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CAFR Report FY 2015-201613125 SW Hall Boulevard | Tigard, OR 97223 | www.tigard-or.gov FISCAL YEAR ENDED JUNE 30, 2016 Comprehensive Annual Financial Report City of Tigard, Oregon ON THE COVER The cover picture was taken by Meghan Verhey. 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 Comprehensive Annual Financial Report For the fiscal year ended, June 30, 2016 Prepared by: City of Tigard – Finance and Information Services Department City of Tigard, Oregon Table of Contents Introductory Section Letter of Transmittal ---------------------------------------------------------------------------------------------------------------------- 1 Certificate of Achievement for Excellence in Financial Reporting ----------------------------------------------------------- 10 Organization Chart ----------------------------------------------------------------------------------------------------------------------- 11 Principal Officials ------------------------------------------------------------------------------------------------------------------------- 12 Financial Section Independent Auditor’s Report -------------------------------------------------------------------------------------------------------- 13 Management’s Discussion and Analysis -------------------------------------------------------------------------------------------- 16 Basic Financial Statements: Government-Wide Financial Statements Statement of Net Position ---------------------------------------------------------------------------------------------------- 31 Statement of Activities --------------------------------------------------------------------------------------------------------- 32 Fund Financial Statements Major Governmental Funds: Balance Sheet ----------------------------------------------------------------------------------------------------------------- 34 Reconciliation of the Balance Sheet to the Statement of Net Position ------------------------------------------------------------------------------------------------------------------- 35 Statement of Revenues, Expenditures, and Changes in Fund Balance ----------------------------------------- 36 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance to the Statement of Activities -------------------------------------------------------- 37 Proprietary Funds: Statement of Net Position ------------------------------------------------------------------------------------------------- 38 Statement of Revenues, Expenses, and Changes in Fund Net Position ---------------------------------------- 39 Statement of Cash Flows --------------------------------------------------------------------------------------------------- 40 Pension Trust Fund: Statement of Fiduciary Net Position ------------------------------------------------------------------------------------ 41 Statement of Changes in Fiduciary Net Position --------------------------------------------------------------------- 42 Notes to Basic Financial Statements ------------------------------------------------------------------------------------------------ 43 Required Supplementary Information: Schedules of Revenues and Expenditures – Budget and Actual: General Fund ------------------------------------------------------------------------------------------------------------------ 83 Gas Tax Fund ------------------------------------------------------------------------------------------------------------------- 84 Notes to Required Supplemental Information: Budget to GAAP Reconciliation ------------------------------------------------------------------------------------------- 85 Schedule of the City’s Proportionate Share of the Net Pension Liability (Asset) ----------------------------------- 86 Schedule of Plan Contributions -------------------------------------------------------------------------------------------------- 87 Other Supplementary Information: Nonmajor Governmental Funds Combining Statements: Combining Balance Sheet -------------------------------------------------------------------------------------------------- 88 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ------------------------ 89 Special Revenue Funds: Combining Balance Sheet – Nonmajor Special Revenue Funds -------------------------------------------------- 90 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ------------------------- 92 Schedules of Revenues and Expenditures – Budget and Actual: City Gas Tax Fund ------------------------------------------------------------------------------------------------------------- 94 Electrical Inspection Fund -------------------------------------------------------------------------------------------------- 95 City of Tigard, Oregon Table of Contents, continued Financial Section, Continued Other Supplementary Information, Continued: Building Fund ------------------------------------------------------------------------------------------------------------------ 96 Criminal Forfeiture Fund --------------------------------------------------------------------------------------------------- 97 Urban Forestry Fund --------------------------------------------------------------------------------------------------------- 98 Parks Utility Fund ------------------------------------------------------------------------------------------------------------- 99 Library Fund ------------------------------------------------------------------------------------------------------------------- 100 Debt Service Funds: Combining Balance Sheet – Nonmajor Debt Service Funds ------------------------------------------------------ 101 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ------------------------ 102 Schedules of Revenues and Expenditures – Budget and Actual: Bancroft Bond Debt Service Fund --------------------------------------------------------------------------------------- 103 General Obligation Debt Service Fund --------------------------------------------------------------------------------- 104 Urban Renewal Agency Debt Service Fund --------------------------------------------------------------------------- 105 Capital Projects Funds: Combining Balance Sheet – Nonmajor Capital Projects Funds -------------------------------------------------- 106 Combining Statement of Revenues, Expenditures and Changes in Fund Balance – Nonmajor Capital Projects Funds ----------------------------------------------- 108 Schedule of Revenues and Expenditures – Budget and Actual: Facility Fund------------------------------------------------------------------------------------------------------------------- 110 Transportation Development Tax Fund ------------------------------------------------------------------------------- 111 Underground Utility Fund ------------------------------------------------------------------------------------------------- 112 Street Maintenance Fee Fund ------------------------------------------------------------------------------------------- 113 Transportation SDC Fund -------------------------------------------------------------------------------------------------- 114 Parks Capital Fund ----------------------------------------------------------------------------------------------------------- 115 Parks Bond Fund ------------------------------------------------------------------------------------------------------------- 116 Parks SDC Fund --------------------------------------------------------------------------------------------------------------- 117 Transportation CIP Fund --------------------------------------------------------------------------------------------------- 118 Urban Renewal Agency Capital Projects Fund ----------------------------------------------------------------------- 119 Proprietary Funds: Enterprise Funds: Schedules of Revenues and Expenditures – Budget and Actual: Sanitary Sewer Fund -------------------------------------------------------------------------------------------------------- 120 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses – Sanitary Sewer Fund ----------------------------------------------------------------- 121 Stormwater Fund ------------------------------------------------------------------------------------------------------------ 122 Water Quality and Quantity Fund--------------------------------------------------------------------------------------- 123 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses – Stormwater Funds ------------------------------------------------------------------- 124 Water Fund ------------------------------------------------------------------------------------------------------------------- 125 Water SDC Fund ------------------------------------------------------------------------------------------------------------- 126 Water CIP Fund -------------------------------------------------------------------------------------------------------------- 127 Water Debt Service Fund -------------------------------------------------------------------------------------------------- 128 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses – Water Funds --------------------------------------------------------------------------- 129 Reconciliation of Budgetary Fund Balance to Generally Accepted Accounting Principles Basis Net Position -------------------------------------------------------------------------- 130 Internal Service Funds: Combining Statement of Net Position --------------------------------------------------------------------------------- 131 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ----------------------- 132 Combining Statement of Cash Flows ----------------------------------------------------------------------------------- 133 City of Tigard, Oregon Table of Contents, continued Financial Section, Continued Other Supplementary Information, Continued: Internal Service Funds, Continued: Schedules of Revenues and Expenditures – Budget and Actual: Central Service Fund -------------------------------------------------------------------------------------------------------- 134 Fleet/Property Management Fund ------------------------------------------------------------------------------------- 135 Insurance Fund --------------------------------------------------------------------------------------------------------------- 136 Other Schedules: Schedule of Bond and Bond Interest Transactions -------------------------------------------------------------------- 137 Schedule of Future Debt Service Requirements of: Local Improvement District Bonds ------------------------------------------------------------------------------------ 138 General Obligation Bonds ----------------------------------------------------------------------------------------------- 139 Bank Loan Payable --------------------------------------------------------------------------------------------------------- 140 Water Revenue Bonds ---------------------------------------------------------------------------------------------------- 141 Safe Drinking Water Revolving Loan Funds ------------------------------------------------------------------------- 142 Statistical Section Net Position by Component ------------------------------------------------------------------------------------------------- 143 Changes in Net Position ------------------------------------------------------------------------------------------------------ 145 Fund Balances of Governmental Funds ---------------------------------------------------------------------------------- 149 Changes in Fund Balances of Governmental Funds ------------------------------------------------------------------- 151 Governmental and Business-Type Revenues --------------------------------------------------------------------------- 153 Governmental and Business-Type Expenses by Function ----------------------------------------------------------- 155 General Governmental Revenues by Sources -------------------------------------------------------------------------- 157 General Governmental Expenditures by Function -------------------------------------------------------------------- 159 Market Value and Assessed Value of Taxable Property -------------------------------------------------------------- 160 Property Tax Rates – Direct and Overlapping Governments ------------------------------------------------------- 161 Principal Property Taxpayers ------------------------------------------------------------------------------------------------ 163 Property Tax Levies and Collections --------------------------------------------------------------------------------------- 164 Special Assessment Collections --------------------------------------------------------------------------------------------- 165 Ratio of Annual Debt Service Expenditures for Long-Term Debt to Total Governmental Expenditures --------------------------------------------------------------------------------------- 166 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita ---------------------------------------------------------------------------------------------- 167 Computation of Direct and Overlapping Debt -------------------------------------------------------------------------- 168 Computation of Legal Debt Margin ---------------------------------------------------------------------------------------- 169 Ratio of Debt by Type --------------------------------------------------------------------------------------------------------- 171 Computation of Water Revenue Bonds Debt Coverage ------------------------------------------------------------- 173 Demographics Statistics ------------------------------------------------------------------------------------------------------ 174 Principal Employers ------------------------------------------------------------------------------------------------------------ 175 Property Value and Construction ------------------------------------------------------------------------------------------ 176 Full-time Equivalent City Government Employees by Function ---------------------------------------------------- 177 Operating Indicators by Function/Program ----------------------------------------------------------------------------- 178 Capital Assets Statistics by Function -------------------------------------------------------------------------------------- 180 Miscellaneous Statistical Data ---------------------------------------------------------------------------------------------- 181 Audit Comments and Disclosure Requirements Independent Auditor’s Report Required by Oregon State Regulations ------------------------------------------ 182 Introductory Section City of Tigard December 20, 2016  Citizens of Tigard  Honorable Mayor   Members of the City Council  We are pleased to submit the Comprehensive Annual Financial Report of the City of Tigard, Oregon, for the  fiscal year ended June 30, 2016, together with the opinion thereon of our independent certified public  accountants, Moss Adams, LLP.  This report is required by Oregon Revised Statutes 297.425 and is prepared  by the Department of Finance and Information Services.  This report presents fairly the financial position of the various funds of the city at June 30, 2016, and the  results of operations of such funds and the cash flows of the proprietary fund types for the year then ended  in conformity with accounting principles generally accepted in the United States of America (GAAP). It is  prepared in conformance with the guidelines for financial reporting developed by the Government Finance  Officers Association of the United States and Canada and the principles established by the Governmental  Accounting Standards Board (GASB), including all effective GASB pronouncements.  This report consists of  management’s representations concerning the finances of the city.  Consequently, management assumes full  responsibility for the completeness and reliability of all of the information presented in this report.  To provide  a reasonable basis for making these representations, management of the city has established a  comprehensive internal control framework that is designed both to protect the city’s assets from loss, theft,  or misuse and to compile sufficient reliable information for the preparation of the city's financial statements  in conformity with GAAP.  Because the cost of internal controls should not outweigh their benefits, the city's  comprehensive framework of internal controls has been designed to provide reasonable rather than absolute  assurance that the financial statements will be free from material misstatements.  As management, we assert  that, to the best of our knowledge and belief, this financial report is complete and reliable in all material  respects.  The city's financial statements were audited by Moss Adams, LLP, a firm of licensed certified public  accountants.  The goal of the independent audit was to provide reasonable assurance that the financial  statements of the city for the fiscal year ended June 30, 2016, are free of material misstatement.  The  independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in  the financial statements; assessing the accounting principles used and significant estimates made by the  management; and evaluating the overall financial statement presentation.  The independent auditors  concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that  the city's basic financial statements for the fiscal year ended June 30, 2016, are fairly presented, in all material  respects, in conformity with GAAP.  The independent auditor's report is included in the financial section of  this report.  1 GAAP require that management provide a narrative introduction, overview, and analysis to accompany the  basic financial statements in the form of Management's Discussion and Analysis (MD&A).  This letter of  transmittal is designed to complement the MD&A and should be read in conjunction with it.  The city's MD&A  can be found immediately following the report of the independent auditors.    Profile of the City of Tigard, Oregon    The City of Tigard is located in southeast Washington County, 9 miles from  downtown Portland, Oregon.  The city is included in the Metro urban growth  boundary and Tigard’s neighboring cities include Beaverton, Lake Oswego,  Tualatin, Durham, Portland, and King City.  State Highway 99W, runs north  and south through the eastern portion of the city as a major commuter  corridor to the City of Portland.  Interstate 5 and Highway 217 connect  Tigard’s residents and workforce to the regional economy of 2.5 million  residents.  Tigard’s major greenway called Fanno Creek connects  neighborhoods to the natural environment and several of the city's parks.  The incorporated area of the city  represents 12.2 square miles and has a population just over 50,000.    The city can extend its corporate limits by annexation which is permitted by state statute.  Since 2012, the city  has annexed over 500 acres of land west of the city that was largely farmland.  Planning for development in  that area, known as River Terrace, began in earnest during fiscal year 2014 and continued in fiscal year 2015  with the adoption of the River Terrace Community Plan, a  long‐range plan to guide public and private investment  and development to aid with transition from farmland to  residential land over the next several decades.   Throughout fiscal year 2016, permitting and construction  phase of development of River Terrace was in full swing.   Full build out is expected to take roughly 20 years.  Upon  completion, River Terrace is expected to be home to  around 6,500 new residents. More information about  Tigard’s newest neighborhood is on the city’s website at:  http://riverterracetigard.com/    The city is governed by an elected mayor and four council  members who comprise the City Council.  The city's  charter established the Mayor/Council form of  government.  Each member of the City Council is elected  at‐large to serve a four‐year term.  The mayor presides at  council meetings and is elected at‐large for a four‐year  term.  The mayor and council provide community  leadership, develop policies to guide the city in delivering  services and achieving community goals, and encourage  citizen awareness and involvement.    The city council appoints a city manager, who is the chief administrative officer of the city.  The city manager  is responsible for ensuring council policies are implemented using resources appropriated by the council to  achieve desired service results in the community.    2 The city provides a full range of municipal services.  These services include police, municipal court, community  planning and development, parks, library, capital improvement planning, administration and central services,  street maintenance, water, and other general public works activities.  The city owns and maintains the  wastewater and storm drainage system within the city limits under an agreement with Clean Water Services.   Fire protection is provided by Tualatin Valley Fire and Rescue.     The legally separate City Center Development Agency (CCDA) is also included in the city’s financial statements  as a component unit.  CCDA is the city’s urban renewal and redevelopment agency with a primary purpose to  revitalize the downtown area.    The city maintains budgetary controls to ensure compliance with legal provisions in the annual appropriated  budget adopted by the City Council.  Activities of all funds are included in the annual adopted budget.  The  level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated  amount) is established by program within each individual fund.    Factors Affecting Financial Condition    The information presented in the financial statements is perhaps best understood when it is considered from  the broader perspective of the specific environment within which the City of Tigard operates.    Local Economy    The city's location in the Portland metropolitan region provides residents with many diverse employment  opportunities.  The majority of Tigard’s residents in the workforce commute to a job somewhere else in the  region.  Every day more than 43,000 residents from somewhere else in the region commute into Tigard for  work and more than 30,000 Tigard residents are employed in Tigard or commute to employment somewhere  else in the Portland metro region.  Locally, the unemployment rate is 4.4% as of June 2016. Employment data  from the Oregon Employment Department shows that 95.4% of Tigard’s 30,000 residents in the labor force  are gainfully employed.     Tigard has a balanced and diverse economy employing more than 43,000 people from around the region.   Wholesale trade, retail trade, and professional services all play a role in Tigard's economy.  Of the 6,524 new  jobs created between 2004 and 2014, 68% were with firms in the professional and administrative services  sector.                                      2010 2011 2012 2013 2014 2015 2016 State of Oregon 10.5% 9.4% 8.5% 8.1% 6.8% 5.5% 4.8% United States 9.6% 9.2% 8.2% 7.8% 6.1% 5.3% 4.9% Portland Metro 9.7% 9.5% 8.0% 7.6% 6.1% 5.4% 4.9% Washington County 9.0% 8.1% 8.2% 6.6% 5.6% 5.0% 4.7% City of Tigard 8.4% 8.1% 8.2% 6.6% 5.4% 4.5% 4.4% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Un e m p l o y m e n t  Ra t e s Fiscal year Unemployment trends 3 In Tigard, the business, management and professional, and the traded sector and supply chain industries  experienced the largest growth in average wages between 2004 and 2014, increasing by 23% and 25%,  respectively.           2016 Summary of Local Statistics     Number of businesses ............................................................................................. 2,852  Median household income (2014) ...................................................................... $62,576  General fund permanent tax rate ................................ $2.5131 per $1,000 of assessed value  Total assessed value (est. 2015/2016) ...................................................... 5,896,119,033       Long‐term Financial Planning    The city prepares a comprehensive long‐term financial forecast annually.  By forecasting and anticipating  financial trends, the city can develop strategies to respond to emerging financial trends.  The city forecasts  operating fund revenues and expenditures over a six‐year period.  The forecast is adjusted as each year's final  results are known and as budgets are prepared for the following year.  In addition, the city also prepares a six‐ year Capital Improvement Plan (CIP) that is also updated every year.  The CIP is developed through a process  separate from, but parallel to the budget process.  The impact on future operating and maintenance costs are  projected from the CIP and then incorporated in the long‐term financial forecast. The city’s adopted fiscal year  2017 – 2022 CIP can be found on line at http://www.tigard‐or.gov/city_hall/cip.php    4 Financial Policies    The City of Tigard has established financial policies to account for public funds, manage municipal finances  wisely and plan adequate funding of services and facilities desired and needed by the public.  The financial  policies are adopted annually by the city council in connection with the budget process.  Consistent application  of these financial policies has helped ensure the city has appropriately recorded and accounted for  transactions in our financial statements.  The adopted fiscal year 2016 budget document includes the city’s  financial policies noted in the appendix starting on page 407.  The policies can be found on line at:  http://www.tigard‐or.gov/document_center/City_Budget/appendix.pdf    The goals of Tigard’s fiscal policies are:     To enhance the City Council’s policy‐making ability by providing accurate information on program and  operating costs.   To assist sound management of the city government by providing accurate and timely information on  current and anticipated financial conditions.   To provide sound principles to guide important decisions of the council and management which have  significant fiscal impact.   To set forth operational principles, which minimize the cost and financial risk of the city’s government  consistent with services, desired by the public.   To employ revenue policies which prevent undue or unbalanced reliance on any one source, distribute  the cost of municipal services fairly, and provide adequate funds to operate desired programs.   To provide and maintain essential public facilities, utilities, infrastructure and capital equipment.   To protect and enhance the city’s credit rating.   To insure that all surplus cash is prudently invested in accordance with the investment policy adopted  by the council to protect city funds and realize a reasonable rate of return.    Major initiatives    The Tigard City Council meets annually in connection with the budget process to establish goals.  Council goals  comprise high‐priority tasks or programs that the City Council intends to complete or initiate during the year,  though attainment of these goals may take several years.  The goals are based on departmental needs, bi‐ annual community survey results and City Council priorities.  In the goal setting meeting, the City Council  reviews information and develops its annual and long‐term goals.  Council goals set the priorities for city  government and are incorporated into departmental work plans.  For 2015‐2017 Council established goals for  the city as follows:   5 1. Provide Recreation Opportunities for the People of Tigard    Objectives  Estimated Timeline  Establish city recreation program in 2015‐16 adopted budget    Recreation clearinghouse and program guide   Grants & scholarships   Recreation coordinator – staff position   Programs and classes (beginning Year 2)   Outdoor events (Year 2)   Indoor events (Year 3)  Completed July 2015    Spring 2016  Spring 2016  2017  Explore feasibility of partnership opportunities, including THPRD, YMCA,  TTAD, TTSD, other city, or non‐profit opportunities; establish facility  partnership if feasible.  December 2016    Consider a voter‐approved measure to fund recreation. November 2016  Complete the city’s facilities strategic plan to identify future facility  needs for a recreation/community center. September 2016    2. Make Downtown Tigard a Place Where People Want to Be    Objectives Estimated Timeline  Support residential and mixed use development in walkable and transit‐ supported areas by completing the Ash Ave/Burnham Redevelopment  project.  Completed in 2015  Increase walkable access to open space by advancing plans for new  downtown open space, including the Tigard Street Trail plaza, the Fanno  Creek Overlook, and a Main Street plaza, including programming.  December 2016  Strengthen downtown’s identity by completing gateway improvements  and install art at both Main Street entrances.  Completed in 2015  Support walkability by completing two Strolling Street projects. Completed in 2015  Secure brownfields cleanup grant (if eligible) to facilitate infill or open  space development enabling a more walkable and interconnected  downtown.  Spring 2016  Promote downtown as a place to shop, dine and recreate through  communications and support of Tigard Downtown Alliance activities.  Summer 2016     6 3. Adopt and Begin Implementation of Tigard Triangle Strategic Plan    Objectives Estimated Timeline  Tigard Triangle Strategic Plan   Plan Development   Council consideration and adoption (code and plan amendments)     Completed Spring 2015  September 2016  Consider Lean Code and Plan Amendments   Zoning   Community Development Code   Transportation System Plan   Parks and Trails Master Plans  September 2016  Infrastructure Planning   Citywide Stormwater Master Plan  ‐ Triangle Stormwater Implementation Plan   Streetscape Design Plan   72nd Avenue Study (pending CIP approval)    June 2017  FY 2017‐18  August 2016  June 2017  Development of Funding Tools   Urban Renewal   ‐ Plan Development  ‐ Plan Adoption  ‐ Public Vote   LID – consider continuance of existing   Vertical Housing Development Zone   Tigard Enterprise Zone      October 2016  December 2016  May 2017  April 2016  Completed 2014  Completed 2014  4. Enable Groundbreaking in River Terrace by Summer 2015    Objectives Estimated Timeline  Infrastructure Financing Project (River Terrace SDCs) Completed  River Terrace Community Plan Implementation Completed  Permitting   Early assistance for land use applications (ongoing)   Land use applications   Building and site permits    Completed Winter 2015  and ongoing into   2016  Public Facilities   Clean Water Services pump station   City of Tigard downstream stormwater conveyance analysis   River Terrace Stormwater Master Plan Amendments (updates,  direction, and Council adoption)    Transportation Utility Fee adopted   Stormwater Utility Fee adopted   City of Tigard 550‐Zone Water Improvements     Winter 2016   Completed     Spring 2016   Spring 2016  Summer 2016  Summer 2016              Strategic Plan Implementation   Achieve walkability aims of Strategic Plan in River Terrace by  following through on pedestrian planning efforts    Summer 2016  7 5. Expand Opportunities to Engage People in the Community   Objectives Estimated Timeline  Citywide Communications Plan (will include suggested engagement  improvements)  Completed Spring 2015    Continue Council outreach meetings Quarterly throughout  each year  Seek input on and outreach about the sidewalk connection program Prepare for May 2016  Community education; identify timing and content of measures for  voter approval June 2016  Organize community engagement through increased work with  Neighborhood Networks, in‐person and online forums June 2016    6. Define and Establish the City’s Role in Addressing Homelessness    Issues for Further Council Discussion      SW Corridor – Mayor will brief Council during Council Liaison reports    Pacific Highway/congestion and aesthetics (May 2016)   Annexation (Incentives Resolution in February, discussion June 2016)   Charter review (July 2016)   Future possible ballot measures (April 2016)    Strategic Plan Updates   Sustainability (August 2016)    Aligning with the goal of making downtown Tigard a place where people want to be (goal #2 above), in  May 2006, the voters passed Tigard’s Urban Renewal ballot measure to establish a funding base to  implement the Tigard Downtown Improvement Plan.  The formation of the City Center Development  Agency (CCDA, an urban renewal district) sends a clear message that the city is now financially committed  to carrying out its Downtown Plan and will be in a position to support investments there.    Although it will take time for tax revenues to accumulate under the tax increment financing process, it is  anticipated that enough funding will be available for $22 million in public improvements for downtown.   The implementation of all of the projects such as streets, parks, plazas, a public market and performing  arts center will take up to 20 years to accomplish but citizens are already seeing improvements.  As noted  above, the City Council has added downtown redevelopment to their current goals.  In fiscal year 2016,  CCDA sold three contiguous properties to a private developer for residential development in the  downtown area.  Also, in fiscal year 2016, CCDA purchased downtown properties and the US EPA awarded  CCDA with two brownfields grants to help clean up the properties.  For more information on CCDA’s  brownfields program, visit: www.tigard‐or.gov/brownfields    In connection with goal #3 above, Adopt and Begin Implementation of Tigard Triangle Strategic Plan, the  city has drafted a Tigard Triangle Urban Renewal Plan and has been working towards phases of the  strategic plan.  In May of 2017 the city intends to place the Urban Renewal plan on the citywide ballot for  approval. More information on the Tigard Triangle can be found at:   www.tigard‐or.gov/tigard_triangle.php  8 A major initiative that is nearing completion and meets multiple goals above is the City of Tigard and City  of Lake Oswego water partnership project to upgrade and expand existing water facilities to serve  customers in both communities.  In 2008 the cities of Lake Oswego and Tigard formally endorsed a  partnership agreement for sharing drinking water resources and costs.  The agreement creates a reliable  water system that delivers high‐quality drinking water from the Clackamas River to the communities of  Lake Oswego and Tigard. The new water supply system replaces aging, vulnerable, at‐capacity  infrastructure with a cutting‐edge system designed to the highest seismic resiliency standards. The new  system also enhances emergency water supply reliability regionally by providing access to Lake Oswego’s  and Tigard’s combined storage as well as other supply sources.  In June of 2016 the city switched over to  its new water source and treatment plant.    More information about the city’s water system is on the city’s website at www.tigard‐or.gov/water.  Additional information on the partnership can be found at www.lotigardwater.org  and the city’s  partnership web page at www.tigard‐or.gov/water_partnership.php.  A twitter account @LOTWater  allows citizens to stay connected and informed on progress on the partnership.    Awards and Acknowledgements     The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence  in Financial Reporting to the City of Tigard for its Comprehensive Annual Financial Report (CAFR) for the  fiscal year ended June 30, 2015.  This was the 30th consecutive year that the city has received this  esteemed award.  In order to be awarded a Certificate of Achievement, the government published an  easily readable and efficiently organized CAFR.  This report satisfied both GAAP and applicable legal  requirements.    A Certificate of Achievement is valid for a period of one year only.  We believe that our current CAFR  continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the  GFOA to determine its eligibility for another certificate.    In addition, the city also received the GFOA's Distinguished Budget Presentation Award for its annual  budget for fiscal year 2016.  This was the 28th consecutive year that the city has received this prestigious  award.  In order to qualify for the Distinguished Budget Presentation Award, the city's budget document  was judged to be proficient in several categories, including as a policy document, a financial plan, an  operations guide, and a communications device.  The city has submitted its fiscal year 2016 budget  document and believes that it meets the Distinguished Budget Presentation Award’s requirements.    The preparation of this report was made possible by the dedicated service of the staff of the Financial and  Information Services department.  Each member of the department has our sincere appreciation for the  contributions made in the preparation of this report.  Special recognition should be given to the financial  operations staff for their work in preparing this document.  Credit also must be given to the Mayor and  City Council for their unfailing support for maintaining the highest standards of professionalism in the  management of the City of Tigard's finances.    Respectfully submitted,       Marty Wine                       Toby LaFrance  City Manager      Director of Finance and Information Services  9 This page intentionally left blank. 10 City of Tigard, Oregon Citywide Organizational Chart as of July 1, 2016 Mayor & City Council City Attorney CITY OF TIGARD Human Resources CD Planning Building Economic Development 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 WorksPolice City Manager Financial Operations Administration Administration Risk Management City Manager’s Office Administrative Services Design & Communications City Recorder/ Records Municipal Court Street Lights & Signals Utility Billing Contracts & Purchasing CITIZENS OF TIGARD Fleet Maintenance Property Management 11 City of Tigard, Oregon Principal Officials as of July 1, 2016 Elected Officials Name Term Expires Mayor John Cook December 31, 2018 Councilor Jason Snider December 31, 2016 Councilor John Goodhouse December 31, 2018 Councilor Marland Henderson December 31, 2016 Councilor Marc Woodard December 31, 2018 Appointed Officials Name Title Marty Wine City Manager Toby LaFrance Director of Finance and Information Services All may be reached at: 13125 SW Hall Boulevard Tigard, OR 97223 Legal Counsel Jordan Ramis PC Two Centerpointe Drive, 6th Floor Lake Oswego, OR 97035 12 This page intentionally left blank. Financial Section   REPORT OF INDEPENDENT AUDITORS City Council City of Tigard, Oregon Tigard, Oregon Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business‐ type activities, each major fund and the aggregate remaining fund information of the City of Tigard, Oregon (the City), as of June 30, 2016, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business‐type activities, each major fund and the aggregate remaining fund information of the City as of June 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 13   Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management’s discussion and analysis, budgetary comparison schedules for the General Fund and Gas Tax Fund, the schedule of proportionate share of the net pension liability and the schedule of plan contributions (collectively, the required supplementary information) on pages 16 through 30 and 83 through 87, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the management’s discussion and analysis, the schedule of proportionate share of the net pension liability and the schedule of plan contributions on pages 16 through 30, and pages 86 through 87 in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on this information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The budgetary schedules for the General Fund and Gas Tax Fund described above on pages 83 through 85 are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The budgetary schedules for the General Fund and Gas Tax Fund have been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary schedules for the General Fund and Gas Tax Fund are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements, budgetary schedules, and other financial schedules on pages 88 to 142 are presented for purposes of additional analysis and are not a required part of the basic financial statements. 14 This supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. This information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary schedules, combining and individual nonmajor fund financial statements, and other financial schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. The introductory section and statistical information have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. Report on Other Legal and Regulatory Requirements In accordance with the Minimum Standards of Audits of Oregon Municipal Corporations, we have issued our report dated December 20, 2016 on our consideration of the City’s compliance with certain provisions of laws and regulations, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing and not to provide an opinion on compliance. For Moss Adams LLP Portland, Oregon December 20, 2016 15 This page intentionally left blank. City of Tigard, Oregon  Management’s Discussion and Analysis    As management of the City of Tigard, we offer readers this narrative overview and analysis of the financial  activities of the City of Tigard for the fiscal year ended June 30, 2016.  It focuses on significant financial issues,  major financial activities, and resulting changes in financial positions, as well as economic factors affecting the  city.  This Management’s Discussion and Analysis (MD&A) is based on currently known facts, decisions, and  conditions that existed as of the date of the independent auditor’s report.      We encourage readers to consider the information presented here in conjunction with the transmittal letter  at the front of this report and the city’s financial statements which follow this discussion and analysis.    Financial Highlights     Assets and deferred outflows of resources of the city exceeded its liabilities and deferred inflows of  resources at the close at June 30, 2016 by $355,934,103 (net position).  Of this amount, $9,074,010 is  restricted for transportation construction, maintenance and utility undergrounding, $5,443,698 is  restricted for park development and improvements, $5,517,329 is restricted for water system  construction and improvements, $8,744,672 is restricted for debt service, $3,030,649 is restricted for  building development plan review and inspection, $476,893 is restricted for library capital  improvements and $385,375 is restricted for law enforcement equipment.  $32,871,367 is  unrestricted net position may be used to meet the city’s ongoing obligations to citizens and creditors  and $290,390,110 is for net investment in capital assets.      The city’s total net position had a net increase of $23,404,224 or 7.0% from the June 30, 2015 net  position.  Governmental activities net position increased by $11,403,568, or 5.3%. The business‐type  activities net position increased by $12,000,656 or 10.2%.  The reasons for the increase are noted in  the financial analysis section of the MD&A.     The city’s governmental funds reported combined ending fund balances of $36,126,538, an increase  of 8,059,768 or 28.7% from fiscal year 2015.  Of the combined ending governmental fund balances,  $12,353,341 or approximately 34.2% is available for spending at the city’s discretion subject to council  approved policies and actions.     At the end of the fiscal year, unassigned fund balance for the General Fund was $12,970,670, up  $855,234 over the prior year.       The city’s total debt decreased by $(3,087,456) or 1.8% from fiscal year 2015.      Overview of the Financial Statements    In addition to this discussion and analysis, the financial section of this annual report contains the basic financial  statements, required supplementary information, and the combining statements of the non‐major funds and  schedules demonstrating legal compliance.      The basic financial statements also include notes that explain the information in the financial statements and  provide more details.  The statements are followed by the required supplementary information section that  supports the information in the financial statements.    Government‐wide financial statements     The government‐wide financial statements are designed to provide readers with a broad overview of the city's  finances, in a manner similar to a private‐sector business.  16 City of Tigard, Oregon  Management’s Discussion and Analysis    The Statement of Net Position presents information on all of the city’s assets and deferred outflows of  resources and liabilities and deferred inflows of resources, with the difference reported as net position.  Over  time, increases or decreases in net position may serve as a useful indicator of whether the financial position  of the city is improving or deteriorating.      The Statement of Activities presents information showing how the city's net position changed during the most  recent fiscal year.  All changes in net position are reported as soon as the underlying event giving rise to the  change occurs, regardless of the timing of related cash flows.  Thus, revenues and expenses are reported in  this statement for some items that will result in cash flows in a future fiscal period.  Examples of such items  include earned, but uncollected property taxes, and earned, but unused compensated absences.    Both of the government‐wide financial statements distinguish functions of the city that are principally  supported by taxes and intergovernmental revenues (governmental activities) from other functions that are  intended to recover all or a significant portion of their costs through user fees and charges (business‐type  activities).    The governmental activities of the city include the following:     Community services, police, library, and social services   Public works, including parks and recreation   Community development, current and long‐range planning   Policy and administration    The business‐type activities of the city include the following:     Sanitary sewer   Stormwater   Water    The government‐wide financial statements can be found on pages 31‐33 of this report.    Fund Financial Statements are designed to display compliance with finance‐related legal requirements  demonstrated by the use of fund accounting.  A fund is a grouping of related accounts that is used to maintain  control over resources that have been segregated for specific activities and objectives.  The funds of the city  can be divided into the following categories: governmental funds, proprietary funds, and a fiduciary fund.    Governmental Funds are used to account for essentially the same functions reported as governmental  activities in the government‐wide financial statements.  However, unlike the government‐wide financial  statements, governmental fund financial statements focus on near‐term inflows and outflows of available  resources, as well as on balances of available resources at the end of the fiscal year.  Such information may  be useful in evaluating a government's near‐term financial capability.      Because the focus of governmental funds is narrower than that of the government‐wide financial statements,  it is useful to compare the information presented for governmental funds with similar information presented  for governmental activities in the government‐wide financial statements.  By doing so, readers may better  understand the long‐term impact of the city's near‐term financing decisions.  Both the governmental fund  Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balance  provide a reconciliation to facilitate this comparison between governmental funds and governmental  activities.  17 City of Tigard, Oregon  Management’s Discussion and Analysis    The city maintains 22 individual governmental funds. Information is presented separately in the governmental  fund Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances for those  funds that are considered significant (major) to the city taken as a whole.  These financial statements report  two major funds:  General Fund and Gas Tax Fund.  Data from the other 20 governmental funds are combined  into a single, aggregated presentation.  Individual fund data for each of these non‐major governmental funds  is provided in the form of combining statements elsewhere in this report.      The city adopts an annual appropriated budget for all of its governmental funds.  A budgetary comparison  statement has been provided for each fund individually to demonstrate compliance with their budgets.    The basic governmental fund financial statements can be found on pages 34‐37 of this report.    Proprietary Funds are used to account for a government's business‐type activities.  The city maintains two  different types of proprietary funds ‐ enterprise funds and internal service funds.  Enterprise funds are used  to report the same functions presented as business‐type activities in the governmental‐wide financial  statements.  The city uses enterprise funds to account for its sanitary sewer, stormwater, and water  operations.  Internal service funds are an accounting device used to accumulate and allocate costs internally  among the city's various functions.  The city uses internal service funds to account for fleet and property  maintenance, risk management, design and communication, finance and accounting, and other management  services.      The city reports all three of the enterprise funds as major funds.  These funds are the Sanitary Sewer Fund,  the Stormwater Fund, (which consists of the budgetary Stormwater and the Water Quality/Quantity Funds),  and the Water Fund, (which includes the budgetary Water, Water SDC, Water CIP and Water Debt Service  Funds).  However, for budgetary and legal purposes these funds are accounted for separately.  Conversely, all  internal service funds are combined into a single, aggregated presentation in the proprietary fund financial  statements.  Individual fund data for the internal service funds is provided as other supplementary  information.    The city also adopts an annual appropriated budget for all proprietary funds.  To demonstrate compliance  with the budget, budgetary comparison statements have been provided for the enterprise funds as other  supplementary information on pages 120‐129 of this report.  Budgetary comparisons for the internal service  funds are provided on pages 131‐136 of this report.    The proprietary fund financial statements can be found on pages 38‐40 in the basic financial statements.    Fiduciary Funds are used to account for assets held in a trustee or agency capacity for others and therefore  cannot be used to support the government's own programs.  The city has a pension trust fund that accounts  for employee defined contribution plans.  The accounting used for the fiduciary fund is much like that used  for the proprietary funds.  No budget is adopted for the fiduciary fund in accordance with Oregon Local Budget  Law. The fiduciary fund financial statements can be found on page 41‐42 in the basic financial statements.    Notes to the Basic Financial Statements provide additional information that is essential to a full  understanding of the data provided in the government‐wide and fund financial statements.  The notes to the  financial statements can be found on pages 43‐82 of this report.    Required Supplementary Information includes Schedule of Revenues and Expenditures – Budget and Actual  for the General Fund and the Gas Tax fund.  The Budget to GAAP reconciliation for the General Fund is also  18 City of Tigard, Oregon  Management’s Discussion and Analysis    included.  This section also presents the schedule of the city’s proportionate share of the net pension liability  (asset) and the schedule of contributions.  Required supplementary information can be found beginning on  page 83 of this report.    The combining statements referred to earlier in connection with non‐major governmental funds and business‐ type funds are presented immediately following the required supplementary information.  Combining and  individual fund statements and schedules can be found on pages 88‐136 of this report.    Government‐wide Financial Analysis – Statement of Net Position    Net position:  As noted earlier, net position may serve over time as a useful indicator of the city's financial  position.  In the case of the city, assets and deferred outflows of resources exceeded liabilities and deferred  inflows of resources by $355,934,103 at June 30, 2016.    The largest portion of the city's net position, approximately 82%, is its investment in capital assets (e.g., land,  construction in progress, buildings, roads, sewers, stormwater facilities, etc.), net of accumulated depreciation  and any related debt used to acquire those assets that is still outstanding.  The city uses these capital assets  to provide services to citizens; consequently, these assets are not available for future spending.  Although the  city's investment in capital assets is reported net of related debt, it should be noted that the resources needed  to repay this debt must be provided from other sources, since capital assets themselves cannot be used to  liquidate these liabilities.    