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City of Tigard Budget - FY 2015-2016ADOPTED BUDGET 13125 SW Hall Boulevard | Tigard, OR 97223 | www.tigard-or.gov FISCAL YEAR 2015–2016 ON THE COVER The cover picture was taken by Meghan Verhey, staff member at the City of Tigard. It depicts the completed Main Street Green Street project in downtown Tigard. The updates include improved sidewalks, pedestrian safety, green street features and updated artwork. Also pictured is one of the glass baskets funded by the Downtown Alliance. CITY OF TIGARD, OREGON FY 2015-16 ADOPTED BUDGET BUDGET COMMITTEE Bill Bigcraft Mayor John L. Cook Don Fisher Councilor John Goodhouse Melody Graeber Councilor Marland Henderson Julie Plotz Councilor Jason Snider Clifford Rone Councilor Marc Woodard Zoe Monahan, Alternate CITY EXECUTIVE STAFF City Manager Marty Wine Assistant City Manager Liz Newton Central Services Director Nadine Robinson Chief of Police Alan Orr Community Development Director Kenny Asher Finance and Information Services Director Toby LaFrance Human Resources Director Dana Bennett Library Director Margaret Barnes Public Works Director Brian Rager Assistant to the City Manager/Risk Manager Loreen Mills City Attorney Jordan Ramis PC Prepared by the following City of Tigard Staff: Marty Wine, City Manager Liz Newton, Assistant City Manager Toby LaFrance, Finance & Information Services Director Amy Lawson, Accounting Supervisor Carissa Collins, Senior Management Analyst Liz Lutz, Confidential Executive Assistant A special thank you to departments and staff for their contributions to the Budget Document The Government Finance Officers Association of the United States and Canada (GFOA) present- ed an award of Distinguished Budget Presentation to the City of Tigard for its annual budget for the fiscal year beginning July 1, 2014. In order to receive the award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a commu- nication device. The award is valid for a period of one year only. We believe our current budget continues to con- form to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. TABLE OF CONTENTS INTRODUCTION 2015-2016 Budget Transmittal .................................................................................................... 1 Council Goals ............................................................................................................................... 7 City Information ......................................................................................................................... 10 Citywide Organization Chart - By Program ........................................................................... 13 City of Tigard Map ..................................................................................................................... 14 READER’S GUIDE User’s Guide to the Budget Document .................................................................................. 15 Budget Process ........................................................................................................................... 19 Basis of Budgeting ...................................................................................................................... 22 Fund Structure ............................................................................................................................ 23 Program Budget Structure ........................................................................................................ 24 BUDGET SUMMARY Where the money comes from... .............................................................................................. 27 Where the money goes... ........................................................................................................... 28 Fund Balance .............................................................................................................................. 32 Ending Fund Reserves Summary by Fund ............................................................................. 33 Summary of All Funds ............................................................................................................... 34 Summary of Contingency .......................................................................................................... 40 Comprehensive Long Term Financial Forecast .................................................................... 41 REVENUE ANALYSIS Current Revenue Summary by Fund ....................................................................................... 51 General Fund .............................................................................................................................. 52 Assessed Valuation ..................................................................................................................... 53 Property Tax Revenue ............................................................................................................... 54 State Revenue Sharing ............................................................................................................... 55 Franchise Fee .............................................................................................................................. 57 Enterprise Funds - User Fees ................................................................................................... 59 Connection Fees ......................................................................................................................... 60 Permit Revenue .......................................................................................................................... 61 County Shared Revenue ............................................................................................................ 62 Fine and Forfeiture Revenue .................................................................................................... 63 Interest Earnings ........................................................................................................................ 64 Interfund Transfers .................................................................................................................... 65 PROGRAM SUMMARIES Expenditure Summary by Program ......................................................................................... 73 Operating Budget Summary ..................................................................................................... 74 Operating Budget History......................................................................................................... 75 Staffing Levels ............................................................................................................................ 78 COMMUNITY SERVICES PROGRAM Community Services Organization Chart ............................................................................... 81 Expenditure/FTE Summary .................................................................................................... 83 Police Organization Chart/FTE Summary ................................................................................. 84 Police Administration ......................................................................................................... 85 Police Operations ................................................................................................................ 92 Police Support Services .......................................................................................... 98 Library Organization Chart/FTE Summary ............................................................................... 106 Library Administration ..................................................................................................... 107 Library Reader Services .................................................................................................... 113 Library Technical Services ............................................................................................... 118 Library Circulation ............................................................................................... 121 Social Services and Community Events ......................................................................... 125 PUBLIC WORKS PROGRAM Public Works Organization Chart ......................................................................................... 129 Expenditure/FTE Summary .................................................................................................. 131 Public Works Public Works Administration .......................................................................................... 132 Parks Utility ........................................................................................................................ 137 Parks and Grounds-Historical ......................................................................................... 142 Street Maintenance ............................................................................................................ 144 PW Engineering ................................................................................................................ 149 Healthy Streams-Historical .............................................................................................. 154 Fleet Maintenance-Historical ........................................................................................... 155 Property Management-Historical .................................................................................... 156 Water ................................................................................................................................... 157 Sanitary Sewer .................................................................................................................... 163 Stormwater ......................................................................................................................... 168 Street Lights and Signals .................................................................................................. 172 COMMUNITY DEVELOPMENT PROGRAM Community Development Organization Chart ...................................................................175 Expenditure/FTE Summary ..................................................................................................177 Community Development Community Development Planning ...............................................................................178 Building ..............................................................................................................................184 Economic Development ..................................................................................................189 Development Services-Historical ....................................................................................195 Community Planning-Historical......................................................................................196 POLICY AND ADMINISTRATION PROGRAM Policy and Administration Organization Chart ...................................................................197 Expenditure/FTE Summary ..................................................................................................198 Mayor & Council Organization Chart/Expenditure Summary ..................................................................199 City Management Organization Chart/FTE Summary ..............................................................................208 City Manager’s Office ......................................................................................................209 Human Resources ............................................................................................................213 Risk Management .............................................................................................................218 Central Services Organization Chart/FTE Summary ...............................................................................222 Design & Communications .............................................................................................223 Municipal Court .................................................................................................................227 City Recorder/Records .....................................................................................................230 Fleet Maintenance .............................................................................................................234 Property Management.......................................................................................................237 Finance and Information Services Organization Chart/FTE Summary ...............................................................................240 Finance and Information Services Administration ......................................................241 Financial Operations .........................................................................................................245 Utility Billing .....................................................................................................................248 Information Technology ..................................................................................................251 Contracts and Purchasing.................................................................................................255 CAPITAL IMPROVEMENT PLAN Capital Improvement Plan Summary ....................................................................................259 Impact of Capital Improvement Plan on Operating Costs ................................................261 Prioritization and Development of the CIP .........................................................................265 Streets .........................................................................................................................................269 Parks ...........................................................................................................................................278 Water ..........................................................................................................................................290 Sanitary Sewer ...........................................................................................................................305 Stormwater ................................................................................................................................310 Facilities .....................................................................................................................................322 Projects By Fund ......................................................................................................................325 FY 2016-2021 Unfunded Projects .........................................................................................328 DEBT SERVICE Debt Service ..............................................................................................................................331 Debt Service Summary ............................................................................................................332 Outstanding Debt Issues .........................................................................................................333 Debt Service Schedules General Obligation Bond-Library ..........................................................................................334 General Obligation Bond-Parks .............................................................................................335 General Obligation Bonds Summary ....................................................................................336 Tigard Transportation Build America Bond ........................................................................337 Tigard Transportation Build America Bond Summary ......................................................338 Assessment-69th Avenue Local Improvement District .....................................................339 Assessment-Bancroft Improvement Bonds Summary .......................................................340 Water Revenue Debt-Water Revenue Bond 2012 ...............................................................341 Water Revenue Debt Water Revenue Bond 2015 ...............................................................342 Water Revenue Debt-ARRA Water Loan ............................................................................343 Water Revenue Debt Summary ..............................................................................................344 FUND SUMMARIES Fund Summaries Introduction ...............................................................................................345 General Funds General Fund .....................................................................................................................346 Enterprise Funds Sanitary Sewer Fund ..........................................................................................................350 Stormwater Fund ...............................................................................................................352 Water Fund .......................................................................................................................353 Water CIP Fund ................................................................................................................355 Water Debt Service Fund .................................................................................................357 Water Quality/Quantity Fund ........................................................................................358 Water SDC Fund ..............................................................................................................359 Special Revenue Fund Building Fund ................................................................................................................... 360 City Gas Tax Fund ............................................................................................................ 362 Criminal Forfeiture Fund ................................................................................................ 363 Electrical Inspection Fund ............................................................................................... 364 Gas Tax Fund ................................................................................................................... 365 Library Donations & Bequests Fund ............................................................................. 367 Parks Bond ......................................................................................................................... 368 Parks SDC Fund ................................................................................................................ 369 Parks Utility Fund ............................................................................................................. 370 Street Maintenance Fund ................................................................................................. 371 Transportation Development Tax .................................................................................. 372 Transportation SDC ......................................................................................................... 373 Underground Utility Fund ............................................................................................... 374 Urban Forestry Fund ........................................................................................................ 375 Debt Service Fund Bancroft Debt Services Fund .......................................................................................... 376 General Obligation Debt Service Fund ......................................................................... 377 Capital Projects Fund Facilities Capital Projects Fund ...................................................................................... 378 Parks Capital Fund ........................................................................................................... 379 Transportation CIP Fund ................................................................................................ 380 Internal Services Funds Central Services Fund ...................................................................................................... 381 Fleet/Property Management Fund ................................................................................ 383 Insurance Fund .................................................................................................................. 384 APPENDIX Schedule of Appropriations .................................................................................................... 385 Financial Policies ...................................................................................................................... 396 Glossary of Budget Related Terms ........................................................................................ 403 Advisory Committees .............................................................................................................. 407 Staffing Summary ..................................................................................................................... 410 Management/Professional Group Salary Schedule ............................................................ 412 Tigard Police Officers Assn. Salary Schedule ...................................................................... 416 Oregon Public Employees Union Salary Schedule ............................................................. 417 City of Tigard | ADOPTED BUDGET | FY 2015–2016 Tigard Skate Park, located near Tigard City Hall. Photo by SkateOregon INTRODUCTION - PAGE 1 FY 2015-2016 BUDGET TRANSMITTAL Transmittal to the Budget Committee and the Residents of Tigard I am pleased to present an adopted FY 2016 budget that continues to move Tigard toward a stronger financial future. The Current Path: Where We’ve Been and Where We are Heading The City of Tigard made reductions to its budget in 2010 and 2012 that reduced the level of core ser- vices that were available to the public we serve. Since FY 2009, Tigard’s population has grown from 46,715 to 50,444, representing a growth of 8 percent. Over the same period of time, Tigard’s work force has decreased from 296.05 FTE to 270.15 FTE in this Adopted Budget, representing a decrease of 9 percent. For the past three years, the budget transmittal to the community has also been that the city has worked diligently to become more efficient and contain cost growth to align with our (lesser) revenue growth. Since making these cuts, the city has given the best quality of city services possible to residents using the resources that we have. Some of our most visible services to the public, including time for police response to priority calls, open hours at the library, and public meeting space, are less available to Tigard residents today than they were seven years ago. Tigard faces the multiple financial challenges of most Oregon cities. The city has the second lowest permanent property tax levy rate ($2.51/1,000 AV) of any city in Washington County with a popula- tion over 5,000. That rate was set when Measure 50 was approved in 1997. Even with the work we have done to curb cost growth, our city expenditures still grow at a rate about one -half of one percent faster than our resources grow (4.0% vs 3.5%). Our residents say in community surveys that they wish for more of, and improved, city services than what is currently provided. And we are not keeping up with the maintenance of some of our infrastructure systems and public facilities. Still, the city has accomplished much with what we have, and I am proud of what we have been able to do with the resources with which we have been entrusted. The city has embarked on a new economic development effort, improving our finance, police, and library services using equipment and technolo- gy, and created a position to assist with public communication. This has been achieved with 25.9 few- er FTE in the city workforce than there were in 2008-2009, and the effects of inflation that lessen buy- ing power to hire additional employees. Still, considering the city’s workload measures since 2008, the city has maintained services of solid quality to the public. Challenges remain. Tigard has much to do to maintain and operate our systems well, and to fund the development, maintenance and operation of city park properties; and to repair and replace police, pub- lic works and city hall facilities that are still unfunded. In recent years the city has maximized possible revenues from franchise fees, updated many fees and charges to ensure that they track with inflation, kept utility rates current with future system needs, and updated system development charges. Even with the changes made to resources, there is little available to invest in new or expanded services. On our current course, the service that is provided today, we will be able to provide tomorrow. There is no room in the budget to add key staff to meet the needs of a growing city. Due to the discrepancy in growth rates of expenditures and revenues, the city’s General Fund expenditures will exceed reve- nues by FY 2019. The result of this course will be a slow and steady erosion of core city services such as library, police, parks, and community building. PAGE 2 - CITY OF TIGARD FY 2015-2016 BUDGET TRANSMITTAL Forming the Budget: What We Have Heard Council Goals: Tigard citizens and businesses are represented by our five member Mayor and Coun- cil. The Mayor and Council take the responsibility of listening to the community seriously and have set goals around the interests and input of Tigard residents and businesses. The goals are near term and achievable within the 2015-17 timeframe. By setting these goals for the city, your elected officials are responding to the city’s needs and directing staff to further these key goals. I am happy to report that this proposed budget advances all five goals. Strategic Plan: The Tigard City Council adopted the 2014-2034 vision for Tigard to become the most walkable city in the Pacific Northwest where people of all ages and abilities enjoy healthy and connected lives. Tigard has made progress on this vision in a short time. Some of the accom- plishments include:  Securing a $150,000 two-year Safe Routes to School grant  Lighter, Quicker, Cheaper projects that have filled sidewalk gaps on 135th Avenue, North Dakota Avenue and Spruce Street; as well as a pedestrian trail on Oak Way connecting to Metzger Elementary  Organized Tigard Walks Goal FY 2016 Budget 1 Provide Recreation Opportunities for the People of Tigard The Adopted Budget includes a new Recreation Coordinator posi- tion as well as funding for the Recreation Program Guide and Grants and Scholarships. 2 Make Downtown Tigard a Place Where People Want to Be While much of this goal is achieved as work of Tigard’s urban re- newal district the City Center Development Agency (CCDA), the city continues to fund all the staff that support the district and has included one-time funds to support the downtown Tigard Busi- ness Alliance. 3 Adopt Tigard Triangle Strategic Plan and Ena- ble Future Develop- ment Capacity This goal is in the beginning stages and is advanced through the work of existing staff in the Community Development Depart- ment as well as interdisciplinary staff in Public Works, Finance, and Administration. 4 Enable Groundbreak- ing in River Terrace by Summer 2015 River Terrace development is well underway. Tigard expects to process land use permits for over 1,000 new homes. A new Plan- ner position was added last fiscal year and the Building Division is adding a new Plans Examiner and a half-time, limited duration Ad- min Specialist to keep scanning and archiving of records up to date. Staff in Finance, Public Works, and Community Develop- ment will continue to implement the adopted River Terrace Com- munity Plan and Financial Strategies. 