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CAFR Report FY 2012-2013Comprehensive Annual Financial Report FOR FISCAL YEAR ENDED JUNE 30, 2013 13125 SW Hall Boulevard | Tigard, OR 97223 | www.tigard-or.gov Before During After About the Cover: 10-Million-Gallon Storage tank Seismic upgrade and transfer Pump Station Project As the water provider for the 57,000 residents of the Tigard Water Service Area, the City of Tigard continues to make improvements and upgrades to its water infrastructure. This $5 million project included the construction of a new water pump station and a retrofit of an existing water storage tank. The new pump station replaced an undersized, aging station built in the early 70s. The new station offers greater reliability and efficiency; pumping capacity has increased by 5,000 gallons per minute. The 40-year-old storage tank was seismically retrofitted, repaired and sealed. This work extended the service life of the tank for decades and saved water customers millions when compared to the cost of constructing a new tank. This project was funded by:  $2.4 million American Recovery & Reinvestment Act grant.  $2.4 million state, low-interest Safe Drinking Water Revolving loan.  An Oregon State Lottery grant.  Tigard’s Water Capital Improvement Program. After OREGON Comprehensive Annual Financial Report For fiscal year ended June 30, 2013 Prepared by: Financial and Information Services Department Comprehensive Annual Financial Report 1 Table of Contents Introductory SectIon Letter of Transmittal ..................................................................................................................................................7 Certificate of Achievement for Excellence in Financial Reporting ...........................................................................14 Citywide Organization Chart ...................................................................................................................................15 Principal Officials as of June 30, 2013 ......................................................................................................................16 FInancIal SectIon Independent Auditor’s Report ................................................................................................................................19 Management’s Discussion and Analysis ..................................................................................................................23 BaSIc FInancIal SectIon Statement of Net Position .......................................................................................................................................41 Statement of Activities ...........................................................................................................................................42 Major Governmental Funds Balance Sheet ......................................................................................................................................................43 Statement of Revenues, Expenditures and Changes in Fund Balance ..................................................................44 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities .....................................................................................45 Proprietary Funds Statement of Net Position ...................................................................................................................................46 Statement of Revenues, Expenses and Changes in Fund Net Position .................................................................47 Statement of Cash Flows .....................................................................................................................................48 Pension Trust Fund Statement of Plan Net Position ............................................................................................................................49 Statement of Changes in Plan Net Position ..........................................................................................................49 noteS to BaSIc FInancIal StatementS Notes to Basic Financial Statements........................................................................................................................53 requIred Supplementary InFormatIon Schedule of Revenues and Expenditures: Budget and Actual General Fund ......................................................................................................................................................79 Gas Tax Fund ........................................................................................................................................................80 Notes to Required Supplemental Information – Budget to GAAP Reconciliation .................................................81 other Supplementary InFormatIon Non-major Governmental Funds Combining Statements Combining Balance Sheet ....................................................................................................................................85 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...............................................86 SpecIal revenue FundS Combining Balance Sheet ....................................................................................................................................89 Combining Statement of Revenues, Expenditures and Changes in Fund Balance .................................................90 Schedule of Revenues and Expenditures: Budget and Actual City Gas Tax Fund ................................................................................................................................................91 Electrical Inspection Fund ...................................................................................................................................92 Building Fund ......................................................................................................................................................93 Criminal Forfeiture Fund .....................................................................................................................................94 Urban Forestry Fund ...........................................................................................................................................95 Library Fund .........................................................................................................................................................96 2 Comprehensive Annual Financial Report deBt ServIce FundS Combining Balance Sheet — Non-major Debt Service Funds .............................................................................99 Combining Statement of Revenues, Expenditures and Changes in Fund Balance ..............................................100 Schedule Of Revenues And Expenditures: Budget And Actual Bancroft Bond Debt Service Fund ......................................................................................................................101 General Obligation Debt Service Fund ...............................................................................................................102 Urban Renewal Agency Debt Service Fund .......................................................................................................103 CAPiTAl PROJECT FuNdS Combining Balance Sheet — Non-major Special Revenue Funds ......................................................................107 Combining Statement of Revenues, Expenditure and Changes in Fund Balance — Non-major Special Revenue Funds ....................................................................................................................108 Schedule Of Revenues And Expenditures: Budget And Actual Facilities Fund ....................................................................................................................................................109 Transportation Development Tax Fund ..............................................................................................................110 Traffic Impact Fee Fund ......................................................................................................................................111 Underground Utility Fund ..................................................................................................................................112 Street Maintenance Fee Fund ............................................................................................................................113 Parks Capital Fund ..............................................................................................................................................114 Parks Bond Fund ................................................................................................................................................115 Parks SDC Fund ...................................................................................................................................................116 Transportation CIP Fund .....................................................................................................................................117 Urban Renewal Agency Capital Project Fund .....................................................................................................118 enterprISe FundS Schedule Of Revenues And Expenditures: Budget And Actual Sanitary Sewer Fund ..........................................................................................................................................121 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses — Sanitary Sewer Fund ..........................................................................................................................................122 Storm Sewer Fund ..............................................................................................................................................123 Water Quality/Quantity Fund.............................................................................................................................124 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses — Storm Sewer Funds ............................................................................................................................................125 Water Fund ........................................................................................................................................................126 Water SDC Fund .................................................................................................................................................127 Water CIP Fund ..................................................................................................................................................128 Water Debt Service Fund ...................................................................................................................................129 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses — Water Funds ......................................................................................................................................................130 Reconciliation of Budgetary Fund Balance to Generally Accepted Accounting Principles Basis Net Position .....131 Internal ServIce FundS Combining Statement of Net Position ...................................................................................................................135 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .................................................136 Combining Statement of Cash Flows .....................................................................................................................137 Schedule Of Revenues And Expenditures: Budget And Actual Central Services Fund ........................................................................................................................................138 Fleet/Property Management Fund ....................................................................................................................139 Insurance Fund ..................................................................................................................................................140 Table of Contents Comprehensive Annual Financial Report 3 other Supplementary ScheduleS Schedule of Property Tax Transactions and Outstanding Balances .......................................................................143 Schedule of Bond and Bond Interest Transactions ................................................................................................144 Schedule of Future Debt Service Requirements of Bancroft Improvement Bonds ................................................145 Schedule of Future Debt Service Requirements of General Obligation Bonds ......................................................146 Schedule of Future Debt Service Requirements of Water Revenue Bonds ............................................................147 StatIStIcal SectIon Net Position by Component ..................................................................................................................................153 Changes in Net Position ........................................................................................................................................154 Fund Balances of Governmental Funds ................................................................................................................156 Changes in Fund Balances of Governmental Funds ...............................................................................................157 Governmental Revenues ......................................................................................................................................158 Governmental Expenses by Function ....................................................................................................................159 General Governmental Revenues by Sources .......................................................................................................160 General Governmental Expenditures by Function .................................................................................................161 Market Value and Assessed Value of Taxable Property ........................................................................................162 Property Tax Rates – Direct and Overlapping Governments .................................................................................163 Principal Property Taxpayers ................................................................................................................................165 Property Tax Levies and Collections ......................................................................................................................166 Special Assessment Collections ............................................................................................................................167 Ratio of Annual Debt Service Expenditures for Long-term Debt to General Governmental Expenditures .............168 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita .....................................169 Computation of Direct and Overlapping General Obligation Debt ........................................................................170 Computation of Legal Debt Margin ........................................................................................................................171 Ratio of Debt by Type .............................................................................................................................................172 Demographic Statistics ..........................................................................................................................................173 Principal Employers ...............................................................................................................................................174 Property Value and Construction ...........................................................................................................................175 Full-time Equivalent City Government Employees by Function ..............................................................................176 Operating Indicators by Function/Program ...........................................................................................................177 Capital Assets Statistics by Function ......................................................................................................................178 audIt commentS and dIScloSure requIrementS Independent Auditor’s Report Required by Oregon State Regulations...................................................................179 Table of Contents 4 Comprehensive Annual Financial Report Comprehensive Annual Financial Report 5 Introductory Section Comprehensive Annual Financial Report 7 November 13, 2013 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, 2013. 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, 2013, 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, 2013, 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 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. Letter of Transmittal 8 Comprehensive Annual Financial Report Profile of the Government The City of Tigard is located in southeast Washington County, 15 minutes from downtown Portland, OR 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 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 12.2 square miles and has a population of 48,695. 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. The city can extend its corporate limits by annexation which is permitted by state statute. In fiscal year 2013, the city annexed approximately 268 acres. 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. Comprehensive Annual Financial Report 9 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. At 6.6 percent, the City of Tigard is 1.0 percent lower than the Portland Metro area as a whole and 1.5 percent lower than the State of Oregon at 8.1 percent. 2008 2009 2010 2011 2012 2013 2% 4% 6% 8% 10% 12% 14% Oregon united States Portland Metro Washington Co. Tigard Six-yEAR COMPARiSON OF uNEMPlOyMENT RATES 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. Number of Businesses, as of March 2013 3,066 Median Household Income (estimated 2009)$62,521 Primary Economic Sector (receipts/sales)Wholesale Trade General Fund Permanent Tax Rate $2.51310 per $1000 of assessed value Total Assessed Value (2011)$5,277,344,468 Summary oF economIc data 10 Comprehensive Annual Financial Report Long-term Financial Planning The city has developed a comprehensive long-term financial forecast every year since the 1980s. 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. Employer Product or Service Employment Capital One Services Financial Services 861 Tigard–Tualatin School District Local School District 779 Nordstrom Retail Department Store 428 Oregon Public Employees Retirement Public Retirement System 396 Macy’s Retail Department Store 390 Costco Wholesale Corporation Box Store 300 City of Tigard Local Government 255 Winco Retail Grocery Store 176 Capital One Financial Services 173 JC Penney Retail Department Store 144 TEN lARGEST EMPlOyERS (as of March 2012) Comprehensive Annual Financial Report 11 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.  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 2013 council established eight goals for the city as follows: 1. Tigard’s Strategic Plan  Engage the community to develop and adopt a vision and long-range strategic plan for the next generation. In coming years, annual goals will be guided by the strategic plan. 2. Communicate with Tigard residents  Develop new strategies to expand the pool of involved residents, build awareness and engage in ongoing two-way dialogue  Develop Tigard’s community identity. 3. Financial Sustainability  Balance/adopt 2013–14 budget and CIP, together with Budget Committee. - Includes focus on key facility needs.  Maximize franchise revenue. - Do not lose current-year PGE revenue collections. - Implement solid waste franchise fee increases.  Labor relations: policy guidance for SEIU and TPOA agreements. 12 Comprehensive Annual Financial Report 4. Economic development  Develop and adopt citywide strategy.  Develop code improvements to support economic development and improve permitting efficiency.  Explore Pacific Highway Urban Renewal District options. 5. Take the Next Step on Major Projects  Water source and supply. - Preserve and advance Lake Oswego–Tigard Water Partnership. - Build partnership relationships. - Complete West Linn appeal; secure permits to proceed with plan and pipeline project. - Confer with Lake Oswego regarding 60 percent design estimates. - Evaluate future of partnership roles. - Continue transition of amended intergovernmental water agreement.  River Terrace Community Plan. - Take part in Stakeholder Working Group. - Guide Infrastructure Financing Strategy.  SW Corridor Plan. - Acceptance of Alternative Analysis.  Implement the Comprehensive Plan. - Adopt Comprehensive Plan amendments on Goal 10 (Housing Inventory). 6. downtown  Downtown Plaza Site Acquisition and Design Approval.  Develop a strategy for redevelopment of city-owned property.  Other Potential. - Determine terms for public private partnerships/developer incentives (for an eligible redevelopment proposal). - Finalize Saxony property purchase for redevelopment and develop design concepts. - (If railroad is cooperative), acquire property and develop concepts for Tigard Street Trail; advance options for rail crossing “trade” for Ash Avenue at-grade crossing. - Determine the need to amend urban renewal plan with new projects. 7. Other initiatives  Evaluate options and resources to create a pilot recreation program. - Use recreation inventory to match with program demands/service gaps. - Determine options for future programming (including partnerships).  Evaluate social gaming policy issues and options. 8. Represent Tigard effectively at the regional, state and federal level  Funding opportunities.  Transportation priorities/SW Corridor. Comprehensive Annual Financial Report 13 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. As noted above, the City Council has added downtown redevelopment to their current goals. 