2017 City of Tigard CAFR CityofTigard, Oregon
Comprehensive Annual
Financial Report
FISCAL YEAR ENDED JUNE 30, 2017
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13125 SW Hall Boulevard I Tigard, OR 97223 I www.tigard-or.gov
ON THE COVER
Photographer: Doug Vorwaller I Artists: Andrew and Andrea Baxley
The New Burnham Street project was completed in 2011 and we invited the community to a celebration.
We had a pooch parade, scavenger hunt, and sidewalk activities. One of the most creative activities was
the chalk art event on the new sidewalk panels along Burnham Street. Participants worked alone, in pairs
or in groups and left our street with colorful art that we could appreciate for days.
.INNI
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. . .
T I GARD
City of Tigard, Oregon
Comprehensive Annual Financial Report
For the fiscal year ended, June 30, 2017
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 9
Organization Chart 10
Principal Officials 11
Financial Section
Independent Auditor's Report 12
Management's Discussion and Analysis 15
Basic Financial Statements:
Government-Wide Financial Statements
Statement of Net Position 30
Statement of Activities 31
Fund Financial Statements
Major Governmental Funds:
Balance Sheet 33
Reconciliation of the Balance Sheet to the Statement of
Net Position 34
Statement of Revenues, Expenditures,and Changes in Fund Balance 35
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance to the Statement of Activities 36
Proprietary Funds:
Statement of Net Position 37
Statement of Revenues, Expenses, and Changes in Fund Net Position 38
Statement of Cash Flows 39
Pension Trust Fund:
Statement of Fiduciary Net Position 40
Statement of Changes in Fiduciary Net Position 41
Notes to Basic Financial Statements 42
Required Supplementary Information:
Schedules of Revenues and Expenditures—Budget and Actual:
General Fund 89
Gas Tax Fund 90
Notes to Required Supplemental Information:
Budget to GAAP Reconciliation 91
Schedule of the City's Proportionate Share of the Net Pension Liability(Asset) 92
Schedule of Plan Contributions 93
Other Supplementary Information:
Nonmajor Governmental Funds Combining Statements:
Combining Balance Sheet 94
Combining Statement of Revenues, Expenditures,and Changes in Fund Balances 95
Special Revenue Funds:
Combining Balance Sheet—Nonmajor Special Revenue Funds 96
Combining Statement of Revenues, Expenditures,and Changes in Fund Balance 98
Schedules of Revenues and Expenditures—Budget and Actual:
City Gas Tax Fund 100
Electrical Inspection Fund 101
City of Tigard, Oregon
Table of Contents, continued
Financial Section,Continued
Other Supplementary Information, Continued:
Building Fund 102
Criminal Forfeiture Fund 103
Urban Forestry Fund 104
Parks Utility Fund 105
Library Fund 106
Debt Service Funds:
Combining Balance Sheet—Nonmajor Debt Service Funds 107
Combining Statement of Revenues, Expenditures,and Changes in Fund Balance 108
Schedules of Revenues and Expenditures—Budget and Actual:
Bancroft Bond Debt Service Fund 109
General Obligation Debt Service Fund 110
Urban Renewal Agency Debt Service Fund 111
Capital Projects Funds:
Combining Balance Sheet—Nonmajor Capital Projects Funds 112
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance—Nonmajor Capital Projects Funds 114
Schedule of Revenues and Expenditures—Budget and Actual:
Facility Fund 116
Underground Utility Fund 117
Street Maintenance Fee Fund 118
Transportation SDC Fund 119
Parks Capital Fund 120
Parks Bond Fund 121
Transportation CIP Fund 122
Urban Renewal Agency Capital Projects Fund 123
Major Capital Projects Funds Schedule of Revenues and Expenditures—Budget and Actual:
Transportation Development Tax Fund 124
Parks SDC Fund 125
Proprietary Funds:
Enterprise Funds:
Schedules of Revenues and Expenditures—Budget and Actual:
Sanitary Sewer Fund 126
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Sanitary Sewer Fund 127
Stormwater Fund 128
Water Quality and Quantity Fund 129
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Stormwater Funds 130
Water Fund 131
Water SDC Fund 132
Water CIP Fund 133
Water Debt Service Fund 134
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Water Funds 135
Reconciliation of Budgetary Fund Balance to Generally Accepted
