,942)
Sewer system (7,759,942) (538,273) - - (8,298,215)
Storm drainage system (5,630,703) (408,582) - - (6,039,285)
Water system (22,002,913) (1,441,410) - - (23,444,323)
Equipment (1,131,578) (233,189) - - (1,364,767)
Auto and trucks (1,010,794) (128,313) 17,832 - (1,121,275)
Total accumulated depreciation (38,504,375) (2,794,933) 17,832 - (41,281,476)
Business-type activities
capital assets,net $73,796,314 $5,131,368 $ (6,851) $ - $78,920,831
Depreciation expense for business-type activities is charged to activities as follows:
Sanitary sewer $ 640,107
Storm sewer 445,431
Water 1,709,395
Total depreciation for business-type activities $ 2,794,933
61
6. Long-term Debt and Other Debt:
General Obligation Bonds payable
Bond transactions for the year ended June 30, 2011, and future maturities of bond principal, are
as follows:
General Obligation bond issues — the city issued $8,655,000 of general obligation bonds for a
current refunding of bonds originally issued in 2002 to build a new library. The refunding will
reduce total interest payments by approximately $632,000 over the remaining life of the bonds.
Interest rates range from 3% to 4% on specific maturities.
Transportation Bonds: original amount was $7,250,000. Funds were used for street
improvements. Interest rate is 4.35%.
Parks Bonds: original amount was $17,000,000. Funds were used to purchase and develop
parks. Interest rates range from 3% to 4.75% on specific maturities.
Fiscal Year Amount Amount Added Paid Outstanding Future
Due Due Refunded During Year During Year June 30,2011 Interest
2011 $ 1,176,890 $ 1,176,890 $ - $ -
2012 1,250,281 (590,281) 911,906 - 1,571,906 1,580,009
2013 1,293,891 (613,891) 1,260,927 - 1,940,927 1,201,849
2014 1,327,787 (632,787) 1,301,277 - 1,996,277 1,134,469
2015 1,371,991 (656,991) 1,341,626 - 2,056,626 1,065,236
2016 1,421,471 (686,471) 1,381,976 - 2,116,976 993,933
2017-2021 7,051,647 (3,891,647) 7,625,911 - 10,785,911 3,765,258
2022-2026 1,814,142 (1,814,142) 6,384,898 - 6,384,898 1,969,354
2027-2031 - 5,743,692 - 5,743,692 820,926
16,708,100 $ (8,886,210) $ 25,952,213 $ 1,176,890 $ 32,597,213 $ 12,531,034
Local Improvement District Bonds:
Interest rates from 3.9 percent to 7.25 percent; payable first from assessments to benefited
properties and second, from the general credit of the city. Original amount of$1,307,969 for
69th Avenue Local Improvement District and original amount of $1,947,678 for Dartmouth
Street Local Improvement District.
62
6. Long-term Debt and Other Debt Continued:
Paid and
Fiscal Year Amount Called Outstanding Future
Due Due During Year June 30,2011 Interest
2011 $ 179,200 $ (179,200) $ - $ -
2012 58,200 - 58,200 60,417
2013 62,500 - 62,500 56,121
2014 457,983 - 457,983 42,063
2015 72,100 72,100 31,311
2016 77,400 77,400 25,989
2017-2020 296,347 - 296,347 43,134
$ 1,203,730 $ (179,200) $ 1,024,530 $ 259,035
Notes Payable:
Note payable issued January 23, 2003 — Original amount of$2,290,248. Funds were used for
expansion and updating for Cook Park. Interest rates from 3 percent to 4.35 percent; payable
from Parks SDC Fund.
Fiscal Year Amount Paid Outstanding Future
Due Due During Year June 30,2011 Interest
2011 $ 259,053 $ (259,053) $ - $ -
2012 270,925 - 270,925 11,785
$ 529,978 $ (259,053) $ 270,925 $ 11,785
63
6. Long-term Debt and Other Debt Continued:
Water line of credit opened June 17, 2010 — Maximum amount is $6,000,000; maturity date
June 30, 2012;interest is a variable rate using either the LIBOR Fixed Rate or the BBA LIBOR
Daily Floating Rate Option. In addition, the city pays a commitment fee of 0.50% per annum
of the unused portion of the line of credit. Water revenues are pledged for repayment, but the
city intends to issue revenue bonds and repay the line of credit from the bond proceeds in
future years. The proceeds from the line of credit were used to begin funding an
intergovernmental agreement with the city of Lake Oswego for long-term water supply. The
amount outstanding at June 30, 2011 is $5,953,868.
Fiscal Year Amount Due Future
Due _ Due During Year Interest
2012 $ 5,953,868 $ (5,953,868) TBD
$ 5,953,868 $ (5,953,868) $ -
Other long-term obligations for accrued compensated absences and applicable changes during
the year ended June 30,2011 are as follows:
Balance Balance Due
June 30, June 30, in one
2010 Additions Retirements 2011 year
Governmental activities:
Compensated absences $ 1,352,311 $ 1,771,895 $ (1,696,421) $ 1,427,785 $ 1,070,839
Business-type activities:
Compensated absences $ 73,916 $ 156,594 $ (134,049) $ 96,461 $ 72,346
Expenditures for liquidating compensated absences liabilities are recorded in the General,Special
Revenue,Capital Projects,Enterprise,and Internal Service Funds.
64
7. Transfers:
Interfund transfers are used to pay administrative services, provide funds for debt service,
contribute toward the cost of capital projects, and provide operational resources. Transfers for
fiscal year ended June 30,2011 are as follows:
Transfers
From Other Transfers To
Funds Other Funds
General Fund $ 3,508,981 $ 1,368,545
Gas Tax Fund 384,978 675,622
Bancroft Debt Service Fund - 800,000
Parks Capital Fund 9,581,316 71,898
Parks Bond Fund - 9,234,768
Nonmajor Capital Project Funds 2,955,089 2,858,401
Nonmajor Special Revenue Funds 546,778 747,943
Enterprise Funds 852,698 2,481,943
Internal Service Funds 609,280 200,000
$ 18,439,120 $ 18,439,120
These transfers have been eliminated in the government-wide statement of activities other than
the net effect between governmental activities and business-type activities.
8. Other Post-Employment Benefits (OPEB)
Plan Description
The city is required by Oregon Revised Statute 243.303 to provide retirees (if they elect) with
group health and dental insurance coverage from the date of retirement age to age 65 at the
same rates as provided to current city employees. The Governmental Accounting Standards
Board Statement Number 45 is applicable to the city due to the resulting implicit rate subsidy.
This single-employer "plan" is not a stand-alone plan and there are no separately issued
financial statements. The city does not provide any explicit employee benefits.
Funding Policy
The city funds the plan only to the extent of current-year insurance premium requirements on a
pay-as-you-go basis. The city has not established an irrevocable trust to accumulate assets to
fund the cost of the net OPEB obligation that arises from the implicit subsidy. As of the
actuarial report date August 1, 2010, 5 retirees and 4 spouses were participating in the plan. The
premium rates are established each year through negotiation with the various insurance carriers.
65
8. Other Post-Employment Benefits (OPEB) Continued:
Annual OPEB Cost and Net OPEB Obligation
The city's annual OPEB cost is calculated based on the Annual Required Contribution (ARC)
of the city, an amount actuarially determined in accordance with the parameters of GASB 45.
The ARC represent a level of funding that,if paid on an ongoing basis,is projected to cover the
normal cost each year and amortize any unfunded actuarial liabilities over a period of 15 years.
The following schedule shows the components of the city's annual OPEB cost for the year, the
amount actually contributed to the plan and the changes in the city's OPEB obligation to the
plan:
Annual Required Contribution(ARC) $ 354,463
Interest on prior year net OPEB contribution 21,023
Adjustment to ARC (32,977)
Annual OPEB cost 342,509
Implicit benefit payments (101,726)
Increase in net OPEB obligation 240,783
Net OPEB obligation-beginning of the year 467,183
Net OPEB obligation- end of the year $ 707,966
The city's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and
the net OPEB obligation for FY 2010-11, 2009-10 and 2008-09 were as follows:
Percent of Annual
Fiscal Year Annual OPEB OPEB Cost Net OPEB
Ended Cost Contributions Obligation
6/30/2009 $ 325,795 31% $ 225,590
6/30/2010 323,847 25% 467,183
6/30/2011 342,509 30% 707,966
Funding Status and Funding Progress
As of August 1, 2010, the most recent actuarial valuation, the plan was zero percent funded as
the plan is funded on a pay-as-you-go basis. The actuarial liability for benefits was $1,824,386
and also equaled the unfunded actuarial liability (UAAL). The annual payroll of active
employees covered by the plan (covered payroll) was $17,889,428 and the ratio of the UAAL to
the covered payroll was 10.2%.
The plan's actuarial valuation involves estimates of amounts and assumptions about the
probability of events far into the future, such as, future employment, mortality and healthcare
cost trends. Amounts determined about the funding status of the plan and the annual required
contributions are subject to periodic revision as actual results for each period are compared
with past expectations and new assumptions are made about the future.
66
8. Other Post-Employment Benefits (OPEB) Continued:
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan
and include the health benefits provided at the time of each valuation and the historical
pattern of sharing of benefit costs between the city and plan members. The actuarial
methods and assumptions include techniques that are designed to reduce the effects of
short-term volatility in actuarial results consistent with the long term perspective of the
calculations.
In the August 1, 2010 valuation, the projected unit credit cost method was used. The
investment return for the city was assumed to be 4% to reflect the long-term annual
investment returns for the Oregon Local Government Investment Pool and comparable
investment vehicles. Medical and vision premium increases were assumed to be 8.5% in the
first year (August 2011 premiums), 7.5% in the second year, 6.5% in the third year, 6% for
years four through 23, 5.5% for years 24 through 47 and 5% thereafter. Dental premium
increases were assumed to be 5% per year. The UAAL is being amortized as a level
percentage of payroll over a rolling period of 15 years.
9. Retirement Health Insurance Account (RHIA):
Plan Description. As a member of Oregon Public Employees Retirement System (OPERS)
the city contributes to the Retirement Health Insurance Account (RHIA) for each of its eligible
employees. RHIA is a cost-sharing multiple-employer defined benefit other postemployment
benefit plan administered by OPERS. RHIA pays a monthly contribution toward the cost of
Medicare companion health insurance premiums of eligible retirees. Oregon Revised Statue
(ORS) 238.420 established this trust fund. Authority to establish and amend the benefit
provisions of RHIA reside with the Oregon Legislature. The plan is closed to new entrants
after January 1, 2004. OPERS issues a publicly available financial report that includes financial
statements and required supplementary information. That report may be obtained by writing to
Oregon Public Employees Retirement System,PO Box 23700,Tigard, OR 97281-3700.
Fund Policy. Because RHIA was created by enabling legislation (ORS 238.420), contribution
requirements of the plan members and the participating employers were established and may be
amended only by the Oregon Legislature. ORS require that an amount equal to $60 or the total
monthly cost of Medicare companion health insurance premiums coverage, whichever is less,
shall be paid from the Retirement Health Insurance Account established by the employer, and
any monthly cost in excess of $60 shall be paid by the eligible retired member in the manner
provided in ORS 238.410. To be eligible to receive this monthly payment toward the premium
cost the member must: (1) have eight years or more of qualifying service in PERS at the time
of retirement or receive a disability allowance as if the member had eight years or more of
creditable service in PERS, (2) receive both Medicare Parts A and B coverage, and (3) enroll in
a PERS-sponsored health plan. An eligible surviving spouse or dependent of a deceased PERS
retiree may receive the subsidy if he or she (1) is receiving a retirement benefit or allowance
67
9. Retirement Health Insurance Account (RHIA) Continued:
from PERS or (2) was insured at the time the member died and the member retired before May
1, 1991.
Participating cities are contractually required to contribute to RHIA at a rate assessed each year
by OPERS, currently 0.29 percent of annual covered payroll for Tier 1/Tier 2, and 0.19 percent
for OPSRP. The OPERS Board of Trustees sets the employer contribution rate based on the
annual required contribution (ARC) of the employers, an amount actuarially determined in
accordance with the parameters of GASB Statement 45. The ARC represents a level of funding
that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) of the plan over a period not to exceed thirty
years. The city's contributions to RHIA for the year ended June 30, 2011 and 2010, were
included with contributions to PERS for pension costs.
10. Retirement Plans:
The city contributes to retirement plans on behalf of all eligible employees. At June 30, 2011,
the following employee groups were covered by the following retirement plans:
Group Retirement Plan
Management/Professional Staff(Non-union) International City Managers Association
Retirement Corp. (ICMARC) Money Purchase
Plan
Oregon Public Employees Union Employees ICMARC Money Purchase Plan
Tigard Police Officers State of Oregon Public Employees Retirement
System (OPERS)
68
10. Retirement Plans, Continued:
Oregon Public Employees Retirement Systems (OPERS)
Plan Description
The city is a participating employer in the Oregon Public Employees Retirement System
(OPERS), a cost sharing multiple-employer public employee retirement system, established
under Oregon Revised Statutes, Section 238.600, which acts as a common investment and
administrative agent for public employers in the State of Oregon. Substantially all full-time
police employees are participants in PERS. The plan provides retirement, death and disability
benefits to participants or their beneficiaries. Benefits are established by State Statute, and
employer contributions are made at an actuarially determined rate as adopted by the OPERS
Retirement Board. OPERS, a component unit of the State of Oregon, issues a comprehensive
annual financial report, which may be obtained by writing to Oregon Public Employees
Retirement System, P.O. Box 23700,Tigard, Oregon 97281-3700.
Funding Policy
The city's annual required contribution rate, as of the most recent actuarial valuation of July 1,
2007,is 10.37 percent of covered payroll for Tier I &II employees and 5.84 percent of covered
payroll for Oregon Public Service Retirement Plan (OPSRP) employees. At June 30, 2011 the
city had 32 employees in OPSRP.
The city is required by State Statute to contribute its current employer rate of 10.37 percent and
5.84 percent of covered wages, and has contractually committed to pay the employee
contributions of 6 percent.
Annual Pension Cost
Because all OPERS participating employers are required by law to submit the contributions as
adopted by the OPERS Retirement Board, there is no net pension obligation to report
and the annual contributions are equal to the annual pension cost. For the fiscal years ended
June 30, 2011, 2010 and 2009, the city's annual pension cost was $823,698, $814,738 and
$914,958 respectively.
ICMARC Plans
The city contributes to defined contribution, single employer retirement plans at a specified
percent of gross salary depending on the employment group, for all employees who are not
covered under the Police Pension Plan. Employees may make contributions to these plans.
The city is required to make contributions to these plans under authority of City Council
resolution and the plan documents.
Employees become eligible to participate in the plans after six months of service and vest
immediately. Employees may withdraw funds upon retirement or termination of employment.
69
10. Retirement Plans, Continued:
Contributions to the plans are made to a fiduciary. Since the plans are administered by the city,
the assets, equity and operations of the plans are accounted for in the General Employees
Pension Plan Fund, a pension trust fund. The plans invest in various money market and equity
mutual funds.
Required and actual contributions to the plan were $1,211,118 for the year ended June 30, 2011.
Contributions are calculated as a percentage of gross payroll. The contributions range from 10
to 11 percent for all eligible employees participating in the plans.
Deferred Compensation Plans
The city offers certain employees deferred compensation plans created in accordance with
Internal Revenue Code Section 457. The plans permit employees to defer a portion of their
salary until future years. Contributions for the plans are made to fiduciaries that hold the funds
in trust for the plans' participants. The deferred compensation plans are not considered city
funds and are excluded from the city's financial statements.
11. Transactions with Clean Water Services of Washington County:
The city collects charges for treatment of city sewage on behalf of the Clean Water Services of
Washington County and remits all collections to Clean Water Services, except for 16.31 percent
of sewer service charges collected and 3.98 percent of connection charges collected, in
accordance with an agreement between the city and Clean Water Services. Payments of
$9,201,788 were made to Clean Water Services during fiscal year 2011 under this agreement.
The net amount retained by the city is reported as revenue in the enterprise funds in the
proprietary funds statement of revenues, expenses and changes in fund net assets. Revenues
are reported net because the city acts in a fiduciary capacity on behalf of Clean Water Services.
12. Constitutional Property Tax Limitations:
In November 1990, the Oregon voters approved a State constitutional limit on property taxes
for schools and non-school government operations. Under the provisions of the limitation, tax
revenues are separated into those for the public school system and those for local government
operations other than the public school system. The limitation specifies $10 is the maximum
allowable tax for each $1,000 of property real market value imposed by local governments other
than the public school system.