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, 2012. This was the 28th 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 2012–2013. This was the 25th 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 city has submitted is fiscal year 2013–2014 budget document and believes that it meets the Distinguished Budget Presentation Award’s requirements. 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, Marty Wine Toby laFrance City Manager Director of Financial and Information Services 14 Comprehensive Annual Financial Report Certificate of Achievement for Excellence in Financial Reporting Comprehensive Annual Financial Report 15 Citywide Organization Chart by program CiTizENS OF TiGARd mayor & c Ity councIl CiT y MANAGER c I ty attorney communIty ServIceS communIty development polIcy & admInIStratIon puBlIc workS Administration polIce lIBrary Operations Support Services Administration Readers’Services TechnicalServices Circulation Administration Facilities Fleet Parks/Grounds Sanitary Sewer Streets Storm Water Water Administration Building developmentServices Public Works –Engineering CommunityPlanning Economicdevelopment cIty admIn FInance & InFoServIceS Mayorand Council CityManagement HumanResources RiskManagement design andCommunications Municipal Court City Recorder/Records Administration FinancialOperations utility Billing informationTechnology Contacts andPurchasing 16 Comprehensive Annual Financial Report PRINCIPAL OFFICIALS AS OF JUNE 30, 2013 elected oFFIcIalS Name Term Expires Mayor John Cook December 31, 2014 Councilor Gretchen Buehner December 31, 2014 Councilor Marland Henderson December 31, 2016 Councilor Jason Snider December 31, 2016 Councilor Mark Woodard December 31, 2014 appoInted oFFIcIalS Name Marty Wine City Manager Toby laFrance Director of Financial and Information Services All may be reached at: 13125 SW Hall Boulevard Tigard, OR 97223 lEGAl COuNSEl Jordan Ramis PC Two Centerpointe Drive, 6th Floor Lake Oswego, OR 97035 Comprehensive Annual Financial Report 17 Financial Section Comprehensive Annual Financial Report 19 Independent Auditor’s Report 20 Comprehensive Annual Financial Report Comprehensive Annual Financial Report 21 Comprehensive Annual Financial Report 23 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, 2013. 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 $309.8 million (net position). Of this amount, $32.8 million (unrestricted net position) may be used to meet the city’s ongoing obligations to citizens and creditors.  The city’s net position increased $10.7 million over the course of this year’s operations. Within this total the net position of our business-type activities increased by $4.5 million or 4.5 percent, and net position of our governmental activities increased by $6.3 million or 3.0 percent.  During the fiscal year, the city generated $40.4 million in taxes, charges for services, and other revenues for governmental programs while incurring expenses from governmental activities totaling $34.2 million, for an increase in net position of $6.3 million.  In the city’s business-type activities, revenues increased by about $2.4 million, while expenses increased by about $4.9 million. The city increased water rates by 14 percent, sewer rates by 3.6 percent and storm water fees by 9.5 percent.  As of the close of fiscal year 2013, the city’s governmental funds reported combined ending fund balances of $29.1 million, an increase of about $2.5 million over the prior year. During fiscal year 2012–2013 the city enacted an additional franchise fee on the local electricity provider that increased franchise fees by approximately $0.5 million. The additional increase in ending fund balance came from reductions in expenditures compared to prior year. Because the city has been monitoring the continuing issue of expenditures growing at a faster pace than revenues, the fiscal year 2012–2013 budget was adopted with 18 fewer full-time equivalency (FTE) employees than the fiscal year 2011–2012 budget.  At the end of the fiscal year, unassigned fund balance for the General Fund was $9.7 million. The city is not anticipating a significant change in the economy and is closely monitoring revenues and expenditures.  The city’s total debt decreased by $2.3 million during fiscal year 2013. The city paid $2.6 million of normal annual debt service payments on the general obligation bonds, long-term notes, and Bancroft improvement bonds, but saw an increase of $0.3 million in its net Other Post Employment Benefits (OPEB) liability and a small capital lease. 24 Comprehensive Annual Financial Report 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 FInancIal StatementS GOvERNMENT-WidE (full accrual) Governmental Activities Business-type Activities Fund Governmental (modified accrual) Proprietary (full accrual) Fiduciary (full accrual) noteS to Ba SIc FInancIal Statement S requIred Supplemental InFormatIon (other than Md&A) other Supplementary InFormatIon Comprehensive Annual Financial Report 25 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 Position presents information on all of the city’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position 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 position changed during the most recent fiscal year. All changes in net position 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 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 41–42 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. Basic Financial Statements 26 Comprehensive Annual Financial Report The city maintains 21 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 two major funds: General Fund and Gas Tax Fund. Data from the other 19 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. The basic governmental fund financial statements can be found on pages 43–45 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 and property maintenance, risk management, design and communication, 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, Water CIP and Water Debt Service 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 119–129 of this report. Budgetary comparisons for the internal service funds are provided on pages 135–140 of this report. The proprietary fund financial statements can be found on pages 46–48 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 49 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 53–76 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 85–140 of this report. Comprehensive Annual Financial Report 27 Government-wide Financial Analysis Net position: as noted earlier, net position may serve over time as a useful indicator of the city’s financial position. In the case of the city, assets exceeded liabilities by $309.8 million at June 30, 2013. The largest portion of the city’s net position (83 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 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. NET P OSi TiON AS OF FiSCAl yEAR-ENd (in millions) Governmental Activities Business-type Activities Total Fy 12–13 Fy 11–12 Fy 12–13 Fy 11–12 Fy 12–13 Fy 11–12 aSSetS Current and other assets 37.3 34.2 122.0 125.8 159.3 160.0 Net capital assets 207.3 205.7 95.2 86.2 302.5 291.9 Total Assets 244.6 239.9 217.2 212.0 461.8 451.9 lIaBIlItIeS Other liabilities 4.8 4.6 7.1 5.8 11.9 10.4 Outstanding debt 32.3 34.1 107.9 108.4 140.2 142.5 Total liabilities 37.1 38.7 115.0 114.2 152.1 152.9 net poSItIon Net investment in capital assets 181.2 179.6 74.0 65.2 255.2 244.8 Restricted 12.0 13.2 9.8 13.2 21.8 26.4 Unrestricted 14.3 8.4 18.5 19.4 32.8 27.8 Total Net Position 207.2 201.2 102.3 97.8 309.8 299.0 The city’s net position increased by $10.8 million during the fiscal year. About $4.8 million of the increase was attributable to the increase in water rates and decrease in transfers-out in that service. The other $6.0 million of the increase was due to a decrease in debt, primarily in the governmental activities, and a decrease in governmental activities expenses. The revenues and expenses shown on the next table explain changes in net position for fiscal year 2013. 28 Comprehensive Annual Financial Report CHANGES iN NET POSiTiON (in millions) Governmental Activities Business-type Activities Total Fy 12–13 Fy 11–12 Fy 12–13 Fy 11–12 Fy 12–13 Fy 11–12 revenueS Program Revenues Charges for services 7.0 4.9 18.7 15.3 25.7 20.2 Operating grants/contributions 6.9 7.0 0 0 6.9 7.0 Capital grants/contributions 2.2 1.0 1.7 2.9 3.9 3.9 Total Program Revenues 16.1 12.9 20.4 18.2 36.5 31.1 General Revenues Taxes 21.2 20.1 0 0 21.2 20.1 Interest .03 .03 .01 0 .04 .03 Other 2.8 6.3 0.2 0.14 3.0 6.4 Total General Revenues 24.3 26.7 0.3 0.1 24.6 26.8 Total Revenues 40.4 39.6 20.7 18.3 61.1 57.9 expenSeS Community services 19.1 20.0 0 0 19.1 20.0 Public Works 8.6 12.5 0 0 8.6 12.5 Community Development 4.0 4.7 0 0 4.0 4.7 Policy and Administration 1.3 2.1 0 0 1.3 2.1 Interest on long-term debt 1.2 1.1 0 0 1.2 1.1 Sewer 0 0 2.1 1.7 2.1 1.7 Storm Water 0 0 2.0 1.7 2.0 1.7 Water 0 0 1.0 7.8 12.0 7.8 Total Expenses 34.2 40.4 16.1 11.2 50.3 51.6 Transfers in (out).01 2.9 (0.1)(2.9)0 0 Changes in Net Assets 6.3 2.1 4.6 4.2 10.8 6.3 Beginning Net Position 201.2 199.1 97.8 93.6 299.0 292.7 Ending Net Position 207.5 201.2 102.3 97.8 309.8 299.0 Comprehensive Annual Financial Report 29 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 2013. 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 38 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, water, sewer and solid waste haulers — $5.9 million. As noted above, the city exercised its right under state law to enact an additional franchise fee on the local electric utility, which raised an addition $0.5 million in franchise fee revenue.  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 $2.5 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 — $7.0 million. 30 Comprehensive Annual Financial Report Revenues — Business-type Activities Charges for services represent 90.6 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 2008 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. The city conducted a water rate study during fiscal year 2010. The city council approved rate increases of 7 percent on October 1, 2010 and 30.5 percent on January 1, 2011, along with 14 percent 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 9.5 percent in fiscal year 2013. Capital Grants $2,173,900 5% Other $316,512 1% GOvERNMENTAl ACTiviTiES — FiSCAl yEAR 2013 Revenues by Source $40,416,612 interest $248,812 1%intergovernmental Revenue $2,500,240 6% Franchise Fees $5,855,956 15% Property Taxes $15,338,744 38% Charges for Service $7,058,395 17% Operating Grants and Contributions $6,924,053 17% Comprehensive Annual Financial Report 31 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 (55.8 percent) relate to the city library and police department within the community services activity. Overall, expenses in governmental activities decreased by $6.2 million over the previous fiscal year. The majority of this decrease can be attributed to reductions in services due to budget restraints. GOvERNMENTAl ACTiviTiES — FiSCAl yEAR 2013 Expenses by Service Type $34,224,879 Community Services $19,085,777 56% Public Works $8,585,063 25% Community development $3,988,011 12% Policy and Administration $1,339,254 4% interest on long-term debt $1,226,774 4% 32 Comprehensive Annual Financial Report Expenses — Business-type Activities The majority of the expenses (74 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. Expenses in the water division were unchanged compared to last year. The sanitary sewer and storm water expenses increased only slightly from the previous fiscal year. 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. BuSiNESS-TyPE ACTiviTiES — FiSCAl yEAR 2013 Expenses by Service Type $16,148,790 Storm Water $2,045,399 13%Water $11,989,337 74% Sewer $2,114,054 13% Comprehensive Annual Financial Report 33 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 2013, the city’s governmental funds reported combined ending fund balances of $29.1 million, up $2.6 million from the prior year. Most of that fund balance, $14.9 million, is reported as restricted for various purposes. In the General Fund, $0.5 million is reported as non-spendable, and $9.7 million is reported as unassigned. General Fund The General Fund is the chief operating fund of the city. At the end of the fiscal year 2013, the unassigned fund balance was $9.7 million that can be used for funding of city programs. This is an increase of approximately $2.3 million which is primarily due to cuts in expenditures. The city is monitoring the continuation of flat revenues and increasing expenditure rates. Gas Tax Fund This fund records shared revenues from 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. 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 2013, the fund balance was $1.8 million, virtually unchanged from the prior year. Revenues of almost $3.0 million were used to fund street maintenance, street lighting and debt service on transportation bonds. Proprietary Funds The city’s proprietary funds include the Sanitary Sewer, Storm Sewer, Water and Internal Services Funds. The unrestricted net position of the business-type activities which include the Sanitary Sewer, Storm Sewer and Water Funds at the end of the year amounted to $12.7 million, a decrease of $6.7 million from the prior year. The decrease in unrestricted net position is largely due to the increase net investment in capital assets. The portion of net position reported as a net investment in capital assets increased by $14.6 million this year. The total increase in net position for these funds was $4.4 million, which is included in net investment in capital assets. The factors concerning the finances of the funds have already been addressed in the discussion of the city’s business- type activities. 34 Comprehensive Annual Financial Report General Fund Budgetary Highlights The city council approved three budget amendments to the adopted General Fund budget. Total increase in appropriations was $270,034. The overall change to the budget in the General Fund after these three amendments was less than one percent and had no significant effect 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. However the financial forecast also recognizes that departments do not spend 100 percent of the budget, and so an increase in ending fund balance was expected. Actual results show the ending fund balance increased by $2.5 million. This difference was caused by expenditures, including transfers out, that were $2.6 million lower than budget. The remaining difference was in unspent contingency and a higher actual beginning fund balance than what was budgeted. For expenditures, the variance was primarily due to a conservative approach to the budget. The variance represents approximately 8 percent of expenditures, which is in line with the city’s forecasting assumption that departments will spend approximately 92 percent of their budgets. In the financial forecast this ending fund balance is used to cushion the continuing issue of expenditures growing at a faster rate than revenues. Comprehensive Annual Financial Report 35 Capital Asset and Debt Administration Capital Assets Governmental Activities The city’s investment in capital assets for its governmental activities as of June 30, 2013, amounts to $207.3 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 $1.6 million, approximately eight-tenths of one percent. The city added assets primarily in the parks area as money from the parks bonds issued in fiscal year 2011 is spent. Expenditures on capital assets were higher than overall depreciation expense, leading to the increase in net capital assets. Business-type Activities The city’s investment in capital assets for its business-type activities as of June 30, 2013, amounts to $95.2 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 $9.0 million or 10 percent. This is primarily due to work being done on the city’s water partnership with the City of Lake Oswego. Additional information on the city’s capital assets can be found in the notes on pages 64–65 of this report. C APiTAl ASSETS AT yEAR-ENd (net of depreciation in millions) Governmental Activities Business-type Activities Total Fy 12–13 Fy 11–12 Fy 12–13 Fy 11–12 Fy 12–13 Fy 11–12 capItal aSSetS Land 24.6 22.5 5.2 4.5 29.8 27.0 Construction in progress 3.2 1.5 29.0 24.3 32.2 25.8 Buildings and building improvements 16.1 16.2 0.9 1.1 17.0 17.3 Land improvements 0.6 1.2 0 0 0.6 1.2 Sewer system 0 0 14.6 15.1 14.6 15.1 Storm drainage system 0 0 10.0 10.2 10.0 10.2 Water system 0 0 35.2 30.6 35.2 30.6 Machinery and equipment 1.4 1.5 0 0 1.4 1.5 Autos and trucks 0.6 0.5 0.3 0.4 0.9 0.9 Infrastructure 160.8 162.3 0 0 16.8 162.3 Total Capital Assets 207.3 205.7 95.2 86.2 302.5 291.9 36 Comprehensive Annual Financial Report Debt Outstanding As of year-end, the city had four types of long-debt currently outstanding, two of which are governmental and two are business-type. The governmental debt includes general obligation bonds ($28.8 million) secured by the city’s authority to levy property taxes and assessment bonds ($.9 million) secured by installment payment contracts with property owners. For the business-type activity, the city issued revenue bonds during fiscal year 2012 with a par value of $97.7 million. The proceeds from these bonds are being used to fund water capital projects, primarily the costs associated with the Tigard/Lake Oswego Water Partnership. The city is making interest-only payments on these bonds until 2016. The city also has an outstanding loan payable that is part of a grant and low interest loan package provided to the city to make improvements to one of the city’s water reservoirs. These funds were part of the American Recovery and Reinvestment Act (ARRA). The outstanding loan balance is $2.3 million. The most recent bond rating for general obligation issues occurred during fiscal year 2011. The city 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. During fiscal year 2012, in anticipation of issuing water revenue bonds, the city received a revenue bond rating of A1 from Moody’s and AA- from Standard & Poor’s. 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 $189 million. Additional information on the city’s debt can be found on pages 66–69 of this report. OuTSTANdiNG dEBT AT FiSCAl yEAR-ENd (in millions) Totals Total Percentage ChangeFy 12–13 Fy 11–12 GOvERNMENTAl General obligation 28.8 30.7 - 6.2% Local improvement 0.9 1.0 - 10.0% Total Outstanding debt 29.7 31.7 - 6.3% BuSiNESS-T yPE Note payable 2.3 2.4 - 4.2% Revenue bonds 97.7 97.7 0.0% Total Outstanding debt 100.0 100.1 - 0.1% Comprehensive Annual Financial Report 37 Economic Factors The unemployment rate for the Washington County area was 6.6 percent at the end of the fiscal year, June 30, 2013. This is a decrease from the same period last year, when the rate was 8.2 percent. The rate is also 1.2 percent lower than the national average of 7.8 percent for June 2013. The City of Tigard issues licenses for businesses operating within the city limits. As of June 30, 2013, there were 3,066 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. Anecdotal evidence indicates the economy in Washington County is improving. As noted above, the unemployment rate has decreased for the second straight year, and has decreased from a high of 10.4 percent at June 30, 2009 to 6.6 percent as of June 30, 2013. In addition, revenue that is an indicator of development, such as building permits and growth impact fees, increased an average of 49 percent in fiscal year 2013 over fiscal year 2012. In the last two fiscal years the City of Tigard has annexed approximately 500 acres of rural land. Planning is underway to prepare zoning so the land can be developed primarily for residential uses. The City of Tigard has developed a comprehensive long-term financial forecast every year since the 1980s. 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 2013 budget continued addressing a projected General Fund deficit that had been forecasted to occur earlier than what is now projected. Managers are aware of the continuing issue of flat revenues and increasing expenditure rates and are managing their budgets with that in mind. More adjustments were made to the forecast model during the fiscal year 2014 budget preparation; taking into account the city never spends 100% of its appropriations. The city produced a “hold-the-line” budget for fiscal year 2014 after making significant reductions in fiscal year 2013. The sluggish economy has affected the city’s urban renewal agency, which relies on tax-increment financing to fund downtown projects. So far the agency continues to rely on interfund loans to pay for projects. 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: City of Tigard Financial and Information Services Director 13125 SW Hall Blvd. Tigard, Oregon 97223 38 Comprehensive Annual Financial Report Comprehensive Annual Financial Report 39 Basic Financial Section Comprehensive Annual Financial Report 41 STATEMENT OF NET POSiT iON — June 30, 2013 Governmental Activities Business-type Activities Total aSSetS Cash and investments 32,066,375 110,861,404 142,927,779 Accounts receivable, net 3,152,739 3,969,912 7,122,651 Property taxes receivable 704,610 0 704,610 Assessment liens receivable 834,825 0 834,825 Prepaid expenses 588,024 18,100 606,124 Property held for resale 0 445,042 445,042 Restricted cash and investments 0 6,605,800 6,605,800 Inventory 36,200 50,981 87,181 Capital assets:  Land and construction in progress 27,790,081 34,209,210 61,999,291   Other capital assets (net of accumulated depreciation)179,463,678 61,031,135 240,494,813 Total Assets 244,636,532 217,191,584 461,828,116 lIaBIlItIeS Accounts payable and accrued liabilities 2,885,975 5,216,636 8,102,611 Customer deposits 1,118,393 34,341 1,152,734 Due to others 451,270 0 451,270 Due to (from) other activities 200,000 (200,000)0 Unearned revenue 75,609 0 75,609 Accrued interest payable 94,708 2,006,740 2,101,448 Due within one year:  Notes payable 0 92,379 92,379  Bonds payable 1,985,000 470,602 2,455,602  Accrued compensated absences 509,394 28,272 537,666   Special assessment bonded debt w/ gov. commit 457,983 0 457,983  Capital lease 13,592 0 13,592 Due in more than one year:  Unamortized bond premium 264,248 0 264,248  Notes payable 0 2,201,107 2,201,107  Bonds payable 26,820,000 104,896,687 131,716,687  Accrued compensated absences 657,559 84,817 742,376  Special assessment bonded debt w/ gov. commit 445,756 0 445,756  Capital lease 44,482 0 44,482  Net OPEB obligation 1,063,330 108,065 1,171,395 Total liabilities 37,087,299 114,939,646 152,026,945 net poSItIon Net investment in capital assets 181,196,030 74,044,470 255,240,500 Restricted for:  Capital projects 10,485,984 3,078,052 13,564,036  Debt service 1,555,741 6,605,800 8,161,541 Unrestricted 14,311,478 18,523,616 32,835,094 Total Net Position 207,549,233 102,251,938 309,801,171 The accompanying notes are an integral part of the basic financial statements. 