Accounting Principles Basis Net Position 136
Internal Service Funds:
Combining Statement of Net Position 137
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 138
Combining Statement of Cash Flows 139
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 140
Fleet/Property Management Fund 141
Insurance Fund 142
Other Schedules:
Schedule of Bond and Bond Interest Transactions 143
Schedule of Future Debt Service Requirements of:
Local Improvement District Bonds 144
General Obligation Bonds 145
Bank Loan Payable 146
Water Revenue Bonds 147
Safe Drinking Water Revolving Loan Funds 148
Statistical Section
Net Position by Component 149
Changes in Net Position 151
Fund Balances of Governmental Funds 155
Changes in Fund Balances of Governmental Funds 157
Governmental and Business-Type Revenues 159
Governmental and Business-Type Expenses by Function 161
General Governmental Revenues by Sources 163
General Governmental Expenditures by Function 165
Market Value and Assessed Value of Taxable Property 166
Property Tax Rates—Direct and Overlapping Governments 167
Principal Property Taxpayers 169
Property Tax Levies and Collections 170
Special Assessment Collections 171
Ratio of Annual Debt Service Expenditures for Long-Term Debt to
Total Governmental Expenditures 172
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt per Capita 173
Computation of Direct and Overlapping Debt 174
Computation of Legal Debt Margin 175
Ratio of Debt by Type 177
Computation of Water Revenue Bonds Debt Coverage 179
Demographics Statistics 180
Principal Employers 181
Property Value and Construction 182
Full-time Equivalent City Government Employees by Function 183
Operating Indicators by Function/Program 184
Capital Assets Statistics by Function 186
Miscellaneous Statistical Data 187
Audit Comments and Disclosure Requirements
Independent Auditor's Report Required by Oregon State Regulations 188
Introductory Section
City of Tigard
January 31, 2018
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, 2017, 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, 2017, 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, 2017, 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
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 30,2017,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.
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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
Tig rd boundary and Tigard's neighboring cities include Beaverton, Lake Oswego,
q'',-- Tualatin, Durham, Portland,and King City.State Highway 99W, runs north and
-,_;0,': wg 'n4l_ south through the eastern portion of the city as a major commuter corridor
'/ - .." ft , . ; 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. ti o
4„,
Throughout fiscal year 2017, permitting and construction !'3'2s 't
phase of development of River Terrace was in full swing. Portland
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 I _
Tigard's newest neighborhood is on the city's website at: Beaverton ,.
http://projects.tigard-or.gov/projects/river-terrace/. - m
The city is governed by an elected mayor and four council
members who comprise the city council.The city's charter . Tigard, 4
established the Mayor/Council form of government. Each ; a
member of the city council is elected at-large to serve a .-t- Oswego
four-year term. The mayor presides at council meetings
7-"N h
and is elected at-large for a four-year term.The mayor and
council provide community leadership, develop policies to Tualatin
guide the city in delivering services and achieving i-205
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.
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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
undertake urban renewal projects and activities pursuant to the city's downtown redevelopment plan.
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.
The chart below shows an eight-year comparison of unemployment rates for the state and local areas as well
as the U.S. by fiscal year. The area's unemployment rate has steadily declined over the past eight years.
Tigard's most current unemployment rate is 3.5 percent as of June 2017, which is 0.2 percent lower than the
Portland Metro area and the State of Oregon.