The limitation applies to all state and local taxes and charges on property except for the
following:
1. Incurred charges for goods or services received at the owner's option;
70
12. Constitutional Property Tax Limitations, Continued:
2. Assessments for capital construction that provide a special benefit to the property and
that can be paid off over at least ten years;
3. Taxes to repay bonded debt authorized by the state constitution;
4. Taxes to repay existing bonded debt for capital construction, and
5. Taxes to repay new bonded debt for capital construction if approved by voters.
During May 1997, Oregon voters approved Measure 50 which limits taxes on each property by
reducing the 1997-98 assessed value of each property to 90 percent of its 1995-96 value.
Measure 50 also limits future growth of the taxable value of each property to 3 percent per year
with certain exceptions. Measure 50 also establishes permanent tax rates for Oregon's local
taxing districts, which replace the former tax base amounts of the districts. Tigard's taxing
authority is limited to its permanent rate of$2.51 per thousand dollars of assessed value.
At the beginning of each fiscal year, the Washington County Assessor determines assessed
values of properties in the city. Washington County is responsible for the levying and
collecting the property taxes as well as distributing the tax revenue to all taxing jurisdictions in
the County.
13. Risk Management:
The city is exposed to various risks of loss related to torts; theft of, damage to, and destruction
of assets; errors and omissions;injuries to employees and others; and natural disasters. The city
purchases commercial insurance to deal with substantially all these risks with nominal
deductibles. Settled claims resulting from these risks have not exceeded commercial insurance
coverage in any of the past three fiscal years.
14. Prior Period Adjustment:
An error was discovered in the fiscal year 2010 Comprehensive Annual Financial Report. In
the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance,
interfund loans from the General Fund to the Urban Renewal Capital Projects Fund were not
reclassified from transfers (as required by Oregon Local Budget Law) to receivables and
payables (as required by GAAP). The net impact of the error caused an increase in General
Fund beginning fund balance of $393,687, and a corresponding decrease in beginning fund
balance of the Urban Renewal Capital Projects Fund (a nonmajor fund) of$393,687.
71
Required Supplementary Information
73
CITY OF TIGARD, OREGON
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Taxes $ 12,218,117 $ 12,218,117 $ 12,243,957 $ 25,840
Licenses and permits 821,040 821,040 1,029,219 208,179
Intergovernmental revenue 5,616,141 6,082,719 5,937,445 (145,274)
Charges for services 254,793 254,793 214,336 (40,457)
Fines and forfeitures 936,000 936,000 907,216 (28,784)
Franchise fees 4,706,831 4,706,831 4,375,420 (331,411)
Interest earnings 102,184 102,184 101,003 (1,181)
Miscellaneous 62,465 62,465 45,873 (16,592)
Total revenues 24,717,571 25,184,149 24,854,469 (329,680)
EXPENDITURES:
Community services 19,304,054 19,533,793 19,182,018 351,775
Public works 4,569,689 4,576,029 4,341,985 234,044
Community development 3,050,141 3,053,620 2,941,551 112,069
Policy and administration 808,510 808,510 711,743 96,767
Total expenditures 27,732,394 27,971,952 27,177,297 794,655
Change in fund balance
before other financing sources(uses) (3,014,823) (2,787,803) (2,322,828) 464,975
Other financing sources(uses):
Operating transfer in 3,523,981 3,523,981 3,508,981 (15,000)
Interfund loan (249,000) (249,000) (80,695) 168,305
Repayment of interfund loan 249,000 249,000 249,000 -
Operating transfer out (872,956) (1,640,074) (1,368,545) 271,529
Total other financing sources(uses) 2,651,025 1,883,907 2,308,741 424,834
Contingency (918,466) (710,659) - 710,659
Change in fund balance (1,282,264) (1,614,555) (14,087) 1,600,468
FUND BALANCE BEGINNING OF YEAR 6,117,299 6,489,077 7,341,252 852,175
FUND BALANCE END OF YEAR $ 4,835,035 $ 4,874,522 $ 7,327,165 $ 2,452,643
75
CITY OF TIGARD, OREGON
GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Grants $ - $ 459,769 $ 499,219 $ 39,450
State gas tax 2,394,898 2,394,898 2,331,837 (63,061)
County gas tax 191,818 191,818 183,274 (8,544)
Charges for services - - 130 130
Licenses and permits 2,602 2,602 94,206 91,604
Interest earnings 54,906 54,906 34,925 (19,981)
Total revenues 2,644,224 3,103,993 3,143,591 39,598
EXPENDITURES:
Public works 1,986,472 1,986,472 1,717,707 268,765
Debt Service 564,000 564,000 564,000 -
Capital projects 4,187,915 4,647,684 2,824,123 1,823,561
Total expenditures 6,738,387 7,198,156 5,105,830 2,092,326
Change in fund balance
before other financing sources (uses) (4,094,163) (4,094,163) (1,962,239) 2,131,924
Other financing sources(uses):
Operating transfer in 877,310 1,077,310 384,978 (692,332)
Operating transfer out (475,622) (675,622) (675,622) -
Interfund loan (200,000) (200,000) (200,000) -
Total other financing sources(uses) 201,688 201,688 (490,644) (692,332)
Contingency (58,000) (26,844) - 26,844
Change in fund balance (3,950,475) (3,919,319) (2,452,883) 1,466,436
FUND BALANCE BEGINNING OF YEAR 3,963,528 3,963,528 4,433,928 470,400
FUND BALANCE END OF YEAR $ 13,053 $ 44,209 $ 1,981,045 $ 1,936,836
76
CITY OF TIGARD,OREGON
NOTES TO REQUIRED SUPPLEMENTAL INFORMATION
BUDGET TO GAAP RECONCILIATION
For the fiscal year ended June 30,2011
Sections of Oregon Revised Statutes (Oregon Budget Law) require most transactions be budgeted on the
modified accrual basis of accounting. However, there are certain transactions where statutory budget
requirements conflict with generally accepted accounting principles (GAAP).
The following discusses the differences between the budget basis and GAAP basis of accounting for the
General Fund and the Gas Tax Fund:
General Gas Tax
Fund Fund
Net change in fund balance-budget basis $ (14,087) $ (2,452,883)
Budgeted resources not qualifying as revenues or other
financing sources under GAAP:
Payments on interfund loans are treated as transfers on
a budgetary basis.
Such resources are reclassified as a reduction in
receivableson a GAAP basis. (249,000)
Budgeted expenditures not qualifying as expenditures or other
financing sources under GAAP:
Interfund loans are treated as transfers on a budgetary
basis.
Such expenditures are reclassified as receivables
on a GAAP basis. 80,695 200,000
Net change in fund balance-GAAP basis $ (182,392) $ (2,252,883)
77
Other Supplementary Information
79
CITY OF TIGARD, OREGON
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30,2011
Special Debt Capital
Revenue Service Project
Funds Funds Funds Total
ASSETS:
Cash and investments $ 3,685,246 $ 661,229 $ 5,028,289 $ 9,374,764
Accounts receivable 77,401 55,584 166,863 299,848
Assessment liens receivable - - 57,735 57,735
Total assets $ 3,762,647 $ 716,813 $ 5,252,887 $ 9,732,347
LIABILITIES:
Accounts payable $ 177,205 $ - $ 28,766 $ 205,971
Customer deposits 311,189 - - 311,189
Due to other governments 89,392 - - 89,392
Due to other funds - - 425,382 425,382
Deferred revenues-Property taxes - 39,986 - 39,986
Deferred revenues-Assessment liens - - 57,735 57,735
Total liabilities 577,786 39,986 511,883 1,129,655
FUND BALANCE 3,184,861 676,827 4,741,004 8,602,692
Total liabilities and fund balances $ 3,762,647 $ 716,813 $ 5,252,887 $ 9,732,347
81
CITY OF TIGARD,OREGON
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the fiscal year ended June 30,2011
Special Debt Capital
Revenue Service Projects
Funds Funds Funds Total
REVENUES:
Taxes $ 615,571 $ 1,378,818 $ - $ 1,994,389
Licenses and permits 1,467,091 - - 1,467,091
Intergovernmental revenues 3,348 - 3,974 7,322
Charges for services 917,091 - 1,995,750 2,912,841
Interest earnings 33,096 4,031 27,366 64,493
Miscellaneous revenues 1,533 - 74 1,607
Total revenues 3,037,730 1,382,849 2,027,164 6,447,743
EXPENDITURES:
Community development 1,033,706 - - 1,033,706
Debt service 338,854 1,226,555 281,848 1,847,257
Debt service-refunded bonds - 8,836,046 8,836,046
Refunding bond issuance cost - 81,236 - 81,236
Capital outlay 1,940,018 - 1,526,312 3,466,330
Total expenditures 3,312,578 10,143,837 1,808,160 15,264,575
Changes in fund balance
before other fmancing sources (uses) (274,848) (8,760,988) 219,004 (8,816,832)
Other financing sources(uses):
Bond refunding proceeds - 9,097,282 - 9,097,282
Operating transfer in 546,778 - 2,955,089 3,501,867
Operating transfer out (747,943) (249,000) (2,858,401) (3,855,344)
Total other financing sources(uses) (201,165) 8,848,282 96,688 8,743,805
Changes in fund balance (476,013) 87,294 315,692 (73,027)
FUND BALANCE-
beginning of year as restated 3,660,874 589,533 4,425,312 8,675,719
FUND BALANCE-end of year $ 3,184,861 $ 676,827 $ 4,741,004 $ 8,602,692
82
Special Revenue Funds
The balance sheet and statement of revenues,expenditures, and changes in fund balance of the nonmajor
special revenue funds are reported in the combining governmental fund statements. Fund statements
for the major special revenue funds are reported in the basic financial statements.
Schedules of revenues, expenditures, and changes in fund balance—budget and actual are also presented
here for each individual special revenue fund.
Major Special Revenue Fund:
Gas Tax Fund —This fund records share revenues from the State of Oregon and Washington County
taxes on sale of motor vehicle fuel. The city uses these revenues to fund various construction,
reconstruction,improvements,repairs,maintenance and operation of public highways,roads and streets.
Nonmajor Special Revenue Funds:
City Gas Tax Fund—This fund accounts for revenues generated from Tigard's local gas tax and funds
projects for transportation improvements.
Electrical Inspection Fund - This fund accounts for fees charged for permits, plan check fees and
inspection of electrical improvements.
Criminal Forfeiture Fund - This fund accounts for funds and property seized from criminals in
connection with crimes committed prior to passage of Ballot Measure 3
Building Fund-This fund accounts for fees charged for building inspection and plan review activities.
Tree Replacement Fund—This fund accounts for funds collected from developers in lieu of preserving
trees,which the city can use to plant trees in public rights-of-way and other public properties.
Library Fund—This fund accounts for the amounts received from several donations and bequests for
various special projects and artwork.
83
CITY OF TIGARD,OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
June 30,2011
City Gas Electrical Criminal Tree
Tax Inspection Building Forfeiture Replacement Library
Fund Fund Fund Fund Fund Fund Total
ASSETS:
Cash and investments $ 459,604 $ 163,334 $ 821,938 $ 149,366 $ 1,562,404 $ 528,600 $ 3,685,246
Accounts receivable 57,148 960 9,001 293 7,603 2,396 77,401
Total assets $ 516,752 $ 164,294 $ 830,939 $ 149,659 $ 1,570,007 $ 530,996 $ 3,762,647
LIABILITIES AND FUND BALANCES:
LIABILITIES:
Accounts payable $ 5,400 $ - $ 111,739 $ - $ 406 $ 59,660 $ 177,205
Due to other governments - 604 - 88,788 - - 89,392
Customer deposits - 22,125 17,177 - 271,887 - 311,189
Total liabilities 5,400 22,729 128,916 88,788 272,293 59,660 577,786
FUND BALANCE 511,352 141,565 702,023 60,871 1,297,714 471,336 3,184,861
Total liabilities and fund balances $ 516,752 $ 164,294 $ 830,939 $ 149,659 $ 1,570,007 $ 530,996 $ 3,762,647
85
CITY OF TIGARD,OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
For the fiscal year ended June 30,2011
City Gas Electrical Criminal Tree
Tax Inspection Forfeiture Building Replacement Library
Fund Fund Fund Fund Fund Fund Total
REVENUES:
Taxes $ 615,571 $ - $ - $ - $ - $ - $ 615,571
Licenses and permits - 207,072 - 1,260,019 - - 1,467,091
Fines and forfeitures - - 3,348 - - - 3,348
Tree replacement revenue - - - - 917,091 917,091
Miscellaneous revenues - - - 1,533 - - 1,533
Interest earnings 22,183 664 278 2,548 5,377 2,046 33,096
Total revenues 637,754 207,736 3,626 1,264,100 922,468 2,046 3,037,730
EXPENDITURES:
Community development - - - 1,033,706 - - 1,033,706
Capital projects 1,940,018 - - - - - 1,940,018
Debt service payments 338,854 - - - - - 338,854
Total expenditures 2,278,872 - - 1,033,706 - - 3,312,578
Changes in fund balance
before other financing sources(uses) (1,641,118) 207,736 3,626 230,394 922,468 2,046 (274,848)
Other financing sources(uses):
Operating transfer in - - - 175,000 371,778 - 546,778
Operating transfer out (277,422) (175,000) - (94,031) (201,490) - (747,943)
Total other financing sources(uses) (277,422) (175,000) - 80,969 170,288 - (201,165)
Changes in fund balance (1,918,540) 32,736 3,626 311,363 1,092,756 2,046 (476,013)
FUND BALANCE-beginning of year 2,429,892 108,829 57,245 390,660 204,958 469,290 3,660,874
FUND BALANCE-end of year $ 511,352 $ 141,565 $ 60,871 $ 702,023 $ 1,297,714 $ 471,336 $ 3,184,861
86
CITY OF TIGARD, OREGON
CITY GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
City gas tax $ 665,000 $ 665,000 $ 615,571 $ (49,429)
Interest earnings 34,071 34,071 22,183 (11,888)
Total revenues 699,071 699,071 637,754 (61,317)
EXPENDITURES:
Capital projects 2,253,900 2,253,900 1,940,018 313,882
Debt service payments 399,000 399,000 338,854 60,146
Total expenditures 2,652,900 2,652,900 2,278,872 374,028
Changes in fund balance
before other fmaning sources(uses) (1,953,829) (1,953,829) (1,641,118) 312,711
Other financing sources:
Transfers in 210,000 210,000 - (210,000)
Transfers out (279,257) (279,257) (277,422) 1,835
Total other financing sources(uses) (69,257) (69,257) (277,422) (208,165)
Change in fund balance (2,023,086) (2,023,086) (1,918,540) 104,546
FUND BALANCE BEGINNING OF YEAR 2,384,221 2,384,221 2,429,892 45,671
FUND BALANCE END OF YEAR $ 361,135 $ 361,135 $ 511,352 $ 150,217
87
CITY OF TIGARD, OREGON
ELECTRICAL INSPECTION FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Licenses and permits $ 146,726 $ 146,726 $ 207,072 $ 60,346
Interest earnings 1,189 1,189 664 (525)
Total revenues 147,915 147,915 207,736 59,821
Other financing sources (uses):
Operating transfer out (175,000) (175,000) (175,000) -
Change in fund balance (27,085) (27,085) 32,736 59,821
FUND BALANCE BEGINNING OF YEAR 79,293 79,293 108,829 29,536
FUND BALANCE END OF YEAR $ 52,208 $ 52,208 $ 141,565 $ 89,357
88
CITY OF TIGARD, OREGON
BUILDING FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Licenses and permits $ 800,351 $ 902,288 $ 1,260,019 $ 357,731
Miscellaneous 9,793 9,793 1,533 (8,260)
Interest earnings 19,489 19,489 2,548 (16,941)
Total revenues 829,633 931,570 1,264,100 332,530
EXPENDITURES:
Community development 1,011,736 1,113,673 1,033,706 79,967
Change in fund balance
before other financing sources (uses) (182,103) (182,103) 230,394 412,497
Other financing sources(uses):
Operating transfer in 175,000 175,000 175,000 -
Operating transfers out (94,031) (94,031) (94,031) -
Total other financing sources(uses) 80,969 80,969 80,969 -
Contingency 60,129 60,129 - 60,129
Change in fund balance (161,263) (161,263) 311,363 472,626
FUND BALANCE BEGINNING OF YEAR 162,031 162,031 390,660 228,629
FUND BALANCE END OF YEAR $ 768 $ 768 $ 702,023 $ 701,255
89
CITY OF TIGARD, OREGON
CRIMINAL FORFEITURE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Interest earnings S 1,864 $ 1,864 $ 278 $ (1,586)
Forfeitures - - 3,348 3,348
Total revenues 1,864 1,864 3,626 1,762
Other financing(uses):
Operating transfer out (15,000) (15,000) - 15,000
Change in fund balance (13,136) (13,136) 3,626 16,762
FUND BALANCE BEGINNING OF YEAR 56,852 56,852 57,245 393
FUND BALANCE END OF YEAR $ 43,716 $ 43,716 $ 60,871 $ 17,155
90
CITY OF TIGARD, OREGON
TREE REPLACEMENT FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Tree replacement revenue $ 40,000 $ 40,000 $ 917,091 $ 877,091
Interest earnings 4,000 4,000 5,377 1,377
Total revenues 44,000 44,000 922,468 878,468
Other financing sources(uses):
Operating transfer in - 371,778 371,778 -
Operating transfer out (204,500) (204,500) (201,490) 3,010
Total other financing sources(uses) (204,500) 167,278 170,288 3,010
Change in fund balance (160,500) 211,278 1,092,756 881,478
FUND BALANCE BEGINNING OF YEAR 464,412 92,634 204,958 112,324
FUND BALANCE END OF YEAR $ 303,912 $ 303,912 $ 1,297,714 $ 993,802
91
CITY OF TIGARD, OREGON
LIBRARY FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Interest earnings $ 4,663 $ 4,663 $ 2,046 $ (2,617)
Other financing(uses):
Operating transfer out (100,000) (100,000) - 100,000
Change in fund balance (95,337) (95,337) 2,046 97,383
FUND BALANCE BEGINNING OF YEAR 466,322 466,322 469,290 2,968
FUND BALANCE END OF YEAR $ 370,985 $ 370,985 $ 471,336 $ 100,351
92
Debt Service Funds
The balance sheet and statement of revenues, expenditures, and changes in fund balance of the nonmajor
debt service fund is reported in the combining nonmajor governmental fund statements. Fund statements
for the major debt service fund are reported in the basic financial statements.