The city’s restricted net position in the amount of $32,672,626 or approximately 9.2% represents resources  that are subject to external restrictions on how they may be used.  By definition, the city cannot remove these  restrictions as they are imposed by parties outside of the city.  The remaining balance is unrestricted net  position in the amount of $32,871,367 or approximately 9.2% of total net position.  At the end of the current  year, the city is able to report positive balances in all categories of net position for governmental and business‐ type activities.    Total net position increased by $23,404,224 or 7% during the current fiscal year.  Total assets for governmental  activities increased by $9,436,269, or approximately 4%.  Noteworthy changes included reporting changes  from a net pension asset to a net pension liability and significant changes in the deferred inflows and outflows  of resources related to pensions.  The net pension asset/liability decreased by $6,356,471 due to the accrual  recorded pursuant to GASB Statement No. 68, Accounting and Financial Reporting for Pensions.  An increase  of $350,924 or 43% in deferred outflows related to pensions as fiscal year 2016 represented the second year  of GASB Statement No. 68.  Capital assets, land and construction in progress noted a decrease of $3,724,689  as significant multi‐year transportation projects were completed and put into service in fiscal year 2016.      Governmental activities liabilities increased by $543,641 or approximately 1%.  Noteworthy changes include  a decrease in accounts payable and accrued liabilities of $2,162,667 or 38% due to fewer outstanding invoices  at fiscal year‐end 2016 related to significant transportation infrastructure improvements, specifically  improvements to the intersection of 72nd Avenue and Dartmouth Street.  Also, as described above, the city  reported a net pension liability in fiscal year 2016 of $4,678,602 as compared to a net pension asset of  $1,677,869 reported in fiscal year 2015.     Governmental activities reported a decrease of $2,160,016 or 67% for deferred inflows of resources related  to pensions.  As previously discussed, fiscal year 2016 represented the second year of implementation of GASB  19 City of Tigard, Oregon  Management’s Discussion and Analysis    Statement No. 68.  The net pension asset / liability may fluctuate and effect the related deferrals given the  various factors impacting the actuarial valuation.    Business‐type activities total assets increased by $4,565,469 or approximately 1.7% over the prior year.  Land  and construction in progress increased by $27 million or 20% over the prior year for the ongoing Tigard Water  Supply Partnership Project with Lake Oswego.  The Lake Oswego‐Tigard Water Partnership was formed in  2009 to acquire a permanent source of raw water and treatment facilities for potable water as well as making  capital improvements for storage and transmission facilities.  Additionally, cash and investments decreased  by $29 million from fiscal year 2015 directly related to the spending on the Lake Oswego‐Tigard Water  Partnership.    Total long‐term debt for business‐type activities decreased by $737,850 or approximately 0.5% which  primarily represents amortization of the bond premium on the water revenue bond issues.  The water revenue  bonds were issued in fiscal years 2012 and 2015 for the Lake Oswego‐Tigard Water Partnership.      City of Tigard – Summary of Net Position       Governmental   Activities   Business‐Type   Activities   Total   2016  2015  2016  2015  2016  2015  Current and other assets $   45,652,598 $   40,544,342 $  50,280,345 $  74,546,860 $  95,932,943  $ 115,091,202 Capital assets 218,225,516 213,897,503  228,453,349  199,621,365 446,678,865  413,518,868     Total assets 263,878,114 254,441,845  278,733,694  274,168,225 542,611,808  528,610,070 Deferred outflows of resources    related to pension 1,170,397 819,473  ‐   ‐1,170,397  819,473        Current and other liabilities         9,147,544 11,001,251 10,863,362 15,616,996 20,010,906  26,618,247 Long‐term liabilities outstanding 28,264,022 25,866,674 138,495,582 141,177,135 166,759,604  167,043,809    Total liabilities 37,411,566 36,867,925  149,358,944  156,794,131 186,770,510  193,662,056 Deferred inflows of resources    related to pension         1,077,592 3,237,608  ‐   ‐ 1,077,592  3,237,608   Net position:     Net investment in capital assets 195,142,143 189,748,234 95,247,967 84,867,665 290,390,110  274,615,899  Restricted 20,392,998 12,376,136 12,279,628 11,250,300 32,672,626  23,626,436 Unrestricted 11,024,212 13,031,415 21,847,155 21,256,129 32,871,367  34,287,544    Total net position $ 226,559,353 $ 215,155,785  $ 129,374,750  $ 117,374,094 $ 355,934,103  $ 332,529,879                   20 City of Tigard, Oregon  Management’s Discussion and Analysis    City of Tigard – Summary of Changes in Net Position        Governmental   Activities   Business‐Type   Activities   Total  Revenues 2016  2015  2016  2015  2016  2015  Program revenues:       Charges for services   $   9,544,047   $   7,153,848 $  25,768,181 $  23,477,213    $  35,312,228      $  30,631,061   Operating grants and contributions 7,756,718 6,508,556 ‐ ‐7,756,718  6,508,556   Capital grants and contributions 11,785,524 2,021,422  5,806,590  2,066,696 17,592,114  4,088,118 General revenues:       Property taxes 17,177,591 16,523,361 ‐ ‐17,177,591  16,523,361   Franchise fees 5,734,540 5,687,456 ‐ ‐5,734,540  5,687,456   Unrestricted intergovernmental revenues 2,840,903 3,004,341 127,148 ‐2,968,051  3,004,341   Interest 688,087 434,401 302,890 131,485 990,977  565,886   Loss on disposition of capital assets ‐(25,998)‐ ‐‐  (25,998)   Miscellaneous 228,779  273,152 193,645 177,903 422,424  451,055      Total revenues 55,756,189 41,580,539  32,198,454  25,853,297 87,954,643  67,433,836      Expenses        Community services 25,089,790 18,542,379 ‐  ‐25,089,790  18,542,379    Public works 10,865,800 10,408,399 ‐  ‐10,865,800  10,408,399    Community development 7,030,142 4,688,686 ‐  ‐7,030,142  4,688,686    Policy and administration 1,226,166 1,323,435 ‐ ‐1,226,166  1,323,435    Interest on long‐term debt 958,204 1,185,507 ‐ ‐958,204  1,185,507    Sewer ‐‐2,536,988 2,518,708 2,536,988  2,518,708    Storm water ‐‐2,123,162 2,077,589 2,123,162  2,077,589    Water ‐‐14,720,167 10,839,483 14,720,167  10,839,483      Total expenses 45,170,102 36,148,406 19,380,317 15,435,780 64,550,419  51,584,186    Revenues over (under) expenses 10,586,087 5,432,133 12,818,137 10,417,517 23,404,224  15,849,650    Transfers in (out) 817,481 (56,368) (817,481) 56,368 ‐   ‐ Change in net position 11,403,568 5,375,765 12,000,656 10,473,885 23,404,224  15,849,650 Beginning net position 215,155,785 209,780,020 117,374,094 106,900,209 332,529,879  316,680,229 Ending net position   $ 226,559,353   $ 215,155,785 129,374,750  $ 117,374,094 $  355,934,103  $  332,529,879     Expenses and Program Revenues – Governmental activities – June 30, 2016     $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 Community services Public works Community development Policy and administration Interest on long‐ term debt Revenues Expenses 21 City of Tigard, Oregon  Management’s Discussion and Analysis    Governmental Activities    Governmental activities increased the city’s net position by $11,403,568.  Noteworthy reasons for the change  from the prior year are as follows:     Charges for services for Community Development increased by $1,644,232 or 54% from 2015.  The  increase is primarily due to significant increases in permitting fees related to various development  going on around the city including the River Terrace neighborhood.       Total operating grants and contributions constitutes a significant amount of funding for the city in the  amount of $7,756,718.  There was an increase of $1,248,162 or 19.2% over fiscal year 2015.  Public  Works category for gas tax revenues increased from 2015.  As the price per gallon of gas dropped  throughout the state during fiscal year 2016, consumption and the related revenues increased.   Also,  the Community Services category includes the city’s share of the Washington County Cooperative  Library Services (WCCLS) tax levy which was up slightly over the prior year.  In addition, a sidewalk  improvement project funded by a Community Development Block Grant which was awarded in fiscal  year 2015, did not ramp up until fiscal year 2016.     Total capital grants and contributions increased by $9,764,102 over the prior year primarily due to  private development contributions for improvements to city infrastructure assets such as streets and  right‐of‐way.      Franchise fee revenue totaled $5,734,540 in fiscal year 2016, which was a slight increase of $47,084  or approximately 1% from fiscal year 2015.  Franchise fees are charged to public utilities for the use  of the public right‐of‐way.  Franchised activities paying the fee include electricity, natural gas,  telecommunications, cable television, water, sewer and solid waste haulers.         Property taxes constitute approximately 30% of total governmental revenues and continues to be a  major source of revenue for the funding of city programs.  Property tax revenues are up by $654,230  or approximately 4% over 2015 primarily due to an increase in collections on prior year property tax  revenues.  Oregon has a “rate‐based” system in which property taxes are expressed in a dollar amount  per thousand dollars of assessed value.  The City of Tigard’s permanent tax rate is $2.5131 per  thousand dollars of assessed value.  The money raised by this levy is available for general purposes.    The permanent rate is multiplied by the assessed value each year to arrive at the tax authority for that  year.  Assessed value growth is limited to a maximum 3 percent per year, plus a pro‐rated share of  new construction and annexations.  Assessed value cannot exceed real market value.    General Obligation (GO) debt service levies are calculated to produce enough tax revenues that (when  combined with other resources such as interest earnings and fund balance) will be enough to pay debt  service due on these voter‐approved bonds.  On November 2, 2010, voters approved a bond measure  in the amount of $17.0 million for acquisition and development of park land.  These bonds were sold  on February 3, 2011 to Wells Fargo Bank, National Association.  Also on that date, the city refunded  $9.0 million of outstanding general obligation bonds that were approved on May 21, 2002, by voters  to build a new library.  Taxes collected through the tax levy repay the bonded debt.     Expenses for Community Services increased by $6,547,411 or 35% over fiscal year 2015.  The increase  is directly related to the change from reporting a net pension asset in fiscal year 2015 to a net pension  liability in fiscal year 2016.  Pension expense for the city’s sworn officers was almost $4 million in 2016,  a significant change from the reported $2 million in pension income in fiscal year 2015.  22 City of Tigard, Oregon  Management’s Discussion and Analysis     Expenses for Community Development increased by $2,341,456 or 50% over the prior fiscal year.  This  increase is primarily due to a disposition and development agreement entered into by the city’s urban  renewal agency and a private developer, whereby the urban renewal agency paid $1.65 million in  system development charges due to the city in order to attract the developer to the city’s urban  renewal district.    Revenues by Source – Governmental Activities ‐ June 30, 2016      Business‐type Activities    Business‐type activities increased the city’s net position by $12,000,656.  The primary reasons for the current  year’s increases are:     Charges for services represent approximately 80% of total business‐type revenues and are composed  of fees that are charged to all users for services provided such as water, sanitary sewer, and  stormwater.  The sanitary and stormwater fees are established by Clean Water Services (CWS) and  are set by the agency each year.  The city council, through an intergovernmental agreement with other  water system participants, sets the water rates.  Total charges for services increased by $2,290,968 or  10% over fiscal year 2015, with the largest increase in water revenues.       Water charges for services increased by $2,113,852 or 11% over the prior fiscal year primarily due to  an increase in water rates that went into effect on January 1, 2016.  In August 2008 the city entered  into an intergovernmental agreement with the City of Lake Oswego in which the City of Tigard will  share the cost of upgrading and expanding Lake Oswego’s water treatment plant in return for a long‐ term water contract.  Tigard City Council adopted a 5‐year water rate package, with increases of 3.25%  beginning in January 2016 through January 2019.  These scheduled increases will fund smaller projects  without the need to borrow additional funds.     Sanitary sewer rates have been traditionally adjusted by CWS annually with the increase in revenues  being dedicated to debt service requirements for treatment plant expansions made by the agency.     Capital grants and contributions increased by $3,739,894 over fiscal year 2015.  The increase is directly  attributable to capital contributions for stormwater and sanitary sewer lines related to various private  developments completed in fiscal year 2016.  Charges for  services 17% Operating  grants and  contributions 14% Capital grants  and  contributions 5% Taxes 31% Interest 1% Franchise fees 10% Misc 6% 23 City of Tigard, Oregon  Management’s Discussion and Analysis     Total expenses of $19,380,317 was up by $3,944,537 or approximately 26% from the prior fiscal year.   The increase is primarily due to an additional of $2.3 million in interest expense related to the water  revenue bonds.  In fiscal year 2015, the city issued $30.8 million in water revenue bonds and interest  on the debt did not come due until fiscal year 2016.  In addition, contracted water purchases from the  City of Portland increased by 18% or approximately $900,000 from the prior year.      Expenses and Program Revenues – Business‐type Activities – June 30, 2016        Financial Analysis of the City's Funds    As noted earlier, the city uses fund accounting to ensure and demonstrate compliance with finance‐related  legal requirements.    Governmental Funds    The focus of the city's governmental funds is to provide information on near‐term inflows, outflows, and  balances of spendable resources.  Such information is useful in assessing the city's financing requirements.  In  particular, unassigned fund balance may serve as a useful measure of the city's net resources available for  spending at the end of the fiscal year.    As of the end of the fiscal year 2016, the city's governmental funds reported combined ending fund balances  of $36,126,538 an increase of $8,059,768 over the prior year.  Approximately 39% or $13,951,114 of this total  amount constitutes assigned and unassigned fund balances, which is available for spending at the  government’s discretion.  The restricted fund balance is $18,250,934 or 51% of the total fund balance.  Most  of the restricted fund balance is dedicated for park acquisition and development or for street maintenance  and improvements.  Other restricted resources include building inspection, library improvements, Police  services and future debt service.  The remainder of fund balance is either committed for resources constrained  on use by the city council via a city ordinance or a council resolution or is nonspendable to indicate that it is  not available for discretionary spending, such as advances to other funds and prepaids.    General Fund    The General Fund is the chief operating fund of the city.  At the end of the fiscal year 2016, the unassigned  fund balance was $12,970,670 or approximately 95% of the total fund balance of $13,634,924.  As a measure  of the General Fund’s liquidity, it may be useful to compare fund balance to total fund expenditures.   Unassigned fund balance represents 45% of total General Fund expenditures.     The fund balance of the General Fund increased by $976,945 or 7.7%.  The increase is primarily attributable  to an increase in licenses and permits for land use application fees and public improvements related to the  city’s economic development program and specifically the River Terrace area, the city’s newest residential  neighborhood.  In addition, transfers out of the General Fund increased over fiscal year 2015.  Transfers out  $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 Sanitary sewer Stormwater Water Revenues Expenses 24 City of Tigard, Oregon  Management’s Discussion and Analysis    of the General Fund were primarily for the Facilities capital project fund for an exterior building insulation  finishing system project for City Hall, the Permit Center and the Police Department.  Other transfers out of the  General Fund were for the Park Utility special revenue fund to help support the park and operations in this  fund as this was a new fund in fiscal year 2016.     Gas Tax Fund    This fund records shared revenues from state and county taxes on the sale and use of motor vehicle fuel.  The  majority of the revenue comes from a flat per‐gallon tax on gasoline.  Funds are restricted for construction,  reconstruction, improvement, repair, maintenance, operation, and use of public highways, roads, streets, and  roadside rest areas.  This revenue source can also be used for street lighting and cleaning, storm drainage,  traffic control devices, and cost of administration.    At the end of fiscal year 2016, the fund balance was $2,349,779, an increase of $784,667 from the prior year.   Total revenues of $3,356,316 were used to fund street maintenance, street lighting and debt service on  transportation bonds.  The increase in fund balance is primarily due to a decrease in transfers out from fiscal  year 2015 to the Transportation CIP fund for various transportation system projects.  In addition, in fiscal year  2016 utility expenses in Public Works decreased as street lights and signals are being switched over to LED  (light‐emitting diode) lights to save energy and brighten streets and parks.      Proprietary Funds    The city's proprietary funds include the Sanitary Sewer, Stormwater, Water, and Internal Services Funds.      The unrestricted net position of the business‐type activities at year‐end amounted to $21,847,155 with  individual fund unrestricted net position at:   Sanitary Sewer, $4,514,492   Stormwater, $7,209,621   Water Funds, $10,123,042    The factors concerning the finances of these funds have already been addressed in the discussion of the city’s  business‐type activities.     General Fund Budgetary Highlights    The city council approved four supplementary budget amendments to the adopted General Fund budget.  Total final adopted budgeted revenues had an increase of $1,085,012 and the total final adopted budgeted  expenditures increased by $496,947 from the original budgeted numbers.  Budgeted transfers out of the  General Fund was increased by $108,275, General Fund contingency was decreased by $179,407 or 16% and  reserve for future expenditures increased by $796,840 or 13%. Following are noteworthy changes from the  original budget to the final adopted budget in the General Fund:       Public Works – $100,000 to increase staffing requirements in Engineering division to meet demands  on citywide development including River Terrace subdivision.   Transfers Out ‐ $35,000 to the Gas Tax fund for a project to help fund the Tigard Street Trail and  $35,000 to support central services in the Park Utility Fee fund.   Transfers Out ‐ $37,000 to Central Service fund for election materials.   Transfers In ‐ $57,750 transfer in from the Gas Tax fund and $8,000 transfer in from the Sewer Fund  for wetland mitigation.  25 City of Tigard, Oregon  Management’s Discussion and Analysis     Public Works ‐ $80,000 allocated to an intergovernmental agreement with Clean Water Services to  fund erosion control inspections.   Community Services ‐ $41,132 allocated to replace tasers in the Police Department.   Policy and Administration ‐ $14,000 to increase staffing requirements in municipal court operations.   Community Services ‐ $32,500 from TriMet to add a transit officer in the Police Department.    The contingency transactions account for increase in budgeted expenditures not related to increased  revenues.  There was no effect on ending General Fund budgetary fund balance as a result of these budget  amendments.  Noteworthy variances from the final adopted budget to actual revenues and expenditures in  the General Fund are as follows:       Licenses and permits – variance with budget in the amount of $869,505 due to an increase in land use  application fees and engineering public improvements directly related to development in the new  subdivision of River Terrace.   Charges for services – variance with budget for $752,527 due to a reduction in project management  for capital programs, such as park development and transportation construction projects.   Public Works – variance with the budget in the amount of $581,951.  The variance was due to vacant  positions within the Engineering division during the fiscal year and unspent funds on a contract with  a consultant to align engineering construction contracts with the Oregon standard specifications.     Community Development – variance with budget in the amount of $628,821.  The reasons for the  budget variance include unspent funds for an environmental assessment related to the downtown  redevelopment project, remaining funds on a strategic plan contract to transform an area of the city  into a mixed‐use district and unspent funds to provide public outreach and landscape design services  for a local elementary school.  In each of these instances the unspent funds were re‐appropriated in  fiscal year 2017.    Capital Asset and Debt Administration    Capital Assets    Governmental Activities    The city's investment in capital assets for its governmental activities as of June 30, 2016, amounts to  $218,225,516 (net of accumulated depreciation).  This investment in capital assets primarily includes land,  right‐of‐ways, buildings and improvements, machinery and equipment, office equipment and infrastructure.   The infrastructure includes roads, curbs and sidewalks, signage, streetlights and right‐of‐ways.  The total  increase in the city's investment in governmental activities capital assets was $4,328,013 or approximately 2%  over the prior year.  The city recorded approximately $4 million in developer contributions for street and  transportation infrastructure due to the growing subdivisions within the city. Other governmental asset  additions include street and transportation projects and park development as resources from the parks bonds  issued in fiscal year 2011 continues to be spent.  Expenditures on capital assets were higher than overall  depreciation expense, leading to the increase in net capital assets.    Business‐type Activities    The city's investment in capital assets for its business‐type activities as of June 30, 2016, amounts to  $228,453,349 (net of accumulated depreciation).  In addition to machinery, equipment and vehicles, the  capital assets include the sanitary sewer collection system, stormwater, and water systems.  Total increase in  26 City of Tigard, Oregon  Management’s Discussion and Analysis    the city's investment in business‐type activities capital assets was $28,831,984 or 14%.  This increase is  primarily noted in the Water fund for the construction in progress on the water partnership with the City of  Lake Oswego to manage the expansion and upgrade of the city’s water supply system.  In addition, contributed  capital for water, sanitary sewer and stormwater were significantly higher than in the prior year as a result of  the increased development throughout the city.      Capital Assets, net of depreciation     Governmental   Activities   Business‐Type   Activities   Total   2016  2015  2016  2015  2016  2015  Land $   25,889,224 $   25,917,639     $      5,237,285     $      5,237,285 $   31,126,509 $   31,154,924  Construction in progress 3,451,257 7,147,531  158,706,084  131,543,902 162,157,341 138,691,433  Buildings and building improvements      14,975,332     15,608,325 733,614 813,264 15,708,946 16,421,589  Land improvements 2,445,839 2,567,098 ‐‐2,445,839 2,567,098  Sewer system  ‐‐  16,913,483  16,879,029 16,913,483 16,879,029  Stormwater system ‐‐10,855,787 9,667,679 10,855,787 9,667,679  Water system ‐‐35,578,202 35,009,113 35,578,202 35,009,113  Machinery and equipment 320,672 489,836 243,764 235,977 564,436 725,813  Autos and trucks 771,050 705,888 185,130 235,116 956,180 941,004  Office equipment 962,754 1,045,832 ‐‐962,754 1,045,832  Infrastructure 169,409,388 160,415,354 ‐‐169,409,388 160,415,354     Total Capital Assets    $ 218,225,516   $ 213,897,503  $ 228,453,349  $ 199,621,365 $ 446,678,865 $ 413,518,868      The following chart indicates the city’s capital assets as of June 30, 2016.  Additional information on the city's  capital assets can be found in the notes on pages 62‐63 of this report.        Total Capital Assets              Land 7.0% Construction in  progress 36.3% Buildings and  building  improvements 3.5%Land  improvements 0.5% Sewer  system  3.8% Stormwater  system 2.4% Water system 8.0% Machinery and  equipment 0.1% Autos and trucks 0.2% Office equipment 0.3% Infrastructure 37.9% 27 City of Tigard, Oregon  Management’s Discussion and Analysis    Debt Outstanding    As of year‐end, the city had total debt outstanding of $165,369,953.  Of this amount $22,862,084 is general  obligation and full faith and credit bonds; $139,003,308 represents water revenue bonds; $2,007,952  represents a note payable; $296,319 represents special assessment bonded debt or local improvement district  bonds; $1,170,000 for urban renewal bank loan payable; and the remainder of the city’s debt represents  capitalized leases.  Both general obligation bonds and full faith credit bonds are direct obligations pledging  the full faith and credit of the city.    Total debt decreased by $3,087,456 or approximately 2% during the current fiscal year.  In fiscal year 2015  the city issued $1,300,000 for the city center development agency for urban renewal in governmental  activities.  The balance on this loan is $1,170,000 at year‐end.  For the business‐type activity, in fiscal year  2015 the city issued water revenue bonds with a par value of $30,810,000.  Proceeds from these bonds are  used to fund water capital projects, primarily the costs associated with the Tigard/Lake Oswego Water  Partnership.  The city is making interest‐only payments on these bonds until fiscal year 2017.  The city also has  an outstanding note payable that is part of a grant and low interest loan package provided to the city to make  improvements to one of the city’s water reservoirs.  These funds were part of the American Recovery and  Reinvestment Act (ARRA).  The outstanding balance on this debt is $2,007,952 at year‐end.    During fiscal year 2015, in anticipation of issuing water revenue bonds, the city received a revenue bond rating  of A1 from Moody’s Investors Service and AA‐ from Standard & Poor’s Ratings Services.    The State of Oregon statutes limit the amount of general obligation debt that cities can issue to 3 percent of  the real market value of all taxable property within the city limits.  The current debt limitation for the city for  general obligation debt is $242 million, which is significantly in excess of the city’s outstanding general  obligation debt.    The following chart indicates the city’s long‐term liabilities as of June 30, 2016.  Additional information on the  city's debt can be found on pages 64‐68 of this report.      Governmental   Activities   Business‐Type   Activities   Total   2016  2015  2016  2015  2016  2015  General obligation $  22,862,084 $  24,990,106 ‐‐$   22,862,084 $   24,990,106 Local improvement 296,319 373,711 ‐‐296,319 373,711 Bank loan payable 1,170,000 1,300,000 ‐‐1,170,000 1,300,000 Capital lease 30,290 44,482 ‐‐30,290 44,482 Note payable ‐‐$     2,007,952 $     2,105,957 2,007,952 2,105,957 Revenue bonds ‐‐139,003,308 139,643,153 139,003,308 139,643,153    Total Outstanding Debt  $  24,358,693 $  26,708,299 $ 141,011,260 $ 141,749,110 $ 165,369,953 $ 168,457,409 28 City of Tigard, Oregon  Management’s Discussion and Analysis    Total Outstanding Long‐Term Debt   Economic Factors and Budget Information for Next Year    The following economic factors currently affect the city and were considered in developing the city’s budget  for fiscal year 2017:     The unemployment rate for the Portland metropolitan area was 4.9% at the end of the fiscal year,  June 30, 2016.  This is almost in line with the State of Oregon rate of 4.8% and the national average,  which is also at 4.9% for June 2016.  Economic conditions have finally reached levels commensurate  with a typical economic recovery.     Property tax revenues are the single largest sources of revenue in the General Fund and it accounts  for 45% of ongoing revenues.  Tigard’s low permanent property tax levy rate ($2.51/1,000 AV), which  is the second lowest of any city within Washington County with a population over 5,000, is limited  and therefore, General Fund growth is particularly sensitive to taxable growth.  Property tax revenues  are forecasted to increase by 3.5% based on prior year’s modest growth in assessed values and  anticipated development.     There is room to increase Tigard’s very low permanent property tax rate.  One approach to address  this would be through a local option levy.  For example, a local option levy of $1.00/$1,000 of assessed  value would still keep Tigard’s rate below average in Washington County and would raise  approximately $6,000,000 annually for more city services.     The River Terrace subdivision will provide an increase in revenue for the city, at an estimated 0.5% in  annual revenue growth.  This subdivision will add approximately 200 homes a year for the next six  years.  In turn creating additional demands on city services.      The City of Tigard issues licenses for businesses operating within the city limits.  As of June 30, 2016,  there were 2,976 businesses licensed in the city as compared to 2,710 a year ago.  Business license  revenues are highly sensitive to economic conditions.  With the planned economic development in  urban renewal, the city projects a continued increase in business licenses, but any increase will be  gradual over time.  The fiscal year 2016 budget includes an increase to the business license fee in  order to fund an additional officer in the Commercial Crimes Unit in the Police Department.        General  obligation 13.8% Local  improvement 0.2% Bank loan payable 0.8% Capital Lease 0.02% Note payable 1.3% Revenue bonds 84.1% 29 City of Tigard, Oregon  Management’s Discussion and Analysis     Fiscal year 2017 budget includes a plan to fund maintenance and development on park and  recreational areas.  Park land has been purchased each year since the issuance of the 2011 Parks  General Obligation Bonds.  Parks are currently funded through a park and recreation fee that is  anticipated to generate approximately $1 million annually.  Additional transfers from the General  Fund to the Park Utility special revenue fund are also necessary for maintenance and upkeep on the  city’s expanding park system.      Business‐type activities are funded through water, sewer and stormwater management rates and  system development charges.  The city has the ability to increase rates to keep pace with growing  costs as well as increasing demands on the system infrastructure.  Tigard’s water customer charge  and water usage charge will increase by 3.25% in fiscal year 2016 and each year thereafter through  2019.  Clean Water Services sets rates for sanitary sewer and storm water management (SWM).  Fiscal  year 2017 budget includes a 3.0% increase for sanitary sewer rates, 6.9% increase for stormwater  management rates and a 3.56% combined sewer and SWM rate increase for the average residential  customer.  The rate increases were necessary to expand, replace and upgrade aging infrastructure  and to meet state and federal pollution control requirements.    All of these factors were considered in preparing the city’s budget for fiscal year 2016‐2017.  The current  forecast shows that in the short‐term the city’s financial condition is stable in most funds.  The fiscal year 2017  budget continued addressing a projected General Fund deficit that had been forecasted to occur earlier than  what is now projected.  City budgets are developed to address the continuing challenge of flat revenues and  increasing expenditure rates.      Requests for Information    This financial report is designed to provide a general overview of the City of Tigard's finances for all those with  an interest in the city's finances.  Questions concerning any of the information provided in the report or  requests for additional financial information should be addressed to:    City of Tigard  Financial and Information Services Director  13125 SW Hall Blvd.  Tigard, Oregon  97223  30 This page intentionally left blank. Basic Financial Section ASSETS Cash and cash equivalents 18,525,783$          21,146,963$          39,672,746$           Investments 3,260,559               3,788,098               7,048,657                Accounts receivable 3,359,226               4,606,369               7,965,595                Property taxes receivable 792,545                  ‐                               792,545                   Assessment liens receivable 425,488                  ‐                               425,488                   Prepaids 42,345                    2,723                      45,068                     Inventory 31,921                    206,568                  238,489                   Property held for resale ‐                               445,042                  445,042                   Restricted cash and cash equivalents 17,312,524            19,238,229            36,550,753             Restricted investments 1,902,207               846,353                  2,748,560                Capital assets:    Land and construction in process 29,340,481            163,943,369          193,283,850              Other capital assets (net of accumulated depreciation)188,885,035          64,509,980            253,395,015                 Total assets 263,878,114          278,733,694          542,611,808           DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pension 1,170,397               ‐                               1,170,397                      Total deferred outflows 1,170,397               ‐                               1,170,397                LIABILITIES Accounts payable and accrued liabilities 3,463,068               5,492,880               8,955,948                Deposits 1,144,365               38,608                    1,182,973                Due to others 601,283                  ‐                               601,283                   Internal balances 102,495                  (102,495)                ‐                                Unearned revenue 75,374                    ‐                               75,374                     Accrued interest payable 96,469                    2,614,328               2,710,797                Due within one year:    Notes payable ‐                               100,945                  100,945                      Bonds payable 2,186,497               2,583,027               4,769,524                   Accrued compensated absences 1,250,075               136,069                  1,386,144                   Bank loan payable 130,000                  ‐                               130,000                      Special assessment bonded debt with government commitment 83,100                    ‐                               83,100                        Capital lease 14,818                    ‐                               14,818                     Due in more than one year:    Notes payable ‐                               1,907,007               1,907,007                   Bonds payable 20,675,587            136,420,281          157,095,868              Accrued compensated absences 49,405                    4,615                      54,020                        Bank loan payable 1,040,000               ‐                               1,040,000                   Special assessment bonded debt with government commitment 213,219                  ‐                               213,219                      Capital lease 15,472                    ‐                               15,472                        Net other post employment benefit obligation 1,591,737               163,679                  1,755,416                   Net pension liability 4,678,602                ‐                               4,678,602                      Total liabilities 37,411,566            149,358,944          186,770,510           DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pension 1,077,592               ‐                               1,077,592                      Total deferred inflows 1,077,592               ‐                               1,077,592                NET POSITION Net investment in capital assets 195,142,143          95,247,967            290,390,110           Restricted for:    Transportation construction, maintenance and utility undergrounding 9,074,010               ‐                               9,074,010                   Park development and improvements 5,443,698               ‐                               5,443,698                   Water system construction and improvements ‐                               5,517,329               5,517,329                   Debt service 1,982,373               6,762,299               8,744,672                   Building development plan review and inspection 3,030,649               ‐                               3,030,649                   Library capital improvements 476,893                  ‐                               476,893                      Law enforcement equipment 385,375                  ‐                               385,375                   Unrestricted 11,024,212            21,847,155            32,871,367                Total net position 226,559,353$        129,374,750$        355,934,103$         The accompanying notes are an integral part of the basic financial statements. CITY OF TIGARD, OREGON STATEMENT OF NET POSITION June 30, 2016 Governmental  Activities Business‐Type  Activities Total 31 Charges Operating for Grants and Functions/Programs Expenses Services Contributions Governmental activities: Community services 25,089,790$                1,879,576$                  3,908,500$                   Public works 10,865,800                  2,860,543                     3,808,026                      Community development 7,030,142                     4,684,733                     40,192                           Policy and administration 1,226,166                     119,195                        ‐                                       Interest on long‐term debt 958,204                        ‐                                      ‐                                            Total governmental activities 45,170,102                  9,544,047                     7,756,718                      Business‐type activities: Sewer 2,536,988                     1,791,302                     ‐                                       Stormwater 2,123,162                     3,058,382                     ‐                                       Water 14,720,167                  20,918,497                  ‐                                          Total business‐type activities 19,380,317                  25,768,181                  ‐                                       Total 64,550,419$                35,312,228$                7,756,718$                   The accompanying notes are an integral part of the basic financial statements. Program Revenues CITY OF TIGARD, OREGON STATEMENT OF ACTIVITIES for the year ended June 30, 2016 32 Capital Grants and Governmental Business‐type Contributions Activities Activities Total ‐$                                              (19,301,714)$                     ‐$                                           (19,301,714)$                        7,769,579                               3,572,348                           ‐                                              3,572,348                              4,015,945                               1,710,728                           ‐                                              1,710,728                              ‐                                                (1,106,971)                          ‐                                              (1,106,971)                             ‐                                                (958,204)                             ‐                                              (958,204)                                11,785,524                             (16,083,813)                       ‐                                              (16,083,813)                          664,721                                  ‐                                            (80,965)                                 (80,965)                                  1,459,717                               ‐                                            2,394,937                             2,394,937                              3,682,152                               ‐                                            9,880,482                             9,880,482                              5,806,590                               ‐                                            12,194,454                           12,194,454                            17,592,114$                          (16,083,813)                       12,194,454                           (3,889,359)                             General Revenues:    Property taxes, levied for general        purposes 14,751,398                         ‐                                              14,751,398                               Property taxes, levied for debt service 2,426,193                           ‐                                              2,426,193                                 Franchise fees 5,734,540                           ‐                                              5,734,540                                 Unrestricted intergovernmental        revenues 2,840,903                           127,148                                2,968,051                                 Interest earnings 688,087                              302,890                                990,977                                    Miscellaneous 228,779                              193,645                                422,424                                       Total general revenues     26,669,900                         623,683                                27,293,583                            Transfers between Governmental   and Business‐type Activites 817,481                              (817,481)                               ‐                                                     Change in net position 11,403,568                         12,000,656                           23,404,224                            Net position, beginning 215,155,785                      117,374,094                        332,529,879                         Net position, ending     226,559,353$                    129,374,750$                      355,934,103$                       Net (Expense) Revenue and Changes in Net Position ‐  Primary Government 33 Other Total General Gas Tax Governmental Governmental Fund Fund Funds Funds ASSETS Cash and cash equivalents 10,630,587$      2,021,667$    3,312,759$          15,965,013$         Investments 2,260,621           366,387          495,814                3,122,822              Accounts receivable 2,539,642           277,011          520,052                3,336,705              Property taxes receivable 667,815              ‐                       124,730                792,545                 Assessment liens receivable ‐                           ‐                       425,488                425,488                 Advances to other funds 655,183              ‐                       ‐                        655,183                 Prepaids 9,071                  ‐                       ‐                        9,071                     Restricted cash and cash equivalents ‐                           ‐                       17,312,524          17,312,524           Restricted Investments ‐                           ‐                       1,902,207             1,902,207                 Total assets     16,762,919$      2,665,065$    24,093,574$        43,521,558$         LIABILITIES Accounts payable and accrued liabilities 884,220$            48,327$          2,104,950$          3,037,497$           Deposits 423,596              266,959          453,810                1,144,365              Due to others 565,373              ‐                       35,910                  601,283                 Advances from other funds ‐                           ‐                       757,678                757,678                 Unearned revenue ‐                           ‐                       59,660                  59,660                         Total liabilities     1,873,189           315,286          3,412,008             5,600,483              DEFERRED INFLOWS OF RESOURCES Resources not yet available:    Property taxes 614,502              ‐                       114,243                728,745                    Municipal court receivable 490,456              ‐                       ‐                             490,456                    Grant receivable 15,654                15,654                      Special assessment liens ‐                           ‐                       425,488                425,488                    Franchise fees 134,194              ‐                       ‐                             134,194                       Total deferred inflows of resources 1,254,806           ‐                       539,731                1,794,537              FUND BALANCES Nonspendable:    Advances to other funds 655,183              ‐                       ‐                             655,183                    Prepaids 9,071                  ‐                       ‐                             9,071                     Restricted for:    Street maintenance and improvements ‐                           2,349,779       4,667,564             7,017,343                 Debt service ‐                           ‐                       1,446,055             1,446,055                 Park development and improvements ‐                           ‐                       5,443,698             5,443,698                 Underground utilities ‐                           ‐                       450,921                450,921                    Building inspection ‐                           ‐                       3,030,649             3,030,649                 Police services ‐                           ‐                       385,375                385,375                    Library improvements ‐                           ‐                       476,893                476,893                 Committed for:    Street maintenance and improvements ‐                           ‐                       1,960,696             1,960,696                 Urban forestry ‐                           ‐                       1,299,540             1,299,540              Assigned to:   City facilities ‐                           ‐                       1,129,618             1,129,618                Park and recreation ‐                           ‐                       468,155                468,155                 Unassigned 12,970,670        ‐                       (617,329)              12,353,341           Total fund balances     13,634,924        2,349,779       20,141,835          36,126,538           Total liabilities, deferred inflows of resources and   fund balances 16,762,919$      2,665,065$    24,093,574$        43,521,558$         The accompanying notes are an integral part of the basic financial statements. CITY OF TIGARD, OREGON GOVERNMENTAL FUNDS ‐ BALANCE SHEET June 30, 2016 34 Fund Balances ‐ Governmental Funds 36,126,538$      Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and therefore    are not reported in the funds. Governmental capital assets 311,616,199$           Less accumulated depreciation (93,390,683)             218,225,516      Pension assets or liabilities, with related deferred outflows of resources and deferred inflows   of resources, are not reported in governmental funds, but are reported on the statement of   net position.  The amounts included in governmental activities on the statement of net position:       Net pension liability (4,678,602)                      Deferred outflows of resources related to pensions 1,170,397                        Deferred inflows of resources related to pensions (1,077,592)               (4,585,797)         Other long‐term assets are not available to pay for current‐period expenditures and therefore are  deferred in the governmental funds and recognized as revenue in the Statement of Activities.       Property taxes earned but not available 728,745                           Franchise fees earned but not available 134,194                           Municipal court receivable 490,456                           Grant receivable 15,654                             Assessment liens 425,488                    1,794,537          Internal service funds are used by management to charge the cost of administrative functions as well as  fleet and property management to individual funds.  The assets and liabilities of the internal service  funds are included in governmental activities in the statement of activities.  1,742,751          Accrued compensated absences are not due and payable in the current period and therefore are not (1,000,400)         reported in the funds. Long‐term liabilities, including bonds payable are not due and payable in the current period and    therefore are not reported in the governmental funds.     Bonds payable (22,862,084)           Loans payable (1,170,000)             Special assessment debt bonded with government commitment (296,319)                Capital leases payable (30,290)                   Accrued interest payable, not due and payable in the current period (96,469)                   Net other post employment benefit (OPEB) obligation (1,288,630)         Net Position of Governmental Activities     226,559,353$   The accompanying notes are an integral part of the basic financial statements. CITY OF TIGARD, OREGON RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION June 30, 2016 GOVERNMENTAL FUNDS 35 Other Total General Gas Tax Governmental Governmental Fund Fund Funds Funds REVENUES Taxes 14,300,168$        3,095,618$          3,508,549$          20,904,335$         Franchise fees 5,732,448             ‐                             ‐                             5,732,448              Special assessments ‐                         ‐                             65,243                  65,243                   Licenses and permits 3,114,265             29,722                  2,607,485             5,751,472              Intergovernmental revenues 6,319,350             ‐                             365,317                6,684,667              Charges for services 2,289,321             ‐                             8,685,079             10,974,400           Fines and forfeitures 761,781                ‐                             210,779                972,560                 Interest earnings 292,387                152,759                208,733                653,879                 Miscellaneous revenues 92,734                  78,217                  49,943                  220,894                    Total revenues     32,902,454          3,356,316             15,701,128          51,959,898           EXPENDITURES Current operating:    Community services 20,743,054          ‐                             41,132                  20,784,186              Public works 3,785,911             1,822,997             1,997,220             7,606,128                 Community development 3,450,608             ‐                             3,531,295             6,981,903                 Policy and administration 831,876                ‐                             ‐                             831,876                 Debt service:    Principal ‐                             481,425                1,880,467             2,361,892                 Interest ‐                             111,000                948,733                1,059,733              Capital outlay ‐                             ‐                             6,200,291             6,200,291                 Total expenditures     28,811,449          2,415,422             14,599,138          45,826,009                Excess of revenues         over expenditures 4,091,005             940,894                1,101,990             6,133,889              OTHER FINANCING SOURCES (USES)    Proceeds from sale of capital assets ‐                             ‐                             1,650,000             1,650,000                 Transfers in ‐                             115,987                6,212,831             6,328,818                 Transfers out (3,114,060)           (272,214)               (2,716,165)           (6,102,439)               Resources provided by other funds ‐                             ‐                             49,500                  49,500                         Total other financing sources (uses)     (3,114,060)           (156,227)               5,196,166             1,925,879              Net change in fund balances 976,945                784,667                6,298,156             8,059,768              Fund balances ‐ beginning of the year     12,657,979          1,565,112             13,843,679          28,066,770           Fund balances ‐ end of year     13,634,924$        2,349,779$          20,141,835$        36,126,538$         The accompanying notes are an integral part of the basic financial statements. CITY OF TIGARD, OREGON GOVERNMENTAL FUNDS ‐ STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE for the year ended June 30, 2016 36 Net change in fund balances ‐ Governmental Funds 8,059,768$           Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures.  