Unemployment trends
14.0% -
ca
cc 12.0%
10.0%
E 8.0%
c 6.0%
£ 4.0%
c 2.0%
0.0%
2010 2011 2012 2013 2014 2015 2016 2017
-State of Oregon 10.5% 9.4% 8.5% 8.1% 6.8% 5.5% 4.8% 3.7%
-United States 9.6% 9.2% 8.2% 7.8% 6.1% 5.3% 4.9% 4.3%
Portland Metro 9.7% 9.5% 8.0% 7.6% 6.1% 5.4% 4.9% 3.7%
Washington County 9.0% 8.1% 8.2% 6.6% 5.6% 5.0% 4.7% 3.5%
City of Tigard 8.4% 8.1% 8.2% 6.6% 5.4% 4.5% 4.4% 3.5%
Fiscal year
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2017 Summary of Local Statistics
Number of businesses 2,976
Median household income (2015) $62,048
General fund permanent tax rate $2.5131 per$1,000 of assessed value
Total assessed value (est. 2016/2017) 6,123,501,297
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
2018—2023 CIP can be found on line at http://www.tigard-or.gov/city_hall/cip.php
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 2017 budget document includes the city's
financial policies noted in the appendix starting on page 422. The policies can be found on line at:
http://publicrecords.tigard-or.gov/Public/DocView.aspx?id=724227&dbid=0
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.
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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 2017-2019 council established goals for
the city as follows:
1. Advance a Local Option Levy and Facilities Bond to Voters to Increase Resources and Space for Day-
to-Day City Services.
• Develop key messages to inform/educate the public about city services and funding challenges
for outreach effort
• Develop and administer a second community survey or focus groups to test key messages for levy
support
• Launch a comprehensive outreach campaign to inform and educate the community about specific
funding challenges
• Develop and administer a third community survey or focus groups that tests support for a local
option levy
• Quarterly briefings with city council to plan for local option levy
• Using findings from completed outreach and research, draft local option levy alternatives for
council consideration
• Present local option levy possibilities for council review; decision about whether to pursue a local
option levy on the May 2018 ballot
• Launch education and information on levy proposal
• File ballot measure with Washington County for May election
2. Expand Recreation Opportunities for the People of Tigard.
• Continue to implement city recreation program in 2017-18 and 2018-19 adopted budget
o Continue to implement recommendations of the Recreation Program Study from 2013
o Pilot for after school programming at Metzger Elementary School
o Add additional afterschool programs at other schools
o Expand programs and classes with outside providers
o Expand outdoor events (movies, concerts, pop-ups in the park)
o Offer indoor events and programming using Fanno Creek House, Dirksen modular facility and
school facilities
• Continue to pursue feasibility of partnership opportunities with other cities and organizations.
o Discuss partnerships with the Tigard-Tualatin School District including programming and
facilities at Templeton, Metzger,Alberta Rider,Tigard High School, and Art Rutkin sites
o Form a Recreation Task Force made up of PRAB (Parks and Recreation Advisory Board)
members to evaluate recreation partnerships and make recommendations to council,
including:
■ Explore partnership opportunities with the cities of Sherwood,Tualatin and Wilsonville
■ Prepare a white paper about recreation opportunities
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■ Suggest recreation-related questions for the 2017 Community Attitudes Survey
3. Make Downtown Tigard a Place Where People Want to Be.
• Focus on identifying and acquiring property and developing the Downtown Plaza.
o Design and develop Tigard Street Heritage Trailhead plaza as a gathering place and event
space
o Complete design and engineering for Main Street at Fanno Creek public space
o Evaluate locations for other plaza/public space, including as part of Civic Center visioning
• Make Downtown Tigard a livable community with something to offer residents 18 hours a day, 7
days a week; develop housing units within downtown.
o Complete cleanup and redevelopment of the Main Street at Fanno Creek property into a
mixed use building and public space
o Complete Metro grant funded pre-development projects to attract new housing/mixed use
development, including affordable housing, and engage with developers
o Build the capacity of the Tigard Downtown Alliance to produce programs and projects that
meet the council goal
o Work with a range of community groups to design and program the Tigard Street Heritage
Trail
o Enable existing businesses to improve their properties and attract new businesses to vacant
buildings through the Urban Renewal Improvement Matching Grant Program
o Partner with the TDA to pursue Oregon Main Street grant funding for property improvements.