Schedules of revenues, expenditures, and changes in fund balance—budget and actual are also presented
here for each debt service fund.
Major Debt Service Funds:
Bancroft Debt Service Fund-This fund accounts for payment of Bancroft improvement bond principal
and interest. The source of revenue is the collection of assessments against benefited property, interest
and contributions from other funds for their share of costs.
Nonmajor Debt Service Fund:
General Obligation Debt Service Fund - This fund accounts for payment of general obligation bond
principal and interest. The source of revenue is from property taxes and interest earnings.
Urban Renewal Agency Debt Service Fund - This fund accounts for payment of the Tigard Urban
Renewal Agency bond principal and interest. The source of revenue is from property taxes and interest
earnings.
93
CITY OF TIGARD, OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
June 30,2011
General Urban Renewal
Obligation Agency
Debt Debt
Service Fund Service Fund Total
ASSETS:
Cash and investments $ 170,998 $ 490,231 $ 661,229
Property taxes receivable 42,349 13,235 55,584
Total assets $ 213,347 $ 503,466 $ 716,813
LIABILITIES AND FUND BALANCES:
LIABILITIES:
Deferred revenues:
Property taxes $ 31,511 $ 8,475 $ 39,986
Total liabilities 31,511 8,475 39,986
FUND BALANCE RESTRICTED
FOR DEBT SERVICE 181,836 494,991 676,827
Total liabilities and
fund balances $ 213,347 $ 503,466 $ 716,813
95
CITY OF TIGARD, OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES
June 30,2011
General Urban Renewal
Obligation Agency
Debt Debt
Service Fund Service Fund Total
REVENUES:
Taxes $ 1,049,969 $ 328,849 $ 1,378,818
Interest earnings 2,964 1,067 4,031
Total revenues 1,052,933 329,916 1,382,849
EXPENDITURES:
Debt service 1,226,555 - 1,226,555
Debt service-refunded bonds 8,836,046 - 8,836,046
Refunding bond issuance cost 81,236 - 81,236
Total expenditures 10,143,837 - 10,143,837
Change in fund balance
before other financing sources: (9,090,904) 329,916 (8,760,988)
Other financing sources (uses):
Transfers out - (249,000) (249,000)
Bond refunding proceeds 9,097,282 - 9,097,282
Change in fund balance 6,378 80,916 87,294
FUND BALANCE-beginning of year 175,458 414,075 589,533
FUND BALANCE-end of year $ 181,836 $ 494,991 $ 676,827
96
CITY OF TIGARD, OREGON
BANCROFT BOND DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Collection of bonded assessments $ 120,000 $ 120,000 $ 40,164 $ (79,836)
Interest earnings 36,913 36,913 62,447 25,534
Total revenues 156,913 156,913 102,611 (54,302)
EXPENDITURES:
Debt service 193,378 193,378 246,493 (53,115)
Change in fund balance
before other financing sources(uses) (36,465) (36,465) (143,882) (107,417)
Other financing(uses):
Operating transfer out (800,000) (800,000) (800,000) -
Change in fund balance (836,465) (836,465) (943,882) (107,417)
FUND BALANCE BEGINNING OF YEAR 954,003 954,003 1,337,714 383,711
FUND BALANCE END OF YEAR $ 117,538 $ 117,538 $ 393,832 $ 276,294
97
CITY OF TIGARD, OREGON
GENERAL OBLIGATION DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Taxes $ 988,883 $ 988,883 $ 1,049,969 $ 61,086
Interest earnings 4,544 4,544 2,964 (1,580)
Total revenues 993,427 993,427 1,052,933 59,506
EXPENDITURES:
Debt service 976,383 1,226,558 1,226,555 3
Debt service-refunded bonds - - 8,836,046 (8,836,046)
Refunding bond issuance cost - - 81,236 (81,236)
Total expenditures 976,383 1,226,558 10,143,837 (8,917,279)
Change in fund balance
before other financing sources(uses) 17,044 (233,131) (9,090,904) (8,857,773)
Other financing sources (uses):
Debt proceeds-refunding - 180,000 - (180,000)
Refunding bonds issued - - 9,097,282 9,097,282
Total other financing sources(uses) - 180,000 9,097,282 8,917,282
Change in fund balance 17,044 (53,131) 6,378 59,509
FUND BALANCE BEGINNING OF YEAR 78,761 148,936 175,458 26,522
FUND BALANCE END OF YEAR $ 95,805 $ 95,805 $ 181,836 $ 86,031
98
CITY OF TIGARD, OREGON
URBAN RENEWAL AGENCY DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Property taxes $ 212,600 $ 212,600 $ 328,849 $ 116,249
Interest earnings 6,225 6,225 1,067 (5,158)
Total revenues 218,825 218,825 329,916 111,091
Other financing(uses):
Operating transfer out (249,000) (249,000) (249,000) -
Change in fund balance (30,175) (30,175) 80,916 111,091
FUND BALANCE BEGINNING OF YEAR 414,993 414,993 414,075 (918)
FUND BALANCE END OF YEAR $ 384,818 $ 384,818 $ 494,991 $ 110,173
99
Capital Projects Funds
Combining statements for all individual nonmajor capital projects funds are reported here. The combined
totals are reported in the combining nonmajor governmental fund statements. Fund statements for the
major capital projects fund are reported in the basic financial statements.
Schedules of revenues, expenditures, and changes in fund balance—budget and actual are also presented
here for each capital projects fund.
Major Capital Projects Fund:
Parks Capital Fund - This fund accounts for system development charges for major improvements to
recreational facilities within the City
Non-major Capital Projects Funds:
Facility Fund-This fund accounts for monies set aside for future major City facility improvements.
Transportation Development Tax Fund — This fund accounts for traffic impact fees collected on
roads within the City's urban service areas. This fund replaces TIF starting July 1,2009.
Traffic Impact Fee Urban Services Fund - This fund accounts for traffic impact fees collected on
roads within the City's urban services area. Funds will be used for highway and transit capital
improvements approved in the City's Capital Improvement Plan (CIP). This fund was closed this year as
the services were transferred back to Washington County.
Underground Utility Fund - This fund accounts for monies received from developers for future
underground utility improvements.
Street Maintenance Fee Fund — This fund was established in FY 2003-04 to track the revenues and
expenditures for the Street Maintenance Fee. This fee provides revenue designated for use in the
maintenance of existing streets.
Parks SDC Fund—This fund was established in FY 2005-06 to track the revenues associated with the
collection of Parks System Development Charges. These funds are used to fund the acquisition,
development, and expansion of additional recreation spaces and facilities that are included in the City's
Park Master Plan.
Urban Renewal Agency Capital Projects Fund - This fund was established in FY 2007-08 for the
creation of a new urban renewal agency improve downtown Tigard. Although expenditures were
budgeted in this fund for FY 2007-08,there were no actual expenditures from the fund for this fiscal year.
101
CITY OF TIGARD,OREGON
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
June 30,2011
Transportation Traffic Street Urban Renewal
Development Impact Underground Maintenance Parks Agency
Facility Tax Fee Utility Fee SDC Capital
Fund Fund Fund Fund Fund Fund Projects Fund Total
ASSETS:
Cash and investments $ 428,657 $ 466,883 $ 847,872 $ 506,703 $ 341,346 $ 2,382,555 $ 54,273 $ 5,028,289
Accounts receivable 1,777 2,135 4,178 2,497 112,746 43,528 2 166,863
Assessments liens receivable - - 57,735 - - - - 57,735
Total assets $ 430,434 $ 469,018 $ 909,785 $ 509,200 $ 454,092 $ 2,426,083 $ 54,275 $ 5,252,887
LIABILITIES AND FUND BALANCES:
LIABILITIES: o,
Accounts payable and accrued liabilities $ 12,955 $ - $ 429 $ 3,482 $ 70 $ - $ 11,830 $ 28,766 0 A-
Due to other funds - - - - - - 425,382 425,382
Deferred revenues - - 57,735 - - - - 57,735
Total liabilities 12,955 - 58,164 3,482 70 - 437,212 511,883
FUND BALANCES 417,479 469,018 851,621 505,718 454,022 2,426,083 (382,937) 4,741,004
Total liabilities and fund balances $ 430,434 $ 469,018 $ 909,785 $ 509,200 $ 454,092 $ 2,426,083 $ 54,275 $ 5,252,887
CITY OF TIGARD,OREGON
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCE
For the fiscal year ended June 30,2011
Transportation Traffic Street Urban Renewal
Development Impact Underground Maintenance Parks Agency
Facility Tax Fee Utility Fee SDC Capital
Fund Fund Fund Fund Fund Fund Projects Fund Total
REVENUES:
Intrgovernmental revenue $ - $ - $ - $ - $ - $ 3,974 $ - $ 3,974
Charges for services - 325,297 4,947 11,950 1,167,391 486,165 - 1,995,750
Interest earnings 1,270 1,094 11,503 2,156 1,337 9,883 123 27,366
Miscellaneous revenues 74 - - - - - - 74
Total revenues 1,344 326,391 16,450 14,106 1,168,728 500,022 123 2,027,164
EXPENDITURES:
Debt Service - - - - - 281,848 - 281,848
Capital projects 438,539 - - - 806,955 - 280,818 1,526,312
Total expenditures 438,539 - - - 806,955 281,848 280,818 1,808,160
Change in fund balance .1-O
before other financing sources (437,195) 326,391 16,450 14,106 361,773 218,174 (280,695) 219,004 x-
Other financing sources(uses):
Transfers in 548,820 - - - 200,000 1,957,269 249,000 2,955,089
Transfers out (4,450) (36,403) (83,524) (15,051) (454,454) (2,264,519) - (2,858,401)
Total other financing sources(uses) 544,370 (36,403) (83,524) (15,051) (254,454) (307,250) 249,000 96,688
Change in fund balance 107,175 289,988 (67,074) (945) 107,319 (89,076) (31,695) 315,692
FUND BALANCE-beginning of year 310,304 179,030 918,695 506,663 346,703 2,515,159 _ 42,445 4,818,999
Restatement of beginning fund balance-see
Note 14 - - - - - - (393,687) (393,687)
Restated beginning fund balance 310,304 179,030 918,695 506,663 346,703 2,515,159 (351,242) 4,425,312
FUND BALANCE-end of year $ 417,479 $ 469,018 $ 851,621 $ 505,718 $ 454,022 $ 2,426,083 $ (382,937) $ 4,741,004
CITY OF TIGARD, OREGON
CAPITAL PROJECTS FUND -FACILITIES
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Miscellaneous $ - $ - $ 74 $ 74
Interest earnings 3,164 3,164 1,270 (1,894)
Total revenues 3,164 3,164 1,344 (1,820)
EXPENDITURES:
Capital projects 168,320 453,820 438,539 15,281
Change in fund balance
before other financing sources (165,156) (450,656) (437,195) 13,461
Other financing sources:
Operating transfer in 363,320 648,820 548,820 (100,000)
Operating transfer out (4,450) (4,450) (4,450) -
Total other financing sources(uses) 358,870 644,370 544,370 (100,000)
Change in fund balance 193,714 193,714 107,175 (86,539)
FUND BALANCE BEGINNING OF YEAR 316,364 316,364 310,304 (6,060)
FUND BALANCE END OF YEAR $ 510,078 $ 510,078 $ 417,479 $ (92,599)
105
CITY OF TIGARD, OREGON
TRANSPORTATION DEVELOPMENT TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 166,536 $ 166,536 $ 325,297 $ 158,761
Interest earnings 11,112 11,112 1,094 (10,018)
Total revenues 177,648 177,648 326,391 148,743
Other financing sources (uses):
Operating transfer out (36,403) (36,403) (36,403) -
Change in fund balance 141,245 141,245 289,988 148,743
FUND BALANCE BEGINNING OF YEAR 116,433 116,433 179,030 62,597
FUND BALANCE END OF YEAR $ 257,678 $ 257,678 $ 469,018 $ 211,340
106
CITY OF TIGARD, OREGON
TRAFFIC IMPACT FEE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 64,000 $ 64,000 $ 4,947 $ (59,053)
Interest earnings 11,112 11,112 11,503 391
Miscellaneous revenues 510 510 - (510)
Total revenues 75,622 75,622 16,450 (59,172)
Other financing(uses):
Transfers out (313,408) (313,408) (83,524) 229,884
Change in fund balance (237,786) (237,786) (67,074) 170,712
FUND BALANCE BEGINNING OF YEAR 740,788 740,788 918,695 177,907
FUND BALANCE END OF YEAR $ 503,002 $ 503,002 $ 851,621 $ 348,619
107
CITY OF TIGARD, OREGON
UNDERGROUND UTILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 15,629 $ 15,629 $ 11,950 $ (3,679)
Interest earnings 7,053 7,053 2,156 (4,897)
Total revenues 22,682 22,682 14,106 (8,576)
Other financing sources (uses):
Operating transfer out (97,202) (97,202) (15,051) 82,151
Change in fund balance (74,520) (74,520) (945) 73,575
FUND BALANCE BEGINNING OF YEAR 470,191 470,191 506,663 36,472
FUND BALANCE END OF YEAR $ 395,671 $ 395,671 $ 505,718 $ 110,047
108
CITY OF TIGARD, OREGON
STREET MAINTENANCE FEE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 1,266,046 $ 1,266,046 $ 1,167,391 $ (98,655)
Interest earnings 2,013 2,013 1,337 (676)
Total revenues 1,268,059 1,268,059 1,168,728 (99,331)
EXPENDITURES:
Capital projects 840,400 840,400 806,955 33,445
Change in fund balance
before other financing(uses) 427,659 427,659 361,773 (65,886)
Other financing(uses):
Transfer in - 200,000 200,000 -
Transfer out (254,454) (454,454) (454,454) -
Change in fund balance 173,205 173,205 107,319 (65,886)
FUND BALANCE BEGINNING OF YEAR 201,256 201,256 346,703 145,447
FUND BALANCE END OF YEAR $ 374,461 $ 374,461 $ 454,022 $ 79,561
109
CITY OF TIGARD, OREGON
PARKS CAPITAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Intergovernmental $ 3,350,000 $ 3,350,000 $ 3,390,660 $ 40,660
Interest earnings - - 223 223
Total revenues 3,350,000 3,350,000 3,390,883 40,883
EXPENDITURES:
Capital projects 6,074,100 23,089,100 12,957,489 10,131,611
Change in fund balance
before other financing sources(uses) (2,724,100) (19,739,100) (9,566,606) 10,172,494
Other financing sources(uses):
Operating transfer in 2,692,100 19,707,100 9,581,316 (10,125,784)
Operating transfer out (71,898) (71,898) (71,898) -
Total other financing sources(uses) 2,620,202 19,635,202 9,509,418 (10,125,784)
Change in fund balance (103,898) (103,898) (57,188) 46,710
FUND BALANCE BEGINNING OF YEAR 115,020 115,020 126,266 11,246
FUND BALANCE END OF YEAR $ 11,122 $ 11,122 $ 69,078 $ 57,956
110
CITY OF TIGARD, OREGON
PARKS BOND FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Interest earnings $ - $ - $ 24,193 $ 24,193
Miscellaneous - - 9 9
Total revenues - - 24,202 24,202
Other financing sources(uses):
Debt proceeds - 17,000,000 17,000,000 -
Premium on sale of debt - - 117,213 117,213
Operating transfer out - (17,000,000) (9,234,768) 7,765,232
Total other financing sources(uses) - - 7,882,445 7,882,445
Change in fund balance - - 7,906,647 7,906,647
FUND BALANCE END OF YEAR $ - $ - $ 7,906,647 $ 7,906,647
'111
CITY OF TIGARD, OREGON
PARKS SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Grants $ - $ - $ 3,974 $ 3,974
Charges for services 356,976 356,976 486,165 129,189
Interest earnings 19,489 19,489 9,883 (9,606)
Total revenues 376,465 376,465 500,022 123,557
EXPENDITURES:
Debt Service 281,848 281,848 281,848 -
Change in fund balance
before other financing(uses) 94,617 94,617 218,174 123,557
Other financing(uses):
Operating transfer in - - 1,957,269 1,957,269
Operating transfer out (2,408,263) (2,423,263) (2,264,519) 158,744
Total other financing sources(uses) (2,408,263) (2,423,263) (307,250) 2,116,013
Change in fund balance (2,313,646) (2,328,646) (89,076) 2,239,570
FUND BALANCE BEGINNING OF YEAR 2,546,398 2,561,398 2,515,159 (46,239)
FUND BALANCE END OF YEAR $ 232,752 $ 232,752 $ 2,426,083 $ 2,193,331
112
CITY OF TIGARD, OREGON
URBAN RENEWAL AGENCY CAPITAL PROJECT FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
_Original Final _ Amounts (Under)
REVENUES:
Interest earnings $ - $ - $ 123 $ 123
EXPENDITURES:
Capital projects 491,500 491,500 280,818 210,682
Change in fund balance
before other financing sources (491,500) (491,500) (280,695) 210,805
Other financing sources:
Operating transfer in 449,000 449,000 529,695 80,695
Operating transfer out - (249,000) (249,000)
Total other financing sources(uses) 449,000 449,000 280,695 (168,305)
Change in fund balance (42,500) (42,500) - 42,500
FUND BALANCE BEGINNING OF YEAR 42,500 42,500 42,445 (55)
FUND BALANCE END OF YEAR $ - $ - 42,445 $ 42,445
Reconciliation of budgetary fund balance
to GAAP basis fund balance:
Budgeted resources not qualifying as revenues or other
financing sources under GAAP:
Interfund loans are treated as transfers on a
budgetary basis. Transfers in are reclassified
as payables on a GAAP basis. (280,695)
Transfers out are treated as receivables
on a GAAP basis. 249,000
Restatement of beginning GAAP fund balance-
see Note 14 (393,687)
Fund balance-GAAP basis $ (382,937)
113
Enterprise Funds
For GAAP reporting purposes, the City reports three proprietary funds as major funds. These funds are
the Sanitary Sewer Fund, the Storm Sewer Fund which consists of the Storm Sewer Fund and the Water
Quality/Quantity Fund,and the Water Fund which includes the Water Fund,Water SDC Fund and Water
CIP Fund, however, for budgetary and legal purposes these funds are accounted for separately as listed
below.