42 Comprehensive Annual Financial Report Statement oF actIvItIeS for the year ended June 30, 2013 Functions/Programs Program Revenues Net (Expense) Revenue and Changes in Net Assets — Primary Government Expenses Charges for Services Operating Grants and Contri- butions Captial Grants and Contri- butions Govern- mental Activities Business- type Activities Total GOvERNMENTAl ACTiviTiES Community services 19,085,777 2,252,945 3,081,482 0 (13,751,350)0 (13,751,350) Public works 8,585,063 2,120,366 3,804,939 2,173,900 (485,858)0 (485,858) Community development 3,988,011 2,579,329 37,632 0 (1,371,050)0 (1,371,050) Policy and administration 1,339,254 105,755 0 0 (1,233,499)0 (1,233,499) Interest on long-term debt 1,226,774 0 0 0 (1,226,774)0 (1,226,774) Total Governmental Activities 34,224,879 7,058,395 6,924,053 2,173,900 (18,068,531)0 (18,068,531) BuSiNESS-T yPE ACTiviTiES Sewer 2,114,054 1,203,187 0 125,018 0 (785,849)(785,849) Storm water 2,045,399 2,629,694 0 9,250 0 593,545 593,545 Water 11,989,337 14,907,664 0 1,541,719 0 4,460,046 4,460,046 Total Business-type Activities 16,148,790 18,740,545 0 1,675,987 0 4,267,742 4,267,742 Total 50,373,669 25,798,940 6,924,053 3,849,887 (18,068,531)4,267,742 (13,800,789) GENERAl REvENuES Property taxes, levied for general purposes 12,752,923 0 12,752,923 Property taxes, levied for debt service 2,585,821 0 2,585,821 Fanchise fees 5,855,956 0 5,855,956 Unrestricted intergovernmental revenues 2,500,240 0 2,500,240 Interest earnings 248,812 114,661 363,473 Miscellaneous 316,512 157,360 473,872 Total General Revenues 24,260,264 272,021 24,532,285 Transfers between governmental and business-type activities 120,227 (120,227)0 Changes in net position 6,311,960 4,419,536 10,731,496 Net Position — Beginning 201,237,273 97,832,402 299,069,675 Net Position — Ending 207,549,233 102,251,938 309,801,171 The accompanying notes are an integral part of the basic financial statements. Comprehensive Annual Financial Report 43 GOvERNMENTAl FuNdS — BAlANCE SHEET June 30, 2013 General Fund Gas Tax Fund Other Gov. Funds Total Gov. Funds aSSetS Cash and investments 9,567,794 2,092,365 18,742,622 30,402,781 Accounts receivable, net 2,296,927 279,288 558,450 3,134,665 Due from other funds 449,844 151,941 0 601,785 Property taxes receivable 599,113 0 105,497 704,610 Assessment liens receivable 0 0 834,825 834,825 Prepaid expenses 472,941 3,671 11,315 487,927 Total Assets 13,386,619 2,527,265 20,252,709 36,166,593 lIaBIlItIeS Accounts payable and accrued liabilities 1,668,996 116,377 725,138 2,510,511 Customer deposits 122,690 599,009 396,694 1,118,393 Due to others 433,139 0 18,131 451,270 Due to other funds 0 0 801,785 801,785 Unavailable revenue: Property taxes 539,557 0 94,138 633,695  Long-term receivables 0 0 16,256 16,256  Grants 0 0 163,373 163,373  Franchise fee 131,764 0 0 131,764  Municipal court receivable 329,796 0 0 329,796  Assessment liens 0 0 825,309 825,309 Unearned revenue 0 0 59,660 59,660 Total liabilities 3,225,942 715,386 3,100,484 7,041,812 Fund BalanceS Non-spendable: Prepaid items 472,941 3,671 11,315 487,927 Restricted for: Street maintenance and improvements 0 1,808,208 2,735,132 4,543,340  Debt service 0 0 1,555,741 1,555,741  Park improvements 0 0 5,890,185 5,890,185  Underground utilities 0 0 567,555 567,555  Building inspection 0 0 1,702,827 1,702,827  Police services 0 0 125,488 125,488  Library improvements 0 0 474,648 474,648 Committed for: Street maintenance and improvements 0 0 2,771,966 2,771,966  Urban forestry 0 0 1,248,469 1,248,469 Assigned to: City Facilities 0 0 670,223 670,223 Unassigned 9,687,736 0 (601,324)9,086,412 Total Fund Balances 10,160,677 1,811,879 17,152,225 29,124,781 Total liabilities and Fund Balances 13,386,619 2,527,265 20,252,709 Amounts reported for governmental activities in the Statement of Net Position 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 $71,707,822 207,253,759 Other long-term assets are not available to pay for current-period expenditures and, therefore are unavailable in the funds:  Property taxes earned but not available 633,695  Long-term receivables 16,256  Grants earned but not available 163,373  Franchise fees earned but not available 131,764  Municipal court receivable 329,796  Assessment liens 825,309 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 937,077 Accrued compensated absences are not due and payable in the current period and therefore are not reported in the funds (876,746) Long-term liabilities – not reported in the funds: Bonds, notes payable and other liabilities, not due and payable in current period (29,972,990) Capital lease obligation (58,074) Accrued interest payable, not due and payable in the current period (94,708) Net OPEB obligation (864,059) Net Assets of Governmental Activities 207,549,233 The accompanying notes are an integral part of the basic financial statements. 44 Comprehensive Annual Financial Report GOvERNMENTAl FuNdS — STATEMENT OF REvENuES, ExPENdiTuRES, ANd CHANGES iN FuNd BAl ANCE June 30, 2013 General Fund Gas Tax Fund Other Gov. Funds Total Gov. Funds revenueS Taxes 12,787,066 2,835,366 2,585,821 18,208,253 City gas tax 0 0 830,031 830,031 Franchise fees 5,724,192 0 0 5,724,192 Special assessments 0 0 43,170 43,170 Licenses and permits 1,274,860 214 1,900,044 3,175,118 Intergovernmental revenues 5,890,582 0 150,404 6,040,986 Charges for services 2,465,989 0 4,166,790 6,632,779 Fines and forfeitures 918,761 0 120,187 1,038,948 Interest earnings 99,825 43,011 111,401 254,237 Miscellaneous 80,760 74,174 51,509 206,443 Total Revenues 29,242,035 2,952,765 9,959,357 42,154,157 expendItureS Current operating:  Community services 18,636,382 0 0 18,636,382  Public works 4,662,773 1,960,298 0 6,623,071  Community development 2,667,927 0 1,269,162 3,937,089  Policy and administration 711,385 0 0 711,385 Debt service:  Principal 0 445,604 1,546,896 1,992,500  Interest 0 170,324 1,094,471 1,264,795 Capital outlay 0 0 6,357,256 6,357,256 Total Expenditures 26,678,467 2,576,226 10,267,785 39,522,478 Excess (deficiency) of Revenues Over (under) Expenditures 2,563,568 376,539 (308,428)2,631,679 OTHER FiNANCiNG SOuRCES (uSES) Proceeds from capital lease 0 71,091 0 71,091 Transfers in 56,807 100,000 4,578,812 4,735,619 Transfers out (310,084 (508,418)(4,062,301)(4,880,803) Total Other Financing Sources (uses)(253,277)(337,327)516,511 (74,093) Net change in fund balances 2,310,291 39,212 208,083 2,557,586 Fund Balances – Beginning of year 7,850,386 1,772,667 16,944,142 26,567,195 Fund Balances – End of year 10,160,677 1,811,879 17,152,225 29,124,781 The accompanying notes are an integral part of the basic financial statements. Comprehensive Annual Financial Report 45 GOvERNMENTAl FuNdS — RECONCiliATiON OF THE STATEMENT OF REvENuES, E xPENdiTuRES ANd CHANGES iN FuNd BAl ANCES OF GOvERNMENTAl FuNdS TO THE STATEMENT OF ACTiviTiES for the year ended June 30, 2013 Net change in fund balances – total governmental funds 2,557,586 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 expenses 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 6,137,570  Less current year depreciation (4,598,008)1,539,562 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.  Property taxes (34,143)  Long-term receivables 16,256  Grants 126,170  Franchise fees 131,764  Municipal court receivable 329,796  Assessment liens (167,655)402,188 Repayment of bond principal is expenditure in the governmental funds, but the repayment reduces long- term liabilities in the Statement of Net Position.  Capital lease proceeds (58,074)  Premium amortization 26,058  Principal payments 1,992,500 1,960,484 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 the governmental funds.  Decrease in compensated absences 87,623  Decrease in accrued interest on debt 5,404  Increase in net OPEB obligation (173,795)(80,768) 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 Position – Internal Service Funds (67,092)  Change in Net Position of Governmental Activities 6,311,960 The accompanying notes are an integral part of the basic financial statements. 46 Comprehensive Annual Financial Report PROPRiETARy FuNdS — Statement oF net poSItIon for the year ended June 30, 2013 Business-type Activities — Enterprise Funds Governmental Activities Sanitary Sewer Storm Water Water Totals internal Service Funds aSSetS Current assets:  Cash and investments 6,222,932 4,050,059 107,194,213 117,467,204 1,663,594  Accounts receivable 1,379,667 358,065 2,232,180 3,969,912 18,076  Loan to CCDA 200,000 0 0 200,000 0  Prepaid expenses 1,789 3,005 13,306 18,100 100,097  Property held for resale 185,021 260,021 0 445,042 0  Inventory 0 0 50,981 50,981 36,200 Total Current Assets 7,989,409 4,671,150 109,490,680 122,151,239 1,817,967 NON-CuRRENT ASSETS Capital assets:  Land and construction in progress 1,011,474 163,897 33,033,839 34,209,210 0   Other capital assets (net of accumulated depreciation)14,784,066 10,514,506 35,732,563 61,031,135 0 Total Non-current Assets 15,795,540 10,678,403 68,766,402 95,240,345 0 Total Assets 23,784,949 15,349,553 178,257,082 217,391,584 1,817,967 lIaBIlItIeS Current liabilities:  Accounts payable and accrued liabilities 1,189,448 229,886 3,797,302 5,216,636 375,464  Customer deposits 0 8,833 25,508 34,341 0  Accrued interest payable 0 0 2,006,740 2,006,740 0  Accrued compensated absences 6,821 3,890 17,561 28,272 290,207  Unearned revenue 0 0 0 0 15,948   Current portion of unamortized bond premium 0 0 470,602 470,602 0  Current portion of note payable 0 0 92,379 92,379 0 Total Current liabilities 1,196,269 242,609 6,410,092 7,848,970 681,619 NON-CuRRENT liABiliTiES  Accrued compensated absences 20,462 11,670 52,685 84,817 0   Note payable – long-term portion 0 0 2,201,107 2,201,107 0   Revenue bonds payable – long-term portion 0 0 104,896,687 104,896,687 0   Net OPEB obligation 25,113 28,805 54,147 108,065 199,271 Total Non-current liabilities 45,575 40,475 107,204,626 107,290,676 199,271 Total liabilities 1,241,844 283,084 113,614,718 115,139,646 880,890 net poSItIon  Net investment in capital assets 15,795,540 10,678,403 47,570,527 74,044,470 0  Restricted for capital projects 0 0 3,078,052 3,078,052 0  Restricted for debt service 0 0 6,605,800 6,605,800 0  Unrestricted 6,747,565 4,388,066 7,387,985 18,523,616 937,077 Total Net Position 22,543,105 15,066,469 64,642,364 102,251,938 937,077 The accompanying notes are an integral part of the basic financial statements. Comprehensive Annual Financial Report 47 PROPRiETARy FuNdS — STATEMENT OF REvENuES, ExPENSES, ANd CHANGES iN FuNd NET POSiTiON for the year ended June 30, 2013 Business-type Activities — Enterprise Funds Governmental Activities Sanitary Sewer Storm Water Water Totals internal Service Funds OPERATiNG REvENuES  Charges for services 1,203,187 2,629,694 14,907,664 18,740,545 7,139,558  Miscellaneous 128,390 3,039 25,931 157,360 99,233 Total Operating Revenues 1,331,577 2,632,733 14,933,595 18,897,905 7,238,791 OPERATiNG ExPENSES  Salaries and wages 591,651 597,038 1,131,531 2,320,220 4,442,695   Contracted services 124,648 383,826 3,427,839 3,936,313 781,561   General, administrative and other 743,710 618,398 2,316,605 3,678,713 2,082,511   Depreciation 654,045 446,137 1,182,159 2,282,341 0 Total Operating Expenses 2,114,054 2,045,399 8,058,134 12,217,587 7,306,767 Operating income (loss)(782,477)587,334 6,875,461 6,680,318 (67,976) NON-OPERATiNG REvENuES (ExPENSES)  Investment revenue 502 3,526 110,633 114,661 884  Interest expense 0 0 (3,931,203)(3,931,203)0  System development revenue 125,018 9,250 1,541,719 1,675,987 0 Total Non-operating Revenue (expenses)125,520 12,776 (2,278,851)(2,140,555)884 Net income Before Transfers (656,957)600,110 4,596,610 4,539,763 (67,092) Transfers in 0 0 180,291 180,291 0 Transfers out (36,384)(98,597)(165,537)(300,518)0 Changes in Net Position (693,341)501,513 4,611,364 4,419,536 (67,092) Net Position – Beginning of year 23,236,446 14,564,956 60,031,000 97,832,402 1,004,169 Net Position – End of year 22,543,105 15,066,469 64,642,364 102,251,938 937,077 The accompanying notes are an integral part of the basic financial statements. 48 Comprehensive Annual Financial Report PROPRiETARy FuNdS — Statement oF ca Sh FlowS for the year ended June 30, 2013 Business-type Activities — Enterprise Funds Governmental Activities Sanitary Sewer Storm Water Water Totals internal Service Funds CASH FlOWS FROM OPERATiNG ACTivi TiES  Receipts from customers 10,856,852 2,534,524 14,416,264 27,807,640 7,145,101  Payments to suppliers (10,873,799)(980,560)(5,587,460)(17,441,819)(3,107,372)  Payments to employees (579,902)(590,711)(1,115,042)(2,285,655)(4,372,326)  Other receipts 128,390 3,039 25,931 157,360 116,238 Net Cash Provided (used) by Operating Activities (468,459)966,292 7,739,693 8,237,526 (218,359) CASH FlOWS FROM NON-CAPiTAl FiNANCiNG ACTiviTiES  Transfers to other funds (36,384)(98,597)(165,538)(300,519)0  Proceeds from other funds 0 0 180,291 180,291 0 Net Cash (used) from Capital and Related Financing Activities (36,384)(98,597)14,753 (120,228)0 ca Sh FlowS From capI tal and related FiNANCiNG ACTiviTiES  System development revenue 125,018 9,250 1,541,719 1,675,987 0  Long-term debt payments 0 0 (575,116)(575,116)0  Interest expense 0 0 (2,820,854)(2,820,854)0  Acquisition of capital assets (661,637)(286,295)(10,388,041)(11,335,973)0 Net Cash (used) by Capital and Related Financing Activities (536,619)(277,045)(12,242,292)(13,055,956)0 CASH FlOWS FROM iN vESTiNG ACTiviTiES  Property held for resale (185,021)(260,021)0 (445,042)0  Interest earnings 502 3,526 110,633 114,661 884 Net Cash Provided (used) by investing activities (184,519)(256,495)110,633 (330,381)884 Net increase (decrease) in cash and cash equivalents (1,225,981)334,155 (4,377,213)(5,269,039)(217,475) Cash and investments – Beginning of year 7,448,913 3,715,904 111,571,429 122,736,246 1,881,069 Cash and investments – End of year 6,222,932 4,050,059 107,194,216 117,467,207 1,663,594 RECONCiliATiON OF OPERATiNG iNCOME (lOSS) TO NET CASH PROvidEd By OPERATiNG ACTiviTiES  Operating income (loss)(782,477)587,334 6,875,461 6,680,318 (67,976) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Cash flows reported in other categories:  Depreciation expense 654,045 446,137 1,182,159 2,282,341 0 Change in assets and liabilities:  Receivables (554,397)(95,170)(476,610)(1,126,177)6,600  Prepaid expenses (1,789)(3,005)(13,306)(18,100)(39,925)  Inventory 0 0 0 0 (17,962)  Accounts payable and accrued liabilities 204,410 24,669 170,290 399,369 (185,413)  Unearned revenue 0 0 0 0 15,948  Accrued compensated absences 5,887 (415)4,768 10,240 28,397  Customer deposits 0 883 (14,793)(13,910)0  OPEB obligation 5,862 5,859 11,724 23,445 41,972 Net Cash Provided (used) by Operating Activities (468,459)966,292 7,739,693 8,237,526 (218,359) The accompanying notes are an integral part of the basic financial statements. Comprehensive Annual Financial Report 49 STATEMENT OF Pl AN NET POSiTiON — pen SIon truSt Fund for the year ended June 30, 2013 aSSetS  Cash and cash equivalents 5,656,033  Corporate bonds 646,239  Corporate stocks 13,789,334 Total Assets 20,091,606 Net Position of Assets Held in Trust for Pension Benefits 20,091,606 STATEMENT OF CHANGES iN Pl AN NET POSiTiON — pen SIon truSt Fund for the year ended June 30, 2013 addItIonS  Contributions – employer 1,251,188  Contributions – employee 164,999  Investment income 2,088,762 Total Additions 3,504,949 deductIonS  Benefit payments and withdrawals 1,451,457 increase in Net Position 2,053,492 Net Position of Assets Held in Trust for Pension Benefits – Beginning of year 18,038,114 – End of year 20,091,606 The accompanying notes are an integral part of the basic financial statements. 50 Comprehensive Annual Financial Report Comprehensive Annual Financial Report 51 Notes to Basic Financial Statements Comprehensive Annual Financial Report 53 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. The accompanying financial statements present the city and its componenent unit. The activities of the Tigard City Center Development 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. 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 Position, 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 with the exception of transfers between governmental activities and business-type 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 Position 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 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 included among program revenues are reported instead as general revenues. 54 Comprehensive Annual Financial Report 1. Summary of Significant Accounting Policies Continued: 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 supplementary 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 may also elect to add major funds that city officials believe are particularly useful to financial statement users. The city has elected to include the Gas Tax Fund as a major fund in the current financial statements for consistency. Non-major funds are combined in a column in the fund financial statements and detailed as supplementary information 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 position. All transactions and events that affect the total economic resources (net position) during the period are reported. An economic resources measurement focus is inextricably connected with full-accrual accounting. Under the 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. Comprehensive Annual Financial Report 55 1. Summary of Significant Accounting Policies Continued: 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. An unavailable 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 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 revenue is eliminated. 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, interest, other post-employment benefits and compensated absences must be included. 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. 56 Comprehensive Annual Financial Report 1. Summary of Significant Accounting Policies Continued: Assets, Liabilities, and Equity Cash and Investments Investments included in cash and investments are stated at fair value (generally based on quoted market prices). For purposes of the Statement of Cash Flows, the city considers the proprietary funds’ cash and investments, 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. The city also has receivables outstanding for assessments on private property. These assessments include street and sidewalk improvements, sewer line installations and deferral of certain impact fees (system development charges). Proprietary fund receivables are recorded as revenue when earned, including services earned but not billed. The receivables of proprietary funds include billing for residential and commercial customers utilitizing the city’s water, sewer and storm water management services. Many of the city’s receivables, including property taxes, assessments and proprietary fund receivables are deemed to be substantially collectible. Tax and assessments receivable can be recovered through foreclosure on the subject property. Services can be disconnected if proprietary fund receivables remain unpaid. Accordingly, no allowance for doubtful accounts is deemed necessary for these receivables. Under State of Oregon statutes, municipal court receivables are valid for ten years and are then renewable for another ten years. According to city policy, these receivables are turned over to an external collection agency after approximately 180 days. Historical collection percentages average about 20 percent. Accordingly, municipal court receivables of $2.5 million have an allowance for doubtful accounts of $2.0 million. Of the remaining $0.5 million, approximately $0.2 million are being collected on behalf of the State of Oregon and Washington County, and are therefore shown as “Due to Others.” Accounts payable to vendors and contractors include general accounts payable, retainage payable, deposits payable and other accrued liabilities not included in short-term or long-term liabilities. Inventories Inventories of parts, materials and supplies are stated at cost on the first-in, first-out basis, in the proprietary funds. The consumption 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. Comprehensive Annual Financial Report 57 1. Summary of Significant Accounting Policies Continued: 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 Position 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, 2013, there were no governmental fund liabilities for accrued compensated absences. 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. 58 Comprehensive Annual Financial Report 1. Summary of Significant Accounting Policies Continued: 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 Position. 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 premiums and discounts on debt issuances are reported as other financing sources and uses, respectively. 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 non-spendable when the resources cannot be spent because they are either in a non-spendable form or legally or contractually required to be maintained intact. Resources in non-spendable 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. 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 non-spendable within the General Fund. This classification is also used to report any deficit fund balance amounts in other governmental funds. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the city considers restricted amounts to have been spent. Likewise, when an expenditure is incurred for purposes for which either committed or assigned fund balance is available, the city considers committed or assigned amounts to have been spent. Comprehensive Annual Financial Report 59 1. Summary of Significant Accounting Policies Continued: 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. 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. For GAAP presentation, the transfers from non-operating funds for services provided by the internal service funds and the General Fund are considered revenues and expenses/expenditures, as appropriate, but may be considered to be interfund transfers for budgetary purposes. 