• Implement Downtown Projects.
o Main Street Green Street Phase II
o Tigard Street Trail
o Fanno and Main
4. Pursue Development of Light Rail Along the Southwest Corridor.
• Advocate for Light Rail to come to Downtown Tigard
o Support request to the State Legislature for$150M in state lottery funding for the Southwest
Corridor Project.
o Support legislation to grant the Metro Council authority to consolidate multijurisdictional land
use actions involving the SW Corridor into a single decision and expedited land use appeal
process.
• Adopt a Locally Preferred Alternative (LPA) in 2018 that advances Tigard's land use and
transportation priorities:
o Direct service to downtown Tigard
o Vehicle and pedestrian crossing at Ash Avenue
• Development of three light rail stations including one downtown and two in the Tigard Triangle
o Structured parking facilities in downtown,the Triangle, or both districts,to be made available
for short-term public parking (non-commuters)
o Implementation of Shared Investment Strategy projects that enhance the walkability and
connectivity of the community near transit stations
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o Construction of affordable housing in the Triangle and downtown near transit stations,
including replacement housing for"at risk"units due to SWC light rail construction concurrent
with, or prior to, light rail construction
o Mitigation and enhancement of sensitive lands, congested intersections, and other
community assets due to light rail construction and operation.
o Adoption of design standards and guidelines in TMC Title 18 to ensure that the quality of light
rail components meet a high standard of urban design.
o Effective outreach and communication with impacted neighborhoods. Environmental justice
for low-income or non-English speaking residents for whom impacts are most disruptive.
o Effective outreach and communication with impacted businesses. Economic development
support for displaced or impacted Tigard businesses.
o Execution of an intergovernmental agreement with TriMet for Services Related to Design
Review, Permitting, Shared Parking and Facilitation of Affordable Housing
o Participation on a Sustainable City Year Program multi-jurisdictional team to support City of
Tigard goals in the SWC.
5. Implement Tigard Triangle Strategic Plan (TTSP).
• Consider Lean Code and Plan Amendments
o Lean Code (Describes development)
o Zoning Map (Designates zoning on specific property)
o Transportation System Plan/TPR Analysis (street network map, streets with bike facilities,
alley map)
o TTSP (Describes the vision for the Triangle)
• Infrastructure Planning
o Triangle Stormwater Implementation Plan (Area-wide stormwater management)
o 72nd Avenue Study(capacity and ultimate street section design)
• Development of Funding Tools
o Establish Urban Renewal Agency—public vote on UR plan
6. Annex Territory into the City.
• Prioritize annexation of islands including a strategy and incentives.
o Review overall project approach, draft letter to island residents, outreach plan, potential
incentives and legal process with council—1st week in March, 2017
o Schedule and conduct small group meetings/conversations, identify incentives — March —
April, 2017.
o Follow-up on incentives, develop schedule for hearings and final action—May—July 2017.
o Develop a strategy for communication and outreach to residents, with the council in the lead
for outreach.
o Develop a strategy for future annexations of the remaining Urban Growth Boundary(UGB).
o Beginning July, 2018 develop a work plan for future annexations of the UGB. Include dates
and deadlines for needed studies and outreach. Identify logical phasing options. Present work
plan to council by the end of 2018.
More information about the city's goals and initiatives can be found on the city's Finance and Information
Services web page: http://www.tigard-or.gov/city hall/finance and information services.php.
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, 2016. This was the 31st 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 2017. This was the 29th 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 2018 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. Special thanks should be given to the City of
Tigard Audit Committee for their dedicated service of overseeing the work performed by the independent
auditors.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,
L.--1/17A-41I---
Marty Wine Toby LaFrance
City Manager Director of Finance and Information Services
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Tigard
Oregon
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2016
FAsot....0
Prf
Executive Director/CEO
9
City of Tigard, Oregon
Citywide Organizational Chart as of July 1, 2017
CITY of TIGARD
CITIZENS OF TIGARD ,
t
r 4
Mayor&City City Attorney
Council
'S
P 4
1
I
II 4
City Manager
.5 -!