All of the City's enterprise funds meet the criteria for major fund reporting and are reported in the basic
financial statements.
Schedules or revenues and changes in fund net assets — budget and actual are presented here for each
individual enterprise fund as required by Oregon regulations.
Major Enterprise Funds:
Sanitary Sewer Fund-This fund accounts for the City's sewer utility operations.
Storm Sewer Fund-This fund accounts for the City's storm drainage operations.
Storm Sewer Fund (budgetary basis financial statements only)
Water Quality/Quantity Fund (budgetary basis financial statements only)
Water Fund-This fund accounts for the City's water operations.
Water Fund (budgetary basis financial statements only)
Water SDC Fund(budgetary basis financial statements only)
Water CIP Fund (budgetary basis financial statements only)
115
CITY OF TIGARD, OREGON
SANITARY SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 1,850,000 $ 1,850,000 $ 1,050,003 $ (799,997)
Interest earnings 98,846 98,846 37,729 (61,117)
Total revenues 1,948,846 1,948,846 1,087,732 (861,114)
EXPENDITURES:
Public works 1,068,269 1,068,269 1,068,150 119
Capital projects 829,667 829,667 129,103 700,564
Total expenditures 1,897,936 1,897,936 1,197,253 700,683
Change in fund balance
before other financing sources(uses) 50,910 50,910 (109,521) (160,431)
Other financing(uses):
Transfers out (196,289) (249,931) (249,931) -
Contingency 265,000 211,358 - 211,358
Change in fund balance 119,621 12,337 (359,452) 50,927
FUND BALANCE BEGINNING OF YEAR 9,884,621 9,884,621 8,626,583 (1,258,038)
FUND BALANCE END OF YEAR $10,004,242 $ 9,896,958 $ 8,267,131 $ (1,207,111)
117
CITY OF TIGARD, OREGON
SANITARY SEWER FUND
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
For the fiscal year ended June 30, 2011
Operating and
Non-Operating Expenditures
Revenues /Expenses
Budgetary basis $ 1,087,732 $ 1,197,253
Deferred revenue 12,481 -
Change in accrued compensated absences - 625
Expenditures capitalized - (465,116)
Depreciation expense - 640,107
Net OPEB obligation - 13,728
Operating and non-operating
revenue and expenses-page 26 $ 1,100,213 $ 1,386,597
118
CITY OF TIGARD, OREGON
STORM SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 1,796,757 $ 1,796,757 $ 2,178,222 $ 381,465
Interest earnings 7,819 7,819 3,353 (4,466)
Total revenues 1,804,576 1,804,576 2,181,575 376,999
EXPENDITURES:
Public works 1,315,373 1,315,373 1,192,562 122,811
Capital projects 304,000 304,000 20,783 283,217
Total expenditures 1,619,373 1,619,373 1,213,345 406,028
Change in fund balance
before other financing sources (uses) 185,203 185,203 968,230 783,027
Other financing(uses):
Transfers out (214,839) (286,363) (286,363) -
Contingency 270,000 198,476 - 198,476
Change in fund balance (299,636) (299,636) 681,867 981,503
FUND BALANCE BEGINNING OF YEAR 781,889 781,889 840,910 59,021
FUND BALANCE END OF YEAR $ 482,253 $ 482,253 $ 1,522,777 $ 1,040,524
119
CITY OF TIGARD, OREGON
WATER QUALITY/QUANTITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 4,250 $ 4,250 $ 76 $ (4,174)
Interest earnings 14,878 14,878 - (14,878)
Total revenues 19,128 19,128 76 (19,052)
FUND BALANCE BEGINNING OF YEAR 1,487,844 1,487,844 1,551,292 63,448
FUND BALANCE END OF YEAR $ 1,506,972 $ 1,506,972 $1,551,368 $ 44,396
120
CITY OF TIGARD, OREGON
STORM SEWER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
For the fiscal year ended June 30, 2011
Operating and
Non Operating Expenditures/
Revenues Expenses
Storm Sewer $ 2,181,575 $ 1,213,345
Water Quality/Quantity 76 -
Total,budgetary basis 2,181,651 1,213,345
Gain on asset disposal 309 -
Change in accrued compensated absences - (2,891)
Expenditures capitalized - (6,490)
Depreciation expense - 445,431
Operating and non-operating
revenue and expenses-page 41 $ 2,181,960 $ 1,649,395
121
CITY OF TIGARD, OREGON
WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Charges for services $ 8,067,083 $ 8,067,083 $ 9,065,428 $ 998,345
Licenses and permits 10,000 10,000 2,960 (7,040)
System development charges 42,500 42,500 86,676 44,176
Interest earnings 24,086 24,086 55,531 31,445
Miscellaneous 2,500 2,500 - (2,500)
Total revenues 8,146,169 8,146,169 9,210,595 1,064,426
EXPENDITURES:
Public works 6,334,338 6,569,344 5,065,732 1,503,612
Change in fund balance
before other financing sources(uses) 1,811,831 1,576,825 4,144,863 2,568,038
Other financing(uses):
Transfer in - 235,006 235,006 -
Transfers out (3,910,366) (4,018,366) (3,521,531) 496,835
Total other financing sources(uses) (3,910,366) (3,783,360) (3,286,525) 496,835
Contingency 70,487 - - -
Reserve for future expenditures 241,140 203,627 - 203,627
Change in fund balance (2,410,162) (2,410,162) 858,338 3,268,500
FUND BALANCE BEGINNING OF YEAR 2,410,162 2,410,162 2,783,752 373,590
FUND BALANCE END OF YEAR $ - $ - $ 3,642,090 $ 3,642,090
122
CITY OF TIGARD, OREGON
WATER SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
System development charges $ 78,947 $ 78,947 $ 339,068 $ 260,121
Interest earnings 230 230 1,852 1,622
Total revenues 79,177 79,177 340,920 261,743
Other financing(uses):
Operating transfer out (25,000) (25,000) (25,000) -
Change in fund balance 54,177 54,177 315,920 261,743
FUND BALANCE BEGINNING OF YEAR 76,749 76,749 414,388 337,639
FUND BALANCE END OF YEAR $ 130,926 $ 130,926 $ 730,308 $ 599,382
123
CITY OF TIGARD, OREGON
WATER CIP FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
System development charges $ 70,000 $ 70,000 $ 107,188 $ 37,188
Grant revenue 3,543,043 3,543,043 812,614 (2,730,429)
Interest earnings 12,902 12,902 17,363 4,461
Total revenues 3,625,945 3,625,945 937,165 (2,688,780)
EXPENDITURES:
Capital projects 7,143,043 9,562,003 7,523,029 2,038,974
Debt Service 225,000 225,000 89,645 135,355
Change in fund balance
before other financing sources(uses) (3,742,098) (6,161,058) (6,675,509) (514,451)
Other financing sources(uses):
Operating transfer in 3,261,652 3,261,652 3,174,817 (86,835)
Operating transfers out (1,141,024) (1,141,024) (956,243) 184,781
Debt proceeds 2,500,000 2,500,000 3,100,000 600,000
Total other financing sources(uses) 4,620,628 4,620,628 5,318,574 697,946
Reserve for future expenditures 3,168,706 749,746 - 749,746
Change in fund balance (2,290,176) (2,290,176) (1,356,935) 933,241
FUND BALANCE BEGINNING OF YEAR 2,290,176 2,290,176 2,559,832 269,656
FUND BALANCE END OF YEAR $ - $ - $ 1,202,897 $ 1,202,897
124
CITY OF TIGARD, OREGON
WATER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
For the fiscal year ended June 30, 2011
Operating and
Non-operating Expenditures /
Revenues Expenses
Water $ 9,210,595 $ 5,065,732
Water SDC 340,920 -
Water CIP 937,165 7,612,674
Total,budgetary basis 10,488,680 12,678,406
Deferred revenue 3,197,694
Gain on sale of assets 7
Change in accrued compensated absences - 24,808
Expenditures capitalized - (7,447,534)
Depreciation expense - 1,709,395
Net OPEB Obligation - 31,378
Operating and non-operating
revenue and expenses-page 26 $ 13,686,381 $ 6,996,453
125
CITY OF TIGARD, OREGON
ENTERPRISE FUNDS
RECONCILIATION OF BUDGETARY FUND BALANCE TO
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET ASSETS
For the fiscal year ended June 30,2011
Total Total
Sanitary Storm Total
Sewer Sewer Water
Sanitary Sewer Fund $ 8,267,131 $ - $ -
Storm Sewer Fund - 1,522,777 -
Water Quality/Quantity Fund - 1,551,368 -
Water Fund - - 3,642,090
Water SDC Fund - - 730,308
Water CIP Fund - - 1,202,897
Fund balance-budget basis 8,267,131 3,074,145 5,575,295
Adjustments from budgetary basis to
generally accepted accounting principles basis:
Capital assets,net 16,303,646 11,031,867 51,585,318
Deferred revenue 20,147 - 3,858,426
Accrued vacation payable (16,059) (16,385) (64,017)
Long-term debt - - (5,953,868)
OPEB obligation (13,728) (18,304) (31,378)
Total Net Assets-
generally accepted accounting- -
principles basis-pages 25 and 26 $ 24,561,137 $ 14,071,323 $ 54,969,776
126
Internal Service Funds
Combining statements for internal service funds are reported here. The combined totals are reported
alongside the enterprise funds in the basic financial statements.
Schedules of revenues, expenses, and changes in fund net assets — budget and actual are also presented
here for each internal service fund as required by Oregon regulations.
Central Services Fund—This fund accounts for the central administrative functions within the City
Fleet/Property Management Fund — This fund accounts for all activity related to the Fleet
Maintenance and Property Management divisions in the City
Insurance Fund—Records refunds of prior years workers'compensation premiums and other insurance
related revenues.