However in the Statement of Activities   the cost of those assets is depreciated over their estimated useful lives Expenditures for capital assets 5,792,886 Current year depreciation expense (5,303,120) Contributed capital 4,015,945 Loss on disposal of capital assets (177,698) 4,328,013 Revenues in the Statement of Activities that do not provide current financial resources  are not reported as revenues in the funds Decrease in deferred inflows of resources ‐ property taxes 81,282 Decrease in franchise fees 2,092 Increase in municipal court receivable 5,015 Increase in grants receivable 15,654 Decrease in assessment liens (65,284) 38,759                   Long‐term debt proceeds provide current financial resources to governmental funds,   but issuing debt increases long‐term liabilities in the Statement of Net Position.   Repayment of long‐term debt is reported as an expenditure in the governmental   funds, but a reduction of long‐term liabilities in the Statement of Net Position. Principal payments 2,361,892 Reimbursement on internal loans (49,500) Amortization of premium on long‐term debt 37,214 2,349,606              Some expenses reported in the Statement of Activities do not require the use of current   financial resources and therefore are not reported as expenditures in governmental funds: Increase in accrued interest payable 80,473 Increase in compensated absences (28,405) Pension expense (3,845,531) Increase in accrued other post employment benefits (OPEB) liability (104,868)          (3,898,331)            Internal service funds are used by management to charge the cost of administrative functions   as well as fleet and property management to individual funds.  The net revenue of internal    service funds is reported with governmental activities. Change in Net Position ‐  Internal Service Funds 525,753                 Change in Net Position of Governmental Activities 11,403,568$         The accompanying notes are an integral part of the basic financial statements. CITY OF TIGARD, OREGON RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES for the year ended June 30, 2016 GOVERNMENTAL FUNDS 37 Governmental Activities ‐  Sanitary Internal Sewer Stormwater Water Totals Service Funds ASSETS Current assets:    Cash and cash equivalents 3,485,925$       5,691,891$         11,969,147$      21,146,963$      2,560,770$          Investments 587,389            1,031,541           2,169,168           3,788,098           137,737                Accounts receivable 1,482,250         415,184              2,708,935           4,606,369           22,521                  Advances to other funds ‐ Interfund loan 102,495            ‐                           ‐                           102,495              ‐                             Prepaids ‐                         1,473                   1,250                   2,723                   33,274                  Property held for resale 185,021            260,021              ‐                           445,042              ‐                             Inventory 25,147              25,147                156,274              206,568              31,921               Total current assets     5,868,227         7,425,257           17,004,774         30,298,258         2,786,223          Noncurrent assets:    Restricted cash and cash equivalents ‐                          ‐                           19,238,229         19,238,229          ‐                             Restricted investments ‐                          ‐                           846,353              846,353               ‐                          Capital assets:    Land and construction in process 608,127            162,602              163,172,640      163,943,369      ‐                             Other capital assets (net of         accumulated depreciation)17,087,881       11,330,181         36,091,918         64,509,980         ‐                          Total noncurrent assets     17,696,008       11,492,783         219,349,140      248,537,931      ‐                               Total assets      23,564,235       18,918,040         236,353,914      278,836,189      2,786,223          LIABILITIES Current liabilities:    Accounts payable and accrued liabilities 1,291,616         136,868              4,064,396           5,492,880           425,571                Unearned revenue ‐                          ‐                            ‐                            ‐                           15,714                  Deposits ‐                         8,833                   29,775                38,608                 ‐                             Accrued interest payable ‐                          ‐                           2,614,328           2,614,328            ‐                             Accrued compensated absences 23,221              25,869                86,979                136,069              287,715                Current portion of bonds payable ‐                         ‐                           2,583,027           2,583,027           ‐                             Current portion of note payable ‐                         ‐                           100,945              100,945              ‐                          Total current liabilities      1,314,837         171,570              9,479,450           10,965,857         729,000             Noncurrent liabilities:    Accrued compensated absences 788                    877                      2,950                   4,615                   11,365                  Note payable ‐ long‐term portion ‐                         ‐                           1,907,007           1,907,007           ‐                             Bonds payable ‐ long‐term portion ‐                         ‐                           136,420,281      136,420,281      ‐                             Net OPEB obligation 38,110              43,189                82,380                163,679              303,107             Total noncurrent liabilities     38,898              44,066                138,412,618      138,495,582      314,472                Total liabilities     1,353,735         215,636              147,892,068      149,461,439      1,043,472          NET POSITION    Net investment in capital assets 17,696,008       11,492,783         66,059,176         95,247,967          ‐                             Restricted for capital projects ‐                         ‐                           5,517,329           5,517,329           ‐                             Restricted for debt service ‐                         ‐                           6,762,299           6,762,299           ‐                             Unrestricted 4,514,492         7,209,621           10,123,042         21,847,155         1,742,751          Total net position     22,210,500$    18,702,404$      88,461,846$      129,374,750$    1,742,751$        CITY OF TIGARD, OREGON PROPRIETARY FUNDS STATEMENT OF NET POSITION June 30, 2016 The accompanying notes are an integral part of the basic financial statements. Business‐type Activities ‐ Enterprise Funds 38 Governmental Activities ‐ Sanitary Internal  Sewer Stormwater Water Totals Service Funds OPERATING REVENUES Charges for services 1,791,302$         3,058,382$         20,918,497$      25,768,181$      8,842,796$        Miscellaneous revenues 35,795                18,543                139,307              193,645              33,756                  Total operating revenues 1,827,097           3,076,925           21,057,804         25,961,826         8,876,552          OPERATING EXPENSES Salaries and wages 528,658              524,866              1,117,286           2,170,810           5,053,836          Contracted services 5,686                   421,346              4,565,752           4,992,784           1,063,972          General, administrative and other 1,304,139           672,632              3,111,194           5,087,965           2,858,284          Depreciation 695,290              478,075              1,394,697           2,568,062           ‐                             Total operating expenses 2,533,773           2,096,919           10,188,929         14,819,621         8,976,092                Operating income (loss) (706,676)             980,006              10,868,875         11,142,205         (99,540)              NON‐OPERATING REVENUES (EXPENSES) Interest earnings 10,344                39,035                253,511              302,890              34,191               Interest expense ‐                           ‐                           (4,528,306)         (4,528,306)         ‐                          Intergovernmental revenue 127,148              ‐                           ‐                           127,148              ‐                          Loss on disposal of capital assets (3,215)                 (26,243)               (2,932)                 (32,390)               ‐                             Total non‐operating revenue 134,277              12,792                (4,277,727)         (4,130,658)         34,191               Net income (loss) before   contributions and transfers (572,399)             992,798              6,591,148           7,011,547           (65,349)                 System development revenue 69,543                550                      2,811,942           2,882,035            ‐                             Capital contributions 595,178              1,459,167           870,210              2,924,555           ‐                             Transfers in 104                      ‐                           58,751                58,855                592,085                Transfers out (30,560)               (99,044)               (746,732)             (876,336)             (983)                    Change in net position 61,866                2,353,471           9,585,319           12,000,656         525,753             Net position‐‐beginning of year 22,148,634         16,348,933         78,876,527         117,374,094      1,216,998          Net position‐‐end of year 22,210,500$      18,702,404$      88,461,846$      129,374,750$    1,742,751$        Business‐type Activities ‐  Enterprise Funds The accompanying notes are an integral part of the basic financial statements. CITY OF TIGARD, OREGON STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS for the year ended June 30, 2016 39 Governmental Activities ‐ Sanitary Internal Sewer Stormwater Water Totals Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 13,220,790$   3,031,322$     20,898,641$   37,150,753$    8,856,810$      Payments to suppliers (13,607,350)  (1,077,742)     (13,892,965)  (28,578,057)    (3,939,391)      Payments to employees (525,304)        (520,636)        (1,135,365)     (2,181,305)       (5,020,897)      Other receipts 35,796            18,543            139,307          193,646            30,159               Net cash provided by operating activities (876,068)        1,451,487      6,009,618      6,585,037        (73,319)            CASH FLOWS FROM NONCAPITAL     FINANCING ACTIVITIES Principal collected on interfund loan 35,152            ‐                               ‐                       35,152               ‐                        Transfers to other funds (30,560)           (99,044)           (746,732)        (876,336)          (983)                 Transfers from other funds 104                  ‐                       58,751            58,855              592,085             Net cash (used) by noncapital financing activities 4,696              (99,044)           (687,981)        (782,329)          591,102           CASH FLOWS FROM CAPITAL AND RELATED    FINANCING ACTIVITIES System development revenue 69,543            550                  2,811,942      2,882,035        ‐                        Intergovernmental revenue 127,148          ‐                       ‐                       127,148            ‐                        Principal payments ‐                       ‐                       (98,005)           (98,005)             ‐                        Interest payments ‐                       ‐                       (4,966,608)     (4,966,608)       ‐                        Acquisition of capital assets (236,126)        (267,458)        (28,004,301)  (28,507,885)    ‐                          Net cash (used) by capital and related     financing activities (39,435)           (266,908)        (30,256,972)  (30,563,315)    ‐                        CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings 10,344            39,035            253,511          302,890            34,191               Net increase (decrease) in cash      and investments (900,463)        1,124,570      (24,681,824)  (24,457,717)    551,974           Cash and investments‐‐beginning of the year 4,973,777      5,598,862      58,904,721    69,477,360      2,146,533       Cash and investments‐‐end of the year 4,073,314$     6,723,432$     34,222,897$   45,019,643$    2,698,507$      RECONCILIATION OF OPERATING INCOME (LOSS) TO    NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) (706,676)$       980,006$        10,868,875$   11,142,205$    (99,540)$          Adjustments to reconcile operating income (loss)    to net cash provided by operating activities: Cash flows reported in other categories: Depreciation expense 695,290          478,075          1,394,697      2,568,062        ‐                        Change in assets and liabilities: Receivables (136,839)        (27,060)           (10,923)           (174,822)          4,154               Prepaid expenses (640)                (583)                (1,223)               56,362             Inventory (13,131)           (13,131)           11,105            (15,157)             12,010             Accounts payable and accrued liabilities (718,067)        30,007            (6,226,541)     (6,914,601)       (78,507)            Unearned revenue ‐                       ‐                       ‐                       ‐                         (737)                 Accrued compensated absences 143                  483                  (25,037)           (24,411)             9,182               Deposits (8,933)             (8,933)               ‐                        OPEB obligation 3,212              3,747              6,958              13,917              23,757             Net cash provided by operating activities (876,068)$       1,451,487$     6,009,618$     6,585,037$      (73,319)$             Non‐cash capital and related financing activities: Developer contributed sewer, stormwater and  water lines 595,178$        1,459,167$     870,210$        2,924,555$      ‐                        The accompanying notes are an integral part of the basic financial statements.  Enterprise Funds CITY OF TIGARD, OREGON PROPRIETARY FUNDS STATEMENT OF CASH FLOWS for the year ended June 30, 2016 Business‐type Activities ‐ 40 Fiduciary Funds This funds account for resources received and held by the city in a fiduciary capacity. Disbursements from these funds are made in accordance with the plan document agreement or the applicable Internal Revenue Code Section. The accrual basis of accounting is used to record transactions in the pension trust funds. Pension Trust Fund – this fund accounts for the city’s retirement plan for employees. The retirement plan is a defined contribution plan 401(a). ASSETS Investments:   Restricted stable value fund 5,580,761$          Restricted corporate bonds 859,294                Restricted corporate stocks 17,528,340           Total assets 23,968,395        NET POSITION Restricted for pension benefits 23,968,395$      The accompanying notes are an integral part of the basic financial statements. CITY OF TIGARD, OREGON STATEMENT OF FIDUCIARY NET POSITION PENSION TRUST June 30, 2016 41 ADDITIONS Contributions ‐ employer 1,355,676$        Contributions ‐ plan members 140,846              Investment loss (246,138)             Total additions 1,250,384          DEDUCTIONS Benefit payments and withdrawals 1,412,482          Administrative expenses 3,751                  Total deductions 1,416,233          Change in net position (165,849)             Net position of assets held in trust for pension benefits:    Beginning of year 24,134,244           End of year 23,968,395$      The accompanying notes are an integral part of the basic financial statements. for the year ended June 30, 2016 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST CITY OF TIGARD, OREGON 42 Notes to Basic Financial Statements City of Tigard, Oregon  Notes to Basic Financial Statements    1. Summary of Significant Accounting Policies    Financial Reporting Entity    The City of Tigard, Oregon under its Charter of 1961, is governed by an elected mayor and four council  members who comprise the City Council.  The City Council appoints a City Manager, who acts as the  administrative head of government for the city.    The accompanying financial statements present the city (primary government) and its component unit  (the city’s urban renewal agency), an entity for which the city is financially accountable.  Financial  accountability is defined as the appointment of a voting majority of the organization’s governing board  and where (1) the city is able to significantly influence the programs or services performed or provided  by the organization or (2) the city is legally entitled to or can otherwise access the organization’s  resources.  Blended component units, although legally separate entities, are, in substance, part of the  city’s operations.  Component units may include organizations which are fiscally dependent on the city  in that the city approves the budget, issues debt or levys taxes.  The city has one blended component  unit included in this financial report.        Blended Component Units    The Tigard City Center Development Agency (CCDA) was created in 2006 when the voters approved the  creation of an urban renewal area for 20 years with maximum principal indebtedness of $22 million.   CCDA was created under the provisions of the Oregon Revised Statutes, Chapter 457 (ORS 457).  The  City of Tigard Council members serve as the CCDA’s governing body, known as the Tigard City Center  Development Agency.       The activities of the Tigard City Center Development Agency are included in the city’s financial  statements as a blended component unit.  CCDA is a legally separate entity, which is governed by a  board comprised of the City Council, as stipulated in the bylaws.  The Council has the ability to impose  its will on the CCDA as determined on the basis of budget adoption, taxing authority, and funding.      The purpose of the City Center Development Agency is to undertake urban renewal projects and  activities pursuant to the city’s downtown redevelopment plan.  The financial results of the CCDA are  reported herein as a debt service fund and a capital projects fund.  CCDA prepares a separate  component unit financial report published on the city’s website www.CityofTigardOregon.gov or from  the city’s administrative offices at 13125 SW Hall Blvd, Tigard, Oregon 97223.    The city administers a single employer defined contribution plan (the Pension Plan) covering only city  employees who are not eligible to participate in OPERS.  Named fiduciaries on the Pension Plan are  certain city management employees and the plan is fiscally dependent upon the city’s contributions.  As  a result, the Pension Plan is reported as a fiduciary fund in the city’s financial statements.    Basic Financial Statements    Basic financial statements are presented at both the government‐wide and fund financial level.  Both  levels of statements categorize activities as either governmental or business‐type.  Governmental  activities, which are normally supported by taxes and intergovernmental revenues, are reported  separately from business‐type activities, which rely to a significant extent on fees and charges for  support.  43 City of Tigard, Oregon Notes to Basic Financial Statements Government-wide financial statements display information about the city as a whole. For the most part, the effect of interfund activity has been removed from these statements. These statements focus on the sustainability of the city as an entity and the change in aggregate financial position resulting from the activities of the fiscal year. These aggregated statements consist of the Statement of Net Position and the Statement of Activities. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Indirect expenses are recovered through internal service fund charges. These indirect expenses are allocated based on a full-cost approach, thereby allocating indirect expenses among functions with the objective of allocating all expenses. Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and the pension trust fund, even though the pension trust fund is excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Fund financial statements display information at the individual fund level. Each fund is considered to be a separate accounting entity. Funds are classified and summarized as governmental, proprietary, or fiduciary. Currently, the city has governmental, proprietary, and fiduciary fund types. Non-major funds are combined into a single column in the basic financial statements and are detailed in the supplementary information. Basis of Presentation The financial transactions of the city are recorded in individual funds. Each fund is accounted for by providing a separate set of self-balancing accounts that comprises its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures/expenses. Professional standards set forth minimum criteria (percentage of the assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues or expenditures/expenses or either fund category or the governmental and enterprise combined) for the determination of major funds. The city may also elect to add major funds that city officials believe are particularly useful to financial statement users. The city has elected to report the enterprise funds as major as well as include the Gas Tax Fund as a major fund in the current financial statements for consistency. Non-major funds are combined in a column in the fund financial statements and detailed as supplementary information in the financial report. 44 City of Tigard, Oregon Notes to Basic Financial Statements Measurement Focus and Basis of Accounting Measurement focus is a term used to describe which transactions are recorded within the various financial statements. Basis of accounting refers to when transactions are recorded. The financial statements of the city have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). GAAP statements include all relevant GASB pronouncements. The city applies the provisions of all applicable GASB statements that define requirements and the reporting model for the annual financial reports of state and local governments. The city has recorded capital and certain other long-term assets and liabilities in the Statement of Net Position, reported all revenues and the cost of providing services under the accrual basis of accounting in the Statement of Activities, and uses the direct method of reporting cash flows. The government-wide, proprietary fund and fiduciary fund financial statements are presented on a full accrual basis of accounting with an economic resource measurement focus. An economic resource focus concentrates on an entity or fund’s net position. All transactions and events that affect the total economic resources (net position) during the period are reported. An economic resources measurement focus is inextricably connected with full-accrual accounting. Under the full accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of related cash inflows and outflows. Governmental funds financial statements are presented on a modified accrual basis of accounting with a current financial resource measurement focus. This measurement focus concentrates on the fund’s resources available for spending currently or in the near future. Only transactions and events affecting the fund’s current financial resources during the period are reported. Similar to the connection between an economic resource measurement focus and full accrual accounting, a current financial resource measurement focus is inseparable from a modified accrual basis of accounting. Under modified accrual accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the city considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. Property taxes, intergovernmental and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered susceptible to accrual as revenue of the current period. All other revenues are considered to be measurable and available only when cash is received by the city. A deferred inflow of resources, shown as unavailable revenue, arises in the governmental funds balance sheet when potential revenue does not meet both the measurable and available criteria for recognition in the current year. This unavailable revenue consists primarily of uncollected property taxes and assessments not deemed available to finance operation of the current period. In the government-wide Statement of Activities, 45 City of Tigard, Oregon Notes to Basic Financial Statements with a full accrual basis of accounting, revenue must be recognized as soon as it is earned regardless of its availability. Thus, the liability created on the governmental fund balance sheet for unavailable revenue is eliminated. Similar to the way revenues are recorded, governmental funds only record those expenditures that affect current financial resources. Principal and interest on general long-term debt is recorded as a fund liability only when due, or to the extent that it is expected to be liquidated with expendable financial resources. However, in the government-wide financial statements with full accrual basis of accounting, all expenditures affecting the economic resource status of the government must be recognized. Thus, the expense and related accrued liability for long-term portions of debt, interest, other postemployment benefits and compensated absences must be included. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government-wide statements’ governmental column, a reconciliation is necessary to explain the adjustments needed to transform the fund-based financial statements into the governmental column of the government-wide presentation. This reconciliation is part of the basic financial statements. Interfund activity consists of transfers, service provided and/or used, reimbursements, advances and loans. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between enterprise and various other city functions. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services, and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the city’s Sanitary Sewer, Stormwater and Water Funds are charges to customers for sales and services. The Sanitary Sewer, Stormwater and Water Funds recognize fees intended to recover the cost of connecting new customers to the city’s utility systems as non-operating revenues. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and overheads, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The fiduciary fund accounts for the resources held by the city in a custodial capacity, on behalf of the employees of the city. When both restricted and unrestricted resources are available for use, it is the city’s policy to use restricted resources first, then unrestricted resources as they are needed. 46 City of Tigard, Oregon Notes to Basic Financial Statements New Accounting Pronouncements and Accounting Standards During the fiscal year ended June 30, 2016, the city implemented the following GASB pronouncements: GASB Statement No. 72, Fair Value Measurement and Application This statement establishes a framework for measuring fair value and establishes a reporting hierarchy to maximize the use of observable inputs and minimize the use of unobservable input when measuring fair value. The city implemented this standard for fiscal year ending June 30, 2016. See Note 3 for additional information. GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. This statement reduces the GAAP hierarchy to two categories of authoritative GAAP and addresses the use of authoritative and nonauthoritative literature in the event that the accounting treatment for a transaction or other event is not specified within a source of authoritative GAAP. This statement supersedes Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The city implemented this statement for fiscal year ending June 30, 2016 and implementation is applied retroactively. This statement did not have a significant impact on the city’s financial statements. GASB Statement No. 79, Certain External Investment Pools and Pool Participants This statement establishes criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial reporting purposes. The city implemented this standard for fiscal year ending June 30, 2016. See Note 3 for additional information. The following pronouncements have been issued by the Governmental Accounting Standards Board (GASB) but not yet implement by the city: GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that Are Not within the Scope of GASB Statement 68 and Amendments to Certain Provisions of GASB Statements 67 and 68. This statement establishes accounting and financial reporting standards for pensions that don’t meet the requirements set out in GASB Statements No. 67 and 68, and makes some modifications to GASB Statements No. 67 and 68. GASB Statement No. 73 will be effective for the city, fiscal year ending June 30, 2016 for the provisions that amend GASB Statements No. 67 and 68. The provisions that effect pensions not within the scope of GASB Statement No. 67 and 68 will be effective for the city, fiscal year ending June 30, 2017. GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans This statement this statement replaces Statements No. 43, Financial Reporting for Postemployment 47 City of Tigard, Oregon Notes to Basic Financial Statements Benefit Plans Other Than Pension Plans, as amended, and Statement No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans. It also includes requirements for defined contribution OPEB plans that replace the requirements for those OPEB plans in Statement No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, as amended, Statement No. 43, and Statement No. 50, Pension Disclosures. GASB Statement No. 74 will be effective for the city, fiscal year ending June 30, 2017. GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pension This statement replaces the requirements of Statements No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and Statement No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans, for OPEB. Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans , establishes new accounting and financial reporting requirements for OPEB plans. GASB Statement No. 75 will be effective for the city, fiscal year ending June 30, 2018. GASB Statement No. 77, Tax Abatements This statement defines a tax abatement and contains required disclosures about a reporting government’s own tax abatement agreements and those that are entered into by other governments and that reduce the reporting government’s tax revenues. This statement is effective for the fiscal year ending June 30, 2017. The city is in the process of assessing the impact of this standard on the financial statements. GASB Statement No. 78, Pensions Provided Through Certain Multiple-Employer Defined Benefits Pension Plans This statement amends Statement No. 68, Accounting and Financial Reporting for Pensions, to exclude pensions provided to employees of state or local governmental employers through a cost-sharing multiple-employer defined benefit pension plan that (1) is not a state or local governmental pension plan, (2) is used to provide defined benefit pensions both to employees of state or local governmental employers and to employees of employers that are not state or local governmental employers and (3) has no predominant state or local governmental employers. This statement establishes requirements for recognition and measurement of pension expense, expenditures, and liabilities and note disclosures; and requirement supplementary information for pensions that have the characteristics described above. This statement is effective for the city for June 30, 2017. GASB Statement No. 80, Blending Requirements for Certain Component Units – an amendment of GASB Statement No. 14 This statement improves financial reporting by clarifying financial statement presentation requirements for certain component units. This statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. This statement is 48 City of Tigard, Oregon Notes to Basic Financial Statements effective for June 30, 2017. The city does not anticipate this standard will have a significant impact on the financial statement presentation. GASB Statement No. 81, Irrevocable Split-Interest Agreements This statement improves accounting and reporting for irrevocable split-interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. Examples of these types of agreements include charitable lead trusts, charitable remainder trusts and life-interests in real estate. This statement is effective for fiscal year ending June 30, 2018. The city has not yet evaluated the impact of this standard to the financial statements. GASB Statement No. 82, Pension Issues – an amendment of GASB Statements No. 67, 68 and 73. This statement addresses certain issues that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, Statement No. 68, Accounting and Financial Reporting for Pensions, and Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. Specifically, this Statement addresses issues regarding (1) the presentation of payroll-related measures in the required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contributions requirements. This Statement is effective for June 30, 2017, except for the requirements of this Statement for the selection of assumptions in a circumstance in which an employer’s pension liability is measured as of a date of other than the employer’s most recent fiscal year-end. The city is in the process of evaluating the impact of this standard on the financial statements. Assets, Deferred Outflows/Inflows of Resources, Liabilities, and Net Position/Fund Balance Cash and Investments Cash and cash equivalents are generally considered short-term, highly liquid investments with a maturity of three months or less from the purchase date. The city’s cash and cash equivalents consists of cash on hand, demand deposits and cash deposits that are held in an investment pool, Local Government Investment Pool, that has the general characteristic of a demand deposit account (deposits of additional cash may be made at any time and cash may be withdrawn at any time without prior notice or penalty). Interest earned on cash and cash equivalents is allocated monthly based on each fund’s average cash balance as a proportion of the city’s total. For purposes of the statement of cash flows, the city considers the proprietary funds’ cash and cash equivalents to be cash on hand, demand deposits and cash deposits that are held in an investment pool with original maturities of three months or less. 49 City of Tigard, Oregon Notes to Basic Financial Statements Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. Interest earned on investments is allocated monthly based on each fund’s average cash balance as a proportion of the city’s total cash and investments. The city reports cash with fiscal agent and certain cash and investments as restricted because their use is limited by parties external to the city. Restrictions may be from bond proceeds, imposed by creditors, other governments, laws and/or enabling legislation. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “Advances to/Advances from other funds”. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Property taxes are levied and become a lien on July 1. Collection dates are November 15, February 15, and May 15 following the lien date. Discounts are allowed if the amount due is received by November 15 or February 15. Taxes unpaid and outstanding on May 16 are considered delinquent. The city also has receivables outstanding for assessments on private property. These assessments include street and sidewalk improvements, sewer line installations and deferral of certain impact fees (system development charges). Proprietary fund receivables are recorded as revenue when earned, including services earned but not billed. The receivables of proprietary funds include billing for residential and commercial customers utilizing the city’s water, sanitary sewer and stormwater management services. The city’s receivables, including property taxes, assessments and proprietary fund receivables are deemed to be substantially collectible. Tax and assessments receivable can be recovered through foreclosure on the subject property. Services can be disconnected if proprietary fund receivables remain unpaid. Accordingly, no allowance for doubtful accounts is deemed necessary for these receivables. The city records a receivable and related allowance for municipal court accounts receivable. Accounts payable to vendors and contractors include general accounts payable, retainage payable, deposits payable and other accrued liabilities not included in short-term or long-term liabilities. Inventories and Prepaids Inventories of parts, materials and supplies are stated at cost on the first-in, first-out basis, in the proprietary funds. The consumption method is used in accounting for inventory for all funds on the budgetary basis. The consumption method is used for the government-wide presentation as well as the proprietary funds and business-type activities. 50 City of Tigard, Oregon  Notes to Basic Financial Statements    Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as  prepaids in both government‐wide and fund financial statements.  Payments classified as prepaid are  primarily items that are being amortized such as prepaid insurance.    Property Held for Resale    Property held for resale is recorded as an asset and includes land and building inventory stated at the  lower of cost or market.  At year‐end no reductions in value were necessary, therefore recorded  amounts were equal to original cost.    Capital Assets    Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads,  pathways, street lights, etc.) are reported in the applicable governmental or business‐type activities  columns in the government‐wide financial statements, and in the proprietary fund statements.    Capital assets are charged to expenditures as purchased or constructed in the governmental fund  statements, and capitalized in the proprietary fund statements.  Capital assets are recorded at historical  cost or estimated historical cost.  Donated assets are recorded at estimated fair market value as of the  date of the donation.    Capital assets are defined by the city as assets with an initial, individual cost of $5,000 or more, and an  estimated useful life of greater than one year.  Additions or improvements and other capital outlays that  significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are  capitalized.  Other costs for repairs and maintenance are expensed as incurred.    Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities  with accumulated depreciation reflected in the Statement of Net Position and is provided on the  straight‐line basis over the following estimated useful lives:    Asset Years     Buildings and improvements 25‐40  Improvements other than buildings 10‐20  Machinery and equipment 5‐10  Autos and trucks 5‐10  Infrastructure 20‐40  Deposits  In general deposits represent developer funds collected by the city, primarily when issuing permits for  new construction and infrastructure development.  Various funds report deposits, including the General  Fund, Gas Tax Fund, Electrical Inspection Fund, Building Fund and Urban Forestry Fund.  Deposits are  held by the city until the obligations for the projects have been completed or forfeited for non‐ compliance with development requirements as determined by city inspection staff.       51 City of Tigard, Oregon Notes to Basic Financial Statements Unearned Revenues Unearned revenues will be recognized as revenue in the fiscal year they are earned in accordance with the accrual basis of accounting. Revenue is considered earned when all eligibility criteria are met, and the amount is measurable. Deferred Outflows/Inflows of Resources Deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. Deferred outflows of resources follows assets on the Statement of Net Position. Deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. In the Statement of Net Position, this includes resources that are received before the city has met eligibility requirements related to time. In the governmental fund financial statements, deferred inflows of resources include revenues that are measureable but not available. For purposes of measuring the net pension (asset) liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Oregon Public Employees Retirement System (OPERS) and additions to/deductions from OPERS’s fiduciary net position have been determined on the same basis as they are reported by OPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Accrued Compensated Absences It is the city’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave, since the city does not have a policy to pay any amounts when employees separate from the city. Vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only when it has matured, for example, as result of employee resignations or retirements. Long-term Debt In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type in the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are treated as period costs in the year of issue. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as 52 City of Tigard, Oregon Notes to Basic Financial Statements other financing sources while premiums and discounts on debt issuances are reported as other financing sources and uses, respectively. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Other Post-Employment Benefits (OPEB) The city’s net OPEB obligation is recognized as a long-term liability in the government-wide financial statements, the amount of which is actuarially determined. Net Pension Liability The city reports its proportionate share of the Net Pension Liability of the Oregon Public Employees Retirement System (OPERS). A negative Net Pension Liability is reported as a Net Pension Asset. The net pension asset/liability is measured as the portion of the present value of projected benefits payment to be provided through the pension plan to current active and inactive qualifying employees that is attributed to those employees past periods of service less the amount of the pension plan’s fiduciary net position. Contributions Capital contributions from developers are credited to contribution revenue and the related capital assets are recorded in the government-wide financial statements. Fund Balances and Net Position In the fund financial statements, the fund balance for governmental funds is reported in a hierarchy of classifications based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The city reports fund balances into the following categories: Nonspendable for resources cannot be spent because they are either in a nonspendable form or legally or contractually required to be maintained intact. Resources in nonspendable form include inventories, prepaids, deposits, advances from internal loans and property assets held for resale. Restricted for amounts with constraints placed on the use of resources are either (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Committed for amounts that City Council passes an ordinance or council resolution, a formal action made by the entity’s highest level of decision making authority, which places specific constraints on how the resources may be used. Resolutions and ordinances are considered equally binding in that the City Council can modify or rescind the ordinance or resolution at any time through passage of an additional ordinance or resolution. Assigned for resources that are constrained by the government’s intent to use them for a specific purpose, but are neither restricted nor committed, are reported as assigned fund balance. The City Council expresses their intent to use a resource for a specific purpose by including that resource in the 53 City of Tigard, Oregon Notes to Basic Financial Statements adopted annual budget for funds outside of the General Fund. Assigned fund balances are not reported in the General Fund as the city has not established a policy regarding the assignment of funds. Unassigned fund balance is the residual classification for the General Fund. This classification represents fund balance that is not assigned, committed, restricted or nonspendable within the General Fund. This classification is also used to report any deficit fund balance amounts in other governmental funds. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the city considers restricted amounts to have been spent. Likewise, when an expenditure is incurred for purposes for which either committed or assigned fund balance is available, the city considers committed or assigned amounts to have been spent. On the government-wide Statement of Net Position, the proprietary funds’ Statement of Net Position, and the fiduciary funds’ Statement of Fiduciary Net Position, net position is segregated into restricted and unrestricted balances. Restrictions are limitations on how the net position may be used. Restrictions may be placed on net position by an external party that provided the resources, by enabling legislation or by the nature of the asset. The net investment in capital assets component of net position represents total capital assets less accumulated depreciation less debt directly related to capital assets. This amount is reported on the Statement of Net Position and in the financial statements for Proprietary Fund types. Use of Estimates In preparing the city’s financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates. Fund Types: The city's financial operations are accounted for in the following funds: Governmental funds Governmental funds finance most governmental functions of the city. The acquisition, use and balances of the city’s expendable financial resources and the related liabilities, excluding those accounted for in proprietary funds, are accounted for through governmental funds. The measurement focus is upon determination of changes in current financial resources, rather than upon net position determination. The following are the city’s major governmental funds: General Fund - This fund accounts for the city's general operations. It is used to account for all transactions not specifically required to be accounted for in the city's other funds. Gas Tax Fund – This special revenue fund records shared revenues from the state and county taxes on the sale and use of motor vehicle fuel. Funds are used for construction, reconstruction, improvement, 54 City of Tigard, Oregon Notes to Basic Financial Statements repair, maintenance, operation and use of public highways, roads, streets, and roadside rest areas. Monies may also be used for street lighting and cleaning, storm drainage, traffic control devices and administration costs. Proprietary funds Proprietary funds are used to account for the acquisition, operation and maintenance of sewer, storm drainage, and water systems in the city. These funds are entirely or predominantly self-supported through user charges to customers. The measurement focus is upon net income determination, rather than upon determination of changes in current financial resources. The following enterprise funds are the city’s major proprietary funds: Enterprise funds: Sanitary Sewer Fund - This fund accounts for the city's sewer utility operations. Stormwater Fund – This fund accounts for the city’s storm drainage operations which consists of the following two budgetary funds: Stormwater Fund and Water Quality/Quantity Fund. Water Fund - This fund accounts for the city’s water operations which consists of the following four budgetary funds: Water Fund, Water SDC Fund, Water CIP Fund and Water Debt Service Fund. Additionally, the city reports the following fund types: Nonmajor governmental funds: Special Revenue funds account for restricted or committed revenues for specific purposes. Debt Service funds account for the accumulation of resources to pay principal and interest on the city’s long-term obligations. Capital Projects funds account for the accumulation of resources for construction or acquisition of facilities and equipment. Internal service funds Internal service funds account for goods and services provided by one city department to another on a cost reimbursement basis. The internal service funds account for the activities of health insurance for employees, liability insurance, workers’ compensation insurance, facilities and fleet and support and administrative services. Fiduciary Fund Fiduciary funds focus on net position and changes in net position. The city’s fiduciary fund is the defined contribution pension plan for the benefit of employees. 55 City of Tigard, Oregon Notes to Basic Financial Statements 2. Stewardship, Compliance and Accountability Budgetary information A budget is prepared for each fund, except for the Pension Trust Fund, under the modified accrual basis of accounting used by governmental funds, which is in accordance with the legal requirements of Oregon Local Budget Law. The resolution authorizing appropriations sets the maximum level of expenditures for each fund and may not legally be over expended. Appropriations lapse at the end of each fiscal year. Appropriations are made at the major program level for each fund, for example, Community Services, Public Works, Community Development, Policy and Administration, Debt Service, Capital Improvements and Contingency. The detail budget document is required to contain more detailed information for the above-mentioned expenditure categories. After budget approval, the City Council may approve supplemental budgeted appropriations if an occurrence, condition, or need exists which had not been ascertained at the time the budget was adopted. A supplemental budget may require hearings before the public, publications in newspapers and approval by the City Council. Original and supplemental budgets may be modified by the use of appropriations transfers between the levels of control. Such transfers require approval by the City Council. Management may not amend the budget without council approval. The City Council approved four supplemental budgets throughout the fiscal year. For GAAP presentation, the transfers from non-operating funds for services provided by the internal service funds and the General Fund are considered revenues and expenses/expenditures, as appropriate, but may be considered to be interfund transfers for budgetary purposes. Expenditures in Excess of Appropriations and Deficit Fund Balance Oregon state law requires disclosure of fund expenditures in excess of budgeted appropriations. For the year-ended June 30, 2016, expenditures exceeded appropriations in the Urban Forestry special revenue fund by $4,296. This over-expenditure was due to timing of an unplanned refund to a developer. The over expenditure was covered by available fund balance. The Urban Renewal Agency Capital Projects reported a deficit fund balance $617,329 on a GAAP basis as June 30, 2016. This deficit is due to internal loans from the General Fund and the Sewer Fund that have been spent on activities in the downtown urban renewal district. The loans or advances are repaid over time with future revenues from tax increment collections. For additional details on advances and interfund transactions see Note 7. 