5 Expand Opportunities to Engage People in the Community Last year, Tigard hired a Communication Strategist. This new po- sition will continue to shepherd Tigard’s improvement in telling our story. Tigard has improved its on-line presence with an im- proved website. Also, council will continue to pursue regular 1x10 meetings to reach out to Tigard residents and businesses. INTRODUCTION - PAGE 3 FY 2015-2016 BUDGET TRANSMITTAL  Application for a Walk Friendly Assessment from the non-profit Walk Friendly Communi- ties. The Strategic Plan includes four goals. The key goal that impacts the budget is the goal to fund the vision while maintaining core services. On our current path, our core services will steadily decline and there is little room to fund the vision. A Bold Path: Funding the Vision While Maintaining Core Services The city and community acknowledge that unless new and additional resources are made available, the current situation will prevail. Status-quo, “level” budgets could be presented each year, never investing in any new or expanded services and steadily allowing core city services to continue to decline. Or, the city could take steps to make more resources available in order to provide those desired services. Every other year, Tigard conducts a citizen survey. In 2012, Tigard asked about the importance of po- tential changes. The adopted FY 2016 budget sets Tigard up to accomplish all the areas where more than 50 percent of Tigard residents said the change was somewhat important or very important. The table below summarizes the potential changes, their importance rating and how they can be achieved. Potential Change Importance Rating % Path to Achievement Increase efforts to retain existing and attract new jobs to the city 87 Included in the current base budget. Both of these service changes are staffed and budgeted in FY 2015. Improve the city’s communica- tion with citizens 72 Develop city-sponsored recrea- tion programs 59 Included in the adopted budget using existing resources. Includes new position, Recreation Program Guide and Grants and Scholarships. Increase the level of street maintenance 83 Council is currently reviewing the Street Maintenance Fee (SMF) to consider expand- ing funding of the Pavement Management Program. The purpose is paving the growing backlog of streets that are in poor condition. This will increase Tigard’s pavement rating from 70 to 80+ in 10 years. Development and maintenance of newly purchased parks 74 See following adopted plan to form a Parks Utility and free up current tax dollars in the General Fund. Expand police youth service programs 71 Expand open hours for the city public library 58 Increase funding for city neigh- borhood code enforcement 57 PAGE 4 - CITY OF TIGARD FY 2015-2016 BUDGET TRANSMITTAL Forming Tigard’s Parks Utility and Funding Core Services: Tigard’s General Fund supports four services: library, police, parks, and community building (e.g. planning, engineering, code enforcement, economic development). As discussed earlier, our current path will lead to a slow erosion of these ser- vices over time. In order to break this cycle, it is time to consider bold action that treats the funding of these services differently. Tigard’s parks already have aspects of a utility that make it similar to water, sewer, and storm water. Tigard has a Parks Master Plan and a Greenways Trail System Master Plan. Developers in Tigard pay a system development charge to mitigate the impact of growth on the parks system. The parks system requires level maintenance the same as other utilities, or the system starts to break down. In 2010, Tigard voters approved a $17 million parks bond that has allowed the city to increase park land by ap- proximately 50 percent. That park land needs to be developed and maintained. Under the current path of the city, there are few funds to develop the parks and there are no additional resources to maintain half again as many parks. The one aspect of Tigard’s park system that is not like a utility is that there is no Parks Utility Fee to fund the system. In December 2014, council adopted the River Terrace Funding Strategy. That strate- gy includes the implementation of a citywide Parks Utility Fee to help fund community parks in River Terrace. The City of Medford currently employs such a fee with a scope that is limited to a specific community park. The Adopted Budget for FY 2016 follows the model used in the City of West Linn where Tigard es- tablishes a Parks Utility Fee that encompasses the entire parks system and will fund the needs of cur- rent maintenance and the development and maintenance of Tigard’s new park land that was purchased with the 2010 Parks Bond. I have seeded a new Parks Utility Fund with the same $2 million of Gen- eral Fund that would have been used to maintain Tigard’s parks. During FY 2016, Tigard will under- take a cost of service rate study to determine the needs of the parks system and how to equitably allo- cate those costs that the new Parks Utility is self-funding, including a new fee, by FY 2017. Once the burden of parks maintenance service is removed from the General Fund in FY 2017, Tigard will be able to reinvest those general tax dollars in the three remaining core services. Specifically, I propose expanding Police patrol staffing, and community building is enriched. Because these services will have the same existing problem that their costs will grow faster than revenues, I will propose budgeting less than $2 million in expanded core services to allow for future cost growth. Eventually, cost growth will catch up to the savings and additional funding sources will be needed. A summary of core service changes funding is provided on the next page. INTRODUCTION - PAGE 5 FY 2015-2016 BUDGET TRANSMITTAL Potential funding source Potential use Timeframe Create Parks Utility Fund “seeded” with $2M of Gen- eral Fund used for park maintenance (2015-16) Park maintenance, operation and development In FY 2016 Adopted Budget General Fund available by creation of Parks Utility Fund (2016-17) Core Service Possibilities: li- brary, police, community build- ing (e.g. planning, economic development, code enforce- ment), and needed support ser- vices or facility needs. Aid ex- penditure and resource growth “gap”; general fund reserves Starting FY 2017 Business License Fee Police/Commercial Crimes Unit Adopted in FY 2016 Budget Local Option Levy Services provided by General Fund Vote in Future FY Gross Receipts Tax Services and Facilities provided by General Fund Vote or Council Action in Future FY Funding the Vision: In addition to securing funding to maintain core services, the Adopted FY 2016 Budget advances several alternatives for consideration by the budget committee and the City Council that either require council approval, community input, or voter approval to make more resources avail- able. This budget asks the Budget Committee to consider some combination of the following new re- sources that could match with new or expanded services that would meet community service demands. Potential funding source Potential use Timeframe City Gas Tax Transportation or sidewalks Potential vote in FY 2016 with funding in FY 2017 Street Maintenance Fee Streets or sidewalks (current allowed use is street mainte- nance only) Council action in Summer 2015 with funding in Sum- mer 2016 construction sea- son. Local Option Levy Services provided by General Fund Vote in Future FY Gross Receipts Tax Services and Facilities provid- ed by General Fund Vote or Council Action in Future FY PAGE 6 - CITY OF TIGARD FY 2015-2016 BUDGET TRANSMITTAL Several of these proposals would make revenue available to Tigard that is, as yet, not authorized or pri- oritized for new services. But the creation of a Parks Utility Fund would “free up” currently pro- grammed General Fund dollars in future years to make funding available for other general fund ser- vices. A discussion by the Budget Committee and later, the City Council and Tigard community about priorities for this funding would need to occur soon after the adoption of the 2015-16 budget. Conclusion Last year, the budget message underscored the point that a budget is really about setting a plan for what an organization or a community wants to achieve. Tigard wants to move toward its vision of be- coming more walkable, healthy and interconnected, expanding core services, building a vital downtown area, and addressing transportation challenges. We have also had three years of level budgets with no new or expanded services. If something in the city’s budget is to change, new resources will be needed. This budget funds core services at their current level while beginning to invest in the vision, and it sets up choices to make new resources available, depending on the desires of the community. Therefore, I believe that this budget responsibly sets us on a path to meet the long term goals of the city. Respectfully submitted, Marty Wine, City Manager INTRODUCTION - PAGE 7 COUNCIL GOALS PAGE 8 - CITY OF TIGARD COUNCIL GOALS INTRODUCTION - PAGE 9 COUNCIL GOALS PAGE 10 - CITY OF TIGARD CITY INFORMATION Form of Government: The City of Tigard was incorporated in 1961. An elected Mayor and four Council members who comprise the City Council govern the City of Tigard. The city’s charter establishes a Mayor/Council form of government. Members of the City Council are elected at large to serve four-year terms. The Mayor presides at coun- cil meetings and is elected at-large for a four-year term. Together, the Mayor and council provide com- munity leadership, develop policies to guide the city in delivering services and achieving community goals, and encourage citizen awareness and involvement. The City Council appoints the City Manager, who acts as the administrative head of the city govern- ment. The City Manager is responsible for ensuring council policies are implemented using resources appropriated by the Council to achieve desired service results in the community. The Mayor and Council are responsible for establishing city policies. Services Provided: Department Services Central Services City Recorder/Records, Design & Communications, , Facilities, Fleet, Municipal Court, Web Coordinator City Management City Manager’s Office, Human Resources, Risk Management Community Services Police, Library, Social Services & Community Events Community Development CD Planning, Building, Economic Development Finance and Information Services Finance Administration, Financial Operations, Utility Billing, Infor- mation Technology, Contracts/Purchasing Mayor and Council Public Works PW Administration, PW Engineering, Parks Utility, Sanitary Sewer, Streets, Storm Water, Water INTRODUCTION - PAGE 11 CITY INFORMATION CITY INFORMATION Tigard is located in Washington County and is the thirteenth largest city in Oregon. It is centrally locat- ed, surrounded by Portland, Lake Oswego, Beaverton and Tualatin. It is conveniently located, directly off of the I-5 and Highway 217. One of areas largest shopping malls, Washington Square, is located in Tigard. Population Facts: Population Estimate (2015): 50,444 Median Age (2014): 38.2 Average Household Size (2013): 2.54 High School Education or higher (2013): 93.0% Bachelor’s Degree or higher (2013): 40.1% Population by year: 2014 49,774 2013 48,695 2012 48,415 2011 48,035 2010 47,700 2009 47,470 2008 46,715 2007 46,400 2006 46,300 Cost of Living Facts: Median Household Income (2013): $62,,576 Unemployment Rate (2014): 3.9% Estimated Median House Value (2015): $327,200 Home Ownership Rate (2013): 60.2% Total Housing Units (2010): 20,247 Climate: Elevation: 300 ft. Average Daily High Temperature-Jul: 79 F Average Annual Low Temperature: 34 F Average Annual Rainfall: 39.0” Economy: Land Use~ Commercial (Acres, %): 7.5% Industrial (Acres, %): 9.9% Mixed-Use (Acres, %): 10.9% Residential (Acres, %): 64.6%* Wa. County Zoning 0.3% *Total does not equal 100% because zoning has not been assigned to the River Terrace area. PAGE 12 - CITY OF TIGARD CITY INFORMATION Number of businesses (March, 2015): 2,830 Top Employers in 2015: Employer # of Employees Tigard-Tualatin School District 779 Nordstrom 422 Capital One 413 Macy’s Department Stores, Inc. 399 Oregon Public Employees Retirement 396 Costco Wholesale Corporation 273 City of Tigard 270 Fiskars Inc/Gerber Legendary 232 Comcast Cable 228 ServiceMaster 220 Source: US census Bureau, City of Tigard-Community Development & Finance Tigard Values In 2014, City Council adopted a Strategic Plan for Tigard with the emphasis on connecting people and places-with a goal of making Tigard the most walkable community in the Pacific Northwest where people of all ages and abilities enjoy healthy and interconnected lives . In addition to this vision, the city maintains its three values for staff to reflect and embody. These values are:  Respect and Care We will treat people well  Do the Right Thing We will go the extra mile to exceed expectations  Get it Done We will focus on solutions-not excuses INTRODUCTION - PAGE 13 CITYWIDE ORGANIZATION CHART - BY PROGRAM Mayor & City Council City Attorney CITY OF TIGARD Human Resources Community Development Planning Information Services Administration Circulation Administration Support Services Police Operations Public Works Engineering Reader Services Technical Services Parks & Grounds Storm Water Water Sanitary Sewer Street Maintenance City Management Community Development Finance & Information Services Library Public Works Police City Manager Economic Development Financial Operations Administration Administration Risk Management City Manager’s Office Central Services Design & Communications City Recorder/ Records Municipal Court Street Lights & Signals Utility Billing Contracts & Purchasing CITIZENS OF TIGARD Building Fleet Maintenance Property Management Web Coordinator PAGE 14 - CITY OF TIGARD CITY OF TIGARD MAP READER’S GUIDE - PAGE 15 USER’S GUIDE TO THE BUDGET DOCUMENT The budget document describes how the City of Tigard plans to meet the needs of the community. It is also a resource for citizens interested in learning more about the operation of their city government. The city budget fulfills several functions:  Firstly, the budget is a communication tool. It is one means that the city uses to explain the various demands, needs, constraints, resources and opportunities it faces. It communicates the choices made and the direction in which the city is headed.  At the highest level, the budget is an important policy document. The annual budget pro- cess is the one time during the year when all of the city operations and processes are re- viewed in a comprehensive manner. (The city reviews the needs of the community, priori- ties and goals, and then matches resources against those needs, priorities, and goals.) Re- sources are limited, so choices must be made. The annual budget reflects those choices.  The budget also serves as an operational guide. It identifies work programs and goals to be achieved for each department or unit in the coming fiscal year.  At its most basic level, the budget is an accounting document. It establishes the basic guidelines that the city uses to measure and control expenditures and to track its revenues. The budget document has been organized to assist the reader in understanding how and why the city budgets as it does and to provide more summary level information at the beginning of the budget doc- ument with more detailed information at the end. Not only is the document arranged from a high level summary to more detailed, each section is also arranged in this manner. As the reader reviews the information in this document, he or she will see this arrangement as well as the functions listed above that a budget should fulfill. The City of Tigard’s budget document is divided into thirteen primary sections as presented below: Introduction The preceding section contains the Budget Transmittal from the City Manager. This letter summarizes the major provisions that have been included in the FY 2015 -16 Adopted Budget. It includes a discus- sion of the major policy issues that were considered and major changes from last year. This section also contains what the council plans to focus on through 2015, which provide the foundation and di- rection for many of the choices made in constructing this budget. There is general city information about Tigard, including a map that shows the city’s boundaries. PAGE 16 - CITY OF TIGARD USER’S GUIDE TO THE BUDGET DOCUMENT Reader’s Guide This section provides an overview of the budget process, the basis of budgeting, and the budget struc- ture. This section is designed to help familiarize the reader with the city and its budget. Budget Summary The Budget Summary is designed to give the reader an overall view of the entire city budget. This section contains summary charts and information to provide a one -stop picture of the budget. These high-level summaries provide an easy reference for overall city trends and conditions. This section also presents the Comprehensive Long Term Financial Forecast. The Financial Forecast projects city revenues and expenses for major operational areas of the city over the next five years, based on current conditions. The city uses the forecast to identify future trends, needed corrective ac- tion, and to forecast the success of current financial efforts. Revenue Analysis The Revenue Analysis section contains information about the city’s primary sources of revenue across all funds. This section provides a basic explanation of Oregon’s property tax system and a summary of the City of Tigard’s property tax revenues and assessed valuation. This section also provides historical trend information for each of the city’s major revenue categories. Program Summaries The city’s operating budget is organized by major program areas: Community Services, Public Works, Community Development and Policy and Administration. Each program area contains one or more operating departments or budget units. The Program Summaries section provides detailed information for each program area by department and budget unit. The information in this section includes a pro- gram-level narrative and summary expenditures and authorized position counts. The following subsections within the Program Summaries section include a narrative for each budget unit presenting the long term results the unit is working to achieve, a description of the unit’s services and activities, FY 2015-16 goals and objectives, accomplishments for the prior fiscal year, and major highlights of the unit’s budget. This section also includes workload indicators for each unit showing how much work it has accomplished in the past and how that workload is expected to change in FY 2015-16. Effectiveness measures show the progress of each unit in achieving its long term results. READER’S GUIDE - PAGE 17 USER’S GUIDE TO THE BUDGET DOCUMENT Community Services Program This section includes budget appropriations and explanatory material for the Community Services Pro- gram. The Community Services Program includes Police, Library and Social Services and Community Events. Public Works Program This section includes budget appropriations and explanatory material for the Public Works Program. The Public Works Program includes Public Works Administration, Engineering, Parks and Grounds, Sanitary Sewer, Stormwater, Street Maintenance, Street Lights and Signals, and Water. Community Development Program This section includes budget appropriations and explanatory material for the Community Development Program which includes Community Development Planning, Building and Economic Development. Policy and Administration Program This section includes budget appropriations and explanatory material for the Mayor and Council, City Management, Central Services and Finance and Information Services. Capital Improvement Plan The Capital Improvements section provides information about the city’s five -year capital improvement program. It includes information about major construction and capital acquisition projects that are planned during FY 2015-16 as well as projections of capital needs over the following five years. Debt Service The Debt Service section presents information on the City of Tigard’s outstanding long term debt. This section shows current and future debt service requirements, calculations of debt ratios, the com- parison to statutory debt limitations, and debt service schedules. PAGE 18 - CITY OF TIGARD USER’S GUIDE TO THE BUDGET DOCUMENT Fund Summaries The Fund Summaries section shows the city’s fund structure and detailed fund reconciliations for each fund managed by the city. A fund is a self-balancing set of accounts and is used to track revenues and expenditures for specific operations. Under Oregon law and “accounting principles generally accepted in the United States of America,” revenues and expenditures of individual funds may not be co - mingled. This section shows current and historical information on the resources and requirements of each of the city’s funds. Appendix The Appendix section contains a variety of other budget-related information to assist the reader, such as salary schedules, staffing summary, the city’s financial policies, and a glossary of terms used in the budget. This section also includes a listing of advisory board and committee members. READER’S GUIDE - PAGE 19 BUDGET PROCESS Staff begins preparing the annual budget several months prior to adoption. In November and Decem- ber, staff completes a six year forecast of all revenues, expenditures and fund balances. The forecast takes the budget and known future changes in fees, technology, laws and impact of capital construc- tion on operating costs. The forecast does not assume future decisions in staffing levels or proposed programs. By producing a forecast on known items, it allows the city to see the size of decisions that need to be made. As the city works through the budget process in the following months, the forecast is continually updated. The City Manager reviews the forecasts for all funds and directs which future expenditures must be postponed or eliminated to ensure a stable financial future, but still provide the necessary resources to continue to provide current services at the same level of service in the future and accomplish city goals that are set by council in December. Budget parameters and guidelines for the coming fiscal year are set in relation to the finalized six year forecast. Guidelines can include the number of additional or reduced staffing allowed in the budget requests, changes in programs, equipment replacement, etc. In January, department staff prepares their requested budgets to fulfill City Council goals set for the coming year. These goals and the nec- essary resources to accomplish them are included in the budget requests and may require adjustments to the forecast and budget guidelines. After departments submit their requested budgets, Finance staff, and the City Manager reviews the requests and meets with the departments to discuss the requests and obtain additional information to assist with their analysis. In March and April, Finance staff finalizes their budget analyses and meets with the City Manager and department directors to review the requests. The City Manager makes deci- sions on the requested budgets, which are then incorporated into the proposed budget. In April and into May, the City Manager presents the proposed budget to the Budget Committee. The Budget Committee, in accordance with Oregon Budget Law, is made up of the City Council and an equal number of citizen members. In Tigard’s case, the Budget Committee is comprised of the Mayor, four council members, and five citizens. All budget meetings are open to the public and are required to be advertised as such. At each budget meeting, time for public comment and input is provided. After all input has been received, the Budget Committee approves the budget with any changes and forwards it to the City Council for adoption. In June, the City Council holds another public hearing to allow for additional public comment. After the public hearing, the approved budget is adopted by City Council resolution. The adopted budget takes effect on July 1. According to Oregon Budget Law, a budget must be adopted prior to July 1. PAGE 20 - CITY OF TIGARD BUDGET PROCESS Budget Timeline November- December  Finance staff updates the six year revenue and expenditure forecasts and sets growth trends and baselines.  City Manager reviews forecasts and sets guidelines and policy.  City Council establishes goals for the year.  Finance staff prepares budget instructions, provides training as required, and distributes budget guidelines to department staff. January  Departments prepare budget requests for review by Finance staff.  Finance staff reviews requests and prepares budget analysis.  Departments and Finance staff review budget requests February  The six year forecast is updated based on requested budget amounts and projections for the current fiscal year.  Requested budgets and budget analyses are submitted to the City Manager. Budget discussions between the City Manager, department directors, and Finance staff take place. March-April  Finance staff updates six year forecast based on proposed budget.  The proposed budget document is produced by Finance staff.  Budget Committee meetings are advertised. April-May  The City Manager’s proposed budget is submitted to the Budget Committee. Public meetings are held to present the proposed budget to the Budget Committee to discuss and to allow citizen comment. The Budget Committee makes changes and then approves the budget before forwarding it to the City Council for adoption.  Finance staff updates six year forecast based on approved budget and revised projections for current fiscal year revenues and expenditures.  Public Hearing Notice for Budget Adoption is advertised. June  A public hearing before City Council is held to allow citizens to comment on the approved budget. After the public hearing, the Approved Budget is adopted by City Council resolution.  Finance staff updates six year forecast based on adopted budget. July  The adopted budget document is produced by Finance staff.  The adopted budget takes effect. READER’S GUIDE - PAGE 21 BUDGET PROCESS Budget Revision Procedures Oregon Local Budget Law establishes procedures to revise the budget as events occur after budget adoption. The type of event determines the procedures to be followed. Budget Amendment The adopted budget appropriates contingencies in several funds. As allowed by Oregon Local Budget Law, contingencies cannot be used unless transferred to a specific appropriation by Council Resolution amending the budget. Budget amendments during a fiscal year cannot exceed 15% of fund appropriations without approval of a supplemental budget. Supplemental Budgets In accordance with Oregon Local Budget Law, a supplemental budget is required to appropriate in- creased resources within a fund (except for gifts, grants, and donations), or if total budget amendments in a fund exceed 15% of the existing appropriations. If at least ten taxpayers make a written request within ten days of the notice, the council must refer the supplemental budget to the Budget Committee prior to consideration and action. PAGE 22 - CITY OF TIGARD BASIS OF BUDGETING The basis of budgeting is largely the same as the basis of accounting with a few exceptions. Budgets are prepared in accordance with the modified accrual basis of accounting for Governmental Fund Types. Proprietary Fund Type budgets follow the accrual basis of accounting, with the exception that depreciation is not shown as a budgetary expense. Proprietary funds also accrue compensated absences when incurred and become a fund liability. In the governmental funds, compensated ab- sences are paid from current resources and are reported as an expenditure in the year they are paid. And finally, both governmental and proprietary funds show debt service proceeds as a resource and debt service payments as an expense under the budgetary basis of accounting. Activities of the general fund, special revenue funds, debt service funds, capital project funds, enter- prise funds, and internal service funds are included in the annual appropriated budget. Annual appro- priations lapse at the end of each fiscal year (June 30). The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount), is established at the pro- gram level within each individual fund. The city maintains an encumbrance accounting system as one technique of accomplishing budgetary control. SUNRISE PARK READER’S GUIDE - PAGE 23 FUND STRUCTURE The City of Tigard uses various funds to account for its revenues and expenditures. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts. Also, funds are categorized by fund type as defined by generally accepted accounting principles (GAAP) and Oregon Budget Law. The revenues in each fund may be spent only for the purpose specified by the fund. For example, the revenues in the Water Fund may be used only for purposes related to water operations. However, the General Fund is the primary exception to this rule. The General Fund is used to account for general- purpose revenues and operations of the city. Most of the traditional, core operations of the city (i.e. Police, Library, Parks, Planning, and Mayor and Council) are budgeted in this fund. In FY 2015 -16, the city will use the following fund types: General: account for resources not accounted for in other funds. These resources support most central business services, public safety services, cultural/leisure services and some public devel- opment services. Enterprise: account for goods or services which are provided on a continuing basis to the general public and are financed primarily through user charges. Enterprise funds in Tigard include: sanitary sewer, stormwater, water, water CIP, water debt service, water quality/water quantity, and water SDC. Special Revenue: account for restricted resources designated for specific uses. In Tigard, these funds are building, city gas tax, criminal forfeiture, electrical inspection, gas tax, library dona- tion and bequests, parks bond, parks utility, parks SDC, street maintenance fee, transportation SDC, transportation development tax (TDT), tree replacement, and underground utility. Debt Service: account for the accumulation of resources for the payment of debt principal and interest. Bancroft debt service and general obligation debt service fall into this category. Capital Funds: account for financial resources for the acquisition, construction and maintenance of capital facilities. These funds include facilities capital, parks capital, and water CIP. Internal Service: Account for goods or services furnished internally from one department to an- other. The central services fund, fleet and property management fund, and insurance fund are the three internal service funds in Tigard. A Summary of All Funds is provided in the Budget Summary section to show a summary of each of the funds resources and requirements as budgeted and more detailed breakdown is shown in the Fund Summaries section. Resources include beginning fund balances, current revenues and transfers in from other funds. Requirements include operating expenditures, debt service, loans, capital improve- ments, transfers out to other funds contingencies and ending fund balances or reserves. The FY 2015 - 16 budget is considered a balanced budget as total resources are equal to total requirements in each fund. PAGE 24 - CITY OF TIGARD PROGRAM BUDGET STRUCTURE The city adopts and manages its budget by program. Each program is an aggregation of departments and their divisions that are similar in nature or function. Some programs have several departments, where others, like Public Works, only has one department. Program Department Division Community Services Police Administration Operations Support Services Library Administration Readers’ Services Technical Services Circulation Social Services/Community Events Social Services Community Events Public Works Public Works Administration PW-Engineering Parks Utility Sanitary Sewer Streets Stormwater Water Community Development Community Development Community Development - Planning Building Economic Development Policy and Administration City Management City Manager’s Office Human Resources Risk Management Mayor and Council Mayor and Council Central Services Design and Communications City Recorder/Records Municipal Court Property Management Fleet Maintenance Web Coordinator Finance and Information Systems Administration Financial Operations Utility Billing Information Technology Contracts and Purchasing READER’S GUIDE - PAGE 25 PROGRAM BUDGET STRUCTURE A breakdown of each of these programs, departments, and budget units’ expenditures can be found in the individual program sections. In addition to the four operating programs, Debt Service, Loans to the City Center Development Agency, Capital Improvement, Transfers, and Contingency provide the following functions:  Debt Service includes appropriations for interest and principal on all types for debt, i.e. general obligation, local improvement districts, loans and both short term and long -term debt for construction projects.  Loans to the City Center Development Agency (CCDA), the city’s urban renewal district, are for catalyst projects in the downtown plan. As the Urban Renewal District generates more tax increment financing revenues in the future, it will be able to finance its own pro- jects. Until then, the city may loan monies to the CCDA, which will be repaid as outlined in the intergovernmental agreement between the two entities.  Capital Improvement includes appropriations for all major construction project expendi- tures. Capital improvement projects are included in the long range plan for city facilities and infrastructure.  Transfers will be made between funds when the revenue is received in one fund for an ex- pense that occurs in another fund or when city functions have more than one funding source. Another primary reason for transfers is for a fund to pay for services provided by another fund.  