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 position 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. 60 Comprehensive Annual Financial Report 1. Summary of Significant Accounting Policies Continued: 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. 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, Water CIP Fund and Water Debt Service Fund. Additionally, the city reports a fiduciary fund type to account for the city’s Pension Trust Fund. NON-MAJOR GOvERNMENTAl FuNdS Other governmental funds include the following governmental fund types: Special Revenue funds account for restricted or committed revenues for specific purposes. debt Service funds account for the accumulation of resources to pay principal and interest on the city’s long-term obligations. Capital Projects funds account for the accumulation of resources for construction or acquisition of facilities and equipment. Comprehensive Annual Financial Report 61 2. 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, 2013: Primary Government Fiduciary Activities Cash on hand 4,502 0 Cash held by Department of Finance, Washington County 65,291 0 Deposits with financial institutions 18,152,697 5,656,033 Investments 131,311,089 14,435,573 Total Cash and investments 149,533,579 20,091,606 Deposits Deposits with financial institutions include bank demand deposits and time deposit accounts. The total bank balance is $23,842,785. Of these deposits, $500,000 was covered by federal depository insurance and $23,342,785 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 deposit insurance up to $250,000 for each institution. Institutions with deposits in excess of FDIC coverage participate in the Oregon Public Funds Collateralization Program (PFCP) as defined in Oregon Revised Statutes (ORS) 295. This provides additional protection for public funds in the event of a bank loss, although it does not guarantee 100 percent protection. The Office of the State Treasurer categorizes the financial institutions in Oregon. Based on that categorization, banks must pledge collateral valued at between 10 perecnt and 110 percent of their public fund deposits. 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 corporate bonds 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. 62 Comprehensive Annual Financial Report 2. Cash and Investments Continued: The city does have a provision in its investment policy that up to twenty percent of the portfolio can have maturities from 18–36 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, are held in safekeeping by the financial institution in the city’s 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. Value of pool shares approximates fair value. 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, 2013 is $20,091,606. This balance is not included in the government-wide or fund financial statements, but is shown separately on page 49. As of June 30, 2013, the city had the following investments: investment Type Fair value Cost % of Portfolio State Treasurer’s Local Governmental Investment Pool 62,068,978 62,068,978 47.27% Money Markets 5,865,919 5,865,919 4.47% U.S. Government Securities 49,630,810 50,373,471 37.80% Certificates of Deposit 247,000 247,000 0.19% Municipal Bonds 470,426 470,966 0.36% Corporate Bonds 13,027,956 13,373,313 9.92% Total investments 131,311,089 132,399,647 100.00% 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. Comprehensive Annual Financial Report 63 2. Cash and Investments Continued: At June 30, 2013, 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 62,068,978 0 0 62,068,978 Money Markets 5,865,919 0 0 5,865,919 U.S. Government Securities 49,630,810 49,630,810 0 0 Municipal Bonds 470,426 0 470,426 0 Certificates of Deposit 247,000 0 0 247,000 Corporate Bonds 13,027,956 13,027,956 0 0 Total 131,311,089 62,658,766 470,426 68,181,897 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, 2013, the concentration of those maturities included the Local Government Investment Pool, Money Markets, and investments with average maturities of twelve months or less at 94.00 percent of the total portfolio. Investments with maturities between 12–18 months made up 2.02 percent of the portfolio and investments with maturities between 18–36 months were 3.98 percent of the total portfolio. 3. 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– 20 years. Assessments bear interest from 5.2 to 9.4 percent. At June 30, 2013, the portion of the assessments receivable balance that represents delinquent accounts is insignificant. 64 Comprehensive Annual Financial Report 4. Capital Assets: Capital asset activity for governmental activities for the year ended June 30, 2013 was as follows: Balances June 30, 2012 Additions deletions Transfers Balances June 30, 2013 NON-dEPRECiABlE  Land 22,510,487 0 0 2,042,905 24,553,392  Construction in progress 1,503,582 4,132,096 0 (2,398,989)3,236,689 Total Non-depreciable 24,014,069 4,132,096 0 (356,084)27,790,081 deprecIaBle  Buildings and improvements 21,958,269 51,267 0 584,332 22,593,868  Land improvements 6,742,375 0 0 (538,895)6,203,480  Machinery and equipment 2,385,974 93,283 (84,099)0 2,395,158  Autos and trucks 2,596,549 199,580 (436,437)0 2,359,692  Office equipment 2,047,179 30,620 0 0 2,077,799  Infrastructure 221,515,203 1,669,613 0 310,647 223,495,463 Total depreciable 257,245,549 2,044,363 (520,536)356,084 259,125,460 accumulated deprecIatIon  Buildings and improvements (5,730,199)(771,921)0 0 (6,502,120)  Land improvements (5,552,524)(20,883)0 0 (5,573,407)  Machinery and equipment (1,882,805)(150,956)84,099 0 (1,949,662)  Autos and trucks (2,064,248)(155,034)397,549 0 (1,821,733)  Office equipment (1,060,267)(154,727)0 0 (1,214,994)  Infrastructure (59,255,379)(3,344,487)0 0 (62,599,866) Total Accumulated depreciation (75,545,422)(4,598,008)481,648 0 (79,661,782) Governmental Activities Capital Assets, Net 205,714,196 1,578,451 (38,888)0 207,253,759 Depreciation expense for governmental activities is charged to functions as follows: Community services 477,136 Public works 3,863,488 Community development 11,747 Policy and administration 245,637 Total depreciation for Governmental Activities 4,598,008 Comprehensive Annual Financial Report 65 4. Capital Assets Continued: Capital assets activity for business-type activities for the year ended June 30, 2013, was as follows: Balances June 30, 2012 Additions deletions Transfers Balances June 30, 2013 NON-dEPRECiABlE  Land 4,454,211 0 0 783,074 5,237,285  Land improvements 360,669 0 0 (360,669)0  Construction in progress 24,291,766 11,280,385 (2,428)(6,597,798)28,971,925 Total Non-depreciable 29,106,646 11,280,385 (2,428)(6,175,393)34,209,210 deprecIaBle  Buildings and improvements 2,010,974 0 0 0 2,010,974  Sewer system 23,917,022 0 0 47,793 23,964,815  Storm drainage system 16,557,104 0 0 374,434 16,931,538  Water system 55,415,508 0 0 5,753,166 61,168,674  Equipment 1,517,090 16,040 0 0 1,533,130  Auto and trucks 1,768,985 41,983 (16,585)0 1,794,383 Total depreciable 101,186,683 58,023 (16,585)6,175,393 107,403,514 accumulated deprecIatIon  Buildings and improvements (1,055,930)(47,260)0 0 (1,103,190)  Sewer system (8,859,197)(559,831)0 0 (9,419,028)  Storm drainage system (6,441,692)(436,218)0 0 (6,877,910)  Water system (24,810,754)(1,141,484)0 0 (25,952,238)  Equipment (1,771,428)(58,640)0 296,938 (1,533,130)  Auto and trucks (1,167,622)(38,908)16,585 (296,938)(1,486,883) Total Accumulated depreciation (44,106,623)(2,282,341)16,585 0 (46,372,379) Business-type Activities Capital Assets, Net 86,186,706 9,056,067 (2,428)0 95,240,345 Depreciation expense for business-type activities is charged to activities as follows: Sanitary sewer 654,045 Storm sewer 446,137 Water 1,182,159 Total depreciation for Business-type Activities 2,282,341 66 Comprehensive Annual Financial Report 5. Long-term Debt and Other Debt: Governmental Activities General Obligation Bonds Payable Bond transactions for the year ended June 30, 2013, and future maturities of bond principal, are as follows: library Bonds — In fiscal year 2010–2011 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. Interest rates on the new bonds range from 3 percent to 4 percent on specific maturities. Parks Bonds — In fiscal year 2010–2011 the city issued $17,000,000 of general obligation bonds. Funds were used to purchase and develop parks. Interest rates range from 3 percent to 4.75 percent on specific maturities. Transportation Bonds — In fiscal year 2009–2010 the city issued $7,250,000 of full faith and credit Build America Bonds. Funds were used for street improvements. Interest rate is 4.35 percent. Bonds payable transactions for the year are as follows: Original issue Outstanding July 1, 2012 Matured and Redeemed Outstanding June 30, 2013 Library bonds 8,655,000 8,145,000 625,000 7,520,000 Parks bonds 17,000,000 16,605,000 625,000 15,980,000 Transportation bonds 7,250,000 5,985,000 680,000 5,305,000 30,735,000 1,930,000 28,805,000 Unamortized bond premium 264,248 29,069,248 Due within one year 2,010,078 Due in more than one year 27,059,170 29,069,248 Future maturities of bond principal and interest are as follows: Fiscal year Ending June 30, 2013 Principal interest 2014 1,985,000 1,134,469 2015 2,045,000 1,065,236 2016 2,105,000 993,933 2017 2,165,000 920,560 218 2,235,000 845,043 2019–2023 9,775,000 2,937,000 2014–2028 4,955,000 1,511,400 2029–2031 3,540,000 341,525 Total 28,805,000 9,749,166 Comprehensive Annual Financial Report 67 5. Long-term Debt and Other Debt Continued: 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. Fiscal year due Amount due Paid and Called during year Outstanding June 30, 2013 Future interest 2013 62,500 (62,500)0 0 2014 457,983 0 457,983 36,262 2015 72,100 0 72,100 31,311 2016 77,400 0 77,400 25,989 2017 83,100 0 83,100 20,277 2018 89,200 0 89,200 14,142 2019–2020 123,956 0 123,956 8,715 Total 966,239 (62,500)903,739 136,696 68 Comprehensive Annual Financial Report 5. Long-term Debt and Other Debt Continued: Capital Lease: The city entered into a lease/purchase agreement in fiscal year 2012–2013 to purchase a piece of street equipment. This lease agreement qualifies as a capital lease for accounting purposes, and has been capitalized in accordance with accounting principles generally accepted in the United State of America. The asset was acquired at the purchase price of $71,091. The balance outstanding at June 30, 2013 is $58,074 and has an effective interest rate of 4.4 percent. Future minimum lease payments are as follows: Fiscal year Ending June 30 Principal interest 2014 13,592 2,564 2015 14,192 1,964 2016 14,818 1,337 2017 15,472 683 Total 58,074 6,548 Business-type Activities In fiscal year 2009–2010 the city was awarded $4,796,000 in federal funds under the American Recovery and Reinvestment Act (ARRA). These funds were distributed to the city as a loan, with 50 percent constituting an ARRA Forgivable Loan and 50 percent a low-interest loan under the Safe Drinking Water Revolving Loan Fund program. These ARRA funds were used to develop a city water reservoir. In fiscal year 2011–2012 the city drew down the funds that are considered the loan portion. Transactions for the year are as follows: Fiscal year due Amount due Paid and Called during year Outstanding June 30, 2013 Future interest 2013 104,514 (104,514)0 0 2014 92,379 0 92,379 68,805 2015 95,150 0 95,150 66,033 2016 98,005 0 98,005 63,179 2017 100,945 0 100,945 60,239 2018 103,973 0 103,973 57,210 2019–2023 568,567 0 568,567 237,349 2024–2028 659,125 0 659,125 146,791 2029–2032 575,342 0 575,342 42,613 Total 2,398,000 (104,514)2,293,486 742,219 Comprehensive Annual Financial Report 69 5. Long-term Debt and Other Debt Continued: Water Project Financing Water Revenue Bonds: In fiscal year 2011–2012 the city issued $97,720,000 of revenue bonds to be used to fund capital projects for the water system. The primary use of these bond proceeds will be to fund the Lake Oswego/Tigard Water Partnership project. City of Tigard’s City Council has authorized up to $160 million in bonds to be issued to fund this project. Principal payments are deferred until fiscal year 2016–2017, at which time the city anticipates having the new water source on line and fully operating. Revenue from the water system is pledged for repayment of these bonds. Interest rates on the bonds range from 3 percent to 5 percent on specific maturities. The bonds were sold at a premium for a total of $105,837,891. Future maturities of bond principal and interest are as follows: Fiscal year Ending June 30, 2013 Principal and Premium interest 2014 470,602 4,719,850 2015 470,602 4,719,850 2016 470,602 4,719,850 2017 2,254,664 4,691,800 2018 2,311,898 4,625,050 2019–2023 12,696,291 21,872,750 2024–2028 15,220,347 19,097,875 2029–2033 18,799,773 15,201,375 2034–2038 23,383,181 10,198,250 2039–2043 29,289,329 3,774,375 Total 105,367,289 93,621,025 Other Long-term Obligations: Accrued compensated absences and applicable changes during the year ended June 30, 2013 are as follows: Balances June 30, 2012 Additions Retirements Balances June 30, 2013 due in one year GOvERNMENTAl ACTiviTiES  Compensated absences 1,226,179 1,386,448 (1,445,674)1,166,953 509,394 BuSiNESS-TyPE ACTiviTiES  Compensated absences 102,847 469,574 (459,332)113,089 28,272 Expenditures for liquidating compensated absences liabilities are recorded in General, Special Revenue and Internal Service Funds. 70 Comprehensive Annual Financial Report 6. Transfers: Interfund transfers are used to provide funds for debt service, contribute toward the cost of capital projects and provide operational resources. Transfers for fiscal year ended June 30, 2013 are as follows: Governmental Activities Business- type Activities Total Transfers Out General Gas Tax Non-major Funds internal Service Water GOvERNMENTAl ACTiviTiES  General 0 0 195,188 15,506 99,390 310,084  Gas Tax 0 0 508,418 0 0 508,418  Non-major funds 56,807 100,000 3,749,846 106,038 49,610 4,062,301 BuSiNESS-TyPE ACTiviTiES  Sewer 0 0 22,971 0 13,416 36,384  Storm water 0 0 64,873 15,846 17,878 98,597  Water 0 0 37,516 128,021 0 165,537 Total Transfers in 56,807 100,000 4,578,812 265,411 180,291 5,181,321 reconcIlIatIon Transferred to governmental funds from  Sewer fund 22,971  Stormwater fund 80,719  Water fund 165,537 Transferred to governmental fundsto enterprise funds  From general fund to water fund (99,390)  From non-major funds to water fund (49,610) Total Transfers per Statement of Activities 120,227 These transfers have been eliminated in the government-wide statement of activities other than the net effect between governmental activities and business-type activities. 7. 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. Comprehensive Annual Financial Report 71 7. Other Post-Employment Benefits (OPEB) Continued: 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, 2012, three retirees and nine spouses were participating in the plan. The premium rates are established each year through negotiation with the various insurance carriers. 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 represents 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)345,000 Interest on prior year net OPEB contribution 37,287 Adjustment to ARC (63,350) Annual OPEB Cost 318,937 Implicit benefit payments (79,722) increase in Net OPEB Obligation 239,215 Net OPEB Obligation – Beginning of the year 932,180 Net OPEB Obligation – End of the year 1,171,395 The city’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for FY 2012–13, 2011–12 and 2010–11 were as follows: Fiscal year Ended Annual OPEB Cost % of Annual OPEB Cost Contributions Net OPEB Obligation 6/30/2011 342,509 30%707,966 6/30/2012 301,167 26%932,180 6/30/2013 318,937 25%1,171,395 72 Comprehensive Annual Financial Report 7. Other Post-Employment Benefits (OPEB) Continued: Funding Status and Funding Progress As of August 1, 2012, 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 $1,844,990 and also equaled the unfunded actuarial liability (UAAL). Schedule of Funding Progress: Actuarial valuation date Actuarial value of Plan Assets Actuarial Accrued liability unfunded liability (uAAl) Funded Ratio Covered Payroll uAAl as a Percent of Payroll 8/1/2006 0 1,678,262 1,678,262 0%14,077,852 11.9% 8/1/2008 0 1,725,443 1,725,443 0%16,248,354 10.6% 8/1/2010 0 1,824,386 1,824,386 0%17,783,627 10.3% 8/1/2012 0 1,844,990 1,844,990 0%17,803,391 10.4% 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. 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, 2012 valuation, the projected unit credit cost method was used. The investment return for the city was assumed to be 3.5 percent 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 7.25 percent in the first year, 6.5 percent in the second year, 6.0 percent in the third year, 5.75 perecent for years four through six, 6.0 percent for year seven, 6.5 percent for year eight, 6.75 percent for years 9–13; 6.5 perecnt for years 14–21; 6.25 percent for year 22, 6 percent for years 23–26, 5.75 percent for years 27–34 and 5.5 percent thereafter. Dental premium increases were assumed to be 5.25 percent per year. The UAAL is being amortized as a level percentage of payroll over a rolling period of 15 years. A general inflation rate of 2.75 percent per year was used to develop other economic assumptions. Comprehensive Annual Financial Report 73 8. 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 post-employment 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. Funding Policy. Because RHIA was creased 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 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 0.59 percent of annual covered payroll for Tier 1/Tier 2, and 0.50 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 30 years. The city’s contributions to RHIA for the years ended June 30, 2013 and 2012, were included with contributions to PERS for pension costs. 74 Comprehensive Annual Financial Report 9. Retirement Plans: The city contributes to retirement plans on behalf of all eligible employees. At June 30, 2013, 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) Plan Description The city contributes to two pension plans administered by the Oregon Public Employees Retirement System (OPERS). The Oregon Public Employees Retirement Fund applies to the city’s contribution for qualifying emloyees who were hired before August 29, 2003, and is a cost-sharing multiple-employer defined benefit pension plan. The Oregon Public Service Retirement Plan (OSPSRP) is a hybrid successor plan to the OPERF and consists of two programs: The Pension Program, the defined benefit portion of the plan, applies to sworn police officers hired after August 29, 2003. Benefits are calculated by a formula for members who attain normal retirement age. The formula takes into account final average salary and years of service. As of January 1, 2004, all PERS member contributions go into the Individual Account Program (IAP), the defined contribution portion of the plan. PERS members retain their existing PERS accounts, but any future member contributions are deposited into the member’s IAP, not the member’s PERS account. Both PERS plans provide retirement and disability benefits, post employment healthcare benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. PERS is administered under Oregon Revised Statute Chapter 238, which establishes the Public Employees Retirement Board as the governing body of PERS. PERS issues a publicly-available financial report that includes financial statements and required supplementary information. This report may be obtained by writing to PERS, PO Box 23700, Tigard, OR 97281-3700 or by calling (503) 598-7377. Funding Policy Members of PERS are required to contribute 6 percent of their salary covered under the plan, which is invested in the OPSRP Individual Account Program. The employer is allowed to pay any or all of the employees’ contribution in addition to the required employer’s contribution. For the fiscal year ended June 30, 2013, the city contributed all of the 6 percent contribution on behalf of the employees covered under PERS. The city is required under ORS 238.225 to contribute at an actuarially-determined rate for the qualifying employees under the OPSRP plan, and a general service rate for the qualifying employees under the OPSRP plan. The PERS and the OPSRP rates in effect for the fiscal year ended June 30, 2013 were 14.65 percent and 8.18 percent respectively. The contribution requirements for plan members are established by ORS Chapter 238 and may be amended by an act of the Oregon Legislature. Comprehensive Annual Financial Report 75 9. Retirement Plans Continued: Annual Pension Cost The city’s contributions to PERS for the years ending June 30, 2013, 2012 and 2011 were $1,049,123, $1,040,634 and $823,698 respectively, which equaled the required contribution for each of these years. 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. 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 $1,251,188 for the year ended June 30, 2013. 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. 10. Transactions with Clean Water Services of Washington County: The city collects charges for treatment of city sewage and storm water 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, 3.98 percent of sewer connection charges collected and 75 percent of stormwater service charges collected, in accordance with an agreement between the city and Clean Water Services. Payments of $10,209,851 were made to Clean Water Services during fiscal year 2013 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 Position. Revenues are reported net because the city acts in a fiduciary capacity on behalf of Clean Water Services. 76 Comprehensive Annual Financial Report 11. 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. 