3. Cash and Investments The city maintains a cash and investment pool that is available for use by all funds except the Pension Trust Fund. Each fund type's portion of this pool is displayed on the combined balance sheet as "cash and investments". Unrestricted and restricted cash and investments for the primary government are reported in governmental and business-type activities. Restricted balances reported in cash and 56 City of Tigard, Oregon Notes to Basic Financial Statements investments are restricted by legal or contractual requirements. Restricted investments reported in fiduciary activities represent the Pension Trust Fund. These investments are for the city’s defined contribution plan and held separately from city funds and managed by a third party. Cash and investments, restricted and unrestricted, at June 30, 2016: Type Primary Government Fiduciary Activities Total State Investment Pool (LGIP) $ 64,285,715 $ - $ 64,285,715 Money markets 5,887,879 - 5,887,879 Deposits with financial institutions 5,995,779 - 5,995,779 Cash with fiscal agent 47,759 47,759 Petty cash/cash on hand 6,367 - 6,367 Total cash and cash equivalents 76,223,499 - 76,223,499 U.S. Agencies 7,019,464 - 7,019,464 Collective trust/stable value fund - 5,580,761 5,580,761 Corporate bonds 2,777,753 859,294 3,637,047 Corporate stocks - 17,528,340 17,528,340 Total investments 9,797,217 23,968,395 33,756,612 Total cash, cash equivalents & investments $ 86,020,716 $ 23,968,395 $109,989,111 Governmental Business Type Fiduciary Activities Activities Activities Total Cash and cash equivalents $ 18,525,783 $ 21,146,963 $ - $ 39,672,746 Restricted cash and cash equivalents 17,312,524 19,238,229 - 36,550,753 Total cash and cash equivalents 35,838,307 40,385,192 - 76,223,499 Investments 3,260,559 3,788,098 - 7,048,657 Restricted investments 1,902,207 846,353 23,968,395 26,716,955 Total investments 5,162,766 4,634,451 23,968,395 33,765,612 Total cash, cash equivalents and investments $ 41,001,073 $ 45,019,643 $ 23,968,395 $ 109,989,111 Unrestricted Restricted Total Government activities $ 21,786,342 $ 19,214,731 $ 41,001,073 Business-type activities 24,935,061 20,084,582 45,019,643 Total primary government 46,721,403 39,299,313 86,020,716 Fiduciary funds - 23,968,395 23,968,395 Total cash and investments $ 46,721,403 $ 63,267,708 $ 109,989,111 57 City of Tigard, Oregon Notes to Basic Financial Statements Deposits Custodial Credit Risk. There is a risk that, in the event of a bank failure, the city’s deposits may not be returned. Cash with financial institutions include bank demand deposits and bank money market accounts. The combined total book balance at June 30, 2016 was $11,883,658 and the total bank balance is $12,097,091. Of these deposits, $500,000 was covered by federal depository insurance and $11,597,091 was collateralized in accordance with Oregon Revised Statutes (ORS) 295. The Federal Depository Insurance Corporation (FDIC) provides deposit insurance up to $250,000 for each institution. Institutions with deposits in excess of FDIC coverage participate in the Oregon Public Funds Collateralization Program (PFCP) as defined in Oregon Revised Statutes (ORS) 295. This provides additional protection for public funds in the event of a bank failure, although it does not guarantee 100% protection. The Office of the State Treasurer categorizes the financial institutions in Oregon. Based on that categorization, banks must pledge collateral valued at between 10% and 110% of their public fund deposits. In the event of a bank failure, the entire pool of collateral pledged by all qualified Oregon public funds bank depositories is available to repay deposits of public funds of government entities. The Office of the State Treasurer maintains a list of qualified financial institutions for the deposit of public funds in excess of FDIC insurance. The financial institutions holding city deposits are noted on the State Treasurer’s qualified list. The city’s investment policy states bank deposits with any one qualified institution shall not exceed 20% of the portfolio. In addition, the policy states bank deposits of any one qualified financial institution shall not exceed 1% of the institution’s total assets. The city is in compliance with this policy at year-end. Investments State statutes authorize the city to invest primarily in general obligations of the U.S. government and its agencies, certain bonded obligations of Oregon municipalities, bank repurchase agreements, bankers’ acceptances, certain commercial paper and corporate bonds and the State of Oregon Local Government Investment Pool. Annually, the city adopts an investment policy in connection with the budget process. The Local Government Investment Pool (LGIP) is administered by the Oregon State Treasury. The LGIP is an open-ended no-load diversified portfolio offered to any agency, political subdivision or public corporation of the State who by law is made the custodian of, or has control of, any fund. The LGIP is commingled with the State's short-term funds. In seeking to best serve local governments of Oregon, the Oregon Legislature established the Oregon Short-Term Fund Board, which is not registered with the U.S. Securities and Exchange Commission as an investment company. The purpose of the Board is to advise the Oregon State Treasury in the management and investment of the LGIP. The Oregon Audits Division of the Secretary of State’s Office audits the LGIP annually. For fiscal year ending June 30, 2016, the city implemented GASB Statement No. 79, Certain External Investment Pools and Pool Participants. This statement required the city to value its proportionate share in the LGIP at fair value. At June 30, 2016, the city’s fair value in the LGIP was $64,285,715. Financial statement for the Oregon Short-Term Fund can be found on line at: http://www.oregon.gov/treasury/Divisions/Investment/Pages/Oregon-Short-Term-Fund-(OSTF).aspx 58 City of Tigard, Oregon Notes to Basic Financial Statements In accordance with the implementation of GASB Statement No. 72, Fair Value Measurement and Application, the city categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets; Level 2 inputs are significant other observable inputs; Level 3 are significant unobservable inputs. The city has the following investments and recurring fair value measurements as of June 30, 2016:  U.S. Agencies at $7,019,464 are valued using a matrix pricing model (Level 2).  Corporate Bonds at $2,777,753 are valued using a matrix pricing model (Level 2). The LGIP includes investments in external investment pools and does not meet the requirements for “leveling” disclosures as established in GASB Statement No. 72. Therefore, fair value of the LGIP is determined by the pool’s underlying portfolio. The city’s Pension Trust Fund accounts for the defined contribution pension plan for eligible employees. The employees direct the investment options within the plan. Funds invested in the plan are for the sole benefit of the employee and therefore restricted. At June 30, 2016 the total restricted investments in the pension plan were $23,968,395. The value of the pension plan’s investments at year-end are measured at fair value by a third party custodian based on the net asset value of the individual mutual funds, and therefore, are not classified within the fair value hierarchy noted above. Interest rate risk. In accordance with its investment policy, the city manages its exposure to declines in fair value by limiting the individual maturities in its investment portfolio to eighteen months or less. The city’s investment policy states that at least 30% of the portfolio can have maturities less than ninety days and up to 20% of the portfolio can have maturities from eighteen months to thirty-six months. Per the policy, no investments will be made for a period to exceed thirty-six months. The city does not actively trade investments, usually holding them to maturity. The city was in compliance with its policy at year-end. At June 30, 2016, the city had the following investments and maturities at fair value: Investment Type Fair Value Risk Concentration Weighted Average Maturity (in months) Local Government Investment Pool (LGIP) * $ 64,285,715 87% < 1 U.S. Agencies 7,019,464 9% 1.75 Corporate Bonds 2,777,753 4% < 1 Total investments $ 74,082,932 100.00% Portfolio weighted average maturity 1.98 * LGIP is considered an investment per the city’s investment policy. For financial reporting, LGIP is considered cash and cash equivalents due to the liquid nature of the accounts. 59 City of Tigard, Oregon Notes to Basic Financial Statements Concentration of credit risk: Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. The city’s policy for investing in individual issuers varies depending on the type of investments. Following are maximum instrument diversification per city policy. At year-end the city was in compliance with this policy.  U.S. Agency securities are restricted to no more than 90%  Certificates of deposit are restricted to no more than 25%  Corporate bonds are restricted to no more than 35%. In addition, investments in corporate bonds of any one issuer may not exceed 5% of the investment portfolio. Credit risk: For an investment, this is the risk that, in the event of failure of the counterparty, the city will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. All of the city’s investments, except for the Local Government Investment Pool, are held in safekeeping by the financial institution in the city’s name. The city’s policy, which adheres to State of Oregon law, is to limit its Corporate and Municipal investments to the following: Issuers within Oregon must be rated “A” (bonds) or A-2 / P-2 (commercial paper) or better by Standard and Poor’s, Moody’s Investors Service or any other nationally recognized statistical rating organization. Issuers not in Oregon must be rated AA / Aa (bonds) or A-1 / P-1 (commercial paper) or better. At June 30, 2016, the city’s investments were rated as follows: Investment Type Moody's S & P Fitch Fair Value % of Fair Value State Investment Pool (LGIP) N/R N/R N/R $ 64,285,715 86.78% Corporate Bonds * Aa3 AA- A 501,215 0.68% Corporate Bonds A3 A- A+ 759,472 1.03% Corporate Bonds A1 AA+ N/R 506,570 0.68% Corporate Bonds A1 AA+ N/R 505,505 0.68% Corporate Bonds A1 AA+ AA- 504,990 0.68% US Agency N/R N/R N/R 1,000,340 1.35% US Agency AAA AA+ AAA 1,004,520 1.36% US Agency AAA AA+ N/R 1,000,770 1.35% US Agency AAA AA+ N/R 503,255 0.68% US Agency N/R N/R N/R 504,075 0.68% US Agency N/R N/R N/R 1,003,560 1.35% US Agency N/A AA+ N/R 500,100 0.68% US Agency N/A AA+ N/R 500,455 0.68% US Agency AAA N/A N/R 1,002,390 1.35% Total investments $ 74,082,932 100.00% * Investment in corporate bond was out of compliance for credit risk with the city’s investment policy at June 30, 2016, however this investment was in compliance with the city’s policy at the initial purchase date. 60 City of Tigard, Oregon Notes to Basic Financial Statements At year-end the city held the following restricted and unrestricted cash and investments: June 30, 2016 Investments $ 9,797,217 Local Government Investment Pool 64,285,715 Deposits with financial institutions 11,883,658 Petty cash 6,367 Cash with fiscal agent 47,759 Total primary government cash and investments 86,020,716 Statement of Fiduciary Net Position - Pension Trust Fund 23,968,395 Total cash and investments $ 109,989,111 4. Accounts Receivable Accounts receivable as of June 30, 2016 for the city’s individual major funds, nonmajor and internal service funds in the aggregate, including the applicable allowances for uncollectible accounts are noted below: General Fund Gas Tax Fund Non-major Funds Internal Service Funds Total Governmental Activities Business- type Activities Total Receivables: Property taxes $ 667,815 $ - $ 124,730 $ - $ 792,545 $ - $ 792,545 Accounts 1,215,998 3,107 379,778 22,231 1,621,114 4,599,488 6,220,602 Court 2,699,406 - - - 2,699,406 - 2,699,406 Intergovernmental 641,705 273,412 138,042 - 1,053,159 - 1,053,159 Interest 7,089 492 2,232 290 10,103 6,881 16,984 Assessment liens - - 425,488 - 425,488 - 425,488 Gross receivables 5,232,013 277,011 1,070,270 22,521 6,601,815 4,606,369 11,208,184 Less: allowance for discounts and uncollectible amounts (2,024,556) - - - (2,024,556) - (2,024,556) Net total receivables $ 3,207,457 $ 277,011 $ 1,070,270 $ 22,521 $ 4,577,259 $ 4,606,369 $ 9,183,628 Under State of Oregon statutes, municipal court receivables are valid for ten years and are then renewable for another ten years. According to city policy, these receivables are turned over to an external collection agency after approximately 180 days. Historical collection percentages average about 25%. Accordingly, at June 30, 2016, $2,699,406 was outstanding for municipal court receivables with a related allowance for doubtful accounts of $2,024,556. Assessment liens receivable represent the uncollected amounts levied against benefited property for the cost of local capital improvements. Because the assessments are liens against the benefited property, an allowance for uncollectible amounts is not deemed necessary. Substantially all assessments are payable over a period of 10 to 20 years. Assessments bear interest from 5.2 to 9.4 percent. At June 30, 2016, the portion of the assessments receivable balance that represents delinquent accounts is insignificant. 61 City of Tigard, Oregon Notes to Basic Financial Statements 5. Capital Assets Capital asset activity for governmental activities for the year ended June 30, 2016 was as follows: Balances Balances Governmental activities June 30, 2015 Additions Deletions Transfers June 30, 2016 Non-depreciable: Land $ 25,917,639 $ - $ (28,415) $ - $ 25,889,224 Construction in progress 7,147,531 5,197,957 - (8,894,231) 3,451,257 Total non-depreciable 33,065,170 5,197,957 (28,415) (8,894,231) 29,340,481 Depreciable: Building and improvements 23,609,707 154,213 (437,932) 18,075 23,344,063 Land improvements 8,498,397 - (105,604) 368,149 8,760,942 Machinery and equipment 2,644,801 30,665 (42,120) - 2,633,346 Autos and trucks 2,593,859 293,931 (197,904) - 2,689,886 Office equipment 2,556,217 116,120 (176,700) - 2,495,637 Infrastructure 229,827,892 4,015,945 - 8,508,007 242,351,844 Total depreciable 269,730,873 4,610,874 (960,260) 8,894,231 282,275,718 Accumulated depreciation: Building and improvements (8,001,382) (656,000) 288,651 - (8,368,731) Land improvements (5,931,299) (489,405) 105,601 - (6,315,103) Machinery and equipment (2,154,965) (199,829) 42,120 - (2,312,674) Autos and trucks (1,887,971) (228,770) 197,905 - (1,918,836) Office equipment (1,510,385) (199,198) 176,700 - (1,532,883) Infrastructure (69,412,538) (3,529,918) - - (72,942,456) Total accumulated depreciation (88,898,540) (5,303,120) 810,977 - (93,390,683) Governmental activities capital assets, net $213,897,503 $ 4,505,711 $ (177,698) $ - $218,225,516 Depreciation expense for governmental activities is charged to functions as follows: Community services $ 382,466 Public works 4,714,089 Community development 7,305 Policy and administration 199,260 Total depreciation for governmental activities $5,303,120 62 City of Tigard, Oregon Notes to Basic Financial Statements Capital assets activity for business-type activities for the year ended June 30, 2016, was as follows: Balances Balances Business-type activities June 30, 2015 Additions Deletions Transfers June 30, 2016 Non-depreciable: Land $ 5,237,285 $ - $ - $ - $ 5,237,285 Construction in progress 131,543,902 28,427,795 (65) (1,265,548) 158,706,084 Total non-depreciable 136,781,187 28,427,795 (65) (1,265,548) 163,943,369 Depreciable: Building and improvements 2,010,974 - (131,241) - 1,879,733 Sewer system 27,422,488 595,178 - 78,143 28,095,809 Stormwater system 17,440,686 1,459,167 - 187,273 19,087,126 Water system 63,472,079 870,210 - 1,000,132 65,342,421 Equipment 1,849,819 80,150 (131,690) - 1,798,279 Auto and trucks 1,796,998 - - - 1,796,998 Total depreciable 113,993,044 3,004,705 (262,931) 1,265,548 118,000,366 Accumulated depreciation: Building and improvements (1,197,710) (47,261) 98,852 - (1,146,119) Sewer system (10,543,459) (638,867) - - (11,182,326) Stormwater system (7,773,007) (458,332) - - (8,231,339) Water system (28,462,966) (1,301,253) - - (29,764,219) Equipment (1,613,842) (72,363) 131,690 - (1,554,515) Auto and trucks (1,561,882) (49,986) - - (1,611,868) Total accumulated depreciation (51,152,866) (2,568,062) 230,542 - (53,490,386) Business-type activities capital assets, net $199,621,365 $ 28,864,438 $ (32,454) $ - $228,453,349 Total interest costs incurred in business-type activities in fiscal year ended June 30, 2016 was $5,722,965, of which $1,194,658 was capitalized to construction in progress for the Lake Oswego- Tigard water partnership project, for a net interest expense of $4,528,306. Depreciation expense for business-type activities is charged to activities as follows: Sanitary sewer $ 695,290 Stormwater 478,075 Water 1,394,697 Total depreciation for business-type activities $ 2,568,062 63 City of Tigard, Oregon Notes to Basic Financial Statements 6. Long-term Debt and Other Debt Governmental Activities General Obligation Bonds and Full Faith and Credit Bonds Library Bonds: In fiscal year 2010-2011 the city issued $8,655,000 of general obligation bonds, series 2011B, for a current refunding of bonds originally issued in 2002 to build a new library. Interest rates on the new bonds range from 3.0% to 4.0% on specific maturities. At June 30, 2016 the outstanding balance on the 2011B bonds was $5,525,000. Parks Bonds: In fiscal year 2010-2011 the city issued $17,000,000 of general obligation bonds, series 2011A at a premium of $297,213. The proceeds of the bonds were issued to acquire open spaces, protect and improve parklands. At least 80% of the bond proceeds went towards land acquisition for open spaces, parks or trail corridors with up to 20% towards improvements and development of park land. Interest rates range from 3.0% to 4.75% on specific maturities. At June 30, 2016, the outstanding balance on the bonds was $13,985,000 and the balance of the unamortized premium was $192,084. Transportation Bonds: In fiscal year 2009-2010 the city issued $7,250,000 of full faith and credit Build America Bonds. The bonds were issued to fund specific street and highway improvements. Interest rate on the bonds is set at 4.35%. At June 30, 2016 the outstanding balance on the bonds was $3,160,000. Future maturities of bond principal and interest on general obligation bonds and full faith and credit bonds are as follows: Year Ending June 30, Principal Interest Total 2017 $ 2,165,000 $ 920,560 $ 3,085,560 2018 2,235,000 845,043 3,080,043 2019 2,305,000 763,313 3,068,313 2020 2,390,000 667,713 3,057,713 2021 1,625,000 568,625 2,193,625 2022-2026 6,305,000 1,969,350 8,274,350 2027-2031 5,645,000 820,926 6,465,926 22,670,000 $ 6,555,530 $ 29,225,530 Premium 192,084 Total $ 22,862,084 64 City of Tigard, Oregon Notes to Basic Financial Statements Local Improvement District Bonds In fiscal year 2001-2002 the city issued Local Improvement District (LID) bonds in the amount of $1,307,969 for improvement on 69th Avenue. Interest rate on the LID bonds is 7.25%; payable first from assessments to benefited properties and second, from the general credit of the city. The balance of the LID bonds at June 30, 2016 was $296,319 with principal and interest payments as follows: Year Ending June 30, Principal Interest Total 2017 $ 83,100 $ 20,000 $ 103,100 2018 89,200 13,866 103,066 2019 95,800 7,279 103,079 2020 28,219 1,021 29,240 $ 296,319 $ 42,166 $ 338,485 Bank Loan Payable In fiscal year 2014-2015 the city entered into a financing agreement with a bank in the amount of $1,300,000 at an interest rate of 3.00%. The loan is for urban renewal projects within the City Center Urban Renewal Area (CCDA). In connection with the financing agreement, CCDA and the city executed an intergovernmental agreement (IGA) for CCDA to be obligated for the financing payments on the loan. The IGA constitutes indebtedness of the agency in the amount of the financing or $1,300,000. Pursuant to ORS 287A.310, the agency pledges the tax increment revenues to pay the financing payments or debt service. As of June 30, 2016, the balance outstanding on the bank loan was $1,170,000. Future principal and interest payments on the loan are as follows: Year Ending June 30, Principal Interest Total 2017 $ 130,000 $ 32,842 $ 162,842 2018 130,000 28,980 158,980 2019 130,000 25,118 155,118 2020 780,000 11,681 791,681 $ 1,170,000 $ 98,621 $ 1,268,621 Capital Lease The city entered into a lease/purchase agreement in fiscal year 2012-2013 to purchase a piece of street equipment. This lease agreement qualifies as a capital lease and has been capitalized in accordance with accounting principles generally accepted in the United States of America (GAAP). The asset was acquired at the purchase price of $71,091. At June 30, 2016 the net book value of the equipment is $28,397 ($71,091 less $42,694 of accumulated depreciation). The outstanding balance on the capital lease at June 30, 2016 is $30,290 and has an effective interest rate of 4.4%. 65 City of Tigard, Oregon Notes to Basic Financial Statements Future minimum lease payments on the capital lease are as follows: Year Ending June 30, Principal Interest Total 2017 $ 14,818 $ 1,337 $ 16,155 2018 15,472 683 16,155 $ 30,290 $ 2,020 $ 32,310 Business-type Activities Note Payable In fiscal year 2009-2010 the city was awarded $4,796,000 in federal funds under the American Recovery and Reinvestment Act (ARRA). These funds were distributed to the city as a loan, with 50% constituting an ARRA Forgivable Loan and 50% a low-interest loan under the Safe Drinking Water Revolving Loan Fund program. These ARRA funds were used to develop a city water reservoir. In fiscal year 2011-2012 the city drew down the funds that are considered the loan portion. The interest rate on the note payable is 3.0%. At June 30, 2016, the balance on the note payable was $2,007,952. Future debt service requirements are as follows: Year Ending June 30, Principal Interest Total 2017 $ 100,945 $ 60,239 $ 161,184 2018 103,973 57,210 161,183 2019 107,092 54,091 161,183 2020 110,305 50,878 161,183 2021 113,614 47,569 161,183 2022-2026 621,288 184,628 805,916 2027-2031 720,244 85,672 805,916 2032 130,491 3,915 134,406 $ 2,007,952 $ 544,202 $ 2,552,154 Water Project Financing In fiscal year 2010-2011 the City of Tigard’s City Council authorized up to $160 million in bonds to help finance a joint water supply project with the City of Lake Oswego to provide Tigard a share of a local water source. The arrangement with Lake Oswego to share a water system is referred to as the Lake Oswego/Tigard Water Partnership project. In fiscal year 2011-2012 the city issued $97,720,000 of water revenue bonds to be used to fund capital projects for the water system in connection with the Lake Oswego/Tigard Water Partnership project. The bonds were issued at a premium of $8,196,325 with interest rates from 3.0% to 5.0%. At June 30, 2016, the entire balance of the 2012 water revenue bonds was outstanding and the balance of the unamortized premium was $6,235,482. 66 City of Tigard, Oregon Notes to Basic Financial Statements In fiscal year 2014-2015 the city issued $30,810,000 of water revenue bonds with interest rates from 3.0% to 5.0%. The bonds were issued at a premium of $4,449,380. These bonds are the second of two borrowings by Tigard to help finance the joint water supply project with the City of Lake Oswego (Lake Oswego/Tigard Water Partnership project). At June 30, 2016, the entire balance of the 2015 water revenue bonds was outstanding and the balance of the unamortized premium was $4,237,826. Net water system revenues and system development charges for the Water System are pledged to the payment of principal of and interest on the revenue bonds. Revenues from the water system are pledged for repayment of these bonds. Net system revenues for fiscal year 2016 were $12,124,264 as compared to the total debt service of $6,098,088. The computation of water revenue bonds debt coverage is noted in the statistical section of this document on page 173. Interest rates on the bonds range from 3% to 5% on specific maturities. Future maturities of bond principal and premium and interest on the revenue bonds are as follows: Year Ending June 30, Principal Interest Total 2017 $ 2,030,000 $ 6,202,100 $ 8,232,100 2018 2,100,000 6,129,650 8,229,650 2019 2,185,000 6,043,950 8,228,950 2020 2,275,000 5,954,750 8,229,750 2021 2,370,000 5,861,850 8,231,850 2022-2026 13,495,000 27,657,925 41,152,925 2027-2031 17,220,000 23,928,525 41,148,525 2032-2036 22,080,000 19,064,250 41,144,250 2037-2041 28,360,000 12,790,250 41,150,250 2042-2046 36,415,000 4,733,625 41,148,625 $128,530,000 $118,366,875 $246,896,875 Unamortized premium 10,473,308 Total $139,003,308 67 City of Tigard, Oregon Notes to Basic Financial Statements Long-term liability activity including compensated absences for the year ended June 30, 2016 was as follows: Balances Balances Due in June 30, 2015 Additions Retirements June 30, 2016 one year Governmental activities Bonds payable $ 24,990,106 $ - $ 2,128,022 $ 22,862,084 $ 2,186,497 Special assessment debt 373,711 - 77,392 296,319 83,100 Bank loan payable 1,300,000 - 130,000 1,170,000 130,000 Capital lease 44,482 - 14,192 30,290 14,818 Long-term debt before other long-term liabilities 26,708,299 - 2,349,606 24,358,693 2,414,415 Compensated absences 1,261,892 1,683,760 1,646,172 1,299,480 1,250,075 Governmental activities total long-term liabilities $ 27,970,191 $ 1,683,760 $ 3,995,778 $ 25,658,173 $ 3,664,490 Business-type activities Note payable $ 2,105,957 $ - $ 98,005 $ 2,007,952 $ 100,945 Bonds payable 139,643,153 - 639,845 139,003,308 2,583,027 Long-term debt before other long-term liabilities 141,749,110 - 737,850 141,011,260 2,683,972 Compensated absences 165,096 146,066 170,478 140,684 136,069 Business-type activities total long-term liabilities $141,914,206 $ 146,066 $ 908,328 $141,151,944 $ 2,820,041 Expenditures for liquidating compensated absences liabilities are recorded in the General, Special Revenue, Enterprise and Internal Service funds. 7. Interfund Receivables, Payables and Transfers Interfund loan transactions between funds are recorded as “advances to” and “advances from” other funds. Interfund loans represent interim financing from the General Fund and the Sanitary Sewer fund to a capital project fund for various downtown development projects. Repayment of these transactions occurs in years subsequent to year-end. 68 City of Tigard, Oregon  Notes to Basic Financial Statements    The net effect of interfund loans is reported on the Statement of Net Position as Internal Balances.  The  composition of interfund loans and the related elimination as of June 30, 2016 are as follows:      Receivable Fund Payable Fund  Amount  Elimination   Net Balance  General Fund Nonmajor governmental fund $     655,183     $   (655,183) $                 ‐ Sanitary Sewer Fund Nonmajor governmental fund        102,495                       ‐  102,495     $    757,678  $   (655,183) $   102,495   Future maturities on the interfund loans are as follows:    Year Ending  Interfund Loans Elimination   Net Balance  June 30, Principal Interest Principal Interest Principal  Interest  2017  $               ‐    $     3,933  $               ‐ $     (3,420)      $               ‐   $      513 2018        ‐        3,933        ‐       (3,420)      ‐       513 2019       ‐         3,933        ‐       (3,420)      ‐       513 2020       ‐         3,933        ‐       (3,420)      ‐       513 2021       ‐       3,933        ‐     (3,420)      ‐    513 2022‐2026     63,201       19,594      (43,109)    (17,082)   20,092    2,512 2027‐2031     375,604       14,134 (324,488) (12,583)    51,116     1,551 2032‐2036        318,873             4,357 (287,586)         (4,044)    31,287   313  $  757,678  $   57,750 $   (655,183)$   (50,809) $  102,495 $  6,941     Interfund transfers are used to provide funds for debt service, contribute toward the cost of capital  projects and provide operational resources.  Transfers for fiscal year ended June 30, 2016 are as  follows:    Fund    Gas Tax    Nonmajor  Governmental Funds   Internal  Service   Sanitary  Sewer   Water   Total  Transfers Out  General $      15,987  $     3,063,973  $         6,640 $               ‐$  27,460 $ 3,114,060 Gas Tax                 ‐          272,214               ‐               ‐              ‐      272,214 Nonmajor funds   100,000      2,356,175   259,969   21               ‐   2,716,165 Internal Service                  ‐                 ‐   983               ‐                 ‐       983 Sanitary Sewer                  ‐            4,394   12,753               ‐     13,413        30,560 Stormwater                  ‐            55,509   25,574     83     17,878      99,044 Water                 ‐            460,566          286,166   ‐               ‐     746,732    Total transfers in $ 115,987 $ 6,212,831 $  592,085 $         104 $  58,751 $ 6,979,758                   69 City of Tigard, Oregon Notes to Basic Financial Statements Reconciliation: Transferred to governmental funds from: Sewer Fund $ 17,147 Stormwater Fund 81,083 Water Fund 746,732 Transferred from governmental funds to enterprise funds: From General Fund to Water Fund (27,460) From Non-major funds to Sewer Fund (21) Total transfers per Statement of Activities $ 817,481 These transfers have been eliminated in the government-wide statement of activities other than the net effect between governmental activities and business-type activities. 8. Post-Employment Benefits Other than Pensions (OPEB) Plan Description The city is required by Oregon Revised Statute 243.303 to provide retirees (if they elect) with group health and dental insurance coverage from the date of retirement age to age 65 at the same premium rates as offered to active city employees. The retiree is responsible for the premiums. Benefit provisions are established through negotiations between the city and representatives of collective bargaining units. The Governmental Accounting Standards Board Statement No. 45, Accounting and Financial Reporting by Employers for Post-employment Benefits Other Than Pensions, is applicable to the city due to the resulting implicit rate subsidy. This single-employer “plan” is not a stand-alone plan and there are no separately issued financial statements. The city does not provide any explicit employee benefits related to this plan. Funding Policy Retirees make premium payments to fund the plan to the extent of current-year insurance premium requirements on a pay-as-you-go basis. The city has not established an irrevocable trust to accumulate assets to fund the cost of the net OPEB obligation that arises from the implicit subsidy. The premium rates are set annually by the city’s insurance carrier. As of the actuarial report date August 1, 2014, six retirees and two spouses were participating in the plan. Annual OPEB Cost and Net OPEB Obligation The city’s annual OPEB cost is calculated based on the Annual Required Contribution (ARC) of the city, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities over a period of 15 years. The following schedule shows the components of the city’s annual OPEB cost for the year ending June 30, 2016, the amount actually contributed to the plan and the changes in the city’s OPEB obligation to the plan: 70 City of Tigard, Oregon Notes to Basic Financial Statements Annual Required Contribution (ARC) $ 362,848 Interest on prior year net OPEB contribution 56,451 Adjustment to ARC (193,934) Annual OPEB cost 225,365 Implicit benefit payments (82,822) Increase in net OPEB obligation 142,543 Net OPEB obligation - beginning of the year 1,612,873 Net OPEB obligation - end of the year $ 1,755,416 The city’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the current fiscal year and two prior were as follows: Funding Status and Funding Progress As of August 1, 2014, the most recent actuarial valuation, the plan was zero percent funded as the plan is funded on a pay-as-you-go basis. The actuarial liability for benefits was $1,808,960 and also equaled the unfunded actuarial liability (UAAL). Schedule of Funding Progress: Actuarial Valuation Date Actuarial Value of Plan Assets Actuarial Accrued Liability Unfunded Liability (UAAL) Funded Ratio Covered Payroll UAAL as a % of Payroll 08/01/08 $ - $ 1,725,443 $ 1,725,443 0% $ 16,248,354 10.6% 08/01/10 - 1,824,386 1,824,386 0% 17,783,627 10.3% 08/01/12 - 1,844,990 1,844,990 0% 18,629,041 9.9% 08/01/14 - 1,808,960 1,808,960 0% 20,753,905 8.7% The plan’s actuarial valuation involves estimates of amounts and assumptions about the probability of events far into the future, such as, future employment, mortality and healthcare cost trends. Amounts determined about the funding status of the plan and the annual required contributions are subject to % of Annual Year Ended Annual OPEB OPEB Cost Net OPEB June 30, Cost Contributions Obligation 2014 $ 295,164 26% $ 1,389,562 2015 305,940 27% 1,612,873 2016 224,365 37% 1,755,416 71 City of Tigard, Oregon Notes to Basic Financial Statements periodic revision as actual results for each period are compared with past expectations and new assumptions are made about the future. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan and include the health benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the city and plan members. The actuarial methods and assumptions include techniques that are designed to reduce the effects of short-term volatility in actuarial results consistent with the long term perspective of the calculations. In the August 1, 2014 valuation, the projected unit credit cost method was used. This method attempts to track the actual economic pattern of benefit accrual over an employee’s working lifetime. The investment return for the city was assumed to be 3.5% to reflect the long-term annual investment returns for the Oregon Local Government Investment Pool and comparable investment vehicles. The actuarial report incorporates the projected effect of the healthcare reform law, The Patient Protection and Affordable Care Act (PPACA), passed into law in March 2010. A significant item in the law begins in 2018 when the city’s plan may be subject to a 40% excise tax on the value of benefits provided above a certain dollar level. Because of some uncertainties in the excise tax component, the calculation of a precise obligation for this tax is impossible at this time. The report assumes medical and vision premium increases to be 5.75% in the first year. In future years, the medical and vision cost trend varies between 6.50% and 5.00% due to the timing of the excise tax scheduled to affect health care benefits beginning in 2018. The health care trend then settles to an ultimate rate of 4.75%. Dental premium increases were assumed to increase 4.5% in all future years. The city’s unfunded actuarial accrued liability (UAAL) is recalculated at each valuation date and amortized over a 10 year open period as a level percentage of payroll. A general inflation rate of 2.75% per year was used to develop other economic assumptions. 9. PERS Retirement Health Insurance Account Plan Description As a member of Oregon Public Employees Retirement System (OPERS) the city contributes to the Retirement Health Insurance Account (RHIA) for each of its eligible employees. RHIA is a cost-sharing multiple-employer defined benefit other postemployment benefit plan administered by OPERS. RHIA pays a monthly contribution toward the cost of Medicare companion health insurance premiums of eligible retirees. Oregon Revised Statute (ORS) 238.420 established this trust fund. Authority to establish and amend the benefit provisions of RHIA reside with the Oregon Legislature. The plan is closed to new entrants after January 1, 2004. OPERS issues a publicly available financial report that includes financial statements and required supplementary information. OPERS produces an independently audited CAFR which can be found at: http://www.oregon.gov/pers/Pages/section/financial_reports/financials.aspx 72 City of Tigard, Oregon Notes to Basic Financial Statements Funding Policy Because RHIA was created by enabling legislation (ORS 238.420), contribution requirements of the plan members and the participating employers were established and may be amended only by the Oregon Legislature. ORS require that an amount equal to $60 or the total monthly cost of Medicare companion health insurance premiums coverage, whichever is less, shall be paid from the Retirement Health Insurance Account established by the employer, and any monthly cost in excess of $60 shall be paid by the eligible retired member in the manner provided in ORS 238.410. To be eligible to receive this monthly payment toward the premium cost the member must: (1) have eight years or more of qualifying service in OPERS at the time of retirement or receive a disability allowance as if the member had eight years or more of creditable service in OPERS, (2) receive both Medicare Parts A and B coverage, and (3) enroll in a OPERS-sponsored health plan. An eligible surviving spouse or dependent of a deceased PERS retiree may receive the subsidy if he or she (1) is receiving a retirement benefit or allowance from PERS or (2) was insured at the time the member died and the member retired before May 1, 1991. Participating cities are contractually required to contribute to RHIA at a rate assessed each year by OPERS, currently 0.59 percent of annual covered payroll for Tier One/Tier Two, and 0.49 percent for OPSRP. The OPERS Board of Trustees sets the employer contribution rate based on the annual required contribution (ARC) of the employers, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45, Accounting and Financial Reporting by Employers for Post- employment Benefits Other Than Pensions. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) of the plan over a period not to exceed thirty years. The City’s contributions to RHIA equaled the required contributions each year and were: Fiscal Year RHIA Contributions 2014 $ 32,602 2015 32,789 2016 32,500 10. Pension Plan Oregon Public Employees Retirement Systems (OPERS) Plan Description City of Tigard Police Officers are provided with pensions through Oregon Public Employees Retirement System (OPERS); a cost-sharing multiple-employer defined benefit pension plan that acts as a common investment and administrative agent for government units in the State of Oregon. Police Officers hired before August 29, 2003 belong to the Tier One/Tier Two Retirement Benefit Program (established pursuant to ORS Chapter 238), while Officers hired on or after August 29, 2003 belong to the OPSRP Pension Program (established pursuant to ORS Chapter 238A). OPERS produces an independently audited CAFR which can be found at: http://www.oregon.gov/pers/Pages/section/financial_reports/financials.aspx 73 City of Tigard, Oregon Notes to Basic Financial Statements Benefits Provided Tier One/Tier Two Retirement Benefit Pension Benefits. The PERS retirement allowance is payable monthly for life. It may be selected from 13 retirement benefit options. These options include survivorship benefits and lump-sum refunds. The basic benefit is based on years of service and final average salary. For city sworn officers, 2.0% is multiplied by the number of years of service and the final average salary. Benefits may also be calculated under either a formula plus annuity (for members who were contributing before August 21, 1981) or a money match computation if a greater benefit results. A member is considered vested and will be eligible at a minimum retirement age for a service retirement allowance if he or she has had contribution in each of five calendar years or has reached at least 45 years of age before ceasing employment with a participating employer. Police members are eligible after reaching age 50. Tier One police member benefits are reduced if retirement occurs prior to age 55 with fewer than 25 years of service. Tier Two members are eligible for full benefits at age 60. The ORS Chapter 238 Defined Benefit Pension Plan is closed to new members hired on or after August 29, 2003. Death Benefits. Upon the death of a non-retired member, the beneficiary receives a lump-sum refund of the member’s account balance (accumulated contributions and interest). In addition, the beneficiary will receive a lump-sum payment from employer funds equal to the account balance, provided one or more of the following conditions are met:  the member was employed by a PERS employer at the time of death,  the member died within 120 days after termination of OPERS-covered employment,  the member died as a result of injury sustained while employed in a OPERS-covered job, or  the member was on an official leave of absence from a OPERS-covered job at the time of death. Disability Benefits. A member with 10 or more years of creditable service who becomes disabled from other than duty-connected causes may receive a non-duty disability benefit. A disability resulting from a job-incurred injury or illness qualifies a member for disability benefit regardless of the length of OPERS-covered service. Upon qualifying for either a non-duty or duty disability, service time is computed to age 55 for police members when determining the monthly benefit. Benefit Changes After Retirement. Members may choose to continue participation in a variable equities investment account after retiring and may experience annual benefit fluctuations due to changes in the market value of equity investments. Under ORS 238.360 monthly benefits are adjusted annually through cost-of-living changes. Under current law, the cap on the COLA in fiscal year 2015 and beyond will vary based on 1.25% on the first $60,000 of annual benefit and 0.15% on annual benefits above $60,000. OPSRP Pension Program Pension Benefits. The OPSRP Pension Program (ORS Chapter 238A) provides benefits to members hired on or after August 29, 2003. This portion of OPSRP provides a life pension funded by employer contributions. Benefits are calculated by formula for members who attain normal retirement age. For police members, 1.8% is multiplied by the number of years of service and the final average salary. 74 City of Tigard, Oregon Notes to Basic Financial Statements Normal retirement age for police members is age 60 or age 53 with 25 years of retirement credit. To be classified as a police member, the individual must have been employed continuously as a police member for at least five years immediately preceding retirement. A member of the OPSRP Pension Program becomes vested on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years, the date the member reaches normal retirement age, and if the pension program is terminated, the date on which termination becomes effective. Death Benefits. Upon the death of a non-retired member, the spouse or other person who is constitutionally required to be treated in the same manner as the spouse, receives for life 50 percent of the pension that would otherwise have been paid to the deceased member. Disability Benefits. A member who has accrued 10 or more years of retirement credits before the member becomes disabled or a member who becomes disabled due to job-related injury shall receive a disability benefit of 45 percent of the member’s salary determined as of the last full month of employment before the disability occurred. Benefit Changes After Retirement. Under ORS 238A.210 monthly benefits are adjusted annually through cost-of-living changes. Under current law, the cap on the COLA in fiscal year 2015 and beyond will vary based on 1.25% on the first $60,000 of annual benefit and 0.15% on annual benefits above $60,000. OPSRP Individual Account Program (IAP) Pension Benefits. The IAP member becomes vested on the date the employee account is established or on the date the rollover account was established. If the employer makes optional employer contributions for a member, the member becomes vested on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years, the date the member reaches normal retirement age, the date the IAP is terminated, the date the active member becomes disabled, or the date the active member dies. Upon retirement, a member of the OPSRP IAP may receive the amounts in his or her employee account, rollover account, and vested employer account as a lump-sum payment or in equal installments over a 5-, 10-, 15-, 20-year period or an anticipated life span option. Each distribution option has a $200 minimum distribution limit. Death Benefits. Upon the death of a non-retired member, the beneficiary receives in a lump sum the member’s account balance, rollover account balance, and vested employer optional contribution account balance. If a retired member dies before the installment payments are completed, the beneficiary may receive the remaining installment payments or choose a lump-sum payment. Recordkeeping. OPERS contracts with VOYA Financial to maintain IAP participant records. Contributions. OPERS funding policy provides for monthly employer contributions at actuarially determined rates. These contributions, expressed as a percentage of covered payroll, are intended to accumulate sufficient assets to pay benefits when due. Employer contribution rates for the period were based on the December 31, 2013 actuarial valuation. The rates based on a percentage of payroll, first became effective July 1, 2015. The rates in effect for the period were 15.07% for Tier One/Tier 75 City of Tigard, Oregon  Notes to Basic Financial Statements    Two police members and 9.99% for OPSRP Pension Program Police member.  The city’s total  contributions exclusive of the 6% “pick‐up” was $761,228.      Covered employees are required to contribute 6% of their salary to the Plan, but the employer is  allowed to pay any or all of the employees’ contribution in addition to the required employers’  contribution. The city has elected to contribute the 6% “pick‐up” or $383,738 of the employees’  contribution.    Pension Assets, Liabilities, Pension Expense, and Deferred Outflows of Resources and  Deferred Inflows of Resources Related to Pensions    At June 30, 2016, the city reported a liability of $4,678,602 for its proportionate share of the OPERS net  pension liability.  The net pension liability was measured as of June 30, 2015, and the total pension  liability used to calculate the net pension liability was determined by an actuarial valuation as of  December 31, 2013 rolled forward to June 30, 2015.  The city’s proportion of the net pension liability  was based on a projection of the city’s long‐term share of contributions to the pension plan relative to  the projected contributions of all participating employers, actuarially determined.  At June 30, 2015,  the city’s proportion was 0.0812% which is an increase from its proportion of 0.0740% measured as of  June 30, 2014.    The Oregon Supreme Court (Court) ruled on April 30, 2015 that certain provisions of Senate Bill (SB)  861, signed into law in October 2013, were unconstitutional. SB 861 included provisions that limited  post‐retirement COLA on benefits accrued prior to the signing of the law.  The Court ruled that benefits  could be modified prospectively, but not retrospectively.  As a result, those who retired before the bills  were passed will continue to receive a COLA tied to the Consumer Price Index that normally results in a  2% increase annually.  OPERS members who have accrued benefits before and after the effective dates  of the 2013 legislation will have a blended COLA rate when they retire.      Annual Pension Cost    For the year ended June 30, 2016, the city recognized pension expense of $3,845,531.  At June 30,  2016, the city reported deferred outflows or resources and deferred inflows of resources related to  pensions from the following sources:  Description  Deferred  Outflows of   Resources    Deferred  Inflows of   Resources  Net difference between projected and actual earnings on     pension plan investment  $      252,294    $                    ‐  Net difference between projected and actual earnings      on investments         ‐             980,741  Changes in proportion and differences between city      contributions and proportionate share of contributions         128,184                           ‐  Differences between city contributions and proportionate      Share of system contributions        28,691               96,851  City contributions subsequent to the measurement date           761,228                          ‐     Total  $    1,170,397    $    1,077,592  76 City of Tigard, Oregon  Notes to Basic Financial Statements    Deferred outflows of resources related to pensions of $761,228 resulting from the city’s contributions  subsequent to the measurement date will be recognized as either a reduction of the net pension  liability or an increase in the net pension liability in the year ended June 30, 2017.  Other amounts  reported as deferred inflows of resources related to pensions will be recognized in pension expense as  follows:    Year ending June 30   Deferred  Inflows and  Outflows of  Resources  2017 $     (395,513)  2018       (395,513)  2019       (395,513)  2020       492,336  2021              25,781  Total $    (668,422)    Actuarial Methods and Assumptions    The total pension liability in the December 31, 2013 actuarial valuation was determined using the  following actuarial methods and assumptions:    Valuation Date December 31, 2013 rolled forward to June 30, 2015  Experience Study Report 2014, published September 23, 2015  Actuarial Cost Method Entry Age Normal  Amortization Method  Amortized as a level percentage of payroll as layered amortization  bases over a closed period; Tier One/Tier Two UAL is amortized over  20 years and OPSRP pension UAL is amortized over 16 years  Asset Valuation Method Market value of assets  Actuarial Assumptions:    Inflation Rate 2.75%   Investment Rate of Return 7.75%   Projected Salary Increases  3.75% overall payroll growth; salaries for individuals are assumed to  grow at 3.75% plus assumed rates of merit/longevity increases based  on service   Mortality  Healthy retirees and beneficiaries:   RP‐2000 Sex‐distinct, generational per Scale AA, with collar   adjustments and set‐backs as described in the valuation.  Active members:   Mortality rates are a percentage of healthy retiree rates that vary   by group, as described in the valuation.  Disabled retirees:   Mortality rates are a percentage (65% for males, 90% for females)   of the RP‐2000 static combined disabled mortality sex‐distinct table.  77 City of Tigard, Oregon Notes to Basic Financial Statements Actuarial valuations of an ongoing plan involve estimates of the value of projected benefits and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Experience studies are performed as of December 31 of even numbered years. The methods and assumptions shown above are based on the 2014 experience study which reviewed experience for the four-year period ending on December 31, 2014. Long-Term Expected Rate of Return To develop an analytical basis for the selection of the long-term expected rate of return assumption, in July 2013 the OPERS Board reviewed long-term assumptions developed by both Milliman’s capital market assumptions team and the Oregon Investment Council’s (OIC) investment advisors. The table below shows Milliman’s assumptions for each of the asset classes in which the plan was invested at that time based on the OIC long-term target asset allocation. The OIC’s description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption was based on a consistent set of underlying assumptions, and includes adjustment for the inflation assumption. These assumptions are not based on historical returns, but instead are based on a forward-looking capital market economic model. Asset Class Target Allocation Compound Annual Return (Geometric) Core Fixed Income 7.20% 4.50% Short-Term Bonds 8.00 3.70 Intermediate-Term Bonds 3.00 4.10 High Yield Bonds 1.80 6.66 Large Cap US Equities 11.65 7.20 Mid Cap US Equities 3.88 7.30 Small Cap US Equities 2.27 7.45 Developed Foreign Equities 14.21 6.90 Emerging Foreign Equities 5.49 7.40 Private Equity 20.00 8.26 Opportunity Funds/Absolute Return 5.00 6.01 Real Estate (Property) 13.75 6.51 Real Estate (REITS) 2.50 6.76 Commodities 1.25 6.07 Assumed Inflation – Mean 2.75 Discount Rate The discount rate used to measure the total pension liability was 7.75% for the Defined Benefit Pension Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and those contributing employers are made at the contractually required rates, as actuarially determined. Based on those assumptions, the pension plan’s fiduciary net position was 78 City of Tigard, Oregon Notes to Basic Financial Statements projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments for the Defined Benefit Pension Plan was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City’s proportionate share of net pension liability (asset) to changes in the discount rate The following presents the city’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.75%, as well as what the city’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.75%) or 1-percentage-point higher (8.75%) than the current rate: 1% Decrease (6.75%) Current Discount Rate (7.75%) 1% Increase (8.75%) City's proportionate share of the net pension liability (asset) $11,291,632 $4,678,602 $(894,445) Pension Plan Fiduciary Net Position Detailed information about the pension plan’s fiduciary net position is available in the separately issued OPERS financial report at https:www.oregon.gov/pers/Pages/section/financial_reports/financials.aspx. 11. Retirement Plans – Defined Contribution Plan The city contributes to a retirement plan on behalf of all eligible employees. Contributions are to International City Managers Association Retirement Corp. (ICMARC), a defined contribution single employer retirement plan (The Plan) for those employees not eligible for the defined benefit plan (OPERS). The Plan is a defined contribution plan created in accordance with Internal Revenue Code Section 401(a). Employees become eligible to participate in the plans after six months of service and vest immediately. Employees may withdraw funds upon retirement or termination of employment. Employees enrolled in The Plan at June 30, 2016: Classification of eligible employees Enrollment Represented (SEIU) employees 93 Management employees 80 Police (non-sworn) employees 11 Total enrolled employees 184 Contributions to The Plan range from 10 to 11 percent of gross salary depending on the employment group for all eligible employees participating in the plans. The city is required to make contributions to these plans under authority of City Council resolution and the plan documents. Employees may also make contributions to these plans. Required and actual contributions to the plan were $1,355,676 for the year ended June 30, 2016. 