Contingency includes allowance for unforeseen needs that have not been planned for in the current budget and some reserves. Contingency can only be accessed by City Council reso- lution. PAGE 26 - CITY OF TIGARD City of Tigard | ADOPTED BUDGET | FY 2015–2016 Summerfield Golf Course in Tigard, Oregon BUDGET SUMMARY - PAGE 27 WHERE THE MONEY COMES FROM... Resources to meet the City of Tigard’s obliga- tions and service needs are derived from three primary sources: beginning fund balance, cur- rent revenues and fund transfers. Beginning fund balance consists of revenues carried for- ward from previous fiscal years, including re- serves for specific purposes (e.g., debt re- serves and capital improvements) and monies used for cash flow. Current revenues are those earned from city operations or taxes collected during the fiscal year. The principal sources of current revenues are utility fees and charges, property taxes, other financing sources (bond proceeds) and building and development fees and charges. The third source is a transfer between funds to pay for either direct or indirect costs. Resources Beginning Fund Balance 82,935,639$ Current Revenues Property Taxes 16,806,522 Franchise Fees 5,909,165 Special Assessments 120,000 Licenses and Permits 7,668,363 Intergovernmental 9,335,755 Charges for Services 34,823,564 Fines and Forfeitures 916,007 Interest Earnings 473,849 Miscellaneous 432,319 Other Financing Sources - Subtotal Current Revenues 76,485,544 Fund Transfers 34,012,691 Total Resources 193,433,873$ PAGE 28 - CITY OF TIGARD WHERE THE MONEY GOES... City budgetary requirements fall into three primary categories: total requirements, total appropriations, and program expenditures (or operating expenditures). Total requirements consist of all funds appro- priated for use during the fiscal year plus reserve for future expenditures (ending fund balances), which are not appropriated and are not intended to be used. Reserve for future expenditures are available, but are intended for use in future fiscal years. Total appropriations consist of funds available for use during the fiscal year and include program expenditures, debt service, capital improvements, transfers and contingencies. Program expenditures reflect the ongoing operating budget for the delivery of ser- vices. The following charts provide information about each of these major categories. Requirements Current Expenditures Operating Budget 59,549,594$ Debt Service 9,465,985 Loan to CCDA - Capital Improvements 38,943,180 Contingency 4,210,000 Subtotal Current Expenditures 112,168,759 Fund Transfers 34,012,691 Subtotal Total Appropriations 146,181,450 Reserve for Future Expenditure 47,252,423 Total Requirements 193,433,873$ The total requirements of the FY 2015-16 city budget are $193,433,873. Of that amount, 75% is actu- ally appropriated for use during the fiscal year. The remaining 25% is reserved for future expenditures. The reserves are available but are not intended to be used during the fiscal year. BUDGET SUMMARY - PAGE 29 WHERE THE MONEY GOES... Total appropriations of $146,181,450 consist of several subcategories of use. Of this amount, Program Expenditures account for 41% of the total. Program Expenditures make up the city’s operating budg- et. Appropriations are also established for debt service, loans to the City Center Development Agency, capital improvements, transfers between funds, and contingencies. Debt service accounts for 6% of total city appropriations and pays principal and interest on outstanding assessment bonds, loans, voter- approved General Obligation bonds and revenue bonds. Capital improvements account for 27% of total appropriations and consist of major construction or acquisition projects that add to or extend the life of major city facilities and assets. Transfers between funds total roughly 23% of appropriations. Money is transferred between funds to share resources or to pay expenses incurred in one fund that also benefit the program in one or more additional funds. Contingencies account for 3% of total appropriations and are used to pay for unexpected expenses. No money may be spent directly out of a contingency account; if needed, money must be transferred from contingency to another expenditure category by resolution of the City Council. PAGE 30 - CITY OF TIGARD WHERE THE MONEY GOES... Program expenditures are the operating budget of the city. Program expenditures pay for the day-to- day costs of running the city and providing services to citizens. This is the heart of the city budget. Program expenditures may be looked at from several different perspectives. Each perspective provides a different view of the use of these dollars. The following charts show three different perspectives of program expenditures. Program Expenditures by program shows the major functional areas that make up the total city oper- ating budget. The largest functional areas within the operating budget are the Community Services (37%) and Public Works (35%) programs. The Community Services program consists of Police ser- vices, Library services, and city grants to social service agencies and community events. The Public Works program consists of services that operate and maintain the city’s infrastructure (streets, water, parks and grounds, sanitary sewer, storm water, fleet maintenance, and city facilities). The Policy and Administration program accounts for 18% of the total operating budget and includes the central city management, administrative functions, Finance, and Information Technology. The Community Devel- opment program accounts for 10% of the total operating budget. This program area includes building permits and inspections, and land use planning. BUDGET SUMMARY - PAGE 31 WHERE THE MONEY GOES... Another way of looking at the city’s program expenditures is by department. This view reflects the ad- ministrative structure of the city. The largest city department is Public Works with 35% of the budget. Public Works is followed by Police with 27%, Library with 10%, Community Development with 10%, Financial and Information Services 7%, Central Services with 6%, City Management with 4%, and the Mayor and City Council at less than 1%. Police 27% Library 10% Social Svcs & Com Events <1% Public Works 35% Community Development 10% Financial & Info Svcs 7% Central Services 6% City Management 4% Mayor & Council <1% Program Expenditures Total Operating Budget by Department $59,549,594 Finally, the third way to view the Program Expenditures is by major object category. Roughly 53% of the operating budget is for Personal Services which are the salaries and benefits for staff who are oper- ating the programs and providing services to the public. Materials and Services, supplies, professional services, small equipment, etc., account for 29% of the operating budget. Capital Outlay (purchases of equipment or vehicles) necessary to running programs and providing services accounts for about 1% of the operating budget. Finally, Interdepartmental expenses pay for services provided within the city and make up 17% of operating expenses. PAGE 32 - CITY OF TIGARD FUND BALANCE The General Fund beginning fund balance is projected to be $10,709,593. A beginning fund balance is maintained to provide cash flow for specific operations until current year revenues are received. In the General Fund, enough beginning fund balance needs to be held in order to make payroll and pay bills until Property Tax collections arrive in November. The amount needed is about 25 percent of the op- erating budget. In addition, the fund balance provides funding stability to meet the city’s needs project- ed in the Six Year Financial Forecast. The largest portion of the beginning fund balances is made up of $57.9 million in the Enterprise Funds. These funds are dedicated to the operation, maintenance, and capital investment of the city’s sanitary sewer, storm water, and drinking water systems. This category grew significantly due to the Water Rev- enue Bonds that were issued in May 2012 and March 2015 to pay for the first part of the Lake Oswego / Tigard Water Partnership Project to jointly update and expand the water treatment plant and secure a water source for the City of Tigard. The fund balance will continue to decline as the project nears completion. The Capital Project Funds include $1.3 million for parks development, street capital improvement pro- jects and facilities projects. The purpose of the capital project funds is to provide a single fund to track the expenditures related to the projects. Generally, the revenues to support the projects are not moved to the capital project funds until they are needed, resulting in a low fund balance. Special Revenue Funds include $10.4 million for Gas Tax Funds, Urban Forestry Fund, Building Fund, Street Maintenance Fund, Parks Bond and Parks SDC funds primarily. The largest contributor to fund balance in this group is the $2.2 million in the Building Fund. The primary revenue for the Gas Tax Fund is from a tax on motor vehicle fuel imposed by Washington County and the State of Oregon. The City Gas Tax Fund was created to account for a local fuel tax imposed by the city, which went into effect in April 2007. Currently all revenues in that fund are dedicated to repaying debt for the Green- burg Road/Pacific Highway intersection and for paying part of the intersection improvements at 72 nd and Dartmouth Streets. In addition, with approval from the Tigard Transportation Advisory Commit- tee and City Council, a portion of City Gas Tax is used to fund construction of the Pacific Highway/ Gaarde Street/McDonald Street intersection improvements project in FY 2015. The city has two debt funds, General Obligation Debt Service Fund and the Bancroft Bond Debt Ser- vice Fund. The beginning fund balances of just over $1.4 million are specifically dedicated to the retire- ment of both General Obligation and Bancroft debt outstanding. The city’s Internal Service Funds provide services to other city departments on a reimbursable basis. Most of the fund balance is in the Insurance Fund. This fund provides coverage for losses unfunded by traditional insurance policies, management of insurance/claim activity, and reduction of significant BUDGET SUMMARY - PAGE 33 ENDING FUND RESERVES SUMMARY BY FUND Where the prior page described the beginning fund balances, the schedule below outlines the budgeted reserves of the city anticipated at the end of FY 2016, as well as information on the prior three years of history. General Fund Reserves are steady. Overall reserves for the city are decreasing, with the bulk of the decrease in the Enterprise Funds related to use of bond proceeds on the Lake Oswego/Tigard Water Partnership project. PAGE 34 - CITY OF TIGARD SUMMARY OF ALL FUNDS BUDGET SUMMARY - PAGE 35 SUMMARY OF ALL FUNDS PAGE 36 - CITY OF TIGARD SUMMARY OF ALL FUNDS BUDGET SUMMARY - PAGE 37 SUMMARY OF ALL FUNDS PAGE 38 - CITY OF TIGARD SUMMARY OF ALL FUNDS BUDGET SUMMARY - PAGE 39 SUMMARY OF CONTINGENCY PAGE 40 - CITY OF TIGARD SUMMARY OF CONTINGENCY The FY 2015-16 budget includes contingency appropriations for most operating funds. Contingencies are built into the budget to ensure that funds are available for unforeseen events and to build a cushion into revenue estimates. Contingencies may not be spent directly; if needed, they must be transferred to a program expenditure by resolution of the City Council. If not transferred to a program expenditure during the fiscal year, the contingency amount becomes part of the ending fund balance. Fund FY 2016 Fund Budget FY 2016 Fund Contingency Contingency as % of Budget 100-General Fund 35,840,953$ 1,120,000$ 3.1% 200-Gas Tax Fund 3,187,860$ 200,000$ 6.3% 205-City Gas Tax Fund 619,768$ 300,000$ 48.4% 220-Electrical Inspection Fund 231,993$ 50,000$ 21.6% 230-Building Fund 2,199,847$ 250,000$ 11.4% 240-Criminal Forfeiture Fund 70,560$ -$ 0.0% 260-Urban Forestry Fund 301,850$ 50,000$ 16.6% 270-Parks Utility Fund 2,243,414$ 40,000$ 1.8% 300-Bancroft Debt Service Fund 103,699$ -$ 0.0% 350-General Obligation Debt Service Fund 2,196,418$ -$ 0.0% 400-Facilities Capital Fund 1,535,425$ 50,000$ 3.3% 405-Transportation Development Tax 783,490$ 250,000$ 31.9% 411-Underground Utility Fund 370,477$ 50,000$ 13.5% 412-Street Maintenance Fund 2,258,735$ 200,000$ 8.9% 415-Transportation SDC 61,000$ 50,000$ 82.0% 420-Parks Capital Fund 3,275,493$ -$ 0.0% 421-Parks Bond Fund 1,382,013$ -$ 0.0% 425-Parks SDC Fund 1,287,214$ 100,000$ 7.8% 460-Transportation CIP 1,130,858$ -$ 0.0% 500-Sanitary Sewer Fund 3,421,714$ 400,000$ 11.7% 510-Stormwater Fund 3,636,578$ 200,000$ 5.5% 511-Water Quality/Quantity Fund 66,576$ 50,000$ 75.1% 530-Water Fund 34,064,784$ 500,000$ 1.5% 531-Water SDC Fund 399,130$ 100,000$ 25.1% 532-Water CIP Fund 29,399,938$ -$ 0.0% 533-Water Debt Service Fund 6,267,181$ -$ 0.0% 600-Central Services Fund 7,741,137$ 150,000$ 1.9% 650-Fleet/Property Management Fund 1,927,362$ 75,000$ 3.9% 660-Insurance Fund 75,983$ 25,000$ 32.9% 980-Library Donation & Bequests 100,000$ -$ 0.0% Total 146,181,450$ 4,210,000$ 2.9% BUDGET SUMMARY - PAGE 41 COMPREHENSIVE LONG TERM FINANCIAL FORECAST Introduction The City of Tigard has developed a comprehensive long term financial forecast every year since the 1980’s. This forecast allows the city to project expected revenues and expenditures for each of its funds to help anticipate financial requirements. This tool continues to be central to Tigard’s financial management strategy. By forecasting and anticipating financial trends, Tigard can develop strategies to respond to emerging issues. The city forecasts operating and capital fund revenues and expenditures over a six-year period. The forecast is adjusted as each year’s final results are known and as new years are budgeted. There are some key assumptions in the design of Tigard’s forecasts: 1) The forecasts only assume known decisions and do not presume future decisions of Coun- cil. This means that the operating budgets only include those staff and related materials and services that are currently approved, or are adopted in this document. 2) Revenues are forecasts based on best information available for future annual rate of change. 3) Budgeted expenditures and forecasted expenditures are different. Budgeted expenditures represent the maximum expense allowed by council. Actual expenses are always less than budget because the budget cannot be legally exceeded. The forecast is based on an esti- mate of actual expenditures. Recent history shows that the city spends approximately 95 percent of operating budget (e.g. payroll, supplies, services, and equipment). This is the basis for forecasting operating expenditures. The intent of the forecast is to show the relative size and impact of current decisions and what deci- sions will be required in the future. It is not uncommon for a forecast to show a declining fund bal- ance. That does not mean that the fund balance will be where we have forecasted it to be in five years; it means that the city will take actions of a proportionate size to ensure that the fund balance stays above minimum requirements. General Fund Recent History As a result of these forecasting efforts and a projected decline in general fund balances due to the re- cession, the city took steps to reduce expenditures prior to the end of FY 2010 and FY 2012. Staff also continues to revise current fees and charges based on cost recovery and construction cost indices. There are some significant financial issues facing the city over the next six years. One key issue relates to the city’s capital improvement needs. The city has identified capital project needs, but does not have the resources to implement all of them. The following charts do not include the all the needed projects that do not have funding source. The reason for this is because almost all the funds would show large negative fund balances, which is not realistic or practical. The city will continue to priori- tize the needed capital projects, seek alternative revenue sources, and develop financing strategies to construct as many of the needed capital projects as possible. PAGE 42 - CITY OF TIGARD COMPREHENSIVE LONG TERM FINANCIAL FORECAST The general fund is unique in that, unlike the city’s other funds, it is unrestricted in nature and can therefore be used for any valid purpose to provide government services. Because these funds are un- restricted there are also great demands for these resources to fund projects and programs for which other, restricted monies are insufficient or unavailable. It is therefore critical that these funds be used judiciously and a sufficient reserve balance be maintained for unforeseen expenditures. General fund needs a minimum of 25 percent of budget in fund balance; this is represented as the or- ange line in the following graph. Nearly half of the general fund’s revenue comes from property tax which is mostly received in late November and December. From the beginning of the fiscal year in July until the property tax collection in late November, the general fund expends more than it receives. The fund balance is used in order to make payroll and other regular expenses. By performing the forecast, Tigard has been able to navigate through some important decisions. Some of the key financial decisions that Tigard has implemented include:  Toward the end of Fiscal Year 2010, the city implemented significant cuts in services, re- ducing the General Fund budget by $2.6 million and 17.20 FTE citywide.  Entering FY 2013, it was apparent that the recession would not have a robust recovery and revenues growth would remain muted. The adopted budget for FY 2013 instituted the sec- ond round of financial and service level cuts including: a. Significant reductions of $1.9 million in General Fund and central service funds and 18.0 FTE citywide. b. One of the key components to making the forecast sustainable is changing the growth in medical / dental benefits for the non-represented employees paid by the City from ten to five percent annually. Non-represented employees will pick up the difference by contributing more toward these benefits. c. The Electrical Franchise Fee is increased from 3.5% to 5.0%. In addition, the Budget Committee recommended increasing the Solid Waste Franchise Fee to 5%.  During FY 2014, the city and the SEIU Union agreed to a medical/dental benefit cost sharing structure similar to the one implemented with non-represented employees the year before. When the two employee groups are combined, the change in the growth of the city’s cost in medical/dental benefits going from 10% annually to 5% has lowered overall annual growth rate in all expenditures from 3.5% to 3.0%. Over the course of the forecast, this saves approximately $1.5 million in the General Fund. BUDGET SUMMARY - PAGE 43 COMPREHENSIVE LONG TERM FINANCIAL FORECAST General Fund based on FY 2016 Adopted Budget In preparing the Adopted Budget for FY 2016, the cuts made in prior years and the promise of stability is foremost in mind. Departments were asked to prepare a “Level Budget” with very few changes that have been outlined in the Budget Transmittal. These include a new Police Officer for the Commercial Crimes Unit supported by an increase in the Business License fee and a new Recreation Coordinator position. The primary change in the General Fund is the removal of the Parks department to the new Parks Util- ity Fund. The General Fund support four services: library, police, parks, and community building. In the Adopted Budget for FY 2016, parks is removed from the General Fund and moved to the new util- ity fund. Initially, the new fund is supported by a transfer from the General Fund in FY 2016. Starting in FY 2017, the parks utility fee will support the Parks Department and General Fund will reinvest the resources that previously supported parks services with enhancements to library, police, and communi- ty building. The forecast above shows the impact of a $1.8 million reinvestment. A portion of this reinvestment is already decided. The budget includes reopening the Library on Thursdays if the WCCLS levy passes. The levy by itself is not enough to reopen the Library, the General Fund reinvestment will make up the remainder. As demonstrated above, this reinvestment has the same issue of expenditure growth out- pacing revenue growth and the fund balance by 2021 is at the minimum requirement. This would indi- cate that the total reinvestment will likely need to be slightly less than the amount included in the Gen- eral Fund forecast above. Tigard has been successful in getting growth in expenditures and revenues to get closer, but expendi- ture growth of about 4.0% is still outpacing revenue growth of approximately 3.5%. The challenge that the community still faces is the inability to add to existing services, or start new services. Moving parks service to a self-funded utility will be the first action that 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Current Expenditures 29.0 27.2 29.0 31.2 33.2 31.9 33.1 34.4 35.7 37.1 Current Revenues 28.5 29.5 30.3 30.6 31.3 32.2 33.3 34.3 35.5 36.8 Required EFB for Next Year 6.6 6.1 6.7 6.4 7.4 7.7 7.9 8.3 8.6 8.6 Ending Fund Balance (EFB)6.9 9.6 11.0 10.8 8.8 9.1 9.3 9.2 9.1 8.8 0 5 10 15 20 25 30 35 40 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $ M i l l i o n s General Fund Forecast Ending Fund Balance (EFB)Current Expenditures Current Revenues Required EFB for Next Year Financial Forecast Based on FY 2016 Adopted Budget PAGE 44 - CITY OF TIGARD COMPREHENSIVE LONG TERM FINANCIAL FORECAST Tigard can take to pro-actively impact service levels. Long-term, Tigard is still faced with some combi- nation of the following decisions: 1) Further impact the rate of growth in expenditures. With personnel expenditures represent- ing approximately 60 percent of operations, this is the area where the most impact can be made. This has been an area of focus over the last several years and substantial contain- ment in cost growth may already be maximized. 2) Implement additional city revenue sources. These typically will not grow faster, but will provide a higher starting point for the steady decline, putting off the point where expendi- tures exceed revenues. These can be small incremental changes as Tigard has pursued in the past, or larger changes such as local option operating levy or pursuit of a gross receipts tax. 3) Make further service level and expenditure reductions in one area to support additional ser- vices in other areas. Development Funds The projections for the city’s development funds (building and electrical inspection funds) show these funds are growing. In 2008-09, building ended the year with a fund balance near zero even after laying off seven staff and reducing hours for the remaining staff in this fund. In FY 2009-10, the building fund was further stabilized by a one-time $300,000 resource transfer from general fund and a fee in- crease designed to generate an additional $250,000 annually. Activity in the Building Division has had some steady increases. Over the last several years, staff has been steadily added back to address the activity increases. The Adopted FY 2016 budget includes 1.5 FTE to aid in plans examination and records. With the development of the River Terrace area, it is anticipated that even more staff will be added in the near future, but that cost is not yet reflected in the forecast. Expenses of all the building inspection services are charged to the building fund. The electrical inspec- tion fund transfers money into the building fund to pay for those costs associated with electrical in- spection services. The transfer is evaluated and updated each year based upon the actual activity. BUDGET SUMMARY - PAGE 45 COMPREHENSIVE LONG TERM FINANCIAL FORECAST Park Funds The revenues in the parks funds include the system development charge (SDC), urban forestry reve- nues, grants, and the Parks Bond that was approved by voters in November 2010. Resources from the Park SDC Fund are transferred to the Parks Capital Fund to pay the SDC portion of the capital projects. These projects have been identified in the city’s Parks Master Plan. The most recent SDC methodology and fee was approved by the City Council in April 2015 as part of a review of infrastruc- ture costs and fees related to development in River Terrace. In FY 2008-09 the Urban Forestry Fund (formerly known as the Tree Replacement Fund) was estab- lished to account for revenue collected from developers in lieu of planting trees. The fund is then used to plant trees in Tigard. In FY 2010-11, a significant number of commitments from developers who failed to plant were called, increasing the fund balance over $1 million. In November 2010 Tigard voters approved a $17 million Parks Bond to help the city acquire and de- velop additional parks, with at least 80 percent to be used to acquire land and the remaining amount to develop parks. Of the total, ten percent can be used in downtown. By the end of FY 2015, most of the parks bond will be spent on development and land acquisition, including Dirksen Nature Park, Sunrise Park, Potso Dog Park, and East Butte Heritage Park. The Parks CIP Fund is showing a negative balance due to the Dirksen Nature Park project being par- tially funded. For the nature park, an additional $1,460,000 will be needed for parks construction and $1,1750,000 will be needed for half-street improvements as reflected in the negative fund balance in the Transportation CIP fund in the following discussion. These will be a priority when working with our regional partners. PAGE 46 - CITY OF TIGARD COMPREHENSIVE LONG TERM FINANCIAL FORECAST Transportation Funds The city’s transportation funds include the Gas Tax, Transportation Development Tax (TDT), Street Maintenance Fee, City Gas Tax, and the Transportation CIP Fund. There are some funding challenges. First, Gas Tax revenues are flattening due to leveling of fuel pur- chases caused by more efficient vehicles. With steadily increasing maintenance operations, street light and signal energy bills, and steady debt service payments through FY 2020, the ability to pay for capital out of this fund is being compromised. Second, there are partially funded projects totaling $5 million in the Transportation CIP fund that is driving the fund balance negative. The projects are sidewalk projects at Tiedeman Avenue and Commercial Street.; Main Street Phase 2 is seeking $1.7 million in transportation funding; and Dirksen Nature Park has another $1.175 million in half-street improve- ments needed. If funding is not identified, the projects will be re-scoped or delayed. The city gas tax was established to account for revenues generated from Tigard’s local gas tax. The 3- cent tax was developed by a citizen task force who recommended it as a way to fund improvements to the Greenburg Rd./Pacific Hwy./Main St. intersection. All proceeds generated are currently dedicated to this one project. Repaying the debt service for this project will take about half of the funds re- sources allowing the fund balance to grow. This fund has also helped to pay for improvements at the 72nd/Dartmouth intersection and Pacific Hwy/McDonald/Gaarde intersection. The fees collected from the TDT may only be used for roadway and transit capital improvements that provide additional capacity to major transportation systems, and to pay the costs of administering the program. Like the gas tax fund, the forecast includes only those street projects that the fund can af- ford. TDT revenues are increasing with the growth in development in River Terrace. This is the one resource that has programed capacity among the transportation funds and will likely be needed in River Terrace to help pay for expansion of Roy Rodgers Road. BUDGET SUMMARY - PAGE 47 COMPREHENSIVE LONG TERM FINANCIAL FORECAST The city took steps to address existing local street conditions by adopting a Street Maintenance Fee in November 2003 with an update approved in January 2010. This fee provides a stable source of reve- nue designated for use in the maintenance of existing streets. The Tigard Municipal Code requires that the fee be evaluated every five years and Council is currently evaluating the fee. It is anticipated that the fee will be increased to address the backlog of streets that are in poor condition and increase the city’s pavement condition from a measurement of about 70 to 80+ where it is most cost effective to maintain streets. The fund balance is needed, since most of the program’s expenditures happen in the beginning of the fiscal year when the weather is good for construction. Sanitary and Stormwater Funds These funds support all of the sanitary sewer and stormwater collection and detention systems in the city. The city provides these services based upon an Intergovernmental Agreement (IGA) with Clean Water Services (CWS), which is a local service district in Washington County that provides both sani- tary sewer treatment and stormwater management services. The Board of Directors of CWS sets all service charges and system development charges for both sanitary sewer and stormwater services throughout the service district. Tigard is responsible for maintaining local sewer lines; however, sewer revenues have not kept up with increasing costs of maintaining this vital infrastructure. Without a change, the fund is able to afford operational maintenance, but is unable to perform needed capital projects. The financial forecast re- flects that lack of capital projects in the sewer fund. If the projects were added, the fund balance would quickly become negative. Sewer rates and the city’s share of the revenues are set by the region’s sewer provider, Clean Water Services (CWS). For every dollar that a customer pays, $0.84 goes to CWS, $0.05 goes to the General Fund as the Franchise Fee, and $0.11 goes to the Sewer Fund. The City of Tigard is the only city inside of CWS’s service area that hasn’t implemented, or is currently pur- suing a sewer surcharge. The city is in the midst of reviewing implementation of a sewer surcharge to ensure funding for this vital infrastructure. The stormwater fund shows a stable moderate fund balance in the coming years. In an effort to offset little or no increases from CWS over the past few years, the city has implemented a $2.00 per month charge to stormwater fees. This surcharge allows the city to maintain a sustainable cash flow position and to construct needed capital projects in future years. PAGE 48 - CITY OF TIGARD COMPREHENSIVE LONG TERM FINANCIAL FORECAST Water Funds The water funds include the water, the water system development charge (SDC), the water Capital Im- provement Plan (CIP), and water debt service funds. The water CIP Fund is reserved for a long-term water source and other water distribution system capital projects. The costs of the Water Division are funded solely by the revenues in the water fund. The financial condition of the water funds is driven by both the needs in the capital program as well as the cost of the day-to-day operation and maintenance of the water system in the city. The most im- portant factor in the city’s capital program remains the need for a long-term source of water. In Au- gust 2008 the city entered into an agreement with the city of Lake Oswego for a long-term water source. The project to upgrade Lake Oswego’s water treatment plant is underway. In November 2010, City Council adopted a Water Financing Plan through 2020 to fund the LO/ Tigard partnership project with a subsequent update to the plan in March 2012. Since then, Tigard has agreed to buy an additional 4 million gallons per day (mgd) of capacity from Lake Oswego, bringing Tigard’s share to 18 mgd. The forecast is based on a modified version of the financing plan which in- cludes issuance of an additional water bond of $30.8 million in FY 2015. The first debt issuance of $97.7 million was issued in May 2012. Along with the Water Financing Plan, Council adopted revised water utility charges and System Devel- opment Charges. This plan was updated for the additional 4 mgd during FY 2015. The initial plan implemented water utility charges that roughly doubled over a five year period and SDCs will roughly triple over the next four years. The update includes an additional 10.5 percent increase in water rates that took effect on January 1, 2016. This will be followed by four years of 3.25 percent increases to water rates. BUDGET SUMMARY - PAGE 49 COMPREHENSIVE LONG TERM FINANCIAL FORECAST Synopsis The city’s Six Year Financial Forecast shows that in the short term the city has some challenges, but appears to be in a good position to address those challenges. The General Fund is sustainable for the next several years due to cuts in service made in FY 2010 and FY 2012 and decreased growth in medi- cal/dental costs. However, without major change the services that General Fund supports will slowly decline due to the inability of revenue to keep up with the cost of meeting the demand for services. Action is needed and is supported in this FY 2016 budget. The Building Fund is stable and will sup- port staffing growth that will be needed to serve growth in the River Terrace area. Available transpor- tation funding sources to pay debt service on Burnham St and the Greenburg / Main Street / Pacific Highway intersection as well as some projects on Walnut and McDonald/Gaarde/Pacific Hwy Inter- section. A major transportation need is to find regular funding for sidewalks. Funding a long-term water source for Tigard is a necessary and expensive process that required significant borrowing cou- pled with significant rate increases to repay the debt. The Sewer Fund has insufficient revenues to maintain the city’s local infrastructure and a change will be made in early FY 2016. The city will contin- ue to monitor its revenues and expenditures and will develop plans and options to manage its resources to continue to provide quality services to its citizens. PAGE 50 - CITY OF TIGARD City of Tigard | ADOPTED BUDGET | FY 2015–2016 Bridge crossing at Summerlake Park Tigard, Oregon REVENUE ANALYSIS - PAGE 51 CURRENT REVENUE SUMMARY BY FUND PAGE 52 - CITY OF TIGARD GENERAL FUND REVENUE With no sales or income tax revenues, city general funds in Oregon are funded primarily by property taxes, franchise fees, state-shared revenues (e.g., cigarette tax and liquor tax revenues), and some charges/fees for services. Our property tax system has changed significantly over the past 20 years. Limitations on property taxes were put in place twice during the 90’s. These two major changes were: Ballot Measure 5 - Taxes from fiscal year 1991-92 to 1995-96 were increasingly limited until the limit of $5 per $1,000 Real Market Value for school taxes and $10 per $1,000 Real Market Val- ue for general government taxes was reached. Ballot Measure 50 - This is a property tax limitation measure which was approved by Oregon's voters in May 1997. The provisions in this measure rolled 1997 assessed values back to 90 per- cent of the 1995 value, established permanent rate limits for each tax district, allowed voters to approve local option levies outside these rates, established a method for taxing new property at a ratio of market value to the Maximum Assessed Value (giving similar tax savings to the new property), and limited the growth of Maximum Assessed Value for existing