12. Commitments: The city had several contracts outstanding at year-end. Many of these contracts are recurring services or providers of supplies. These contracts may be terminated at any time without cause provided the contractually-required notification is provided. The biggest commitment at year-end was an intergovernmental agreement with the City of Lake Oswego for the Lake Oswego/Tigard Water Partnership. The city’s share of the project is currently estimated at approximately $132 million. As stated in Note 5, the city issued $97.7 million in revenue bonds during fiscal year 2012 to partially fund the project. Additional bonds will likely be issued in the future. This is a multi-year project that is anticipated to be complete in fiscal year 2016. The only other significant commitment outstanding at year-end was a contract in the amount of $463,500 with Otak for consulting services regarding the River Terrace Community Plan. The contract was awarded to Otak on June 25, 2013 and the full amount was outstanding at June 30, 2013. Comprehensive Annual Financial Report 77 Required Supplementary Information Comprehensive Annual Financial Report 79 GENERAl FuNd — SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl for the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Taxes 12,726,427 12,726,427 12,787,066 60,639  Licenses and permits 882,300 922,048 1,274,860 352,812  Intergovernmental revenue 5,589,661 5,805,652 5,890,582 84,930  Charges for services 3,142,995 3,142,995 2,465,989 (677,066)  Fines and forfeitures 1,063,126 1,069,126 918,761 (150,365)  Franchise fees 4,966,611 4,966,611 5,724,192 757,581  Interest earnings 103,722 103,722 99,825 (3,897)  Miscellaneous 24,655 24,655 80,760 56,105 Total Revenues 28,499,497 28,761,236 29,242,035 480,799 expendItureS  Community services 19,922,675 19,986,235 18,636,382 1,349,853  Public works 5,079,096 5,164,603 4,662,773 501,830  Community development 2,958,240 3,099,740 2,667,927 431,813  Policy and administration 748,857 757,357 711,385 45,972 Total Expenditures 28,708,868 29,007,935 26,678,467 2,329,468 Changes in Fund Balance Before Other Financing Sources (uses)(209,371)(246,699)2,563,568 2,810,267 OTHER FiNANCiNG SOuRCES (uSES)  Operating transfer in 70,000 70,000 56,807 (13,193)  Interfund loan (80,000)(80,000)(80,000)0  Repayment of interfund loan 280,000 280,000 230,537 (49,463)  Operating transfer out (623,264)(630,659)(310,084)320,575 Total Other Financing Sources (uses)(353,264)(360,659)(102,740)257,919 Contingency (1,000,000)(963,575)0 963,575 Changes in fund balance (1,562,635)(1,570,933)2,460,828 4,031,761 Reserve for future expenditure (4,758,724)(4,770,426)0 4,770,426 Fund Balance – Beginning of year 6,321,359 6,341,359 7,250,005 908,646 Fund Balance – End of year 0 0 9,710,833 9,710,833 Interfund loans are treated as transfers on a budgetary basis and as receivables on a GAAP basis 449,844 Fund Balance – GAAP Basis 10,160,677 80 Comprehensive Annual Financial Report GAS TA x FuNd — SCHEdulE OF RE vENuES ANd E xPENdiT uRES: BudGET ANd ACTuAl for the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Grants 600,000 600,000 0 (600,000)  State gas tax 2,826,073 2,826,073 2,656,702 (169,371)  County gas tax 195,487 195,487 178,664 (16,823)  Licenses and permits 2,602 2,602 214 (2,388)  Interest earnings 55,732 55,732 43,011 (12,721)  Miscellaneous 59,700 59,700 74,174 14,474 Total Revenues 3,739,594 3,739,594 2,952,765 (786,829) expendItureS  Public works 2,204,010 2,229,010 1,960,298 268,712  Debt service 615,928 615,928 615,928 0 Total Expenditures 2,819,938 2,844,938 2,576,226 268,712 Changes in Fund Balance Before Other Financing Sources (uses)919,656 894,656 376,539 (518,117) OTHER FiNANCiNG SOuRCES (uSES)  Operating transfer in 100,000 100,000 100,000 0  Operating transfer out (2,232,133)(2,290,163)(508,418)1,781,745  Capital lease proceeds 0 0 71,091 71,091  Repayment of interfund loan 0 0 48,059 48,059 Total Other Financing Sources (uses)(2,132,133)(2,190,163)(289,268)1,900,895 Contingency (300,000)(251,970)0 251,970 Changes in fund balance (1,512,477)(1,547,477)87,271 1,634,748 Reserve for future expenditure (142,727)(142,727)0 142,727 Fund Balance – Beginning of year 1,655,204 1,690,204 1,572,667 (117,537) Fund Balance – End of year 0 0 1,659,938 1,659,938 Interfund loans are treated as transfers on a budgetary basis and as receivables on a GAAP basis 151,941 Fund Balance – GAAP Basis 1,811,879 Comprehensive Annual Financial Report 81 NOTES TO REQuiREd SuPPlEMENTAl iNFORMATiON — BudGET TO GAAP RECONCiliATiON for the year ended June 30, 2013 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 Fund Gas Tax Fund Net change in fund balance – budget basis 2,460,828 87,271 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.   Repayment (230,537)(48,059)   Additional loan 80,000 0 Net Change in Fund Balance –GAAP Basis 2,310,291 39,212 Comprehensive Annual Financial Report 83 Other Supplementary Information Comprehensive Annual Financial Report 85 COMBiNiNG BAl ANCE SHEET — NON-MAJOR GOvERNMENTAl FuNdS June 30, 2013 Special Revenue Funds debt Service Funds Capital Project Funds Total aSSetS  Cash and investments 5,675,004 1,547,883 11,519,735 18,742,622  Accounts receivable 139,613 0 418,708 558,321  Property taxes receivable 0 105,497 0 105,497  Interest receivable 0 129 0 129  Assessment liens receivable 0 792,012 42,813 834,825  Prepaid expenses 11,315 0 0 11,315 Total Assets 5,825,932 2,445,521 11,981,256 20,252,709 lIaBIlItIeS  Accounts payable 240,842 0 471,496 712,338  Accrued debt service 0 12,800 0 12,800  Customer deposits 396,694 0 0 396,694  Due to other governments 18,131 0 0 18,131  Due to other funds 0 0 801,785 801,785  Unavailable revenue – property taxes 0 94,138 0 94,138  Unavailable revenue –grants 0 0 163,373 163,373  Unavailable revenue – assessment liens 105 782,842 58,618 841,565  Unearned revenue 59,660 0 0 59,660 Total liabilities 715,432 889,780 1,495,272 3,100,484 Fund BalanceS Non-spendable:  Prepaid expense 11,315 0 0 11,315 Restricted for:  Street maintenance and improvements 0 0 2,735,132 2,735,132  Debt service 0 1,555,741 0 1,555,741  Park improvements 0 0 5,890,185 5,890,185  Underground utilities 0 0 567,555 567,555  Building inspection 1,702,827 0 0 1,702,827  Police services 125,488 0 0 125,488  Library improvements 474,648 0 0 474,648 Committed for:  Street maintenance and improvements 1,547,753 0 1,224,213 2,771,966  Urban forestry 1,248,469 0 0 1,248,469 Assigned to:  City facilities 0 0 670,223 670,223 Unassigned 0 0 (601,324)(601,324) Total Fund Balances 5,110,500 1,555,741 10,485,984 17,152,225 Total liabilities and Fund Balances 5,825,932 2,445,521 11,981,256 20,252,709 86 Comprehensive Annual Financial Report COMBiNiNG STATEMENT OF REvENuES, E xPENdiTuRES ANd CHANGES iN FuNd BAl ANCES — NON-MAJOR GOvERNMENTAl FuNdS For the year ended June 30, 2013 Special Revenue Funds debt Service Funds Capital Project Funds Total revenueS  Taxes 0 2,585,821 0 2,585,821  City gas tax 830,031 0 0 830,031  Special assessments 0 43,170 0 43,170  Licenses and permits 1,900,044 0 0 1,900,044  Intergovernmental revenues 19,250 0 131,154 150,404  Charges for services 106,250 0 4,060,540 4,166,790  Fines and forfeitures 120,187 0 0 120,187  Interest earnings 14,778 56,549 40,073 111,400  Miscellaneous revenues 48,433 0 3,076 51,509 Total Revenues 3,038,973 2,685,540 4,234,843 9,959,356 expendItureS  Community development 1,269,162 0 0 1,269,162  Debt service 324,420 2,595,544 0 2,919,964  Capital outlay 0 0 6,357,256 6,357,256 Total Expenditures 1,593,582 2,595,544 6,357,256 10,546,382 Changes in Fund Balance before other Financing Sources (uses)1,445,391 89,996 (2,122,413)(587,026) OTHER FiNANC iNG SOuRCES (uSES)  Operating transfer in 200,000 0 4,378,812 4,578,812  Operating transfer out (298,977)(792)(3,762,532)(4,062,301)  Resources provided by other funds 0 0 278,597 278,597 Total Other Financing Sources (uses)(98,977)(792)894,877 795,108 Changes in Fund Balance 1,346,414 89,204 (1,227,536)208,082 Fund Balance – Beginning of year 3,764,086 1,466,537 11,713,520 16,944,143 Fund Balance – End of year 5,110,500 1,555,741 10,485,984 17,152,225 Comprehensive Annual Financial Report 87 Special Revenue Funds The balance sheet and statement of revenues, expenditures and changes in fund balance of the non-major special revenue funds are reported in the combining governmental fund statements. Fund statements for the major special revenue funds are reporting in 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. Non-major 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 right-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. Comprehensive Annual Financial Report 89 NON-MAJOR SPECiAl RE vENuE FuNdS — COMBiNiNG BAlANCE SHEET For the year ended June 30, 2013 City Gas Tax Fund Electrical inspection Fund Building Fund Criminal Forfeiture Fund urban Forestry Fund library Fund Total aSSetS  Cash and investments 1,415,548 153,896 1,835,779 143,008 1,592,536 534,237 5,675,004  Accounts receivable 132,205 25 6,672 8 632 71 139,613  Prepaid expense 0 0 11,315 0 0 0 11,315 Total Assets 1,547,753 153,921 1,853,766 143,016 1,593,168 534,308 5,825,932 lIaBIlItIeS  Accounts payable 0 0 240,842 0 0 0 240,842  Unavailable revenue – Assessments 0 0 105 0 0 0 105  Unearned revenue 0 0 0 0 0 59,660 59,660  Due to other governments 0 603 0 17,528 0 0 18,131  Customer deposits 0 25,304 26,691 0 344,699 0 396,694 Total liabilities 0 25,907 267,638 17,528 344,699 59,660 715,432 Fund Balance Non-spendable:  Prepaid expense 0 0 11,315 0 0 0 11,315 Restricted for:  Building inspection 0 128,014 1,574,813 0 0 0 1,702,827  Police services 0 0 0 125,488 0 0 125,488  Library improvements 0 0 0 0 0 474,648 474,648 Committed for:  Street maintenance & improvements 1,547,753 0 0 0 0 0 1,547,753  Urban forestry 0 0 0 0 1,248,469 0 1,248,469 Total Fund Balances 1,547,753 128,014 1,586,128 125,488 1,248,469 474,648 5,110,500 Total liabilities and Fund Balances 1,547,753 153,921 1,853,766 143,016 1,593,168 534,308 5,825,932 90 Comprehensive Annual Financial Report NON-MAJOR SPECiAl RE vENuE FuNdS — COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the year ended June 30, 2013 City Gas Tax Fund Electrical inspection Fund Building Fund Criminal Forfeiture Fund urban Forestry Fund library Fund Total revenueS  City gas tax 830,031 0 0 0 0 0 830,031  Licenses and permits 0 205,755 1,694,289 0 0 0 1,900,044  Intergovernmental 0 0 19,250 0 0 0 19,250  Fines and forfeitures 0 0 0 120,187 0 0 120,187  Tree replacement revenue 0 0 0 0 106,250 0 106,250  Miscellaneous revenue 31,421 0 8,059 8,953 0 0 48,433  Interest earnings 10,601 92 286 31 3,518 250 14,778 Total Revenues 872,053 205,847 1,721,884 129,171 109,768 250 3,038,973 expendItureS  Community development 0 0 1,269,162 0 0 0 1,269,162  Debt service payments 324,420 0 0 0 0 0 324,420 Total Expenditures 324,420 0 1,269,162 0 0 0 1,593,582 Changes in Fund Balance before other Financing Sources (uses)547,633 205,847 452,722 129,171 109,768 250 1,445,391 OTHER FiNANCiNG SOuRCES (uSES)  Operating transfer in 0 0 200,000 0 0 0 200,000  Operating transfer out (3,042)(202,630)0 (56,807)(36,498)0 (298,977) Total Other Financing Sources (uses)(3,042)(202,630)200,000 (56,807)(36,498)0 (98,977) Changes in Fund Balance 544,591 3,217 652,722 72,364 73,270 250 1,346,414 Fund Balance – Beginning of year 1,003,162 124,797 933,406 53,124 1,175,199 474,398 3,764,086 Fund Balance – End of year 1,547,753 128,014 1,586,128 125,488 1,248,469 474,648 5,110,500 Comprehensive Annual Financial Report 91 CiT y GAS TA x FuNd — SCHEDULE OF REVENUES AND EXPENDITURES: BUDGET AND ACTUAL For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  City gas tax 699,881 699,881 830,031 130,150  State grants 31,421 31,421 0 (31,421)  Recovered expenditures 31,421 31,421 31,421 0  Interest earnings 34,584 34,584 10,601 (23,983) Total Revenues 797,307 797,307 872,053 74,746 expendItureS  Debt service payments 324,420 324,420 324,420 0 Changes in Fund Balance Before Other Financing Sources (uses)472,887 472,887 547,633 74,746 OTHER FiNANCiNG SOuRCES (uSES)  Operating transfer out (3,271)(3,271)(3,042)229  Contingency (50,000)(50,000)0 50,000  Reserve for future expenditure (1,314,591)(1,314,591)0 1,314,591 Total Other Financing Sources (uses)(1,367,862)(1,367,862)(3,042)1,364,820 Changes in fund balance (894,975)(894,975)544,591 1,439,566 Fund Balance – Beginning of year 894,975 894,975 1,003,162 108,187 Fund Balance – End of year 0 0 1,547,753 1,547,753 92 Comprehensive Annual Financial Report El ECTRiCAl iNSPECT iON FuNd — SCHEDULE OF REVENUES AND EXPENDITURES: BUDGET AND ACTUAL For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Licenses and permits 167,037 167,037 205,755 38,718  Interest earnings 1,207 1,207 92 (1,115) Total Revenues 168,244 168,244 205,847 37,603 OTHER FiNANCiNG (uSES)  Operating transfer out (202,827)(202,827)(202,630)197  Contingency (50,000)(50,000)0 50,000  Reserve for future expenditure (28,183)(28,183)0 28,183 Total Other Financing (uses)(281,010)(281,010)(202,630)78,380 Changes in fund balance (112,766)(112,766)3,217 115,983 Fund Balance – Beginning of year 112,766 112,766 124,797 12,031 Fund Balance – End of year 0 0 128,014 128,014 Comprehensive Annual Financial Report 93 BuildiNG FuNd — SCHEDULE OF REVENUES AND EXPENDITURES: BUDGET AND ACTUAL For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Licenses and permits 986,974 1,036,974 1,694,289 657,315  Intergovernmental 8,281 8,281 19,250 10,969  Miscellaneous 11,993 11,993 8,059 (3,935)  Interest earnings 19,782 19,782 286 (19,496) Total Revenues 1,027,030 1,077,030 1,721,884 644,854 expendItureS  Community development 1,266,424 1,316,424 1,269,162 47,262 Changes in Fund Balance Before Other Financing Sources (uses)(239,394)(239,394)452,722 692,116 OTHER FiNANCiNG SOuRCES (uSES)  Operating transfer in 200,000 200,000 200,000 0  Contingency (200,000)(200,000)0 200,000  Reserve for future expenditure (363,519)(363,519)0 363,519 Total Other Financing Sources (uses)(363,519)(363,519)200,000 563,519 Changes in fund balance (602,913)(602,913)652,722 1,255,635 Fund Balance – Beginning of year 602,913 602,913 933,406 330,493 Fund Balance – End of year 0 0 1,586,128 1,586,128 94 Comprehensive Annual Financial Report CRiMiNAl FORFEiTuRE FuNd — SCHEDULE OF REVENUES AND EXPENDITURES: BUDGET AND ACTUAL For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Interest earnings 1,892 1,892 31 (1,861)  Forfeitures 10,600 10,600 120,187 109,587  Miscellaneous 0 0 8,953 8,953 Total Revenues 12,492 12,492 129,171 116,679 OTHER FiNANCiNG (uSES)  Operating transfer out (70,000)(70,000)(56,807)13,193  Reserve for future expenditure (12,492)(12,492)0 12,492 Changes in fund balance (70,000)(70,000)72,364 142,364 Fund Balance – Beginning of year 70,000 70,000 53,124 (16,876) Fund Balance – End of year 0 0 125,488 125,488 Comprehensive Annual Financial Report 95 uRBAN FORESTRy FuNd — SCHEDULE OF REVENUES AND EXPENDITURES: BUDGET AND ACTUAL For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Tree replacement revenue 25,000 25,000 106,250 81,250  Interest earnings 4,060 4,060 3,518 (542) Total Revenues 29,060 29,060 109,768 80,708 OTHER FiNANCiNG (uSES)  Operating transfer out (152,710)(152,710)(36,498)116,212  Reserve for future expenditure (1,042,226)(1,042,226)0 1,042,226 Changes in fund balance (1,165,876 (1,165,876)73,270 1,239,146 Fund Balance – Beginning of year 1,165,876 1,165,876 1,175,199 9,323 Fund Balance – End of year 0 0 1,248,469 1,248,469 96 Comprehensive Annual Financial Report liBRARy FuNd — SCHEDULE OF REVENUES AND EXPENDITURES: BUDGET AND ACTUAL For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Interest earnings 0 0 250 250 OTHER FiNANCiNG (uSES)  Operating transfer out (100,000)(100,000)0 100,000  Reserve for future expenditure (276,042)(276,045)0 276,045 Changes in fund balance (376,045)(376,045)250 376,295 Fund Balance – Beginning of year 376,045 376,045 474,398 98,353 Fund Balance – End of year 0 0 474,648 474,648 Comprehensive Annual Financial Report 97 Debt Service Funds The balance sheet and statement of revenues, expenditures and changes in fund balance of the non-major debt service fund is reported in the combining non-major governmental fund statements. Fund statements for the major debt service fund are reporting in basic financial statements. Schedules of revenues, expenditures and changes in fund balance — budget and actual — are also presented here for each debt service fund. Non-major Debt Service Fund: 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 benefitted property, interest and contributions from other funds for their share of costs. 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 bong principal and interest. The source of revenue is from property taxes and interest earnings. Comprehensive Annual Financial Report 99 NON-MAJOR dEBT SERviCE FuNdS — COMBiNiNG BAlANCE SHEET For the year ended June 30, 2013 Bancroft Bond debt Service Fund General Obligation debt Service Fund urban Renewal Agency debt Service Fund Total aSSetS  Cash and investments 327,055 384,777 836,051 1,547,883  Property taxes receivable 0 91,380 14,117 105,497  Interest receivable 48 0 81 129  Assessment liens receivable 792,012 0 0 792,012 Total Assets 1,119,115 476,157 850,249 2,445,521 lIaBIlItIeS  Accrued debt service 12,800 0 0 12,800 Unavailable revenue:  Assessment liens 782,842 0 0 782,842  Property taxes 0 81,400 12,738 94,138 Total liabilities 795,642 81,400 12,738 889,780 Fund Balance Restricted for debt Service 323,473 394,757 837,511 1,555,741 Total liabilities and Fund Balances 1,119,115 476,157 850,249 2,445,521 100 Comprehensive Annual Financial Report NON-MAJOR dEBT SERviCE FuNdS — COMBiNiNG STATEMENT OF REvENuES, ExPENdiTuRES ANd CHANGES iN FuNd BAlANCE For the year ended June 30, 2013 Bancroft Bond debt Service Fund General Obligation debt Service Fund urban Renewal Agency debt Service Fund Total revenueS  Taxes 0 2,293,825 291,996 2,585,821  Collection of bonded assessments 43,170 0 0 43,170  Interest earnings 32,516 19,810 4,223 56,549 Total Assets 75,686 2,313,635 296,219 2,685,540 expendItureS  Debt service 118,888 2,191,500 285,156 2,595,544 Changes in Fund Balance before other Financing Sources (uses)(43,202)122,135 11,063 89,996 OTHER FiNANCi NG SOuRCES (uSES)  Transfers out (792)0 0 (792) Change in Fund Balance (43,994)122,135 11,063 89,204 Fund Balance – Beginning of year 367,467 272,622 826,448 1,466,537 Fund Balance – End of year 323,473 394,757 837,511 1,555,741 Comprehensive Annual Financial Report 101 BANCROFT BONd dEBT SERviCE FuNd — SCHEdulE OF RE vENuES ANd E xPENdiT uRES: BudGET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Collection of bonded assessment 120,000 120,000 43,170 (76,830)  Interest earnings 37,468 37,468 32,516 (4,952) Total Assets 157,468 157,468 75,686 (81,782) expendItureS  Debt service 118,621 118,621 118,888 (267) Changes in Fund Balance before other Financing Sources (uses)38,847 38,847 (43,202)(82,049) OTHER FiNANCiNG SOuRCES (uSES)  Operating transfers out (852)(852)(792)60  Reserve for future expenditure (400,528)(400,528)0 400,528 Changes in fund balance (362,533)(362,533)(43,994)318,539 Fund Balance – Beginning of year 362,533 362,533 367,467 4,934 Fund Balance – End of year 0 0 323,473 323,473 102 Comprehensive Annual Financial Report GENERAl OBliGATiON dEBT SERviCE FuNd — SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Taxes 2,264,561 2,264,561 2,293,825 29,264  Interest earnings 4,612 4,612 19,810 15,198 Total Assets 2,269,173 2,269,173 2,313,635 44,462 expendItureS  Debt service 2,191,504 2,191,504 2,191,500 4  Reserve for future expenditure 386,829 386,829 0 386,829 Changes in fund balance (309,160)(309,160)122,135 431,295 Fund Balance – Beginning of year 309,160 309,160 272,622 (36,538) Fund Balance – End of year 0 0 394,757 394,757 Comprehensive Annual Financial Report 103 uRBAN RENEWAl AGENC y dEBT SERviCE FuNd — SCHEdulE OF RE vENuES ANd E xPENdiT uRES: BudGET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Property taxes 330,000 330,000 291,996 (38,004)  Interest earnings 2,000 2,000 4,223 2,223 Total Assets 332,000 332,000 296,219 (35,781) expendItureS  Debt service 450,000 450,000 285,156 164,844  Reserve for future expenditure 202,000 202,000 0 202,000 Changes in fund balance (320,000)(320,000)11,063 331,063 Fund Balance – Beginning of year 320,000 320,000 826,448 506,448 Fund Balance – End of year 0 0 837,511 837,511 Comprehensive Annual Financial Report 105 Capital Project Funds Combining statements for all individual non-major projects funds are reported here. The combined totals are reported in the combining non-major 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. Non-major Capital Projects Funds: Facility Fund – This fund accounts for monies set aside for future major city facility improvements. Transportation development – This fund accounts for traffic impact fees collected on roads withing the city’s urban service areas. This fund replaced TIF starting July 1, 2009. Traffic impact Fee Fund – This fund accounts for traffic impact fees collected on roads within the city’s urban service areas. Funds will be used for highways and transit capital improvements approved in the city’s Capital Improvement Plan (CIP). This fund was closed 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 Capital Fund – This fund accounts for system development charges for major improvements to recreational facilities within the city. Parks Bond Fund – This fund was created after voters approved a $17 million parks bond for purchase of land and green spaces to be used for parks. 