79 City of Tigard, Oregon Notes to Basic Financial Statements Contributions to the plans are made to a fiduciary. All assets and income of the Plan are held in trust for the exclusive benefit of the participants and their beneficiaries. Since the plans are administered by the city, the assets, equity and operations of the plans are accounted for in the General Employees Pension Plan Fund, a pension trust fund. The plans invest in various money market and equity mutual funds. At June 30, 2016, the total net position of the pension plan was $23,968,395, which approximates fair value. Deferred Compensation Plans The city offers employees a voluntary deferred compensation plan created in accordance with Internal Revenue Code Section 457 and administered by the city. The Plan is a defined contribution plan. Amendments to the plan require City Council approval. The Plan is available to any individual who is an elected official of the city or who is employed by the city after completing 30 days of service. Participation in the plan is voluntary. Contributions to fiduciaries that hold the funds in trust for the plans’ participants are made through salary withholdings from participating employees up to the amounts specified in the code. No contributions are required by the city. Amounts deferred are not available to employees until termination, retirement, death, or unforeseeable emergency. All assets and income of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The amounts accumulated under the 457 plan including investments earnings are excluded from the financial statements of the city. 12. Related Party Transactions The city, a developer, and the city’s urban renewal agency, city center development agency (CCDA), entered into a Development and Disposition Agreement. Under the terms of this agreement, CCDA agreed to pay the city a portion of the developer’s system development charges equal to the appraised value of the property sold by CCDA to the developer. The property was sold for $1,650,000 to the developer in September of 2015. In December of 2015, CCDA paid to the city $1,650,000 in system development charges which were recognized as revenues in the city’s respective system development funds and as a community development program expense in the CCDA capital project fund, Urban Renewal Capital Improvement fund. 13. Transactions with Clean Water Services of Washington County The city collects charges for treatment of city sewage and stormwater on behalf of the Clean Water Services of Washington County and remits all collections to Clean Water Services, except for 16.43% of sewer service charges collected, 3.98% of sewer connection charges collected and 75% of stormwater service charges collected, in accordance with an agreement between the city and Clean Water Services. During fiscal year 2016 the city paid $12,245,390 to Clean Water Services under this agreement. The net amount retained by the city is reported as revenue in the enterprise funds in the proprietary funds Statement of Revenues, Expenses and Changes in Fund Net Position. Revenues are reported net because the city acts in a fiduciary capacity on behalf of Clean Water Services. 80 City of Tigard, Oregon  Notes to Basic Financial Statements    14. Risk Management    The city is exposed to various risks of loss related to torts; employment liability; theft of, damage to,  and destruction of assets; errors and omissions; injuries to employees and others; and natural  disasters.  The city is insured through a member trust consisting of cities and counties in Oregon and  purchases public entity insurance through the trust to deal with these risks with nominal deductibles.   Settled claims resulting from these risks have not exceeded public entity insurance coverage in any of  the past three fiscal years and there has not been any material change to insurance coverages from the  previous year.    15. Commitments    The city has entered into an intergovernmental agreement (IGA) with the City of Lake Oswego for the  Lake Oswego/Tigard Water Partnership.  The Water Partnership will create a reliable water system to  deliver high‐quality drinking water to the City of Tigard and the City of Lake Oswego. The new water  system replaces aging, vulnerable, at‐capacity infrastructure with a cutting‐edge system designed to  the highest seismic resiliency standards.  The city’s share of the project is estimated at approximately  $132 million.  As stated in Note 6, the city issued $97.7 million in revenue bonds during fiscal year 2012  to partially fund the project.  The city issued an additional $30.8 million in revenue bonds in fiscal year  2015 for the continuing water infrastructure needs.  This is a multi‐year project with most of the work  completed in fiscal year 2016.  In June of 2016, the city switched over to the new water source and  treatment plant.  As of June 30, 2016, the city had approximately $5,800,000 outstanding for  construction costs on the intergovernmental agreement with Lake Oswego.  This amount is expected to  be paid in fiscal year 2017 with unspent bond proceeds.     The City of Tigard has entered into one contract for pavement rehabilitation for total of $1,341,591.   This contract will be completed during the first half of fiscal year 2017.  The city’s street maintenance  fee is the resource for the pavement rehabilitation project.    In addition the city has entered into a contract of sale with a private property owner to purchase  approximately 28 acres of undeveloped land. The total consideration for property transaction is  $1,400,000.  The property will be acquired using a combination of Park Bonds resources and system  development charges for parks.  Interest on the outstanding balance accrues at 2% per annum.  The  property owner resides on the property until the last payment under the contract of sale is made, at  which time title to the property will pass to the city.  Therefore the city has not recorded an asset or  debt related to this transaction.   As of June 30, 2016 the city has paid $650,000 under the contract  with the following remaining payment terms:  Year ending June 30   Payment  Amount Due  2017 $     150,000  2018            600,000  Total $    750,000      81 City of Tigard, Oregon Notes to Basic Financial Statements 16. Contingent Liabilities The city is a defendant in various lawsuits. Most of these lawsuits are covered by the city’s insurance policies. Although the outcome of these lawsuits is not presently determinable, it is the opinion of management that resolution of these matters will not have a material adverse effect on the financial condition of the city. Claims not covered by the city’s insurer are recognized when it appears probable that the loss has been incurred and the amount can be reasonably estimated. 17. Subsequent Events In September 2016 the city was notified of a $2,080,000 grant from the US Department of Commerce Economic Development Administration grant. This Federal grant will be used as matching funds to help the city with a public infrastructure project intended to construct a road to provide public access to an undeveloped and underused industrial area. The city’s name for the commercial and industrial area is the Hunziker Industrial Core. In November 2016 City of Tigard voters approved a ballot measure allowing the city to impose a marijuana tax of 3% on the sale of marijuana items by a licensed retailer in the city. The tax would be paid by customers purchasing marijuana items from licensed retailers, which would be collected and distributed to the city quarterly. The revenues generated from the tax would be added to the city’s general fund to be expended through the annual budget review and approval process. In November 2016 City of Tigard voters approved a ballot measure allowing the city to become an active partner in the on-going process to extend light rail service to Tigard. The committee planning the transportation project includes all jurisdictions in the Southwest Corridor: Tigard, Tualatin, Portland, Durham, King City, Sherwood, Beaverton and Washington County as well as TriMet, ODOT and Metro. The Southwest Corridor Plan would connect downtown Portland, southwest Portland, the Tigard Triangle, downtown Tigard and Bridgeport Village in Tualatin with an estimated completion date of 2025. Estimated costs for the entire project are between $2.4-2.8 billion and will only be built if federal grants and regional funding are secured. The measure is not an authorization to use city funds for the project and no new fees or taxes have been imposed. The measure does allow amendments to land use regulations for future light rail route selection. 82 Required Supplementary Information Variance Actual with final Original Final Amounts budget REVENUES Taxes 14,330,765$      14,330,765$      14,300,168$      (30,597)$              Licenses and permits 1,352,420          2,244,760          3,114,265          869,505               Intergovernmental revenues 5,422,785          5,591,144          6,319,350          728,206               Charges for services 3,038,015          3,041,848          2,289,321          (752,527)              Fines and forfeitures 873,006              873,006              761,781              (111,225)              Franchise fees 5,909,165          5,909,165          5,732,448          (176,717)              Interest earnings 103,722              103,722              292,387              188,665               Miscellaneous revenues 56,432                76,912                92,734                15,822                    Total revenues 31,086,310        32,171,322        32,902,454        731,132               EXPENDITURES Community services 22,231,014        22,429,011        20,743,054        1,685,957           Public works 4,118,322          4,367,862          3,785,911          581,951               Community development 4,037,179          4,079,429          3,450,608          628,821               Policy and administration 899,502              906,662              831,876              74,786                    Total expenditures 31,286,017        31,782,964        28,811,449        2,971,515                 Change in fund balance before          other financing sources (uses)(199,707)             388,358              4,091,005          3,702,647           OTHER FINANCING SOURCES (USES) Transfer in ‐                         65,750              ‐                          (65,750)               Repayment of interfund loan ‐                           ‐                           14,348                14,348                 Transfers out (3,434,936)         (3,543,211)         (3,114,060)         429,151                  Total other financing (uses)(3,434,936)         (3,477,461)         (3,099,712)         377,749               Contingency (1,120,000)         (940,593)             ‐                           940,593               Reserve for future expenditures (5,954,950)         (6,751,790)         ‐                           6,751,790              Change in fund balance (10,709,593)       (10,781,486)       991,293              11,772,779         Fund balance ‐ beginning of the year 10,709,593        10,781,486        11,988,448        1,206,962           Fund balance ‐ end of the year ‐$                         ‐$                         12,979,741        12,979,741$       Interfund loans are treated as reimbursements on a budgetary basis and as receivables on a GAAP basis 655,183               Fund balance ‐ GAAP basis 13,634,924$       CITY OF TIGARD, OREGON GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 83 Variance Actual with final Original Final Amounts budget REVENUES State gas tax 2,880,519$           2,880,519$           2,911,763$           31,244$                 County gas tax 189,598                189,598                183,855                (5,743)                    Licenses and permits 5,872                     5,872                     29,722                   23,850                    Interest earnings 55,732                   55,732                   152,759                97,027                    Grant revenues ‐                             30,000                   ‐                             (30,000)                  Miscellaneous revenues 62,818                   62,818                   78,217                   15,399                       Total revenues 3,194,539             3,224,539             3,356,316             131,777                 EXPENDITURES Public works 2,166,046             2,202,321             1,822,997             379,324                 Debt service:   Principal 481,425                481,425                481,425                ‐                                Interest 111,000                111,000                111,000                ‐                                   Total expenditures 2,758,471             2,794,746             2,415,422             379,324                         Change in fund balance before            other financing sources (uses)436,068                429,793                940,894                511,101                 OTHER FINANCING SOURCES (USES) Transfers in 100,000                136,275                115,987                (20,288)                  Transfers out (229,389)               (612,639)               (272,214)               340,425                    Total other financing (uses)(129,389)               (476,364)               (156,227)               320,137                 Contingency (200,000)               (170,000)               ‐                             170,000                 Reserve for future expenditures (811,551)               (811,551)               ‐                             811,551                 Change in fund balance (704,872)               (1,028,122)            784,667                1,812,789              Fund balance ‐ Beginning of the year 704,872                1,028,122             1,565,112             536,990                 Fund balance ‐End of the year ‐$                           ‐$                           2,349,779$           2,349,779$            CITY OF TIGARD, OREGON for the year ended June 30, 2016   Budgeted Amounts GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL 84 General Fund Net change in fund balance ‐ budget basis 991,293$             Budgeted expenditures not qualifying as expenditures or other financing sources under GAAP:      Interfund loans are treated as transfers on a budgetary basis. Such expenditures are         reclassified as receivables on a GAAP basis. Repayment on internal loans (14,348)                976,945$             CITY OF TIGARD, OREGON NOTES TO REQUIRED SUPPLEMENTARY INFORMATION BUDGET TO GAAP RECONCILIATION for the year ended June 30, 2016 Net change in fund balance ‐ GAAP basis Sections of Oregon Revised Statutes (Oregon Budget Law) require most transactions be budgeted on the modified accrual basis of accounting. However, there are certain transactions where statutory budget requirements conflict with generally accepted accounting principles (GAAP).                                                                                                                                                     The following discusses the differences between the budget basis and GAAP basis of accounting for the General Fund: 85 CITY OF TIGARD, OREGON  SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) –   Oregon Public Employees Retirement System  Last Three Fiscal Years    Year Ended   June 30,   (a)  City’s proportion  of the net  pension liability  (asset)   (b)  City’s  proportionate  share of the net  pension liability  (asset)  (c)  City’s covered  payroll  (b/c) City’s propionate  share of the net  pension liability  (asset) as a  percentage of its  covered payroll   Plan fiduciary net  position as a  percentage of the  total pension  liability  2016 0.08148800% $ 4,678,602 $  6,610,002  70.78%    91.88%  2015 0.07402207% $(1,677,869) $  6,187,208 ‐27.12%  103.59%  2014 0.07402207% $ 3,777,455 $  6,025,900  62.69%    91.97%    Certain amounts presented for each fiscal year were actuarially determined at December 31 and rolled  forward to the measurement date.  This schedule is presented to illustrate the requirements to show information for 10 years.  However, until  a full 10‐year trend has been compiled, information is presented only for the years for which the required  supplementary information is available.  NOTES TO SCHEDULE  Changes in Benefit Terms  Senate Bill 822 was enacted during the 2013 Oregon regular legislative session to lower the cap on  the cost‐of‐living adjustment (COLA) from 2 percent to 1.5 percent for 2013, and eliminated the tax  remedy benefit for recipients who do not pay Oregon state income taxes because they do not  reside in Oregon.  Senate Bill 861 was enacted during the 2013 Oregon special legislative session,  further lowering the post‐retirement COLA for years beyond 2013 to 1.25% on the first $60,000 of  annual benefit and 0.15% on annual benefits above $60,000.  The combined impact of these Senate  Bills are reflected in the June 30, 2014 total pension liability, resulting in a net pension asset  reported by the City for fiscal year 2015.  The Oregon Supreme Court (Court) ruled in Moro v. State of Oregon on April 30, 2015 that certain  provisions of Senate Bill 822 and Senate Bill 861 were unconstitutional.  The Court ruled that  benefits could be modified prospectively, but not retrospectively.  As a result, those who retired  before the bills were passed will continue to receive a COLA tied to the Consumer Price Index that  normally results in a 2% increase annually.  OPERS members who have accrued benefits before and  after the effective dates of the 2013 legislation will have a blended COLA rate when they retire.   The impact of the Court’s decision is reflected in the June 30, 2015 total pension liability, which  contributes to the net pension liability reported by the City for fiscal year 2016.  86 CITY OF TIGARD, OREGON  SCHEDULE OF PLAN CONTRIBUTIONS –   Oregon Public Employees Retirement System  Last Three Fiscal Years    Year Ended June  30,   (a)  Statutorily  required  contribution   (b) Contributions in  relation to the  statutorily  required  contribution  (a‐b)  Contribution  deficiency  (excess)  (c)  City’s covered  payroll   (b/c) Contributions  as a percent of  covered payroll  2016 $761,228 $761,228 $             ‐ $  6,610,002  11.52%  2015 $782,812 $782,812 $             ‐ $  6,187,208  12.65%  2014  $722,108  $722,108  $             ‐ $  6,025,900  11.98%    The required contribution amount presented for each fiscal year were actuarial determined at December  31 and rolled forward to the measurement date.  This schedule is presented to illustrate the requirements to show information for 10 years. However, until  a full 10‐year trend has been compiled, information is presented only for the years for which the required  supplementary information is available.    NOTES TO SCHEDULE      Actuarial Assumptions and Methods Used to Actuarially Determine Contributions:     Actuarial Valuation December 31, 2013 December 31, 2011  Effective July 2015 ‐ June 2017 July 2013 ‐ June 2015  Actuarial cost method: Entry Age Normal Projected Unit Credit  Actuarial valuation method: Market Value Market Value  Actuarial assumption:       Inflation rate 2.75 percent 2.75 percent       Projected salary increases 3.75 percent 3.75 percent       Investment rate of return 7.75 percent 8.00 percent      87 This page intentionally left blank. Other Supplementary Information Special Debt Service Capital Project Revenue Funds Funds Funds Total ASSETS Cash and cash equivalents 609,578$            ‐$                         2,703,181$        3,312,759$         Investments 33,640                ‐                           462,174              495,814               Accounts receivable 247,022              ‐                           273,030              520,052               Property taxes receivable ‐                           124,730              ‐                           124,730               Assessment liens receivable ‐                           422,075              3,413                  425,488               Restricted cash and cash equivalents 5,404,806          1,435,568          10,472,150        17,312,524         Restricted investments 829,694              ‐                           1,072,513          1,902,207              Total assets 7,124,740$        1,982,373$        14,986,461$      24,093,574$       LIABILITIES Accounts payable and accrued liabilities 561,198$            ‐$                         1,543,752$        2,104,950$         Deposits 452,410              ‐                           1,400                  453,810               Due to others 35,910                ‐                           ‐                           35,910                 Advances from other funds ‐                           ‐                           757,678              757,678               Unearned revenue 59,660                ‐                           ‐                           59,660                    Total liabilities 1,109,178          ‐                           2,302,830          3,412,008           DEFERRED INFLOWS OF RESOURCES Resources not yet available:   Property taxes ‐                           114,243              ‐                           114,243                 Special assessment liens ‐                           422,075              3,413                  425,488               Total deferred inflows of resources ‐                           536,318              3,413                  539,731               FUND BALANCES Restricted for:      Street maintenance and improvements ‐                           ‐                           4,667,564          4,667,564                Debt service ‐                           1,446,055          ‐                           1,446,055                Park development and improvements ‐                           ‐                           5,443,698          5,443,698                Underground utilities ‐                           ‐                           450,921              450,921                    Building inspection 3,030,649          ‐                           ‐                           3,030,649                Police services 385,375              ‐                           ‐                           385,375                    Library improvements 476,893              ‐                           ‐                           476,893               Committed for:      Street maintenance and improvements 354,950              ‐                           1,605,746          1,960,696                Urban forestry 1,299,540          ‐                           ‐                           1,299,540           Assigned to:      City facilities ‐                           ‐                           1,129,618          1,129,618                Park and recreation 468,155              ‐                           ‐                           468,155               Unassigned ‐                           ‐                           (617,329)             (617,329)              Total fund balances 6,015,562          1,446,055          12,680,218        20,141,835         Total liabilities, deferred inflows of    resources and fund balances 7,124,740$        1,982,373$        14,986,461$      24,093,574$       CITY OF TIGARD, OREGON COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2016 88 Special Debt Service Capital Project Revenue Funds Funds Funds Total REVENUES Taxes 712,408$              2,796,141$          ‐$ 3,508,549$           Special assessments ‐ 65,243 ‐ 65,243  Licenses and permits 2,607,485             ‐ ‐ 2,607,485              Intergovernmental revenues 40,132 ‐ 325,185                365,317                 Charges for services 268,515                ‐ 8,416,564             8,685,079              Fines and forfeitures 210,779                ‐ ‐ 210,779                 Interest earnings 56,564 45,456 106,713                208,733                 Miscellaneous revenues 48,207 ‐ 1,736 49,943     Total revenues 3,944,090             2,906,840             8,850,198             15,701,128           EXPENDITURES Community services 41,132 ‐ ‐ 41,132  Public works 1,997,220             ‐ ‐ 1,997,220              Community development 1,881,295             ‐ 1,650,000             3,531,295              Debt service:    Principal 253,575                1,626,892             ‐ 1,880,467                 Interest 58,433 890,300                ‐ 948,733                 Capital outlay ‐ ‐ 6,200,291             6,200,291                 Total expenditures 4,231,655             2,517,192             7,850,291             14,599,138                 Changes in fund balance before          other financing sources (uses)(287,565)               389,648                999,907                1,101,990              OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets ‐ ‐ 1,650,000             1,650,000              Transfers in 2,380,000             ‐ 3,832,831             6,212,831              Transfers out (403,240)               (190,799)               (2,122,126)           (2,716,165)            Resources provided by other funds ‐ ‐ 49,500 49,500     Total other financing sources (uses) 1,976,760             (190,799)               3,410,205             5,196,166                    Changes in fund balance 1,689,195             198,849                4,410,112             6,298,156              Fund Balance ‐ Beginning of the year 4,326,367             1,247,206             8,270,106             13,843,679           Fund Balance ‐ End of the year 6,015,562$          1,446,055$          12,680,218$        20,141,835$         CITY OF TIGARD, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS for the year ended June 30, 2016 89 Special Revenue Funds The balance sheet and statement of revenues, expenditures and changes in fund balance of the non-major special revenue funds are reported in the combining governmental fund statements. Fund statements for the major special revenue funds are reported in the basic financial statements. Schedules of revenues, expenditures and changes in fund balance — budget and actual — are also presented here for each special revenue fund. Major Special Revenue Fund: Gas Tax Fund – This fund records shared revenues from the State of Oregon and Washington County taxes on sale of motor vehicle fuel. The city uses these revenues to fund various construction, reconstruction, improvements, repairs, maintenance and operation of public highways, roads and streets. Non-major Special Revenue Funds: City Gas Tax Fund – This fund accounts for revenues generated from Tigard’s local gas tax and funds projects for transportation improvements. Electrical Inspection Fund – This fund accounts for fees charged for permits, plan check fees and inspection of electrical improvements. Building Fund – This fund accounts for fees charged for building inspection and plan review activities. Criminal Forfeiture Fund – This fund accounts for funds and property seized from criminals. Urban Forestry Fund – This fund accounts for funds collected from developers in lieu of preserving trees, which the city can use to plant trees in public right-of-way and other public properties. Parks Utility Fund – This fund accounts for fees charged for the maintenance and operation of city parks, trails, and green spaces. Library Fund – This fund accounts for the amounts received from several donations and bequests for various special projects and artwork. City Gas Electrical Criminal  Tax Inspection Building Forfeiture Fund Fund Fund Fund ASSETS Cash and cash equivalents 185,620$            ‐$                         ‐$                         ‐$                          Investments 33,640                ‐                           ‐                           ‐                            Accounts receivable 135,690              1,300                  612                      ‐                            Restricted cash and equivalents ‐                           251,879              2,849,071          410,388               Restricted investments ‐                           42,140                444,401              ‐                               Total assets 354,950$            295,319$            3,294,084$        410,388$             LIABILITIES Accounts payable ‐$                         544$                    497,233$            ‐$                          Due to others ‐                           603                      8,981                  25,013                 Deposits ‐                           24,702                26,691                ‐                            Unearned revenue ‐                           ‐                           ‐                           ‐                               Total liabilities ‐                           25,849                532,905              25,013                 FUND BALANCE Restricted for: Building inspection ‐                           269,470              2,761,179          ‐                            Police services ‐                           ‐                           ‐                           385,375               Library improvements ‐                           ‐                           ‐                           ‐                            Committed for: Street maintenance and improvements 354,950              ‐                           ‐                           ‐                            Urban forestry ‐                           ‐                           ‐                           ‐                            Assigned for: Park and recreation ‐                           ‐                           ‐                           ‐                               Total fund balances 354,950              269,470              2,761,179          385,375               Total liabilities and fund     balances 354,950$            295,319$            3,294,084$        410,388$             CITY OF TIGARD, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 2016 90 Urban Parks Forestry Utility Library Fund Fund Fund Total ‐$                         423,958$            ‐$                         609,578$             ‐                           ‐                           ‐                           33,640                 409                      108,931              80                        247,022               1,439,303          ‐                           454,165              5,404,806           260,845              ‐                           82,308                829,694               1,700,557$        532,889$            536,553$            7,124,740$         ‐$                         63,421$              ‐$                         561,198$             ‐                           1,313                  ‐                           35,910                 401,017              ‐                           ‐                           452,410               ‐                           ‐                           59,660                59,660                 401,017              64,734                59,660                1,109,178           ‐                           ‐                           ‐                           3,030,649           ‐                           ‐                           ‐                           385,375               ‐                           ‐                           476,893              476,893               ‐                           ‐                           ‐                           354,950               1,299,540          ‐                           ‐                           1,299,540           ‐                           468,155              ‐                           468,155               1,299,540          468,155              476,893              6,015,562           1,700,557$        532,889$            536,553$            7,124,740$         91 City Gas Electrical Criminal  Tax Inspection Building Forfeiture Fund Fund Fund Fund REVENUES City gas tax 712,408$            ‐$                    ‐$                    ‐$                     Licenses and permits ‐                       287,641              2,319,844          ‐                        Charges for services ‐                       ‐                       ‐                       ‐                        Intergovernmental revenues ‐                       ‐                       40,132                ‐                        Fines and forfeitures ‐                       ‐                       ‐                       210,779               Tree replacement revenue ‐                       ‐                       ‐                       ‐                        Interest earnings 31,116                421                      16,040                13                         Miscellaneous revenues 30,337                ‐                       17,585                ‐                           Total revenues 773,861              288,062              2,393,601          210,792               EXPENDITURES Community services ‐                       ‐                       ‐                       41,132                 Public works ‐                       ‐                       ‐                       ‐                        Community development ‐                       ‐                       1,876,999          ‐                        Debt service:    Principal 253,575              ‐                       ‐                       ‐                           Interest 58,433                ‐                       ‐                       ‐                              Total expenditures 312,008              ‐                       1,876,999          41,132                         Changes in fund balance              before other financing                sources (uses)461,853              288,062              516,602              169,660               OTHER FINANCING SOURCES (USES) Transfers in ‐                       ‐                       180,000              ‐                        Transfers out (145,359)             (181,993)             ‐                       (560)                        Total other financing           sources (uses)(145,359)             (181,993)             180,000              (560)                           Changes in fund balance 316,494              106,069              696,602              169,100               Fund balance ‐ Beginning of the year 38,456                163,401              2,064,577          216,275               Fund balance ‐ End of the year 354,950$            269,470$            2,761,179$        385,375$             CITY OF TIGARD, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE for the year ended June 30, 2016 92 Urban Parks Forestry Utility Library  Fund Fund Fund Total ‐$                    ‐$                    ‐$                    712,408$             ‐                       ‐                       ‐                       2,607,485           ‐                       265,090              ‐                       265,090               ‐                       ‐                       ‐                       40,132                 ‐                       ‐                       ‐                       210,779               3,425                  ‐                       ‐                       3,425                   6,729                  ‐                       2,245                  56,564                 ‐                       285                      ‐                       48,207                 10,154                265,375              2,245                  3,944,090           ‐                       ‐                       ‐                       41,132                 ‐                       1,997,220          ‐                       1,997,220           4,296                  ‐                       ‐                       1,881,295           ‐                       ‐                       ‐                       253,575               ‐                       ‐                       ‐                       58,433                 4,296                  1,997,220          ‐                       4,231,655           5,858                  (1,731,845)         2,245                  (287,565)              ‐                       2,200,000          ‐                       2,380,000           (75,328)               ‐                       ‐                       (403,240)              (75,328)               2,200,000          ‐                       1,976,760           (69,470)               468,155              2,245                  1,689,195           1,369,010          ‐                       474,648              4,326,367           1,299,540$        468,155$            476,893$            6,015,562$         93 Variance Actual with final Original Final Amounts budget REVENUES City gas tax 612,771$              612,771$              712,408$              99,637$                 State grants 31                          31                          ‐                             (31)                          Interest earnings 34,584                  34,584                  31,116                  (3,468)                    Miscellaneous revenues 32,052                  32,052                  30,337                  (1,715)                       Total revenues 679,438                679,438                773,861                94,423                   EXPENDITURES Debt service:    Principal 257,250                257,250                253,575                3,675                        Interest 59,310                  59,310                  58,433                  877                               Total expenditures 316,560                316,560                312,008                4,552                              Changes in fund balance before             other financing sources (uses)   362,878                362,878                461,853                98,975                   OTHER FINANCING SOURCES (USES) Transfers out (3,208)                   (203,208)               (145,359)               57,849                   Contingency (300,000)               (100,000)               ‐                             100,000                 Reserve for future expenditures (186,149)               (186,149)               ‐                             186,149                    Total other financing sources (uses)(489,357)               (489,357)               (145,359)               343,998                       Change in fund balance (126,479)               (126,479)               316,494                442,973                 Fund balance ‐ Beginning of the year 126,479                126,479                38,456                  (88,023)                  Fund balance ‐ End of the year ‐$                           ‐$                           354,950$              354,950$               CITY OF TIGARD, OREGON CITY GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 94 Variance Actual with final Original Final Amounts budget REVENUES Licenses and permits 186,779$              186,779$              287,641$              100,862$               Interest earnings 1,207                    1,207                    421                        (786)                           Total revenues 187,986                187,986                288,062                100,076                 OTHER FINANCING (USES) Transfers out (181,993)               (181,993)               (181,993)               ‐                              Contingency (50,000)                 (50,000)                 ‐                             50,000                   Reserve for future expenditures (79,222)                 (79,222)                 ‐                             79,222                      Total other financing (uses)(311,215)               (311,215)               (181,993)               129,222                       Change in fund balance (123,229)               (123,229)               106,069                229,298                 Fund balance ‐ Beginning of the year 123,229                123,229                163,401                40,172                   Fund balance ‐ End of the year ‐$                           ‐$                           269,470$              269,470$               CITY OF TIGARD, OREGON ELECTRICAL INSPECTION FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 95 Variance Actual with final Original Final Amounts budget REVENUES Licenses and permits 1,791,239$          1,791,239$          2,319,844$          528,605$               Intergovernmental revenues 8,281                    8,281                    40,132                  31,851                   Interest earnings 19,782                  19,782                  16,040                  (3,742)                    Miscellaneous revenues 7,967                    7,967                    17,585                  9,618                        Total revenues 1,827,269             1,827,269             2,393,601             566,332                 EXPENDITURES Community development 1,949,847             1,989,847             1,876,999             112,848                    Change in fund balance before       other financing sources (uses)(122,578)               (162,578)               516,602                679,180                 OTHER FINANCING SOURCES (USES) Transfers in 180,000                180,000                180,000                ‐                              Contingency (250,000)               (210,000)               ‐                             210,000                 Reserve for future expenditures (2,021,099)           (2,021,099)           ‐                             2,021,099                 Total other financing sources (uses) (2,091,099)           (2,051,099)           180,000                2,231,099                    Change in fund balance (2,213,677)           (2,213,677)           696,602                2,910,279              Fund balance ‐ Beginning of the year 2,213,677             2,213,677             2,064,577             (149,100)                Fund balance ‐ End of the year ‐$                           ‐$                           2,761,179$          2,761,179$           CITY OF TIGARD, OREGON BUILDING FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 96 Variance Actual with final Original Final Amounts budget REVENUES Interest earnings 1,892$                  1,892$                  13$                        (1,879)$                  Forfeitures 43,000                  43,000                  210,779                167,779                    Total revenues 44,892                  44,892                  210,792                165,900                 EXPENDITURES Community services 70,000                  70,000                  41,132                  28,868                      Change in fund balance before       other financing sources (uses)(25,108)                 (25,108)                 169,660                194,768                 OTHER FINANCING SOURCES (USES) Transfers out (560)                       (560)                       (560)                       ‐                              Reserve for future expenditures (146,174)               (146,174)               ‐                             146,174                    Total other financing sources (uses)(146,734)               (146,734)               (560)                       146,174                       Change in fund balance (171,842)               (171,842)               169,100                340,942                 Fund balance ‐ Beginning of the year 171,842                171,842                216,275                44,433                   Fund balance ‐ End of the year ‐$                           ‐$                           385,375$              385,375$               CITY OF TIGARD, OREGON CRIMINAL FORFEITURE FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 97 Variance Actual with final Original Final Amounts budget REVENUES Tree replacement revenue 32,813$               32,813$               3,425$                  (29,388)$               Interest earnings 4,060                   4,060                  6,729                   2,669                       Total revenues 36,873                 36,873                10,154                 (26,719)                 EXPENDITURES: Community services ‐                            ‐                           4,296                   (4,296)                   Change in fund balance before other financing sources (uses)36,873                 36,873                5,858                   (31,015)                 OTHER FINANCING SOURCES (USES) Transfers out (251,850)               (251,850)               (75,328)                 176,522                 Contingency (50,000)                 (50,000)                 ‐                             50,000                   Reserve for future expenditures (865,019)               (865,019)               ‐                             865,019                    Total other financing sources (uses) (1,166,869)           (1,166,869)           (75,328)                 1,091,541                    Change in fund balance (1,129,996)           (1,129,996)           (69,470)                 1,060,526              Fund balance ‐ Beginning of the year 1,129,996             1,129,996             1,369,010             239,014                 Fund balance ‐ End of the year ‐$                           ‐$                           1,299,540$          1,299,540$           CITY OF TIGARD, OREGON URBAN FORESTRY FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 98 Variance Actual with final Original Final Amounts budget REVENUES Charges for services ‐$                           ‐$                           265,090$              265,090$               Miscellaneous revenues 285                        285                            Total revenues ‐                             ‐                             265,375                265,375                 EXPENDITURES Public works 2,203,414             2,208,639             1,997,220             211,419                    Change in fund balance before       other financing sources (uses)(2,203,414)           (2,208,639)           (1,731,845)           476,794                 OTHER FINANCING SOURCES (USES) Transfers in 2,250,000             2,250,000             2,200,000             (50,000)                  Contingency (40,000)                 (34,775)                 ‐                             34,775                   Reserve for future expenditures (6,586)                   (6,586)                   ‐                             6,586                        Total other financing sources (uses)2,203,414             2,208,639             2,200,000             (8,639)                          Change in fund balance ‐                             ‐                             468,155                468,155                 Fund balance ‐ Beginning of the year ‐                             ‐                             ‐                             ‐                              Fund balance ‐ End of the year ‐$                           ‐$                           468,155$              468,155$               CITY OF TIGARD, OREGON PARKS UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 99 Variance Actual with final Original Final Amounts budget REVENUES: Interest earnings ‐$                           ‐$                           2,245$                  2,245$                   OTHER FINANCING SOURCES (USES) Transfers out (100,000)               (100,000)               ‐                             100,000                 Reserve for future expenditures (274,648)               (274,648)               ‐                             274,648                    Total other financing sources (uses)(374,648)               (374,648)               ‐                             374,648                    Change in fund balance (374,648)               (374,648)               2,245                    376,893                 Fund balance ‐ Beginning of the year 374,648                374,648                474,648                100,000                 Fund balance ‐ End of the year ‐$                           ‐$                           476,893$              476,893$               CITY OF TIGARD, OREGON LIBRARY FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 100 This page intentionally left blank. Debt Service Funds The balance sheet and statement of revenues, expenditures and changes in fund balance of the non- major debt service funds are reported in the combining non-major governmental fund statements. Schedules of revenues, expenditures and changes in fund balance — budget and actual — are also presented for each debt service fund. Non-major Debt Service Funds: Bancroft Bond Debt Service Fund – This fund accounts for payment of Bancroft improvement bond principal and interest. Revenues are derived from the collection of assessments against benefitted property and interest earnings. General Obligation Debt Service Fund – This fund accounts for payment of general obligation bond principal and interest. Revenues are derived from property taxes and interest earnings. Urban Renewal Agency Debt Service Fund – This fund accounts for principal and interest payments on debt for the Tigard Urban Renewal Agency and transfers to the Urban Renewal Agency Capital Improvement Fund. Revenues are from property taxes and interest earnings. Bancroft Bond General Urban Renewal  Debt Service Obligation Debt Agency Debt Fund Service Fund Service Fund Total ASSETS Property taxes receivable ‐$                         107,946$            16,784$              124,730$           Assessment liens receivable 422,075              ‐                           ‐                           422,075             Restricted cash and cash equivalents 112,269              962,451              360,848              1,435,568            Total assets 534,344$            1,070,397$        377,632$            1,982,373$       DEFERRED INFLOWS OF RESOURCES   Resources not yet available: Special assessments/liens 422,075$            ‐$                         ‐$                         422,075$           Property taxes ‐                           98,818                15,425                114,243               Total deferred inflows of resources 422,075              98,818                15,425                536,318             FUND BALANCES Restricted for debt service 112,269              971,579              362,207              1,446,055            Total deferred inflows of        resources and fund balances 534,344$            1,070,397$        377,632$            1,982,373$       CITY OF TIGARD, OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING BALANCE SHEET June 30, 2016 101 Bancroft Bond General Urban Renewal  Debt Service Obligation Debt Agency Debt Fund Service Fund Service Fund Total REVENUES Taxes ‐$                           2,426,193$          369,948$              2,796,141$           Collection of bonded assessments 65,243                  ‐                             ‐                             65,243                   Interest earnings 23,800                  17,346                  4,310                    45,456                     Total revenues 89,043                  2,443,539             374,258                2,906,840              EXPENDITURES