property to a maxi- mum of 3% each year. These limitations have reduced cities’ main source of revenue for core services such as police , library and parks. The purpose of this section is to describe the city’s major revenue sources, explain the underlying as- sumptions for the revenue estimates, and discuss significant revenue trends. Throughout this budget document there are revenue trend graphs for the city in total as well as for each of the major fund types. The revenue sources and assumptions used in the budget are summarized on the following pag- es. REVENUE ANALYSIS - PAGE 53 ASSESSED VALUE Property taxes are assessed by Washington County and are based on a property’s assessed value not the property’s real market value. Assessed values were established under Measure 50 and are based on the 1995-96 tax roll value less 10%. These values generally can’t increase more than 3% per year unless major improvements are made to the property or voters have authorized a new levy. For FY 2015-16, Tigard’s total assessed value is projected to be roughly 81% of its real market value. The city's permanent operating tax rate is $2.51 per $1,000 of assessed value. In 2015, the total assessed value of taxable property in Tigard was approximately $5.6 billion, which generates about $16.8 million in property tax revenue, including General Obligation Debt. For FY 2015 -16, it is assumed that the city's assessed property values will increase by 3.75% primarily due to higher collection rates and the city’s annexation activities. PAGE 54 - CITY OF TIGARD PROPERTY TAX SUMMARY The property tax system in Oregon has been heavily influenced by Measures 5 and 50, passed in 1990 and 1997 respectively. Because both rates and growth in assessed value are constrained, the economy has a limited effect on property tax revenue. However there has been recent interest by local governments in developing a more flexible tax system within the State of Oregon. The property tax levy continues to be the General Fund's single largest revenue source, estimated at $14.3 million for FY 2015-16. Property taxes, including prior years' taxes, account for 46% of all available resources estimated for FY 2015-16. Property taxes pay for police, parks, library, planning, municipal court, and several other services. The city has two voter approved GO Bond property tax levies. In May 2002 Tigard voters approved a $13 million General Obligation Bond to construct a new library. In November 2010 Tigard voters approved a parks bond measure allowing the city to issue up to $17 million in General Obligation Bonds for parks land acquisition. To date, the city has spent approximately $15.3 million of the parks bond. The remaining money will be used to fund additional park land and open space acquisi- tions and to construct various park improvements like shelters, playgrounds, trails, playing fields and restrooms. Actual Actual Est. Actual Proposed Tax Information 2012-2013 2013-2014 2014-2015 2015-2016 Property Taxes General Fund 12,787,066$ 13,297,201$ 13,404,815$ 14,330,765$ GO Debt Service 2,293,825 2,311,214 2,386,688 2,475,757 Total Tax Levied 15,080,891$ 15,608,415$ 15,791,503$ 16,806,522$ Assessed Values Prior Year Assessed Value 5,132,783,287$ 5,253,663,684$ 5,444,705,020$ 5,608,046,171$ Increase (up to 3%)99,906,001 124,178,486 117,261,446 151,573,746 Est. Annexations & New Const.20,974,396 33,431,425 46,079,705 58,727,985 Total Assessed Value 5,253,663,684$ 5,444,705,020$ 5,608,046,171$ 5,818,347,902$ Tax Rates/$1,000 AV General Fund Permanent Rate 2.51310$ 2.51310$ 2.51310$ 2.51310$ GO Debt Service 0.44130 0.43140 0.45762 0.45754 Tax Rate 2.95440$ 2.94450$ 2.97072$ 2.97064$ Assessed Value of Average Home 220,644$ 228,700$ 235,561$ 244,395$ General Fund 554.50 574.75 591.99 614.19 GO Debt Service 97.37 98.66 107.80 111.82 Total Estimated Tax per Household 651.87$ 673.41$ 699.78$ 726.01$ REVENUE ANALYSIS - PAGE 55 STATE REVENUE SHARING State revenue sharing monies, which include gas, liquor and cigarette taxes, are allocated to cities based on population with an adjustment for local taxing efforts. Using state projections, the League of Oregon Cities has produced the per capita estimates of State Shared Revenues for cities for the coming years. Cigarette tax is generated by two cents of the state-imposed $1.18 per pack cigarette tax. Revenue from the tax is allocated as follows: $0.22 to the state’s general fund; $0.87 to the Oregon Health Plan; $0.02 to cities; $0.02 to counties; $0.02 to the Oregon Department of Transportation for trans- portation services to the elderly and disabled; and $0.03 to the state’s tobacco use reduction account. Cities may use their share for general government purposes without program restrictions on their use. Liquor tax revenue may be used by cities for general government purposes. It is distributed by the Oregon Liquor Control Commission in two different manners:  20% of the state’s liquor receipts are allocated as revenues to cities on a per capita basis and distributed monthly; and  14% of state liquor receipts are allocated to cities on a formula basis, as outlined in ORS 221.770. PAGE 56 - CITY OF TIGARD STATE REVENUE SHARING Historical Tigard Tigard Today Picture courtesy of the Tigard Historical Association These estimates for FY 2015-16 assume no increase in the tax rates for beer, wine or distilled spirits, and no changes in the proportional allocation of revenues. Revenue will closely track the upward and downward trends in Tigard’s 20% per capita liquor tax distribution Gas tax is allocated to cities from vehicle title and registration fee and the gas tax. In 2009 the Ore- gon legislature approved the Jobs and Transportation Act which raised driver license and vehicle reg- istration fees, sets date for raising fuels taxes and created stable funding base of $300 million/year for city, county and state transportation infrastructure projects. The legislation generated an additional $54.6 million annually to be allocated to cities from vehicle title and registration fee increases and an increase in the gas tax. The change in funding was phased in, reaching 100% funded in 2013. The legislation prohibited local governments from enacting or amending charter provisions, ordi- nances or resolutions related to the collection of local motor vehicle taxes until Jan. 2, 2014. The leg- islation did not apply to Tigard because our local motor vehicle tax was in place. However, Tigard’s distribution of the state gas tax is adjusted to account for revenue received from the local gas tax which was grandfathered in under the legislation. Since the bulk of the gas taxes in Oregon are based on a per-gallon fee, the amount of money raised by gas taxes is declining. This is due to more fuel efficient cars, including electric cars, and people driving fewer miles. The Oregon legislature is starting to look at ways to change the state gas tax. One possibility is to change to a rate charged per mile driven. State Revenue Sharing is allocated to cities based on population with an adjustment for local taxing effort. It is anticipated that receipts from state revenue sharing will be much the same as actually re- ceived in FY 2014-15. REVENUE ANALYSIS - PAGE 57 FRANCHISE FEE REVENUE Franchise fees are charged as part of an agreement between local governments and utilities that use public rights‐of‐way. These agreements ensure that companies receiving special use of rights‐of‐way are paying fees to reimburse local governments for use of public services, and to prevent general tax- payers from subsidizing extraordinary use. Franchise agreements outline the terms under which utility companies use city rights‐of‐way, including compensation requirements. Franchise fees are typically calculated on a percentage of the revenues derived from sales of the utility company to customers in that service area or territory. Current franchisees and franchise rates are: Service Provider Rate Cable Television Comcast 5% Electric Portland General Electric 5% Garbage All Haulers 5% Natural Gas Northwest Natural Gas 5% Sanitary Sewer City of Tigard 5% Telecommunications All providers 5% Water City of Tigard 5% PAGE 58 - CITY OF TIGARD FRANCHISE FEE REVENUE  Cable TV – The Metropolitan Area Communications Commission (MACC), a consortium of cities in the metro area, administers the cable television franchise. While revenues from telecom franchise fees have been decreasing in recent years, cable franchises have increased.  Electricity - Portland General Electric (PGE) pays a franchise fee representing 5 percent of their gross revenues to Tigard.  Garbage – Pride Disposal and Waste Management are responsible for solid waste and recycling in Tigard. Each pays a 5% franchise fee. During FY 14 the City Council increased the solid waste franchise from 4% to 5%.  Natural Gas - Northwest Natural Gas pays 5% of gross revenues as a franchise fee to Tigard. Revenue projections remain steady for FY 2015-16.  Sanitary Sewer - The Sanitary Sewer Fund pays 5% of gross revenues as a franchise fee to the General Fund. As the fee is based on gross revenue, the fee will grow in relation to sewer rate increases.  Telecommunications – The shift from land line telephones to wireless technologies has result- ed in an erosion of telecommunications revenues in Tigard and throughout Oregon cities. Over the last few years, Tigard has seen a decrease in telecommunications franchise revenues.  Water - New water rates took effect on January 1, 2015. Water customer charge and water usage charge increased by 10.5%. Rate increases applied to all water customers, including non - residential customers. The average residential customer experienced an increase of about $5. The increase in water rates will increase franchise fee revenue proportionately. REVENUE ANALYSIS - PAGE 59 ENTERPRISE FUNDS - USER FEES User fees include water, sanitary sewer, and storm drainage fees charged to all users of such services. The sanitary and storm fees are established by the Clean Water Services Agency (CWS) and updated by the agency each year. The City Council, through an intergovernmental agreement with other sys- tem participants, sets the water rates. In 2008, Tigard entered into a water partnership with the City of Lake Oswego on a long -term water source. In order to pay for the debt that is necessary to complete the project, water rates in the Tigard Water Service Area increased approximately 34% in fiscal year 2010 -11 and then increased 14% per year each January through 2014. During FY 2013-14, the City of Tigard negotiated with the City of Lake Oswego to take an additional 4 million gallons per day of the capacity generated by this partner- ship project resulting in increased project costs for the city. Analysis determined that the city would need additional rate increases of 10.5% in January 2015 with four annual increases of 3.25% starting in 2016 and ending 2019 to alleviate the need to add more debt to the project and cover all project costs. PAGE 60 - CITY OF TIGARD CONNECTION FEES Connection fees include traffic development tax (TDT), storm and sanitary sewer connection charg- es, water connection and system development charges, parks system development charges and trans- portation system development charges added for FY 2015-16. The TDT is assessed on new devel- opment to help provide funds for the increased capacity transportation improvements needed to accommodate the additional vehicle traffic and demand for transit facilities generated by that devel- opment. This revenue category is showing a slight increase as development activity rises in Tigard. The city anticipates development activity will continue a slow increase over the next few years. The TDT provides funds for these capacity improvements to county and city arterials, certain collec- tors, and certain state and transit facilities as listed in the County’s Capital Improvements Project List. The TDT is categorized as an Improvement Fee. Revenue must be dedicated to capital im- provements that expand capacity and may not be used for maintenance, repair, or other non -capital improvements. New in FY 2016 is the Transportation SDC for Tigard. It has a similar purpose as the TDT and will add to Tigard’s ability to fund roads. As part of the funding of the water project with Lake Oswego, water system development charges (SDC) increased. In February 2011, the water SDC increased 87%. The increase fully implemented the reimbursement portion of the water SDC. Over a four year period, the improvement portion of the water SDC will be phased in, resulting in increased water SDC fees. REVENUE ANALYSIS - PAGE 61 PERMIT FEE REVENUE Permit fee revenues are recorded in the Building Fund, the Electrical Inspection Fund and the Gen- eral Fund. The primary fees that are represented in the chart include: Engineering Public Improve- ment Fee, Sign Permits, Land Use Planning Application Fees and all related Building Permit Fees. Nearly all fees are related to development activity and, therefore, reflect the level of that activity. In October 2010, building fees increased to bring them in line with area communities. Combined with modest growth in activity, permit revenues have recovered, and are expected to grow at a slow but steady rate through FY 2015-16. Staff is currently reviewing the permit fees in the General Fund to see if they are sufficient. PAGE 62 - CITY OF TIGARD COUNTY SHARED REVENUE County Shared Revenues include the Washington County gas tax, the Washington County Coopera- tive Library System (WCCLS) levy, and a countywide hotel/motel tax. Washington County collects a one-cent per gallon tax on gasoline and distributes it to cities in the county to use for road maintenance activities. This revenue source has seen very minor growth over the past few years because under current state law the tax per gallon cannot be increased, and as mentioned in the gas tax section, higher mileage vehicles and reduced driving are leading to less overall gas tax revenue. The hotel/motel tax is collected by Washington County at a 7% rate and is distributed to all partici- pating jurisdictions. Tigard receives about one-third of the amount collected in the city limits. Tax collections are directly related to room rental rates, the number of hotel and motel rooms within the city, and the economy. With the slow economic recovery, the city projects that this revenue source will remain stagnant. WCCLS funds come from the county property taxes generated from the county’s permanent proper- ty tax rate. The $0.17 per $1,000 of assessed value five-year levy supports WCCLS member libraries, including Tigard, and central services that link the twelve libraries together. The levy was renewed in the November 2010 election at the same rate. REVENUE ANALYSIS - PAGE 63 FINE AND FORFEITURE REVENUE This source of revenue includes traffic and civil infraction citations, which are processed by the Municipal Court, and fines for late and lost materials at the Library. Fine collections are directly related to the number of citations issued. The bail schedule is updated annually by the Municipal Court Judge. Revenue from fines and forfeitures are variable from year to year, but do not change significantly over the long-range timeframe. PAGE 64 - CITY OF TIGARD INTEREST EARNINGS Interest earnings are generated from the investment of cash on hand in various funds of the city. Interest earnings are directly attributable to the amount of cash available for investment and current interest rates. The city is assuming an interest rate of 0.6% for its investments, and anticipates that interest earnings will be relatively flat in FY 2015-16 as interest rates remain historically low. REVENUE ANALYSIS - PAGE 65 INTERFUND TRANSFERS Interfund transfers are the transfer of revenues between funds when the revenue is received in one fund for an expense that occurs in another fund or when city functions have more than one funding source. Another primary reason for transfers is for a fund to pay for services provided by another fund (for example, Financial Operations Division providing utility billing services for the Water, San- itary Sewer, Stormwater, and Street Maintenance Funds). A transfer-out is an expense to the fund that is transferring the money out or buying services. A transfer-in is a resource to the fund that is receiving the money or selling the service. For every ex- pense transfer-out, there is a corresponding resource transfer-in. The corresponding transfers must show the same dollar amount. The various types of interfund transfers are defined below: General Resource Transfer Transfer of resources from one fund to another which are not based upon a cost allocation plan, ac- tual expenditure, or any expectation of a payment for services provided. This type of transfer is simply a transfer of resources from one fund to another. Direct Resource Transfer/Capital Improvement Plan (CIP) Transfer Transfer of resources from one fund to another which are based upon a cost allocation plan and ac- tual expenditures or an expectation of a payment for services provided. This type of transfer is typi- cally based upon actual expenditure needs by a certain fund and are “trued up” from the budget fig- ure based upon actual expenditures. Debt/Loan Repayment Transfer Transfer of resources from one fund to another to pay either all or a portion of an interfund loan. This type of transfer is typically based upon a five-year repayment schedule for capital loans. Indirect Cost Transfer The Indirect Cost Transfers Out are typically budgeted along with a division’s operating budget to show the true cost for that division to the city. In turn, transfers received for services provided, are allocated based upon a cost allocation plan. PAGE 66 - CITY OF TIGARD INTERFUND TRANSFERS Division Indirect Cost Pool Allocation Factors City Management Mayor & Council, City Management, Web Services Agenda Items, Total Actual Expenditures (Excl. Debt), FTE’s, Web Services Finance Administration Budget/CIP Total Actual Expenditures, CIP Budget Financial Operations Reporting, Accounting/General Ledger, Accounts Payable, Payroll Total Actual Expenditures (Excl. Debt & Capital), Journal Entries, # of Invoices, FTE’s Human Resources Human Resources FTE’s Risk Management Insurance Premiums, Claims & Misc. FTE’s, # of Autos, Property Value, Other Insurance Costs, 3 yr. Avg. # of Insurance Incidents Information Technology IT-Support, IT-Geographic Information Systems (GIS) # of Computers, # Printers/Copiers, Help Desk Tickets, GIS Data Layers Design & Communications Mail, Graphics, Copiers Graphics Staff Time, FTE’s & Actual Expenditures (Excl. Debt), # of Printers/Copiers, Total Copier Costs City Recorder/Records Records Management, Council Support, Records Requests Time on Records Requests, Agenda Items, Electronic Records, # of Record Boxes, # of Microfiche Property Management Property Management Square Footage Fleet Maintenance Fleet Maintenance Fleet Work Order Expenses Contracts & Purchasing Contracts & Purchasing P-Card Transactions, # of Purchase Orders, $ of Purchase Orders Utility Billing Utility Billing, Meter Reading Meter Reading, Utility Accounts, Utility Revenues REVENUE ANALYSIS - PAGE 67 INTERFUND TRANSFERS Since the internal transfers are complex and can be difficult to follow and trace through the budget document, the following explanation is provided for each transfer, by fund. The budget document reflects a decrease in the number of transfers that are related to the Capital Improvement Plan (CIP) due to the implementation of the federally approved indirect cost plan. PAGE 68 - CITY OF TIGARD INTERFUND TRANSFERS REVENUE ANALYSIS - PAGE 69 INTERFUND TRANSFERS PAGE 70 - CITY OF TIGARD INTERFUND TRANSFERS REVENUE ANALYSIS - PAGE 71 INTERFUND TRANSFERS PAGE 72 - CITY OF TIGARD INTERFUND TRANSFERS PROGRAM SUMMARIES - PAGE 73 EXPENDITURE SUMMARY BY PROGRAM The city adopts and manages its operating expenditures by program. The city has four operating pro- grams: Policy & Administration, Community Development, Community Services, and Public Works. Within each of these programs are one or more departments and budgets units, or divisions. A more detailed explanation of the city’s program structure can be found in the Reader’s Guide section. The following tables give a summary of the expenditures for the programs, budget classifications, and staffing levels. PAGE 74 - CITY OF TIGARD OPERATING BUDGET HISTORY-SUMMARY PROGRAM SUMMARIES - PAGE 75 OPERATING BUDGET HISTORY PAGE 76 - CITY OF TIGARD OPERATING BUDGET HISTORY PROGRAM SUMMARIES - PAGE 77 OPERATING BUDGET HISTORY City staff gather for several events throughout the year-the Wellness Fair and the Opening Day staff-sponsored picnic are a couple of examples. PAGE 78 - CITY OF TIGARD STAFFING LEVELS The City of Tigard made reductions to its budget in 2010 and 2012 that reduced the level of core ser- vices that were available to the public. Since FY 2009, Tigard’s population has grown from 46,715 to 50,444, representing a growth of 8 percent. Over the same period of time, Tigard’s work force has decreased from 296.05 FTE to 270.15 FTE in this Adopted Budget, representing a decrease of 9 per- cent. The Adopted Budget for FY 2016 reflects an increase in staffing from the FY 2015 Adopted Budget of 261.95 FTE to 270.15 FTE. This increase of 8.20 FTE equates to a 3.1% increase in staffing. In FY 2016, the city will add a total of 11 positions in Community Services, Community Development, Policy and Administration and Public Works departments. A summary of the changes by department is be- low. Central Services The Adopted Budget for FY 2016 shows a reorganization of the department including the transfer of the Fleet Maintenance and Property Management divisions from Public Works. This will increase staffing in Central Services by 7.0 FTE compared to FY 2015. In addition, a limited duration .8 FTE Records Technician position ended. This brings the total change to 6.2 FTE for a total of 17.05 FTE. PROGRAM SUMMARIES - PAGE 79 STAFFING LEVELS Community Development During FY 2015, the department added an Assistant Planner to assist with increased workload activity related to construction. The FY 2016 Adopted Budget includes the addition of a Plans Examiner at 1.0 FTE and a limited duration Administrative Specialist 1 at .50 FTE in the Building Division to assist with the significant increase in construction activity within the city. Also, the Planning Division has added a limited duration 1.0 FTE Safe Routes to School Coordinator resulting from an intergovern- mental agreement with Metro related to the Regional Travel Options grant. This represents a 2.5 FTE increase from 25.8 FTE in FY 2015 to 28.3 FTE in FY 2016. Police The division FTE will show a 1.0 decrease for the reduction of one detective that was funded by Metro during FY 2015. In FY 2016, a detective will be added to the Commercial Crimes Unit to address vari- ous commercial and retail crimes in the city. Public Works Total FTE for this department will decrease by 6.0 in FY 2016 due to the reorganization in Central Ser- vices with the transfer of the Fleet Maintenance and Property Management Divisions from Public Works, decreasing the FTE by 7.0. This is offset by the addition of the 1.0 FTE Recreation Coordina- tor. Library A total of 3.5 FTE will be added to Circulation and Reader Services. Of the additions, 2.5 FTE are de- pendent on the passage of the WCCLS tax levy. These staff will assist with the re-opening of the library on Thursdays that was eliminated as a part of the FY 2012 citywide budget cuts. Risk Management & Human Resources These two divisions will increase by .70 FTE in Risk Management and .30 FTE in Human Resources with the addition of a Risk/HR Benefits Manager position resulting from the reorganization of the City Manager’s Office. Finance and Information Services There are no changes in the number of staff planned for FY 2016 in Finance and Information Services. PAGE 80 - CITY OF TIGARD City of Tigard | ADOPTED BUDGET | FY 2015–2016 One of Tigard’s many walking trails, with directional signage COMMUNITY SERVICES - PAGE 81 COMMUNITY SERVICES ORGANIZATION CHART PAGE 82 - CITY OF TIGARD COMMUNITY SERVICES PROGRAM The Community Services Program consists of programs provided by the Police Department and the Li- brary, and several Social Services and Community Event grants made by the city. Police programs include traditional public safety efforts (patrol, enforcement, traffic safety, etc.), but also include work with community groups to increase public safety awareness. Library programs include circulation of a wide variety of print and other media materials and the offering of a few programs designed to increase reading, computer skills, and lifelong learning. Social Service and Community Event grants provide funding to a variety of community organizations and groups that provide services to those in need in the community or which offer events that promote a greater sense of community. The primary source of funding for this program area is the General Fund. Tigard Public Library COMMUNITY SERVICES - PAGE 83 COMMUNITY SERVICES PROGRAM PAGE 84 - CITY OF TIGARD POLICE ORGANIZATION CHART ADMINISTRATION SUPPORT SERVICES POLICE OPERATIONS 84.50 COMMUNITY SERVICES - PAGE 85 POLICE ADMINISTRATION BUDGET UNIT: 4000 PAGE 86 - CITY OF TIGARD POLICE ADMINISTRATION BUDGET UNIT: 4000 COMMUNITY SERVICES - PAGE 87 BUDGET UNIT: 4000 POLICE ADMINISTRATION PAGE 88 - CITY OF TIGARD POLICE ADMINISTRATION BUDGET UNIT: 4000 COMMUNITY SERVICES - PAGE 89 POLICE ADMINISTRATION BUDGET UNIT: 4000 PAGE 90 - CITY OF TIGARD POLICE ADMINISTRATION BUDGET UNIT: 4000 COMMUNITY SERVICES - PAGE 91 BUDGET UNIT: 4000 POLICE ADMINISTRATION Baxter And Diesel Tigard Canine Department Tigard Police PAGE 92 - CITY OF TIGARD POLICE OPERATIONS BUDGET UNIT: 4100 COMMUNITY SERVICES - PAGE 93 POLICE OPERATIONS BUDGET UNIT: 4100 PAGE 94 - CITY OF TIGARD POLICE OPERATIONS BUDGET UNIT: 4100 COMMUNITY SERVICES - PAGE 95 POLICE OPERATIONS BUDGET UNIT: 4100 PAGE 96 - CITY OF TIGARD POLICE OPERATIONS BUDGET UNIT: 4100 COMMUNITY SERVICES - PAGE 97 POLICE OPERATIONS BUDGET UNIT: 4100 A small portion of Police Operations is funded from the Criminal Forfeiture fund. Prior to FY 2014, these funds were transferred to the General Fund. In FY 2016, the expenditures are being made direct- ly out of the Criminal Forfeiture fund. PAGE 98 - CITY OF TIGARD POLICE SUPPORT SERVICES BUDGET UNIT: 4200 COMMUNITY SERVICES - PAGE 99 POLICE SUPPORT SERVICES BUDGET UNIT: 4200 PAGE 100 - CITY OF TIGARD POLICE SUPPORT SERVICES BUDGET UNIT: 4200 COMMUNITY SERVICES - PAGE 101 POLICE SUPPORT SERVICES BUDGET UNIT: 4200 PAGE 102 - CITY OF TIGARD POLICE SUPPORT SERVICES BUDGET UNIT: 4200 COMMUNITY SERVICES - PAGE 103 BUDGET UNIT: 4200 POLICE SUPPORT SERVICES PAGE 104 - CITY OF TIGARD BUDGET UNIT: 4200 POLICE SUPPORT SERVICES A small portion of Police Support Services is funded from the Criminal Forfeiture fund. Prior to FY 2014, these funds were transferred to the General Fund. In FY 2016, the expenditures are being made directly out of the Criminal Forfeiture fund. COMMUNITY SERVICES - PAGE 105 POLICE SUPPORT SERVICES BUDGET UNIT: 4200 The average lifespan of a Tigard police car is about 5-6 years. Each car is equipped with a Mobile Data computer. For safety reasons, this computer shuts off automatically when the car’s speed gets up to a certain level. Additionally, each car has a camera in the front and back that is activated once an officer turns on their lights and siren. Each car tracks its speed, braking and turn signal usage, which is used when needed for investigative purposes. PAGE 106 - CITY OF TIGARD LIBRARY ADMINISTRATION TECHNICAL SERVICES READERS’ SERVICES CIRCULATION LIBRARY ORGANIZATION CHART 34.80 COMMUNITY SERVICES - PAGE 107 LIBRARY ADMINISTRATION BUDGET UNIT: 5000 PAGE 108 - CITY OF TIGARD LIBRARY ADMINISTRATION BUDGET UNIT: 5000 COMMUNITY SERVICES - PAGE 109 LIBRARY ADMINISTRATION BUDGET UNIT: 5000 PAGE 110 - CITY OF TIGARD LIBRARY ADMINISTRATION BUDGET UNIT: 5000 COMMUNITY SERVICES - PAGE 111 LIBRARY ADMINISTRATION BUDGET UNIT: 5000 PAGE 112 - CITY OF TIGARD LIBRARY ADMINISTRATION BUDGET UNIT: 5000 The Tigard Library is the largest lender of materials to other Washington County libraries, which includes books, CDs and DVDs. They have been the highest net lender for six years in a row, which is a testament as to how robust is their collection COMMUNITY SERVICES - PAGE 113 BUDGET UNIT: 5100 LIBRARY READER SERVICES PAGE 114 - CITY OF TIGARD LIBRARY READER SERVICES BUDGET UNIT: 5100 COMMUNITY SERVICES - PAGE 115 LIBRARY READER SERVICES BUDGET UNIT: 5100 PAGE 116 - CITY OF TIGARD LIBRARY READER SERVICES BUDGET UNIT: 5100 COMMUNITY SERVICES - PAGE 117 BUDGET UNIT: 5100 LIBRARY READER SERVICES The library has approximately 90 computers for public use. PAGE 118 - CITY OF TIGARD BUDGET UNIT: 5200 LIBRARY TECHNICAL SERVICES COMMUNITY SERVICES - PAGE 119 LIBRARY TECHNICAL SERVICES BUDGET UNIT: 5200 PAGE 120 - CITY OF TIGARD BUDGET UNIT: 5200 LIBRARY TECHNICAL SERVICES COMMUNITY SERVICES - PAGE 121 LIBRARY CIRCULATION BUDGET UNIT: 5300 PAGE 122 - CITY OF TIGARD BUDGET UNIT: 5300 LIBRARY CIRCULATION COMMUNITY SERVICES - PAGE 123 BUDGET UNIT: 5300 LIBRARY CIRCULATION PAGE 124 - CITY OF TIGARD LIBRARY CIRCULATION BUDGET UNIT: 5300 COMMUNITY SERVICES - PAGE 125 SOCIAL SERVICES AND COMMUNITY EVENTS BUDGET UNIT: 5900/5910 Program Description: Each year the city appropriates funds to support Social Service and Community Event activities that assist or benefit Tigard citizens. Community organizations are invited to submit requests in January of each year. A subcommittee of the Budget Committee meets to review Social Service requests and to recommend funding in the Proposed Budget. Community Event requests are reviewed informally by the Council. The Proposed Budget presents the results of both reviews. The budget committee guideline is to set total events and social service appropriations at approximately one-half of 1% of the prior year’s operating budget. Also, the city budgets three set asides within this appropriation in addition to the target amount for grants: the Housing Program “emergency fund” to assist occupants of housing declared to be unsafe; the Affordable Housing Set-Aside to assist providers of low-income housing; and the Residential Services Agency Emergency Set-Aside to assist agencies that provide emergency food and housing to those in need. The city received $378,780 in grant requests for community events and social services for FY 2015-16. In addition to direct grants, some of the grant recipients also receive in-kind services from the city. These services range from provision of a building and its operating costs for the Loaves and Fishes/ Tigard Senior Center to Tigard Public Works and Police time to support community events. Tigard’s Middle of Millen Drive parade is a favorite 4th of July activity Tigard’s 4th of July celebration culminates with a fire- works display at Tigard High School PAGE 126 - CITY OF TIGARD BUDGET UNIT: 5900/5910 SOCIAL SERVICES AND COMMUNITY EVENTS COMMUNITY SERVICES - PAGE 127 SOCIAL SERVICES AND COMMUNITY EVENTS BUDGET UNIT: 5900/5910 City of Tigard City of Tigard FY 2015-16 FY 2015-16 Community Event Grant Requests Social Services Grant Requests Agency Recommended Agency Recommended Res 00-22 Broadway Rose*Direct 10,000$ Affordable Housing Set-Aside Direct 1$ $10,000/yr Res 00-20 Festival of the Balloons**Direct 20,000$ Housing Prog Emergency Fund Direct 1$ $10,000/yr In-Kind 65,000$ Res 00-21 Tigard 4th of July***Direct 17,400$ Residential Services Agency Direct 1$ $7,500/yr 7/1-12,000 issued In-Kind 1,600$ Undesignated Set-Aside -$ Undesignated Direct 1$ Set Aside Total Set Aside Total Direct 47,400$ Direct 4$ In-Kind 66,600$ In-Kind -$ City of Tigard Dog Park Direct 400$ Boys & Girls Aid Direct 3,000$ Downtown Tigard Events Direct 6,700$ Caring Closet Direct 6,000$ Mask & Mirror Direct 6,000$ Community Acition Organization Direct 8,000$ Relay for Life of Tigard/Tualatin Direct 1,000$ Community Warehouse Direct 4,600$ Tigard Area Farmers Market Direct $8,500 Compassion Tigard Clinic Direct 7,500$ Tigard Bull Mtn Farmers Market Direct 4,000$ Domestic Violence Resource Center Direct 6,000$ Tigard High Graduation Party Direct 2,000$ Everybody Dance Now! Portland Direct 2,000$ Tigard Historical Association Direct 500$ Fairhaven Recovery Homes Direct 2,500$ Tigard Little League Direct 1,000$ Good Neighbor Center Direct 15,000$ Tigard Safety Town Direct 2,000$ Lifeworks Direct 