127
CITY OF TIGARD, OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
June 30, 2011
Central Fleet/Property
Services Management Insurance
Fund Fund Fund Total
ASSETS
Current assets:
Cash and investments $ 673,142 $ 159,901 $ 746,457 $ 1,579,500
Accounts Receivable 24,957 2,677 4,835 32,469
Prepaid Expense 19,947 - - 19,947
Inventory - 12,608 - 12,608
Total assets 718,046 175,186 751,292 1,644,524
LIABILITIES
Current liabilities:
Accounts payable and accrued
liabilities 299,822 73,906 - 373,728
Accrued compensated absences 254,550 23,794 - 278,344
Net OPEB obligation 117,537 - - 117,537
Total liabilities 671,909 97,700 - 769,609
NET ASSETS
Net assets,unrestricted $ 46,137 $ 77,486 $ 751,292 $ 874,915
129
CITY OF TIGARD, OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
For the fiscal year ended June 30, 2011
Central Fleet/Property
Services Management Insurance
Fund Fund Fund Total
OPERATING REVENUES:
Charges for services $ 5,645,550 $ 1,493,868 $ - $ 7,139,418
Miscellaneous 54,013 4,122 32,326 90,461
Total operating revenues 5,699,563 1,497,990 32,326 7,229,879
OPERATING EXPENSES:
Salaries and wages 4,014,113 522,091 - 4,536,204
Contracted services 703,517 370,011 - 1,073,528
General,administrative and other 976,132 623,455 13,890 1,613,477
Total operating expenses 5,693,762 1,515,557 13,890 7,223,209
Operating income(loss) 5,801 (17,567) 18,436 6,670
NONOPERATING REVENUE:
Operating transfers out - - (200,000) (200,000)
Interest revenue 1,322 784 3,703 5,809
Net income(loss) 7,123 (16,783) (177,861) (187,521)
NET ASSETS-beginning of year 39,014 94,269 929,153 1,062,436
NET ASSETS-end of year $ 46,137 $ 77,486 $ 751,292 $ 874,915
130
CITY OF TIGARD,OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the fiscal year ended June 30,2011
Central Fleet/Property
Services Management Insurance
Fund Fund Fund Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 5,638,423 $ 1,497,256 $ - $ 7,135,679
Payments to suppliers (1,651,265) (1,001,394) (13,890) (2,666,549)
Payments to employees (3,875,897) (521,187) - (4,397,084)
Other receipts 54,012 - 28,658 82,670
Net cash provided(used)by operating activities 165,273 (25,325) 14,768 154,716
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to other funds - (200,000) (200,000)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings collected 1,322 784 3,703 5,809
Net increase in cash and cash equivalents 166,595 (24,541) (181,529) (39,475)
Cash and investments--beginning of the year 506,547 184,442 927,986 1,618,975
Cash and investments--end of the year $ 673,142 $ 159,901 $ 746,457 $ 1,579,500
RECONCILIATION OF OPERATING INCOME(LOSS)TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income(loss) $ 5,801 $ (17,567) $ 18,436 $ 6,670
Adjustments to reconcile operating income(loss)to net cash
provided(used)by operating activities:
Change in assets and liabilities:
Receivables (7,125) (734) (3,668) (11,527)
Prepaids 30,523 - - 30,523
Inventories - 65 - 65
Accounts payable (2,142) (7,993) - (10,135)
Accrued compensated absences 20,679 904 - 21,583
Net OPEB obligation 117,537
Net cash provided(used)by operating activities $ 165,273 $ (25,325) $ 14,768 $ 37,179
131
CITY OF TIGARD, OREGON
CENTRAL SERVICES FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Interest earnings $ 584 $ 584 $ 1,322 $ 738
Miscellaneous 20,000 20,000 54,013 34,013
Total revenues 20,584 20,584 55,335 34,751
EXPENDITURES:
Policy and administration 6,031,190 6,239,887 5,576,225 663,662
Change in fund balance
before other financing sources(uses) (6,010,606) (6,219,303) (5,520,890) 698,413
Other financing sources:
Interdepartmental charges 6,517,963 6,620,436 5,645,550 (974,886)
Contingency 559,336 458,639 - 458,639
Reserve for future expenditures 6,397 870 - 870
Change in fund balance (58,376) (58,376) 124,660 183,036
FUND BALANCE BEGINNING OF YEAR 58,376 58,376 39,014 (19,362)
FUND BALANCE END OF YEAR $ - $ - $ 163,674 $ 163,674
Reconciliation of budgetary fund balance
to GAAP basis net assets:
Net OPEB obligation (117,537)
Total net assets,GAAP basis pages 25 and 26 $ 46,137
132
CITY OF TIGARD, OREGON
FLEET/PROPERTY MANAGEMENT FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30,2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Interest earnings $ - $ - $ 784 $ 784
Miscellaneous - - 4,122 4,122
Total revenues - - 4,906 4,906
EXPENDITURES:
Public works 1,602,691 1,602,691 1,515,557 87,134
Change in fund balance
before other financing sources(uses) (1,602,691) (1,602,691) (1,510,651) 92,040
Other financing sources(uses):
Interdepartmental charges 1,713,117 1,713,117 1,493,868 (219,249)
Contingency 222,000 222,000 - 222,000
Reserve for future expenditures 63,177 63,177 - 63,177
Change in fund balance (174,751) (174,751) (16,783) 157,968
FUND BALANCE BEGINNING OF YEAR 174,751 174,751 94,269 (80,482)
FUND BALANCE END OF YEAR $ - $ - $ 77,486 $ 77,486
133
CITY OF TIGARD, OREGON
INSURANCE FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
For the fiscal year ended June 30, 2011
Variance
Budgeted Amounts Actual Over
Original Final Amounts (Under)
REVENUES:
Interest earnings $ 9,419 $ 9,419 $ 3,703 $ (5,716)
Recovered expenditures 30,000 30,000 32,326 2,326
Total revenues 39,419 39,419 36,029 (3,390)
EXPENDITURES:
Policy and administration 15,000 15,000 13,890 1,110
Change in fund balance
before other financing(uses) 24,419 24,419 22,139 (2,280)
Other financing(uses):
Operating transfer out (200,000) (200,000) (200,000) -
Reserve for future expenditures 766,363 766,363 - 766,363
Change in fund balance (941,944) (941,944) (177,861) 764,083
FUND BALANCE BEGINNING OF YEAR 941,944 941,944 929,153 (12,791)
FUND BALANCE END OF YEAR $ - $ - $ 751,292 $ 751,292
134
Other Supplementary Schedules
Schedules included in this section are:
• Property Tax Transactions and Outstanding Balances
• Bond and Bond Interest Transactions
• Future Debt Service Requirements of Long Term Notes Payable
• Future Debt Service Requirements of Bancroft Improvement Bonds
• Future Debt Service Requirements of General Obligation Bonds
135
CITY OF TIGARD,OREGON
SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES
For the fiscal year ended June 30,2011
Property Add Property
Taxes Levy as Taxes
Receivable Extended Deduct Add Receivable
June 30, by Discounts (Deduct) Add Deduct June 30,
2010 Assessor Allowed Adjustments Interest Collections 2011
2010-2011 $ - $ 13,656,156 $ (347,715) $ (62,140) $ 4,750 $ (12,928,269) $ 322,782
2009-2010 372,769 - 76 (7,280) 15,879 (246,154) 135,290
2008-2009 140,015 - 88 (6,467) 12,915 (79,907) 66,644
2007-2008 51,928 - 15 (2,185) 9,773 (41,776) 17,755
2006-2007 13,122 - - (555) 3,003 (10,781) 4,789
2005-2006 2,959 - - (1,248) 404 - 2,115
2004-2005 and prior 7,595 - 1 (1,230) 903 (919) 6,350
$ 588,388 $ 13,656,156 $ (347,535) $ (81,105) $ 47,627 $ (13,307,806) $ 555,725
Property Taxes
Cash Receivable
Distributed as follows: Collections June 30,2011
General Fund:
Current $ 11,610,188 $ 297,912
Prior years'levies 303,971 215,473
Total General Fund 11,914,159 513,385
Debt Service Funds:
Current 1,021,391 24,870
Prior years'levies 19,175 17,470
Total Debt Service Funds 1,040,566 42,340
Total $ 12,954,725 $ 555,725
NOTE: Taxes revenue on the Governmental Funds Statement
of Revenues,Expenditures,and Changes in
Fund Balance(page 23),is reported on the modified accrual basis.
137
CITY OF TIGARD, OREGON
SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS
For the fiscal year ended June 30, 2011
Bond Transactions Interest Transactions
Outstanding Matured/ Outstanding
Bancroft Bonds Original Issue June 30,2010 Additions Called Paid June 30,2011 Matured Paid
Issued June 27,2002 $ 1,307,969 $ 687,848 $ - $ 54,200 $ (54,200) $ 633,648 $ 49,612 $ (49,612)
Issued December 3,2003 1,947,678 515,883 - 125,000 (125,000) 390,883 17,682 (17,682) w
M
$ 1,203,731 $ - $ 179,200 $ (179,200) $ 1,024,531 $ 67,294 $ (67,294)
General Obligation Bonds
Issued February 3,2011 $ 13,000,000 $ 9,458,100 $ 8,655,000 $ (8,886,210) $ (571,890) $ 8,655,000 $ 404,493 $ (404,493)
Issued June 21,2010 $ 7,250,000 $ 7,250,000 $ - $ - $ (605,000) $ 6,645,000 $ 297,854 $ (297,854)
Issued February 3,2011 $ 17,000,000 $ - $ 17,000,000 $ - $ - $ 17,000,000 $ - $ -
$ 16,708,100 $ 25,655,000 $ (8,886,210) $ (1,176,890) $ 32,300,000 $ 702,347 $ (702,347)
CITY OF TIGARD, OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF LONG-TERM NOTES PAYABLE
June 30, 2011
Issued-January 23,2002
3.00%to 4.35%
Original Issue-$2,290,248
Total
Payment Coupon Debt
Date Principal Interest Rate Service
January 1,2012 270,925 11,785 4.35% 282,710
Totals $ 270,925 $ 11,785 $ 282,710
139
CITY OF TIGARD, OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF BANCROFT IMPROVEMENT BONDS
June 30, 2011
Issued Issued
June 27,2002 December 3,2003
Year of Total Requirements 7.25% 3.90%
Maturity Principal Interest Principal Interest Principal Interest
2011-2012 58,200 60,417 58,200 45,173 - 15,244
2012-2013 62,500 56,121 62,500 40,877 - 15,244
2013-2014 457,983 42,063 67,100 36,262 390,883 5,801
2014-2015 72,100 31,311 72,100 31,311 - -
2015-2016 77,400 25,989 77,400 25,989 - -
2017-2019 296,347 43,134 296,347 43,134 - -
Totals $ 1,024,530 $ 259,036 $ 633,647 $ 222,746 $ 390,883 $ 36,290
140
CITY OF TIGARD, OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF GENERAL OBLIGATION BONDS
June 30, 2011
Fiscal Issued:February 3,2011 Issued:June 21,2010 Issued:February 3,2011
Year of Total Debt 3.00%to 4.00% 4.35% 3.00%to 4.75%
Maturity Requirement Principal Interest Principal Interest Principal Interest
2010-2011 605,000 605,000 297,854 - -
2011-2012 1,565,000 510,000 391,414 660,000 289,058 395,000 899,537
2012-2013 1,930,000 625,000 275,875 680,000 260,348 625,000 665,626
v
2013-2014 1,985,000 645,000 256,825 695,000 230,768 645,000 646,876
2014-2015 2,045,000 665,000 237,175 715,000 200,535 665,000 627,526
2015-2016 2,105,000 685,000 216,925 735,000 169,432 685,000 607,576
2017-2021 10,720,000 3,790,000 722,525 3,160,000 348,653 3,770,000 2,694,080
2022-2026 6,305,000 1,735,000 70,100 - - 4,570,000 1,899,254
2027-2031 5,645,000 - - - - 5,645,000 820,926
$ 32,905,000 $ 8,655,000 $ 2,170,839 $ 7,250,000 $ 1,796,647 $ 17,000,000 z$ 8,861,401
STATISTICAL SECTION
This part of the City of Tigard's comprehensive annual financial report presents detailed information as
a context for understanding what the information in the financial statements, note disclosures, required
supplementary information, and supplementary information says about the city's overall financial
health.
Contents Page
Financial Trends 146-159
These schedules contain trend information to help the reader understand how financial
performance has changed over time.
Revenue Capacity 160-164
These schedules contain information to help the reader assess the city's most significant
local revenue source,property taxes.
Debt Capacity 165-169
These schedules present information to help the reader assess the affordability of the city's
current levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information 170-172
These schedules offer demographic and economic indicators to help the reader understand
the environment within which the city's financial activities take place.
Operating Information 173-175
These schedules contain service and infrastructure data to help the reader understand how
the information in the city's financial report relates to the services the city provides and the activities it
performs.
Sources: Unless otherwise noted,the information in these schedules is derived from the comprehensive annual financial
reports for the relevant year. The City implemented GASB Statement 34 in fiscal year 2003,implemented GASB Statement
44 in fiscal year 2006 and implemented GASB 54 in fiscal year 2011.
143
CITY OF TIGARD,OREGON
NET ASSETS BY COMPONENT
for the last nine fiscal years
(accrual basis of accounting)
Fiscal Year
2003 2004 2005
Governmental activities
Invested in capital assets,net of related debt $ 165,584,303 $ 167,289,278 $ 169,543,524
Restricted 2,529,038 1,782,382 1,367,179
Unrestricted 21,057,629 21,197,594 21,178,146
Total governmental activities net assets 189,170,970 190,269,254 192,088,849
Business-type activities
Invested in capital assets,net of related debt 48,011,698 51,186,594 51,861,963
Restricted 5,816,599 5,548,698 3,761,976
Unrestricted 18,755,869 19,877,044 20,374,983
Total business-type activities net assets 72,584,166 76,612,336 75,998,922
Primary government
Invested in capital assets,net of related debt 213,596,001 218,475,872 221,405,487
Restricted 8,345,637 7,331,080 5,129,155
Unrestricted 39,813,498 41,074,638 41,553,129
Total primary government net assets $ 261,755,136 $ 266,881,590 $ 268,087,771
*Fiscal year 2002-03 was the first year that the new reporting requirements of GASB 34 were implemented
at the City of Tigard.
Source: Comprehensive Annual Financial Report of the City.
146
Fiscal Year
2006 2007 2008 2009 2010 2011
$ 168,577,473 $ 173,401,138 $ 177,656,465 $ 179,584,222 $ 165,775,262 $ 181,343,650
2,812,994 1,490,484 1,992,734 1,540,638 6,872,512 5,880,755
21,685,865 25,234,231 23,053,474 18,091,356 24,927,888 11,880,945
193,076,332 200,125,853 202,702,673 199,216,216 197,575,662 199,105,350
58,058,208 64,000,824 68,398,209 68,738,562 70,942,446 78,920,831
3,761,976 3,783,324 3,783,324 3,783,324 - 6,005,540
20,480,106 18,463,817 15,826,866 16,184,644 17,371,241 8,675,865
82,300,290 86,247,965 88,008,399 88,706,530 88,313,687 93,602,236
226,635,681 237,401,962 246,054,674 248,322,784 236,717,708 260,264,481
6,574,970 5,273,808 5,776,058 5,323,962 6,872,512 11,886,295
42,165,971 43,698,048 38,880,340 34,275,999 42,299,129 20,556,810
$ 275,376,622 $ 286,373,818 $ 290,711,072 $ 287,922,745 $ 285,889,349 $ 292,707,586
147
CITY OF TIGARD,OREGON
CHANGES IN NET ASSETS
for the last nine fiscal years
(accrual basis of accounting)
Fiscal Year
2003 2004 2005
Expenses
Governmental activities
Community services $ 8,058,670 $ 8,744,613 $ 10,253,764
Public works 1,890,644 2,735,212 2,172,874
Community development 3,311,058 3,791,317 4,224,696
Policy and administration 3,548,649 6,175,917 6,166,577
Interest on long-term debt 602,291 947,848 716,899
Total governmental activities expenses 17,411,312 22,394,907 23,534,810
Business-type activities
Sewer 901,779 945,102 1,297,582
Storm Water 1,056,795 1,090,550 1,374,459
Water 5,325,045 5,555,590 8,200,928
Total business-type activities program expenses 7,283,619 7,591,242 10,872,969
Total primary government expenses $ 24,694,931 $ 29,986,149 $ 34,407,779
Program Revenues
Governmental activities
Charges for services:
Community services - 114,454 119,513
Public works - 603,352 1,741,747
Community development 73,332 2,928,733 3,335,125
Policy and administration - 822,177 908,053
Operating grants and contributions 133,253 252,805 285,888
Capital grants and contributions - - -
Total governmental activities program revenues 206,585 4,721,521 6,390,326
Business-type activities
Charges for services:
Sewer 1,923,596 1,809,032 1,601,113
Storm Water 1,246,809 1,156,863 1,156,220
Water 6,877,765 7,202,910 7,762,153
Capital grants and contributions - - -
Total business-type activities program revenues 10,048,170 10,168,805 10,519,486
Total primary government program revenues $ 10,254,755 $ 14,890,326 $ 16,909,812
*Fiscal year 2002-03 was the first year that the new reporting requirements of GASB 34 were implemented
at the City of Tigard.
Source: Comprehensive Annual Financial Report of the City.
148
Fiscal Year
2006 2007 2008 2009 2010 2011
$ 11,241,521 $ 11,656,248 $ 13,678,913 $ 18,365,997 $ 19,832,642 $ 19,987,961
3,078,772 2,383,009 2,373,710 2,468,981 8,563,893 10,911,875
4,669,452 4,714,636 5,186,834 7,238,839 4,846,494 4,159,289
7,447,828 4,398,213 3,992,478 5,997,644 1,511,956 1,825,398
935,359 153,319 354,664 526,825 548,987 1,214,420
27,372,932 23,305,425 25,586,599 34,598,286 35,303,972 38,098,943
1,454,150 1,461,458 1,963,223 1,5 97,413 1,379,105 1,3 86,597
1,391,158 1,533,391 1,585,105 1,920,640 2,061,622 1,667,699
7,291,602 7,452,480 6,792,833 7,624,478 7,880,598 6,996,463
10,136,910 10,447,329 10,341,161 11,142,531 11,321,325 10,050,759
$ 37,509,842 $ 33,752,754 $ 35,927,760 $ 45,740,817 $ 46,625,297 $ 48,149,702
146,798 151,448 168,232 180,425 232,384 1,008,691
2,165,451 1,866,123 1,377,855 952,652 1,751,341 2,096,677
4,463,283 3,982,018 2,331,834 1,249,995 1,490,701 1,747,617
1,015,976 1,146,301 1,524,653 1,463,736 108,940
133,509 1,537,714 739,171 153,447 199,506 6,516,004
2,596,223 3,103,521 199,112 305,398 230,500
7,925,017 11,279,827 9,245,266 4,199,367 4,088,270 11,599,489
1,555,358 1,641,740 2,322,462 1,348,750 1,117,987 1,021,840
1,176,816 1,190,521 1,593,097 1,484,627 1,872,545 2,178,298
6,953,809 6,336,186 7,002,872 7,417,827 7,834,978 9,065,554
6,077,864 3,886,120 136,331 834,660 1,022,045 4,583,764
15,763,847 13,054,567 11,054,762 11,085,864 11,847,555 16,849,456
$ 23,688,864 $ 24,334,394 $ 20,300,028 15,285,231 15,935,825 28,448,945
149
CITY OF TIGARD, OREGON
CHANGES IN NET ASSETS (CONTINUED)
for the last nine fiscal years
(accrual basis of accounting)
Fiscal Year
2003 2004 2005
Net(Expense) Revenue
Governmental activities $ (17,204,727) $ (17,613,386) $ (17,144,484)
Business-type activities 2,764,553 2,577,563 716,899
Total primary government net expenses $ (14,440,174) $ (15,035,823) $ (16,427,585)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property taxes $ 10,472,108 $ 9,763,281 $ 10,273,332
Franchise taxes 2,567,881 2,431,324 2,670,050
Restricted intergovernmental revenues (excluding grants) - - 3,447,895
Unrestricted intergovernmental revenues 8,778,951 5,204,135 1,430,206
Interest earnings 912,288 890,785 859,057
Miscellaneous (90,350) 422,145 283,539
Transfers between Governmental and Business-type - - -
Total governmental activities 22,640,878 18,711,670 18,964,079
Business-type activities:
Interest earnings 593,484 426,853 604,977
Miscellaneous 248,885 23,754 135,092
Transfers between Governmental and Business-type - - -
Total business-type activities 842,369 450,607 740,069
Total primary government $ 23,483,247 $ 19,162,277 $ 19,704,148
Change in Net Assets
Governmental activities $ 5,436,151 $ 1,098,284 $ 1,819,595
Business-type activities 3,606,922 3,028,170 386,586
Total primary government $ 9,043,073 $ 4,126,454 $ 2,206,181
*Fiscal year 2002-03 was the first year that the new reporting requirements of GASB 34 were implemented
at the City of Tigard.