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. Transportation Capital – This fund was established in FY 2011–12 to track all capital improvement projects that are funded with transportation revenues; including Gas Tax, Traffic Impact Fees and Transportation Development Tax. urban Renewal Agency – This fund was established in FY 2007–08 for the creation of a new urban renewal agency to 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. Tax Fund improvement Fund Capital Projects Fund Comprehensive Annual Financial Report 107 CAPiTAl PROJECTS FuNdS — COMBiNiNG BAlANCE SHEET For the year ended June 30, 2013 Facility Fund Transportation development Tax Fund Traffic impact Fee Fund underground utility Fund Street Maintenance Fee Fund Parks Capital Fund Parks Bond Fund Parks SdC Fund Transportation Capital improvement Fund urban Renewal Agency Capital Projects Fund Total aSSetS  Cash and investments 675,452 1,831,055 830,662 567,289 997,407 323,803 3,915,258 1,958,590 129,188 291,031 11,519,735  Accounts receivable 288 396 0 266 227,510 26,168 0 707 163,373 0 418,708  Assessments liens receivable 0 0 42,813 0 0 0 0 0 0 0 42,813 Total Assets 675,740 1,831,451 873,475 567,555 1,224,917 349,971 3,915,258 1,959,297 292,561 291,031 11,981,256 lIaBIlItIeS  Accounts payable and accrued liabilities 5,517 0 0 0 704 318,086 0 0 56,619 90,570 471,496  Unavailable revenue – Grants 0 0 0 0 0 0 0 0 163,373 0 163,373  Unavailable revenue – Assessments 0 0 42,363 0 0 16,255 0 0 0 0 58,618  Interfund loans 0 0 0 0 0 0 0 0 0 801,785 801,785 Total liabilities 5,517 0 42,363 0 704 334,341 0 0 219,992 892,355 1,495,272 Fund Balance Restricted for:  Street maintenance and improvements 0 1,831,451 831,112 0 0 0 0 0 72,569 0 2,735,132  Park improvements 0 0 0 0 0 15,630 3,915,258 1,959,297 0 0 5,890,185  Underground utilities 0 0 0 567,555 0 0 0 0 0 0 567,555 Committed for:  Street maintenance & improvements 0 0 0 0 1,224,213 0 0 0 0 0 1,224,213 Assigned to:  City facilities 670,223 0 0 0 0 0 0 0 0 0 670,223 Unassigned 0 0 0 0 0 0 0 0 0 (601,324)(601,324) Total Fund Balances (deficit)670,223 1,831,451 831,112 567,555 1,224,213 15,630 3,915,258 1,959,297 72,569 (601,324)10,485,984 Total liabilities and Fund Balances 675,740 1,831,451 873,475 567,555 1,224,917 349,971 3,915,258 1,959,297 292,561 291,031 11,981,256 108 Comprehensive Annual Financial Report NON-MAJOR SPECiAl RE vENuE FuNdS — COMBiNiNG STATEMENT OF REvENuES, ExPENdiTuRE ANd CHANGES iN FuNd BAlANCE For the year ended June 30, 2013 Facility Fund Transportation development Tax Fund Traffic impact Fee Fund underground utility Fund Street Maintenance Fee Fund Parks Capital Fund Parks Bond Fund Parks SdC Fund Transportation Capital improvement Fund urban Renewal Agency Capital Projects Fund Total revenueS  Charges for services 0 1,101,901 2,592 33,880 2,016,133 0 0 906,034 0 0 4,060,540  Intergovernmental 0 0 0 0 0 40,102 0 0 91,052 0 131,154  Interest earnings 1,076 2,659 2,441 1,271 266 47 27,444 4,772 0 97 40,073  Miscellaneous revenues 0 0 0 0 1,274 0 0 0 0 1,803 3,076 Total Revenues 1,076 1,104,560 5,033 35,151 2,017,673 40,149 27,444 910,806 91,052 1,899 4,234,843 expendItureS  Capital projects 71,528 0 0 0 1,654,509 3,359,440 0 0 888,069 383,710 6,357,256 Changes in Fund Balance before Other Financing Sources (70,452)1,104,560 5,033 35,151 363,164 (3,319,291)27,444 910,806 (797,017)(381,811)(2,122,413) OTHER FiNANCiNG SOuRCES (uSES)  Transfers in 319,572 0 0 0 0 3,281,987 0 0 777,253 0 4,378,812  Transfers out (7,720)(224,158)(59,236)(151)(177,900)0 (2,015,585)(1,277,782)0 0 (3,762,532)  Resources provided by other funds 0 0 0 0 0 0 0 0 0 278,597 278,597 Total Other Financing Sources (uses)311,852 (224,158)(59,236)(151)(177,900)3,281,987 (2,015,585)(1,277,782)777,253 278,597 894,877 Changes in fund balance 241,400 880,402 (54,203)35,000 185,264 (37,304)(1,988,141)(366,976)(19,764)(103,214)(1,227,536) Fund Balance – Beginning of year 428,823 951,049 885,315 532,555 1,038,949 52,934 5,903,399 2,326,273 92,333 (498,110)11,713,520 Fund Balance – End of year 670,223 1,831,451 831,112 567,555 1,224,213 15,630 3,915,258 1,959,297 72,569 (601,324)10,485,984 Comprehensive Annual Financial Report 109 CAPiTAl PROJECTS FuNd — FACiliTiES SCHEdulE OF RE vENuES ANd E xPENdiT uRES: BudGET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Interest earnings 3,212 3,212 1,076 (2,136) expendItureS  Capital projects 424,598 424,598 71,528 353,070 Changes in Fund Balance before other Financing Sources (uses)(421,386)(421,386)(70,452)350,934 OTHER FiNANC iNG SOuRCES (uSES)  Operating transfers in 731,589 731,589 319,572 (412,017)  Operating transfers out (8,299)(8,299)(7,720)579  Reserve for future expenditure (752,232)(752,232)0 752,232 Total Other Financing Sources (uses)(28,942)(28,942)311,852 340,794  Contingency (50,000)(50,000)0 50,000 Changes in fund balance (500,328)(500,328)241,400 741,728 Fund Balance – Beginning of year 500,328 500,328 428,823 (71,505) Fund Balance – End of year 0 0 670,223 670,223 110 Comprehensive Annual Financial Report tranSportatIon development tax Fund SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Charges for services 176,678 176,678 1,101,901 925,223  Interest earnings 11,279 11,279 2,659 (8,620) Total Revenues 187,957 187,957 1,104,560 916,603 OTHER FiNANC iNG SOuRCES (uSES)  Operating transfers out (244,818)(244,818)(224,158)20,660  Contingency (40,000)(40,000)0 40,000  Reserve for future expenditure (208,074)(208,074)0 208,074 Total Other Financing Sources (uses)(492,892)(492,892)(224,158)268,734 Changes in fund balance (304,935)(304,935)880,402 1,185,337 Fund Balance – Beginning of year 304,935 304,935 951,049 646,114 Fund Balance – End of year 0 0 1,831,451 1,831,451 Comprehensive Annual Financial Report 111 traFFIc Impact Fee Fund SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Charges for services 0 0 2,592 2,592  Interest earnings 4,000 4,000 2,441 (1,559) Total Revenues 4,000 4,000 5,033 1,033 OTHER FiNANC iNG SOuRCES (uSES)  Transfers out (636,861)(636,861)(59,236)577,625  Contingency (20,000)(20,000)0 20,000  Reserve for future expenditure (203,111)(203,111)0 203,111 Total Other Financing Sources (uses)(859,972)(859,972)(59,236)800,736 Changes in fund balance (855,972)(855,972)(54,203)801,769 Fund Balance – Beginning of year 855,972 855,972 885,315 29,343 Fund Balance – End of year 0 0 831,112 831,112 112 Comprehensive Annual Financial Report uNdERGROuNd uTiliTy FuNd SCHEdulE OF RE vENuES ANd ExPENdiT uRES: BudGET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Charges for services 15,629 15,629 33,880 18,251  Interest earnings 7,160 7,160 1,271 (5,889) Total Revenues 22,789 22,789 35,151 12,362 OTHER FiNANCi NG SOuRCES (uSES)  Transfers out (162)(162)(151)11  Reserve for future expenditure (551,098)(551,098)0 551,098 Changes in fund balance (528,471)(528,471)35,000 563,471 Fund Balance – Beginning of year 528,471 528,471 532,555 4,084 Fund Balance – End of year 0 0 567,555 567,555 Comprehensive Annual Financial Report 113 Street maIntenance Fee Fund SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Charges for services 1,903,072 1,903,072 2,016,133 113,061  Interest earnings 2,043 2,043 266 (1,777)  Miscellaneous 0 0 1,274 1,274 Total Revenues 1,905,115 1,905,115 2,017,673 112,558 expendItureS  Capital projects 1,470,000 1,730,000 1,654,509 75,491 Changes in Fund Balance before other Financing Sources (uses)435,115 175,115 363,164 188,049 OTHER FiNANC iNG SOuRCES (uSES)  Transfers out (193,645)(193,645)(177,900)15,745  Contingency (150,000)(150,000)0 150,000  Reserve for future expenditure (866,330)(866,330)0 866,330 Total Other Financing Sources (uses)(1,209,975)(1,209,975)(177,900)1,032,075 Changes in fund balance (774,860)(1,034,860)185,264 1,220,124 Fund Balance – Beginning of year 774,860 1,034,860 1,038,949 4,089 Fund Balance – End of year 0 0 1,224,213 1,224,213 114 Comprehensive Annual Financial Report parkS capItal Fund SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Intergovernmental 434,456 34,000 40,102 6,102  Interest earnings 3,015 3,015 47 (2,968) Total Revenues 437,471 37,015 40,149 3,134 expendItureS  Capital projects 6,073,628 8,819,628 3,359,440 5,460,188 Changes in Fund Balance before other Financing Sources (uses)(5,636,157)(8,782,613)(3,319,291)5,463,322 OTHER FiNANCiNG SOuRCES (uSES)  Operating transfers in 5,902,628 8,648,628 3,281,987 (5,366,641)  Reserve for future expenditure (408,355)(7,899)0 7,899 Changes in fund balance (141,884)(141,884)(37,304)104,580 Fund Balance – Beginning of year 141,884 141,884 52,934 (88,950) Fund Balance – End of year 0 0 15,630 15,630 Comprehensive Annual Financial Report 115 parkS Bond Fund SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Interest earnings 4,020 4,020 27,444 23,424 OTHER FiNANCi NG SOuRCES (uSES)  Operating transfers out (4,577,628)(5,877,628)(2,015,585)3,862,043  Reserve for future expenditure (1,597,039)(297,039)0 297,039 Changes in fund balance (6,170,647)(6,170,647)(1,988,141)4,182,506 Fund Balance – Beginning of year 6,170,647 6,170,647 5,903,399 (267,248) Fund Balance – End of year 0 0 3,915,258 3,915,258 116 Comprehensive Annual Financial Report parkS Sdc Fund SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Charges for services 257,825 394,825 906,034 511,209  Interest earnings 19,782 19,782 4,772 (15,010) Total Revenues 277,607 414,607 910,806 496,199 OTHER FiNANC iNG SOuRCES (uSES)  Transfers out (1,172,325)(2,618,325)(1,277,782)1,340,543  Contingency (100,000)(91,000)0 91,000  Reserve for future expenditure (1,916,179)(31,555)0 31,555 Total Other Financing Sources (uses)(3,188,504)(2,740,880)(1,277,782)1,463,098 Changes in fund balance (2,910,897)(2,326,273)(366,976)1,959,297 Fund Balance – Beginning of year 2,910,897 2,326,273 2,326,273 0 Fund Balance – End of year 0 0 1,959,297 1,959,297 Comprehensive Annual Financial Report 117 tranSportatIon cIp Fund SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Intergovernmental revenue 0 153,970 0 (153,970)  Grant revenue 0 0 91,052 91,052 Total Revenues 0 153,970 91,052 (62,918) expendItureS  Captial projects 3,348,719 3,560,719 888,069 2,672,650 Changes in Fund Balance before other Financing Sources (uses)(3,348,719)(3,406,749)(797,017)2,609,732 OTHER FiNANC iNG SOuRCES (uSES)  Transfers in 3,313,719 3,371,749 777,253 (2,594,496)  Reserve for future expenditure (36,086)(36,086)0 36,086 Total Other Financing Sources (uses)3,277,633 3,335,663 777,253 (2,558,410) Changes in fund balance (71,086)(71,086)(19,764)51,322 Fund Balance – Beginning of year 71,086 71,086 92,333 21,247 Fund Balance – End of year 0 0 72,569 72,569 118 Comprehensive Annual Financial Report uRBAN RENEWAl AGENC y CAPiTAl PROJECT FuNd SCHEdulE OF RE vENuES ANd E xPENdiTuRES: BudGET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Interest earnings 0 0 97 97  Miscellaneous 0 0 1,803 1,803 Total Revenues 0 0 1,899 1,899 expendItureS  Capital projects 540,000 582,000 383,710 198,290 Changes in Fund Balance before other Financing Sources (uses)(540,000)(582,000)(381,811)200,189 OTHER FiNANC iNG SOuRCES (uSES)  Debt proceeds 280,000 280,000 280,000 0 Changes in fund balance (260,000)(302,000)(101,811)200,189 Fund Balance – Beginning of year 260,000 302,000 302,272 272 Fund Balance – End of year 0 0 200,461 200,461 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 revenue on a budgetary basis. Transfers in are reclassified as payables on a GAAP basis.(801,785) Fund Balance – GAAP Basis (601,324) Comprehensive Annual Financial Report 119 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, Water CIP Fund and Water Debt Service 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) Water deb Services Fund – (budgetary basis financial statements only) Comprehensive Annual Financial Report 121 SanItary Sewer Fund SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Charges for services 1,283,300 1,283,300 1,203,187 (80,113)  Connection fees 178,250 178,250 70,958 (107,292)  Miscellaneous 127,513 127,513 128,390 877  Interest earnings 100,333 100,333 502 (99,831) Total Revenues 1,689,396 1,689,396 1,403,037 (286,359) expendItureS  Public works 1,423,427 1,560,427 1,359,653 200,774  Capital projects 3,009,388 4,121,388 1,211,556 2,909,832 Total Expenditures 4,432,815 5,681,815 2,571,209 3,110,606 Changes in Fund Balance before other Financing Sources (uses)(2,743,419)(3,992,419)(1,168,172)2,824,247 OTHER FiNANC iNG SOuRCES (uSES)  Transfers in 329,000 329,000 276,292 (52,708)  Transfers out (67,149)(170,163)(36,384)133,779  Loan to CCDA (200,000)(200,000)(200,000)0  Contingency (400,000)(159,986)0 159,986  Reserve for future expenditure (2,650,769)(2,650,769)0 2,650,769 Total Other Financing Sources (uses)(2,988,918)(2,851,918)39,908 81,071 Changes in fund balance (5,732,337)(6,844,337)(1,128,264)3,065,304 Fund Balance – Beginning of year 5,732,337 6,844,337 7,403,656 559,319 Fund Balance – End of year 0 0 6,275,392 6,275,392 122 Comprehensive Annual Financial Report SanItary Sewer Fund RECONCiliATiON OF BudGETARy RE vENuES ANd E xPENdiTuRES to proprIetary revenueS and expenSeS For the year ended June 30, 2013 Operating and Non-operating Revenues Expenditures/ Expenses Budgetary Basis 1,403,037 2,571,209 Unavailable revenue 54,060 0 Change in accrued compensated absences 0 5,887 Expenditures capitalized 0 (1,122,949) Depreciation expense 0 654,045 Net OPEB obligation 0 5,862 Operating and Non-operating Revenue and Expenses 1,457,097 2,114,054 Comprehensive Annual Financial Report 123 Storm Sewer Fund SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Charges for services 1,948,353 1,948,353 2,629,694 681,341  Miscellaneous 0 0 3,039 3,039  Interest earnings 7,936 7,936 140 (7,796) Total Revenues 1,956,289 1,956,289 2,632,873 676,584 expendItureS  Public works 1,652,460 1,652,460 1,540,384 112,076  Capital projects 331,807 331,807 323,461 8,346 Total Expenditures 1,984,267 1,984,267 1,863,845 120,422 Changes in Fund Balance before other Financing Sources (uses)(27,978)(27,978)769,028 797,006 OTHER FiNANC iNG SOuRCES (uSES)  Transfers out (173,356)(173,356)(82,752)90,604  Contingency (100,000)(100,000)0 100,000  Reserve for future expenditure (783,337)(783,337)0 783,337 Total Other Financing Sources (uses)(1,056,693)(1,056,693)(82,752)973,941 Changes in fund balance (1,084,671)(1,084,671)686,276 1,770,947 Fund Balance – Beginning of year 1,084,671 1,084,671 2,195,002 1,110,331 Fund Balance – End of year 0 0 2,881,278 2,881,278 124 Comprehensive Annual Financial Report WATER QuAliT y/QuANT iT y FuNd SCHEdulE OF RE vENuES ANd E xPENdiT uRES: BudGET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Charges for services 4,250 4,250 9,250 5,000  Interest earnings 15,102 15,102 3,386 (11,716) Total Revenues 19,352 19,352 12,636 (6,716) OTHER FiNANC iNG SOuRCES (uSES)  Transfers out (347,616)(347,616)(292,137)55,479  Reserve for future expenditure (1,242,381)(1,242,381)0 1,242,381 Changes in fund balance (1,570,645)(1,570,645)(279,501)1,291,144 Fund Balance – Beginning of year 1,570,645 1,570,645 1,570,632 (13) Fund Balance – End of year 0 0 1,291,131 1,291,131 Comprehensive Annual Financial Report 125 Storm Sewer FundS RECONCiliATiON OF BudGETARy RE vENuES ANd E xPENdiTuRES to proprIetary revenueS and expenSeS For the year ended June 30, 2013 Operating and Non-operating Revenues Expenditures/ Expenses Storm Sewer 2,632,873 1,863,845 Water Quality/Quantity 12,636 0 Total Budgetary Basis 2,645,509 1,863,845 Change in accrued compensated absences 0 (414) Expenditures capitalized 0 (270,031) Depreciation expense 0 446,137 Net OPEB obligation 0 5,862 Operating and Non-operating Revenue and Expenses 2,645,509 2,045,399 126 Comprehensive Annual Financial Report water F und SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Charges for services 13,211,326 13,211,326 14,907,664 1,696,338  Interest earnings 30,644 30,644 330 (30,314)  Miscellaneous 0 0 20,718 20,718 Total Revenues 13,241,970 13,241,970 14,928,712 1,686,742 expendItureS  Public works 7,950,086 7,950,086 6,739,875 1,210,211 Changes in Fund Balance before other Financing Sources (uses)5,291,884 5,291,884 8,188,837 2,896,953 OTHER FiNANC iNG SOuRCES (uSES)  Transfers in 58,751 58,751 58,751 0  Transfers out (4,660,675)(4,660,675)(3,967,787)692,888  Contingency (500,000)(500,000)0 500,000  Reserve for future expenditure (6,490,450)(6,490,450)0 6,490,450 Total Other Financing Sources (uses)(11,592,374)(11,592,374)(3,909,036)7,683,338 Changes in fund balance (6,300,490)(6,300,490)4,279,801 10,580,291 Fund Balance – Beginning of year 6,300,490 6,300,490 8,427,291 2,126,801 Fund Balance – End of year 0 0 12,707,092 12,707,092 Comprehensive Annual Financial Report 127 water Sdc Fund SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  System development charges 361,575 361,575 1,541,719 1,180,144  Interest earnings 233 233 4,746 4,513 Total Revenues 361,808 361,808 1,546,465 1,184,657 OTHER FiNANCiNG SOuRCES (uSES)  Operating transfer out (272,306)(272,306)(4,814)267,492  Reserve for future expenditure (820,042)(820,042)0 820,042 Changes in fund balance (730,540)(730,540)1,541,651 2,272,191 Fund Balance – Beginning of year 730,540 730,540 1,536,401 805,861 Fund Balance – End of year 0 0 3,078,052 3,078,052 128 Comprehensive Annual Financial Report water cIp Fund SCHEdulE OF RE vENuES ANd E xPENdiTuRES: BudGET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Miscellaneous 0 0 5,213 5,213  Interest earnings 13,096 13,096 68,593 55,497 Total Revenues 13,096 13,096 73,806 60,710 expendItureS  Capital projects 22,706,500 22,706,500 10,202,553 12,503,947 Changes in Fund Balance before other Financing Sources (uses)(22,693,404)(22,693,404)(10,128,747)12,564,657 OTHER FiNANC iNG SOuRCES (uSES)  Operating transfers in 908,671 908,671 350,948 (557,723)  Operating transfers out (132,452)(132,452)(123,207)9,245  Reserve for future expenditure (68,082,815)(68,082,815 0 68,082,815 Total Other Financing Sources (uses)(67,306,596)(67,306,596)227,741 67,534,337 Changes in fund balance (90,000,000)(90,000,000)(9,901,006)80,098,994 Fund Balance – Beginning of year 90,000,000 90,000,000 93,177,930 3,177,930 Fund Balance – End of year 0 0 83,276,924 83,276,924 Comprehensive Annual Financial Report 129 water deBt ServIce Fund SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Interest earnings 0 0 36,964 36,964 expendItureS  Debt service 3,961,184 3,961,184 3,701,071 260,113 Changes in Fund Balance before other Financing Sources (uses)(3,961,184)(3,961,184)(3,664,107)297,077 OTHER FiNANC iNG SOuRCES (uSES)  Operating transfers in 3,961,184 3,961,184 3,700,863 (260,321)  Reserve for future expenditure (8,900,000)(8,900,000)0 8,900,000 Total Other Financing Sources (uses)(4,938,816)(4,938,816)3,700,863 8,639,679 Changes in fund balance (8,900,000)(8,900,000)36,756 8,936,756 Fund Balance – Beginning of year 8,900,000 8,900,000 6,569,044 (2,330,956) Fund Balance – End of year 0 0 6,605,800 6,605,800 130 Comprehensive Annual Financial Report water FundS RECONCiliATiON OF BudGETARy RE vENuES ANd E xPENdiTuRES to proprIetary revenueS and expenSeS For the year ended June 30, 2013 Operating and Non-operating Revenues Expenditures/ Expenses Water 14,928,712 6,739,875 Water SDC 1,546,465 0 Water CIP 73,806 10,202,553 Water Debt Service 36,964 3,701,071 Total Budgetary Basis 16,585,947 20,643,499 Change in accrued compensated absences 0 4,770 Expenditures capitalized 0 (10,082,944) Principal payments 0 (104,514) Change in accrued interest 0 1,110,350 Amortization of water revenue bond premium 0 (470,602) Interest capitalized 0 (305,101) Depreciation expense 0 1,182,159 Net OPEB obligation 0 11,720 Operating and Non-operating Revenue and Expenses 16,585,947 11,989,337 Comprehensive Annual Financial Report 131 RECONCiliATiON OF BudGETARy FuNd BAl ANCE TO GENERAlly ACCEPTEd ACCOuNTiNG PRiNC iPl ES BASiS NET POSiTi ON For the year ended June 30, 2013 Total Sanitary Sewer Total Storm Sewer Total Water Sanitary Sewer Fund 6,275,392 0 0 Storm Sewer Fund 0 2,881,278 0 Water Quality/Quantity Fund 0 1,291,131 0 Water Fund 0 0 12,707,092 Water SDC Fund 0 0 3,078,052 Water CIP Fund 0 0 83,276,924 Water Debt Service Fund 0 0 6,605,800 Fund Balance – Budget Basis 6,275,392 4,172,409 105,667,868 Adjustments from budgetary basis to generally accepted accounting principles basis: Capital assets, net 15,795,540 10,678,403 68,766,402 Assets held for resale 185,021 260,021 0 Unavailable revenue 139,548 0 0 Accrued vacation payable (27,283)(15,559)(70,244) Long-term debt 0 0 (109,667,515) Interfund loans 200,000 0 0 OPEB obligation (25,113)(28,805)(54,147) Total Net Position – Generally Accepted Accounting: Principles Basis 22,543,105 15,066,469 64,642,364 132 Comprehensive Annual Financial Report Comprehensive Annual Financial Report 133 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 Major Enterprise Funds: 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. Comprehensive Annual Financial Report 135 iNTERNAl SERviCE FuNdS — COMBiNiNG STATEMENT OF NET POSiTiON For the year ended June 30, 2013 Central ServiceFund Fleet/Property Management Fund insurance Fund Total aSSetS Current Assets:  Cash and investments 671,122 162,314 830,158 1,663,594  Accounts receivable 17,934 33 109 18,076  Prepaid expense 100,097 0 0 100,097  Inventory 0 36,200 0 36,200 Total Assets 789,153 198,547 830,267 1,817,967 lIaBIlItIeS Current Liabilities:  Accounts payable and accrued liabilities 305,720 69,744 0 375,464  Unearned revenue 15,948 0 0 15,948  Accrued compensated absences 248,506 41,701 0 290,207  Net OPEB obligation 188,339 10,932 0 199,271 Total liabilities 758,513 122,377 0 880,890 Net Position, unrestricted 30,640 76,170 830,267 937,077 136 Comprehensive Annual Financial Report iNTERNAl SERviCE FuNdS — COMBiNiNG STATEMENT OF RE vENuES, ExPENSES ANd CHANGES iN FuNd NET POSiTiON For the year ended June 30, 2013 Central ServiceFund Fleet/Property Management Fund insurance Fund Total OPERATiNG REvENuES  Charges for services 5,770,979 1,368,579 0 7,139,558  Miscellaneous 14,155 32,707 52,371 99,233 Total Operating Revenues 5,785,134 1,401,286 52,371 7,238,791 OPERATiNG ExPENSES  Salaries and wages 3,969,580 473,115 0 4,442,695  Contracted services 458,435 323,048 78 781,561  General, administrative and other 1,389,384 658,825 34,302 2,082,511 Total Operating Expenses 5,817,399 1,454,988 34,380 7,306,767  Operating income (loss)(32,265)(53,702)17,991 (67,976) NON-OPERATiNG REvENuE  Interest revenue 400 104 380 884  Net income (loss)(31,865)(53,598)18,371 (67,092) Net Position – Beginning of year 62,505 129,768 811,896 1,004,169 Net Position – End of year 30,640 76,170 830,267 937,077 Comprehensive Annual Financial Report 137 iNTERNAl SERviCE FuNdS — COMBiNiNG STATEMENT OF CASH FlOWS For the year ended June 30, 2013 Central ServiceFund Fleet/Property Management Fund insurance Fund Total CASH FlOWS FROM OPERATiNG ACT iviTiES  Receipts from customers 5,771,314 1,373,787 0 7,145,101  Payments to suppliers (1,962,821)(1,110,171)(34,380)(3,107,372)  Payments to employees (3,918,927)(453,399)0 (4,372,326)  Other receipts 30,103 32,707 53,428 116,238 Net Cash Provided (used) by Operating Activities (80,331)(157,076)19,048 (218,359) CASH FlOWS FROM iNvEST iNG ACTiviT iES  Interest earnings collected 400 104 380 884 Net change in cash and cash equivalents (79,931)(156,972)19,428 (217,475) Cash and investments – Beginning of year 751,053 319,286 810,730 1,881,069 Cash and investments – End of year 671,122 162,314 830,158 1,663,594 RECONCili ATiON OF OPERAT iNG iNCOME (lOSS) to net ca S h provIded By OPERATiNG ACTiviTiES  Operating income (loss)(32,265)(53,702)17,991 (67,976) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: CHANGE iN ASSETS ANd liABiliTiES  Receivables 335 5,208 1,057 6,600  Prepaids (39,925)0 0 (39,925)  Inventories 0 (17,962)0 (17,962)  Accounts payable (75,077)(110,336)0 (185,413)  Unearned revenue 15,948 0 0 15,948  Accrued compensated absences 13,605 14,792 0 28,397  Net OPEB obligation 37,048 4,924 0 41,972 Net Cash Provided (used) by Operating Activities (80,331)(157,076)19,048 (218,359) 138 Comprehensive Annual Financial Report central ServIceS Fund SCHEdulE OF RE vENuES ANd E xPENdiTuRES: Bud GET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Charges for services 5,979,588 5,979,588 5,517,427 (462,161)  Interest earnings 593 593 400 (193)  Miscellaneous 0 0 14,155 14,155 Total Revenues 