20,000$ Tualatin Riverkeepers Direct 2,000$ Luke Dorf Inc Direct 30,000$ In-Kind 1,000$ Tualatin Valley Community Band Direct 500$ Meals On Wheels/Tigard Senior Center Direct 29,000$ In-Kind 101,335$ Washington Co Bicycle Trans Direct 1,000$ Open Door Direct 6,000$ In-Kind 200$ Oregon Human Development Corp Direct 20,000$ Rebuilding Together Washington County Direct 2,000$ Sexual Assault Resource Center Direct 6,000$ St. Anthony Severe Weather Shelter Direct 5,000$ St. Vincent De Paul-St. Anthony Tigard Direct 4,000$ Tigard Area Chamber of Commerce Direct 5,000$ Tigard Grange #148 Direct 3,000$ Tigard Tualatin Family Resource Ctr Direct 6,500$ Washington County Project Homeless Connect Direct 2,500$ Sub-total Sub-total Direct 35,600$ Direct 193,600$ In-Kind 1,200$ In-Kind 101,335$ Total (Set asides and others)Total (Set asides and others) Direct 83,000$ Direct 193,604$ In-Kind 67,800$ In-Kind 101,335$ PAGE 128 - CITY OF TIGARD City of Tigard | ADOPTED BUDGET | FY 2015–2016 Tigard has many walking trails and the Strategic Plan calls for additional trails, leading to interesting destinations. PUBLIC WORKS - PAGE 129 PUBLIC WORKS ORGANIZATION CHART PUBLIC WORKS STREET MAINTENANCE PW ENGINEERING ADMINISTRATION WATER PARKS UTILITY SANITARY SEWER STORMWATER STREET LIGHTS & SIGNALS PAGE 130 - CITY OF TIGARD PUBLIC WORKS PROGRAM Bishop Scheckla Pavilion at Cook Park Public Works employees cleaning out a manhole on a Tigard street The Public Works Department encompasses the planning, design, construction, operation and mainte- nance of the public infrastructure. That infrastructure includes domestic water, sanitary sewer convey- ance, storm water management, public parks, streets, city buildings and fleet. From a broad perspective, the department is made up of two groups: 1) operational staff who handle the day-to-day operation, maintenance and repair of the infrastructure; and 2) engineering staff who manage the city’s capital improvement program and handle traffic/transportation management and long-term master planning of infrastructure, as well as private development review. The Lake Oswego Tigard Water Partnership is one of the department’s largest initiatives; partnership funding spans several fiscal years. Tigard entered into the partnership in 2008 —the culmination of Tigard’s 15-year search to obtain ownership and control in a secure, dependable, high-quality drinking water source. Through the partnership, Tigard and Lake Oswego will update and expand Lake Oswego’s existing water system to serve both communities’ future water needs. When the new water source comes on line in 2016, Tigard will have access to 18 million gallons of water per day —enough water to meet the needs of its 58,000 customers in the Tigard Water Service Area. PUBLIC WORKS - PAGE 131 PUBLIC WORKS PROGRAM PAGE 132 - CITY OF TIGARD PUBLIC WORKS ADMINISTRATION BUDGET UNIT: 6000 PUBLIC WORKS - PAGE 133 PUBLIC WORKS ADMINISTRATION BUDGET UNIT: 6000 PAGE 134 - CITY OF TIGARD PUBLIC WORKS ADMINISTRATION BUDGET UNIT: 6000 PUBLIC WORKS - PAGE 135 PUBLIC WORKS ADMINISTRATION BUDGET UNIT: 6000 PAGE 136 - CITY OF TIGARD PUBLIC WORKS ADMINISTRATION BUDGET UNIT: 6000 Dirksen Nature Park-Within the park, natural areas will be preserved and enhanced, and a ball field and interpretive center will be constructed. The development plan will be phased in with the construction plan to include restroom and shelter, parking lot, and educational center upgrades. PUBLIC WORKS - PAGE 137 BUDGET UNIT: 6150 PARKS UTILITY PAGE 138 - CITY OF TIGARD PARKS UTILITY BUDGET UNIT: 6150 PUBLIC WORKS - PAGE 139 PARKS UTILITY BUDGET UNIT: 6150 PAGE 140 - CITY OF TIGARD PARKS UTILITY BUDGET UNIT: 6150 PUBLIC WORKS - PAGE 141 PARKS UTILITY BUDGET UNIT: 6150 Woodard Park in Tigard, Oregon PAGE 142 - CITY OF TIGARD PARKS AND GROUNDS-HISTORICAL BUDGET UNIT: 6100 PUBLIC WORKS - PAGE 143 PARKS AND GROUNDS-HISTORICAL BUDGET UNIT: 6100 This budget includes the creation of a Parks Utility Fund which takes the place of the Parks and Grounds. This report is showing historical data from previous years. PAGE 144 - CITY OF TIGARD BUDGET UNIT: 6200 STREET MAINTENANCE PUBLIC WORKS - PAGE 145 STREET MAINTENANCE BUDGET UNIT: 6200 PAGE 146 - CITY OF TIGARD STREET MAINTENANCE BUDGET UNIT: 6200 Tigard’s Street Maintenance team maintain the city’s many streets and crossings by regularly repainting and restriping PUBLIC WORKS - PAGE 147 STREET MAINTENANCE BUDGET UNIT: 6200 PAGE 148 - CITY OF TIGARD STREET MAINTENANCE BUDGET UNIT: 6200 City workers install a crosswalk on a street with high foot traffic PUBLIC WORKS - PAGE 149 PW ENGINEERING BUDGET UNIT: 6250 PAGE 150 - CITY OF TIGARD BUDGET UNIT: 6250 PW ENGINEERING PUBLIC WORKS - PAGE 151 PW ENGINEERING BUDGET UNIT: 6250 PAGE 152 - CITY OF TIGARD BUDGET UNIT: 6250 PW ENGINEERING PUBLIC WORKS - PAGE 153 PW ENGINEERING BUDGET UNIT: 6250 The Derry Dell Creek Improvement Project in Tigard, Oregon has won the 2015 State Land Board Stream Award for responsible, sustainable stewardship of Oregon’s natural resources. The City of Tigard and Clean Water Services partnered on the project to address extreme erosion on private prop- erty, barriers to fish passage, floodplain disconnection, exposed sanitary sewers and water lines, unsafe pedestrian trails and gaps in the regional trail system. Clean Water Services is the public water resources utility for urban Washington County and Tigard is one of its member cities. Doug Vorwaller Phohography PAGE 154 - CITY OF TIGARD HEALTHY STREAMS-HISTORICAL BUDGET UNIT: 6260 The Healthy Streams division was created in FY 2013, but was consolidated with the Stormwater division in FY 2014. This page is for historical purposes only. PUBLIC WORKS - PAGE 155 FLEET MAINTENANCE-HISTORICAL BUDGET UNIT: 6300 The Fleet Maintenance division was moved to the Administrative Services department in FY 2015. This page is for historical purposes only. PAGE 156 - CITY OF TIGARD BUDGET UNIT: 6400 PROPERTY MANAGEMENT-HISTORICAL The Property Management division was moved to the Administrative Services department in FY 2015. This page is for historical purposes only. PUBLIC WORKS - PAGE 157 WATER BUDGET UNIT: 6500 PAGE 158 - CITY OF TIGARD WATER BUDGET UNIT: 6500 PUBLIC WORKS - PAGE 159 WATER BUDGET UNIT: 6500 PAGE 160 - CITY OF TIGARD WATER BUDGET UNIT: 6500 Tigard and Lake Oswego water treatment plant PUBLIC WORKS - PAGE 161 WATER BUDGET UNIT: 6500 New river intake pump station along the Clacka- mas River PAGE 162 - CITY OF TIGARD WATER BUDGET UNIT: 6500 Threading a 3,900-foot welded steel water pipe through a tunnel under the Willamette River PUBLIC WORKS - PAGE 163 SANITARY SEWER BUDGET UNIT: 6600 PAGE 164 - CITY OF TIGARD BUDGET UNIT: 6600 SANITARY SEWER PUBLIC WORKS - PAGE 165 SANITARY SEWER BUDGET UNIT: 6600 PAGE 166 - CITY OF TIGARD SANITARY SEWER BUDGET UNIT: 6600 PUBLIC WORKS - PAGE 167 SANITARY SEWER BUDGET UNIT: 6000 Water main improvements during the Burnham Street Project in Tigard, Oregon PAGE 168 - CITY OF TIGARD STORMWATER BUDGET UNIT: 6700 PUBLIC WORKS - PAGE 169 STORMWATER BUDGET UNIT: 6700 PAGE 170 - CITY OF TIGARD STORMWATER BUDGET UNIT: 6700 PUBLIC WORKS - PAGE 171 BUDGET UNIT: 6700 STORMWATER A vegetated swale treats stormwater before it is discharged into a wetland and stream. Outfall retrofits re-route untreated stormwater into treatment facilities, like the bio-swale shown above PAGE 172 - CITY OF TIGARD STREET LIGHTS & SIGNALS BUDGET UNIT: 6800 PUBLIC WORKS - PAGE 173 STREET LIGHTS & SIGNALS BUDGET UNIT: 6800 PAGE 174 - CITY OF TIGARD City of Tigard | ADOPTED BUDGET | FY 2015–2016 The bridge on the Fanno Creek Trail over Fanno Creek, which connects to the neighborhood, home of the Tigard Senior Center, is a popular pedestrian path. COMMUNITY DEVELOPMENT - PAGE 175 COMMUNITY DEVELOPMENT ORGANIZATION CHART ECONOMIC DEVELOPMENT COMMUNITY DEVELOPMENT PLANNING COMMUNITY DEVELOPMENT BUILDING PAGE 176 - CITY OF TIGARD COMMUNITY DEVELOPMENT PROGRAM City of Tigard City Hall This section includes budget appropriations and explanatory materials for the Community Develop- ment Program. The Community Development Department budget includes three divisions: Communi- ty Development Planning, Building and Economic Development. These divisions are responsible for the following functions: Development review permit services, Long range land use and transportation planning, City code enforcement, Building inspection and permit services, Economic development and downtown urban renewal, and Department administration. The department has successfully transitioned to a full service community development department with emphasis on developing its partnerships and operations to more actively stimulate new invest- ment in key places. The city’s Economic Development program continues to implement the City Cen- ter Urban Renewal Plan, including the development of new market rate housing in downtown Tigard. The department successfully delivered the River Terrace Community Plan and is now moving forward with review and approval of the first subdivisions and planned developments in the new community of River Terrace. The department is conducting a code audit that will help identify ways that the city’s Community Development Code can be improved to better implement and support the city’s Strategic Plan Vision of walkability. Policy planning has been completed for the Tigard Triangle and that plan is now moving into the implementation phase. The Triangle Plan will serve as the first plan area in the city to have development code that specifically fosters the development of a walkable and intercon- nected community. The department will also continue to update and improve its permitting, inspec- tions and development review and customer service operations. COMMUNITY DEVELOPMENT - PAGE 177 COMMUNITY DEVELOPMENT PROGRAM PAGE 178 - CITY OF TIGARD COMMUNITY DEVELOPMENT—PLANNING BUDGET UNIT: 3000 COMMUNITY DEVELOPMENT - PAGE 179 BUDGET UNIT: 3000 COMMUNITY DEVELOPMENT—PLANNING PAGE 180 - CITY OF TIGARD BUDGET UNIT: 3000 COMMUNITY DEVELOPMENT—PLANNING COMMUNITY DEVELOPMENT - PAGE 181 BUDGET UNIT: 3000 COMMUNITY DEVELOPMENT—PLANNING PAGE 182 - CITY OF TIGARD BUDGET UNIT: 3000 COMMUNITY DEVELOPMENT—PLANNING COMMUNITY DEVELOPMENT - PAGE 183 COMMUNITY DEVELOPMENT—PLANNING BUDGET UNIT: 3000 PAGE 184 - CITY OF TIGARD BUILDING BUDGET UNIT: 3100 COMMUNITY DEVELOPMENT - PAGE 185 BUILDING BUDGET UNIT: 3100 PAGE 186 - CITY OF TIGARD BUDGET UNIT: 3100 BUILDING COMMUNITY DEVELOPMENT - PAGE 187 BUDGET UNIT: 3100 BUILDING PAGE 188 - CITY OF TIGARD BUDGET UNIT: 3100 BUILDING COMMUNITY DEVELOPMENT - PAGE 189 ECONOMIC DEVELOPMENT BUDGET UNIT: 3700 PAGE 190 - CITY OF TIGARD ECONOMIC DEVELOPMENT BUDGET UNIT: 3700 COMMUNITY DEVELOPMENT - PAGE 191 BUDGET UNIT: 3700 ECONOMIC DEVELOPMENT PAGE 192 - CITY OF TIGARD ECONOMIC DEVELOPMENT BUDGET UNIT: 3700 COMMUNITY DEVELOPMENT - PAGE 193 BUDGET UNIT: 3700 ECONOMIC DEVELOPMENT Monument sign at one of the entrance intersections into Tigard’s downtown PAGE 194 - CITY OF TIGARD ECONOMIC DEVELOPMENT BUDGET UNIT: 3700 COMMUNITY DEVELOPMENT - PAGE 195 DEVELOPMENT SERVICES-HISTOTRICAL BUDGET UNIT: 3200 PAGE 196 - CITY OF TIGARD In fiscal year 2014, Development Services and Community Planning merged with Community Development Administra- tion to create a new division, called Community Development-Planning COMMUNITY PLANNING-HISTORICAL BUDGET UNIT: 3300 POLICY AND ADMINISTRATION - PAGE 197 POLICY & ADMINISTRATION ORGANIZATION CHART POLICY & ADMINISTRATION MAYOR AND COUNCIL FINANCE & INFORMATION SERVICES CITY MANAGEMENT CENTRAL SERVICES PAGE 198 - CITY OF TIGARD POLICY AND ADMINISTRATION PROGRAM The Policy and Administration Program consists of the Mayor and Council, City Management, Central Services and the Finance and Information Service Departments. This program includes a wide variety of functions that encompass the areas of administrative support, fleet and property management, stra- tegic planning, city management, computer and information services, financial management, account- ing, utility billing, municipal court, human resource management, records management, risk manage- ment and contracts and purchasing. The Mayor and Council and the Municipal Court budgets are funded completely out of the General Fund. The other budget units are funded by charge backs to other city programs that use these com- mon services. POLICY AND ADMINISTRATION - PAGE 199 MAYOR AND CITY COUNCIL 0.00 0.00 PAGE 200 - CITY OF TIGARD MAYOR & CITY COUNCIL BUDGET UNIT: 0500 POLICY AND ADMINISTRATION - PAGE 201 MAYOR & CITY COUNCIL BUDGET UNIT: 0500 PAGE 202 - CITY OF TIGARD BUDGET UNIT: 0500 MAYOR & CITY COUNCIL POLICY AND ADMINISTRATION - PAGE 203 MAYOR & CITY COUNCIL BUDGET UNIT: 0500 PAGE 204 - CITY OF TIGARD MAYOR & CITY COUNCIL BUDGET UNIT: 0500 POLICY AND ADMINISTRATION - PAGE 205 MAYOR & CITY COUNCIL BUDGET UNIT: 0500 PAGE 206 - CITY OF TIGARD MAYOR & CITY COUNCIL BUDGET UNIT: 0500 POLICY AND ADMINISTRATION - PAGE 207 MAYOR & CITY COUNCIL BUDGET UNIT: 0500 0.00 0.00 0.00 PAGE 208 - CITY OF TIGARD CITY MANAGEMENT ORGANIZATION CHART 10.90 POLICY AND ADMINISTRATION - PAGE 209 CITY MANAGER’S OFFICE BUDGET UNIT: 1000 PAGE 210 - CITY OF TIGARD CITY MANAGER’S OFFICE BUDGET UNIT: 1000 POLICY AND ADMINISTRATION - PAGE 211 BUDGET UNIT: 1000 CITY MANAGER’S OFFICE PAGE 212 - CITY OF TIGARD CITY MANAGER’S OFFICE BUDGET UNIT: 1000 POLICY AND ADMINISTRATION - PAGE 213 BUDGET UNIT: 1100 HUMAN RESOURCES PAGE 214 - CITY OF TIGARD BUDGET UNIT: 1100 HUMAN RESOURCES POLICY AND ADMINISTRATION - PAGE 215 BUDGET UNIT: 1100 HUMAN RESOURCES PAGE 216 - CITY OF TIGARD BUDGET UNIT: 1100 HUMAN RESOURCES POLICY AND ADMINISTRATION - PAGE 217 HUMAN RESOURCES BUDGET UNIT: 1100 PAGE 218 - CITY OF TIGARD RISK MANAGEMENT BUDGET UNIT: 1200 POLICY AND ADMINISTRATION - PAGE 219 BUDGET UNIT: 1200 RISK MANAGEMENT PAGE 220 - CITY OF TIGARD BUDGET UNIT: 1200 RISK MANAGEMENT POLICY AND ADMINISTRATION - PAGE 221 BUDGET UNIT: 1200 RISK MANAGEMENT Occasionally the Insurance Fund is used to pay for some expenses directly related to Risk Manage- ment. PAGE 222 - CITY OF TIGARD CENTRAL SERVICES ORGANIZATION CHART CENTRAL SERVICES DESIGN & COMMUNICATIONS CITY RECORDER/ RECORDS MUNICIPAL COURT PROPERTY MANAGEMENT FLEET WEB COORDINATOR 10.85 10.85 10.85 POLICY AND ADMINISTRATION - PAGE 223 DESIGN & COMMUNICATIONS BUDGET UNIT: 1300 PAGE 224 - CITY OF TIGARD DESIGN & COMMUNICATIONS BUDGET UNIT: 1300 POLICY AND ADMINISTRATION - PAGE 225 DESIGN & COMMUNICATIONS BUDGET UNIT: 1300 PAGE 226 - CITY OF TIGARD BUDGET UNIT: 1300 DESIGN & COMMUNICATIONS POLICY AND ADMINISTRATION - PAGE 227 BUDGET UNIT: 1400 MUNICIPAL COURT PAGE 228 - CITY OF TIGARD MUNICIPAL COURT BUDGET UNIT: 1400 POLICY AND ADMINISTRATION - PAGE 229 MUNICIPAL COURT BUDGET UNIT: 1400 PAGE 230 - CITY OF TIGARD BUDGET UNIT: 1500 CITY RECORDER/RECORDS POLICY AND ADMINISTRATION - PAGE 231 CITY RECORDER/RECORDS BUDGET UNIT: 1500 PAGE 232 - CITY OF TIGARD BUDGET UNIT: 1500 CITY RECORDER/RECORDS As of January, 2015, there were 27,702 registered voters in Tigard. Oregon was one of the first states to use mail in voting, and Tigard has a drive through ballot box for citizen’s convenience. POLICY AND ADMINISTRATION - PAGE 233 CITY RECORDER/RECORDS BUDGET UNIT: 1500 PAGE 234 - CITY OF TIGARD FLEET MAINTENANCE BUDGET UNIT: 6350 POLICY AND ADMINISTRATION - PAGE 235 FLEET MAINTENANCE BUDGET UNIT: 6350 PAGE 236 - CITY OF TIGARD FLEET MAINTENANCE BUDGET UNIT: 6350 POLICY AND ADMINISTRATION - PAGE 237 PROPERTY MANAGEMENT BUDGET UNIT: 6450 PAGE 238 - CITY OF TIGARD BUDGET UNIT: 6450 PROPERTY MANAGEMENT POLICY AND ADMINISTRATION - PAGE 239 BUDGET UNIT: 6450 PROPERTY MANAGEMENT PAGE 240 - CITY OF TIGARD FINANCE AND INFORMATION SERVICES ORGANIZATION CHART 22.20 POLICY AND ADMINISTRATION - PAGE 241 FINANCE & INFORMATION SERVICES ADMIN BUDGET UNIT: 2000 PAGE 242 - CITY OF TIGARD FINANCE & INFORMATION SERVICES ADMIN BUDGET UNIT: 2000 POLICY AND ADMINISTRATION - PAGE 243 FINANCE & INFORMATION SERVICES ADMIN BUDGET UNIT: 2000 PAGE 244 - CITY OF TIGARD FINANCE & INFORMATION SERVICES ADMIN BUDGET UNIT: 2000 BUDGET UNIT: 2000 POLICY AND ADMINISTRATION - PAGE 245 BUDGET UNIT: 2100 FINANCIAL OPERATIONS PAGE 246 - CITY OF TIGARD BUDGET UNIT: 2100 FINANCIAL OPERATIONS POLICY AND ADMINISTRATION - PAGE 247 BUDGET UNIT: 2100 FINANCIAL OPERATIONS PAGE 248 - CITY OF TIGARD UTILITY BILLING BUDGET UNIT: 2200 POLICY AND ADMINISTRATION - PAGE 249 BUDGET UNIT: 2200 UTILITY BILLING PAGE 250 - CITY OF TIGARD UTILITY BILLING BUDGET UNIT: 2200 POLICY AND ADMINISTRATION - PAGE 251 BUDGET UNIT: 2300 INFORMATION TECHNOLOGY PAGE 252 - CITY OF TIGARD BUDGET UNIT: 2300 INFORMATION TECHNOLOGY POLICY AND ADMINISTRATION - PAGE 253 BUDGET UNIT: 2300 INFORMATION TECHNOLOGY PAGE 254 - CITY OF TIGARD BUDGET UNIT: 2300 INFORMATION TECHNOLOGY POLICY AND ADMINISTRATION - PAGE 255 BUDGET UNIT: 2500 CONTRACTS & PURCHASING PAGE 256 - CITY OF TIGARD BUDGET UNIT: 2500 CONTRACTS & PURCHASING POLICY AND ADMINISTRATION - PAGE 257 BUDGET UNIT: 2500 CONTRACTS & PURCHASING PAGE 258 - CITY OF TIGARD City of Tigard | ADOPTED BUDGET | FY 2015–2016 The Tualatin River flows through Cook Park in Tigard, Oregon (picture by refalo.com) CAPITAL IMPROVEMENT PLAN - PAGE 259 CAPITAL IMPROVEMENT PLAN - EXECUTIVE SUMMARY The Capital Improvement Plan (CIP) establishes Tigard’s annual budget for capital improvements to its public facility system and plans the following five years to make a 6-year plan. The city allocates funding for its major construction activities in six defined capital improvement categories such as Gen- eral Capital Facilities, Streets, Water, Parks, Stormwater, and Sanitary Sewer. A CIP project is any project that improves or adds value to the city’s infrastructure, costs $50,000 or more, and has a useful life or extends the useful life of infrastructure for 5 years or more. Public facili- ties addressed by the CIP are roads, parks, sanitary sewer, storm drainage, water quality management, domestic water, public buildings, and operations facilities. For the FY 2016 CIP, the city process was revised based on input from Budget Committee and City Council. This process resulted in the genera- tion of a six-year CIP project list that is initially reviewed by council. After submission to council, the CIP list is submitted to citizen members such as the Tigard Transportation Advisory Committee (TTAC), the City Center Advisory Commission (CCAC), and the Parks and Recreation Advisory Board (PRAB) for prioritization. Adopted Master Plans, Area Plans, and the Strategic Plan along with estab- lished prioritization lists are matched to available funding to identify projects to be budgeted in the cur- rent and later years. In addition, staff capacity is considered when building the CIP. Total cost for the FY 2016-20 CIP is estimated to be $100 million over the next six years. Spending for the city’s CIP in FY 2016 is $38.9 million across all capital funds. Below are key projects budgeted for FY 2015-16: General Capital Facilities  Final phase of the replacement of exterior wall materials at City Hall/Police buildings Parks  Phase 1 development of Dirksen Nature Park  Implementation of the intergovernmental agreement between the City of Tigard and Tigard -Tualatin School District to provide field improvements on school property,  Construction of the remaining segments of the Fanno Creek Trail Connection project that is funded by Regional Flexible Funds Active Transportation and Complete Streets grant (RFFA) and,  Continued purchase of open spaces using proceeds obtained from the city’s $17 million parks bond approved in FY 2010. Sewer  Replacement of the East Tigard Sanitary Sewer and,  Development of a sanitary sewer line in conjunction with the street project on Walnut Street. PAGE 260 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - EXECUTIVE SUMMARY CAPITAL IMPROVEMENT PROGRAM EXECUTIVE SUMMARY Stormwater  Reconstruction of the storm facility at Greenfield Drive near Pine View  Upgrade of the storm line at 106th Avenue to Pacific Highway and,  Development of a stormwater master plan. Streets  Major street improvements including Walnut Street and Pacific Highway/Gaarde Street/McDonald Street and,  Continued slurry seals, crack seals, and overlays via the Pavement Management Program. Water  Continuation of the projects associated with the Tigard/Lake Oswego Partnership  New Water Source System-wide Improvements and,  550 Zone Connection to Price Reservoir. Below is a table summarizing the FY 2015-16 Capital Improvement Program (CIP). The table breaks down the CIP by system. The second column provides the budget for that system. The third column includes the system infrastructure budget. The system infrastructure budget accounts for staff time related to private development projects. The fourth column represents other CIP related expenses including fund level charges resulting from the city’s federally approved indirect cost model. The last column shows the total FY 2016 Adopted Budget for the Capital Improvement Program which is $38,943,180. System Capital Improvement Budget System Infrastructure Other CIP Related Expenses Total General Capital Facilities 1,306,100 - 150,000 1,456,100 Parks 3,131,242 20,319 6,800 3,158,361 Streets 2,701,404 202,044 6,800 2,910,248 Water 29,119,524 49,158 - 29,168,682 Sanitary Sewer 938,582 46,111 - 984,693 Stormwater 1,218,985 46,111 - 1,265,096 Total $ 38,415,837 $ 363,743 $ 163,600 $38,943,180 The following pages provide a discussion of the CIP on annual operating costs followed by detailed information on all projects by system. This included a discussion of the CIP prioritization process, followed by a complete list of all the projects considered in the FY 2016-20 capital improvement plan. This list includes projects in prioritized order by system, funding status, and summary financial information. This list is re-prioritized annually along with new projects submitted by staff as well as citizen committee members. CAPITAL IMPROVEMENT PLAN - PAGE 261 IMPACT OF CAPITAL IMPROVEMENT PLAN ON OPERATING COSTS Capital projects can impact the future operating and maintenance costs of the city. In some instances, such as the construction of a new facility, operating costs will increase. In other instances, such as re- placement of old and defective water meters, operating costs may decrease. As the city makes deci- sions about which capital projects to implement, it must also evaluate the impact these projects will have on future operating costs and determine if the city will be able to afford those costs in future years. By approving the CIP projects, the city is making a commitment to adequately fund those future operating costs. The following discussion summarizes the anticipated major operating cost within each capital improve- ment system: General Facilities Capital Projects System Program The General Facilities Capital Projects System Program’s FY 2015 -16 CIP includes required repairs of city facilities. These projects will have very minimal impact on future operating costs as it will not re- quire additional staffing or materials. Parks System Program The FY 2015-16 Parks System CIP includes projects that will have a direct impact on the city’s operat- ing costs. The very nature of a park system requires ongoing maintenance costs both for new additions to a system as well as maturing parks or trails. Significant projects listed include land acquisitions and development resulting from the $17 million dollar parks bond that was approved by voters in Novem- ber 2010. A total of $1.6 million dollars has been programmed for both park land acquisition and de- velopment as recommended by the city’s Parks & Recreation Advisory Board (PRAB). Of the $1.6 mil- lion dollars, a total of $770,000 has been set aside for acquisition and development for potential sites located within the downtown area. As a result of the bond, over 452 acres of land has been preserved and is expected to require maintenance in the coming years. The City of Tigard will conduct a study within the next fiscal year to determine an appropriate park utility rate to address the cost of mainte- nance of parks and greenways within city boundaries. PAGE 262 - CITY OF TIGARD IMPACT OF CAPITAL IMPROVEMENT PLAN ON OPERATING COSTS Sanitary Sewer Program Many of the projects in the Sanitary Sewer Program, such as the Major Maintenance and line replace- ment programs such as East Tigard Sewer, address existing and potential maintenance problems and thereby serve to reduce and prevent future operating cost impacts. Although additional sewer lines increase operating costs somewhat, these costs are offset by the additional revenues received by new sewer customers. No new positions related to the Sanitary Sewer program are anticipated in the com- ing years. Street System Program The operating cost impact of the Streets Program is minimal and no new positions are forecast in fu- ture years. The Pavement Management Program (PMP) provides corrective and preventative mainte- nance on city streets including right-of-way maintenance. The program restores the wearing course of the streets and thereby improves the pavement’s integrity, improves ride ability, and enhances traffic safety. By performing these upgrades and improvements to the city’s streets on a regular schedule, the city is able to reduce future operating costs. The FY 2015-16 CIP budget does contain two major street improvements that are partially funded through grants. These include Walnut Street (116th Avenue to Tiedeman Avenue and 135th Avenue), and Pacific Highway/McDonald Street/Gaarde Street Intersection projects. streets. CAPITAL IMPROVEMENT PLAN - PAGE 263 IMPACT OF CAPITAL IMPROVEMENT PLAN ON OPERATING COSTS Storm Water Program The projects within the Storm Water Program are designed to address erosion and storm drainage problems and to return wetland areas to a more natural, native state. Typically, these projects have a tendency to show a positive impact on future operating costs with improved standards addressing storm drainage issues. However, in this budget, no new positions are forecasted in the coming years related to this program. Water System Program A variety of projects are planned for the Water System program in FY 2015-16. A number of these projects, including the Water Main Line Oversizing projects consist of the maintenance or replacement of existing infrastructure. By maintaining the existing system, the city avoids higher future costs than if the system were allowed to deteriorate. While difficult to calculate, it is safe to say that these projects create savings in future operating costs. The FY 2015-16 CIP shows the city’s continued commitment to infrastructure needs resulting from the annexation of River Terrace. These projects include the de- sign of the Cach Reservoir and Pump Station as well as the 550 Zone Connection to Price Reservoir in the out years of the program. The FY 2015-16 CIP also sees the continuation of the Lake Oswego Partnership. This project will provide Tigard with a long term water supply with delivery scheduled for 2016. PAGE 264 - CITY OF TIGARD IMPACT OF CAPITAL IMPROVEMENT PLAN ON OPERATING COSTS The project will include a raw water intake facility on the Clackamas River, increased piping size, in- creased water treatment plant capacity, and other capacity increases. Beginning in FY 2017, the full impact of this project on future operating cost for the City of Tigard is expected to be $2 million annu- ally. CAPITAL IMPROVEMENT PLAN - PAGE 265 PRIORITIZATION AND DEVELOPMENT OF THE CIP Development of the Capital Improvement Plan (CIP) started almost as soon as the prior CIP was adopted. The list of potential projects to be considered started with funded and unfunded projects in the prior CIP. In addition, staff reviewed master plans, area plans, and the strategic plan to complete the capital needs assessment for the city. Since many of the projects in the prior CIP are underway, those projects are assumed to continue to move forward and do not need to be prioritized. All of the remaining projects make up the list for prioritization. The prioritization process is intended to state what is most important to Tigard regard- less of cost. The process requires staff to present a prioritized list to council along with citizen boards and committees for comment during a two week period. For the FY 2016 six-year CIP, the city’s prioritization process was revised with input from Budget Committee and City Council. Through this process, it was determined that council would receive the final list of all projects recommended for prioritization prior to citizen boards and committees. This would allow council members to review the list and make any revisions they deem necessary. Typically, council and citizen boards would focus their efforts solely on ranking transportation and parks pro- jects. However, separate criterion was developed for each system in an effort to incorporate various aspects of the city’s strategic plan. As a result, the list of identified transportation needs outweighed available resources. Therefore, the city will focus on completing those transportation projects that are in the current CIP with the intent of revising the prioritization process for the Street System during the next fiscal year. Other projects such as water, sanitary sewer, and stormwater are development driven and are prioritized based on health and life safety criteria which is conducted by city staff. The citizen committees are presented with a prioritized list capital projects recommended by staff and are allowed to comment on the suggested list. The criterion used by city staff to prioritize projects in- cludes such aspects as public health and safety, environmental impact, system reliability, and imple- mentation of a master plan. Input for project prioritization is then provided by the Tigard Transporta- tion Advisory Committee (TTAC), the City Center Advisory Commission (CCAC), and the Parks and Recreation Advisory Board (PRAB). TTAC is responsible for commenting on all transportation pro- jects. PRAB reviews all parks projects, and CCAC provides input on those parks and transportation projects related to the downtown. Lastly, the final prioritized project list is reviewed and vetted by the Budget Committee. Prioritization is important as an expression of Tigard’s needs. It differs from budgeting in that it is blind of available resources. It is common for high priority projects to go unfunded due to their cost and available resources. The priority of unfunded projects remains important for the city when dis- cussing these projects with our regional partners. This has allowed Tigard to partner with agencies such as Washington County, Oregon Department of Transportation, and Metro. When combining the available resources of Tigard and our partners, the city is able to address high priority infrastructure needs that could not be funded on its own. PAGE 266 - CITY OF TIGARD PRIORITIZATION AND DEVELOPMENT OF THE CIP The timeline for CIP development and prioritization is as follows:  July - Staff conducts a capital needs assessment across all systems from master plans, area plans, and the strategic plan.  August – Staff prioritizes new projects.  Mid September – Recommended project list reviewed by City Council.  September 23 until October 6—Project list review/suggestion period by citizen boards and committees.  Late October – City Council review of CIP list with citizen comments.  November thru January—CIP projects costs are determined.  Mid January—CIP is submitted to City Manager as part of the proposed budget.  Mid April—Proposed CIP is considered by the Budget Committee in public meetings.  