Source: Comprehensive Annual Financial Report of the City.
150
Fiscal Year
2006 2007 2008 2009 2010 2011
$ (19,447,915) $ (12,025,598) $ (16,341,333) $ (30,398,918) $ (31,215,702) $ (26,499,454)
5,626,937 2,607,238 713,601 (56,667) 526,230 6,798,697
$ (13,820,978) $ (9,418,360) $ (15,627,731) $ (30,455,585) $ (30,689,471) $ (19,700,757)
$ 10,804,524 $ 11,552,817 $ 9,133,664 $ 12,526,541 $ 16,070,846 $ 13,604,285
3,042,187 3,835,007 4,551,169 3,887,078 4,548,520 4,375,420
3,288,530 - - - - -
1,863,706 1,836,291 2,912,647 8,925,520 6,993,245 2,838,802
922,508 1,548,735 1,503,619 947,247 308,853 296,964
513,943 302,269 817,054 626,075 376,884 5,284,426
1,276,800 1,629,245
20,435,398 19,075,119 18,918,153 26,912,461 29,575,148 28,029,142
580,004 1,050,352 1,039,593 649,231 153,300 115,828
94,427 147,310 150,015 105,567 204,427 3,269
(1,276,800) (1,629,245)
674,431 1,197,662 1,189,608 754,798 (919,073) (1,510,148)
$ 21,109,829 $ 20,272,781 $ 20,107,761 $ 27,667,259 $ 28,656,075 $ 26,518,994
$ 987,483 $ 7,049,521 $ 2,576,820 $ (3,486,457) $ (1,640,554) $ 1,529,688
6,301,368 3,804,900 1,903,209 698,131 (392,843) 5,288,549
$ 7,288,851 $ 10,854,421 $ 4,480,029 $ (2,788,325) $ (2,033,396) $ 6,818,237
151
CITY OF TIGARD,OREGON
FUND BALANCES OF GOVERNMENTAL FUNDS
for the last nine fiscal years
(modified accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006 2007 2008 2009 2010 2011
General Fund
Reserved $ 58,523 $ 69,069 $ 54,632 $ 20,291 $ 209,378 $ - $ 419,488 $ 273,726 $ -
Unreserved 7,878,589 8,343,762 8,131,112 8,368,793 9,716,643 10,794,057 7,338,828 7,067,526 -
Nonspendable - - - - - - - - 305,164
Unassigned - - - - - - - - 7,247,383
Total general fund $ 7,937,112 $ 8,412,831 $ 8,185,744 $ 8,389,084 $ 9,926,021 $ 10,794,057 $ 7,758,316 $ 7,341,252 $ 7,552,547
All other governmental funds
Reserved $ 15,612,154 $ 7,198,519 $ 4,821,174 $ 2,719,998 $ - $ - $ - $ - $ -
Unreserved,reported in:
Special revenue funds 8,355,147 7,282,391 9,253,467 10,208,277 13,445,092 12,481,406 11,097,739 8,094,802 -
Debt service funds - - - 1,811,861 2,027,633 682,960 167,169 1,927,247 -
Capital projects funds 9,050 8,971 - 1,589,018 1,087,826 1,309,774 1,373,469 4,945,265 -
Nonspendable - - - - - - - - - N
Restricted - - - - - - - 16,855,664 to
Committed - - - - - - - - 2,263,088
Assigned - - - - - - - - 417,479
Unassigned - - - - - - - - (382,937)
Total all other governmental funds $ 23,976,351 $ 14,489,881 $ 14,074,641 $ 16,329,154 $ 16,560,551 $ 14,474,140 $ 12,638,377 $ 14,967,314 $ 19,153,294
*This schedule was modified with the implementation of GASB 54,effective fiscal year 2011,which affected the
categories used to report fund balances.
**Fiscal year 2002-03 was the first year that the new reporting requirements of GASB 34 were implemented
at the City of Tigard.
Source:Comprehensive Annual Financial Report of the City.
CITY OF TIGARD,OREGON
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
for the last nine fiscal years
(modified accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006 2007
REVENUES
Taxes $ 10,453,992 $ 9,775,325 $ 10,334,295 $ 10,817,886 $ 11,553,044
Franchise fees 2,567,881 2,431,324 2,670,050 3,042,187 3,835,007
Special assessments 542,816 568,971 373,141 1,421,765 163,379
Licenses and permits 3,505,499 3,668,335 4,442,222 4,852,719 3,011,348
Intergovernmental revenues 4,837,982 5,456,940 5,134,991 5,285,744 5,970,228
Charges for service 1,539,676 1,819,907 2,354,372 2,689,485 3,989,491
Fines and forfeitures 480,963 613,785 646,406 702,469 850,335
Interest earnings 902,312 880,070 836,359 903,637 1,507,065
Miscellaneous 424,525 420,390 280,411 502,951 283,712
Total revenues 25,255,646 25,635,047 27,072,247 30,218,843 31,163,609
EXPENDITURES
Current operating:
Community services 8,692,327 9,014,200 10,750,344 11,377,118 11,918,362
Public works 2,236,753 2,104,617 2,172,875 2,273,569 2,383,009
Community development 3,628,238 3,891,491 4,316,517 4,709,433 4,772,780
Policy and administration 3,884,883 4,051,476 4,334,147 4,564,400 4,717,967
Citywide support - - - - 23,000
Debt service:
Principal 2,344,496 1,300,979 1,285,275 1,526,286 166,571
Interest 302,674 951,072 748,417 697,305 630,916
Refunded bonds - - - - -
Refunding bond issuance cost - - - - -
Capital outlay 6,613,827 13,210,578 4,106,999 2,352,123 3,543,422
Total expenditures 27,703,198 34,524,413 27,714,574 27,500,234 28,156,027
Excess(deficiency)of revenues
over(under)expenditures (2,447,552) (8,889,366) (642,327) 2,718,609 3,007,582
OTHER FINANCING SOURCES(USES)
Proceeds from bond/long-term note 14,509,175 1,947,678 - - -
Operating transfers in 3,747,649 2,581,668 2,893,435 4,046,802 2,667,149
Operating transfers out (3,747,649) (2,581,668) (2,893,435) (4,046,802) (2,667,149)
Total other financing sources(uses) 14,509,175 1,947,678 - - -
Net change in fund balances $ 12,061,623 $ (6,941,688) $ (642,327) $ 2,718,609 $ 3,007,582
Debt service as a percentage of non-capital expenditures 14.35% 11.81% 9.43% 9.70% 3.35%
*Fiscal year 2002-03 was the first year that the new reporting requirements of GASB 34 were implemented
at the City of Tigard.
Source: Comprehensive Annual Financial Report of the City.
154
2008 2009 2010 2011
$ 12,137,977 $ 12,405,880 $ 16,078,788 $ 16,753,457
4,551,169 3,887,078 4,548,520 4,375,420
120,678 87,208 284,202 40,164
1,871,841 1,282,438 1,229,880 2,590,516
7,807,667 7,560,542 6,358,393 9,834,646
3,469,358 2,536,590 3,083,087 3,127,307
847,069 804,128 915,524 907,216
1,475,808 930,382 300,126 287,284
747,532 513,392 249,180 47,489
33,029,099 30,007,640 33,047,700 37,963,499
13,801,110 18,214,907 19,418,498 19,182,018
2,757,289 3,463,390 5,129,767 6,059,692
5,191,797 7,184,355 4,674,008 3,975,257
397,510 907,661 787,209 711,743
796,995 - -
922,907 794,853 875,513 2,590,456
454,403 530,403 557,061 67,294
8,836,046
81,236
6,319,092 3,940,781 7,373,043 19,247,942
29,844,108 35,833,344 38,815,099 60,751,684
3,184,991 (5,825,705) (5,767,399) (22,788,185)
7,250,000 26,214,495
4,896,127 3,342,328 4,965,010 16,977,142
(9,299,491) (2,357,267) (3,688,210) (16,006,177)
(4,403,364) 985,061 8,526,800 27,185,460
$ (1,218,373) $ (4,840,644) S 2,759,401 $ 4,397,275
6.22% 4.34% 4.71% 4.57%
155
CITY OF TIGARD,OREGON
GOVERNMENTAL REVENUES
For the last nine fiscal years*
Program Revenues General Revenues
Gain(Loss)
Fiscal Charges Operating Capital on Disposition
Year Ended for Grants and Grants and Intergovernmental Interest Donated of Capital
June 30 Services Contributions Contributions Taxes Franchise Taxes Revenues Earnings Assets Assets Miscellaneous Total
2003 $ 14,107,966 $ 133,253 $ 87,760 $ 10,472,108 $ 2,567,881 $ 4,704,729 $ 1,505,772 $ (27,850) $ (491,023) $ 677,408 $ 33,738,004
2004 16,561,227 252,805 6,077,864 9,763,281 2,431,324 5,204,135 1,317,638 - - 445,899 42,054,173
2005 16,623,924 285,888 - 10,273,332 2,670,050 4,878,101 1,464,034 - - 418,631 36,613,960
2006 17,477,491 133,509 6,077,864 10,804,524 3,042,187 5,152,236 1,502,512 - - 608,370 44,798,693
2007 7,145,890 1,537,714 2,596,223 11,552,817 3,835,007 1,836,291 2,599,087 - - 449,579 31,552,608
2008 5,402,574 739,171 3,103,521 12,237,185 4,551,169 2,912,647 1,503,619 - - (2,286,467) 28,163,419
2009 3,846,808 153,447 199,112 12,526,541 3,887,078 8,925,520 947,247 - - 626,075 31,111,828
2010 3,583,366 199,506 305,398 16,070,846 4,548,520 6,993,245 308,853 - - 376,884 32,386,618
2011 4,852,985 6,516,004 230,500 13,604,285 4,375,420 2,838,802 296,964 - - 5,284,426 37,999,386
*Fiscal year 2002-03 was the first year that the new requirements of GASB 34 were implemented at the City of Tigard.
tD
Source: Comprehensive Annual Financial Report of the City. N-
CITY OF TIGARD, OREGON
GOVERNMENTAL EXPENSES BY FUNCTION
For the last nine fiscal years*
Fiscal Interest on
Year Ended Community Community Policy and Long-Term Storm
June 30 Services Public Works Development Administration Debt Sewer Water Water Total
2003 $ 8,058,670 $ 1,890,644 $ 3,311,058 $ 3,548,649 $ 602,291 $ 901,779 $ 1,056,795 $ 5,325,045 $24,694,931
2004 8,744,613 2,735,212 3,791,317 6,175,917 947,848 945,102 1,080,550 5,555,590 29,976,149
2005 10,253,764 2,172,874 4,224,696 6,166,577 716,899 1,297,582 1,374,459 8,200,928 34,407,779
2006 11,241,521 3,078,772 4,669,452 7,447,828 935,359 1,454,150 1,391,158 7,291,602 37,509,842
2007 11,656,248 2,383,009 4,714,636 4,398,213 153,319 1,461,458 1,533,391 7,452,480 33,752,754
2008 13,678,913 2,373,710 2,373,710 3,992,478 526,825 1,963,223 1,585,105 6,792,833 33,286,797 N-
2009 18,365,997 2,468,981 7,238,839 5,997,644 526,825 1,597,413 1,920,640 7,624,478 45,740,817
2010 19,832,642 8,563,893 4,846,494 1,511,956 548,987 1,379,105 2,061,622 7,880,598 46,625,297
2011 19,987,961 10,911,875 4,159,289 1,825,398 1,214,420 1,386,597 1,667,699 6,996,463 48,149,702
*Fiscal year 2002-03 was the first year that the new requirements of GASB 34 were implemented at the City of Tigard.
Source: Comprehensive Annual Financial Report of the City.
CITY OF TIGARD,OREGON
GENERAL GOVERNMENTAL REVENUES BY SOURCES-
BUDGETARY BASIS
For the last ten fiscal years
Fiscal Licenses Inter- Charges
Year Ended Franchise and governmental For Fines and Miscellaneous
June 30 Taxes Fees Permits Revenues Services Forfeitures Revenues* Total
2002 9,018,360 2,674,388 3,147,960 4,778,451 443,418 415,760 1,359,360 21,837,697
2003 10,453,992 2,567,881 3,505,499 4,837,982 865,242 480,963 1,869,653 24,581,212
2004 9,775,325 2,431,324 3,668,335 5,456,940 1,148,271 613,785 1,858,371 24,952,351
2005 10,334,295 2,670,050 4,442,222 5,134,991 1,743,493 646,406 1,489,909 26,461,366
2006 10,817,886 3,042,187 4,852,719 5,285,744 2,689,485 702,469 2,828,353 30,218,843
2007 11,553,044 3,835,007 3,011,348 5,970,228 3,989,491 850,335 1,954,156 31,163,609
2008 12,137,977 4,551,169 1,871,841 847,069 1,475,808 847,069 2,344,018 24,074,951
2009 12,405,880 3,887,078 1,282,438 7,560,542 2,536,590 804,128 1,530,983 30,007,640
2010 16,078,788 4,548,520 1,229,880 6,358,393 3,083,087 915,524 833,508 33,047,700
2011 16,753,457 4,375,420 2,590,516 9,834,646 3,127,307 907,216 374,937 37,963,499
* Includes special assessments collections,interest earnings,and private donations.