I I I 11 I I I
I s I 1 . 1 I • I l ♦ ♦ I l
Administrative Community Finance&
Services City Management Development Information Services Library Police Public Works
• I ♦ I . . l . ♦ I ♦ . ♦ !
Design& Human Resources CD Planning Administration Administration Administration Administration
Communications
City Recorder/ Risk Management Building Financial Operations Circulation Support Services Public Works Engineering
Records
Municipal Court City Manager's Office Economic Development Information Services Reader Services Police Operations Parks&Grounds
Fleet Maintenance Utility Billing Technical Services Storm Water
Property Contracts&Purchasing Water
Management
Sanitary Sewer
Street Maintenance
Street Lights&
Signals
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City of Tigard, Oregon
Principal Officials as of July 1, 2017
Elected Officials
Name Term Expires
Mayor John Cook December 31, 2018
Councilor Jason Snider December 31, 2020
-
Councilor John Goodhouse December 31, 2018
Councilor Tom Anderson December 31, 2020
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
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No content appears on this page by design.
Financial Section
0 MOSSADAMS
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, 2017, 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.
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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, 2017, 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.
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 15 through 29 and 89 through 93, 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 15 through 29, and pages 92 through 93 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 89 through 91 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 89 to 142 are
presented for purposes of additional analysis and are not a required part of the basic financial
statements.
13
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 January 31, 2018 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.
C (46(4/171
or Moss Adams LLP
Portland, Oregon
January 31, 2018
14
No content appears on this page by design.
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, 2017. 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, 2017 by$397,315,760 (net position). Of this amount, $16,994,300
is restricted for transportation construction, maintenance and utility undergrounding, $2,272,522 is
restricted for park development and improvements, $8,551,308 is restricted for water system
construction and improvements, $8,669,030 is restricted for debt service, $4,519,413 is restricted for
building development plan review and inspection, $477,966 is restricted for library capital
improvements and $216,517 is restricted for law enforcement equipment. $51,529,793 is
unrestricted net position may be used to meet the city's ongoing obligations to citizens and creditors
and $304,084,911 is for net investment in capital assets.
• The city's total net position had a net increase of$41,381,657 or 11.6 percent from the June 30, 2016
net position. Governmental activities net position increased by $19,721,258, or 8.7 percent. The
business-type activities net position increased by $21,660,399 or 16.7 percent. 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$52,864,147, an increase
of 16,737,609 or 46.3 percent from fiscal year 2016. Of the combined ending governmental fund
balances, $14,159,416 or approximately 26.8 percent 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 $14,884,712, up
$1,914,042 over the prior year.
• The city's total debt decreased by$5,098,837 or 3.1 percent from fiscal year 2016.
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.
15
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 30-32 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.
16
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
four major funds: General, Gas Tax, Transportation Development Tax, and Parks SDC Funds. Data from the
other 18 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 33-36 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 126-136 of this report. Budgetary comparisons for the internal service
funds are provided on pages 137-142 of this report.
The proprietary fund financial statements can be found on pages 37-39 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 40-41 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 42-88 of this report.
17
City of Tigard, Oregon
Management's Discussion and Analysis
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
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 89 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 94-142 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$397,315,760 at June 30, 2017.
The largest portion of the city's net position, approximately 76.5 percent, 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 $41,701,056 or approximately 10.5 percent 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$51,529,793 or approximately 13.0 percent 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 $41,381,657 or 11.6 percent during the current fiscal year. Total assets for
governmental activities increased by approximately$19.1 million, or approximately 7.2 percent. Noteworthy
changes included an increase in cash and investments of approximately $9.4 million or 20 percent. This
increase is due to development activity in the city resulting in higher fee collection in the Building,
Transportation Development Tax,Transportation SDC, Parks SDC and Water SDC funds.