Debt service: Principal 77,392                  1,370,000             179,500                1,626,892              Interest 26,112                  824,500                39,688                  890,300                    Total expenditures 103,504                2,194,500             219,188                2,517,192                       Change in fund balance before             other financing sources (uses)(14,461)                 249,039                155,070                389,648                 OTHER FINANCING SOURCES (USES) Transfers out (499)                       ‐                             (190,300)               (190,799)                   Change in fund balance (14,960)                 249,039                (35,230)                 198,849                 Fund balance ‐ Beginning of the year 127,229                722,540                397,437                1,247,206              Fund balance ‐ End of the year 112,269$              971,579$              362,207$              1,446,055$           CITY OF TIGARD, OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES for the year ended June 30, 2016 102 Variance Actual with final Original Final Amounts budget REVENUES Collection of bonded assessments 120,000$              120,000$              65,243$                (54,757)$                Interest earnings ‐                             ‐                             23,800                  23,800                      Total revenues 120,000                120,000                89,043                  (30,957)                  EXPENDITURES Debt service:    Principal 74,700                  77,400                  77,392                  8                                Interest 28,500                  28,500                  26,112                  2,388                           Total expenditures 103,200                105,900                103,504                2,396                              Change in fund balance before             other financing sources (uses)16,800                  14,100                  (14,461)                 (28,561)                  OTHER FINANCING SOURCES (USES) Transfers out (499)                       (499)                       (499)                       ‐                              Reserve for future expenditures (580,019)               (577,319)               ‐                             577,319                    Total other financing sources (uses)(580,518)               (577,818)               (499)                       577,319                       Change in fund balance (563,718)               (563,718)               (14,960)                 548,758                 Fund balance ‐ Beginning of the year 563,718                563,718                127,229                (436,489)                Fund balance ‐ End of the year ‐$                           ‐$                           112,269$              112,269$               CITY OF TIGARD, OREGON BANCROFT BOND DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 103 Variance Actual with final Original Final Amounts budget REVENUES Taxes 2,475,757$          2,475,757$          2,426,193$          (49,564)$                Interest earnings 4,417                    4,417                    17,346                  12,929                      Total revenues 2,480,174             2,480,174             2,443,539             (36,635)                  EXPENDITURES Debt service:    Principal 1,370,000             1,370,000             1,370,000             ‐                                 Interest 824,525                824,525                824,500                25                           Reserve for future expenditures 1,120,697             1,120,697             ‐                             1,120,697                 Total expenditures 3,315,222             3,315,222             2,194,500             1,120,722                    Change in fund balance before          other financing sources (uses)(835,048)               (835,048)               249,039                1,084,087              OTHER FINANCING SOURCES (USES) Transfers out (1,893)                   (1,893)                   ‐                             1,893                        Change in fund balance (836,941)               (836,941)               249,039                1,085,980              Fund balance ‐ Beginning of the year 836,941                836,941                722,540                (114,401)                Fund balance ‐ End of the year ‐$                           ‐$                           971,579$              971,579$               CITY OF TIGARD, OREGON GENERAL OBLIGATION DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 104 Variance Actual with final Original Final Amounts budget REVENUES Property taxes 397,792$              397,792$              369,948$              (27,844)$                Interest earnings 1,000                    1,000                    4,310                    3,310                        Total revenues 398,792                398,792                374,258                (24,534)                  EXPENDITURES *Debt service:    Principal 179,500                179,500                179,500                ‐                                 Interest 39,698                  39,698                  39,688                  10                           Reserve for future expenditure 174,991                174,991                ‐                             174,991                    Total expenditures 394,189                394,189                219,188                175,001                       Change in fund balance before          other financing sources (uses)4,603                    4,603                    155,070                150,467                 OTHER FINANCING SOURCES (USES) Transfers out (175,300)               (190,300)               (190,300)                ‐                                 Change in fund balance (170,697)               (185,697)               (35,230)                 150,467                 Fund balance ‐ Beginning of the year 170,697                185,697                397,437                211,740                 Fund balance ‐ End of the year ‐$                           ‐$                           362,207$              362,207$                * Budget appropriation for the City's Urban Renewal Agency is made at the debt service program level. CITY OF TIGARD, OREGON URBAN RENEWAL AGENCY DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 105 This page intentionally left blank. Capital Project Funds Combining statements for all individual non-major capital projects funds are reported here. The combined totals are reported in the combining non-major governmental fund statements. Schedules of revenues, expenditures and changes in fund balance— budget and actual — are also presented here for each capital projects fund. Non-major Capital Projects Funds: Facility Fund – Accounts for major city owned facility improvements. Resources are primarily transfers in from the General Fund. Transportation Development Tax Fund – Accounts for traffic impact fees collected on roads within the city’s urban service areas. This fund replaced theTraffic Impact Fee Fund starting July 1, 2009. Funds will be used for highways and transit capital improvements in the city’s Capital Improvement Plan. Transportation System Development Charges (SDC) Fund – this fund was established to track the revenues and expenditures associated with the collection of transportation system development charges. The fee is collected on the issue of building permits for any new residential multi-family, or commercial construction to assist with infrastructure capacity needs. Underground Utility Fund – Accounts for resources received from developers for future underground utility improvements. Street Maintenance Fee Fund – Accounts for revenues and expenditures for the Street Maintenance Fee. This fee provides revenue designated for use in the maintenance of existing city streets. Parks Capital Fund – Accounts for revenues earmarked for improvements to park and recreational facilities within the city. Resources are primarily transfers in of system development charges and other funds and grants and donations. Expenditures consist of various park, trail development and open space acquisition projects. Parks Bond Fund – Accounts for the voter approved a $17 million parks bond debt issued for purchase of land and green spaces to develop city parks. Parks System Development Charges (SDC) Fund – Accounts for revenues associated with the collection of Parks System Development Charges. Resources are used to fund the acquisition, development and expansion of additional recreation spaces and facilities that are included in the city’s Park Master Plan. Transportation Capital Improvement Project Fund– Accounts for capital improvement projects funded with transportation revenues; including Gas Tax, Traffic Impact Fees and Transportation Development Tax. Urban Renewal Agency Capital Improvement Fund – This fund was established in FY 2007–08 for the creation of a new urban renewal agency to improve downtown Tigard. Expenses are for capital improvements within the urban renewal plan. Resources are from financing proceeds or transfers in from the Urban Renewal Debt Service Fund. This page intentionally left blank. Transportation Underground Street Facility Development Utility Maintenance Fund Tax Fund Fund Fee Fund ASSETS Cash and cash equivalents 1,004,090$        ‐$                         ‐$                         1,546,121$         Investments 181,971              ‐                           ‐                           280,203               Accounts receivable 282                      409                      116                      244,557               Assessments liens receivable ‐                           3,413                  ‐                           ‐                            Restricted cash and cash equivalents ‐                           2,937,986          381,640              ‐                            Restricted investments ‐                           453,912              69,165                ‐                               Total assets 1,186,343$        3,395,720$        450,921$            2,070,881$         LIABILITIES Accounts payable and accrued liabilities 56,725$              ‐$                         ‐$                         465,135$             Deposits ‐                           ‐                           ‐                           ‐                            Advances from other funds‐interfund loans ‐                           ‐                           ‐                           ‐                               Total liabilities 56,725                ‐                           ‐                           465,135               DEFERRED INFLOWS OF RESOURCES Special assessments/liens ‐                           3,413                  ‐                           ‐                            FUND BALANCES (DEFICIT) Restricted for: Street maintenance and improvements ‐                           3,392,307          ‐                           ‐                            Park development and improvements ‐                           ‐                           ‐                           ‐                            Underground utilities ‐                           ‐                           450,921              ‐                            Committed for: Street maintenance and improvements ‐                           ‐                           ‐                           1,605,746           Assigned to:      City facilities 1,129,618          ‐                           ‐                           ‐                            Unassigned ‐                           ‐                           ‐                           ‐                            Total fund balances (deficit)1,129,618          3,392,307          450,921              1,605,746           Total liabilities, deferred inflows of    resources and fund balance 1,186,343$        3,395,720$        450,921$            2,070,881$         CITY OF TIGARD, OREGON CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 2016 106 Transportation Transportation Parks Parks Parks Capital Urban Renewal SDC Capital Bond SDC Improvement Agency Capital Fund Fund Fund Fund Fund Projects Fund Total ‐$                       ‐$                       ‐$                       ‐$                       ‐$                       152,970$          2,703,181$       ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         462,174             ‐                         460                    ‐                         447                    26,759              ‐                         273,030             ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         3,413                 988,629            430,944            1,122,349        3,379,349        1,231,253        ‐                         10,472,150       ‐                         ‐                         549,436            ‐                         ‐                         1,072,513         988,629$          431,404$          1,122,349$      3,929,232$      1,258,012$      152,970$          14,986,461$     ‐$                       39,287$            ‐$                       ‐$                       971,384$          11,221$            1,543,752$       ‐                         ‐                         ‐                         ‐                         ‐                         1,400                1,400                 ‐                         ‐                         ‐                         ‐                         ‐                         757,678            757,678             ‐                         39,287              ‐                         ‐                         971,384            770,299            2,302,830         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         3,413                 988,629            ‐                         ‐                         ‐                         286,628            ‐                         4,667,564         ‐                         392,117            1,122,349        3,929,232        ‐                         ‐                         5,443,698         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         450,921             ‐                          ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         1,605,746         ‐                          ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         1,129,618         ‐                         ‐                         ‐                         ‐                         ‐                         (617,329)          (617,329)           988,629            392,117            1,122,349        3,929,232        286,628            (617,329)          12,680,218       988,629$          431,404$          1,122,349$      3,929,232$      1,258,012$      152,970$          14,986,461$     107 Transportation Underground Street Facility Development Utility Maintenance Fund Tax Fund Fund Fee Fund REVENUES Charges for services ‐$                    2,642,669$        78,621$            2,233,364$       Intergovernmental revenues ‐                       ‐                       ‐                     ‐                      Interest earnings 6,847                  20,382                1,993                12,008               Miscellaneous revenues 3                          ‐                       ‐                     57                          Total revenues 6,850                  2,663,051          80,614              2,245,429         EXPENDITURES Community development ‐                           ‐                           ‐                         ‐                          Capital projects 864,427              15,994                ‐                         1,805,339            Total expenditures 864,427              15,994                ‐                         1,805,339            Change in fund balance before       other financing sources (uses)(857,577)             2,647,057          80,614              440,090             OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets ‐                           ‐                           ‐                         ‐                          Transfers in 859,732              ‐                           ‐                         ‐                          Transfers out (29,325)               (402,949)             (128,359)          (228,735)           Resources provided by other funds ‐                           ‐                           ‐                         ‐                             Total other financing sources (uses) 830,407              (402,949)             (128,359)          (228,735)                 Change in fund balance (27,170)               2,244,108          (47,745)             211,355             Fund balance ‐ Beginning of the year 1,156,788          1,148,199          498,666            1,394,391         Fund balance ‐ End of the year 1,129,618$        3,392,307$        450,921$          1,605,746$       CITY OF TIGARD, OREGON CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE for the year ended June 30, 2016 108 Transportation Transportation Parks Parks Parks Capital Urban Renewal SDC Capital Bond SDC Improvement Agency Capital Fund Fund Fund Fund Fund Projects Fund Total 988,140$          ‐$                  ‐$                  2,473,770$      ‐$                  ‐$                  8,416,564$       ‐                     ‐                     ‐                     ‐                     194,669            130,516            325,185             1,489                33,240              16,470              14,284              ‐                     ‐                     106,713             ‐                     180                    ‐                     ‐                     1,418                78                      1,736                 989,629            33,420              16,470              2,488,054        196,087            130,594            8,850,198         ‐                         ‐                         ‐                         ‐                         ‐                         1,650,000        1,650,000         ‐                         1,425,833        ‐                         15,994              1,437,665        635,039            6,200,291         ‐                         1,425,833        ‐                         15,994              1,437,665        2,285,039        7,850,291         989,629            (1,392,413)       16,470              2,472,060        (1,241,578)       (2,154,445)       999,907             ‐                         ‐                         ‐                         ‐                         ‐                         1,650,000        1,650,000         ‐                         1,416,152        ‐                         ‐                         1,366,647        190,300            3,832,831         (1,000)               ‐                         (1,057,111)       (274,647)          ‐                         ‐                         (2,122,126)        ‐                         ‐                         ‐                         ‐                         ‐                         49,500              49,500               (1,000)               1,416,152        (1,057,111)       (274,647)          1,366,647        1,889,800        3,410,205         988,629            23,739              (1,040,641)       2,197,413        125,069            (264,645)          4,410,112         ‐                         368,378            2,162,990        1,731,819        161,559            (352,684)          8,270,106         988,629$          392,117$          1,122,349$      3,929,232$      286,628$          (617,329)$        12,680,218$     109 Variance Actual with final Original Final Amounts budget REVENUES Interest earnings 3,212$                  3,212$                  6,847$                  3,635$                   Miscellaneous revenues ‐                              ‐                             3                            3                             Total revenues 3,212                    3,212                    6,850                    3,638                     EXPENDITURES Capital projects 1,456,100             1,456,100             864,427                591,673                    Change in fund balance before       other financing sources (uses)(1,452,888)           (1,452,888)           (857,577)               595,311                 OTHER FINANCING SOURCES (USES) Transfers in 1,370,266             1,370,266             859,732                (510,534)                Transfers out (29,325)                 (29,325)                 (29,325)                 ‐                              Contingency (50,000)                 (50,000)                 ‐                             50,000                   Reserve for future expenditures (513,234)               (513,234)               ‐                             513,234                    Total other financing sources (uses)777,707                777,707                830,407                52,700                         Change in fund balance (675,181)               (675,181)               (27,170)                 648,011                 Fund balance ‐ Beginning of the year 675,181                675,181                1,156,788             481,607                 Fund balance ‐ End of the year ‐$                           ‐$                           1,129,618$          1,129,618$           CITY OF TIGARD, OREGON FACILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 110 Variance Actual with final Original Final Amounts budget REVENUES Charges for services 700,000$              700,000$              2,642,669$          1,942,669$           Interest earnings 11,279                  11,279                  20,382                  9,103                     Total revenues 711,279                711,279                2,663,051             1,951,772              EXPENDITURES Capital projects 6,800                    16,000                  15,994                  6                                Change in fund balance before       other financing sources (uses)704,479                695,279                2,647,057             1,951,778              OTHER FINANCING SOURCES (USES) Transfers out (526,690)               (536,690)               (402,949)               133,741                 Contingency (250,000)               (240,800)               ‐                             240,800                 Reserve for future expenditures (1,040,422)           (1,040,422)           ‐                             1,040,422                 Total other financing sources (uses)(1,817,112)           (1,817,912)           (402,949)               1,414,963                    Change in fund balance (1,112,633)           (1,122,633)           2,244,108             3,366,741              Fund balance ‐ Beginning of the year 1,112,633             1,122,633             1,148,199             25,566                   Fund balance ‐ End of the year ‐$                           ‐$                           3,392,307$          3,392,307$           CITY OF TIGARD, OREGON TRANSPORTATION DEVELOPMENT TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 111 Variance Actual with final Original Final Amounts budget REVENUES Charges for services 48,948$                48,948$                78,621$                29,673$                 Interest earnings 7,160                    7,160                    1,993                    (5,167)                       Total revenues 56,108                  56,108                  80,614                  24,506                   OTHER FINANCING SOURCES (USES) Transfer out (320,477)               (371,477)               (128,359)               243,118                 Contingency (50,000)                 (50,000)                 ‐                             50,000                   Reserve for future expenditures (110,931)               (110,931)               ‐                             110,931                    Total other financing uses (481,408)               (532,408)               (128,359)               404,049                       Change in fund balance (425,300)               (476,300)               (47,745)                 428,555                 Fund balance ‐ Beginning of the year 425,300                476,300                498,666                22,366                   Fund balance ‐ End of the year ‐$                           ‐$                           450,921$              450,921$                 Budgeted Amounts CITY OF TIGARD, OREGON UNDERGROUND UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016 112 Variance Actual with final Original Final Amounts budget REVENUES Charges for services 2,079,810$          2,079,810$          2,233,364$          153,554$               Interest earnings 2,043                    2,043                    12,008                  9,965                     Miscellaneous revenues 1,299                    1,299                    57                          (1,242)                       Total revenues 2,083,152             2,083,152             2,245,429             162,277                 EXPENDITURES Capital projects 1,830,000             1,830,000             1,805,339             24,661                      Change in fund balance before       other financing sources (uses)253,152                253,152                440,090                186,938                 OTHER FINANCING SOURCES (USES) Transfers out (228,735)               (228,735)               (228,735)               ‐                              Contingency (200,000)               (200,000)               ‐                             200,000                 Reserve for future expenditures (1,185,002)           (1,185,002)           ‐                             1,185,002                 Total other financing sources (uses) (1,613,737)           (1,613,737)           (228,735)               1,385,002                    Change in fund balance (1,360,585)           (1,360,585)           211,355                1,571,940              Fund balance ‐ Beginning of the year 1,360,585             1,360,585             1,394,391             33,806                   Fund balance ‐ End of the year ‐$                           ‐$                           1,605,746$          1,605,746$           CITY OF TIGARD, OREGON STREET MAINTENANCE FEE FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 113 Variance Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues 65,000$                65,000$                988,140$              923,140$               Interest earnings ‐                             ‐                             1,489                    1,489                        Total revenues 65,000                  65,000                  989,629                924,629                 OTHER FINANCING SOURCES (USES) Transfers out (11,000)                 (11,000)                 (1,000)                   10,000                   Contingency (50,000)                 (50,000)                 ‐                             50,000                   Reserve for future expenditures (4,000)                   (4,000)                   ‐                             4,000                        Total other financing sources (uses)(65,000)                 (65,000)                 (1,000)                   64,000                         Change in fund balance ‐                             ‐                             988,629                988,629                 Fund balance ‐ Beginning of the year ‐                             ‐                             ‐                             ‐                              Fund balance ‐ End of the year ‐$                           ‐$                           988,629$              988,629$               CITY OF TIGARD, OREGON TRANSPORTATION SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 114 Variance Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues ‐$                           10,000$                ‐$                           (10,000)$                Interest earnings 3,015                    3,015                    33,240                  30,225                   Miscellaneous revenues ‐                             ‐                             180                        180                            Total revenues 3,015                    13,015                  33,420                  20,405                   EXPENDITURES Capital projects 3,151,561             3,696,561             1,425,833             2,270,728                 Change in fund balance before       other financing sources (uses)(3,148,546)           (3,683,546)           (1,392,413)           2,291,133              OTHER FINANCING SOURCES (USES) Transfers in 3,151,561             3,686,561             1,416,152             (2,270,409)            Transfers out (123,932)               (123,932)               ‐                             123,932                 Reserve for future expenditures (177,823)               (177,823)               ‐                             177,823                    Total other financing sources (uses)2,849,806             3,384,806             1,416,152             (1,968,654)                  Change in fund balance (298,740)               (298,740)               23,739                  322,479                 Fund balance ‐ Beginning of the year 298,740                298,740                368,378                69,638                   Fund balance ‐ End of the year ‐$                           ‐$                           392,117$              392,117$               CITY OF TIGARD, OREGON PARKS CAPITAL FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 115 Variance Actual with final Original Final Amounts budget REVENUES Interest earnings 4,020$                  4,020$                  16,470$                12,450$                 OTHER FINANCING SOURCES (USES) Transfers out (1,382,013)           (1,897,013)           (1,057,111)           839,902                 Reserve for future expenditures (322,007)               (322,007)               ‐                             322,007                    Total other financing uses (1,704,020)           (2,219,020)           (1,057,111)           1,161,909                 Change in fund balance (1,700,000)           (2,215,000)           (1,040,641)           1,174,359              Fund balance ‐ Beginning of the year 1,700,000             2,215,000             2,162,990             (52,010)                  Fund balance ‐ End of the year ‐$                           ‐$                           1,122,349$          1,122,349$           CITY OF TIGARD, OREGON PARKS BOND FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 116 Variance Actual with final Original Final Amounts budget REVENUES Charges for services 478,027$              478,027$              2,473,770$          1,995,743$           Interest earnings 19,782                  19,782                  14,284                  (5,498)                        Total revenues 497,809                497,809                2,488,054             1,990,245              EXPENDITURES Capital projects 6,800                    16,000                  15,994                  6                                Change in fund balance       before other financing sources (uses) 491,009                481,809                2,472,060             1,990,251              OTHER FINANCING SOURCES (USES) Transfers out (1,180,414)           (1,200,414)           (274,647)               925,767                 Contingency (100,000)               (70,800)                 ‐                             70,800                   Reserve for future expenditures (210,649)               (210,649)               ‐                             210,649                    Total other financing sources (uses) (1,491,063)           (1,481,863)           (274,647)               1,207,216                    Change in fund balance (1,000,054)           (1,000,054)           2,197,413             3,197,467              Fund balance ‐ Beginning of the year 1,000,054             1,000,054             1,731,819             731,765                 Fund balance ‐ End of the year ‐$                           ‐$                           3,929,232$          3,929,232$             Budgeted Amounts CITY OF TIGARD, OREGON PARKS SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016 117 Variance Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues ‐$                      ‐$                      194,669$              194,669$               Miscellaneous revenues ‐                         ‐                         1,418                    1,418    Total revenues ‐                         ‐                         196,087                196,087                 EXPENDITURES Capital projects 1,073,448             1,685,448             1,437,665             247,783                    Change in fund balance before       other financing sources (uses)(1,073,448)           (1,685,448)           (1,241,578)           443,870                 OTHER FINANCING SOURCES (USES) Transfers in 1,083,448             1,695,448             1,366,647             (328,801)                Transfers out (57,410)                 (57,410)                 ‐                         57,410                   Reserve for future expenditures (332,209)               (332,209)               ‐                         332,209                    Total other financing sources 693,829                1,305,829             1,366,647             60,818                         Change in fund balance (379,619)               (379,619)               125,069                504,688                 Fund balance ‐ Beginning of the year 379,619                379,619                161,559                (218,060)                Fund balance ‐ End of the year ‐$                      ‐$                      286,628$              286,628$               CITY OF TIGARD, OREGON TRANSPORTATION CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 118 Variance Actual with final Original Final Amounts budget REVENUES Rental revenues 84,000$                84,000$                130,516$              46,516$                 Miscellaneous revenues ‐                         ‐                         78                          78                              Total revenues 84,000                   84,000                   130,594                46,594                    EXPENDITURES * Capital projects 705,000                2,370,000             2,285,039             84,961                       Change in fund balance before       other financing sources (uses)(621,000)               (2,286,000)            (2,154,445)            131,555                 OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets ‐                             1,650,000             1,650,000             ‐                              Transfers in 175,300                190,300                190,300                ‐                                 Total other financing sources 175,300                1,840,300             1,840,300             ‐                                 Change in fund balance (445,700)               (445,700)               (314,145)               131,555                 Fund balance ‐ Beginning of the year 445,700                445,700                454,494                8,794                      Fund balance ‐ End of the year ‐$                           ‐$                           140,349                140,349$               Reconciliation of budgetary fund balance      to GAAP basis fund balance: Budgeted resources not qualifying as revenues or other   financing sources under GAAP:      Interfund loans are treated as revenue on a         budgetary basis.  Transfers in are reclassified        as payables on a GAAP basis.(757,678)                Fund balance ‐ GAAP basis (617,329)$              * For budgetary puposes expenditures are appropriated as capital projects, however on the GAAP statements    non‐capital transactions are recorded as program expenditures CITY OF TIGARD, OREGON URBAN RENEWAL AGENCY CAPITAL PROJECT FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 119 This page intentionally left blank. Enterprise Funds For GAAP reporting purposes, the city reports three proprietary funds as major funds. These funds are the Sanitary Sewer Fund, the Stormwater Fund (which consists of the Stormwater Fund and the Water Quality/Quantity Fund) and the Water Fund (which includes the Water Fund, Water SDC Fund, Water CIP Fund and Water Debt Service Fund). For budgetary and legal purposes, these funds are accounted for separately as listed below. The city’s enterprise funds meet the criteria for major fund reporting and are reported in the basic financial statements. Schedules or revenues and changes in fund net position — budget and actual are presented here for each individual enterprise fund as required by Oregon regulations. Sanitary Sewer Fund – Accounts for the city’s sewer utility operations. Stormwater Fund – Accounts for the city’s storm drainage operations and includes the following fund: •Water Quality/Quantity Fund – Accounts for the fees charged to new development for the additional impact on the stormwater system. Water Fund – Accounts for the city’s water utility operations and includes the following funds: •Water SDC Fund – Accounts for the water impact fees charged to new development. •Water CIP Fund – Accounts for capital projects to expand or improve the city’s water system infrastructure. •Water Debt Service Fund – Accounts for debt service on the water revenue bonds and long-term note. Variance Actual with final Original Final Amounts budget REVENUES Charges for services 1,590,932$          1,590,932$          1,791,302$          200,370$               Connection fees 16,549                  16,549                  89,235                  72,686                   Intergovernmental revenue 221,770                221,770                127,148                (94,622)                  Interest earnings 100,333                100,333                10,344                  (89,989)                  Miscellaneous revenues 143,091                143,091                35,795                  (107,296)                   Total revenues 2,072,675             2,072,675             2,053,824             (18,851)                  EXPENDITURES Public works 1,960,087             1,960,087             1,817,475             142,612                 Capital projects 984,693                984,693                253,778                730,915                    Total expenditures 2,944,780             2,944,780             2,071,253             873,527                       Change in fund balance before          other financing sources (uses)(872,105)               (872,105)               (17,429)                 854,676                 OTHER FINANCING SOURCES (USES) Transfers in ‐                             ‐                             104                        104                         Transfers out (76,934)                 (114,434)               (30,560)                 83,874                   Repayment on interfund loan ‐                             ‐                             35,152                  35,152                   Contingency (400,000)               (371,000)               ‐                             371,000                 Reserve for future expenditures (2,237,837)           (2,237,837)           ‐                             2,237,837                 Total other financing sources (uses) (2,714,771)           (2,723,271)           4,696                    2,727,967                    Change in fund balance (3,586,876)           (3,595,376)           (12,733)                 3,582,643              Fund balance ‐ Beginning of the year 3,586,876             3,595,376             4,242,650             647,274                 Fund balance ‐ End of the year ‐$                           ‐$                           4,229,917$          4,229,917$           CITY OF TIGARD, OREGON SANITARY SEWER FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 120 Operating and  Non‐Operating  Revenues Expenditures /  Expenses Budgetary basis 2,089,080$              2,101,813$               Unavailable revenue (19,693)                     ‐                                  Contributed capital 595,178                    ‐                                  Interfund loan payments (35,152)                     ‐                                  Loss on disposal of capital assets (3,215)                       ‐                                  Compensated absences ‐                                 142                             Expenditures capitalized ‐                                 (236,125)                    Depreciation expense ‐                                 695,290                     Net OPEB obligation ‐                                 3,212                          Operating and non‐operating revenue    and expenses ‐ GAAP basis 2,626,198$              2,564,332$               CITY OF TIGARD, OREGON SANITARY SEWER FUND RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30, 2016 121 Variance Actual with final Original Final Amounts budget REVENUES Charges for services 2,595,949$          2,595,949$          3,058,382$          462,433$               Interest earnings 7,936                    7,936                    34,614                  26,678                   Miscellaneous revenues 3,100                    3,100                    18,543                  15,443                      Total revenues 2,606,985             2,606,985             3,111,539             504,554                 EXPENDITURES Public works 1,738,126             1,738,126             1,596,821             141,305                 Capital projects 1,265,096             1,327,096             285,251                1,041,845                 Total expenditures 3,003,222             3,065,222             1,882,072             1,183,150                    Change in fund balance before          other financing sources (uses)(396,237)               (458,237)               1,229,467             1,687,704              OTHER FINANCING USES Transfers out (433,356)               (453,406)               (82,468)                 370,938                 Contingency (200,000)               (178,450)                ‐                             178,450                 Reserve for future expenditures (2,744,561)           (2,744,561)           ‐                             2,744,561                 Total other financing uses (3,377,917)           (3,376,417)           (82,468)                 3,293,949                    Change in fund balance (3,774,154)           (3,834,654)           1,146,999             4,981,653              Fund balance ‐ Beginning of the year 3,774,154             3,834,654             4,623,172             788,518                 Fund balance ‐ End of the year ‐$                           ‐$                           5,770,171$          5,770,171$           CITY OF TIGARD, OREGON STORMWATER FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 122 Variance Actual with final Original Final Amounts budget REVENUES Connection fees (253)$                    ‐$                           550$                      550$                       Interest earnings 15,102                  14,849                  4,421                    (10,428)                     Total revenues 14,849                  14,849                  4,971                    (9,878)                    OTHER FINANCING SOURCES (USES) Transfers out (16,576)                 (16,576)                 (16,576)                 ‐                              Contingency (50,000)                 (50,000)                 ‐                             50,000                   Reserve for future expenditures (776,978)               (776,978)               ‐                             776,978                   Total other financing sources (uses)(843,554)               (843,554)               (16,576)                 826,978                    Change in fund balance (828,705)               (828,705)               (11,605)                 817,100                 Fund balance ‐ Beginning of the year 828,705                828,705                1,260,969             432,264                 Fund balance ‐ End of the year ‐$                           ‐$                           1,249,364$          1,249,364$           CITY OF TIGARD, OREGON WATER QUALITY/QUANTITY FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 123 Operating and  Non‐operating Expenditures/ Revenues Expenses Stormwater 3,111,539$            1,981,116$             Water Quality / Quantity 4,971                       ‐                                Total, budgetary basis 3,116,510               1,981,116                Contributed capital 1,459,167               ‐                                Loss on disposal of capital assets (26,243)                   ‐                                Compensated absences ‐                               483                           Expenditures capitalized ‐                               (267,458)                  Depreciation expense ‐                               478,075                   Net OPEB obligation ‐                               3,747                        Operating and non‐operating    revenue and expenses ‐ GAAP basis 4,549,434$            2,195,963$             CITY OF TIGARD, OREGON STORMWATER FUNDS RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30, 2016 124 Variance Actual with final Original Final Amounts budget REVENUES Charges for services 18,858,513$        18,858,513$        20,918,497$        2,059,984$           Interest earnings 30,644                  30,644                  98,111                  67,467                   Miscellaneous revenues 10,933                  10,933                  62,806                  51,873                      Total revenues 18,900,090          18,900,090          21,079,414          2,179,324              EXPENDITURES Public works 8,682,558             8,682,558             8,621,970             60,588                      Change in fund balance before       other financing sources (uses)10,217,532          10,217,532          12,457,444          2,239,912              OTHER FINANCING SOURCES (USES) Transfers in 58,751                  58,751                  58,751                  ‐                              Transfers out (24,882,226)         (24,963,176)         (19,171,344)         5,791,832              Contingency (500,000)               (427,550)               ‐                             427,550                 Reserve for future expenditures (5,139,072)           (5,139,072)           ‐                             5,139,072                 Total other financing sources (uses) (30,462,547)         (30,471,047)         (19,112,593)         11,358,454                 Change in fund balance (20,245,015)         (20,253,515)         (6,655,149)           13,598,366           Fund balance ‐ Beginning of the year 20,245,015          20,253,515          22,967,613          2,714,098              Fund balance ‐ End of the year ‐$                           ‐$                           16,312,464$        16,312,464$         CITY OF TIGARD, OREGON WATER FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 125 Variance Actual with final Original Final Amounts budget REVENUES System development charges 873,715$              873,715$              2,811,942$          1,938,227$           Interest earnings 233                        233                        35,173                  34,940                      Total revenues 873,948                873,948                2,847,115             1,973,167              OTHER FINANCING SOURCES (USES) Transfers out (299,130)               (3,699,130)           (1,901,382)           1,797,748              Contingency (100,000)               (100,000)               ‐                             100,000                 Reserve for future expenditures (4,871,899)           (1,471,899)           ‐                             1,471,899                 Total other financing sources (uses) (5,271,029)           (5,271,029)           (1,901,382)           3,369,647                    Change in fund balance (4,397,081)           (4,397,081)           945,733                5,342,814              Fund balance ‐ Beginning of the year 4,397,081             4,397,081             4,571,596             174,515                 Fund balance ‐ End of the year ‐$                           ‐$                           5,517,329$          5,517,329$           CITY OF TIGARD, OREGON WATER SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 126 Variance Actual with final Original Final Amounts budget REVENUES Interest earnings 13,096$                13,096$                36,632$                23,536$                 Miscellaneous revenues 5,318                    5,318                    76,501                  71,183                      Total revenues 18,414                  18,414                  113,133                94,719                   EXPENDITURES Capital projects 29,168,682          35,828,682          26,999,981          8,828,701                 Change in fund balance before       other financing sources (uses)(29,150,268)         (35,810,268)         (26,886,848)         8,923,420              OTHER FINANCING SOURCES (USES) Transfers in 18,840,921          22,240,921          14,297,978          (7,942,943)            Transfers out (231,256)               (231,256)               (231,256)               ‐                              Reserve for future expenditures (7,479,397)           (4,219,397)           ‐                             4,219,397                 Total other financing sources (uses) 11,130,268          17,790,268          14,066,722          (3,723,546)                  Change in fund balance (18,020,000)         (18,020,000)         (12,820,126)         5,199,874              Fund balance ‐ Beginning of the year 18,020,000          18,020,000          17,223,215          (796,785)                Fund balance ‐ End of the year ‐$                           ‐$                           4,403,089$          4,403,089$           CITY OF TIGARD, OREGON WATER CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 127 Variance Actual with final Original Final Amounts budget REVENUES Interest earnings ‐$                           ‐$                           83,595$                83,595$                 EXPENDITURES Debt service:   Principal 98,005                  98,005                  98,005                  ‐                                Interest 6,161,270             6,161,270             6,161,266             4                                Total expenditures 6,259,275             6,259,275             6,259,271             4                                Change in fund balance before       other financing sources (uses)(6,259,275)           (6,259,275)           (6,175,676)           83,599                   OTHER FINANCING SOURCES (USES) Transfers in 6,259,273             6,259,273             6,259,271             (2)                            Transfers out (7,906)                   (7,906)                   ‐                             7,906                     Reserve for future expenditures (7,041,099)           (7,041,099)           ‐                             7,041,099                 Total other financing sources (uses)(789,732)               (789,732)               6,259,271             7,049,003                    Change in fund balance (7,049,007)           (7,049,007)           83,595                  7,132,602              Fund balance ‐ Beginning of the year 7,049,007             7,049,007             6,678,704             (370,303)                Fund balance ‐ End of the year ‐$                           ‐$                           6,762,299$          6,762,299$           CITY OF TIGARD, OREGON WATER DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 128 Operating and  Non‐operating Expenditures / Revenues  Expenses Water 21,138,165$            27,793,314$             Water SDC 2,847,115                 1,901,382                  Water CIP 14,411,111              27,231,237               Water Debt Service 6,342,866                 6,259,271                  Total, budgetary basis 44,739,257              63,185,204               Contributed capital 870,210                    ‐                                  Loss on disposal of capital assets (2,932)                       ‐                                  Elimination of water interfund transfers (20,557,249)             (20,557,249)              Compensated absences ‐                                 (25,038)                      Expenditures capitalized ‐                                 (26,809,640)              Principal payments ‐                                 (98,005)                      Accrued interest ‐                                 201,542                     Amortization of bond premium ‐                                 (639,844)                    Interest capitalized ‐                                 (1,194,658)                Depreciation expense ‐                                 