5,980,181 5,980,181 5,531,982 (448,199) expendItureS  Policy and administration 6,292,137 6,340,537 5,780,351 560,186 Changes in Fund Balance before other Financing Sources (uses)(311,956)(360,356)(248,369)111,987 OTHER FiNANC iNG SOuRCES (uSES)  Operating transfers in 282,477 282,477 253,552 (28,925)  Contingency (300,000)(251,600)0 251,600  Reserve for future expenditure (188,989)(188,989)0 188,989 Total Other Financing Sources (uses)(206,512)(158,112)253,552 411,664 Changes in fund balance (518,468)(518,468)5,183 523,651 Fund Balance – Beginning of year 518,468 518,468 213,796 (304,672) Fund Balance – End of year 0 0 218,979 218,979 Reconciliation of budgetary fund balance to GAAP basis net position: Net OPEB obligation (188,339) Total Net Position, GAAP Basis 30,640 Comprehensive Annual Financial Report 139 FlEET/PROPERT y MANAGEMENT FuNd SCHEdulE OF RE vENuES ANd E xPENdiT uRES: BudGET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Charges for services 1,506,122 1,506,122 1,355,912 (150,210)  Interest earnings 0 0 104 104  Miscellaneous 0 0 32,707 32,707 Total Revenues 1,506,122 1,506,122 1,388,723 (117,399) expendItureS  Public works 1,575,171 1,597,266 1,450,064 147,202 Changes in Fund Balance before other Financing Sources (uses)(69,049)(91,144)(61,341)29,803 OTHER FiNANC iNG SOuRCES (uSES)  Operating transfers in 15,200 22,595 12,667 (9,928)  Contingency (40,000)(25,300)0 25,300  Reserve for future expenditure (21,968)(21,968)0 21,968 Total Other Financing Sources (uses)(46,768)(24,673)12,667 37,340 Changes in fund balance (115,817)(115,817)(48,674)67,143 Fund Balance – Beginning of year 115,817 115,817 135,776 19,959 Fund Balance – End of year 0 0 87,102 87,102 Reconciliation of budgetary fund balance to GAAP basis net position: Net OPEB obligation (10,932) Total Net Position, GAAP Basis 76,170 140 Comprehensive Annual Financial Report InSurance Fund SCHEdulE OF RE vENuES ANd E xPENdiT uRES: BudGET ANd ACTuAl For the year ended June 30, 2013 Budgeted Amounts Actual Amounts variance Over (under)Original Final revenueS  Interest earnings 7,810 7,810 380 (7,430)  Recovered expenditures 52,936 52,936 52,371 (565) Total Revenues 60,746 60,746 52,751 (7,995) expendItureS  Policy and administration 50,000 100,000 33,570 (66,430) Changes in Fund Balance before other Financing Sources (uses)10,746 (39,254)19,181 58,435 OTHER FiNANC iNG SOuRCES (uSES)  Operating transfers out (870)(870)(810)60  Contingency (10,000)(10,000)0 10,000  Reserve for future expenditure (792,539)(742,539)0 742,539 Total Other Financing Sources (uses)(803,409)(753,409)(810)752,599 Changes in fund balance (792,663)(792,663)18,371 811,034 Fund Balance – Beginning of year 792,663 792,663 811,896 19,233 Fund Balance – End of year 0 0 830,267 830,267 Comprehensive Annual Financial Report 141 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 Comprehensive Annual Financial Report 143 SCHEdulE OF PROPERT y TA x TRANSACTiONS ANd OuTSTANdiNG BAl ANCES For the year ended June 30, 2013 Property Taxes Receivable June 30,2012 Add levy as Extended by Assessor deduct discounts Allowed Add (deduct) Adjustments Add interest deduct Collections Property Taxes Receivable June 30, 2013 2012–2013 0 15,577,974 (404,841)21,813 4,809 (14,874,217)325,538 2011–2012 379,484 0 894 (121,608)12,591 (105,502)165,859 2010–2011 195,942 0 643 (50,971)10,519 (43,542)112,591 2009–2010 111,985 0 25 (1,498)13,371 (55,967)67,916 2008–2009 19,233 0 5 (586)4,609 (16,423)6,838 2007–2008 5,537 0 4 (406)1,040 (2,736)3,439 2006–2007 and prior 10,755 0 0 (604)1,430 (3,269)8,312 722,936 15,577,974 (403,270)(153,860)48,369 (15,101,656)690,493 Distributed as follows: Cash Collections Property Taxes Receivable June 30, 2013 GENERAl FuNd Assessment 12,692,657 275,916 Prior years’ levies 115,174 323,197 Total General Fund 12,807,831 599,113 deBt ServIce Fund Current 2,283,223 49,622 Prior years’ levies 10,602 41,758 Total debt Service Funds 2,293,825 91,380 Total 15,101,656 690,493 NOTE: Taxes revenue on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance (page 44) is reported on the modified accrual basis. 144 Comprehensive Annual Financial Report Schedule oF Bond and Bond IntereSt tranSactIonS for the year ended June 30, 2013 Bond Transactions interest Transactions Original issue Outstanding June 30, 2012 Additions Matured/ Called Paid Outstanding June 30, 2013 Matured Paid BancroFt BondS  Issued June 27, 2002 1,307,969 575,356 0 62,500 (62,500)512,856 41,144 (41,144)  Issued Dec. 3, 2003 1,947,678 390,883 0 0 0 390,883 15,244 (15,244) 1,024,531 0 62,500 (62,500)903,739 56,388 (56,388) GENERAl OBliGATiON BondS  Issued Feb. 3, 2011 13,000,000 8,145,000 0 625,000 (625,000)7,520,000 142,625 (142,625)  Issued June 21, 2010 7,250,000 5,985,000 0 680,000 (680,000)5,305,000 260,348 (260,348)  Issued Feb. 3, 2011 17,000,000 16,605,000 0 625,000 (625,000)15,980,000 665,625 (665,625) 32,300,000 0 1,930,000 (1,930,000)28,805,000 1,068,598 (1,068,598) revenue BondS  Issued May 1, 2012 97,720,000 97,720,000 0 0 0 97,720,000 0 0 lONG-TERM NOTES  Issued Dec. 1, 2011 2,398,000 2,398,000 0 104,514 (104,514)2,293,486 56,669 (56,669) Comprehensive Annual Financial Report 145 Schedule oF Future deBt ServIce requIrementS oF BancroFt Improvement BondS for the year ended June 30, 2013 Fiscal year of Maturity Total Requirements issued June 27, 2002 7.25% issued december 3, 2003 3.90% Principal interest Principal interest Principal interest 2013–2014 457,983 42,063 67,100 36,262 390,883 5,801 2014–2015 72,100 31,311 72,100 31,311 0 0 2015–2016 77,400 25,989 77,400 25,989 0 0 2016–2017 83,100 20,277 83,100 20,277 0 0 2017–2018 89,200 14,142 89,200 14,142 0 0 2018–2022 123,956 8,715 123,956 8,715 0 0 Total 903,739 142,497 512,856 136,696 390,883 5,801 146 Comprehensive Annual Financial Report Schedule oF Future deBt ServIce requIrementS OF GENERAl OBliGATiON BONdS for the year ended June 30, 2013 Fiscal year of Maturity Total debt Requirement issued February 3, 2011 3.00% to 4.00% issued June 21, 2010 4.35% issued February 3, 2011 3.00% to 4.75% Principal interest Principal interest Principal interest 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 2016–2017 2,165,000 705,000 196,075 755,000 137,460 705,000 587,025 2017–2018 2,235,000 730,000 174,550 780,000 104,618 725,000 565,875 2019–2023 9,775,000 4,090,000 422,000 1,625,000 106,575 4,060,000 2,408,425 2024–2028 4,955,000 0 0 0 0 4,955,000 1,511,400 2029–2031 3,540,000 0 0 0 0 3,540,000 341,525 Total 28,805,000 7,520,000 1,503,550 5,305,000 949,388 15,980,000 7,296,228 Comprehensive Annual Financial Report 147 Schedule oF Future deBt ServIce requIrementS oF water revenue BondS for the year ended June 30, 2013 Fiscal year of Maturity Total Requirements issued May 1, 2012 3.00% to 5.00% Principal interest 2012–2013 0 0 3,539,888 2013–2014 0 0 4,719,850 2014–2015 0 0 4,719,850 2015–2016 0 0 4,719,850 2016–2017 6,561,800 1,870,00 4,691,800 2018–2022 32,811,750 10,510,000 22,301,750 2023–2027 32,810,300 13,055,000 19,755,300 2028–2032 32,815,625 16,755,000 16,060,625 2033–2037 32,811,250 21,510,000 11,301,250 2038–2042 32,810,750 27,620,000 5,190,750 2042 6,560,000 6,400,000 160,000 Total 177,181,475 97,720,000 97,160,913 148 Comprehensive Annual Financial Report Comprehensive Annual Financial Report 149 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 These schedules contain trend information to help the reader understand how financial performance has changed over time. 151–161 Revenue Capacity These schedules contain information to help the reader assess the city’s most significant local revenue source, property taxes. 162–166 debt Capacity These schedules contain 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. 167–172 demographic and Economic information These schedules offer demographic and economic indicators to help the reader understand the environment within the city’s financial activities take place. 173–175 Operating information 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. 176–178 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. Comprehensive Annual Financial Report 151 m IS cellaneou S S tat IS t I cal data for the year ended June 30, 2013 date of incorporation 1961 Form of Government Mayor/Council with a City Manager as the administrative head of the government of the city. Area (square miles–incorporated area)12.7 Miles of Streets 150.00 Police Protection: - Number of Stations - Number of Sworn Police Officers 1 68 Education: - Attendance Centers - Number of Teachers/FTE - Number of Students 17 621 12,701 Building Permits issued (2012–2013)771 Recreation and Culture: - Number of Parks - Greenways - Number of libraries - Number of volumes (estimated) 18, totaling 248 acres 245 acres 1 250,454 Employees: - Classified service (union) - unclassified (non-union) 170 85 Information obtained from the various departments of the CIty of TIgard, Oregon and TIgard/Tualatin School District #23-J. City student totals not available. 152 Comprehensive Annual Financial Report Comprehensive Annual Financial Report 153 net poSI tIon By component For the la St ten FIScal yearS (accrual basis of accounting) Fiscal year 2004 Fiscal year 2005 Fiscal year 2006 Fiscal year 2007 Fiscal year 2008 Fiscal year 2009 Fiscal year 2010 Fiscal year 2011 Fiscal year 2012 Fiscal year 2013 GOvERNMENTAl ACTiviTiES  Invested in capital assets, net of related debt 167,289,278 169,543,524 168,577,473 173,401,138 177,656,465 179,584,222 165,775,262 181,343,650 179,626,050 181,196,030  Restricted 1,782,382 1,367,179 2,812,994 1,490,484 1,992,734 1,540,638 6,872,512 5,880,755 13,180,057 12,041,725  Unrestricted 21,197,594 21,178,146 21,685,865 25,234,231 23,053,474 18,091,356 24,927,888 11,880,945 8,431,166 14,311,478 Total Governmental Activities Net Position 190,269,254 192,088,849 193,076,332 200,125,853 202,702,673 199,216,216 197,575,662 199,105,350 201,237,273 207,549,233 BuSiNESS-TyPE ACTiviTiES  Invested in capital assets, net of related debt 51,186,594 51,861,963 58,058,208 64,000,824 68,398,209 68,738,562 70,942,446 78,920,831 65,218,645 74,044,470  Restricted 5,548,698 3,761,976 3,761,976 3,783,324 3,783,324 3,783,324 0 6,005,540 13,184,382 9,683,852  Unrestricted 19,877,044 20,374,983 20,480,106 18,463,817 15,826,866 16,184,644 17,371,241 8,675,865 19,429,375 18,523,616 Total Business-type Activities Net Position 76,612,336 75,998,922 82,300,290 86,247,965 88,008,399 88,706,530 88,313,687 93,602,236 97,832,402 102,251,938 PRiMARy GOvERNMENT  Invested in capital assets, net of related debt 218,475,872 221,405,487 226,635,681 237,401,962 246,054,674 248,322,784 236,717,708 260,264,481 244,844,695 255,240,500  Restricted 7,331,080 5,129,155 6,574,970 5,273,808 5,776,058 5,323,962 6,872,512 11,886,295 26,364,439 21,725,577  Unrestricted 41,074,638 41,553,129 42,165,971 43,698,048 38,880,340 34,275,999 42,299,129 20,556,810 27,860,541 32,835,094 Total Primary Government Net Position 266,881,590 260,087,771 275,376,622 286,373,818 290,711,072 287,922,745 285,889,349 292,707,586 299,069,675 309,801,171 154 Comprehensive Annual Financial Report CHANGES iN NET POSiTiON FOR THE l AST TEN FiSCAl yEARS (accrual basis of accounting) Fiscal year 2004 Fiscal year 2005 Fiscal year 2006 Fiscal year 2007 Fiscal year 2008 Fiscal year 2009 Fiscal year 2010 Fiscal year 2011 Fiscal year 2012 Fiscal year 2013 expenSeS Governmental Activities:  Community services 8,744,613 10,253,764 11,241,521 11,656,248 13,678,913 18,365,997 19,832,642 19,987,961 20,025,191 19,085,777  Public works 2,735,212 2,172,874 3,078,772 2,383,009 2,373,710 2,468,981 8,563,893 10,911,875 12,489,448 8,585,063  Community development 3,791,317 4,224,696 4,669,452 4,714,636 5,186,834 7,238,839 4,846,494 4,159,289 4,709,751 3,988,011  Policy and administration 6,175,917 6,166,577 7,447,828 4,398,213 3,992,478 5,997,644 1,511,956 1,825,398 2,117,198 1,339,254  Interest on long-term debt 947,848 716,899 935,359 153,319 354,664 526,825 548,987 1,214,420 1,125,259 1,226,774 Total Governmental Activities Expenses 22,394,907 23,534,810 27,372,932 23,305,425 25,586,599 34,598,286 35,303,972 38,098,943 40,466,847 34,224,879 expenSeS Business-type Activities:  Sewer 945,102 1,297,582 1,454,150 1,461,458 1,963,223 1,597,413 1,379,105 1,386,597 1,743,929 2,114,054  Storm water 1,090,550 1,374,459 1,391,158 1,533,391 1,585,105 1,920,640 2,061,622 1,667,699 1,649,715 2,045,399  Water 5,555,590 8,200,928 7,291,602 7,452,480 6,792,833 7,624,478 7,880,598 6,996,463 7,807,706 11,989,337 Total Business-type Activities Expenses 7,591,242 10,872,969 10,136,910 10,447,329 10,341,161 11,142,531 11,321,325 10,050,759 11,201,350 16,148,790 Total Primary Government Expenses 29,986,149 34,407,779 37,509,842 33,752,754 35,927,760 45,740,817 46,625,297 48,149,702 51,668,197 50,373,669 PROGRAM REvENuES Governmental Activities:  Charges for service:   Community service 114,454 119,513 146,798 151,448 168,232 180,425 232,384 1,008,691 1,191,417 2,252,945   Public works 603,352 1,741,747 2,165,451 1,866,123 1,377,855 952,652 1,751,341 2,096,677 1,915,631 2,120,366   Community development 2,928,733 3,335,125 4,463,283 3,982,018 2,331,834 1,249,995 1,490,701 1,747,617 1,684,287 2,579,329   Policy and administration 822,177 908,053 1,015,976 1,146,301 1,524,653 1,463,736 108,940 0 84,065 105,755  Operating grants and contributions 252,805 285,888 133,509 1,537,714 739,171 153,447 199,506 6,516,004 6,952,717 6,924,053  Capital grants and contributions 0 0 0 2,596,223 3,103,521 199,112 305,398 230,500 1,049,774 2,173,900 Total Governmental Activities Program Revenues 4,721,521 6,390,326 7,925,017 11,279,827 9,245,266 4,199,367 4,088,270 11,599,489 12,877,891 16,156,348 PROGRAM REvENuES Business-type Activities:  Charges for service:   Sewer 1,809,032 1,601,113 1,555,358 1,641,740 2,322,462 1,348,750 1,117,987 1,021,840 1,025,732 1,203,187   Storm water 1,156,863 1,156,220 1,176,816 1,190,521 1,593,097 1,484,627 1,872,545 2,178,298 2,402,189 2,629,694   Water 7,202,910 7,762,153 6,953,809 6,336,186 7,002,872 7,417,827 7,834,978 9,065,554 11,895,044 14,907,664  Capital grants and contributions 0 0 6,077,864 3,886,120 136,331 834,660 1,022,045 4,583,764 2,871,726 1,675,987 Total Business-type Activities Program Revenues 10,168,805 10,519,486 15,763,847 13,054,567 11,054,762 11,085,864 11,847,555 16,849,456 18,194,691 20,416,532 Total Primary Government Revenues 14,890,326 16,909,812 23,688,864 24,334,394 20,300,028 15,285,231 15,935,825 28,448,945 31,072,582 36,572,880 Source: Comprehensive Annual Financial Report of the city. Comprehensive Annual Financial Report 155 CHANGES iN NET POSiTiON FOR THE l AST TEN FiSCAl yEARS (...CONTiNuEd) (accrual basis of accounting) Fiscal year 2004 Fiscal year 2005 Fiscal year 2006 Fiscal year 2007 Fiscal year 2008 Fiscal year 2009 Fiscal year 2010 Fiscal year 2011 Fiscal year 2012 Fiscal year 2013 NET (ExPENSE) REvENuE  Governmental Activities (17,613,386)(17,144,484)(19,447,915)(12,025,598)(16,341,333)(30,398,918)(31,215,702)(26,499,454)(27,588,956)(18,068,531)  Business-type Activities 2,577,563 716,899 5,626,937 2,607,238 713,601 (56,667)526,230 6,798,697 6,993,341 4,267,742 Total Primary Government Net Expenses (15,035,823)(16,427,585)(13,820,978)(9,418,360)(15,627,731)(30,455,585)(30,689,471)(19,700,757)(20,595,615)(13,800,789) GENERAl REvENuES ANd OTHER CHANGES iN NET POSi TiON Governmental Activities:  Property taxes 9,763,281 10,273,332 10,804,524 11,552,817 9,133,664 12,526,541 16,070,846 13,604,285 15,182,467 15,338,744  Franchise fees 2,431,324 2,670,050 3,042,187 3,835,007 4,551,169 3,887,078 4,548,520 4,375,420 4,880,635 5,855,956   Restricted intergovernmental revenues (excluding grants)0 3,447,895 3,288,530 0 0 0 0 0 0 0  Unrestricted intergovernmental revenues 5,204,135 1,430,206 1,863,706 1,836,291 2,912,647 8,925,520 6,993,245 2,838,802 4,798,949 2,500,240  Interest earnings 890,785 859,057 922,508 1,548,735 1,503,619 947,247 308,853 296,964 283,273 248,812  Miscellaneous 422,145 283,539 513,943 302,269 817,054 626,075 376,884 5,284,426 1,583,989 316,512   Transfers between governmental and business-type 0 0 0 0 0 0 1,276,800 1,629,245 2,991,566 120,227 Total Governmental Activities 18,711,670 18,964,079 20,435,398 19,075,119 18,918,153 26,912,461 29,575,148 28,029,142 29,720,879 24,380,491 GENERAl REvENuES ANd OTHER CHANGES iN NET POSi TiON Business-type Activities:  Interest earnings 426,853 604,977 580,004 1,050,352 1,039,593 649,231 153,300 115,828 73,228 114,661  Miscellaneous 23,754 135,092 94,427 147,310 150,015 105,567 204,427 3,269 155,164 157,360   Transfers between governmental and business-type 0 0 0 0 0 0 (1,276,800)(1,629,245)(2,991,566)(120,227) Total Business-type Activities 450,607 740,069 674,431 1,197,662 1,189,608 754,798 (919,073)(1,510,148)(2,763,174)151,794 Total Primary Government 19,162,277 19,704,148 21,109,829 20,272,781 20,107,761 27,667,259 28,656,075 26,518,994 26,957,705 24,532,285 CHANGE iN NET POSiTiON  Governmental Activities 1,098,284 1,819,595 987,483 7,049,521 2,576,820 (3,486,457)(1,640,554)1,529,688 2,131,923 6,311,960  Business-type Activities 3,028,170 386,586 6,301,368 3,804,900 1,903,209 698,131 (392,843)5,288,549 4,230,167 4,419,536 Total Primary Government 4,126,454 2,206,181 7,288,851 10,854,421 4,480,029 (2,788,325)(2,033,396)6,818,237 6,362,090 10,731,496 Source: Comprehensive Annual Financial Report of the city. 156 Comprehensive Annual Financial Report FuNd BAl ANCES OF GOvERNMENTAl FuNdS FOR THE l AST TEN FiSCAl yEARS (modified accrual basis of accounting) Fiscal year 2004 Fiscal year 2005 Fiscal year 2006 Fiscal year 2007 Fiscal year 2008 Fiscal year 2009 Fiscal year 2010 Fiscal year 2011 Fiscal year 2012 Fiscal year 2013 GENERAl FuNd  Reserved 69,069 54,632 20,291 209,378 0 419,488 273,726 0 0 0  Unreserved 8,343,762 8,131,112 8,368,793 9,716,643 10,794,057 7,338,828 7,067,526 0 0 0  Non-spendable 0 0 0 0 0 0 0 305,164 471,975 472,941  Unassigned 0 0 0 0 0 0 0 7,247,383 7,378,411 9,687,736 Total General Fund 8,412,831 8,185,744 8,389,084 9,926,021 10,794,057 7,758,316 7,341,252 7,552,547 7,850,386 10,160,677 All OTHER GOvERNMENTAl FuNdS  Reserved 7,198,519 4,821,174 2,719,998 0 0 0 0 0 0 0  Unreserved, reported in:   Special revenue funds 7,282,391 9,253,467 10,208,277 13,445,092 12,481,406 11,097,739 8,094,802 0 0 0   Debt service funds 0 0 1,811,861 2,027,633 682,960 167,169 1,927,247 0 0 0   Capital projects funds 8,971 0 1,589,018 1,087,826 1,309,774 1,373,469 4,945,265 0 0 0  Non-spendable 0 0 0 0 0 0 0 0 0 14,986  Restricted 0 0 0 0 0 0 0 16,855,664 15,568,787 14,859,784  Committed 0 0 0 0 0 0 0 2,263,088 3,217,309 4,020,435  Assigned 0 0 0 0 0 0 0 417,479 428,823 670,223  Unassigned 0 0 0 0 0 0 0 (382,937)(498,110)(601,324) Total All Other Governmental Funds 14,489,881 14,074,641 16,329,154 16,560,551 14,474,140 12,638,377 14,967,314 19,153,294 18,716,809 18,964,104 * This schedule was modified with the implementation of GASB 54, effective fiscal year 2011, which affected the categories used to report fund balances. Source: Comprehensive Annual Financial Report of the city. Comprehensive Annual Financial Report 157 CHANGES iN FuNd BAl ANCES OF GOvERNMENTAl FuNdS FOR THE l AST TEN Fi SCAl yEARS (modified accrual basis of accounting) Fiscal year 2004 Fiscal year 2005 Fiscal year 2006 Fiscal year 2007 Fiscal year 2008 Fiscal year 2009 Fiscal year 2010 Fiscal year 2011 Fiscal year 2012 Fiscal year 2013 revenueS  Taxes 9,775,325 10,334,295 10,817,886 11,553,044 12,137,977 12,405,880 16,078,788 16,753,457 17,767,128 18,208,253  City gas tax*0 0 0 0 0 0 0 0 0 830,031  Franchise fees 2,431,324 2,670,050 3,042,187 3,835,007 4,551,169 3,887,078 4,548,520 4,375,420 4,880,635 5,724,192  Special assessments 568,971 373,141 1,421,765 163,379 120,678 87,208 284,202 40,164 38,776 43,170  Licenses and permits 3,668,335 4,442,222 4,852,719 3,011,348 1,871,841 1,282,438 1,229,880 2,590,516 2,444,551 3,175,118  Intergovernmental revenues 5,456,940 5,134,991 5,285,744 5,970,228 7,807,667 7,560,542 6,358,393 9,834,646 6,586,757 6,040,986  Charges for service 1,819,907 2,354,372 2,689,485 3,989,491 3,469,358 2,536,590 3,083,087 3,127,307 3,059,653 6,632,779  Fines and forfeitures 613,785 646,406 702,469 850,335 847,069 804,128 915,524 907,216 1,092,296 1,038,948  Interest earnings 880,070 836,359 903,637 1,507,065 1,475,808 930,382 300,126 287,284 262,080 254,237  Miscellaneous 420,390 280,411 502,951 283,712 747,532 513,392 249,180 47,489 633,575 206,443 Total Revenues 25,635,047 27,072,247 30,218,843 31,163,609 33,029,099 30,007,640 33,047,700 37,963,499 36,765,451 42,154,157 expendItureS Current Operating:  Community services 9,014,200 10,750,344 11,377,118 11,918,362 13,801,110 18,214,907 19,418,498 19,182,018 19,638,469 18,636,382  Public works 2,104,617 2,172,875 2,273,569 2,383,009 2,757,289 3,463,390 5,129,767 6,059,692 6,354,390 6,551,980  Community development 3,891,491 4,316,517 4,709,433 4,772,780 5,191,797 7,184,355 4,674,008 3,975,257 3,902,223 3,937,089  Policy and administration 4,051,476 4,334,147 4,564,400 4,717,967 397,510 907,661 787,209 711,743 819,034 711,385  Citywide support 0 0 0 23,000 0 796,995 0 0 0 0 Debt Services:  Principal 1,300,979 1,285,275 1,526,286 166,571 922,907 794,853 875,513 2,590,456 1,894,125 1,992,500  Interest 951,072 748,417 697,305 630,916 454,403 530,403 557,061 67,294 1,652,691 1,264,795  Refunded bonds 0 0 0 0 0 0 0 8,836,046 0 0  Refunding bond issuance cost 0 0 0 0 0 0 0 81,236 0 0 Capital Outlay 13,210,578 4,106,999 2,352,123 3,543,422 6,319,092 3,940,781 7,373,043 19,247,942 4,037,766 6,357,256 Total Expenditures 34,524,413 27,714,574 27,500,234 28,156,027 29,844,108 35,833,344 38,815,099 60,751,684 38,298,698 39,451,387 Excess (deficiency) of revenues over (under) expenditures (8,889,366)(642,327)2,718,609 3,007,582 3,184,991 (5,825,705)(5,767,399)(22,788,185)(1,533,247)2,702,770 OTHER FiNANC iNG SOuRCES (uSES)  Proceeds from bond/long-term note 1,947,678 0 0 0 0 0 7,250,000 26,214,495 0 0  Operating transfers in 2,581,668 2,893,435 4,046,802 2,667,149 4,896,127 3,342,328 4,965,010 16,977,142 6,969,663 4,735,619  Operating transfers out (2,581,668)(2,893,435)(4,046,802)(2,667,149)(9,299,491)(2,357,267)(3,688,210)(16,006,177)(5,575,062)(4,880,803) Total Other Financing Sources (uses)1,947,678 0 0 0 (4,403,364)985,061 8,526,800 27,185,460 1,394,601 (145,184) Net Change in Fund balances (6,941,688)(642,327)2,718,609 3,007,582 (1,218,373)(4,840,644)2,759,401 4,397,275 (138,646)2,557,586 Debt service as a percentage of non-capital exepnditures 11.81%9.43%9.70%3.35%6.22%4.34%4.71%8.88%11.55%10.84% * City gas tax was broken out of intergovernmental beginning in fiscal year 2013. Source: Comprehensive Annual Financial Report of the city. 158 Comprehensive Annual Financial Report GOvERNMENTAl REvENuES For the pa S t ten FIScal yearS Program Revenues General Revenues Fy Ended June 30 Charges for Services Operating Grants and Contributions Capital Grants and Contributions Taxes Franchise Fees intergovern- mental Revenues interest Earnings donated Assets Gain (loss) on disposition of Capital Assets Miscellaneous Total 2004 16,561,227 252,805 6,077,864 9,763,281 2,431,324 5,204,135 1,317,638 0 0 445,899 42,054,173 2005 16,623,924 285,888 0 10,273,332 2,670,050 4,878,101 1,464,034 0 0 418,631 36,613,960 2006 17,477,491 133,509 6,077,864 10,804,524 3,042,180 5,152,236 1,502,512 0 0 608,370 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 0 0 449,579 31,552,608 2008 5,402,574 739,171 3,103,521 12,237,185 4,551,169 2,912,647 1,503,619 0 0 (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 0 0 626,075 31,111,828 2010 3,583,366 199,506 305,398 16,070,846 4,548,420 6,993,245 308,853 0 0 376,884 32,386,618 2011 4,852,985 6,156,004 230,500 13,604,285 4,375,420 2,838,802 296,964 0 0 5,284,426 37,999,386 2012 4,875,400 6,952,717 1,049,774 15,182,467 4,880,635 4,798,949 283,273 0 0 1,583,989 39,607,204 2013 7,058,395 6,924,053 2,173,900 15,338,744 5,855,956 2,500,240 248,812 0 0 316,508 40,416,608 Comprehensive Annual Financial Report 159 GOvERNMENTAl E xPENSES By FuNCTiON For the pa S t ten FIScal year S Fy Ended June 30 Community Services Public Works Community develop Policy and Admin long-term debt Sewer Storm Water Water Total 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 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 2012 20,025,189 12,489,448 4,709,750 2,117,198 1,125,259 1,743,929 1,649,718 7,807,706 51,668,197 2013 19,085,777 8,585,063 3,988,011 1,339,254 1,226,774 2,114,054 2,045,399 11,989,337 50,373,669 160 Comprehensive Annual Financial Report GENERAl GOvERNMENTAl RE vENuES By SOuRCES — BudGETARy BASi S For the pa St ten FIS cal year S Fy Ended June 30 Taxes Franchise Fees licenses and Permits intergovern- mental Revenues Charges for Services Fines and Forfeitures Misc. Revenues *Total 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 2012 17,767,128 4,880,635 2,444,551 6,586,747 3,059,653 1,092,296 934,431 36,765,451 2013 18,208,253 5,724,192 3,175,118 6,871,017 6,632,779 1,038,948 503,850 42,154,157 * Includes special assessments collections, interest earnings and private donations. Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types. Comprehensive Annual Financial Report 161 GENERAl GOvERNMENTAl E xPENdiTuRES By FuNCTiON — BudGETARy BASiS For the pa St ten FIS cal year S Fy Ended June 30 Community Services Public Works and Community development Policy and Administration Citywide Support Functions, Capital Projects and Other debt Services Total 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 2012 19,638,468 10,256,613 819,034 4,037,766 3,546,816 38,298,697 2013 18,636,382 10,489,069 711,385 6,357,256 3,257,295 39,451,387 Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types. 162 Comprehensive Annual Financial Report market value and aSSeSSed value oF taxaBle property For the pa St ten FIScal year S Assessed value Fy Ended June 30 Real Property Personal Property Public utility Property Total Assessed value Total direct Tax Rate * Estimated Real Market value (RMv) Assessed to value as a % of RMv 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 2.75 7,449,594,674 61.38% 2009 4,306,936,640 247,691,980 187,315,080 4,741,943,700 2.70 8,161,684,333 58.10% 2010 4,476,784,320 249,636,920 187,721,070 4,914,142,310 2.78 7,738,192,442 63.51% 2011 4,605,287,760 236,758,507 186,625,460 5,028,671,727 2.79 7,260,251,256 69.26% 2012 4,740,820,190 233,150,042 185,094,100 5,159,064,332 3.86 6,916,823,794 74.59% 2013 4,879,417,110 234,122,196 168,258,100 5,281,797,406 4.28 6,727,550,189 78.51% a SSeSSed value By type for the fiscal year ended 2013 Real Property 92% Personal Property 5% Public utility Property 3% Comprehensive Annual Financial Report 163 PROPERT y TA x RATES – diRECT ANd OvERl APPiNG GOvERNMENTS (dollars per $1,000 of assessed value rounded to the nearest cent) For the pa S t ten FIScal yearS City of Tigard Overlapping Rates Fy Ended June 30 direct Rates urban Renewal Phase in Total Metzger Water district Combined Washington County Tualatin School district No. 23-4 Beaverton School district No. 48-4 Tualatin valley Fire and Rescue district County Rural Fire district No. 2 Portland Community College Hillsboro School district No. 1-J Other Agencies Total direct and Overlapping RatesPerm Rate debt Services 2004 2.51 0.17 0 0 2.68 0.22 2.90 7.88 8.01 1.83 1.12 0.51 0 0.62 25.77 2005 2.51 0.19 0 0 2.70 0.13 2.87 7.79 6.60 1.83 1.12 0.51 0 0.62 24.16 2006 2.51 0.21 0 0 2.72 0 2.84 7.85 7.98 1.82 1.12 0.50 0 0.63 25.45 2007 2.51 0.22 0 0 2.73 0 2.45 7.67 6.29 1.82 1.12 0.49 0 0.60 23.17 2008 2.51 0.23 0.01 0 2.75 0 2.44 7.59 6.74 1.56 1.12 0.28 0 0.61 23.09 2009 2.51 0.18 0.01 0 2.70 0 2.39 7.52 6.56 1.54 1.12 0.50 0 0.70 23.04 2010 2.51 0.21 0.06 0 2.78 0 2.98 7.65 6.88 1.89 1.69 0.63 0 0.75 25.26 2011 2.51 0.21 0.07 0 2.79 0 2.98 7.37 6.78 1.88 1.69 0.64 0 0.81 24.95 2012 2.51 0.45 0.06 0.83 3.86 0 2.97 7.44 6.86 1.92 1.69 0.60 7.47 1.88 34.69 2013 2.51 0.44 0.06 1.27 4.28 0 2.96 7.38 6.77 1.91 1.69 0.66 7.50 0.72 33.87 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 cannot 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 benefitted property) and distributes taxes collected at the 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 2012 ranged from $13.31/$1,000 to $16.60/$1,000. Source: Washington County Department of Assessment and Taxation. 164 Comprehensive Annual Financial Report Comprehensive Annual Financial Report 165 prIncIpal property taxpayerS FOR CuRRENT ANd NiNE yEARS AGO 2013 2004 Taxpayers Taxable Assessed value Rank Percentage of Total City Assessed value Taxable Assessed value Rank Percentage of Total City Assessed value Pacific Realty Associates 194,703,088 1 3.77%143,381,150 1 3.82% PPR Washington Square LLC 126,293,895 2 2.45%80,092,343 2 2.13% Lincoln Center LLC 84,195,930 3 1.63%68,331,810 3 1.82% Frontier Communications 63,146,947 4 1.22%52,296,628 4 1.39% Walton CWOR Park LLC 42,097,965 5 0.82%0 0 0 Portland General Electric 31,573,474 6 0.61%26,378,000 7 0.70% Comcast Corporation 30,121,018 7 0.58%0 0 0 Northwest Natural Gas 27,348,138 8 0.53%22,008,100 9 0.59% Constance Robinson (Trust)25,391,826 9 0.49%22,980,660 8 0.61% Macy’s Department Stores Inc.23,004,621 10 0.45%0 0 0 Calwest Industrial Holdings, LLC 0 0 0 30,253,710 5 0.81% Sprint Spectrum 0 0 0 27,083,650 6 0.72% Portland Hotel Association (Embassy Suites)0 0 0 21,862,600 10 0.58% Total 647,876,902 12.56%494,668,651 13.17% Source: Washington County Assessment and Taxation records. 166 Comprehensive Annual Financial Report property tax levIeS and collectIonS For the pa S t ten FIScal yearS Fy Ended June 30 Total Tax levy Current Tax Collections Percent of levy Collections delinquent Tax Collections Total Tax Collections Percent Total Tax Collections to Tax levy Outstanding delinquent Taxes Percent delinquent Taxes to Tax levy 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% 2012 15,262,018 14,519,683 95.14%236,074 14,755,757 96.68%722,358 4.73% 2013 15,577,974 14,874,217 95.48%227,439 15,101,656 96.94%690,493 4.43% 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 percent per month on delinquent taxes. Tax liens are foreclosed after three year’s delinquencies. Taxpayers receive a discount of 3 percent for payment in full by November 15 and 2 percent for payment of two-thirds of the total taxes due. cIty property taxeS levIed 2004 2005 2006 2007 2008 2009 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 2010 2011 2012 2013 16,000,000 18,000,000 Comprehensive Annual Financial Report 167 SpecIal aSSeSSment collectIonS For the pa S t ten FIScal year S Fy Ended June 30 Current Assessments due (1) Assessment Collected (2) Ratio of Collections to Amount due Assessments Added Total Outstanding Assessments 2004 637,900 557,911 87.46%0 3,471,643 2005 598,804 373,141 62.31%0 3,074,031 2006 821,321 1,421,765 173.11%0 1,639,875 2007 937,916 163,379 17.42%0 1,461,838 2008 116,194 120,678 103.86%0 1,266,871 2009 23,100 87,208 377.52%0 1,178,745 2010 74,400 284,202 381.99%0 968,943 2011 179,200 40,164 22.41%0 854,377 2012 38,776 28,365 73.15%0 826,012 2013 62,500 118,888 190.22%196,615 903,739 (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. 168 Comprehensive Annual Financial Report RATiO OF ANNuAl dEBT SERviCE ExPENdiTuRES FOR lONG-TERM dEBT TO GENERAl GOvERNMENTAl ExPENdiTuRES For the pa S t ten FIScal year S Fy Ended June 30 Principal interest Total debt Service Total General Governmental Expenditures Percent of debt Service to Total General Expenditures 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% 2012 1,894,126 1,652,691 3,546,817 38,298,698 9.26% 2013 1,992,500 1,264,795 3,257,295 39,451,387 8.26% (1) Includes bond anticipation notes principal and interest. (2) Includes bond anticipation notes interest and certificates of participation principal and interest. Comprehensive Annual Financial Report 169 R ATiO OF NET GENERAl BONdEd dEBT TO ASSESSEd vAluE ANd NET BONdEd dEBT PER CAPiTA For the pa St ten FIS cal year S Fy Ended June 30 Population Assessed value Gross General Obligation Bonded debt Outstanding less debt Service Monies Available Net Bonded debt Ratio of Net Bonded debt to Assessed value Net Bonded debt Per Capita 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 2012 48,415 5,159,064,332 30,735,000 263,629 30,471,371 0.59%629.38 2013 48,695 5,281,797,406 29,397,612 592,612 28,805,000 0.55%591.54 Source: City budget documents, Comprehensive Annual Financial Reports of the city and Washington County Department of Assessment and Taxation. 170 Comprehensive Annual Financial Report COMPuTATiON OF diRECT ANd OvERl APPiNG GENERAl OBliGATiON dEBT for the fiscal year ended June 30, 2013 Jurisdiction Net debt Outstanding Percent Applicable inside City of Tigard* Amount Applicable inside City of Tigard Tigard/Tualatin School District #23-J 122,453,239 46.6300%57,097,986 Metro 248,275,000 3.6300%9,000,465 Beaverton School District #48 450,175,000 3.9700%17,857,542 Portland Community College 176,450,000 4.5200%7,978,716 Washington County 26,765,000 10.8500%2,904,805 Tualatin Valley Fire & Rescue District 45,050,000 12.3200%5,549,349 Sub Total of Overlapping debt 1,069,168,239 100,388,863 City of Tigard 30,031,061 100.0000%28,805,000 Total for Overlapping debt 1,099,199,300 129,193,863 * The city of Tigard does not calculate this percentage; it is provided by the State of Oregon. Source: Oregon State Treasury Debt Management Division. Comprehensive Annual Financial Report 171 COMPuTATiON OF lEGAl dEBT MARGiN For the laSt ten FIScal yearS 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Debt limit 154,556,716 162,072,994 122,637,144 130,339,955 137,170,735 142,258,311 147,424,269 150,860,152 154,771,930 158,453,922 Total net debt applicable to limit 14,428,648 12,060,540 9,289,259 9,724,836 10,547,958 10,011,895 16,708,100 32,300,000 30,735,000 28,800,576 legal debt Margin 140,128,068 150,012,454 113,347,885 120,615,119 126,622,777 132,246,416 130,716,169 118,560,152 124,036,930 129,653,346 Total net debt applicable to the limit as a percentage of debt limit 9.34%7.44%7.57%7.46%7.69%7.04%11.33%21.41%19.86%18.18% Legal Debt Margin Calculation at June 30, 2013  True cash value (2012–2013) 5,281,797,406 3% debt limit (3% of total property RMv)158,453,922 Debt applicable to limit:  Gross bonded debt 30,031,061   Excludable debt – Bancroft improvement bonds and bond premium (1,230,485)  Debt subject to limitation 28,800,576 legal debt Margin – Amount Available for Future indebtedness 129,653,346 Total Net debt Applicable to the limit as a Percentage of debt limit 18.18% Note: Pursuant of Oregon Revised Statutes 223.295 outstanding general obligation debt is limited to 3 percent of real market value. Source: Washington County Department of Assessment and Taxation. 172 Comprehensive Annual Financial Report ratIo oF deBt By type For the pa S t ten FIScal year S Governmental Activities Business-type Activities Fy Ended June 30 Population General Obligation Bonded debt Bancroft Bonded debt long-term Note Payable debt Notes Payable debt Revenue Bonds* Total Primary Government (1) Percentage of Personal income ** (2) Per Capita 2004 44,650 16,239,519 3,703,071 1,892,200 0 0 21,834,790 2.09%483.82 2005 45,500 15,164,807 3,104,267 1,681,637 0 0 19,950,711 1.44%446.82 2006 46,300 11,572,205 2,282,946 1,465,007 0 0 15,320,158 1.08%330.10 2007 46,400 11,066,369 1,345,030 1,242,187 0 0 13,653,586 0.96%294.26 2008 46,715 10,547,958 1,301,230 1,012,986 0 0 12,862,174 0.90%275.33 2009 47,460 10,011,895 1,278,130 777,296 2,853,868 0 14,921,189 1.03%314.40 2010 47,595 16,708,100 1,203,730 529,978 2,853,868 0 21,295,676 1.47%447.44 2011 48,035 32,597,213 1,024,530 270,925 5,953,868 0 39,846,536 2.72%829.53 2012 48,415 30,735,000 966,239 0 2,398,000 97,720,000 131,819,239 8.92%2,722,69 2013 48,695 28,805,000 903,739 0 2,293,486 97,720,000 129,722,225 8.73%2,663.97 N/A = Not available. * Revenue bonds issued for improvements to the Tigard Water Service Area (TWSA) are liabilities of the City of Tigard, but were not issued as full faith and credit obligation. Debt service on these bonds will be paid by customers of TWSA, which includes residents in the cities of TIgard, Durham and King City, and an unincorporated area of Washington County. ** Personal income is not available for the City of Tigard, so per capita income for Washington County is used. Sources: City budget documents, Comprehensive Annual Financial Reports of the city and Washington County Department of Assessment and Taxation. Comprehensive Annual Financial Report 173 dEMOGRAPHiC STATiSTiCS For the pa S t ten FIScal year S Fy Ended June 30 (1) Population Assessed value of Taxable Property Per Capita (3) School Enrollment (4) Per Capita income (4) Total Personal income (thousands of dollars) (2) unemploy- ment Rate Portland Metro Area 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% 2012 48,415 106,559 12,691 30,522 1,477,723 8.20% 2013 48,695 108,467 12,688 32,527 1,583,902 7.50% Sourcfes 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 students 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 this 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 2004 2005 2006 2007 2008 2009 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2010 2011 2012 2013 40,000 45,000 50,000 = Population = School Enrollment 174 Comprehensive Annual Financial Report prIncIpal employerS FOR CuRRENT ANd NiNE yEARS AGO 2013 2004 Employer Employees Rank Percentage of Total City Employment Employees Rank Percentage of Total City Employment Capital One 861 1 3.05% Tigard-Tualatin School District 779 2 2.76% Nordstrom 428 3 1.52%502 2 2.18% Oregon Public Employees Retirement 396 4 1.40%461 3 2.01% Macy’s Department Stores Inc 390 5 1.38% Costco Wholesale Corporation 300 6 1.06% City of Tigard 255 7 0.90% WinCo 176 8 0.62% JC Penny 144 9 0.51% Renaissance Credit Services 1,116 1 4.86% Servicemaster Building Maintenance 250 4 1.09% Rockwell Collins Flight Dynamics 249 5 1.08% Total 3,729 10.16%2,578 11.22% Source: City of Tigard Adopted Budget and Tigard Chamber of Commerce. Comprehensive Annual Financial Report 175 property value and conStructIon For the la St ten FIScal yearS Commercial Construction (1)Residential Construction (1) Fy Ended June 30 Number of Permits value Number of Permits value 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 2012 5 2,589,566 104 (2)27,794,839 2013 8 20,053,155 174 (2)41,954,242 (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 included amounts from Urban/Washington County as well as City of Tigard. 176 Comprehensive Annual Financial Report Full-TiME EQuivAl ENT CiT y GOvERNMENT EMPlOyEES By FuNCTi ON For the pa S t ten FIScal yearS Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 communIty ServIceS  Police 76.00 77.00 78.00 80.00 93.00 93.00 90.10 90.10 91.10 84.50  Library 28.90 33.20 33.20 34.20 41.90 41.90 38.80 38.80 38.80 34.80 puBlIc workS  Administration 7.00 7.85 7.60 7.60 8.85 8.85 9.35 9.75 8.75 9.00  Parks maintenance 11.00 10.75 10.75 10.75 9.75 9.75 9.75 9.75 9.75 9.75  Street maintenance 8.50 8.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00  Healthy streams 0 0 0 0 0 0 0 0 0 1.00  Fleet management 3.25 3.00 2.50 2.50 2.50 2.50 2.00 2.60 2.60 1.50  Property management 3.25 3.25 3.25 3.25 4.25 4.25 4.25 4.25 4.25 3.75  Engineering (a)15.50 15.50 15.50 10.50 10.50 10.50 11.80 11.80 11.80 12.00 communIty development  Administration 3.00 3.00 3.00 2.00 3.00 3.00 2.00 2.00 3.00 2.00  Building inspection 16.30 18.30 18.80 19.80 17.80 6.20 6.24 7.20 8.10 7.80  Development services 8.20 8.20 8.20 8.20 10.20 10.20 7.56 7.80 5.90 4.80  Community planning 5.00 5.00 7.00 8.00 7.00 7.00 7.00 7.00 9.00 9.00   Development engineering (b)0 0 0 5.00 5.00 4.00 1.60 0 0 0  Economic Development (c)0 0 0 0 1.00 1.00 1.00 1.00 1.50 1.00 polIcy and admIn  City management 4.00 3.80 3.80 3.80 5.30 5.30 4.50 4.50 4.20 4.00  Human resources 4.00 4.00 4.00 4.00 5.00 5.00 5.00 5.00 5.00 4.80  Information technology 6.00 6.00 7.00 8.00 7.00 7.00 7.00 7.00 7.00 6.30  Risk management 2.00 2.00 2.00 2.00 2.50 2.50 2.30 2.30 2.30 2.10  Finance administration 3.00 3.00 3.00 3.00 3.00 3.00 5.30 3.00 3.00 3.00  Finance operations 10.80 10.80 10.80 10.80 5.50 5.50 4.50 4.50 4.50 4.60  Utility billing (d)0 0 0 0 6.50 6.50 5.50 5.50 6.30 6.50  Design & Communications 7.30 7.30 7.30 7.30 4.50 4.50 3.05 3.05 3.25 3.05  Contracts & Purchasing (e)0 0 0 0 0 0 0 2.30 2.30 1.80  City Recorder/Records (f)0 0 0 0 3.00 3.00 3.25 3.25 3.35 4.15  Municipal court 3.00 3.00 3.00 3.00 3.25 3.25 3.50 3.75 3.75 3.65 other  Sanitary sewer 7.25 7.75 7.25 7.35 5.35 5.35 5.25 5.25 6.25 6.25  Storm sewer 7.75 8.25 7.25 6.35 7.10 7.10 7.00 7.00 6.25 5.25  Water 17.00 16.25 16.50 17.30 16.30 16.30 13.00 12.00 12.75 12.50 Total 258.00 265.20 266.70 271.70 296.05 283.45 267.60 267.45 271.75 255.85 Source: City of Tigard FInance Department (a) Engineering was budgeted with Development Services until FY 2009–2010. (b) Development Engineering was budgeted with Capital Construction & Transportation Engineering until FY 2006–2007. (c) Downtown Redevelopment was budgeted with Long Range Planning until FY 2008–2009. (d) Utility Billing was budgeted with Financial Operations until FY 2007–2008. (e) Contracts & Purchasing was budgeted with Finance Administration until FY 2010–2011. (f) City Recorder/Records was budgeted with Office Services until FY 2008–2009. Comprehensive Annual Financial Report 177 OPERATiNG iNdiCATORS By FuNCTiON/PROGRAM For the pa S t ten FIScal yearS Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 GOvERNMENTAl ACTiviTiES Community Services:  Police – # traffic citations 6,815 6,006 6,800 6,979 6,383 6,925 9,101 7,021 8,308 8,939  Police – # calls for service 49,333 53,754 51,062 51,000 51,377 50,115 51,158 49,358 52,226 52,420  Library – # items 115,618 125,570 143,500 156,500 176,210 193,710 216,110 237,110 244,154 250,454   Library – materials checked out each year 685,000 728,250 850,000 918,540 1,131,093 1,249,462 1,462,304 1,507,248 1,522,422 1,459,334 Public Works:  Acres of park land maint 170 176 176 180 184 189 189 233 243 248   Crack sealing completed annually (linear feet)98,000 150,000 151,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000   Vehicles maint to industry standard 140 144 148 150 153 158 160 149 149 148 Community Development:  # inspections (Tigard)14,200 21,000 19,550 23,000 23,500 7,778 8,700 9,990 10,000 12,500  # permits (all types) Tigard 3,300 3,600 3,351 4,500 4,850 2,278 3,025 3,220 3,047 3,049  # development apps 400 430 374 507 450 508 370 370 381 357 Policy and Administration:  # job applications 1,800 1,900 2,000 2,000 2,300 2,215 1,900 1,000 1,100 2,500  Laptops/computers 325 445 500 540 435 451 488 491 491 503   Insured value of city’s real property (in millions)27.9 38.8 40.8 46.2 73.5 78.2 81.6 81.8 81.8 81.8  # utility bills sent **106,055 109,854 112,775 113,502 115,574 114,500 116,800 176,274 236,389 238,400  Average fine collected 68 78 97 90 94 90 90 126 126 140 BuSiNESS-TyPE ACTiviTiES Sewer:   Miles of sewer lines cleaned (annual goal)53.2 48.5 50.8 51.6 53.4 46.6 40.7 41.0 41.0 41.5   Miles of sewer lines video inspected (annual goal)20.7 26.1 21.8 22.1 23.0 23.2 23.3 23.0 23.0 23.7 Storm Water:   Miles of storm sewer lines cleaned 30.2 13.7 28.5 29.6 43.6 30.2 30.6 31.0 31.0 32.0  # water quality facilities***60 62 70 73 75 78 72 90 90 125   Total number catch basins cleaned 3,867 3,915 4,045 4,150 4,915 4,437 4,437 4,368 4,368 4,368 Water:  # of accounts 16,712 17,022 17,300 17,400 17,870 17,900 17,900 18,129 18,265 18,350 * Fiscal year 2002–2003 was the first year that the new reporting requirements of GASB 34 were implemented at the City of Tigard. ** City of Tigard started monthly utility billing in January 2011. *** GIS data improvement. Source: City of Tigard Finance Department. 178 Comprehensive Annual Financial Report capItal aSSet S StatIStIc S By FunctIon For the pa S t ten FIScal year S Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 GOvERNMENTAl ACTiviTiES Community Services:  Police stations 1 1 1 1 1 1 1 1 1 1  Library buildings 1 1 1 1 1 1 1 1 1 1 Public Works:  Number of parks 13 13 13 13 13 14 14 14 18 20  Acres of park/greenspaces 347.0 347.0 347.0 348.0 348.0 396.0 396.0 435.4 447.0 493.0  Miles of streets 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 Community Development:  See note Policy and Administration:   City-owned building facilities 5 5 5 5 5 5 5 5 5 5 BuSiNESS-TyPE ACTiviTiES Sewer:   Total miles of sanitary sewer lines 146.6 148.0 152.8 160.4 160.4 161.0 162.8 164.5 166.1 166.9 Storm Water:   Total miles of storm sewer lines*110.6 113.0 116.6 130.9 131.0 131.0 131.0 131.0 131.0 126.0   Number of water quality facilities***60 62 62 77 77 79 79 92 92 125 Water:  Water mains in miles 210 220 224 225.1 225.1 225.1 235.0 245.0 248.0 248.0  Number of reservoirs 13 13 13 13 13 13 13 13 13 13 Source: City of Tigard Finance Department. * GIS data improvement. Note: No capital assets indicators are available for Development Services functions. Comprehensive Annual Financial Report 179 Audit Comments and Disclosure Requirements Comprehensive Annual Financial Report 181 182 Comprehensive Annual Financial Report