First Council Meeting in June—City Council adoption of Capital Improvement Plan. How To Read The Prioritization Table: All projects are organized by system: Streets, Water, Parks, Stormwater, and Sanitary Sewer. The table lists each project including priority, name, funding status, funding source, and project total. Projects with a priority of “Current” are projects that are in progress during the prior fiscal year (FY 2015) indicating it is already a high priority. Projects with a priority of “Staff” are those that were submitted by staff after the prioritization process was completed but need- ed to be considered for the CIP. Projects that have a numerical priority “1, 2, 3…” were recommended by staff and then reviewed by citizen boards and committees and are lightly shaded. These projects are fully funded in the six-year CIP. Projects that have dark shading are considered unfunded. Those pro- jects that have a “Current” status and have dark shading are those projects that were funded in the CIP during the previous year. However, they became unfunded in FY 2016 due to a lack of available re- sources including staff capacity as well as funding. CAPITAL IMPROVEMENT PLAN - PAGE 267 PRIORITIZATION AND DEVELOPMENT OF THE CIP PAGE 268 - CITY OF TIGARD PRIORITIZATION AND DEVELOPMENT OF THE CIP CAPITAL IMPROVEMENT PLAN - PAGE 269 CAPITAL IMPROVEMENT PLAN - STREETS PAGE 270 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STREETS CAPITAL IMPROVEMENT PLAN - PAGE 271 CAPITAL IMPROVEMENT PLAN - STREETS PAGE 272 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STREETS CAPITAL IMPROVEMENT PLAN - PAGE 273 CAPITAL IMPROVEMENT PLAN - STREETS PAGE 274 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STREETS CAPITAL IMPROVEMENT PLAN - PAGE 275 CAPITAL IMPROVEMENT PLAN - STREETS PAGE 276 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STREETS CAPITAL IMPROVEMENT PLAN - PAGE 277 CAPITAL IMPROVEMENT PLAN - STREETS PAGE 278 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - PARKS CAPITAL IMPROVEMENT PLAN - PAGE 279 CAPITAL IMPROVEMENT PLAN - PARKS Cook Park , Tigard, Oregon Photo by Doug Vorwaller PAGE 280 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - PARKS CAPITAL IMPROVEMENT PLAN - PAGE 281 CAPITAL IMPROVEMENT PLAN - PARKS PAGE 282 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - PARKS CAPITAL IMPROVEMENT PLAN - PAGE 283 CAPITAL IMPROVEMENT PLAN - PARKS PAGE 284 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - PARKS CAPITAL IMPROVEMENT PLAN - PAGE 285 CAPITAL IMPROVEMENT PLAN - PARKS PAGE 286 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - PARKS CAPITAL IMPROVEMENT PLAN - PAGE 287 CAPITAL IMPROVEMENT PLAN - PARKS PAGE 288 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - PARKS CAPITAL IMPROVEMENT PLAN - PAGE 289 CAPITAL IMPROVEMENT PLAN - PARKS PAGE 290 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - WATER CAPITAL IMPROVEMENT PLAN - PAGE 291 CAPITAL IMPROVEMENT PLAN - WATER PAGE 292 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - WATER CAPITAL IMPROVEMENT PLAN - PAGE 293 CAPITAL IMPROVEMENT PLAN - WATER PAGE 294 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - WATER CAPITAL IMPROVEMENT PLAN - PAGE 295 CAPITAL IMPROVEMENT PLAN - WATER PAGE 296 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - WATER CAPITAL IMPROVEMENT PLAN - PAGE 297 CAPITAL IMPROVEMENT PLAN - WATER PAGE 298 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - WATER CAPITAL IMPROVEMENT PLAN - PAGE 299 CAPITAL IMPROVEMENT PLAN - WATER PAGE 300 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - WATER CAPITAL IMPROVEMENT PLAN - PAGE 301 CAPITAL IMPROVEMENT PLAN - WATER PAGE 302 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - WATER CAPITAL IMPROVEMENT PLAN - PAGE 303 CAPITAL IMPROVEMENT PLAN - WATER PAGE 304 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - WATER CAPITAL IMPROVEMENT PLAN - PAGE 305 CAPITAL IMPROVEMENT PLAN - SANITARY SEWER PAGE 306 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - SANITARY SEWER CAPITAL IMPROVEMENT PLAN - PAGE 307 CAPITAL IMPROVEMENT PLAN - SANITARY SEWER PAGE 308 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - SANITARY SEWER CAPITAL IMPROVEMENT PLAN - PAGE 309 CAPITAL IMPROVEMENT PLAN - SANITARY SEWER PAGE 310 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STORMWATER CAPITAL IMPROVEMENT PLAN - PAGE 311 CAPITAL IMPROVEMENT PLAN - STORMWATER PAGE 312 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STORMWATER CAPITAL IMPROVEMENT PLAN - PAGE 313 CAPITAL IMPROVEMENT PLAN - STORMWATER PAGE 314 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STORMWATER CAPITAL IMPROVEMENT PLAN - PAGE 315 CAPITAL IMPROVEMENT PLAN - STORMWATER PAGE 316 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STORMWATER CAPITAL IMPROVEMENT PLAN - PAGE 317 CAPITAL IMPROVEMENT PLAN - STORMWATER PAGE 318 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STORMWATER CAPITAL IMPROVEMENT PLAN - PAGE 319 CAPITAL IMPROVEMENT PLAN - STORMWATER PAGE 320 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STORMWATER CAPITAL IMPROVEMENT PLAN - PAGE 321 CAPITAL IMPROVEMENT PLAN - STORMWATER PAGE 322 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - FACILITIES CAPITAL IMPROVEMENT PLAN - PAGE 323 CAPITAL IMPROVEMENT PLAN - FACILITIES PAGE 324 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - FACILITIES CAPITAL IMPROVEMENT PLAN - PAGE 325 PROJECTS BY FUND Project Name General Sanitary Sewer Stormwater Water Water CIP Water SDC Streets System Pavement Management Program $ - $ - $ - $ - $ - $ - Walnut St. Improvements (116th Ave. to Tiedeman Ave. & 135th Ave.) $ - $ 1,750 $ 45,750 $ 36,750 $ - $ - Pedestrian & Cyclist Connections $ - $ - $ - $ - $ - $ - Pacific Hwy/Gaarde St./McDonald St. Intersection Improvement $ - $ - $ - $ - $ - $ - Tiedeman Avenue Sidewalk (Tigard Street to Greenburg Road) $ - $ - $ 397,800 $ - $ - $ - Upper Boones Ferry Road / Durham Road Adaptive Signal Coordination $ - $ - $ - $ - $ - $ - Commercial Street Sidewalk and Storm Detention Facility (Main to Lincoln) $ - $ - $ 414,024 $ - $ - $ - Main Street Green Street Retrofit (Phase 2) $ - $ - $ - $ - $ - $ - Total Streets Funding $ - $ 1,750 $ 857,574 $ 36,750 $ - $ - Parks System Fanno Creek Remeander (City/CWS) $ - $ - $ - $ - $ - $ - Dirksen Nature Park $ - $ 20,000 $ 145,000 $ 12,000 $ - $ - Tree Canopy Replacement Program $ - $ - $ - $ - $ - $ - Park Land Acquisition $ - $ - $ - $ - $ - $ - Downtown Land Acquisition $ - $ - $ - $ - $ - $ - Tigard Street Trail and Public Space (Main St. to Tiedeman Ave. / Tigard St.) $ 20,000 $ - $ - $ - $ - $ - City of Tigard / Tigard-Tualatin School District Park Development $ - $ - $ - $ - $ - $ - Damaged Tree Replacement Program $ - $ - $ - $ - $ - $ - Fanno Creek Trail Connection (RFFA Grant) $ - $ - $ 302,560 $ - $ - $ - Total Parks Funding $ 20,000 $ 20,000 $ 447,560 $ 12,000 $ - $ - General Capital Facilities System City Hall/Permit Center/Police Exterior Walls $ 1,661,300 $ - $ - $ - $ - $ - Citywide Facilities Plan $ - $ - $ - $ - $ - $ - Total General Capital Facilities Funding $ 1,661,300 $ - $ - $ - $ - $ - Water System Water Meter Replacement Program $ - $ - $ - $ 1,200,000 $ - $ - Water Main Line Oversizing Program $ - $ - $ - $ 900,000 $ - $ - Aquifer Storage & Recovery Well # 3 $ - $ - $ - $ 4,090,000 $ - $ - Lake Oswego/Tigard Water Partnership $ - $ - $ - $ 20,892,000 $ 139,953,092 $ - Waterline Replacement Program $ - $ - $ - $ 842,172 $ - $ - Fire Hydrant Replacement Program $ - $ - $ - $ 600,000 $ - $ - Pipeline Connecting 550 Zone to 530 Zone (Bull Mountain Road) $ - $ - $ - $ 1,545,000 $ - $ 715,000 Fire Flow Improvement Program $ - $ - $ - $ 540,000 $ - $ - Well Abandonment (Tigard High School) $ - $ - $ - $ 165,000 $ - $ - New Water Source Systemwide Improvements Program $ - $ - $ - $ - $ 857,280 $ - Cach Reservoir and Pump Station Design $ - $ - $ - $ 10,619,100 $ - $ 2,490,900 Aquifer Storage & Recovery Well #2 Electrical Rehabilitation $ - $ - $ - $ 119,197 $ 268,000 $ - 550 Zone Connection to Price Reservoir $ - $ - $ - $ 1,406,652 $ - $ 651,900 Red Rock Creek Waterline Relocation $ - $ - $ - $ 1,715,060 $ - $ - Total Water Funding $ - $ - $ - $ 44,634,181 $ 141,078,372 $ 3,857,800 Stormwater System Fanno Creek Slope Stabilization (Arthur Court) $ - $ 701,515 $ 548,963 $ - $ - $ - Storm Drainage Major Maintenance Program $ - $ - $ 350,000 $ - $ - $ - Slope Stabilization (Derry Dell/118th Court) $ - $ 618,050 $ 623,575 $ - $ - $ - Storm Facility Reconstruction (Greenfield Drive near Pine View) $ - $ - $ 357,759 $ - $ - $ - Main Street Storm Rehabilitation (Fanno Creek) $ - $ - $ 881,250 $ - $ - $ - Burlcrest Drive Stormwater Improvements (Summer Crest to 121st) $ - $ - $ 897,250 $ - $ - $ - Canterbury Lane Storm Line Upgrade (106th to Pacific Highway) $ - $ - $ 465,435 $ - $ - $ - Ridgefield Lane Water Quality Facility Repair/Stabilization $ - $ - $ 104,006 $ - $ - $ - Outfall Retrofit Program $ - $ - $ 971,430 $ - $ - $ - Stormwater Master Plan $ - $ - $ 322,355 $ - $ - $ - Total Stormwater Funding $ - $ 1,319,565 $ 5,522,023 $ - $ - $ - Sanitary Sewer System Sanitary Sewer Major Maintenance Program $ - $ 540,000 $ - $ - $ - $ - East Tigard Sewer Replacement $ - $ 1,140,423 $ - $ - $ - $ - Barrows Road / Scholls Ferry Road Sewer Line Extension (Phase 3) $ - $ 103,000 $ - $ - $ - $ - Walnut Street Sanitary Sewer $ - $ 436,818 $ - $ - $ - $ - Total Sanitary Sewer Funding $ - $ 2,220,241 $ - $ - $ - $ - PAGE 326 - CITY OF TIGARD Project Name City Gas Tax Gas Tax Parks Bond Parks SDC Parks CIP Street Maintenance Traffic Impact Fee Streets System Pavement Management Program $ - $ - $ - $ - $ - $ 14,765,000 $ - Walnut St. Improvements (116th Ave. to Tiedeman Ave. & 135th Ave.) $ - $ - $ - $ - $ - $ - $ - Pedestrian & Cyclist Connections $ - $ 552,000 $ - $ - $ - $ - $ - Pacific Hwy/Gaarde St./McDonald St. Intersection Improvement $ 1,100,000 $ - $ - $ - $ - $ - $ 76,650 Tiedeman Avenue Sidewalk (Tigard Street to Greenburg Road) $ - $ - $ - $ - $ - $ - $ - Upper Boones Ferry Road / Durham Road Adaptive Signal Coordination $ - $ - $ - $ - $ - $ - $ - Commercial Street Sidewalk and Storm Detention Facility (Main to Lincoln) $ - $ - $ - $ - $ - $ - $ - Main Street Green Street Retrofit (Phase 2) $ - $ - $ - $ - $ - $ - $ - Total Streets Funding $ 1,100,000 $ 552,000 $ - $ - $ - $ 14,765,000 $ 76,650 Parks System Fanno Creek Remeander (City/CWS) $ - $ - $ 336,628 $ 846,152 $ - $ - $ - Dirksen Nature Park $ - $ - $ 4,040,867 $ 534,726 $ 1,461,650 $ - $ - Tree Canopy Replacement Program $ - $ - $ - $ - $ - $ - $ - Park Land Acquisition $ - $ - $ 554,653 $ 335,000 $ - $ - $ - Downtown Land Acquisition $ - $ - $ 1,300,499 $ - $ - $ - $ - Tigard Street Trail and Public Space (Main St. to Tiedeman Ave. / Tigard St.) $ - $ - $ 55,233 $ 10,558 $ - $ - $ - City of Tigard / Tigard-Tualatin School District Park Development $ - $ - $ 46,000 $ 89,000 $ - $ - $ - Damaged Tree Replacement Program $ - $ - $ - $ - $ - $ - $ - Fanno Creek Trail Connection (RFFA Grant) $ - $ - $ - $ 1,417,440 $ - $ - $ - Total Parks Funding $ - $ - $ 6,333,880 $ 3,232,876 $ 1,461,650 $ - $ - General Capital Facilities System City Hall/Permit Center/Police Exterior Walls $ - $ - $ - $ - $ - $ - $ - Citywide Facilities Plan $ - $ - $ - $ - $ - $ - $ - Total General Capital Facilities Funding $ - $ - $ - $ - $ - $ - $ - Water System Water Meter Replacement Program $ - $ - $ - $ - $ - $ - $ - Water Main Line Oversizing Program $ - $ - $ - $ - $ - $ - $ - Aquifer Storage & Recovery Well # 3 $ - $ - $ - $ - $ - $ - $ - Lake Oswego/Tigard Water Partnership $ - $ - $ - $ - $ - $ - $ - Waterline Replacement Program $ - $ - $ - $ - $ - $ - $ - Fire Hydrant Replacement Program $ - $ - $ - $ - $ - $ - $ - Pipeline Connecting 550 Zone to 530 Zone (Bull Mountain Road) $ - $ - $ - $ - $ - $ - $ - Fire Flow Improvement Program $ - $ - $ - $ - $ - $ - $ - Well Abandonment (Tigard High School) $ - $ - $ - $ - $ - $ - $ - New Water Source Systemwide Improvements Program $ - $ - $ - $ - $ - $ - $ - Cach Reservoir and Pump Station Design $ - $ - $ - $ - $ - $ - $ - Aquifer Storage & Recovery Well #2 Electrical Rehabilitation $ - $ - $ - $ - $ - $ - $ - 550 Zone Connection to Price Reservoir $ - $ - $ - $ - $ - $ - $ - Red Rock Creek Waterline Relocation $ - $ - $ - $ - $ - $ - $ - Total Water Funding $ - $ - $ - $ - $ - $ - Stormwater System Fanno Creek Slope Stabilization (Arthur Court) $ - $ - $ - $ - $ - $ - Storm Drainage Major Maintenance Program $ - $ - $ - $ - $ - $ - Slope Stabilization (Derry Dell/118th Court) $ - $ - $ - $ - $ - $ - Storm Facility Reconstruction (Greenfield Drive near Pine View) $ - $ - $ - $ - $ - $ - Main Street Storm Rehabilitation (Fanno Creek) $ - $ - $ - $ - $ - $ - Burlcrest Drive Stormwater Improvements (Summer Crest to 121st) $ - $ - $ - $ - $ - $ - Canterbury Lane Storm Line Upgrade (106th to Pacific Highway) $ - $ - $ - $ - $ - $ - Ridgefield Lane Water Quality Facility Repair/Stabilization $ - $ - $ - $ - $ - $ - Outfall Retrofit Program $ - $ - $ - $ - $ - $ - Stormwater Master Plan $ - $ - $ - $ - $ - $ - Total Stormwater Funding $ - $ - $ - $ - $ - $ - Sanitary Sewer System Sanitary Sewer Major Maintenance Program $ - $ - $ - $ - $ - $ - East Tigard Sewer Replacement $ - $ - $ - $ - $ - $ - Barrows Road / Scholls Ferry Road Sewer Line Extension (Phase 3) $ - $ - $ - $ - $ - $ - Walnut Street Sanitary Sewer $ - $ - $ - $ - $ - $ - Total Sanitary Sewer Funding $ - $ - $ - $ - $ - $ - PROJECTS BY FUND CAPITAL IMPROVEMENT PLAN - PAGE 327 Project Name Transportation Development Tax Transportatio n CIP Urban Forestry Underground Utility Facilities Capital Projects Grants Total Project Cost Streets System Pavement Management Program $ - $ - $ - $ - $ - $ - $ 14,765,000 Walnut St. Improvements (116th Ave. to Tiedeman Ave. & 135th Ave.) $ 40,250 $ 1,750 $ - $ 530,251 $ - $ - $ 656,501 Pedestrian & Cyclist Connections $ - $ - $ - $ - $ - $ - $ 552,000 Pacific Hwy/Gaarde St./McDonald St. Intersection Improvement $ 1,999,835 $ - $ - $ - $ - $ - $ 3,176,485 Tiedeman Avenue Sidewalk (Tigard Street to Greenburg Road) $ - $ 596,700 $ - $ - $ - $ - $ 994,500 Upper Boones Ferry Road / Durham Road Adaptive Signal Coordination $ 191,404 $ - $ - $ - $ - $ - $ 191,404 Commercial Street Sidewalk and Storm Detention Facility (Main to Lincoln) $ - $ 50,000 $ - $ - $ - $ 1,305,000 $ 1,769,024 Main Street Green Street Retrofit (Phase 2) $ - $ 1,726,492 $ - $ - $ - $ 1,234,424 $ 2,960,916 Total Streets Funding $ 2,231,489 $ 2,374,942 $ - $ 530,251 $ - $ 2,539,424 $ 25,065,830 Parks System Fanno Creek Remeander (City/CWS) $ - $ - $ - $ - $ - $ - 1,182,780$ Dirksen Nature Park $ - $ 1,174,500 $ 300,000 $ - $ - $ 406,000 8,094,743$ Tree Canopy Replacement Program $ - $ - $ 600,000 $ - $ - $ - 600,000$ Park Land Acquisition $ - $ - $ - $ - $ - $ - $ 889,653 Downtown Land Acquisition $ - $ - $ - $ - $ - $ - 1,300,499$ Tigard Street Trail and Public Space (Main St. to Tiedeman Ave. / Tigard St.) $ - $ - $ - $ - $ - $ - 85,791$ City of Tigard / Tigard-Tualatin School District Park Development $ - $ - $ - $ - $ - $ - 135,000$ Damaged Tree Replacement Program $ - $ - $ 300,000 $ - $ - $ - 300,000$ Fanno Creek Trail Connection (RFFA Grant) $ - $ - $ - $ - $ - $ 3,080,000 4,800,000$ Total Parks Funding $ - $ 1,174,500 $ 1,200,000 $ - $ - $ 3,486,000 $ 17,388,466 General Capital Facilities System City Hall/Permit Center/Police Exterior Walls $ - $ - $ - $ - $ - $ - 1,661,300$ Citywide Facilities Plan $ - $ - $ - $ - $ 300,000 $ - 300,000$ Total General Capital Facilities Funding $ - $ - $ - $ - $ 300,000 $ - $ 1,961,300 Water System Water Meter Replacement Program $ - $ - $ - $ - $ - $ - $ 1,200,000 Water Main Line Oversizing Program $ - $ - $ - $ - $ - $ - 900,000$ Aquifer Storage & Recovery Well # 3 $ - $ - $ - $ - $ - $ - 4,090,000$ Lake Oswego/Tigard Water Partnership $ - $ - $ - $ - $ - $ - 160,845,092$ Waterline Replacement Program $ - $ - $ - $ - $ - $ - $ 842,172 Fire Hydrant Replacement Program $ - $ - $ - $ - $ - $ - $ 600,000 Pipeline Connecting 550 Zone to 530 Zone (Bull Mountain Road) $ - $ - $ - $ - $ - $ - 2,260,000$ Fire Flow Improvement Program $ - $ - $ - $ - $ - $ - 540,000$ Well Abandonment (Tigard High School) $ - $ - $ - $ - $ - $ - $ 165,000 New Water Source Systemwide Improvements Program $ - $ - $ - $ - $ - $ - $ 857,280 Cach Reservoir and Pump Station Design $ - $ - $ - $ - $ - $ - $ 13,110,000 Aquifer Storage & Recovery Well #2 Electrical Rehabilitation $ - $ - $ - $ - $ - $ - $ 387,197 550 Zone Connection to Price Reservoir $ - $ - $ - $ - $ - $ - $ 2,058,552 Red Rock Creek Waterline Relocation $ - $ - $ - $ - $ - $ - $ 1,715,060 Total Water Funding $ - $ - $ - $ - $ - $ - $ 189,570,353 Stormwater System Fanno Creek Slope Stabilization (Arthur Court) $ - $ - $ - $ - $ - $ - $ 1,250,478 Storm Drainage Major Maintenance Program $ - $ - $ - $ - $ - $ - $ 350,000 Slope Stabilization (Derry Dell/118th Court) $ - $ - $ - $ - $ - $ - $ 1,241,625 Storm Facility Reconstruction (Greenfield Drive near Pine View) $ - $ - $ - $ - $ - $ - $ 357,759 Main Street Storm Rehabilitation (Fanno Creek) $ - $ - $ - $ - $ - $ - $ 881,250 Burlcrest Drive Stormwater Improvements (Summer Crest to 121st) $ - $ - $ - $ - $ - $ - $ 897,250 Canterbury Lane Storm Line Upgrade (106th to Pacific Highway) $ - $ - $ - $ - $ - $ - $ 465,435 Ridgefield Lane Water Quality Facility Repair/Stabilization $ - $ - $ - $ - $ - $ - $ 104,006 Outfall Retrofit Program $ - $ - $ - $ - $ - $ - $ 971,430 Stormwater Master Plan $ - $ - $ - $ - $ - $ - $ 322,355 Total Stormwater Funding $ - $ - $ - $ - $ - $ - $ 6,841,588 Sanitary Sewer System Sanitary Sewer Major Maintenance Program $ - $ - $ - $ - $ - $ - 540,000$ East Tigard Sewer Replacement $ - $ - $ - $ - $ - $ 221,770 $ 1,362,193 Barrows Road / Scholls Ferry Road Sewer Line Extension (Phase 3) $ - $ - $ - $ - $ - $ - 103,000$ Walnut Street Sanitary Sewer $ - $ - $ - $ - $ - $ - 436,818$ Total Sanitary Sewer Funding $ - $ - $ - $ - $ - $ 221,770 $ 2,442,011 PROJECTS BY FUND PAGE 328 - CITY OF TIGARD FY 2016-2021 UNFUNDED PROJECTS CAPITAL IMPROVEMENT PLAN - PAGE 329 FY 2016-2021 UNFUNDED PROJECTS PAGE 330 - CITY OF TIGARD FY 2016-2021 UNFUNDED PROJECTS City of Tigard | ADOPTED BUDGET | FY 2015–2016 DEBT SERVICE- PAGE 331 DEBT SERVICE The city has four types of debt currently outstanding.  Two general obligation bonds secured by the city’s authority to levy property taxes;  A Build America Bond (BAB) for transportation projects that will be repaid with gas tax, city gas tax, transportation impact fees, and transportation development tax;  Assessment bonds secured by installment payment contracts with property owners; and  Water revenue debt used to pay for the city’s water agreement with the City of Lake Oswego. The water revenue debt is in three pieces: a $97.7 million water revenue bond, a $30.8 million water revenue bond and $2.4 million ARRA loan. Also, the city has the au- thority to issue short term bond anticipation notes secured by the city’s full faith and credit and the ability to assess property owners when the related project is complete. The city’s current outstanding debt payments (principal plus interest) are as follows: Fiscal Year General Obligation Build America Bonds Assess- ments Water Revenue Debt Total FY 15-16 $ 2,194,500 $ 904,433 $ 103,121 $ 6,259,271 $ 9,461,324 FY 16-17 2,193,100 892,460 103,107 8,393,283 11,581,950 FY 17-18 2,195,425 884,618 103,088 8,390,833 11,573,963 FY 18-19 2,197,625 870,688 103,133 8,390,133 11,561,578 FY 19-20 2,196,825 860,888 80,663 8,390,933 11,529,308 FY 20-46 16,933,900 0 0 215,883,847 232,817,747 Total $ 27,911,375 $ 4,413,085 $ 493,110 $ 255,708,301 288,525,871 The portion of the Build America Bonds that are repaid with Gas Tax revenues will compete with op- erational needs for road maintenance. Otherwise, existing debt levels have no direct impact on current or future city operations. The most recent general obligation bond rating occurred in 2010 and the rating given by Moody’s was Aa2 and AA by Standard and Poor’s. This is a two-step increase over the city’s prior bond rating. In 2012, the city received its first revenue bond ratings for its water revenue bond. The city received ratings of A1 by Moody’s and AA- by Standard and Poor’s.For the 2015 Water Revenue Bond, the city’s AA-rating from Standard & Poor’s was affirmed and Moody’s upgraded Tigard to A1 with a positive outlook. Legal Debt Limit Oregon statutes limit local government debt to 3% of true cash value. The debt limit calculations ex- cludes debt related to assessments, therefore only outstanding general obligation debt is subject to the limitation. The limit for FY 2015-16 will be $205,272,951 based upon the estimated market value of $7,699,660,882. PAGE 332 - CITY OF TIGARD DEBT SERVICE SUMMARY The following tables and graphs depict future debt service requirements in total and by debt service type. These figures also present schedules detailing required debt service expenditures for FY 2015-16. FY 2015-16 Debt Service GENERAL OBLIGATION BONDS- Paid from property taxes Parks Bond $1,292,575 Library Bond $901,925 $2,194,500 BUILD AMERICA BOND Paid primarily from Gas Tax and City Gas Tax 2010 Transportation Bond $904,433 $904,433 ASSESSMENTS - BANCROFT IMPROVEMENT BONDS Paid primarily from special assessments 2002 69th Avenue LID 103,121 Additional Bond Calls 0 $103,121 WATER REVENUE DEBT Paid primarily from Water Rates & SDCs 2012 Water Revenue Bond $4,719,850 Paid primarily from Water Rates & SDCs 2015 Water Revenue Bond $1,378,238 ARRA Loan $161,183 $6,259,271 $9,461,324TOTAL 2015-16 DEBT SERVICE General Obligation 23% Bancroft Improvement 1% Build America Bond 10% Water Revenue Debt 66% Debt Service by Type $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 $180.00 $200.00 FY 2011-12 Actual FY 2012-13 Actual FY 2013-14 Actual FY 2014-15 Revised FY 2015-16 Adopted Per Capita Debt Service DEBT SERVICE- PAGE 333 OUTSTANDING DEBT ISSUES Original Interest Original Principal Final Source of Issue Amount Rate Issue Date Outstanding Maturity Payment GENERAL OBLIGATION BONDS Library Bond $8,655,000 2.92%02/03/11 $6,210,000 12/01/22 Property Taxes Parks Bond $17,000,000 4.15%02/03/11 $14,670,000 06/01/31 Property Taxes TOTAL GENERAL OBLIGATION BONDS OUTSTANDING $20,880,000 SPECIAL ASSESSMENT BONDS 69th Avenue Local Improvement District Special Series 2002 $1,307,969 7.25%06/27/02 $410,356 07/01/17 Assessments TOTAL SPECIAL ASSESSMENT BONDS $410,356 BUILD AMERICA BOND 2010 Transportation Bonds $7,250,000 4.35%06/21/10 $3,895,000 06/01/20 Gas Tax, City Gas Tax, TIF, & TDT TOTAL BUILD AMERICA BONDS $3,895,000 WATER REVENUE DEBT 2012 Water Revenue Bond $97,720,000 4.04%05/01/12 $97,720,000 08/01/42 Water User Fees & Water SDC's 2015 Water Revenue Bond $30,810,000 4.09%03/03/15 $30,810,000 08/01/45 Water User Fees & Water SDC's ARRA Loan $2,398,000 3.00%03/06/12 $2,105,957 12/01/31 Water User Fees & Water SDC's TOTAL WATER REVENUE DEBT OUTSTANDING $130,635,957 GRAND TOTAL - CITY OF TIGARD DEBT OUTSTANDING $155,821,313 Outstanding Debt Issues PAGE 334 - CITY OF TIGARD DEBT SERVICE SCHEDULE GENERAL OBLIGATION BOND—LIBRARY The Tigard Public Library general obligation bond was authorized by voters on May 21, 2002. The initial bond was purchased in whole by the State of Oregon through the Oregon Economic and Com- munity Development Department. In 2011, the initial bond was refunded at the same time that Tigard sold the Parks bond. The new issue saved Tigard property tax payers $863,289 over the remaining life of the bond. Bond proceeds were used to purchase a 14.7 acre parcel and construct a two-story 47,500 square foot library. The new library opened in August 2004. Amount Issued:$8,655,000 Issue Date:2/3/2011 Original Issue True Interest Rate (TIC):2.923% Principal Outstanding as of July 1, 2015:$6,210,000 Fiscal Year Payment Due Interest Rate Principal Due Interest Due Total Debt Service FY 15-16 12/1/2015 3.00%685,000 113,600 798,600 6/1/2016 103,325 103,325 FY 16-17 12/1/2016 3.00%705,000 103,325 808,325 6/1/2017 92,750 92,750 FY 17-18 12/1/2017 3.00%730,000 92,750 822,750 6/1/2018 81,800 81,800 FY 18-19 12/1/2018 4.00%755,000 81,800 836,800 6/1/2019 66,700 66,700 FY 19-20 12/1/2019 4.00%785,000 66,700 851,700 6/1/2020 51,000 51,000 FY 20-21 12/1/2020 4.00%815,000 51,000 866,000 6/1/2021 34,700 34,700 FY 21-22 12/1/2021 4.00%850,000 34,700 884,700 6/1/2022 17,700 17,700 FY 22-23 12/1/2022 4.00%885,000 17,700 902,700 Total $6,210,000 $1,009,550 $7,219,550 DEBT SERVICE- PAGE 335 DEBT SERVICE SCHEDULE GENERAL OBLIGATION BOND—PARKS The Tigard Parks general obligation bond was authorized by voters on November 2, 2010. Bond pro- ceeds are being used to purchase and develop parks in Tigard. At least 80 percent of the proceeds will be used to purchase land and the remainder can be used to develop parks. In addition, 10 percent can be used in Downtown Tigard in the same 80/20 split. $17,000,000 2/3/2011 Original Issue True Interest Rate (TIC):4.148% Principal Outstanding as of July 1, 2015:$14,670,000 Fiscal Year Payment Due Interest Rate Principal Due Interest Due Total Debt Service FY 15-16 12/1/2015 303,788 303,788 6/1/2016 3.00%685,000 303,788 988,788 FY 16-17 12/1/2016 293,513 293,513 6/1/2017 3.00%705,000 293,513 998,513 FY 17-18 12/1/2017 282,938 282,938 6/1/2018 3.00%725,000 282,938 1,007,938 FY 18-19 12/1/2018 272,063 272,063 6/1/2019 3.00%750,000 272,063 1,022,063 FY 19-20 12/1/2019 257,063 257,063 6/1/2020 4.00%780,000 257,063 1,037,063 FY 20-21 12/1/2020 241,463 241,463 6/1/2021 4.00%810,000 241,463 1,051,463 FY 21-22 12/1/2021 225,263 225,263 6/1/2022 4.00%845,000 225,263 1,070,263 FY 22-23 12/1/2022 208,363 208,363 6/1/2023 4.00%875,000 208,363 1,083,363 FY 23-24 12/1/2023 190,863 190,863 6/1/2024 4.00%910,000 190,863 1,100,863 FY 24-25 12/1/2024 172,663 172,663 6/1/2025 4.00%950,000 172,663 1,122,663 FY 25-26 12/1/2025 152,475 152,475 6/1/2026 4.25%990,000 152,475 1,142,475 FY 26-27 12/1/2026 131,438 131,438 6/1/2027 4.25%1,030,000 131,438 1,161,438 FY 27-28 12/1/2027 108,263 108,263 6/1/2028 4.50%1,075,000 108,263 1,183,263 FY 28-29 12/1/2028 84,075 84,075 6/1/2029 4.50%1,125,000 84,075 1,209,075 FY 29-30 12/1/2029 57,356 57,356 6/1/2030 4.75%1,180,000 57,356 1,237,356 FY 30-31 12/1/2030 29,331 29,331 6/1/2031 4.75%1,235,000 29,331 1,264,331 Total $14,670,000 $6,021,825 $20,691,825 Amount Issued: Issue Date: PAGE 336 - CITY OF TIGARD GENERAL OBLIGATION BOND-SUMMARY $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 An n u a l D e b t S e r v i c e Fiscal Year Projected Annual Debt Service Principal Interest FY 2015-16 debt service on the outstanding General Obligation Bonds is as follows: General Obligation Bonds Date Interest Principal Total 2011A Issue - Parks Bond 12/01/15 $303,788 $303,788 06/01/16 $303,788 $685,000 $988,788 2011B Issue - Library Building 12/01/15 $113,600 $685,000 $798,600 06/01/16 $103,325 $103,325 Total General Obligation Bond Debt Service $824,500 $1,370,000 $2,194,500 DEBT SERVICE- PAGE 337 DEBT SERVICE SCHEDULE TIGARD TRANSPORTATION BUILD AMERICA BOND The Tigard Transportation Bond is a full faith and credit obligation authorized by Tigard City Council in Resolution #10-26 and issued on June 21, 2010. The bond has a ten year repayment with an oppor- tunity to call the bond after seven years. The bond is a Build America Bond (BAB) which is part of the American Recovery and Reinvestment Act (ARRA). A BAB is a taxable bond for the bond holder. To make the bond attractive to the bond holder, the interest rate is higher than a tax-exempt bond; however, the Federal Government initially agreed to reimburse the City of Tigard 35% of the interest paid by the City (the BAB Subsidy). Due to sequestering, the Federal Government has reduced that subsidy to about 31.95%. The result for this Transportation Bond is that Tigard pays interest at 4.35% to the Bond Holder, but after the BAB Subsidy, the net debt service is lowered and the net interest cost to Tigard is about 2.96%. The bond was issued to pay for two projects - Burnham Street Reconstruction and the Greenburg Rd. / Main Street / Pacific Highway (Hwy 99) Intersection. Of the $7.25 million in proceeds, $4.75 million (65.5%) is for the Burnham Street Reconstruction and will be repaid with Gas Tax Fund reve- nues. The remaining $2.5 million (34.5%) in bond proceeds is for the Greenburg Road / Main Street / Pacific Highway Intersection and will be repaid with City Gas Tax Fund revenues. Payments will be made proportionally from each fund. The projects are also eligible for Transportation Impact Fee Fund (TIF) and Transportation Development Tax Fund (TDT) revenues which may also be used for repayment. From a budgetary basis, Tigard will adopt the Total Debt Service payment, the BAB Subsidy will be proportionally returned to the contributing funds and the proceeds can be used within the limitations of those funds. One potential use will be to contribute to the following year's pay- ments. Amount Issued:$7,250,000 Issue Date:6/21/2010 Original Issue True Interest Rate (TIC):4.350% Principal Outstanding as of July 1, 2015:$3,895,000 Fiscal Year Payment Due Interest Rate Principal Due Interest Due Total Debt Service BAB Subsidy Net Debt Service Resulting Net Interest Rate FY 15-16 12/1/2015 4.35%84,716.25 84,716.25 27,066.84 57,649.41 2.83% 6/1/2016 4.35%735,000 84,716.25 819,716.25 27,066.84 792,649.41 2.83% FY 16-17 12/1/2016 4.35%68,730.00 68,730.00 21,959.24 46,770.77 2.83% 6/1/2017 4.35%755,000 68,730.00 823,730.00 21,959.24 801,770.77 2.83% FY 17-18 12/1/2017 4.35%52,308.75 52,308.75 16,712.65 35,596.10 2.83% 6/1/2018 4.35%780,000 52,308.75 832,308.75 16,712.65 815,596.10 2.83% FY 18-19 12/1/2018 4.35%35,343.75 35,343.75 11,292.33 24,051.42 2.83% 6/1/2019 4.35%800,000 35,343.75 835,343.75 11,292.33 824,051.42 2.83% FY 19-20 12/1/2019 4.35%17,943.75 17,943.75 5,733.03 12,210.72 2.83% 6/1/2020 4.35%825,000 17,943.75 842,943.75 5,733.03 837,210.72 2.83% Total $3,895,000 518,085.00 4,413,085.00 165,528.16 4,247,556.84 PAGE 338 - CITY OF TIGARD TIGARD TRANSPORTATION BUILD AMERICA BOND SUMMARY FY 2015-16 debt service on the outstanding 2010 Transportation Build America Bond is as follows: Net Net 2011 Transportation BAB Date Interest Principal Total Interest Total 12/1/2015 $84,716 $0 $84,716 $57,649 $57,649 6/1/2016 $84,716 $735,000 $819,716 $57,649 $792,649 Total Transportation BAB Debt Service $169,433 $735,000 $904,433 $115,299 $850,299 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 2016 2017 2018 2019 2020 An n u a l D e b t S e r v i c e Fiscal Year Projected Annual Net Debt Service Principal Net Interest DEBT SERVICE- PAGE 339 DEBT SERVICE SCHEDULE ASSESSMENT-69TH AVENUE LOCAL IMPROVEMENT DISTRICT The 69th Avenue Local Improvement District (LID) was finalized in 2002. This Bancroft Bond was issued to retire the interim financing used for construction of the LID. The source of revenue for repayment of the bonds are payments on installment contracts executed by benefited property owners. LID assessments are secured by liens on the benefited property. $1,307,969 6/27/2002 7.250% $410,356 Fiscal Year Payment Due Interest Rate Principal Due Interest Due Total Debt Service FY 15-16 7/1/2015 7.25%36,700 14,876 51,576 1/1/2016 7.25%38,000 13,545 51,545 FY 16-17 7/1/2016 7.25%39,400 12,168 51,568 1/1/2017 7.25%40,800 10,740 51,540 FY 17-18 7/1/2017 7.25%42,300 9,261 51,561 1/1/2018 7.25%43,800 7,727 51,527 FY 18-19 7/1/2018 7.25%45,400 6,139 51,539 1/1/2019 7.25%47,100 4,494 51,594 FY 19-20 7/1/2019 7.25%48,700 2,786 51,486 1/1/2020 7.25%28,156 1,021 29,177 Total $410,356 $82,754 $493,110 Original Issue True Interest Rate (TIC): Principal Outstanding as of July 1, 2015: Amount Issued: Issue Date: PAGE 340 - CITY OF TIGARD ASSESSMENT-BANCROFT IMPROVEMENT BONDS SUMMARY $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 2016 2017 2018 2019 2019 An n u a l D e b t S e r v i c e Fiscal Year Projected Annual Debt Service Principal Interest FY 2015-16 debt service on outstanding Bancroft Bonds is scheduled as follows: Bancroft Bonds Date Interest Principal Total 2002 - 69th Ave LID 07/01/15 $14,876 $36,700 $51,576 01/01/16 $13,545 $38,000 $51,545 Additional Bond Calls as Needed $0 $0 $0 Total Bancroft Debt Service $28,421 $74,700 $103,121 DEBT SERVICE- PAGE 341 WATER REVENUE DEBT-WATER REVENUE BOND 2012 The Water Revenue Bond was issued in May 2012. This is the first revenue bond issue that will pay for Tigard's water infrastructure and securing a water source for Tigard through the Lake Oswego / Tigard Water Partnership. The Partnership will expand the capacity of the Lake Oswego Water Treatment Plant, providing Tigard with 18 million gallons of water per day. The bonds will be repaid by water usage rates and is eligible to be repaid using Water SDCs as well. Tigard is scheduled to receive water from the plant in 2016, when water purchases from Portland will end. The debt service is set up to make interest only payments through 2015 with higher annual debt service payments that include prin- cipal starting in 2016 when Portland water is no longer being purchased. $97,720,000 5/1/2012 Original Issue True Interest Rate (TIC):4.042% Principal Outstanding as of July 1, 2015:$97,720,000 Fiscal Year Payment Due Interest Rate Principal Due Interest Due Total Debt Service FY 15-16 8/1/2015 3.00%0 2,359,925 2,359,925 2/1/2016 2,359,925 2,359,925 FY 16-17 8/1/2016 3.00%1,870,000 2,359,925 4,229,925 2/1/2017 2,331,875 2,331,875 FY 17-18 8/1/2017 4.00%1,935,000 2,331,875 4,266,875 2/1/2018 2,293,175 