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
158
CITY OF TIGARD, OREGON
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION -
BUDGETARY BASIS
For the last ten fiscal years
City-Wide
Support
Public Works Functions,
Fiscal and Capital
Year Ended Community Community Policy and Projects Debt
June 30 Services Development Administration and Other Service Total
2002 8,372,801 5,927,523 309,559 2,700,075 2,785,404 20,095,362
2003 8,692,327 5,864,991 279,753 2,971,446 2,647,170 20,455,687
2004 9,014,200 5,996,108 821,553 13,210,578 4,310,054 33,352,493
2005 10,750,344 6,489,391 1,017,764 4,106,999 2,033,691 24,398,189
2006 11,377,118 3,983,002 4,564,400 2,352,123 2,223,591 24,500,234
2007 11,918,362 7,155,789 4,717,967 3,566,422 2,297,487 29,656,027
2008 13,801,110 7,949,086 397,510 6,319,092 1,377,310 29,844,108
2009 18,214,907 10,647,745 1,704,656 3,940,781 1,325,256 35,833,344
2010 19,418,498 9,803,775 787,209 7,373,043 1,432,574 38,815,099
2011 19,182,018 10,034,949 711,743 19,247,942 11,575,032 60,751,684
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
159
CITY OF TIGARD,OREGON
MARKET VALUE AND ASSESSED VALUE OF TAXABLE PROPERTY
For the last ten fiscal years
Fiscal Assessed Value Assessed to
Year Public Total Estimated Value as a
Ended Real Personal Utility Total Direct Real Market Percentage
June 30 Property Property Property Assessed Value Tax Rate* Value(RMV) of RMV
2002 3,085,457,460 221,564,523 163,556,880 3,470,578,863 2.58 4,624,009,037 75.06%
2003 3,227,082,340 215,829,652 178,798,982 3,621,710,974 2.90 4,804,794,161 75.38%
2004 3,376,409,604 206,038,692 171,911,103 3,754,359,399 2.68 5,151,890,520 72.87%
2005 3,543,033,334 204,589,409 160,586,232 3,908,208,975 2.70 5,402,433,125 72.34%
2006 3,717,827,074 210,841,242 159,236,470 4,087,904,786 2.72 5,913,857,305 69.12%
2007 3,932,173,130 229,401,995 183,090,030 4,344,665,155 2.73 7,152,421,012 60.74%
2008 4,104,676,710 234,099,260 233,581,850 4,572,357,820 2.74 7,449,594,674 61.38%
2009 4,306,936,640 247,691,980 187,315,080 4,741,943,700 2.69 8,161,684,333 58.10%
2010 4,476,784,320 249,636,920 187,721,070 4,914,142,310 2.73 7,738,192,442 63.51%
2011 4,605,287,760 236,758,507 186,625,460 5,028,671,727 2.72 7,260,251,256 69.26%
Assessed Value by Type for the fiscal year ended 2011
Public Utility
Personal Property Property
5% 4%
li Real Property
91%
*per$1,000 of assessed value
Source: Washington County Assessment and Taxation
160
CITY OF TIGARD,OREGON
PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS
(Dollars per$1,000 of Assessed Value rounded to the nearest cent)
For the last ten fiscal years
City of Tigard Overlapping Rates
Tigard/ Washington
Fiscal Metzger Tualatin Beaverton Tualatin County Total Direct
Year Direct Rates Water School School Valley Rural Fire Portland Other &
Ended Perm Debt Urban District Washington District District Fire&Rescue District Community Taxing Overlapping
June 30 Rate Svc Renewal Total Combined County No.23-J No.48-J District No.2 College Agencies Rates
2002 $ 2.51 $ 0.07 - $ 2.58 $ 0.23 $ 2.96 $ 7.04 $ 6.37 $ 1.83 $ 1.31 $ 0.55 $ 0.69 $ 23.56
2003 2.51 0.39 - 2.90 0.23 2.91 7.90 6.56 1.82 1.12 0.49 0.63 24.56
2004 2.51 0.17 - 2.68 0.22 2.90 7.88 8.01 1.83 1.12 0.51 0.62 25.77
2005 2.51 0.19 - 2.70 0.13 2.87 7.79 6.60 1.83 1.12 0.51 0.62 24.16
2006 2.51 0.21 - 2.72 - 2.84 7.85 7.98 1.82 1.12 0.50 0.63 25.45
2007 2.51 0.22 - 2.73 - 2.45 7.67 6.29 1.82 1.12 0.49 0.60 23.17
2008 2.51 0.23 0.01 2.75 - 2.44 7.59 6.74 1.56 1.12 0.28 0.61 23.09
m
2009 2.51 0.18 0.01 2.70 - 2.39 7.52 6.56 1.54 1.12 0.50 0.70 23.04
2010 2.51 0.21 0.06 2.78 - 2.98 7.65 6.88 1.89 1.69 0.63 0.75 25.26
2011 2.51 0.21 0.07 2.79 2.98 7.37 6.78 1.88 1.69 0.64 0.81 24.95
Taxes levied may be composed of three types of levies:(1)a base operating levy,(2)a special operating levy approved by the voters in the district and(3)a debt service levy.Each
district with outstanding General Obligation bonded debt is required to levy taxes sufficient with other available funds,to meet principal and interest payments when due.
All operating levies were converted to a permanent rate by the passage of measure 50 in 1997. Permanent rates can not be changed. Prior to Measure 50,rates were dependent on
both the levy and assessed value.
Assessment and tax rolls are prepared and maintained by Washington County for all taxing districts with territory in the County.The County collects all taxes against property in the
County(except assessments for improvements charged to benefited property)and distributes taxes collected at least monthly.No charges are made to the taxing districts for these
services.
NOTE:-Not all taxing districts are charged on each parcel of property,actual rates on tax bills are a combination of the above depending upon the location of the parcel and the
school district and sewer and water district boundaries.Total overlapping tax rates for property in Tigard in 2011 ranged from$13.84/$1,000 to$16.40/$1,000.
Source:Washington County Department of Assessment and Taxation.
CITY OF TIGARD,OREGON
PRINCIPAL PROPERTY TAXPAYERS
For current and nine years ago
2011 2002
Percentage Percentage
Taxable of Total City Taxable of Total City
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Pacific Realty Associates 184,436,213 1 3.67% 132,897,390 1 3.83%
PPR Washington Square LLC 122,805,991 2 2.44% 52,227,210 4 1.50%
Lincoln Center LLC 81,818,120 3 1.63% 66,341,620 2 1.91%
Frontier Communications 58,229,000 4 1.16% 54,931,404 3 1.58%
Walton CWOR Park LLC 38,203,140 5 0.76% - -
Portland General Electric 32,348,717 6 0.64% 19,831,446 8 0.57%
Comcast Corporation 28,124,200 7 0.56% - -
Northwest Natural Gas 26,811,900 8 0.53% - -
Constance Robinson(Trust) 24,405,830 9 0.49% - -
Macy's Department Stores Inc 22,553,550 10 0.45% - -
Calwest Industrial Holdings,LLC 21,124,330 5 0.61%
AT&T Communications Inc 20,991,700 6 0.60%
Sprint Spectrum 20,043,600 7 0.58%
Archstone Communities Trust 17,997,260 9 0.52%
Portland Hotel Associates(Embassy Suites) 16,782,000 10 0.48%
$ 619,736,661 12.32% $423,167,960 12.18%
Source: Washington County Assessment&Taxation records.
162
CITY OF TIGARD,OREGON
PROPERTY TAX LEVIES AND COLLECTIONS
For the last ten fiscal years
Percent Percent
Total Tax Delinquent
Fiscal Total Percent Delinquent Total Collections Outstanding Taxes
Year Ended Tax Current Tax of Levy Tax Tax To Tax Delinquent To Tax
June 30 Levy Collections Collections Collections Collections Levy Taxes Levy
2002 $ 8,984,987 $ 8,498,029 94.58% $ 241,336 $ 8,739,365 97.27% $ 373,584 4.16%
2003 10,521,836 9,942,473 94.49% 252,892 10,195,365 96.90% 394,897 3.75%
2004 10,072,155 9,519,258 94.51% 249,358 9,768,616 96.99% 388,113 3.85%
2005 10,568,724 10,032,595 94.93% 293,729 10,326,324 97.71% 330,296 3.13%
2006 11,115,136 10,571,115 95.11% 252,844 10,823,959 97.38% 310,629 2.79%
2007 11,871,043 11,514,034 96.99% 210,217 11,724,251 98.76% 346,648 2.92%
2008 12,515,279 11,895,526 95.05% 121,148 12,016,674 96.02% 425,546 3.40%
2009 12,732,804 12,005,730 94.29% 142,047 12,147,777 95.41% 531,172 4.17%
2010 13,371,853 12,625,421 94.42% 329,304 12,954,725 96.88% 572,298 4.28%
2011 13,656,156 12,928,269 94.67% 379,537 13,307,806 97.45% 555,725 4.07%
Taxes are levied as of July 1 each year and are payable in three installments,without interest,on November 15,February 15,and May
15. Interest is charged at the rate of 1%per month on delinquent taxes. Tax liens are foreclosed after three year's delinquencies.
Taxpayers receive a discount of 3%for payment in full by November 15 and 2%for payment of two thirds of the total taxes due.
City Property Taxes Levied
16,000,000
14,000,000
12,000,000 ■ ■ ■
10,000,000 r. ■ ■ ■ ■ ■ ■ • ■
8,000,000 I ■ ■ ■ ■ ■ ■ ■ • ■
6,000,000 I ■ ■ ■ ■ ■ ■ ■ • ■
4,000,000 , ■ ■ ■ ■ ■ ■ ■ • ■
2,000,000 , ■ ■ ■ ■ ■ ■ ■ ■ ■
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
163
CITY OF TIGARD, OREGON
SPECIAL ASSESSMENT COLLECTIONS
For the last ten fiscal years
Fiscal Year Current Ratio of Total
Ended Assessments Assessments Collections Outstanding
June 30 Due(1) Collected(2) to Amount Due Assessments
2002 240,894 343,642 142.65% 4,621,388
2003 185,975 542,816 291.88% 4,150,052
2004 637,900 557,911 87.46% 3,471,643
2005 598,804 373,141 62.31% 3,074,031
2006 821,321 1,421,765 173.11% 1,639,875
2007 937,916 163,379 17.42% 1,461,838
2008 116,194 120,678 103.86% 1,266,871
2009 23,100 87,208 377.52% 1,178,745
2010 74,400 284,202 381.99% 968,943
2011 179,200 40,164 22.41% 854,377
(1) This amount is equal to the matured principal on Bancroft improvement bonds.
(2)Represents collections of current assessments for payment of Bancroft improvement bonds as well
as assessment collections on projects for which such bonds have not been issued.
Source: City assessment records
164
CITY OF TIGARD, OREGON
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR LONG-TERM
DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES
For the last ten fiscal years
Total Percent of Debt
Fiscal Year Total General Service to
Ended Debt Governmental Total General
June 30 Principal Interest Service Expenditures Expenditures
2002 4,195,966 325,036 4,521,002 20,095,362 22.50%
2003 2,351,917 254,833 2,606,750 20,455,687 12.74%
2004 3,358,982 929,462 4,288,444 34,524,413 12.42%
2005 1,285,275 748,817 2,034,092 27,714,574 7.34%
2006 1,526,286 697,305 2,223,591 27,500,234 8.09%
2007 1,666,571 630,916 2,297,487 29,656,027 7.75%
2008 922,907 454,403 1,377,310 29,844,108 4.62%
2009 794,853 530,403 1,325,256 35,833,344 3.70%
2010 875,513 557,061 1,432,574 38,815,099 3.69%
2011 2,590,456 67,294 2,657,750 60,751,684 4.37%
Source: Comprehensive Annual Financial Reports of the City.
(1)Includes bond anticipation notes principal and interest.
(2)Includes bond anticipation notes interest and certificates of participation principal and interest
165
CITY OF TIGARD,OREGON
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND
NET BONDED DEBT PER CAPITA
For the last ten fiscal years
Gross
General Ratio of
Obligation Less Debt Net Bonded
Fiscal Year Bonded Service Net Debt to Net Bonded
Ended Assessed Debt Out- Monies Bonded Assessed Debt Per
June 30 Population Value Standing** Available Debt Value Capita
2002 43,040 3,470,578,863 2,824,243 2,154,758 669,485 0.02% 15.55
2003 44,070 4,804,794,161 15,393,293 2,270,985 13,122,308 0.27% 297.76
2004 44,650 3,754,359,399 16,239,519 1,713,313 14,526,206 0.39% 325.33
2005 45,500 3,908,208,975 15,164,807 1,312,547 13,852,260 0.35% 304.45
2006 46,300 4,087,904,786 11,572,205 1,849,770 9,722,435 0.24% 209.99
2007 46,400 4,344,665,155 11,066,369 1,849,770 9,216,599 0.21% 198.63
2008 46,715 4,572,357,820 10,547,958 296,805 10,251,153 0.22% 219.44
2009 47,460 4,741,943,700 10,011,895 258,769 9,753,126 0.21% 205.50
2010 47,595 4,914,142,310 16,708,100 101,190 16,606,910 0.34% 348.92
2011 48,035 5,028,671,727 25,655,000 175,458 25,479,542 0.51% 530.44
**Excludes bond anticipation notes payable.
Sources: City budget documents,Comprehensive Annual Financial Reports of the City and Washington County Department of
Assessment and Taxation.
166
CITY OF TIGARD, OREGON
COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT
June 30, 2011
Percent Amount
Applicable Applicable
Net Debt Inside City Inside City
Jurisdiction Outstanding of Tigard of Tigard
Tigard/Tualatin School District#23-J $ 123,491,239 49.1700% $ 60,720,642
Tri-Met 9,800,000 3.8000% 372,400
Metro 158,020,000 3.7800% 5,973,156
Beaverton School District#48 539,485,000 3.9500% 21,309,658
Portland Community College 199,390,000 4.7000% 9,371,330
Washington County 20,030,000 11.2000% 2,243,360
Tualatin Valley Fire&Rescue District 49,865,000 12.7600% 6,362,774
Sub-Total of Overlapping Debt 1,100,081,239 106,353,320
City of Tigard 25,655,000 100.0000% 25,655,000
Total for Overlapping Debt $ 1,125,736,239 $ 132,008,320
Source: Oregon State Treasury Debt Management Division
167
ORE MARGIN 2
OREGON
CITY OF TIGARDOF LEGAL DEBT 2010
PUTATIpN 2009 $ 150,860,]52
2008 $ 147,424,269
COM t ten fiscal years ��
For the]as $ 142,258,311 32,300,000
2� '_____.1.--6:------7°8j°° —_
2 $137,170'35
2� $]30,339,955 10,011895 118,560,]52
2� $162,072,994 $122,637,144 1r16,1__±.9._44,26 1
2� 154,556,716 g 72A 836 .......:_L--(0-----71'95S... 132,246,416
$ 9 289,259 �— $126,622 777 � 21.41%
co
$138,720,271 $144'143,825 12 060,540 .�— 11.33°l°
A 428, �� $11 47■885 $]20
19,526 586 _____16.18.... 012,454 ° 7.04°l°
�� 128,068 15� 7.691°
Debtln"tt 239 $$ 14� 7.46°1°
applicable to limit $124,617, 7,57%
Total net debt aPP $138 7.44°f°
9.34°f°
Legal debt maxfnn ° 13.55%
le to the limit 0.18/°
Total net debt applicable
e of debt limit 2011 $5,028,611,727/2
percentage June 30,
asap Calculation at J
Leggy Debt Margin (0
True cash vale(2010-2011) axket value) 33,324,530
realm $ X4,530
Debt lit(3%of total property 1,0, 32 300,000
applicable to limb $$ 11�
Debt t su debt improvement bonds
(}toss bonded 21,4]°/0
Legal deb debt-Bancroft imp e indebtedness
Debt subject m Marion able fox fumt
amount avail
debt mat °" limit
Legal applicable to the
Total net debt app ebt lixtitt
as a percentage of d
Statutes
223.295 outstanding general obligation debt is limited to
Note:Pursuant to Oregon t n Revised
of teal market value d Taxation.
3 percent Assessment an
Source: Washington County Department of
CITY OF TIGARD,OREGON
RATIO OF DEBT BY TYPE
For the last ten fiscal years
Business-Type
Governmental Activities Activities
(1)
Fiscal Year General Long-Term Percentage (2)
Ended Obligation Bancroft Note Payable Notes Payable Total Primary of Personal Per
June 30 Population Bonded Debt Bonded Debt Debt Debt Government Income Capita
2002 43,040 2,824,243 2,579,243 2,290,248 - 7,693,734 0.74% 178.76
2003 44,070 15,393,293 2,393,293 2,091,727 - 19,878,313 1.91% 451.06
2004 44,650 16,239,519 3,703,071 1,892,200 - 21,834,790 2.09% 483.82
2005 45,500 15,164,807 3,104,267 1,681,637 - 19,950,711 N/A 446.82
2006 46,300 11,572,205 2,282,946 1,465,007 - 15,320,158 N/A 330.10
2007 46,400 11,066,369 1,345,030 1,242,187 - 13,653,586 N/A 294.26
2008 46,715 10,547,958 1,301,230 1,012,986 - 12,862,174 N/A 275.33
2009 47,460 10,011,895 1,278,130 777,296 2,853,868 14,921,189 N/A 314.40
2010 47,595 16,708,100 1,203,730 529,978 2,853,868 21,295,676 N/A 447.44
2011 48,035 32,597,213 1,024,530 270,925 5,953,868 39,846,536 N/A 829.53
(1)See page 154 for personal income data
(2)Per capita data is using Tigard's population
N/A=Not available
Sources: City budget documents,Comprehensive Annual Financial Reports of the City and Washington County
Department of Assessment and Taxation.
169
CITY OF TIGARD, OREGON
DEMOGRAPHICS STATISTICS
For the last ten fiscal years
(4)
Assessed Total (2)
Value Personal Unemployment
of Taxable (3) (4) Income Rate
Fiscal Year (1) Property School Per Capita (thousands Portland
Ended June 30 Population Per Capita Enrollment Income * of dollars) * Metro Area
2002 43,040 $ 80,636 11,785 $ 26,584 $ 1,144,177 7.50%
2003 44,070 82,181 11,686 26,145 1,152,206 8.80%
2004 44,650 83,190 11,831 25,734 1,161,384 6.80%
2005 45,500 87,530 11,653 N/A N/A 6.30%
2006 46,300 88,081 12,134 N/A N/A 6.30%
2007 46,400 93,635 12,100 N/A N/A 4.80%
2008 46,715 97,878 12,451 N/A N/A 5.30%
2009 47,460 99,915 12,685 N/A N/A 9.70%
2010 47,595 103,249 12,913 N/A N/A 8.40%
2011 48,035 104,688 12,688 N/A N/A 9.50%
Sources of Information:
(1)State of Oregon,Department of Administrative Services
(2)U.S.Bureau of Labor Statistics
(3)Tigard/Tualatin School District#23-J-City student totals not available
(4)Washington State University-Northwest Income Indicators Project
* Personal income data for Tigard was not available so data was calculated using the ratio of Tigard's population
to Washington County's total population. The ratio was then applied to total personal income for Washington County
to arrive at an estimated personal income for the City of Tigard.