1,394,697                  Net OPEB obligation ‐                                 6,958                          Operating and non‐operating    revenue and expenses ‐ GAAP basis 25,049,286$            15,463,967$             CITY OF TIGARD, OREGON WATER FUNDS RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30, 2016 129 Total Total Total Sanitary Sewer Stormwater Water Sanitary Sewer Fund 4,229,917$          ‐$                           ‐$                            Stormwater Fund ‐                             5,770,171             ‐                              Water Quality /Quantity Fund ‐                             1,249,364             ‐                              Water Fund ‐                             ‐                             16,312,464           Water SDC Fund ‐                             ‐                             5,517,329              Water CIP Fund ‐                             ‐                             4,403,089              Water Debt Service Fund ‐                             ‐                             6,762,299              Fund balance ‐ budget basis 4,229,917             7,019,535             32,995,181           Adjustments from budgetary basis to    generally accepted accounting principles basis: Capital assets, net 17,696,008          11,492,783          199,264,558         Sewer funds payable (21,780)                 ‐                             ‐                              Assets held for resale 185,021                260,021                ‐                              Unavailable revenue 80,958                  ‐                             ‐                              Compensated absences (24,009)                 (26,746)                 (89,923)                  Long‐term debt ‐                             ‐                             (141,011,261)        Accrued interest payable ‐                             ‐                             (2,614,328)            Interfund loans 102,495                ‐                             ‐                              OPEB obligation (38,110)                 (43,189)                 (82,380)                  Total Net Position ‐ GAAP basis 22,210,500$        18,702,404$        88,461,847$         CITY OF TIGARD, OREGON ENTERPRISE FUNDS RECONCILIATION OF BUDGETARY FUND BALANCE TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET POSITION June 30, 2016 130 This page intentionally left blank. Internal Service Funds Combining statements for internal service funds are reported here. The combined totals are reported alongside the enterprise funds in the basic financial statements. Schedules of revenues, expenses and changes in fund net position — budget and actual — are presented here for each internal service fund as required by Oregon regulations. Internal Service Funds: Central Services Fund – Accounts for the central administrative functions within the city. Expenditures are primarily payroll and related expenses for city policy and administration functions. Resources are charges for services to city departments and internal customers. Fleet/Property Management Fund – Accounts for activity related to the fleet maintenance and property management divisions in the city. Resources are charges for services to city departments and internal customers. Insurance Fund – Accounts for the city’s risk management program and insurance coverage premiums and related costs to help reduce the overall insurance cost to the city. Resources are primarily refunds of prior years’ premiums. Central Fleet/Property Services Management Insurance Fund Fund Fund Total ASSETS Cash and cash equivalents 1,416,272$   384,486$       760,012$   2,560,770$    Investments ‐ ‐ 137,737      137,737          Accounts receivable 19,661           ‐ 2,860          22,521            Prepaids 33,274           ‐ ‐ 33,274            Inventory ‐ 31,921            ‐ 31,921               Total assets 1,469,207      416,407          900,609      2,786,223       LIABILITIES  Accounts payable and accrued liabilities 165,388         260,141          42                425,571          Unearned revenue 15,714           ‐ ‐ 15,714            Accrued compensated absences 269,716         29,364            ‐ 299,080          Net OPEB obligation 279,179         23,928            ‐ 303,107             Total liabilities 729,997         313,433          42                1,043,472       NET POSITION    Net position, unrestricted 739,210$       102,974$       900,567$   1,742,751$    CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION June 30, 2016 131 Central Fleet/Property Services Management Insurance Fund Fund Fund Total OPERATING REVENUES Charges for services 7,059,772$   1,783,024$     ‐$                 8,842,796$    Miscellaneous revenues 14,425           2,230               17,101        33,756               Total operating revenues 7,074,197     1,785,254       17,101        8,876,552      OPERATING EXPENSES Salaries and wages 4,433,069     620,767           ‐                   5,053,836      Contracted services 745,153         316,656           2,163           1,063,972      General, administrative and other 2,005,631     847,384           5,269           2,858,284         Total operating expenses 7,183,853     1,784,807       7,432           8,976,092            Operating income (loss) (109,656)       447                  9,669           (99,540)           NONOPERATING REVENUE Interest revenue 29,919           1,200               3,072           34,191                 Operating income (loss)(79,737)          1,647               12,741        (65,349)           INCOME (LOSS) BEFORE CONTRIBUTIONS   AND TRANSFERS Transfers in 572,438         19,647             ‐                   592,085          Transfers out ‐                      ‐                        (983)            (983)                  Change in net position 492,701         21,294             11,758        525,753          Net position ‐ Beginning of year 246,509         81,680             888,809      1,216,998      Net position ‐ End of year 739,210$      102,974$        900,567$    1,742,751$    CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION for the year ended June 30, 2016 132 Fleet/Property Central Services Management Insurance Fund Fund Fund Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 7,066,786$          1,790,024$        ‐$                   8,856,810$   Payments to suppliers (2,904,013)           (1,027,988)         (7,390)           (3,939,391)    Payments to employees (4,393,148)           (627,749)            ‐                     (5,020,897)    Other receipts 13,688                  2,230                  14,241          30,159              Net cash provided (used) by operating activities (216,687)              136,517              6,851            (73,319)          CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 572,438                19,647                ‐                     592,085         Transfers to other funds ‐                           ‐                         (983)              (983)               Net cash flows from noncapital financing activities 572,438              19,647              (983)              591,102          Net increase in cash and investments 355,751                156,164              5,868            517,783         CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings 29,919                  1,200                  3,072            34,191           Cash and investments‐‐beginning of the year 1,030,602            227,122              888,809        2,146,533     Cash and investments‐‐end of the year 1,416,272$          384,486$           897,749$     2,698,507$   RECONCILIATION OF OPERATING INCOME (LOSS) TO    NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss)(109,656)$            447$                   9,669$          (99,540)$       Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities CHANGE IN ASSETS AND LIABILITIES Receivables 7,014                    ‐                           (2,860)           4,154             Prepaids 49,362                  7,000                  ‐                     56,362           Inventory ‐                             12,010                ‐                     12,010           Accounts Payable (202,591)              124,042              42                  (78,507)          Unearned revenue (737)                      ‐                           ‐                     (737)               Accrued compensated absences 19,286                  (10,104)               ‐                     9,182             Net OPEB Obligation 20,635                  3,122                  ‐                     23,757              Net cash provided (used) by operating activities (216,687)$            136,517$           6,851$          (73,319)$       CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS for the year ended June 30, 2016 COMBINING STATEMENT OF CASH FLOWS 133 Variance Actual with final Original Final Amounts budget REVENUES Charges for services 7,020,353$          7,020,353$          7,059,772$          39,419$                 Interest earnings 22,593                  22,593                  29,919                  7,326                     Miscellaneous revenues 19,900                  19,900                  14,425                  (5,475)                       Total revenues 7,062,846             7,062,846             7,104,116             41,270                   EXPENDITURES Policy and administration 7,591,137             8,109,297             7,163,218             946,079                    Change in fund balance before       other financing sources (uses)(528,291)               (1,046,451)           (59,102)                 987,349                 OTHER FINANCING SOURCES (USES) Transfers in 698,824                875,824                572,438                (303,386)                Contingency (150,000)               (57,000)                 ‐                             57,000                   Reserve for future expenditures (202,905)               (159,745)               ‐                             159,745                    Total other financing sources (uses)345,919                659,079                572,438                (86,641)                        Change in fund balance (182,372)               (387,372)               513,336                900,708                 Fund balance ‐ Beginning of the year 182,372                387,372                505,053                117,681                 Fund balance ‐ End of the year ‐$                           ‐$                           1,018,389             1,018,389$           Reconciliation of budgetary fund balance      to GAAP basis net position: Net OPEB obligation (279,179)                  Total net position, GAAP basis 739,210$               CITY OF TIGARD, OREGON CENTRAL SERVICES FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 134 Variance Actual with final Original Final Amounts budget REVENUES Charges for services 1,783,024$          1,783,024$          1,783,024$          ‐$                            Interest earnings ‐                             ‐                             1,200                    1,200                     Miscellaneous revenues 29,686                  29,686                  2,230                    (27,456)                     Total revenues 1,812,710             1,812,710             1,786,454             (26,256)                  EXPENDITURES Public works 1,852,362             1,896,042             1,781,685             114,357                    Change in fund balance before       other financing sources (uses)(39,652)                 (83,332)                 4,769                    88,101                   OTHER FINANCING SOURCES (USES) Transfers in 19,647                  19,647                  19,647                  ‐                              Contingency (75,000)                 (31,320)                 ‐                             31,320                   Reserve for future expenditures (18,133)                 (18,133)                 ‐                             18,133                      Total other financing sources (uses)(73,486)                 (29,806)                 19,647                  49,453                         Change in fund balance (113,138)               (113,138)               24,416                  137,554                 Fund balance ‐ Beginning of the year 113,138                113,138                102,486                (10,652)                  Fund balance ‐ End of the year ‐$                           ‐$                           126,902                126,902$               Reconciliation of budgetary fund balance      to GAAP basis net position: Net OPEB obligation (23,928)                    Total net position, GAAP basis 102,974$               CITY OF TIGARD, OREGON FLEET/PROPERTY MANAGEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 135 Variance Actual with final Original Final Amounts budget REVENUES Interest earnings 7,810$                  7,810$                  3,072$                  (4,738)$                  Miscellaneous revenues 34,140                  34,140                  17,101                  (17,039)                      Total revenues 41,950                  41,950                  20,173                  (21,777)                  EXPENDITURES Policy and administration 50,000                  50,000                  7,432                    42,568                      Change in fund balance       before other financing sources (uses)(8,050)                   (8,050)                   12,741                  20,791                   OTHER FINANCING SOURCES (USES) Transfers out (983)                       (983)                       (983)                       ‐                              Contingency (25,000)                 (25,000)                 ‐                             25,000                   Reserve for future expenditures (798,151)               (798,151)               ‐                             798,151                    Total other financing sources (uses)(824,134)               (824,134)               (983)                       823,151                       Change in fund balance (832,184)               (832,184)               11,758                  843,942                 Fund balance ‐ Beginning of the year 832,184                832,184                888,809                56,625                   Fund balance ‐ End of the year ‐$                           ‐$                           900,567$              900,567$               CITY OF TIGARD, OREGON INSURANCE FUND SCHEDULE OF REVENUES AND EXPENDITURES ‐ BUDGET AND ACTUAL for the year ended June 30, 2016   Budgeted Amounts 136 Other Schedules Bancroft Bonds    Issued June 27, 2002 1,307,969$    373,711$           ‐$                77,392$        (77,392)$        296,319$           26,112$        (26,112)$         General Obligation Bonds    Issued February 3, 2011 8,655,000$    6,210,000$        ‐$                685,000$     (685,000)$      5,525,000$        216,925$     (216,925)$          Issued June 21, 2010 7,250,000      3,895,000          ‐                  735,000        (735,000)        3,160,000          169,432        (169,432)            Issued February 3, 2011 17,000,000    14,670,000        ‐                  685,000        (685,000)        13,985,000        607,575        (607,575)         24,775,000$      ‐$                2,105,000$  (2,105,000)$  22,670,000$      993,932$     (993,932)$       Bank Loan     Issued September 1, 2014 1,300,000$    1,300,000$        ‐$                130,000$     (130,000)$      1,170,000$        36,778$        (36,778)$         Revenue Bonds    Issued May 1, 2012 97,720,000$  97,720,000$      ‐$                ‐$                  ‐$                    97,720,000$      4,719,850$  (4,719,850)$      Issued May 1, 2015 30,810,000    30,810,000        ‐                  ‐                    ‐                      30,810,000        1,378,238    (1,378,238)     128,530,000$   ‐$                ‐$                  ‐$                    128,530,000$   6,098,088$  (6,098,088)$   Long‐term Note    Issued December 1, 2011 2,398,000$    2,105,957$        ‐$                98,005$        (98,005)$        2,007,952$        63,179$        (63,179)$         Outstanding June 30, 2016 Matured Paid CITY OF TIGARD, OREGON SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS For the fiscal year ended June 30, 2016 Outstanding June 30, 2015 Additions Matured/  Called Paid Interest Transactions Original Issue 137 Fiscal Year Total Total of Maturity Principal Interest Principal Interest 2017 83,100$                    20,000$                    83,100$                    20,000$                     2018 89,200                      13,866                      89,200                      13,866                       2019 95,800                      7,279                         95,800                      7,279                          2020 28,219                      1,021                         28,219                      1,021                          296,319$                  42,166$                    296,319$                  42,166$                     7.25% CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF LOCAL IMPROVEMENT DISTRICT BONDS For the fiscal year ended June 30, 2016 Issued June 27, 2002Total Debt Service Requirement 138 Fiscal Year Total Total of Maturity Principal Interest Principal Interest Principal Interest Principal Interest 2017 2,165,000$    920,560$      705,000$      196,075$     755,000$      137,460$  705,000$        587,025$      2018 2,235,000       845,043        730,000        174,550       780,000        104,618    725,000           565,875        2019 2,305,000       763,313        755,000        148,500       800,000        70,688      750,000           544,125        2020 2,390,000       667,713        785,000        117,700       825,000        35,888      780,000           514,125        2021 1,625,000       568,625        815,000        85,700          ‐                     ‐                 810,000           482,925        2022 1,695,000       502,925        850,000        52,400          ‐                     ‐                 845,000           450,525        2023 1,760,000       434,425        885,000        17,700          ‐                     ‐                 875,000           416,725        2024 910,000          381,725        ‐                     ‐                     ‐                     ‐                 910,000           381,725        2025 950,000          345,325        ‐                     ‐                     ‐                     ‐                 950,000           345,325        2026 990,000          304,950        ‐                     ‐                     ‐                     ‐                 990,000           304,950        2027 1,030,000       262,875        ‐                     ‐                     ‐                     ‐                 1,030,000       262,875        2028 1,075,000       216,525        ‐                     ‐                     ‐                     ‐                 1,075,000       216,525        2029 1,125,000       168,150        ‐                     ‐                     ‐                     ‐                 1,125,000       168,150        2030 1,180,000       114,713        ‐                     ‐                     ‐                     ‐                 1,180,000       114,713        2031 1,235,000       58,663          ‐                     ‐                     ‐                     ‐                 1,235,000       58,663           22,670,000$  6,555,530$  5,525,000$  792,625$     3,160,000$  348,654$  13,985,000$   5,414,251$   CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF GENERAL OBLIGATION BONDS For the fiscal year ended June 30, 2016 3.00% to 4.75% Series 2011ASeries 2011B 3.00% to 4.00% Transportation Bonds 4.35% Issued: February 3, 2011 Issued: June 21, 2010 Issued: February 3, 2011Service Requirement Total Debt 139 Fiscal Year Total Total of Maturity Principal Interest Principal Interest 2017 130,000$                  32,842$                    130,000$                  32,842$                     2018 130,000                    28,980                      130,000                    28,980                       2019 130,000                    25,118                      130,000                    25,118                       2020 780,000                    11,681                      780,000                    11,681                       1,170,000$              98,621$                    1,170,000$              98,621$                     3.00% CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF BANK LOAN PAYABLE For the fiscal year ended June 30, 2016 Total Debt Service Requirement Issued: September 1, 2014 140 Fiscal Year Total Total of Maturity Principal Interest Principal Interest Principal Interest 2017 2,030,000$       6,202,100$       1,870,000$    4,691,800$    160,000$       1,510,300$     2018 2,100,000         6,129,650         1,935,000      4,625,050      165,000          1,504,600       2019 2,185,000         6,043,950         2,015,000      4,546,050      170,000          1,497,900       2020 2,275,000         5,954,750         2,100,000      4,463,750      175,000          1,491,000       2021 2,370,000         5,861,850         2,185,000      4,378,050      185,000          1,483,800       2022 2,465,000         5,765,150         2,275,000      4,288,850      190,000          1,476,300       2023 2,565,000         5,664,550         2,365,000      4,196,050      200,000          1,468,500       2024 2,685,000         5,547,175         2,475,000      4,086,875      210,000          1,460,300       2025 2,820,000         5,411,675         2,605,000      3,959,875      215,000          1,451,800       2026 2,960,000         5,269,375         2,735,000      3,826,375      225,000          1,443,000       2027 3,110,000         5,119,925         2,875,000      3,686,125      235,000          1,433,800       2028 3,270,000         4,961,600         3,025,000      3,538,625      245,000          1,422,975       2029 3,435,000         4,793,975         3,180,000      3,383,500      255,000          1,410,475       2030 3,610,000         4,617,850         3,340,000      3,220,500      270,000          1,397,350       2031 3,795,000         4,435,175         3,515,000      3,049,125      280,000          1,386,050       2032 3,985,000         4,243,125         3,695,000      2,868,875      290,000          1,374,250       2033 4,190,000         4,038,750         3,885,000      2,679,375      305,000          1,359,375       2034 4,405,000         3,823,875         4,080,000      2,480,250      325,000          1,343,625       2035 4,630,000         3,598,000         4,290,000      2,271,000      340,000          1,327,000       2036 4,870,000         3,360,500         4,510,000      2,051,000      360,000          1,309,500       2037 5,120,000         3,110,750         4,745,000      1,819,625      375,000          1,291,125       2038 5,380,000         2,848,250         4,985,000      1,576,375      395,000          1,271,875       2039 5,660,000         2,572,250         5,240,000      1,320,750      420,000          1,251,500       2040 5,950,000         2,282,000         5,510,000      1,052,000      440,000          1,230,000       2041 6,250,000         1,977,000         5,795,000      769,375          455,000          1,207,625       2042 6,575,000         1,656,375         6,090,000      472,250          485,000          1,184,125       2043 6,910,000         1,319,250         6,400,000      160,000          510,000          1,159,250       2044 7,265,000         964,875             ‐                       ‐                       7,265,000      964,875           2044 7,635,000         592,375             ‐                       ‐                       7,635,000      592,375           2046 8,030,000         200,750             ‐                       ‐                       8,030,000      200,750           128,530,000$  118,366,875$  97,720,000$  79,461,475$  30,810,000$  38,905,400$   CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF WATER REVENUE BONDS For the fiscal year ended June 30, 2016 Issued: May 3, 2015Issued: May 1, 2012Total Debt Service Requirement 3.00% to 5.00%3.00% to 5.00% 141 Fiscal Year Total Total of Maturity Principal Interest Principal Interest 2017 100,945$                  60,239$                    100,945$                  60,239$                     2018 103,973                    57,210                      103,973                    57,210                       2019 107,092                    54,091                      107,092                    54,091                       2020 110,305                    50,878                      110,305                    50,878                       2021 113,614                    47,569                      113,614                    47,569                       2022 117,022                    44,161                      117,022                    44,161                       2023 120,533                    40,650                      120,533                    40,650                       2024 124,149                    37,034                      124,149                    37,034                       2025 127,874                    33,310                      127,874                    33,310                       2026 131,710                    29,473                      131,710                    29,473                       2027 135,661                    25,522                      135,661                    25,522                       2028 139,731                    21,452                      139,731                    21,452                       2029 143,923                    17,260                      143,923                    17,260                       2030 148,241                    12,943                      148,241                    12,943                       2031 152,688                    8,495                         152,688                    8,495                          2032 130,491                    3,915                         130,491                    3,915                          2,007,952$              544,202$                  2,007,952$              544,202$                   3.00% to 5.00% CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF SAFE DRINKING WATER REVOLVING LOAN FUNDS For the fiscal year ended June 30, 2016 Issued: December 1, 2011Total Debt Service Requirement 142 Statistical Section This part of the City of Tigard’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, required supplementary information and other supplementary information says about the city’s overall financial health. Contents Page Financial Trends – These schedules contain trend information to help the reader understand how financial performance has changed over time. 143-159 Revenue Capacity – These schedules contain information to help the reader assess the city’s most significant local revenue source, property taxes. 158-164 Debt Capacity – These schedules contain information to help the reader assess the affordability of the city’s current levels of outstanding debt and the city’s ability to issue additional debt in the future. 165-173 Demographic and Economic Information – These schedules offer demographic and economic indicators to help the reader understand the environment within the city’s financial activities take place. 174-176 Operating Information – These schedules contain service and infrastructure data to help the reader understand how the information in the city’s financial report relates to the services the city provides and the activities it performs. 177-181 This page intentionally left blank. Fiscal Year Fiscal Year Fiscal Year 2007 2008 2009 GOVERNMENTAL ACTIVITIES Net investment in capital assets 173,401,138$        177,656,465$        179,584,222$    Restricted 1,490,484               1,992,734               1,540,638           Unrestricted 25,234,231            23,053,474            18,091,356         Total governmental activities net position 200,125,853          202,702,673          199,216,216      BUSINESS‐TYPE ACTIVITIES Net investment in capital assets 64,000,824            68,398,209            68,738,562         Restricted 3,783,324               3,783,324               3,783,324           Unrestricted 18,463,817            15,826,866            16,184,644         Total business‐type activities net position 86,247,965            88,008,399            88,706,530         PRIMARY GOVERNMENT Net investment in capital assets 237,401,962          246,054,674          248,322,784      Restricted 5,273,808               5,776,058               5,323,962           Unrestricted 43,698,048            38,880,340            34,275,999         Total primary government net position 286,373,818$        290,711,072$        287,922,745$    Source:  Comprehensive Annual Financial Report of the City. CITY OF TIGARD, OREGON NET POSITION BY COMPONENT for the last ten fiscal years (accrual basis of accounting) 143 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2010 2011 2012 2013 2014 (Restated) 2015 2016 165,775,262$   181,343,650$   179,626,050$   181,196,030$   185,242,899$   189,748,234$   195,142,143$    6,872,512          5,880,755          13,180,057        12,041,725        10,941,117        12,376,136        20,392,998         24,927,888        11,880,945        8,431,166          14,311,478        13,596,004        13,031,415        11,024,212         197,575,662     199,105,350     201,237,273     207,549,233     209,780,020     215,155,785     226,559,353      70,942,446        78,920,831        65,218,645        74,044,470        79,627,259        84,867,665        95,247,967         ‐                           6,005,540          13,184,382        9,683,852          10,551,442        11,250,300        12,279,628         17,371,241        8,675,865          19,429,375        18,523,616        16,721,508        21,256,129        21,847,155         88,313,687        93,602,236        97,832,402        102,251,938     106,900,209     117,374,094     129,374,750      236,717,708     260,264,481     244,844,695     255,240,500     264,870,158     274,615,899     290,390,110      6,872,512          11,886,295        26,364,439        21,725,577        21,492,559        23,626,436        32,672,626         42,299,129        20,556,810        27,860,541        32,835,094        30,317,512        34,287,544        32,871,367         285,889,349$   292,707,586$   299,069,675$   309,801,171$   316,680,229$   332,529,879$   355,934,103$    144 Fiscal Year Fiscal Year Fiscal Year 2007 2008 2009 EXPENSES Governmental activities Community services 11,656,248$          13,678,913$          18,365,997$      Public works 2,383,009 2,373,710 2,468,981 Community development 4,714,636 5,186,834 7,238,839 Policy and administration 4,398,213 3,992,478 5,997,644 Interest on long‐term debt 153,319 354,664 526,825    Total governmental activities expenses 23,305,425            25,586,599            34,598,286         Business‐type activities Sewer 1,461,458               1,963,223               1,597,413           Stormwater 1,533,391               1,585,105               1,920,640           Water 7,452,480               6,792,833               7,624,478              Total business‐type activities program expenses 10,447,329            10,341,161            11,142,531               Total primary government expenses 33,752,754$          35,927,760$          45,740,817$      PROGRAM REVENUES Governmental activities  Charges for services: Community services 151,448$                168,232$                180,425$            Public works 1,866,123               1,377,855               952,652              Community development 3,982,018               2,331,834               1,249,995           Policy and administration 1,146,301               1,524,653               1,463,736           Operating grants and contributions 1,537,714               739,171                  153,447              Capital grants and contributions 2,596,223               3,103,521               199,112                 Total governmental activities program revenues 11,279,827            9,245,266               4,199,367           Business‐type activities Charges for services: Sewer 1,641,740               2,322,462               1,348,750           Stormwater 1,190,521               1,593,097               1,484,627           Water 6,336,186               7,002,872               7,417,827           Capital grants and contributions 3,886,120               136,331                  834,660                 Total business‐type activities program revenues 13,054,567            11,054,762            11,085,864               Total primary government program revenues 24,334,394$          20,300,028$          15,285,231$      Source:  Comprehensive Annual Financial Report of the City. CITY OF TIGARD, OREGON CHANGES IN NET POSITION for the last ten fiscal years (accrual basis of accounting) 145 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2010 2011 2012 2013 2014 (Restated) 2015 2016 19,832,642$     19,987,961$     20,025,191$     19,085,777$     23,078,512$     18,542,379$     25,089,790$      8,563,893 10,911,875 12,489,448 8,585,063 8,399,436 10,408,399 10,865,800 4,846,494 4,159,289 4,709,751 3,988,011 4,267,328 4,688,686 7,030,142 1,511,956 1,825,398 2,117,198 1,339,254 1,732,016 1,323,435 1,226,166 548,987 1,214,420 1,125,259 1,226,774 1,147,024 1,185,507 958,204 35,303,972        38,098,943        40,466,847        34,224,879        38,624,316        36,148,406        45,170,102         1,379,105          1,386,597          1,743,929          2,114,054          2,617,625          2,518,708          2,536,988           2,061,622          1,667,699          1,649,715          2,045,399          1,958,551          2,077,589          2,123,162           7,880,598          6,996,463          7,807,706          11,989,337        11,730,347        10,839,483        14,720,167         11,321,325        10,050,759        11,201,350        16,148,790        16,306,523        15,435,780        19,380,317         46,625,297$     48,149,702$     51,668,197$     50,373,669$     54,930,839$     51,584,186$     64,550,419$      232,384$           1,008,691$        1,191,417$        2,252,945$        1,872,350$        1,731,639$        1,879,576$         1,751,341          2,096,677          1,915,631          2,120,366          2,519,515          2,239,431          2,860,543           1,490,701          1,747,617          1,684,287          2,579,329          1,765,005          3,040,501          4,684,733           108,940             84,065                105,755             65,233                142,277             119,195              199,506             6,516,004          6,952,717          6,924,053          6,318,382          6,508,556          7,756,718           305,398             230,500             1,049,774          2,173,900          1,804,398          2,021,422          11,785,524         4,088,270          11,599,489        12,877,891        16,156,348        14,344,883        15,683,826        29,086,289         1,117,987          1,021,840          1,025,732          1,203,187          1,727,206          1,773,388          1,791,302           1,872,545          2,178,298          2,402,189          2,629,694          2,733,346          2,899,180          3,058,382           7,834,978          9,065,554          11,895,044        14,907,664        15,985,607        18,804,645        20,918,497         1,022,045          4,583,764          2,871,726          1,675,987          1,111,346          2,066,696          5,806,590           11,847,555        16,849,456        18,194,691        20,416,532        21,557,505        25,543,909        31,574,771         15,935,825$     28,448,945$     31,072,582$     36,572,880$     35,902,388$     41,227,735$     60,661,060$      146 Fiscal Year Fiscal Year Fiscal Year 2007 2008 2009 NET (EXPENSE) REVENUE Governmental activities (12,025,598)$         (16,341,333)$     (30,398,918)$     Business‐type activities 2,607,238               713,601              (56,667)               Total primary government net expenses (9,418,360)             (15,627,731)       (30,455,585)       GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities: Property taxes 11,552,817            9,133,664          12,526,541         Franchise fees 3,835,007               4,551,169          3,887,078           Unrestricted intergovernmental revenues 1,836,291               2,912,647          8,925,520           Interest earnings 1,548,735               1,503,619          947,247              Miscellaneous 302,269                  817,054              626,075              Transfers between Governmental and Business‐type ‐                               ‐                           ‐                               Total governmental activities 19,075,119            18,918,153        26,912,461         Business‐type activities: Interest earnings 1,050,352               1,039,593          649,231              Miscellaneous 147,310                  150,015              105,567              Unrestricted intergovernmental revenues ‐                               ‐                           ‐                            Transfers between Governmental and Business‐type ‐                               ‐                           ‐                               Total business‐type activities 1,197,662               1,189,608          754,798                    Total primary government 20,272,781            20,107,761        27,667,259         CHANGES IN NET POSITION Governmental activities (restated)7,049,521               2,576,820          (3,486,457)          Business‐type activities 3,804,900               1,903,209          698,131                 Total primary government 10,854,421$          4,480,029$        (2,788,325)$       Source:  Comprehensive Annual Financial Report of the City. CITY OF TIGARD, OREGON CHANGES IN NET POSITION (CONTINUED) for the last ten fiscal years (accrual basis of accounting) 147 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2010 2011 2012 2013 2014 (Restated) 2015 2016 (31,215,702)$    (26,499,454)$    (27,588,956)$    (18,068,531)$    (24,279,433)$    (20,464,580)$    (16,083,813)$     526,230             6,798,697          6,993,341          4,267,742          5,250,982          10,108,129        12,194,454         (30,689,471)      (19,700,757)      (20,595,615)      (13,800,789)      (19,028,451)      (10,356,451)      (3,889,359)          16,070,846        13,604,285        15,182,467        15,338,744        15,796,663        16,523,361        17,177,591         4,548,520          4,375,420          4,880,635          5,855,956          5,542,647          5,687,456          5,734,540           6,993,245          2,838,802          4,798,949          2,500,240          2,955,652          3,004,341          2,840,903           308,853             296,964             283,273             248,812             421,211             434,401             688,087              376,884             5,284,426          1,583,989          316,512             776,154             247,154             228,779              1,276,800          1,629,245          2,991,566          120,227             1,017,893          (56,368)              817,481              29,575,148        28,029,142        29,720,879        24,380,491        26,510,220        25,840,345        27,487,381         153,300             115,828             73,228                114,661             270,415             131,485             302,890              204,427             3,269                  155,164             157,360             144,767             177,903             193,645              ‐                           ‐                           ‐                           ‐                           ‐                           ‐                           127,148              (1,276,800)         (1,629,245)         (2,991,566)         (120,227)            (1,017,893)         56,368                (817,481)             (919,073)            (1,510,148)         (2,763,174)         151,794             (602,711)            365,756             (193,798)             28,656,075        26,518,994        26,957,705        24,532,285        25,907,509        26,206,101        27,293,583         (1,640,554)         1,529,688          2,131,923          6,311,960          2,230,787          5,375,765          11,403,568         (392,843)            5,288,549          4,230,167          4,419,536          4,648,271          10,473,885        12,000,656         (2,033,396)$      6,818,237$        6,362,090$        10,731,496$     6,879,058$        15,849,650$     23,404,224$      148 Fiscal Year Fiscal Year Fiscal Year 2007 2008 2009 GENERAL FUND Reserved 209,378$                ‐$                             419,488$            Unreserved 9,716,643               10,794,057            7,338,828           Nonspendable ‐                               ‐                               ‐                            Unassigned ‐                               ‐                               ‐                            Total General Fund 9,926,021$            10,794,057$          7,758,316$         ALL OTHER GOVERNMENTAL FUNDS Reserved ‐$                             ‐$                             ‐$                         Unreserved, reported in: Special revenue funds 13,445,092            12,481,406            11,097,739         Debt service funds 2,027,633               682,960                  167,169              Capital projects funds 1,087,826               1,309,774               1,373,469           Nonspendable ‐                               ‐                               ‐                            Restricted ‐                               ‐                               ‐                            Committed ‐                               ‐                               ‐                            Assigned ‐                               ‐                               ‐                            Unassigned ‐                               ‐                               ‐                            Total all other governmental funds 16,560,551$          14,474,140$          12,638,377$      * This schedule was modified with the implementation of GASB 54, effective fiscal year 2011, which affected the  categories used to report fund balances. Source:  Comprehensive Annual Financial Report of the City. CITY OF TIGARD, OREGON FUND BALANCES OF GOVERNMENTAL FUNDS for the last ten fiscal years (modified accrual basis of accounting) 149 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2010 2011 2012 2013 2014 2015 2016 273,726$           ‐$                        ‐$                        ‐$                        ‐$                        ‐$                        ‐$                         7,067,526          ‐                           ‐                           ‐                           ‐                           ‐                           ‐                            ‐                           305,164             471,975             472,941             508,374             542,543             664,254              ‐                           7,247,383          7,378,411          9,687,736          11,474,700        12,115,436        12,970,670         7,341,252$        7,552,547$        7,850,386$        10,160,677$     11,983,074$     12,657,979$     13,634,924$      ‐$                        ‐$                        ‐$                        ‐$                        ‐$                        ‐$                        ‐$                         8,094,802          ‐                           ‐                           ‐                           ‐                           ‐                           ‐                            1,927,247          ‐                           ‐                           ‐                           ‐                           ‐                           ‐                            4,945,265          ‐                           ‐                           ‐                           ‐                           ‐                           ‐                            ‐                           ‐                           ‐                           14,986                16,055                11,225                ‐                            ‐                           16,855,664        15,568,787        14,859,784        12,504,001        11,791,605        18,250,934         ‐                           2,263,088          3,217,309          4,020,435          4,457,233          2,801,857          3,260,236           ‐                           417,479             428,823             670,223             905,166             1,156,788          1,597,773           ‐                           (382,937)            (498,110)            (601,324)            (752,925)            (352,684)            (617,329)             14,967,314$     19,153,294$     18,716,809$     18,964,104$     17,129,530$     15,408,791$     22,491,614$      150 Fiscal Year Fiscal Year Fiscal Year 2007 2008 2009 REVENUES Taxes 11,553,044$          12,137,977$          12,405,880$      City gas tax *‐                           ‐                           ‐                       Franchise fees 3,835,007               4,551,169               3,887,078           Special assessments 163,379                  120,678                  87,208                 Licenses and permits 3,011,348               1,871,841               1,282,438           Intergovernmental revenues 5,970,228               7,807,667               7,560,542           Charges for service 3,989,491               3,469,358               2,536,590           Fines and forfeitures 850,335                  847,069                  804,128              Interest earnings 1,507,065               1,475,808               930,382              Miscellaneous 283,712                  747,532                  513,392              Total revenues 31,163,609            33,029,099            30,007,640         EXPENDITURES Current operating: Community services 11,918,362            13,801,110            18,214,907         Public works 2,383,009               2,757,289               3,463,390           Community development 4,772,780               5,191,797               7,184,355           Policy and administration 4,717,967               397,510                  907,661              Debt service: Principal 166,571                  922,907                  794,853              Interest 630,916                  454,403                  530,403              Refunded bonds ‐                           ‐                           ‐                       Refunding bond issuance cost ‐                           ‐                           ‐                       Capital outlay 3,543,422               6,319,092               3,940,781           Total expenditures 28,156,027            29,844,108            35,833,344                Excess (deficiency) of revenues            over (under) expenditures 3,007,582               3,184,991               (5,825,705)          OTHER FINANCING SOURCES (USES) Proceeds from bond / long‐term note ‐                           ‐                           ‐                       Operating transfers in 2,667,149               4,896,127               3,342,328           Operating transfers out (2,667,149)             (9,299,491)             (2,357,267)          Resources provided by other funds ‐                               ‐                               ‐                            Total other financing sources (uses)‐                               (4,403,364)             985,061                   Net change in fund balances 3,007,582$            (1,218,373)$           (4,840,644)$       Debt services as a percentage of non‐capital 3.35%6.22%4.34% Source:  Comprehensive Annual Financial Report of the City. CITY OF TIGARD, OREGON CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS for the last ten fiscal years (modified accrual basis of accounting) * City gas tax was broken out of intergovernmental revenues beginning in fiscal year 2013.   