Governmental activities liabilities increased by approximately $4.8 million or 12.7 percent. Noteworthy
changes include a significant increase in net pension liability of approximately $6.5 million or 139.8 percent
due to changes in actuarial assumptions associated with the rate of return on investments. See note 10 for
more information. Excluding the net pension liability increase,the governmental activities liabilities decreased
by approximately$1.8 million or 5.5 percent.
Governmental activities reported a decrease of $638,326 or 59.2 percent for deferred inflows of resources
related to pensions. As previously discussed, fiscal year 2017 represented the third year of implementation
of GASB Statement No. 68. The net pension asset/liability may fluctuate and effect the related deferrals given
the various factors impacting the actuarial valuation.
18
City of Tigard, Oregon
Management's Discussion and Analysis
Business-type activities total assets increased by approximately $17.1 million or 6.1 percent over the prior
year. Land and construction in progress increased by approximately$13.6 million or 8.3 percent 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.
Total long-term debt for business-type activities decreased by$2,683,971 or approximately 1.9 percent,which
primarily represents payment of principal and 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 Business-Type
Total
Activities Activities
2017 2016 2017 2016 2017 2016
Current and other assets $ 63,545,186 $ 45,652,598 $ 53,753,388 $ 50,280,345 $117,298,574 $ 95,932,943
Capital assets 219,410,373 218,225,516 242,037,622 228,453,349 461,447,995 446,678,865
Total Assets 282,955,559 263,878,114 295,791,010 278,733,694 578,746,569 542,611,808
Deferred outflows related to pension 5,928,602 1,170,397 - - 5,928,602 1,170,397
Current and other liabilities 9,807,520 9,147,544 9,005,416 10,863,362 18,812,936 20,010,906
Long-term liabilities outstanding 32,356,764 28,264,022 135,750,445 138,495,582 168,107,209 166,759,604
Total Liabilities 42,164,284 37,411,566 144,755,861 149,358,944 186,920,145 186,770,510
Deferred inflows related to pension 439,266 1,077,592 - - 439,266 1,077,592
Net investment in capital assets 199,214,099 195,142,143 104,870,812 95,247,967 304,084,911 290,390,110
Restricted 26,313,186 20,392,998 15,387,870 12,279,628 41,701,056 32,672,626
Unrestricted 20,753,326 11,024,212 30,776,467 21,847,155 51,529,793 32,871,367
Total Net Position $246,280,611 $226,559,353 $ 151,035,149 $129,374,750 $397,315,760 $355,934,103
19
City of Tigard, Oregon
Management's Discussion and Analysis
City of Tigard—Summary of Changes in Net Position
Governmental Business-Type
Total
Activities Activities
2017 2016 2017 2016 2017 2016
Revenues
Program revenues:
Charges for services $ 12,352,802 $ 9,544,047 $ 27,214,719 $ 25,768,181 $ 39,567,521 $ 35,312,228
Operating grants and contributions 6,880,727 7,756,718 - - 6,880,727 7,756,718
Capital grants and contributions 15,691,507 11,785,524 7,670,388 5,806,590 23,361,895 17,592,114
General revenues:
Property taxes 17,616,798 17,177,591 - - 17,616,798 17,177,591
Franchise fees 5,890,113 5,734,540 - - 5,890,113 5,734,540
Unrestricted intergovernmental
revenues 2,074,428 2,840,903 285,524 127,148 2,359,952 2,968,051
Interest 824,213 688,087 106,628 302,890 930,841 990,977
Miscellaneous 268,380 228,779 270,628 193,645 539,008 422,424
Total revenues 61,598,968 7 55,756,189 35,547,887 32,198,454 97,146,855 87,954,643
Expenses
Community services 23,461,915 25,089,790 - - 23,461,915 25,089,790
Public works 8,342,833 10,865,800 - - 8,342,833 10,865,800
Community development 5,831,389 7,030,142 - - 5,831,389 7,030,142
Policy and administration 3,583,751 1,226,166 - - 3,583,751 1,226,166
Interest on long-term debt 949,136 958,204 - - 949,136 958,204
Sewer - - 2,595,606 2,536,988 2,595,606 2,536,988