Population and School Enrollment Trends
55,000
50,000 , -
45,000 A A A.-----4
A
40,000
35,000
30,000
25,000
20,000
15,000
10,000 • • • • • • •
5,000 -
0 ■ I I I I I I I I
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-1r-Population -0-School Enrollment
170
CITY OF TIGARD, OREGON
PRINCIPAL EMPLOYERS
For current year and nine years ago
2011 2002
Percentage Percentage
of total City of total City
Employer Employees Rank employment Employees Rank employment
Tigard-Tualatin School District 724 1 2.56% - -
Macy's Department Stores Inc 704 2 2.49% - -
Nordstrom 579 3 2.05% 502 2 2.18%
Oregon Public Employees Retirement 396 4 1.40% 461 3 2.01%
Providence Health System 377 5 1.34% - - -
HSBC Card Services Inc. 301 6 1.07% - - -
Costco Wholesale Corporation 300 7 1.06% - - -
City of Tigard 267 8 0.95% - - -
University of Phoenix 256 9 0.91% - - -
Veris Industries LLC 248 10 0.88% - - -
Renaissance Credit Services - - 1,116 1 4.86%
Servicemaster Building Maintenance - - 250 4 1.09%
Rockwell Collins Flight Dynamics - - 249 5 1.08%
4,152 14.71% 2,578 11.22%
Source: City of Tigard Adopted Budget and Tigard Chamber of Commerce.
171
CITY OF TIGARD, OREGON
PROPERTY VALUE AND CONSTRUCTION
For the last ten fiscal years
Commercial Residential
Fiscal Year Construction(1) Construction(1)
Ended Number of Number of
June 30 Permits Value Permits Value
2002 12 $ 21,583,399 387 (2) $ 96,339,584
2003 10 22,289,054 375 (2) 104,951,598
2004 17 59,523,557 375 (2) 99,056,117
2005 11 49,645,891 325 (2) 96,002,190
2006 8 50,744,300 299 (2) 100,965,847
2007 9 50,512,736 231 (2) 67,798,361
2008 6 73,614,404 93 (2) 31,810,734
2009 4 1,944,775 42 (2) 9,324,154
2010 4 2,003,118 123 (2) 27,972,462
2011 5 837,655 113 (2) 28,150,102
(1)From City of Tigard Building Department. Multi-family permits are included in the
number of permits issued for residential construction.
(2)Residential totals for permits and value include amounts from
Urban/Washington County as well as City of Tigard.
172
CITY OF TIGARD,OREGON
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
For the last ten fiscal years
Full-time Equivalent Employees as of June 30
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Function/Program
Community services
Police 75.50 75.00 76.00 77.00 78.00 80.00 93.00 93.00 90.10 90.10
Library 30.70 30.65 28.90 33.20 33.20 34.20 41.90 41.90 38.80 38.80
Public works
Administration 6.50 7.00 7.00 7.85 7.60 7.60 8.85 8.85 9.35 9.75
Parks maintenance 9.75 10.25 11.00 10.75 10.75 10.75 9.75 9.75 9.75 9.75
Street maintenance 9.35 9.20 8.50 8.00 7.00 7.00 7.00 7.00 7.00 7.00
Fleet maintenance 3.22 3.10 3.25 3.00 2.50 2.50 2.50 2.50 2.00 2.60
Property management 3.38 3.25 3.25 3.25 3.25 3.25 4.25 4.25 4.25 4.25
Engineering(a) 16.00 16.00 15.50 15.50 15.50 10.50 10.50 10.50 11.80 11.80
Community development
Administration 3.00 3.00 3.00 3.00 3.00 2.00 3.00 3.00 2.00 2.00
Building inspection 13.50 13.50 16.30 18.30 18.80 19.80 17.80 6.20 6.24 7.20
Current planning 9.00 9.00 8.20 8.20 8.20 8.20 10.20 10.20 7.56 7.80
Long range planning 5.00 5.00 5.00 5.00 7.00 8.00 7.00 7.00 7.00 7.00
Development Engineering(b) 5.00 5.00 4.00 1.60 -
Downtown Redevelopment(c) 1.00 1.00 1.00 1.00
Policy and Administration
City management 5.80 5.80 4.00 3.80 3.80 3.80 5.30 5.30 4.50 4.50
Human resources 4.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 5.00 5.00
Information technology 8.00 8.00 6.00 6.00 7.00 8.00 7.00 7.00 7.00 7.00
Risk management 2.00 2.00 2.00 2.00 2.00 2.00 2.50 2.50 2.30 2.30
Finance administration 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 5.30 3.00
Financial operations 10.80 10.80 10.80 10.80 10.80 10.80 5.50 5.50 4.50 4.50
Utility Billing(d) 6.50 6.50 5.50 5.50
Office services 7.00 7.00 7.30 7.30 7.30 7.30 4.50 4.50 3.05 3.05
Contracts&Purchasing(e) 2.30
City Recorder/Records(f) 3.00 3.00 3.25 3.25
Municipal court 4.00 3.00 3.00 3.00 3.00 3.00 3.25 3.25 3.50 3.75
Sanitary Sewer 6.93 6.95 7.25 7.75 7.25 7.35 5.35 5.35 5.25 5.25
Storm Sewer 6.92 6.95 7.75 8.25 7.25 6.35 7.10 7.10 7.00 7.00
Water 17.95 18.00 17.00 16.25 16.50 17.30 16.30 16.30 13.00 12.00
Total 261.30 260.45 258.00 265.20 266.70 271.70 296.05 283.45 267.60 267.45
Source: City of Tigard Finance Department
(a) Engineering was budgeted with Development Services until FY 2009-10.
(b) Development Engineering was budgeted with Capital Construction&Transportation as Engineering until FY 2006-07.
(c)Downtown Redevelopment was budgeted with Long range planning until FY 2008-09.
(d) Utility Billing was budgeted with Financial operations until FY 2007-08.
(e) Contracts&Purchasing was budgeted with Finance administration until FY 2010-2011.
(f) City Recorder/Records was budgeted with Office services until FY 2008-09.
173
CITY OF TIGARD,OREGON
OPERATING INDICATORS BY FUNCTION/PROGRAM
For the last nine fiscal years
Fiscal Year
Functions/Programs 2003 2004 2005 2006 2007 2008 2009 2010 2011
Governmental activities:
Community services
Police-number of traffic citations issued 6,815 6,815 6,006 6,800 6,979 6,383 6,925 9,101 7,021
Police-number of calls for service 49,333 49,333 53,754 51,062 51,000 51,377 50,115 51,158 49,358
Library-number of items in collection 115,618 115,618 125,570 143,500 156,500 176,210 193,710 216,110 237,110
Library-materials checked out each year 685,000 685,000 728,250 850,000 918,540 1,131,093 1,249,462 1,462,304 1,507,248
Public works
Acres of park land maintained 170 170 176 176 180 184 189 189 233
Crack sealing completed annually(linear feet) 98,000 98,000 150,000 151,000 160,000 160,000 160,000 160,000 160,000
Vehicles maintained to industry standard 140 140 144 148 150 153 158 160 149
Community development
Number of inspections(Tigard) 14,200 14,200 21,000 19,550 23,000 23,500 7,778 8,700 9,990
Number of permits(all types)in Tigard 3,300 3,300 3,600 3,351 4,500 4,850 2,278 3,025 3,220
Number of development applications 400 400 430 374 507 450 508 370 370
Policy and administration
Number of job applications 1,800 1,800 1,900 2,000 2,000 2,300 2,215 1,900 1,000
Laptops and computers to maintain 325 325 445 500 540 435 451 488 491
Insured value of City's real property cm millions) $ 27.9 $ 27.9 $ 38.8 $ 40.8 $ 46.2 $ 73.5 $ 78.2 $ 81.6 $ 81.8
Number of utility bills sent 106,055 106,055 109,854 112,775 113,502 115,574 114,500 116,800 117,300
Average fine amount collected $ 68 $ 68 $ 78 $ 97 $ 90 $ 94 $ 90 $ 90 $ 126
Business-type activities:
Sewer
Miles of sewer lines cleaned(annual goal) 53.2 53.2 48.5 50.8 51.6 53.4 46.6 40.7 41.0
Miles of sewer lines video inspected(annual goal) 20.7 20.7 26.1 21.8 22.1 23.0 23.2 23.3 23,0
Storm Water
Miles of storm sewer lines cleaned 30.2 30.2 13.7 28.5 29.6 43.6 30.2 30.6 31.0
Number of Water Quality facilities 60 60 62 70 73 75 78 72 90
Total number of catch basins cleaned 3,867 3,867 3,915 4,045 4,150 4,915 4,437 4,437 4,368
Water
Number of accounts 16,712 16,712 17,022 17,300 17,400 17,870 17,900 17,900 18,000
*Fiscal year 2002-03 was the first year that the new reporting requirements of GASB 34 were
implemented at the City of Tigard.
Source:City of Tigard Finance Department
174
CITY OF TIGARD,OREGON
CAPITAL ASSETS STATISTICS BY FUNCTION
For the last nine fiscal years
Fiscal Year
Functions/Programs 2003 2004 2005 2006 2007 2008 2009 2010 2011
Governmental activities:
Community services
Police stations 1 1 1 1 1 1 1 1 1
Library buildings 1 1 1 1 1 1 1 1 1
Public works
Number of parks 11 13 13 13 13 13 14 14 14
Acres of park and greenspaces 293.5 347.0 347.0 347.0 348.0 348.0 396.0 396.0 435.4
Miles of streets 142.5 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0
Community development
See Note
Policy and administration
City-owned building facilities 4 5 5 5 5 5 5 5 5
Business-type activities:
Sewer
Total miles of sanitary sewer lines 142.0 146.6 148.0 152.8 160.4 160.4 161.0 162.8 164.5
Storm Water
Total miles of storm sewer lines 111.0 110.6 113.0 116.6 130.9 131.0 131.0 131.0 131.0
Number of Water Quality facilities 45 60 62 62 77 77 79 79 92
Water
Water mains in miles 210 210 220 224 225.1 225.1 225.1 235.0 245.0
Number of reservoirs 13 13 13 13 13 13 13 13 13
Source:City of Tigard Finance Department
Note:No capital assets indicators are available for development services functions.
*Fiscal year 2002-03 was the first year that the new reporting requirements of GASB 34 were
implemented at the City of Tigard.
175
AUDIT COMMENTS AND
DISCLOSURE REQUIREMENTS
177
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
February 7, 2012
TKIII City Council
City of Tigard, Oregon
Tigard, Oregon
Talbot,Korvola We have audited the financial statements of the governmental activities, the
&Warwick,LLP business-type activities, each major fund, and the aggregate remaining fund
information of the City of Tigard, Oregon, (the City) as of and for the year ended
IS
ta
June 30, 2011, which collectively comprise the City's basic financial statements, and
have issued our report thereon dated February 7, 2012. We conducted our audit in
4800 SW Macadam Ave,Suite 400 accordance with auditing standards generally accepted in the United States of
Portland,Oregon 97239-3973 America and the standards applicable to financial audits contained in Government
P503.274.2849 Auditing Standards, issued by the Comptroller General of the United States.
F 503.274.2853
www.tkw.com INTERNAL CONTROL OVER FINANCIAL REPORTING
Management of the City is responsible for establishing and maintaining effective
internal control over financial reporting. In planning and performing our audit, we
considered the City's internal control over financial reporting as a basis for designing
our auditing procedures for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of
the City's internal control over financial reporting. Accordingly, we do not express an
opinion on the effectiveness of the City's internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited
purpose described in the preceding paragraph and was not designed to identify all
deficiencies in internal control over financial reporting that might be significant
deficiencies or material weaknesses and therefore, there can be no assurance that
all deficiencies, significant deficiencies, or material weaknesses have been identified.
However, as described in the accompanying Schedule of Findings and Questioned
Costs, we identified certain deficiencies in internal control over financial reporting
that we consider to be material weaknesses.
A deficiency in internal control exists when the design or operation of a control does
not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct misstatements on a timely
basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected
and corrected on a timely basis. We consider the deficiencies described in the
accompanying Schedule of Findings and Questioned Costs as items 2011-01, 2011-
02 and 2011-03 to be material weaknesses.
MCGLADREY ALLIANCE _.. McGIadrE jf
179
The McGladrey Alliance is a premier affiliation of independent accounting and consulting firms The McG!adrey Alliance member firms maintain their name,
autonomy and independence and are responsible for their own client fee arrangements delivery of services and maintenance of client relationships
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS (Continued)
Page 2
COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether the City's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances
of noncompliance or other matters that are required to be reported under Government Auditing
Standards.
* * * * * * * *
This report is intended solely for the information and use of the City Council, management,
others within the City, federal awarding agencies, and pass-through entities and is not intended
to be and should not be used by anyone other than these specified parties.
g , a
is
Certified Public Accountants
180
INDEPENDENT AUDITOR'S REPORT
10% REQUIRED BY OREGON STATE REGULATIONS
0/ February 7,Februa 2012
, City Council
TKIII City of Tigard
Tigard, Oregon
Talbot,Korvola We have audited the financial statements of the governmental activities, the
&Warwick,ova business-type activities, each major fund and the aggregate remaining fund
information of the City of Tigard, Oregon (the City), as of and for the year ended
d r, June 30, 2011, which collectively comprise the City's basic financial statements and
"S t have issued our report thereon dated February 7, 2012. We conducted our audit in
4800 SW Macadam Ave,Suite 400 accordance with auditing standards generally accepted in the United States of
Portland,Oregon 97239-3973 America and the standards applicable to financial audits contained in Government
P503.274.2849 Auditing Standards, issued by the Comptroller General of the United States.
F 503.274.2853
www.tkw.com COMPLIANCE
As part of obtaining reasonable assurance about whether the City's financial
statements are free of material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts, and grants, including the
provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules
162-10-000 through 162-10-320 of the Minimum Standards for Audits of Oregon
Municipal Corporations, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion.
We performed the procedures to the extent we considered necessary to address the
required comments and disclosures, which included, but were not limited to the
following:
• Deposit of public funds with financial institutions (ORS Chapter 295).
• Indebtedness limitations, restrictions and repayment.
• Budgets legally required (ORS Chapter 294).
• Insurance and fidelity bonds in force or required by law.
• Programs funded from outside sources.
• Highway revenues used for public highways, roads, and streets.
• Authorized investment of surplus funds (ORS Chapter 294).
• Public contracts and purchasing (ORS Chapters 279A, 279B, 279C).
C LADREY ALLIANCE ■rr. McGladrey
181
The McGladrey Alliance is a premier affiliation of independent accounting and consulting firms. The McGladrey Alliance member firms maintain their name,
autonomy and independence and are responsible for their own client fee arrangements,delivery of services and maintenance of client relationships.
INDEPENDENT AUDITOR'S REPORT
REQUIRED BY OREGON STATE REGULATIONS (Continued)
Page 2
COMPLIANCE (Continued)
In connection with our testing, nothing came to our attention that caused us to believe the City
was not in substantial compliance with certain provisions of laws, regulations, contracts, and
grants, including the provisions of Oregon Revised Statutes as specified in Oregon
Administrative Rules 162-10-000 through 162-10-320 of the Minimum Standards for Audits of
Oregon Municipal Corporations.
OAR 162-10-230 INTERNAL CONTROL
In planning and performing our audit, we considered the City's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the City's internal control over financial reporting.
Our report on internal control over financial reporting and on compliance and other matters
based on an audit of financial statements in accordance with Government Auditing Standards,
date February 7, 2012, is presented in this report as listed in the Table of Contents.
* * * * * * *
This report is intended solely for the information and use of the City Council, management,
Oregon Secretary of State Audits Division, others within the City, federal awarding agencies,
and pass-through entities and is not intended to be and should not be used by anyone other
than these specified parties.
L,v.:342._
Certified Public Acc untants
182