expenditures 151 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2010 2011 2012 2013 2014 2015 2016 16,078,788$     16,753,457$     17,767,128$     18,208,253$     18,822,449$     19,575,665$     20,191,927$      ‐ ‐ ‐ 830,031             638,852             558,740             712,408              4,548,520          4,375,420          4,880,635          5,724,192          5,542,647          5,691,960          5,732,448           284,202             40,164                38,776                43,170                258,831             35,359                65,243                 1,229,880          2,590,516          2,444,551          3,175,118          3,098,875          4,030,120          5,751,472           6,358,393          9,834,646          6,586,757          6,040,986          6,386,961          6,370,732          6,684,667           3,083,087          3,127,307          3,059,653          6,632,779          5,937,889          5,303,984          10,974,400         915,524             907,216             1,092,296          1,038,948          929,293             924,266             972,560              300,126             287,284             262,080             254,237             424,221             434,401             653,879              249,180             47,489                633,575             206,443             312,815             413,736             220,894              33,047,700        37,963,499        36,765,451        42,154,157        42,352,833        43,338,963        51,959,898         19,418,498        19,182,018        19,638,469        18,636,382        19,420,335        20,325,635        20,784,186         5,129,767          6,059,692          6,354,390          6,551,980          6,914,185          7,512,446          7,606,128           4,674,008          3,975,257          3,902,223          3,937,089          4,219,481          4,640,737          6,981,903           787,209             711,743             819,034             711,385             701,172             778,840             831,876              875,513             2,590,456          1,894,125          1,992,500          2,445,993          2,117,045          2,361,892           557,061             67,294                1,652,691          1,264,795          1,178,637          1,118,238          1,059,733           ‐ 8,836,046          ‐ ‐ ‐ ‐ ‐  ‐ 81,236                ‐ ‐ ‐ ‐ ‐  7,373,043          19,247,942        4,037,766          6,357,256          7,657,993          8,924,317          6,200,291           38,815,099        60,751,684        38,298,698        39,451,387        42,537,796        45,417,258        45,826,009         (5,767,399)         (22,788,185)      (1,533,247)         2,702,770          (184,963)            (2,078,295)         6,133,889           7,250,000          26,214,495        ‐ ‐ ‐ 1,300,000          1,650,000           4,965,010          16,977,142        6,969,663          4,735,619          6,420,053          6,178,215          6,328,818           (3,688,210)         (16,006,177)      (5,575,062)         (4,880,803)         (6,247,267)         (6,445,754)         (6,102,439)          ‐ ‐ ‐ ‐ ‐ ‐ 49,500                 8,526,800          27,185,460        1,394,601          (145,184)            172,786             1,032,461          1,925,879           2,759,401$        4,397,275$        (138,646)$          2,557,586$        (12,177)$            (1,045,834)$      8,059,768$         4.71%8.88% 11.55% 10.84% 10.44%8.77%8.55% 152 Fiscal Year Ended June 30 Charges for Services Operating Grants and Contributions Capital Grants and Contributions Taxes Franchise Fees 2007 7,145,890$             1,537,714$             2,596,223$             11,552,817$           3,835,007$              2008 5,402,574               739,171                   3,103,521               12,237,185             4,551,169                2009 3,846,808               153,447                   199,112                   12,526,541             3,887,078                2010 3,583,366               199,506                   305,398                   16,070,846             4,548,520                2011 4,852,985               6,516,004               230,500                   13,604,285             4,375,420                2012 4,875,400               6,952,717               1,049,774               15,182,467             4,880,635                2013 7,058,395               6,924,053               2,173,900               15,338,744             5,855,956                2014 6,222,103               6,318,382               1,804,398               15,796,663             5,542,647                2015 7,153,848               6,508,556               2,021,422               16,523,361             5,687,456                2016 9,544,047               7,756,718               11,785,524             17,177,591             5,734,540                Fiscal Year Ended June 30 Charges for Services Operating Grants and Contributions Capital Grants and Contributions Taxes Franchise Fees 2007 9,168,447$             ‐$                              3,886,120$             ‐$                              ‐$                               2008 10,918,431             ‐                                136,331                   ‐                                ‐                                 2009 10,251,204             ‐                                834,660                   ‐                                ‐                                 2010 10,825,510             ‐                                1,022,045               ‐                                ‐                                 2011 12,265,692             ‐                                4,583,764               ‐                                ‐                                 2012 15,322,964             ‐                                2,871,726               ‐                                ‐                                 2013 18,740,545             ‐                                1,675,987               ‐                                ‐                                 2014 20,446,159             ‐                                1,111,346               ‐                                ‐                                 2015 23,477,213             ‐                                2,066,696               ‐                                ‐                                 2016 25,768,181             ‐                                5,806,590               ‐                                ‐                                 Source:  Comprehensive Annual Financial Report of the City ‐ Statement of Activities. Program Revenues CITY OF TIGARD, OREGON GOVERNMENTAL REVENUES For the last ten fiscal years CITY OF TIGARD, OREGON BUSINESS‐TYPE REVENUES For the last ten fiscal years Program Revenues 153 Intergovernmental Revenues Interest Earnings Donated Assets Gain (Loss) on Disposition of Capital Assets Miscellaneous Total 1,836,291$               2,599,087$  ‐$ ‐$ 449,579$                31,552,608$            2,912,647 1,503,619    ‐ ‐ (2,286,467)              28,163,419              8,925,520 947,247        ‐ ‐ 626,075 31,111,828              6,993,245 308,853        ‐ ‐ 376,884 32,386,618              2,838,802 296,964        ‐ ‐ 5,284,426               37,999,386              4,798,949 283,273        ‐ ‐ 1,583,989               39,607,204              2,500,240 248,812        ‐ ‐ 316,508 40,416,608              2,955,652 421,211        ‐ ‐ 776,154 39,837,210              3,004,341 434,401        ‐ (25,998) 273,152 41,580,539              2,840,903 688,087        ‐ ‐ 228,779 55,756,189              Intergovernmental Revenues Interest Earnings Donated Assets Gain (Loss) on Disposition of Capital Assets Miscellaneous Total ‐$ 1,050,352$  ‐$ ‐$ 147,310$                14,252,229$            ‐ 1,039,593    ‐ ‐ 150,015 12,244,370              ‐ 649,231        ‐ ‐ 105,567 11,840,662              ‐ 153,300        ‐ ‐ 204,427 12,205,282              ‐ 115,828        ‐ ‐ 3,269 16,968,553              ‐ 73,228          ‐ ‐ 155,164 18,423,082              ‐ 114,661        ‐ ‐ 157,360 20,688,553              ‐ 270,415        ‐ ‐ 144,767 21,972,687              ‐ 131,485        ‐ ‐ 177,903 25,853,297              127,148 302,890        ‐ ‐ 193,645 32,198,454              General Revenues General Revenues 154 Fiscal Year Ended Community Community Policy and June 30 Services Public Works Development Administration 2007 11,656,248$                  2,383,009$                     4,714,636$                     4,398,213$                      2008 13,678,913                     2,373,710                       2,373,710                       3,992,478                        2009 18,365,997                     2,468,981                       7,238,839                       5,997,644                        2010 19,832,642                     8,563,893                       4,846,494                       1,511,956                        2011 19,987,961                     10,911,875                     4,159,289                       1,825,398                        2012 20,025,189                     12,489,448                     4,709,750                       2,117,198                        2013 19,085,777                     8,585,063                       3,988,011                       1,339,254                        2014 (Restated)23,078,512                     8,399,436                       4,267,328                       1,732,016                        2015 18,542,379                     10,408,399                     4,688,686                       1,323,435                        2016 25,089,790                     10,865,800                     7,030,142                       1,226,166                        Fiscal Year Ended June 30 Sewer Stormwater Water Total 2007 1,461,458$                     1,533,391$                     7,452,480$                     10,447,329$                   2008 1,963,223                       1,585,105                       6,792,833                       10,341,161                      2009 1,597,413                       1,920,640                       7,624,478                       11,142,531                      2010 1,379,105                       2,061,622                       7,880,598                       11,321,325                      2011 1,386,597                       1,667,699                       6,996,463                       10,050,759                      2012 1,743,929                       1,649,718                       7,807,706                       11,201,353                      2013 2,114,054                       2,045,399                       11,989,337                     16,148,790                      2014 2,617,625                       1,958,551                       11,730,347                     16,306,523                      2015 2,518,708                       2,077,589                       10,839,483                     15,435,780                      2016 2,536,988                       2,123,162                       14,720,167                     19,380,317                      Source:  Comprehensive Annual Financial Report of the City. For the last ten fiscal years CITY OF TIGARD, OREGON GOVERNMENTAL EXPENSES BY FUNCTION For the last ten fiscal years CITY OF TIGARD, OREGON BUSINESS‐TYPE EXPENSES BY FUNCTION 155 Interest on Long‐Term   Debt Total 153,319$                        23,305,425$                   526,825                          22,945,636                      526,825                          34,598,286                      548,987                          35,303,972                      1,214,420                       38,098,943                      1,125,259                       40,466,844                      1,226,774                       34,224,879                      1,147,024                       38,624,316                      1,185,507                       36,148,406                      958,204                          45,170,102                      156 Fiscal Licenses Inter‐ Year Ended Franchise and governmental June 30 Taxes Fees Permits Revenues 2007 11,553,044$                  3,835,007$                     3,011,348$                     5,970,228$                      2008 12,137,977                     4,551,169                       1,871,841                       847,069                           2009 12,405,880                     3,887,078                       1,282,438                       7,560,542                        2010 16,078,788                     4,548,520                       1,229,880                       6,358,393                        2011 16,753,457                     4,375,420                       2,590,516                       9,834,646                        2012 17,767,128                     4,880,635                       2,444,551                       6,586,757                        2013 18,208,253                     5,724,192                       3,175,118                       6,871,017                        2014 19,720,132                     5,542,647                       3,098,875                       6,386,961                        2015 19,575,665                     5,691,960                       4,030,120                       6,929,472                        2016 20,904,335                     5,732,448                       5,751,472                       6,684,667                        * Includes special assessments collections, interest earnings, and other revenues. Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types CITY OF TIGARD, OREGON GENERAL GOVERNMENTAL REVENUES BY SOURCES ‐ BUDGETARY BASIS For the last ten fiscal years 157 Charges For Fines and Miscellaneous Services Forfeitures Revenues *Total 3,989,491$                     850,335$                        1,954,156$                     31,163,609$                   1,475,808                       847,069                          2,344,018                       24,074,951                      2,536,590                       804,128                          1,530,983                       30,007,640                      3,083,087                       915,524                          833,508                          33,047,700                      3,127,307                       907,216                          374,937                          37,963,499                      3,059,653                       1,092,296                       934,431                          36,765,451                      6,632,779                       1,038,948                       503,850                          42,154,157                      5,937,889                       929,293                          737,036                          42,352,833                      5,303,984                       924,266                          883,496                          43,338,963                      10,974,400                     972,560                          940,016                          51,959,898                      158 City‐Wide Support Fiscal Public Works Functions, Year Ended Community and Community Policy and Capital Projects Debt June 30 Services Development Administration and Other Service Total 2007 11,918,362$    7,155,789$      4,717,967$      3,566,422$      2,297,487$      29,656,027$     2008 13,801,110      7,949,086        397,510            6,319,092        1,377,310        29,844,108       2009 18,214,907      10,647,745      1,704,656        3,940,781        1,325,256        35,833,344       2010 19,418,498      9,803,775        787,209            7,373,043        1,432,574        38,815,099       2011 19,182,018      10,034,949      711,743            19,247,942      11,575,032      60,751,684       2012 19,638,468      10,256,613      819,034            4,037,766        3,546,816        38,298,697       2013 18,636,382      10,489,069      711,385            6,357,256        3,257,295        39,451,387       2014 19,420,335      11,133,666      701,172            7,657,993        3,624,630        42,537,796       2015 20,325,635      12,153,183      778,840            8,924,317        3,235,283        45,417,258       2016 20,784,186      14,588,031      831,876            6,200,291        3,421,625        45,826,009       Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types CITY OF TIGARD, OREGON GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION ‐ BUDGETARY BASIS For the last ten fiscal years 159 Fiscal Assessed Year Total Estimated Real to Value Ended Personal Public Utility Total Assessed Direct Market Value as a % June 30 Real Property Property Property Value Tax Rate* (RMV) of RMV 2007 3,932,173,130$   229,401,995$  183,090,030$  4,344,665,155$   2.73$     7,152,421,012$   60.74% 2008 4,104,676,710     234,099,260     233,581,850     4,572,357,820     2.75       7,449,594,674     61.38% 2009 4,306,936,640     247,691,980     187,315,080     4,741,943,700     2.70       8,161,684,333     58.10% 2010 4,476,784,320     249,636,920     187,721,070     4,914,142,310     2.78       7,738,192,442     63.51% 2011 4,605,287,760     236,758,507     186,625,460     5,028,671,727     2.79       7,260,251,256     69.26% 2012 4,740,820,190     233,150,042     185,094,100     5,159,064,332     3.86       6,916,823,794     74.59% 2013 4,879,417,110     234,122,196     168,258,100     5,281,797,406     4.28       6,727,550,189     78.51% 2014 5,066,140,190     235,966,170     165,074,260     5,467,180,620     3.44       7,032,753,815     77.74% 2015 5,269,294,630     252,215,379     188,500,300     5,710,010,309     4.24       7,699,660,882     74.16% 2016 5,468,508,420     257,861,916     181,220,400     5,907,590,736     4.69       8,082,751,732     73.09% * per $1,000 of assessed value/including phase in rates Source:  Washington County Assessment and Taxation Assessed Value CITY OF TIGARD, OREGON MARKET VALUE AND ASSESSED VALUE OF TAXABLE PROPERTY For the last ten fiscal years 160 Fiscal Total Metzger Year Ended Perm Debt Urban City of Water District Washington  June 30 Rate Svc Renewal Phase In Tigard Combined County 2007 2.51$             0.22$             ‐$               ‐$               2.73$             ‐$               2.45$              2008 2.51                0.23                0.01                ‐                  2.75                ‐                  2.44                 2009 2.51                0.18                0.01                ‐                  2.70                ‐                  2.39                 2010 2.51                0.21                0.06                ‐                  2.78                ‐                  2.98                 2011 2.51                0.21                0.07                ‐                  2.79                ‐                  2.98                 2012 2.51                0.45                0.06                0.83                3.85                ‐                  2.97                 2013 2.51                0.44                0.06                1.27                4.28                ‐                  2.96                 2014 2.51                0.44                0.06                0.43                3.44                ‐                  2.96                 2015 2.51                0.42                0.07                1.24                4.24                ‐                  2.83                 2016 2.51                0.42                0.07                1.68                4.69                ‐                  2.83                 Direct Rates City of Tigard CITY OF TIGARD, OREGON PROPERTY TAX RATES ‐ DIRECT AND OVERLAPPING GOVERNMENTS (Dollars per $1,000 of Assessed Value rounded to the nearest cent) For the last ten fiscal years Taxes levied may be composed of three types of levies: (1) a base operating levy, (2) a special operating levy approved by the  voters in the district and (3) a debt service levy.  Each district with outstanding General Obligation bonded debt is required to levy taxes sufficient with other available funds, to meet principal and interest payments when due. Assessment and tax rolls are prepared and maintained by Washington County for all taxing districts with territory in the  County. The County collects all taxes against property in the County (except assessments for improvements charged to  benefited property) and distributes taxes collected at least monthly.  No charges are made to the taxing districts for these  services. NOTE: ‐Not all taxing districts are charged on each parcel of property, actual rates on tax bills are a combination of the  above depending upon the location of the parcel and the school district and sewer and water district boundaries. Total  overlapping tax rates for property in Tigard in 2015 ranged from $13.31/$1,000 to $16.60/$1,000. Source:  Washington County Department of Assessment and Taxation. 161 Tigard/Washington Tualatin Beaverton Tualatin County Hillsboro Total Direct School School Valley Rural Fire Portland School Other & District District Fire & Rescue District Community District Taxing Overlapping No. 23‐J No. 48‐J District No. 2 College No. 1‐J Agencies Rates 7.67$             6.29$             1.82$             1.12$             0.49$             ‐$               0.60$             23.17$            7.59                6.74                1.56                1.12                0.28                ‐                  0.61                23.09              7.52                6.56                1.54                1.12                0.50                ‐                  0.70                23.03              7.65                6.88                1.89                1.69                0.63                ‐                  0.75                25.25              7.37                6.78                1.88                1.69                0.64                ‐                  0.81                24.94              7.44                6.86                1.92                1.69                0.60                7.47                1.88                34.68              7.38                6.77                1.91                1.69                0.66                7.50                0.72                33.87              7.41                8.05                1.91                1.69                0.73                7.41                0.78                34.38              7.43                8.04                1.88                ‐                  0.72                ‐                  0.77                25.91              7.43                7.96                2.10                ‐                  0.58                ‐                  0.70                26.28              Overlapping Rates 162 Percentage Percentage Taxable of Total City Taxable of Total City Taxpayer Assessed Value Rank Assessed Value Assessed Value Rank Assessed Value Pacific Realty Associates 213,083,534$  1 4.03% 162,020,499$    1       3.73% PPR Washington Square LLC 142,625,935     2 2.70% 104,186,195      2       2.76% Lincoln Center LLC 88,793,049       3 1.68% 74,446,002         3       1.71% ICON Owner Pool 1 West LLC 41,543,950       4 0.79% Sprint Communications 42,900,000       5 0.81% 40,494,200         5       0.93% Comcast Corporation 36,462,500       6 0.69% Portland General Electric 35,640,000       7 0.67% 27,368,574         7       0.63% ROIC Oregon LLC 31,827,300       8 0.60% Walmart Real Estate Business Trust 22,471,900       9 0.43% Macy's Department Stores 26,145,720       10 0.50% Robinson, Constance (Trust)24,570,740         8       0.57% Verizon Northwest Inc 52,992,508         4       1.22% Northwest Natural Gas 24,180,600         9       0.56% Calwest Industrial Holdings, LLC 33,943,230         6       0.78% Nesbitt Portland Property LLC 22,689,320         10     0.52%    Total 681,493,888$  12.90% 566,891,868$    13.41% Source:  Washington County Assessment & Taxation records. 2016 2007 CITY OF TIGARD, OREGON PRINCIPAL PROPERTY TAXPAYERS For current and nine years ago 163 Fiscal Percent Percent Year Percent Delinquent Total Tax Outstanding Delinquent Ended Total Tax Current Tax of Levy Tax Total Tax Collections Delinquent Taxes To June 30 Levy Collections Collections Collections Collections To Tax Levy Taxes Tax Levy 2007 11,871,043$  11,514,034$  96.99% 210,217$   11,724,251$  98.76% 346,648$    2.92% 2008 12,528,573     11,895,526     94.95% 229,506      12,125,032     96.78% 425,546      3.40%    2009* 12,853,710     12,119,732     94.29% 260,455      12,380,187     96.32% 549,855      4.28% 2010 13,638,935     12,877,595     94.42% 331,616      13,209,211     96.85% 597,164      4.38% 2011 13,995,535     13,249,558     94.67% 385,213      13,634,771     97.42% 567,082      4.05% 2012 15,594,066     14,835,580     95.14% 240,430      15,076,010     96.68% 737,903      4.73% 2013 15,878,914     15,161,562     95.48% 232,090      15,393,652     96.94% 704,610      4.44% 2014 16,326,904     15,532,675     95.14% 318,264      15,850,939     97.08% 740,392      4.53% 2015 16,999,999     16,251,269     95.60% 302,878      16,554,147     97.38% 713,889      4.20% 2016 17,261,106     16,496,169     95.57% 236,347      16,732,516     96.94% 775,731      4.49% Taxes are levied as of July 1 each year and are payable in three installments, without interest, on November 15, February 15  and May 15. Interest is charged at the rate of 1% per month on delinquent taxes.  Tax liens are foreclosed after three year's   delinquencies. Taxpayers receive a discount of 3% for payment in full by November 15 and 2% for payment of two thirds of the total taxes due. *Taxes were levied and collected for the City Center Development Agency, the City of Tigard's Urban Renewal District, beginning in fiscal year 2008‐2009. Source: Washington County Property Tax Schedule. CITY OF TIGARD, OREGON PROPERTY TAX LEVIES AND COLLECTIONS For the last ten fiscal years 164 Fiscal Current Ratio of Total Year Ended Assessments Assessments Collections Assessments Outstanding June 30 Due (1)Collected (2)to Amount Due Added Assessments 2007 937,916$               163,379$               17.42%‐$                        1,461,838$             2008 116,194                 120,678                 103.86%‐                          1,266,871               2009 23,100                    87,208                    377.52%‐                          1,178,745               2010 74,400                    284,202                 381.99%‐                          968,943                  2011 179,200                 40,164                    22.41%‐                          854,377                  2012 38,776                    28,365                    73.15%‐                          826,012                  2013 62,500                    118,888                 190.22% 196,615                 903,739                  2014 457,983                 457,983                 100.00%‐                          445,756                  2015 72,045                    72,045                    100.00%‐                          373,711                  2016 77,392                    77,392                    100.00%‐                          296,319                  (1) This amount is equal to the matured principal on Bancroft improvement bonds. (2) Represents collections of current assessments for payment of Bancroft improvement bonds as well      as assessment collections on projects for which such bonds have not been issued. Source:  City assessment records. CITY OF TIGARD, OREGON SPECIAL ASSESSMENT COLLECTIONS For the last ten fiscal years 165 Percent of Fiscal Total General Debt Service to Year Ended Total Debt Governmental Total General June 30 Principal Interest Service Expenditures Expenditures 2007 1,666,571$            630,916$                2,297,487$            29,656,027$          7.75% 2008 922,907                  454,403                  1,377,310               29,844,108            4.62% 2009 794,853                  530,403                  1,325,256               35,833,344            3.70% 2010 875,513                  557,061                  1,432,574               38,815,099            3.69% 2011 2,590,456               67,294                    2,657,750               60,751,684            4.37% 2012 1,894,126               1,652,691               3,546,817               38,298,698            9.26% 2013 1,992,500               1,264,795               3,257,295               39,451,387            8.26% 2014 2,445,993               1,178,637               3,624,630               42,537,796            8.52% 2015 2,117,045               1,118,238               3,235,283               45,417,258            7.12% 2016 2,361,892               1,059,733               3,421,625               45,829,009            7.47% Source:  Comprehensive Annual Financial Report of the City. CITY OF TIGARD, OREGON RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR LONG‐TERM  DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES For the last ten fiscal years 166 Gross General Less Debt Ratio of Net Fiscal Obligation Service Net Bonded Debt Net Bonded Year Ended Assessed Bonded Debt Monies Bonded to Assessed Debt Per June 30 Population Value Outstanding Available Debt Value Capita 2007 46,400 4,344,665,155$   11,066,369$       1,849,770$  9,216,599$  0.21% 198.63$         2008 46,715 4,572,357,820     10,547,958 296,805        10,251,153  0.22% 219.44           2009 47,460 4,741,943,700     10,011,895 258,769        9,753,126    0.21% 205.50           2010 47,595 4,914,142,310     16,708,100 101,190        16,606,910  0.34% 348.92           2011 48,035 5,028,671,727     25,655,000 175,458        25,479,542  0.51% 530.44           2012 48,415 5,159,064,332     30,735,000 263,629        30,471,371  0.59% 629.38           2013 48,695 5,281,797,406     29,397,612 592,612        28,805,000  0.55% 591.54           2014 50,444 5,467,180,620     27,504,927 532,328        26,972,599  0.49% 534.70           2015 50,787 5,710,010,309     24,990,106 722,540        24,267,566  0.43% 477.83           2016 51,253 5,907,590,736     22,862,084 971,579        21,890,505  0.37% 427.11           Source:  City budget documents, Comprehensive Annual Financial Reports of the city and Washington Department of Assessment and Taxation. CITY OF TIGARD, OREGON RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA For the last ten fiscal years 167 Percent Amount Applicable Applicable Net Debt Inside City of Inside City of Jurisdiction Outstanding Tigard *Tigard Tigard/Tualatin School District #23‐J 86,394,152$            46.33%40,030,644$             Metro 199,855,000            3.36%6,712,330                 Beaverton School District #48 808,153,784            3.66%29,595,400               Portland Community College 335,095,000            4.23%14,186,582               Washington County 53,679,570              10.30%5,529,425                 Tualatin Valley Fire & Rescue District 52,000,000              11.77% 6,119,308                    Sub‐Total of Overlapping Debt 1,535,177,506        102,173,689             City of Tigard 24,358,693              100.00%24,358,693                  Total for Overlapping Debt 1,559,536,199$      126,532,382$          * The City of Tigard does not calculate this percentage; it is provided by the State of Oregon. Source:  Oregon State Treasury Debt Management Division. CITY OF TIGARD, OREGON COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2016 168 2007 2008 2009 Debt limit 214,572,630$        238,791,040$        244,850,530$     Total net debt applicable to limit 9,724,836               10,547,958            10,011,895       Legal debt margin 204,847,794$        228,243,082$        234,838,635$      Total net debt applicable to the limit       as a percentage of debt limit   4.53%4.42% 4.09% Note:  Pursuant to Oregon Revised Statutes 223.295 outstanding general obligation debt is             limited to 3% real market value. Source:  Washington County Department of Assessment and Taxation. CITY OF TIGARD, OREGON COMPUTATION OF LEGAL DEBT MARGIN For the last ten fiscal years 169 2010 2011 2012 2013 2014 2015 2016 232,145,773$  217,807,538$  207,504,714$  201,826,506$  210,982,614$      230,989,826$  242,482,552$   16,708,100      32,300,000      30,735,000      28,800,576       26,820,000           24,775,000      22,670,000       215,437,673$  185,507,538$  176,769,714$  173,025,930$  137,195,419$      206,214,826$  219,812,552$   7.20% 14.83% 14.81% 14.27%12.71% 10.73% 9.35% Legal Debt Margin Calculation at June 30, 2016 True cash value (2015‐2016) 8,082,751,732$    Limit as a percent 3%    Debt Limit (as a percent of real market value)242,482,552         Debt applicable to limit: Gross bonded debt 24,358,693$         Excludable debt ‐ Bancroft improvement bonds, bond premium,   capital lease and commercial bank loan (1,688,693)             Debt subject to limitation 22,670,000            Legal debt margin ‐ amount available for future indebtedness 219,812,552         Total net debt applicable to the limit as a percent of debt limit 9.35% 170 Fiscal General Bank Year Ended Obligation Bancroft Loan Capital June 30 Population Bonded Debt Bonded Debt Payable Lease 2007 46,400 11,066,369$            1,345,030$            ‐$                             ‐$                              2008 46,715 10,547,958 1,301,230 ‐                               ‐                                2009 47,460 10,011,895 1,278,130 ‐                               ‐                                2010 47,595 16,708,100 1,203,730 ‐                               ‐                                2011 48,035 32,597,213 1,024,530 ‐                               ‐                                2012 48,415 30,735,000 966,239 ‐                               ‐                                2013 48,695 28,805,000 903,739 ‐                               58,074 2014 50,444 27,059,171 445,756 ‐                               58,074 2015 50,787 24,990,106 373,711 1,300,000 44,482 2016 51,253 22,862,084 296,319 1,170,000 30,290 Governmental Activities CITY OF TIGARD, OREGON RATIO OF DEBT BY TYPE For the last ten fiscal years * Revenue bonds issued for improvements to the Tigard Water Service Area (TWSA) are liabilities of the City of Tigard, but were not  issued as full faith and credit obligations.  Debt service on these bonds will be paid by customers of TWSA, which includes residents in  the cities of Tigard, Durham and King City, and an unincorporated area of Washington County. ** Personal income is not available for the City of Tigard, so per capita income for Washington County is used. Sources:  City budget documents, Comprehensive Annual Financial Reports of the city and Washington County Deaprtment of  Assessment and Taxation. 171 Long‐Term Percentage Note Payable Notes Payable Revenue Total Primary of Personal  Per Debt Debt Bonds * Government Income **Capita 1,242,187$                ‐$                             ‐$                             13,653,586$            0.96%294$                         1,012,986                  ‐                               ‐                               12,862,174              0.90%275                           777,296                     2,853,868               ‐                               14,921,189              1.03%314                           529,978                     2,853,868               ‐                               21,295,676              1.47%447                           270,925                     5,953,868               ‐                               39,846,536              2.72%830                           ‐                                   2,398,000               105,367,290          139,466,529            9.44%2,881                        ‐                                   2,293,486               104,896,687          136,956,986            9.21%2,813                        ‐                                   2,201,107               104,896,686          134,660,794            8.75%2,670                        ‐                                   2,105,957               139,643,153          168,457,409            10.87%3,317                        ‐                                   2,007,952               139,003,308          165,369,953            10.57%3,227                        Business‐type Activities 172 2014 2015 2016 Gross revenues 16,079,753$        18,944,301$        20,918,497$         System Development Charges (SDC) related:    SDC Fund interest earnings ‐                         9,294                     35,173                      Reimbursement fee receipts (2)389,460                308,896                1,242,297                 Improvement fee receipts (3)442,651                503,853                1,569,645                    Total SDC‐related 832,111                822,043                2,847,115              Operating expense:    Salaries and wages 1,225,170             1,462,677             1,117,286                 Contracted services 400,972                336,178                353,396                    Water purchases 3,199,292             2,644,491             4,212,357                 General, admin and other 2,548,678             2,781,892             3,111,194                    Total operating expenses 7,374,112             7,225,238             8,794,233                       Net revenues (including SDCs)9,537,752             12,541,106          14,971,379                    Net revenues (excluding SDCs)8,705,641$          11,719,063$        12,124,264$         Debt service ‐ first lien bonds:    2012 bonds 4,719,850$          4,719,850$          4,719,850$              2015 bonds ‐                         ‐                         1,378,238              Total debt service 4,719,850$          4,719,850$          6,098,088$                 Debt service coverage ‐ first lien bonds          (excluding system development charges)1.84                       2.48                       1.99                        (1)  Revenue bonds were issued in May 2012 and February 2015.  One of the debt covenants requires debt service       coverage (Net revenues divided by debt service) to be a minimum of 1.1x. (2)  Reimbursement fees may not be available to pay debt service on the 2012 Bonds until City Council takes action       to authorize that use of those fees for the projects. (3)  Improvement fees have been approved for the projects related to the Lake Oswego‐Tigard Water Partnership.       Tigard anticipated approximately 85% of the bond proceeds to be used to finance projects related to the       Partnership and approximately 15% of the bond proceeds to be used to finance projects that are not directly       related to the partnership. CITY OF TIGARD, OREGON COMPUTATION OF WATER REVENUE BONDS DEBT COVERAGE For the last three fiscal years (1) 173 Assessed Total Unemployment Value Personal Rate Fiscal of Taxable Income (Portland) Year Ended Property School Per Capita (thousands Metropolitan June 30 Population  (1)Per Capita Enrollment (2)Income (3)of dollars) (3)Area (4) 2007 46,400 93,635$             12,100            N/A           N/A 4.8% 2008 46,715 97,878                12,451            N/A           N/A 5.3% 2009 47,460 99,915                12,685            N/A           N/A 9.7% 2010 47,595 103,249             12,913            N/A           N/A 8.4% 2011 48,035 104,688             12,688            N/A           N/A 9.5% 2012 48,415 106,559             12,691 30,522 1,477,723 8.2% 2013 48,695 108,467             12,688 32,527 1,583,902 7.5% 2014 50,444 108,381             12,718 33,709 1,700,417 6.4% 2015 50,787 112,431             12,676 34,878 1,771,349 5.4% 2016 51,253 115,263             12,718 35,837 1,836,754 5.0% Sources of Information: (1) United States Census Bureau (2) Tigard/Tualatin School District #23‐J ‐ City student totals not available (3) Washington State University ‐ Northwest Income Indicators Project (4) US Department of Labor, Bureau of Labor Statistics CITY OF TIGARD, OREGON DEMOGRAPHICS STATISTICS For the last ten fiscal years 174 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Tigard ‐ Tualatin School District #23‐J 779                1 2.76%779              2      2.49% Nordstrom 422                2 1.49%461              4      1.47% Capital One 413                3 1.46% Macy's Department Stores 372                4 1.32%704              3      2.25% Oregon Public Employees Retirement 364                5 1.29%347              5      1.11% Costco Wholesale Corporation 273                6 0.97%341              6      1.09% City of Tigard 270                7 0.96%250              9      0.80% Gerber Legendary Blades 232                8 0.82% Comcast 228                9 0.81% Servicemaster Building Maintenance 220                10 0.78% Ikon Office Solutions 272              8      0.87% Home Depot 241              10   0.80% Renaissance Credit Services 1,116           1      3.57% Providence Health System 303              7      0.97%    Total 2,372 8.40%4,814           15.42% 2016 2007 CITY OF TIGARD, OREGON PRINCIPAL EMPLOYERS For current year and nine years ago Source:  City of Tigard Adopted Budget and Tigard Chamber of Commerce. 175 Fiscal Year Ended Number of Number of June 30 Permits Value Permits Value 2007 9 50,512,736$                231 67,798,361$                 2008 6 73,614,404                  93 31,810,734                   2009 4 1,944,775                     42 9,324,154                      2010 4 2,003,118                     123 27,972,462                   2011 5 837,655                        113 28,150,102                   2012 5 2,589,566                     104 27,794,839                   2013 8 20,053,155                  174 41,954,242                   2014 9 24,964,563                  72 21,410,225                   2015 10 31,518,023                  280 45,546,665                   2016 5 18,381,597                  242 81,847,774                   (1) From City of Tigard Building Department.  Multi‐family permits are included in the number of permits issued for      residential construction. Commercial Construction (1)Residential Construction (1) CITY OF TIGARD, OREGON PROPERTY VALUE AND CONSTRUCTION For the last ten fiscal years 176 Function / Program 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 GOVERNMENTAL ACTIVITIES Community services Police 80.00    93.00    93.00    90.10    90.10    91.10    84.50    84.50    82.50    83.50     Library 34.20    41.90    41.90    38.80    38.80    38.80    34.80    34.80    34.80    38.30     Public works Administration 7.60      8.85      8.85      9.35      9.75      8.75      9.00      9.20      9.20      9.00       Parks maintenance 10.75    9.75      9.75      9.75      9.75      9.75      9.75      9.75      10.75    11.67     Street maintenance 7.00      7.00      7.00      7.00      7.00      7.00      7.00      7.25      7.25      6.33       Healthy Streams ‐         ‐         ‐         ‐         ‐         ‐        1.00       ‐         ‐         ‐         Engineering (a)10.50    10.50    10.50    11.80    11.80    11.80    12.00    13.00    14.00    14.00     Community development Administration 2.00      3.00      3.00      2.00      2.00      3.00      2.00      2.00      2.00      3.00       Building inspection 19.80    17.80    6.20      6.24      7.20      8.10      7.80      8.80      9.00      9.00       Development Services 8.20      10.20    10.20    7.56      7.80      5.90      4.80      3.80      3.80      3.80       Community Planning 8.00      7.00      7.00      7.00      7.00      9.00      9.00      9.00      9.00      9.00       Development Engineering (b)5.00      5.00      4.00      1.60       ‐         ‐         ‐         ‐         ‐         ‐         Economic Development (c)‐        1.00      1.00      1.00      1.00      1.50      1.00      2.00      2.00      2.00       Policy and Administration City management 3.80      5.30      5.30      4.50      4.50      4.20      4.00      4.00      5.00      5.50       Human resources 4.00      5.00      5.00      5.00      5.00      5.00      4.80      4.80      4.50      4.80       Information technology 8.00      7.00      7.00      7.00      7.00      7.00      6.30      5.80      7.00      7.00       Risk management 2.00      2.50      2.50      2.30      2.30      2.30      2.10      2.10      2.10      2.30       Finance administration 3.00      3.00      3.00      5.30      3.00      3.00      3.00      3.00      3.00      3.00       Financial operations 10.80    5.50      5.50      4.50      4.50      4.50      4.60      4.60      4.60      4.60       Utility Billing (d) ‐        6.50      6.50      5.50      5.50      6.30      6.50      6.80      6.80      6.80       Design & Communication 7.30      4.50      4.50      3.05      3.05      3.25      3.05      3.05      3.05      3.05       Contracts & Purchasing (e)‐         ‐         ‐         ‐        2.30      2.30      1.80      2.00      2.00      2.00       City Recorder/Records (f)‐        3.00      3.00      3.25      3.25      3.35      4.15      4.15      4.15      3.35       Municipal court 3.00      3.25      3.25      3.50      3.75      3.75      3.65      3.65      3.65      3.65       Fleet maintenance (g)2.50      2.50      2.50      2.00      2.60      2.60      1.50      0.95      1.95      1.80       Property management (g)3.25      4.25      4.25      4.25      4.25      4.25      3.75      3.85      4.85      5.20       BUSINESS‐TYPE ACTIVITIES Public works Sanitary sewer 7.35      5.35      5.35      5.25      5.25      6.25      6.25      6.50      5.50      6.00       Stormwater 6.35      7.10      7.10      7.00      7.00      6.25      5.25      5.50      6.50      7.00       Water 17.30    16.30    16.30    13.00    12.00    12.75    12.50    12.00    13.00    13.00        Total 271.70  296.05  283.45  267.60  267.45  271.75  255.85  256.85  261.95  268.65   Source:  City of Tigard Finance Department (a)Engineering was budgeted with Development Services until FY 2009‐10. (b)Development Engineering was budgeted with Capital Construction & Transportation as Engineering until FY 2006‐07. (c)Downtown Redevelopment was budgeted with Long range planning until FY 2008‐09. (d)Utility Billing was budgeted with Financial operations until FY 2007‐08. (e)Contracts & Purchasing was budgeted with Finance administration until FY 2010‐2011. (f)City Recorder/Records was budgeted with Office services until FY 2008‐09. (g) Fleet/Property Management budgeted with Public Works until FY 2015‐16. CITY OF TIGARD, OREGON FULL‐TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION For the last ten fiscal years 177 This page intentionally left blank. Functions/Programs 2007 2008 2009 GOVERNMENTAL ACTIVITIES Community services Police‐number of traffic citations issued 6,979                      6,383                      6,925                 Police‐number of calls for service 51,000                   51,377                   50,115               Library‐number of items in collection 156,500                 176,210                 193,710             Library‐materials checked out each year 918,540                 1,131,093              1,249,462         Public works Acres of park land maintained 180                         184                         189                     Crack sealing completed annually (linear feet)160,000                 160,000                 160,000             Vehicles maintained to industry standard 150                         153                         158                     Community development Number of inspections (Tigard)23,000                   23,500                   7,778                 Number of permits (all types) in Tigard 4,500                      4,850                      2,278                 Number of development applications 507                         450                         508                     Policy and administration Number of job applications 2,000                      2,300                      2,215                 Laptops and computers to maintain 540                         435                         451                     Insured value of city's real property (in millions)46                           74                           78                       Number of utility bills sent **113,502                 115,574                 114,500             Average fine amount collected 90                           94                           90                       BUSINESS‐TYPE ACTIVITIES Sewer Miles of sewer lines cleaned (annual goal)52                           53                           47                       Miles of sewer lines video inspected (annual goal)22                           23                           23                       Stormwater Miles of stormwater lines cleaned 30                           44                           30                       Number of water quality facilities***73                           75                           78                       Total number of catch basins cleaned***4,150                      4,915                      4,437                 Water Number of accounts 17,400                   17,870                   17,900               **City of Tigard started monthly utility billing in January 2011. ***GIS data improvement Source:  City of Tigard Finance Department CITY OF TIGARD, OREGON OPERATING INDICATORS BY FUNCTION/PROGRAM For the last ten fiscal years 178 2010 2011 2012 2013 2014 2015 2016 9,101                7,021                8,308                8,939              7,177              6,462               5,745               51,158              49,358              52,226              52,420            48,840            47,247             43,299             216,110            237,110            244,154            250,454          245,000          248,225           253,725           1,462,304        1,507,248        1,522,422        1,459,334      1,385,376      1,280,376       1,243,774       189                    233                    243                    248                  253                  255                   301                   160,000            160,000            160,000            160,000          160,000          160,000           160,000           160                    149                    149                    148                  157                  160                   146                   8,700                9,990                10,000              12,500            12,382            9,009               10,814             3,025                3,220                3,047                3,049              3,404              2,958               3,860               370                    370                    381                    357                  341                  251                   388                   1,900                1,000                1,100                2,500              2,000              2,100               2,200               488                    491                    491                    503                  523                  525                   530                   82                      82                      82                     82                    82                    82                     82                     116,800            176,274            236,389            238,400          241,500          244,000           256,500           90                      126                    126                    140                  140                  160                   160                   41                      41                      41                     42                    42                    42                     42                     23                      23                      23                     24                    21                    21                     24                     31                      31                      31                     32                    21                    21                     21                     72                      90                      90                     125                  126                  126                   126                   4,437                4,368                4,368                2,768              2,840              2,840               2,917               17,900              18,129              18,265              18,350            19,207            19,737             20,500             179 Functions/Programs 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 GOVERNMENTAL ACTIVITIES Community services Police stations 1         1         1         1         1         1         1         1         1         1          Library buildings 1         1         1         1         1         1         1         1         1         1          Public works Number of parks 13       13       14       14       14       18       20       20       20       20        Acres of park and greenspaces 348.0 348.0 396.0 396.0 435.4 447.0 493.0 499.0 514.0 514.0  Miles of streets 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0  Community development See Note Policy and administration City‐owned building facilities 5         5         5         5         5         5         5         5         5         5          BUSINESS‐TYPE ACTIVITIES Sewer Total miles of sanitary sewer lines 160.4 160.4 161.0 162.8 164.5 166.1 166.9 166.9 166.9 168.0  Stormwater Total miles of stormwater lines* 130.9 131.0 131.0 131.0 131.0 131.0 126.0 130.0 130.0 130.0  Number of water quality facilities* 77       77       79       79       92       92       125     126     126     126      Water Water mains in miles 225.1 225.1 225.1 235.0 245.0 248.0 248.0 248.0 248.0 248.0  Number of reservoirs 13       13       13       13       13       13       13       13       13       14        * GIS data improvement Source: City of Tigard Finance Department Note: No capital assets indicators are available for development services functions. CITY OF TIGARD, OREGON CAPITAL ASSETS STATISTICS BY FUNCTION For the last ten fiscal years 180 Date of Incorporation 1961 Form of government Mayor / Council with a City Manager as the administrative  head of the government of the City Area (Square Miles ‐ incorporated area)13 Miles of streets 150 Police protection:   ‐ Number of stations 1   ‐ Number of sworn police officers 67 Education:  ‐  Attendance centers 17   ‐ Number of teachers\FTE 644   ‐ Number of students 12,676 Building Permits issued (2015‐2016)795  Recreation and culture:   ‐ Number of parks 20, totaling 301 acres   ‐ Greenways 247 acres   ‐ Number of libraries 1   ‐ Number of volumes (estimated)256,500 Employees:   ‐ Classified service (union)176   ‐ Unclassified (non‐union)93 Information obtained from the various departments of the City of Tigard, Oregon and Tigard/Tualatin School District #23‐J City student totals not available. June 30, 2016 CITY OF TIGARD, OREGON MISCELLANEOUS STATISTICAL DATA 181 This page intentionally left blank. Audit Comments and Disclosure Requirements REPORT OF INDEPENDENT AUDITORS ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH OREGON MINIMUM AUDIT STANDARDS City Council City of Tigard, Oregon We have audited the basic financial statements of the City of Tigard, Oregon (City) as of and for the year ended June 30, 2016 and have issued our report thereon dated December 20, 2016. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the provisions of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free from material misstatement. Compliance As part of obtaining reasonable assurance about whether the City’s basic financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, grants, including provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules OAR 162-010-0000 to 162-010-0330, as set forth below, noncompliance with which could have a direct and material effect on the determination of financial statement amounts: OAR Section Instances of Non‐ Compliance Identified? 162‐010‐0000 Preface None Noted 162‐010‐0010 Definitions None Noted 162‐010‐0020 Introduction None Noted 162‐010‐0030 General Requirements None Noted 162‐010‐0050 Financial Statements None Noted 162‐010‐0115 Required Supplementary Information (RSI)None Noted 162‐010‐0120 Other Supplementary Information None Noted 162‐010‐0130 Schedule of Revenues, Expenditures / Expenses, and Changes in Fund  Balances, / Net Assets, Budget and Actual (Each Fund)None Noted 162‐010‐0150 Schedule of Property Tax Transactions or Acreage Assessments None Noted 162‐010‐0160 Schedule of Bonded or Long‐Term Debt Transactions None Noted 162‐010‐0170 Schedule of Future Requirements for Retirement of Bonded or Long‐ Term Debt None Noted 162‐010‐0190 Other Financial or Statistical Information None Noted 162‐010‐0200 Required Disclosures and Independent Auditors Comments None Noted 162‐010‐0230 Accounting Records and Internal Control None Noted 162‐010‐0240 Public Fund Deposits None Noted 162‐010‐0250 Indebtedness None Noted 162‐010‐0260 Budget Yes 162‐010‐0270 Insurance and Fidelity Bonds None Noted 162‐010‐0280 Programs Funded from Outside Sources None Noted 162‐010‐0295 Highway Funds None Noted 162‐010‐0300 Investments None Noted 162‐010‐0310 Public Contracts and Purchasing None Noted 162‐010‐0320 Other Comments and Disclosures None Noted 182 However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our test disclosed no instances of noncompliance that are required to be reported under Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State, except those noted below. The City failed to list the date, time and location of its budget hearing on June 14, 2016, which is required per Oregon budget rule 150-294-0310(b). The City had over-expenditures of $4,296 in the Urban Forestry Fund for the year ended June 30, 2016. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be deficiencies, significant deficiencies or material weaknesses. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We noted certain additional matters that we reported to the City in a separately issued letter to management. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and do not provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State, in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. For Moss Adams LLP Portland, Oregon December 20, 2016 183