Stormwater - - 2,738,673 2,123,162 2,738,673 2,123,162
Water - - 8,261,895 14,720,167 8,261,895 14,720,167
Total expenses 42,169,024 45,170,102 13,596,174 19,380,317 55,765,198 64,550,419
Revenues over expenses 19,429,944 10,586,087 21,951,713 12,818,137 41,381,657 r 23,404,224
Transfers in(out) 291,314 817,481 (291,314) (817,481) - -
Changes in net position 19,721,258 11,403,568 21,660,399 12,000,656 41,381,657 r 23,404,224
Beginning net position 226,559,353 215,155,785 129,374,750 117,374,094 355,934,103 332,529,879
Ending net position $246,280,611 $226,559,353 $151,035,149 $129,374,750 $397,315,760 $355,934,103
Expenses and Program Revenues—Governmental activities—June 30, 2017
$25,000,000 -
$20,000,000
$15,000,000
$10,000,000 • Revenues
• Expenses
$5,000,000 - II .11 . , ,
$a i , ,
uR��
se,....,,
e •�cEs p�„„c., t a��e/flP�'ent dm'n,��tati�on t<F�tetm feat
•
Gomm Gomm0n,tV po',s and a 1ni�test o�/o
20
City of Tigard, Oregon
Management's Discussion and Analysis
Governmental Activities
Governmental activities increased the city's net position by$19,721,258. Noteworthy reasons for the change
from the prior year are as follows:
• Charges for services for Community Development increased by approximately $2.8 million or 29.4
percent from 2016. 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 capital grants and contributions increased by approximately $3.9 million 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 $5,890,113 in fiscal year 2017, which was a slight increase of
approximately $156,000 or 2.7 percent from fiscal year 2016. 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 percent 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
approximately $439,000 or 2.6 percent over 2016. 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 Policy and Administration increased by approximately$2.4 million or 192.3 percent over
the prior fiscal year. This increase is primarily due to the Property Management and Fleet divisions
being added to Central Services from Public Works.
21
City of Tigard, Oregon
Management's Discussion and Analysis
Revenues by Source-Governmental Activities-June 30, 2017
Capital grants
and
contributions Taxes
26% - 32%
Operating
grants and Interest
contributions 1%
11%
Franchise fees
Charges for 10%
services Misc
20% 0%
Business-type Activities
Business-type activities increased the city's net position by$21,660,399. The primary reasons for the current
year's increases are:
• Charges for services represent approximately 76.6 percent 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
approximately $1.4 million or 5.6 percent over fiscal year 2016, with the largest increase in sanitary
sewer revenues.
• Sanitary sewer charges for services increased by approximately$1.2 million or 68.2 percent over the
prior fiscal year due to the implementation of the city sewer surcharge. This monthly charge of
$2.07/dwelling unit was adopted to help the city fund the growing system infrastructure needs.
• Capital grants and contributions increased by approximately $1.9 million over fiscal year 2016. The
increase is attributable to capital contributions for stormwater,sanitary sewer and water lines related
to various private developments completed in fiscal year 2017.
• Expenses for water operations decreased approximately $6.5 million or 43.9 percent from the prior
fiscal year. The decrease is due to a decrease in the cost of water of approximately $2.9 million and
approximately$5.3 million in interest expense capitalization 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 2017.
22
City of Tigard, Oregon
Management's Discussion and Analysis
Expenses and Program Revenues—Business-type Activities—June 30, 2017
$20,000,000
$17,500,000 -'
$15,000,000
$12,500,000
$10,000,000 -v - • Revenues
$7,500,000
$5,000,000 /-1.. AM. • Expenses
$2,500,000 -'zz !'