2,293,175 FY 18-19 8/1/2018 4.00%2,015,000 2,293,175 4,308,175 2/1/2019 2,252,875 2,252,875 FY 19-20 8/1/2019 4.00%2,100,000 2,252,875 4,352,875 2/1/2020 2,210,875 2,210,875 FY 20-21 8/1/2020 4.00%2,185,000 2,210,875 4,395,875 2/1/2021 2,167,175 2,167,175 FY 21-22 8/1/2021 4.00%2,275,000 2,167,175 4,442,175 2/1/2022 2,121,675 2,121,675 FY 22-23 8/1/2022 4.00%2,365,000 2,121,675 4,486,675 2/1/2023 2,074,375 2,074,375 FY 23-24 8/1/2023 5.00%2,475,000 2,074,375 4,549,375 2/1/2024 2,012,500 2,012,500 FY 24-25 8/1/2024 5.00%2,605,000 2,012,500 4,617,500 2/1/2025 1,947,375 1,947,375 FY 25-26 8/1/2025 5.00%2,735,000 1,947,375 4,682,375 2/1/2026 1,879,000 1,879,000 FY 26-27 8/1/2026 5.00%2,875,000 1,879,000 4,754,000 2/1/2027 1,807,125 1,807,125 FY 27-28 8/1/2027 5.00%3,025,000 1,807,125 4,832,125 2/1/2028 1,731,500 1,731,500 FY 28-29 8/1/2028 5.00%3,180,000 1,731,500 4,911,500 2/1/2029 1,652,000 1,652,000 FY 29-30 8/1/2029 5.00%3,340,000 1,652,000 4,992,000 2/1/2030 1,568,500 1,568,500 FY 30-31 8/1/2030 5.00%3,515,000 1,568,500 5,083,500 2/1/2031 1,480,625 1,480,625 FY 31-32 8/1/2031 5.00%3,695,000 1,480,625 5,175,625 2/1/2032 1,388,250 1,388,250 FY 32-33 8/1/2032 5.00%3,885,000 1,388,250 5,273,250 2/1/2033 1,291,125 1,291,125 FY 33-34 8/1/2033 5.00%4,080,000 1,291,125 5,371,125 2/1/2034 1,189,125 1,189,125 FY 34-35 8/1/2034 5.00%4,290,000 1,189,125 5,479,125 2/1/2035 1,081,875 1,081,875 FY 35-36 8/1/2035 5.00%4,510,000 1,081,875 5,591,875 2/1/2036 969,125 969,125 FY 36-37 8/1/2036 5.00%4,745,000 969,125 5,714,125 2/1/2037 850,500 850,500 FY 37-38 8/1/2037 5.00%4,985,000 850,500 5,835,500 2/1/2038 725,875 725,875 FY 38-39 8/1/2038 5.00%5,240,000 725,875 5,965,875 2/1/2039 594,875 594,875 FY 39-40 8/1/2039 5.00%5,510,000 594,875 6,104,875 2/1/2040 457,125 457,125 FY 40-41 8/1/2040 5.00%5,795,000 457,125 6,252,125 2/1/2041 312,250 312,250 FY 41-42 8/1/2041 5.00%6,090,000 312,250 6,402,250 2/1/2042 160,000 160,000 FY 42-43 8/1/2042 5.00%6,400,000 160,000 6,560,000 0 Total $97,720,000 $84,181,325 $181,901,325 Amount Issued: Issue Date: PAGE 342 - CITY OF TIGARD WATER REVENUE DEBT-WATER REVENUE BOND 2015 The second Water Revenue Bond was issued in March 2015 to pay for Tigard's continuing water infra- structure needs and securing a water source for Tigard through the Lake Oswego / Tigard Water Part- nership. The first Water Revenue Bond was issued in May 2012. The Partnership will expand the ca- pacity of the Lake Oswego Water Treatment Plant, providing Tigard with 18 million gallons of water per day. The bonds will be repaid by water usage rates and is eligible to be repaid using Water SDCs as well. Tigard is scheduled to receive water from the plant in 2016, when water purchases from Portland will end. The debt service is set up to make interest only payments through 2016 with higher annual debt service payments that include principal starting in 2017. $30,810,000 3/3/2015 Original Issue True Interest Rate (TIC):4.090% Principal Outstanding as of July 1, 2015:$30,810,000 Fiscal Year Payment Due Interest Rate Principal Due Interest Due Total Debt Service FY 15-16 8/1/2015 3.00%0 621,888 621,888 2/1/2016 756,350 756,350 FY 16-17 8/1/2016 3.00%160,000 756,350 916,350 2/1/2017 753,950 753,950 FY 17-18 8/1/2017 4.00%165,000 753,950 918,950 2/1/2018 750,650 750,650 FY 18-19 8/1/2018 4.00%170,000 750,650 920,650 2/1/2019 747,250 747,250 FY 19-20 8/1/2019 4.00%175,000 747,250 922,250 2/1/2020 743,750 743,750 FY 20-21 8/1/2020 4.00%185,000 743,750 928,750 2/1/2021 740,050 740,050 FY 21-22 8/1/2021 4.00%190,000 740,050 930,050 2/1/2022 736,250 736,250 FY 22-23 8/1/2022 4.00%200,000 736,250 936,250 2/1/2023 732,250 732,250 FY 23-24 8/1/2023 4.00%210,000 732,250 942,250 2/1/2024 728,050 728,050 FY 24-25 8/1/2024 4.00%215,000 728,050 943,050 2/1/2025 723,750 723,750 FY 25-26 8/1/2025 4.00%225,000 723,750 948,750 2/1/2026 719,250 719,250 FY 26-27 8/1/2026 4.00%235,000 719,250 954,250 2/1/2027 714,550 714,550 FY 27-28 8/1/2027 5.00%245,000 714,550 959,550 2/1/2028 708,425 708,425 FY 28-29 8/1/2028 5.00%255,000 708,425 963,425 2/1/2029 702,050 702,050 FY 29-30 8/1/2029 5.00%270,000 702,050 972,050 2/1/2030 695,300 695,300 FY 30-31 8/1/2030 3.25%280,000 695,300 975,300 2/1/2031 690,750 690,750 FY 31-32 8/1/2031 5.00%290,000 690,750 980,750 2/1/2032 683,500 683,500 FY 32-33 8/1/2032 5.00%305,000 683,500 988,500 2/1/2033 675,875 675,875 FY 33-34 8/1/2033 5.00%325,000 675,875 1,000,875 2/1/2034 667,750 667,750 FY 34-35 8/1/2034 5.00%340,000 667,750 1,007,750 2/1/2035 659,250 659,250 FY 35-36 8/1/2035 5.00%360,000 659,250 1,019,250 2/1/2036 650,250 650,250 FY 36-37 8/1/2036 5.00%375,000 650,250 1,025,250 2/1/2037 640,875 640,875 FY 37-38 8/1/2037 5.00%395,000 640,875 1,035,875 2/1/2038 631,000 631,000 FY 38-39 8/1/2038 5.00%420,000 631,000 1,051,000 2/1/2039 620,500 620,500 FY 39-40 8/1/2039 5.00%440,000 620,500 1,060,500 2/1/2040 609,500 609,500 FY 40-41 8/1/2040 5.00%455,000 609,500 1,064,500 2/1/2041 598,125 598,125 FY 41-42 8/1/2041 5.00%485,000 598,125 1,083,125 2/1/2042 586,000 586,000 FY 42-43 8/1/2042 5.00%510,000 586,000 1,096,000 2/1/2043 573,250 573,250 FY 43-44 8/1/2043 5.00%7,265,000 573,250 7,838,250 2/1/2044 391,625 391,625 FY 44-45 8/1/2044 5.00%7,635,000 391,625 8,026,625 2/1/2045 200,750 200,750 FY 45-46 8/1/2045 5.00%8,030,000 200,750 8,230,750 Total $30,810,000 $40,283,638 $71,093,638 Amount Issued: Issue Date: DEBT SERVICE- PAGE 343 WATER REVENUE DEBT-ARRA WATER LOAN As part of the American Recovery and Reinvestment Act of 2009, Tigard received a grant and a loan to rehabilitate the water pump and seismic upgrades at our 10 mil water reservoir. The loan became set with the completion of the project in March 2012. The debt is being repaid with water user fees. Amount Issued:$2,398,000 Issue Date:3/6/2012 Original Issue True Interest Rate (TIC):3.000% Principal Outstanding as of July 1, 2015:$2,105,957 Fiscal Year Payment Due Interest Rate Principal Due Interest Due Total Debt Service FY 15-16 12/1/2015 3.00%98,005 63,179 161,183 FY 16-17 12/1/2016 3.00%100,945 60,239 161,183 FY 17-18 12/1/2017 3.00%103,973 57,210 161,183 FY 18-19 12/1/2018 3.00%107,092 54,091 161,183 FY 19-20 12/1/2019 3.00%110,305 50,878 161,183 FY 20-21 12/1/2020 3.00%113,614 47,569 161,183 FY 21-22 12/1/2021 3.00%117,023 44,161 161,183 FY 22-23 12/1/2022 3.00%120,533 40,650 161,183 FY 23-24 12/1/2023 3.00%124,149 37,034 161,183 FY 24-25 12/1/2024 3.00%127,874 33,310 161,183 FY 25-26 12/1/2025 3.00%131,710 29,473 161,183 FY 26-27 12/1/2026 3.00%135,661 25,522 161,183 FY 27-28 12/1/2027 3.00%139,731 21,452 161,183 FY 28-29 12/1/2028 3.00%143,923 17,260 161,183 FY 29-30 12/1/2029 3.00%148,241 12,943 161,183 FY 30-31 12/1/2030 3.00%152,688 8,495 161,183 FY 31-32 12/1/2031 3.00%130,491 3,915 134,406 Total $2,105,957 $607,381 $2,713,338 PAGE 344 - CITY OF TIGARD WATER REVENUE DEBT SUMMARY $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 $6,000,000 $6,500,000 $7,000,000 2016 2021 2026 2031 2036 2041 2046 An n u a l D e b t S e r v i c e Fiscal Year Projected Annual Debt Service Principal Interest FY 2015-16 debt service on the outstanding Water Revenue Debt is as follows: Water Revenue Debt Date Interest Principal Total Water Revenue Bond 2012 08/01/15 2,359,925$ 2,359,925$ 02/01/16 2,359,925$ 2,359,925$ Water Revenue Bond 2015 08/01/15 621,888$ 621,888$ 02/01/16 756,350$ 756,350$ ARRA Loan 12/01/15 63,179$ 98,005$ 161,183$ Total Water Revenue Debt Service 6,161,267$ 98,005$ 6,259,271$ City of Tigard | ADOPTED BUDGET | FY 2015–2016 FUND SUMMARIES- PAGE 345 FUND SUMMARIES INTRODUCTION The following section shows a detailed listing of the resources and requirements for each fund used by the city. Explanatory narratives are provided for each of the funds. In FY 2015-16, the city will use the following funds: Fund Type Fund Name General General Fund Enterprise Sanitary Sewer, Stormwater, Water, Water CIP, Water Debt Service, Water Quality/Quantity, Water SDC Special Revenue Building, City Gas, Criminal Forfeiture, Electrical Inspection, Gas Tax, Li- brary Donation and Bequests, Parks Bond, Parks SDC, Parks Utility, Street Maintenance, Traffic Impact Fee, Transportation Development Tax, Trans- portation SDC, Urban Forestry, Underground Utility Debt Service Bancroft, General Obligation Capital Projects Facilities, Parks, Transportation CIP Internal Service Central Services, Fleet/Property Maintenance, Insurance PAGE 346 - CITY OF TIGARD GENERAL FUND The General Fund is used to account for the city’s revenues and expenditures that are of a general nature and therefore not required to be recorded in another fund. General Fund revenues include property taxes, fees and charges for services, franchise fees, fines, interest, revenue from other agen- cies, and transfers from other funds. Expenditures out of the General Fund include programmatic expenses such as Police, Library, Community Development, and Parks, as well as transfers for capital improvement. In total, the General Fund continues to see limited growth in revenues. Some revenue streams may have modest growth, such as property taxes, while others are expected to remain significantly flat, such as hotel/motel tax. Property taxes constitute the largest single source of revenue for the Gen- eral Fund. Revenues received from other agencies include Hotel/Motel Tax, Washington County Cooperative Library Services (WCCLS) distribution share, Liquor Tax, Cigarette Tax, State Revenue Sharing distribution, and miscellaneous other Intergovernmental Revenue. Franchise Fees are paid by utility entities for their use of public right-of-ways and are based on a percentage of their gross revenues collected within the city. Property Tax, Intergovernmental, and Franchise Fees make up the three largest revenue categories. These three areas continue to see limited growth since the downturn in the economy. The city anticipates that General Fund revenues will continue to grow slowly in the next couple of fiscal years. As the City of Tigard, along with the State of Oregon and the nation, continues to slowly climb out of the economic downturn, especially in development and construction, revenues will see slight increases. FUND SUMMARIES- PAGE 347 GENERAL FUND PAGE 348 - CITY OF TIGARD GENERAL FUND FUND SUMMARIES- PAGE 349 GENERAL FUND PAGE 350 - CITY OF TIGARD ENTERPRISE FUND-SANITARY SEWER Funds collected in the Sanitary Sewer Fund are applied to the operation, maintenance, repair, and upgrade of the city’s sanitary sewer infrastructure. Within Washington County, a special district, Clean Water Services (CWS), provides stormwater and sanitary sewer treatment and sets all fees relat- ed to these services. CWS contracts with the City of Tigard for billing and collection of sanitary sew- er charges within the city’s limits and to provide stormwater system maintenance within the city. Sanitary Sewer Connection Fees are charged to developers and property owners upon connection to the city’s sewer system. The amount of this fee is determined by CWS each year. CWS also sets the base monthly sewer service charges. A customer’s monthly sewer charge is comprised of the base charge plus a consumption charge which is based on the customer’s average water consumption dur- ing the previous winter. The city retains approximately 16% (11% in the Sanitary Sewer Fund and 5% as a franchise fee in the General Fund) of these revenues and sends the remaining 84% to CWS each month. FUND SUMMARIES- PAGE 351 ENTERPRISE FUND-SANITARY SEWER PAGE 352 - CITY OF TIGARD ENTERPRISE FUND-STORMWATER Funds collected in the Stormwater Fund are applied to the operation, maintenance, repair, and up- grade of the city’s stormwater facilities. Within Washington County, a special district, Clean Water Services (CWS), provides stormwater and sanitary sewer treatment and sets all fees related to these services. CWS contracts with the City of Tigard for billing and collection of stormwater charges within the city’s limits and to provide stormwater system maintenance within the city. The city cur- rently retains 75% of the stormwater fees collected by the city. The city also assesses a $2.00 per month surcharge for stormwater system maintenance. FUND SUMMARIES- PAGE 353 ENTERPRISE FUND-WATER The City of Tigard manages the operation of the water system through intergovernmental agree- ments with the cities of King City and Durham and with the Tigard Water District. The Water Fund is the primary operating fund for the water system and accounts for all costs associated to the water operation, including ongoing maintenance. The Water Fund also transfers to the Water CIP Fund for various capital improvement projects and to the Water Debt Service Fund to pay debt service on water revenue bonds. The Water Fund maintains a Rate Stabilization Account of $2.0 million. In 2008 Tigard entered into a water partnership with the City of Lake Oswego on a long-term water source. The two cities agreed to jointly:  Expand Lake Oswego's water treatment facility  Replace the existing river intake  Construct a reservoir  Upsize transmission lines  Develop existing water rights and permits on the Clackamas River The improvements would allow Tigard and Lake Oswego to produce up to 38 million gallons of wa- ter (mgd) per day. In December 2013, the two cities agreed to transfer 4 million gallons of water per day from Lake Oswego to Tigard, bringing Tigard up to 18 mgd. Water is anticipated to begin flow- ing from the new facility by 2016. Based on this water financing plan that was approved by Council in 2010, Tigard's share of the im- provements and cost to buy into Lake Oswego's existing system is estimated to total $155 million. PAGE 354 - CITY OF TIGARD ENTERPRISE FUND-WATER FUND SUMMARIES- PAGE 355 ENTERPRISE FUND-WATER CIP The Water CIP Fund accounts for major capital improvement projects for the water system. Re- sources in this fund consist largely of transfers from the Water Fund and borrowing proceeds. In fiscal year 2015-16, the fund will have a beginning fund balance of over $18 million from water revenue bonds issued the previous fiscal year. These dollars will be utilized to continue to fund the city’s long- term water project. In 2008 Tigard entered into a water partnership with the City of Lake Oswego on a long-term water source. The two cities agreed to jointly:  Expand Lake Oswego's water treatment facility  Replace the existing river intake  Construct a reservoir  Upsize transmission lines  Develop existing water rights and permits on the Clackamas River The improvements would allow Tigard and Lake Oswego to produce up to 38 million gallons of water per day. Of this amount, Tigard will receive between 18 million gallons per day. Water is anticipated to begin flowing from the new facility by 2016. In October 2010, City Council approved the Water Rate Study that was completed by Red Oak Con- sulting. Based on this water financing plan, Tigard's share of the improvements and cost to buy into Lake Oswego's existing system is estimated to be $155 million. In May 2012, $102.5 million of water revenue bonds were issued. The majority of the proceeds were deposited into the Water CIP Fund to pay for capital projects for the water system, including the Lake Oswego/Tigard Water Partnership. In December 2013, the partnership agreed to amend its intergov- ernmental agreement to transfer an additional 4 million gallons per day from Lake Oswego to Tigard. During FY 2014-15, the city received an additional $35 million dollars in water bond proceeds. This accounts for the substantial fund balance in this fund. Bonding revenues will be received in the Water CIP Fund and annual bond payments in subsequent years will show in the Water Debt Service Fund. Funding for the bond payments will come from wa- ter rates and will be transferred by the Water Fund into the Water Debt Service Fund. PAGE 356 - CITY OF TIGARD ENTERPRISE FUND-WATER CIP FUND SUMMARIES- PAGE 357 ENTERPRISE FUND-WATER DEBT SERVICE The Water Debt Service Fund accounts for revenues and debt service payments related to the issuance of water revenue bonds. The fund also maintains a fund balance to provide an estimated Debt Service Reserve Fund of $6.4 million. PAGE 358 - CITY OF TIGARD ENTERPRISE FUND-WATER QUALITY/QUANTITY The Water Quality/Quantity Fund is a subsidiary fund of the Stormwater Fund. The city charges Wa- ter Quality/Quantity fees, which are established by Clean Water Services, on certain development ac- tivities in the city. Revenues collected are used to fund offsite stormwater system improvements and capacity improvements to the system. Revenues, as they are tied directly to development activities, fluctuate to a degree and as such have been down over the past few years. In addition to a slowdown in development activity, some developers are choosing to build their own on-site stormwater detention facilities rather than pay the fee. FUND SUMMARIES- PAGE 359 ENTERPRISE FUND-WATER SDC The Water System Development Charge (SDC) Fund is a subsidiary of the Water Fund. Water SDCs are charged when new water meters are sold and installed. The total purpose of the Water SDC is to fund future capacity-increasing projects and pay a reimbursement fee for existing assets. In October 2010, the city completed its update of the Water SDCs. City Council agreed to phase in the increase over four years. Final phase-in occurred on February 1, 2014. As SDCs are tied to development activity they tend to fluctuate. The city is beginning to see an up- ward trend in these revenues. PAGE 360 - CITY OF TIGARD SPECIAL REVENUE FUND-BUILDING The Building Fund is used to track building permit revenues and expenditures. All activities of the city’s Building Division are appropriated in this fund. The Building Division, a part of the Communi- ty Development Department, is responsible for reviewing plans, issuing permits, and inspecting con- struction to ascertain compliance with the State of Oregon specialty codes. The specialty codes in- clude building, fire, plumbing, mechanical, electrical codes and other State of Oregon rules and stat- utes. The division enforces requirements of the Tigard Municipal Code and Community Develop- ment codes and ordinances. Revenues collected in the Building Fund are dedicated to supporting the divisional activities and relat- ed administrative expenses. The amount of the charge for a building -related fee is detailed in ORS 455.210 and OAR 918-020-0220. FUND SUMMARIES- PAGE 361 SPECIAL REVENUE FUND-BUILDING PAGE 362 - CITY OF TIGARD SPECIAL REVENUE FUND-CITY GAS TAX The City Gas Tax Fund is used to account for revenues generated from and projects funded by Tigard’s local gas tax. The tax was developed by a citizen task force in 2006 as a means to fund im- provements to the Greenburg Road/Pacific Highway/Main Street intersection. The plan was to sun- set the tax after paying for the project. In 2009, a change in state law forbade cities from changing their local gas tax, resulting in an inability to sunset the tax. The decision was made by the Tigard City Council to have the tax remain in effect permanently as a source to fund other future transporta- tion project needs as recommended by a citizen task force. The Greenburg Road/Pacific Highway/ Main Street intersection project was completed in December 2010. Revenue coming into the fund is currently being used to pay debt service on that project. The Tigard Transportation Advisory Com- mittee (TTAC) advises council of potential transportation projects that can be funded by this reve- nue. Based on recommendation of TTAC, the city has funded two additional transportation projects with City Gas Tax Funds. They are the Pacific Highway/Gaarde Street/McDonald Street Intersec- tion Improvements, and the 72nd Avenue/Dartmouth Street Intersection Improvements that was completed in December 2014. FUND SUMMARIES- PAGE 363 SPECIAL REVENUE FUND– CRIMINAL FORFEITURE The Criminal Forfeiture Fund records revenues received from the seizure of assets used in criminal activity. Prior to FY 2014, a transfer out to the General Fund was established each fiscal year in order for the Tigard Police Department to have as-needed access to fund-allowable police and drug enforce- ment activities. Beginning in FY 2014, the police related expenditures are made directly out of the fund. PAGE 364 - CITY OF TIGARD SPECIAL REVENUE FUND– ELECTRICAL INSPECTION The Electrical Inspection Fund records revenues related to electrical permits and plan check fees in the city. The fees are established by single or multi-family dwelling units or by type of service, and are es- tablished following the guidelines detailed in ORS 455.210 and OAR 918 -020-0220. These guidelines specify that the fees charged are necessary and are to be set at a level that reasonably recovers costs. The revenues are then transferred to the Building Fund to support the costs associated with these fees. FUND SUMMARIES- PAGE 365 SPECIAL REVENUE FUND– GAS TAX The Gas Tax Fund records shared revenues from the State of Oregon and Washington County taxes on the sale of motor vehicle fuel. The city utilizes these revenues to fund various construction, recon- struction, improvements, repairs, maintenance, and operation of public highways, roads, and streets. These monies may also be used for street lighting and cleaning, storm drainage, traffic control devices, administrative costs and debt service. State of Oregon gas tax and vehicle registration fees are shared with cities and counties throughout the State using a formula set by the legislature. The expenditure of state gas tax revenue is restricted to the uses outlined in Article IX, section 3a of the Oregon Constitution. Washington County collects one cent per gallon for all motor vehicle fuel sold within the county. Por- tions of this collection are distributed to cities within the county according to a formula set by the county. PAGE 366 - CITY OF TIGARD SPECIAL REVENUE FUND– GAS TAX FUND SUMMARIES- PAGE 367 SPECIAL REVENUE FUND– LIBRARY DONATIONS & BEQUESTS The Library Donations and Bequest Fund accounts for money remaining from several donations and bequests that were provided to the Library for various special projects and artwork. A transfer to the Facilities Capital Projects Fund is appropriated in FY 2015 -16 for any of these projects or artwork that arise. PAGE 368 - CITY OF TIGARD SPECIAL REVENUE FUND– PARKS BOND In November 2010, voters approved a $17 million parks bond for purchase of land and greenspaces to be used for parks. A minimum of 80% of the proceeds can be used for land acquisitions with the remaining 20% to be utilized for park improvements. Funding for land acquisitions and improve- ments will come from the Parks Bond Fund, with expenditures recorded in the Parks Capital Fund. Remaining park bond resources will be expended during FY 2015-2016: FUND SUMMARIES- PAGE 369 SPECIAL REVENUE FUND– PARKS SDC The Parks System Development Charge (SDC) Fund was established to track the revenues and ex- penditures associated with the collection of the Parks SDCs. Parks SDCs are charged when a building permit is issued for any new residential, multi-family, or commercial construction. Funds collected are used for the acquisition, development, and expansion of additional recreation spaces and facilities that are included in the city’s Parks Master Plan. During FY 2015-16, the city will implement a new Parks SDC that incorporates the River Terrace sub- division. These rates are adjusted annually using an average of two indices, one reflecting changes in development/construction costs and one reflecting changes in land acquisition costs. PAGE 370 - CITY OF TIGARD SPECIAL REVENUE FUND– PARKS UTILITY The Parks Utility Fund is a special revenue fund that is used for maintenance and operation of city parks, trails, and green-spaces. The fund will be seeded with General Fund revenue the first year in FY 2016. Future years will be funded by a monthly fee to be charged to Tigard residents that will be in- cluded on utility bills. Revenues generated by the fee will be used to continue to pay for operations and maintenance of city parks, trails, green-spaces, as well as right-of-ways thereafter. FUND SUMMARIES- PAGE 371 SPECIAL REVENUE FUND– STREET MAINTENANCE FEE The Street Maintenance Fee Fund was established to track the revenues and expenditures associated with the Street Maintenance Fee that was approved through Ordinance No. 03 -10 by the City Council in November 2003 and updated with revised fees in January 2010. The Street Maintenance Fee is a monthly fee designed specifically for the maintenance of existing roads in Tigard. Monthly fees are billed to and collected from both residential and non-residential customers through the city's utility billing system. The fee provides a stable source of revenue designated for the use in the maintenance of existing streets and right-of-way maintenance within the city. This includes applying new street surfaces such as slurry seals, pavement overlays, and repairing deteriorating streets. PAGE 372 - CITY OF TIGARD SPECIAL REVENUE FUND– TRANSPORTATION DEVELOPMENT TAX The Transportation Development Tax (TDT) Fund accounts for a Washington County Tax approved by the voters in November 2008 that is administered and collected by the City of Tigard. The tax went into effect on July 1, 2009, replacing the Traffic Impact Fee (TIF) program. Like TIF, TDT is assessed on new development to help provide funds for the increased capacity trans- portation improvements need to accommodate the additional vehicle traffic and demand for transit facilities generated by that development. It provides funds for these capacity improvements to county and city arterials, certain collectors, and certain state and transit facilities as listed in the County’s Capi- tal Improvements Project List. The TDT is categorized as an Improvement Fee. Revenue must be dedicated to capital improvements that expand capacity and may not be used for maintenance, repair, or other non-capital improvements. Since the TDT was approved by Washington County voters, the Washington County Board of Com- missioners has granted a discount to developers and slowed the phase-in of the TDT. However, the tax has been fully phased-in as of October 2014. FUND SUMMARIES- PAGE 373 SPECIAL REVENUE FUND– TRANSPORTATION SDC The Transportation System Development Charge (SDC) Fund was established to track the revenues and expenditures associated with the collection of transportation SDCs. The charges are collected up- on issue of a building permit for any new residential, multi -family, or commercial construction. The fees supporting the fund are anticipated to be adopted prior to FY 2016. To assist with infrastructure capacity needs in River Terrace, an additional SDC will be charged for that area. PAGE 374 - CITY OF TIGARD SPECIAL REVENUE FUND– UNDERGROUND UTILITY The Underground Utility Fund was established to record funds that are received in lieu of under- grounding utilities. The resources in this fund are used primarily to support various capital improve- ment projects that require underground utility components. FUND SUMMARIES- PAGE 375 SPECIAL REVENUE FUND– URBAN FORESTRY The Urban Forestry Fund was established to account for funds collected from developers in lieu of preserving trees. Monies collected in this fund can be used by the city to plant trees in public rights-of- way and other public properties. These resources can also be used to provide care and maintenance to the trees planted by the city for three years after the planting. PAGE 376 - CITY OF TIGARD DEBT SERVICE FUND– BANCROFT DEBT SERVICES The Bancroft Debt Service Fund accounts for revenues and debt service payments related to two local improvement districts (LID) within the city. In July of 2002, the city sold bonds for the 69th Avenue LID project. In December of 2003, the city sold bonds to finance the remaining portion of the Dart- mouth LID project. Bonds for the Dartmouth LID were paid off in November 2013 leaving the 69 th Avenue as the city’s remaining LID project. Fund revenues are derived from assessments on proper- ties that participate within these districts. The reserve for future expense is to be used to protect against fluctuations and non-payment of assessments by property owners and to provide cash flow to pay debt service as scheduled. FUND SUMMARIES- PAGE 377 DEBT SERVICE FUND– GENERAL OBLIGATION DEBT SERVICE The General Obligation Debt Service Fund accounts for revenues and debt service payments related to the 2002 voter-approved bond measure for a new library and the 2011 voter-approved bond measure for the purchase and development of parks. Property taxes collected through the debt levies will be used to repay these bonds and ending fund balance is used to protect against fluctuations in property tax payments and provide cash flow to match collections and payments. PAGE 378 - CITY OF TIGARD CAPITAL PROJECTS FUND– FACILITIES CAPITAL PROJECTS The Facilities Capital Projects Fund is used largely for general construction, reconstruction, replace- ment, and expansion related to the city’s facilities. Transfers into this fund come from the various oth- er funds that will benefit directly from these projects. The fund is currently building a reserve to con- struct a new Public Works facility with transfers from the General Fund, Water Fund, Sanitary Sewer Fund, Stormwater Fund and Gas Tax Fund supporting this reserve. FUND SUMMARIES- PAGE 379 CAPITAL PROJECTS FUND– PARKS CAPITAL The Parks Capital Fund tracks various parks and greenspaces projects. Revenues accounted for in the Parks Capital Fund include various federal and state grants, intergovernmental revenues, and transfers- in. PAGE 380 - CITY OF TIGARD CAPITAL PROJECTS FUND– TRANSPORTATION CIP The Transportation CIP Fund tracks all capital improvement projects that are funded with transporta- tion revenues including Gas Tax, Traffic Impact Fees (TIF) and Transportation Development Tax (TDT). Resources to the fund include state and federal grants and transfers-in. FUND SUMMARIES- PAGE 381 INTERNAL SERVICE FUND– CENTRAL SERVICES The Central Service Fund was established to track the revenues and expenditures of the central admin- istrative functions in the city. The resources for this fund are largely interdepartmental charges to oth- er city funds. These charges are allocated to departments through a federally approved indirect cost plan. The basis for these allocated costs is reviewed each year based on anticipated use or benefits that are provided to other city departments or divisions. PAGE 382 - CITY OF TIGARD INTERNAL SERVICE FUND– CENTRAL SERVICES FUND SUMMARIES- PAGE 383 INTERNAL SERVICE FUND– FLEET/PROPERTY MANAGEMENT The Fleet/Property Management Fund tracks the revenues and expenditures of the Fleet Maintenance Division and Property Management Division. The resources for this fund are largely interdepartmental charges to other city funds that are based on a federally approved cost allocation plan that is revised each year. The cost allocation plan is based on anticipated use of benefits that are provided to other city departments or divisions. PAGE 384 - CITY OF TIGARD INTERNAL SERVICE FUND– INSURANCE The Insurance Fund is an internal service fund established to track worker’s compensation and other insurance related revenues as well as limited expenditures. Expenditures in this fund are for self - insured retentions on losses unfunded by traditional insurance policies, management of insurance/ claim activity and reduction of significant liability exposures. City of Tigard | ADOPTED BUDGET | FY 2015–2016 APPENDIX- PAGE 385 SCHEDULE OF APPROPRIATIONS PAGE 386 - CITY OF TIGARD SCHEDULE OF APPROPRIATIONS APPENDIX- PAGE 387 SCHEDULE OF APPROPRIATIONS PAGE 388 - CITY OF TIGARD SCHEDULE OF APPROPRIATIONS APPENDIX- PAGE 389 SCHEDULE OF APPROPRIATIONS PAGE 390 - CITY OF TIGARD SCHEDULE OF APPROPRIATIONS APPENDIX- PAGE 391 SCHEDULE OF APPROPRIATIONS PAGE 392 - CITY OF TIGARD SCHEDULE OF APPROPRIATIONS APPENDIX- PAGE 393 SCHEDULE OF APPROPRIATIONS PAGE 394 - CITY OF TIGARD SCHEDULE OF APPROPRIATIONS APPENDIX- PAGE 395 SCHEDULE OF APPROPRIATIONS PAGE 396 - CITY OF TIGARD 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 for services and facilities desired and needed by the public. The city has established a formal set of financial policies to ensure that the pub- lic’s trust is upheld. With these financial policies, the city has established the framework under which it conducts its financial affairs, ensuring that it is, and will continue to be, capable of funding and provid- ing outstanding local government services. The goals of Tigard’s financial policies are as follows: • Enhance City Council’s policy-making ability by providing accurate information on program and operating costs. • Assist sound management of the city government by providing accurate and timely information on current and anticipated financial conditions. • Provide sound principles to guide important decisions of the council and management that have significant financial impact. • Set forth operational principles which minimize the cost and financial risk of local government consistent with services desired by the public. • Employ revenue policies that prevent undue or unbalanced reliance on any one source, distribute the cost of municipal services fairly and provide adequate funds to operate desired programs. • Provide and maintain essential public facilities, utilities, infrastructure and capital equipment. • Protect and enhance the city’s credit rating. • Ensure that all surplus cash is prudently invested in accordance with the investment policy adopted by the council to protect city funds and realize a reasonable rate of return. The city uses the following financial policies to guide its financial affairs: Revenue Policy • Maintain a diversified and stable revenue system to shelter the government from short-term fluctu- ations in any one-revenue source. • One-time revenues will be used only for one-time expenditures. The city will avoid using tempo- rary revenues to fund mainstream services. • All revenue forecasts shall be conservative. • Regular reports comparing actual to budgeted revenues will be prepared by the Finance Depart- ment and presented to the City Manager. • All city funds shall be safely invested to provide a sufficient level of liquidity to meet cash flow needs and to provide the maximum yield possible in that order. One hundred percent of all idle cash will be continuously invested • The city will maintain an unallocated fund balance or retained earnings equal to or greater than two months of general operating expenditures or expenses. This reserve will be calculated based on the adopted annual operating budget of the city. These funds will be used to avoid cash-flow interrup- tions, generate interest income, reduce need for short-term borrowing and assist in maintaining an investment grade bond rating capacity. APPENDIX- PAGE 397 FINANCIAL POLICIES The city will also end each fiscal year with an adequate fund balance in the General Fund to pro- vide resources necessary for cash flow from July 1 until property taxes are received in November. Operating Budget Policy • Regular reports comparing actual to budgeted expenditures will be prepared by the Finance De- partment and distributed to the City Manager. • Departmental objectives will be integrated into the city’s annual budget and monthly departmental reports. • Before the city undertakes any agreements that create fixed costs, both operating and capital, the implications of such agreements will be fully determined for current and future years. • All non-salary benefits, such as social security, pension and insurance will be estimated and their impact on future budgets assessed annually. • Cost analysis of salary increases will include the effect of such increases on the city’s share of relat- ed fringe benefits. • The city will annually submit documentation to obtain the Award for Distinguished Budget Presentation from the Government Finance Officers Association (GFOA). Capital Improvement Policy • Systems development charges (SDCs) will be used for infrastructure capacity expansion and im- provements, including in-house engineering and design. • Future operating costs associated with new capital improvements will be projected and included in the operating budget forecast. • The city will determine and use the most effective and efficient method for financing all new capi- tal projects. • Special funds dedicated for capital improvements will be segregated in the accounting system and used only for the intended capital purposes. Fixed Asset Policy • The city will control capital assets by assigning accountability and responsibility to specific depart- ments. • The city will provide documentation of equipment loss to the insurance companies in the event of losses due to fire or theft. • The city will maintain and provide information such as depreciation and obsolescence needed for city’s enterprise funds (Water, Sanitary Sewer and Stormwater).  The city will provide budget information for capital replacements and additions. • The city will maintain inventories of all city equipment to avoid duplication of equipment. • The city will maintain a list of all assets and their values to ensure the capital assets are properly insured. PAGE 398 - CITY OF TIGARD FINANCIAL POLICIES Accounting Policy • The city will maintain high standards of accounting. Accounting principles generally accepted in the United States of America (GAAP) will be used in accordance with the standards developed by the Governmental Accounting Standards Board (GASB) and endorsed by the Government Fi- nance Officers’ Association (GFOA). • An independent annual audit will be performed by a public accounting firm, which will issue an official opinion on the annual financial statements and management letter detailing areas that need improvement. • Full disclosure will be provided in the financial statements and bond representations. • Financial systems will be maintained to monitor expenditures and revenues on a monthly basis, with thorough analysis. • The accounting system will provide monthly information about cash position and investment per- formance. • The city will annually submit documentation to obtain the Certificate of Achievement for Excel- lence in Financial Reporting from GFOA. Debt Policy • Capital projects financed through bond proceeds shall be financed for a period not to exceed the useful life of the project. • Long term borrowing will be confined to capital improvements too large to be financed from cur- rent revenues. • Issuance of assessment bonds will be pursued to finance local improvement districts approved by City Council. • Bond anticipation notes will be used as needed to finance construction of local improvements. Single Owner Local Improvement District Policy Local improvement districts (LIDs) are usually initiated either by the City Council or by written re- quest of the property owners owning at least fifty percent of the property benefited by the local im- provement. On occasion, the city receives requests to form a LID in which there would be only one property owner involved. City Council has established a formal policy for single owner LIDs. The following are the conditions that must be met before council will consider allowing the LID to be formed. • The property is zoned and proposed to be used for industrial, commercial or office development. • The applicant demonstrates the “Public Purpose” involved, which may include the creation of jobs in the community. APPENDIX- PAGE 399 FINANCIAL POLICIES  The applicant demonstrates that the risk to the city government or the general taxpayer is mini- mized. As a guideline, the City Council will request the following: a. That the applicant provide an appraisal of the property affected, such appraisal being done by an appraiser acceptable to the City Manager. b. That the amount to be assessed against the property not exceed 25% of the appraised value of the land only, excluding any improvements to the property. c. That financial documents be provided as required to the City Manager which can demonstrate that the property owner has the financial ability to pay the assessments levied on the property. INVESTMENT POLICY The following Investment Policies are intended to meet the requirements of ORS 294.035 and to pro- vide the framework within which City of Tigard funds may be invested. Authority The Finance and Information Services Director shall serve as the investment officer of the city. The investment officer is responsible for ensuring that funds are invested so as to make necessary cash available to meet current obligations and to invest excess cash in accordance with ORS 294.035 through ORS 294.047 and these Investment Policies. The Finance and Information Services Director may assign the delegation of authority to persons re- sponsible for investment transactions. This person would then act as investment officer with prior ap- proval of the City Manager. Scope These Investment Policies apply to all excess cash related to all activities and funds under the direction of the Tigard City Council. Cash accumulations related to bond proceeds or short-term borrowing is included unless more restrictive state or federal regulations are applicable. Excess cash shall be defined as all liquid assets not necessary to meet current obligations. Deferred Compensation Deferred compensation funds are placed with a third party for investment and are therefore excluded from the restrictions set forth in these guidelines. Objectives The objectives of these policies are to provide for the preservation of city assets, the availability of such assets to meet obligations as they come due, and to provide for a reasonable rate of return on those as- sets, in that order. PAGE 400 - CITY OF TIGARD FINANCIAL POLICIES Prudent Investor Investments shall be made under the prudent investor’s rule, which states, “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for invest- ment, considering the probable safety of their capital as well as the probable income to be derived.” Internal Controls The investment officer shall maintain a system of written internal controls, which will be reviewed an- nually by the independent auditor. Cash Flow Analysis The investment officer shall maintain a historical cash flow record and a cash flow projection, which extends twelve months into the future. The projection shall be reviewed and updated on a regular ba- sis. No fixed maturity securities shall be purchased unless the cash flow projection indicates that the funds invested will not be required until the maturity date of the investment. Bond Proceeds Surplus funds resulting from debt issuance shall be considered as a separate portfolio and shall not be restricted by the maturity and instrument diversification section of these policies. Such funds may be invested for periods exceeding 18 months and up to 60 months. Such maturities shall coincide with the projected cash flow needs resulting from the projected construction schedule. Diversification The investment officer will diversify the general portfolio to avoid unreasonable risks within the fol- lowing parameters: • Maturity Diversification Investment maturities shall be scheduled to coincide with projected cash flow needs. Thirty per- cent of the portfolio will mature in less than 90 days. No investments will be made for a period to exceed 18 months unless: This investment policy has been submitted to the Oregon Short Term Fund Board (OSTF) for comment prior to being approved by council and complies with the requirements of ORS 294.135. In this case, the maximum maturity shall be defined in policy. If the funds are being accumulated for a specific purpose, including future construction projects, and upon approval of the council, the maximum maturity date matches the anticipated use of the funds (ORS 294.135(1)(b)). APPENDIX- PAGE 401 FINANCIAL POLICIES If this investment policy has been submitted for review by the OSTF Board as specified above and in accordance with ORS 294.135(1)(a), debt service reserves may be invested to mature not longer than five years. Otherwise, debt service reserves shall not be invested to a maturity date exceeding one year as specified under ORS 294.135(3). The investment officer may make investments having maturity longer than 18 months, but not more than 36 months, with the exception of bond proceeds. The city’s investment portfolio shall not con- tain more than 20% of the total dollar value of its investments with maturities between 18 months and 36 months. • Instrument Diversification Certificates of Deposit 25% maximum Corporate Indebtedness 35% maximum Bankers Acceptance 50% maximum Treasury/Agency Securities 90% maximum Local Government Investment Pool 100% maximum Demand Deposits 10% maximum Lawfully issued Debt Obligations of the States of Oregon, Washington, Idaho and California and political subdivisions of those states 25% maximum • Institution Diversification Bank liabilities with any one qualified financial institution shall not exceed 20 percent of the port- folio. Bank liabilities of any one qualified financial institution shall not exceed one percent of the institution’s total assets. Investment in Corporate Indebtedness shall not exceed 5 percent of the portfolio in any one Oregon corporate entity meeting the rating requirements of P-2/A-2 or better, or 5 percent of the portfolio in any one corporate entity outside the State of Oregon (ORS 294.035 section C). For purposes of these guidelines, the state local government investment pool (LGIP) shall be considered to have a one-day liquidity. Selection of Investment Instruments Investments shall be made by the investment officer through the exercise of his/her judgment after requesting quotes from financial institutions. Selections will be made so as to provide the highest rate of return within the parameters of these policies. PAGE 402 - CITY OF TIGARD FINANCIAL POLICIES Qualified Institutions The investment officer shall maintain a list of all authorized institutions that are approved for invest- ment purposes. The investment officer will request, analyze and keep on file periodic financial state- ments and related information to satisfy himself/herself as to the creditworthiness of each institution on the approved list. Reporting The investment officer shall prepare an investment activity report at the end of each month for review by the City Manager. Amendments These investment policies may be amended at the request of the investment officer, the City Manager, or members of City Council. Such amendments shall be approved by the City Council in the same manner as the investment policies. Authorized Investment Instruments The investment officer shall invest the money of the city only in qualifying investments according to guidelines in ORS 294.035. These investments include: • Demand deposits with approved institutions. • Deposits in the Oregon Local Government Investment Pool. • Certificates of Deposit with Oregon banks. • Banker’s acceptances. • Qualifying corporate indebtedness not to exceed 5% of the portfolio on any one corporation. • Lawfully issued debt obligations of the United States and obligation guaranteed by the United States, the agencies of the United States or enterprises sponsored by the United States government, not to exceed 40% of the portfolio on any one government sponsored enterprise. • Lawfully issued debt obligations of the States of Oregon, Washington, Idaho and California and political subdivisions of those states. Safekeeping A third-party custodian, as evidenced by safekeeping receipts, will hold securities (excluding funds in- vested in the state local government investment pool (LGIP), bank deposits, and Certificates of De- posits). Other Policy Considerations Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such monies shall be reinvested only as pro- vided by this policy. APPENDIX- PAGE 403 GLOSSARY OF BUDGET RELATED TERMS Adopted Budget: The budget amended and approved by the Budget Committee becomes the adopted budget after City Council takes action on it. The adopted budget becomes effective July 1. Ad Valorem Tax: A tax based on value, such as a property tax. Appropriations: Legal authorization granted by the City Council to spend public funds. Appropriations within each program may not be exceeded. Approved Budget: The proposed budget as amended and approved by the Budget Committee and recommended to the City Council for adoption is referred to as the Approved Budget. Assets: Property owned by the city, which has monetary value. Balanced Budget: A budget is “balanced” when total resources (beginning fund balance plus current revenues plus transfers-in) equals total requirements (expenditures plus contingency plus transfers-out plus ending fund balance) for each fund. Bancroft: Section of Oregon Law that allows benefited property owners within an LID to pay their assessments in installments. This is made possible by the sale of long term “Bancroft” bonds, proceeds of which are used to pay LID costs. Principal and interest on Bancroft bonds are paid by assessments received from property owners within an LID, though these bonds also carry the full faith and credit guarantee of the city. Bond: A written promise to pay a specified sum of money, called the face value or principal amount, at a specified date or dates in the future, called the maturity date(s), together with periodic interest at a specified rate. Bond Anticipation Note (BAN): BANs are a form of short-term borrowing in anticipation of a future sale of long -term bonds. BANs are used frequently to finance construction of local improvement district improvements and are retired by eventual sale of Bancroft bonds or collection of special assessments from benefited property owners. Budget: A plan of financial operation embodying an estimate of adopted resources and expenditures for a given year. The budget is the legal spending limit for city activities. Budget Message: Opening section of the budget which provides the City Council and public with a general summary of the most important aspects of the budget, changes from current and previous fiscal years and views and recommendations of the City Manager. Capital Improvement Plan (CIP): Expenditures which result in the acquisition of land, improvements to existing facilities and construction of streets, sewers, storm drains, park facilities and other public facilities. Capital Outlays: Expenditures equal to or greater than $5,000, for equipment, vehicles or machinery that results in the acquisition or addition to fixed assets. City Center Development Agency (CCDA): The Urban Renewal Agency approved by the voters in May, 2006. The CCDA is comprised of members of the City Council as its governing body. PAGE 404 - CITY OF TIGARD GLOSSARY OF BUDGET RELATED TERMS Clean Water Services (CWS): Clean Water Services owns and operates all major sewage treatment plants within Washington County. CWS establishes sewer rates and contracts with most cities to collect monthly charges from residents and perform most sewer maintenance and repair within city limits. Contingency: Appropriation established in certain funds for the funding of unforeseen events. Contingency may be appropriated for a specific purpose by the City Council by approval of a resolution. Debt Service: Interest and principal on outstanding bonds due and payable during the fiscal year. Employee Benefits: Benefits include social security, retirement, group health, dental and life insurance, workers’ compensation and disability insurance. Enterprise Funds: Governmental activities that can be operated most like a commercial business are referred to as enterprise activities and are accounted for in enterprise funds. Tigard’s enterprise activities include sewer, stormwater and water utilities. Expenditures are matched with revenue from service charges to ensure the program is self- supporting. Expenditure: Actual payment made by city check or wire transfer for services or goods received or obligations extinguished. Fees: General term used for any charge levied by local government in connection with providing a service, permitting an activity or imposing a fine or penalty. Major types of fees include building permits, business and non-business taxes, fines and user charges. Fiscal Year: Period used for accounting year. The City of Tigard has a fiscal year of July 1 through the following June 30. Franchise: A special privilege granted by a government, permitting the continued use of public property, such as city streets, and usually involving the elements of monopoly and regulation. FTE: Abbreviation for Full Time Equivalent. Staffing levels are measured in FTE’s to give a consistent comparison from year to year. In most cases, an FTE is one full time position filled for the entire year. However, in some instances an FTE may consist of several part time positions. Fund: A fiscal and accounting unit with a self-balancing set of accounts in which cash and other financial resources, liabilities, equities and changes therein are recorded to carry on specific activities and/or objectives. Fund Balance: Amount left over after expenditures are subtracted from resources. Each fund begins and ends each fiscal year with a positive or negative fund balance. General Fund: The primary discretionary fund of the city, which accounts for general- purpose revenues (such as property tax) and general-purpose operations. Generally Accepted Accounting Principles (GAAP): Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. Intergovernmental Revenues: Revenue from other governments, primarily Federal and State grants and State shared revenues, also payments from other local governments. APPENDIX- PAGE 405 GLOSSARY OF BUDGET RELATED TERMS Local Improvement District (LID): An LID is an entity formed by a group of property owners or the city to construct public improvements (such as streets, sewers, storm drains, streetlights, etc.) to benefit properties. Costs of such improvements are then assessed among benefited properties. Measure 5: A constitutional limit on property tax rates passed by voters in the State of Oregon in November 1990. Measure 47: A Constitutional limit on individual property tax collections approved by voters in November 1996. Measure 50: Passed by voters in May 1997, this legislatively referred measure repealed Measure 47, and significantly reduced future property taxes. Metro: Metro is responsible for regional transportation and land use planning. It also manages the Oregon Zoo, the Oregon Convention Center, the Portland Center for the Performing Arts, and the Exposition Center. Metro is also responsible for regional solid waste disposal. Modified Accrual Basis: The accrual basis of accounting adapted to the governmental fund-type measurement focus. Under it, revenues and other financial resource increments (e.g., bond issue proceeds, property taxes and/or special assessments) are recognized when they become both measurable and available to finance expenditures of the current period. Object Classification: Indicates type of expenditure being made, i.e., personal services, materials and services, capital outlay, etc. Operating Budget: The portion of the budget that includes appropriations for direct services to the public including wages and benefits, materials and services and capital outlay. Excluded from the operating budget are capital improvement projects, debt service requirements, transfers, contingency and reserves. ODOT: the Oregon Department of Transportation. Permanent Tax Rate: The dollar-per- thousand figure used to calculate property tax revenues. Under Measure 50, all tax bases in Oregon were converted to a permanent tax rate. This rate, when applied to assessed value of property within a jurisdiction, produces the property tax revenues used to support general city operations. Tigard’s Permanent Tax Rate is $2.5131 per $1,000. Personal Services: Compensation to city employees in the form of salaries, wages and employee benefits. Program Budget: A budget wherein expenditures are based primarily on programs of work and secondarily on character, classification, and performance. Programs within the City of Tigard’s adopted budget include Community Services, Public Works, Community Development, and Policy & Administration. Proposed Budget: City budget developed by the City Manager and submitted to the Budget Committee for their deliberation. Reserved Fund Balance: Those portions of fund balance that are not appropriable for expenditure or that are legally segregated for a specific future use. PAGE 406 - CITY OF TIGARD GLOSSARY OF BUDGET RELATED TERMS SDC: Abbreviation for systems development charges. SDCs are paid by developers and builders to fund expansion of infrastructure necessary due to increased usage. Such charges are collected for sewers, storm drains, streets, parks and schools. Special Assessment: A charge made against certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily those properties. Special Revenue Fund: A fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. Tax Base: Oregon law used to allow cities within the State, with voter approval, to establish a dollar amount of property tax that may be levied on property within the city. Once established, a tax base was allowed to increase by 6% each year without further voter approval. All tax bases in the State were eliminated by Measure 50 and replaced with permanent tax rates. Tax Increment Financing: Financing secured by the anticipated incremental increase in tax revenues, resulting from the redevelopment of an area. TIF: Abbreviation for Traffic Impact Fee. These are revenues from a County-instituted fee on development. It was approved by voters in 1989. Funds are used for highway and transit capital improvements, which provide additional capacity to major transportation systems and recovery of costs of administering the program. The city collects this fee inside its boundaries. Urban Renewal District: In May of 2006, Tigard voters approved the formation of an Urban Renewal District encompassing the downtown and surrounding areas. With the formation of this district, future increases in property tax revenues from property within the district, called tax increment, will provide an important source of funding for a number of needed capital projects. Urban Service Area: The area of unincorporated Washington County within the City of Tigard’s area of interest, but outside Tigard city limits. The city and the county entered into an agreement in which the city provided development services to the area.. Tigard collected all fees and charges from such development and used the funds to pay for the related costs of that service. In FY 2006-07, the city and county terminated the contract and the city no longer provides services to this area. WCCLS: Abbreviation for Washington County Cooperative Library Services. All libraries within Washington County are partially funded through a county-wide serial levy. Funds are distributed twice each fiscal year in accordance with a formula that takes into account circulation, open hours, and collection development. APPENDIX- PAGE 407 ADVISORY COMMITTEES Audit Committee The committee is established by Oregon Local Budget Law. The committee consists of the four elect- ed council members, the Mayor and five members from the community appointed by the City Council for three year terms. The committee is responsible for deliberating on the proposed budget submitted by the City Manager and for sending the approved budget to the City Council for adoption. The com- mittee must also approve tax levies. They meet approximately six times throughout the year, with the majority of those in late April/May to review and approve the proposed budget. Members Jason Snider, Councilor Melody Graeber Peter Hedgecock Chris Middaugh, Alt Budget Committee The committee is established by Oregon Local Budget Law. The committee consists of the four elect- ed council members, the Mayor and five members from the community appointed by the City Council for three year terms. The committee is responsible for deliberating on the proposed budget submitted by the City Manager and for sending the approved budget to the City Council for adoption. The com- mittee must also approve tax levies. They meet approximately six times throughout the year, with the majority of those in late April/May to review and approve the proposed budget. Members Bill Bigcraft, Citizen Zoe Monahan, Alternate John L.Cook, Mayor Julie Plotz, Citizen Don Fisher, Citizen Clifford Rone, Citizen John Goodhouse, Councilor Jason Snider, Councilor Melody Graeber, Citizen Marc Woodard, Councilor Marland Henderson, Councilor City Center Advisory Commission This committee’s role is defined in the City Charter and is to assist the Urban Renewal Commission in developing and carrying out an Urban Renewal Plan. They meet the 2nd Wednesday of the month. Members Carine Arendes Ravi Nagaraj, Alternate Deanie Bush Linli Pao Joyce Casey Lynn Scroggin Laura Fisher Richard Shavey Paul Miller PAGE 408 - CITY OF TIGARD ADVISORY COMMITTEES Neighborhood Involvement Committee The committee is charged with oversight of the Neighborhood Network Program and finding ways to engage residents in the program. This committee meets the 3rd Wednesday of every quarter. Members Jeremy Audritsh Cathy Olson Sue Carver John Pierce Basil Christopher Connie Ramaekers Ed Hobbs Beth Woodard Intergovernmental Water Board The Intergovernmental Water Board consists of five members and was established through intergov- ernmental agreements between the City of Tigard and, Durham, King City and the Tigard Water Dis- trict (TWD). Each jurisdiction is represented by one member and one member is appointed at large. This committee meets the 2nd Wednesday of the month. Members Mark Woodard, Tigard Keith Jehnke, Durham Billie Reynolds, King City Jodie Inman, Member-at-Large Ken Henschel, TWD Library Board The board consists of seven citizen members appointed by the City Council to serve four year terms. The board advises the City Manager and City Council on matters related to library operations. They meet the 2nd Thursday of the month. Members Laura Cadiz Lorena Stewart, Alternate Scott Hancock John Storhm Katie Harris Jan Thenell Linda Monahan Nicci Walker, Alternate Dan Snyder APPENDIX- PAGE 409 ADVISORY COMMITTEES Park and Recreation Advisory Board The board consists of seven voting members, and can hve up to two alternate members, two ex -officio members, and one Youth Advisory Council representative. One ex-officio member represents the Tigard Planning Commission and one represents the Tigard-Tualatin School District 23-J. The board advises the City Council on matters pertaining to the creation, operation, and maintenance of recrea- tion facilities under the jurisdiction of the city. The committee meets the 2nd Monday of the month. Members Barry Albertson, TTSD 23J Rep David Brown, Chair Linda Shaw Holly Polivka Claudia Ciobanu, Vice Chair Wayne Gross Scott Winkels J. Randall Brenner, Alternate Troy Mears Tim Pepper, Alternate Mark Woodard, Council Liaison Planning Commission The commission consists of nine citizen members, appointed by the City Council to serve four year terms. The commission’s responsibilities include assisting the City Council to develop, maintain, up- date and implement the City Comprehensive Plan; to formulate the City Community Investment Pro- gram; and to review and take action on development projects and Development Code provisions dele- gated to the commission. They meet the 1st and 3rd Monday of the month. Members Michael Enloe, Alternate Matthew Muldoon Brian Feeney Christopher Ouellette Calista Fitzgerald, Vice President Jason Rogers, President Bret Lieuallen Donald Schmidt Chris Middaugh Bill Smith Tom Mooney, Alternate Tigard Transportation Advisory Committee (TTAC) Created in 2009, the TTAC is advisory to City Council and staff on transportation matters. The com- mittee provides a venue for citizen involvement in transportation decisions. This committee meets the 1st Wednesday of the month. Members Mark Bogert Ravi Nagaraj, Alternate Timothy Esau, Alternate Don Schmidt Benjamin Gooley Elise Shearer Karen Hughart Jennifer Stanfield Erik Halstead Joseph Vasicek, Alternate Stephanie McKee (TVF&R) Kevin Watkins Elaine Murphy PAGE 410 - CITY OF TIGARD STAFFING SUMMARY APPENDIX- PAGE 411 STAFFING SUMMARY PAGE 412 - CITY OF TIGARD MANAGEMENT/PROFESSIONAL GROUP SALARY SCHEDULE APPENDIX- PAGE 413 MANAGEMENT/PROFESSIONAL GROUP SALARY SCHEDULE PAGE 414 - CITY OF TIGARD MANAGEMENT/PROFESSIONAL GROUP SALARY SCHEDULE APPENDIX- PAGE 415 MANAGEMENT/PROFESSIONAL GROUP SALARY SCHEDULE PAGE 416 - CITY OF TIGARD TIGARD POLICE OFFICERS ASSOC. SALARY SCHEDULE APPENDIX- PAGE 417 OREGON PUBLIC EMPLOYEES UNION SALARY SCHEDULE PAGE 418 - CITY OF TIGARD OREGON PUBLIC EMPLOYEES UNION SALARY SCHEDULE APPENDIX- PAGE 419 OREGON PUBLIC EMPLOYEES UNION SALARY SCHEDULE PAGE 420 - CITY OF TIGARD Cook Park-Tigard, Oregon City of Tigard | ADOPTED BUDGET | FY 2015–2016