$0
Sar\�a<y
500'
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 2017,the city's governmental funds reported combined ending fund balances
of$52,864,147 an increase of$16,737,609 over the prior year. Approximately 30.0 percent or $15,884,502
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$31,914,910 or 60.4 percent 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 non-
spendable to indicate that it is not available for discretionary spending, such as advances to other funds and
prepa ids.
General Fund
The General Fund is the chief operating fund of the city. At the end of the fiscal year 2017, the unassigned
fund balance was $14,884,712 or approximately 95.5 percent of the total fund balance of$15,591,124. 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 49.2 percent of total General Fund expenditures.
The fund balance of the General Fund increased by $1,956,200 or 14.4 percent. The increase is primarily
attributable to a decrease in transfers out to the Parks Utility Fund due to the parks and recreation fee
23
City of Tigard, Oregon
Management's Discussion and Analysis
implemented April 1, 2016. The fee partially pays for park support and operations directly, allowing the
General Fund to reduce the amount of expenses contributed. Other revenue increases included interest
revenue, up more than 35.6 percent over the fiscal year 2017, and increases in intergovernmental revenue
sharing with the State of Oregon and Washington County taxing entities.
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 2017, the fund balance was $2,679,225, an increase of$329,446 from the prior year.
Total revenues of $3,528,772 are used to fund street maintenance, street lighting and debt service on
transportation bonds. The increase in fund balance is primarily due to an increase in gas tax revenues and
higher interest earnings on investments.
Transportation Development Tax Fund
This fund accounts for the traffic impact fees collected on roads within the city's urban service areas. Funds
are used for highways and transit capital improvements in the city's capital improvement plan.
At the end of fiscal year 2017, the fund balance was $7,528,398, an increase of $4,136,091 from the prior
year. Charges for services increased approximately $1.5 million or 58.2 percent due to an increase in
development fees associated primarily with the River Terrace housing development.
Parks SDC Fund
This fund accounts for revenues associated with the collections of Parks System Development Charges.These
revenues 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.
At the end of fiscal year 2017, the fund balance was $8,136,660, an increase of $4,207,428 from the prior
year. Charges for services increased approximately$2.2 million or 100.0 percent due to an increase in system
development charges for the new River Terrace housing development.
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 $30,776,467 with
individual fund unrestricted net position at:
• Sanitary Sewer $5,245,224
• Stormwater $7,548,329
• Water Funds $17,982,914
The factors concerning the finances of these funds have already been addressed in the discussion of the city's
business-type activities.
24
City of Tigard, Oregon
Management's Discussion and Analysis
General Fund Budgetary Highlights
The city council approved three supplementary budget amendments to the adopted General Fund budget.
Total final adopted budgeted expenditures increased by $183,754 from the original budgeted numbers.
Budgeted transfers out of the General Fund was increased by $139,860 and General Fund contingency was
decreased by$246,860 or 21 percent. Following are noteworthy changes from the original budget to the final
adopted budget in the General Fund:
• Transfers Out - $120,000 to the Central Services Fund for consultant fees related to the project
management of the operational levy. Lighter, Quicker, Cheaper project to replace deteriorating
railroad steps in connecting neighborhoods added $19,860.
• Public Works - Full-time Engineering Supervisor position added $83,000 to assist in future council
goals for development. Engineering Water Project Coordinator added for part of the fiscal year at
$19,000 and will continue working on the Water Master Plan in future years.
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 in the General Fund
are as follows:
• Interest earnings—variance with budget in the amount of$289,474 due to an increase in the Local
Government Investment Pool interest rates of.58 percent.
• Intergovernmental revenues — variance with budget of $1,201,511 due to increases in local and
federal grants plus additional library funds from Washington County Cooperative Library Services
(WCCLS).
Capital Asset and Debt Administration
Capital Assets
Governmental Activities
The city's investment in capital assets for its governmental activities as of June 30, 2017, amounts to
$219,410,373 (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$1,184,857 or approximately 0.5
percent over the prior year. The city recorded approximately$1.5 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, 2017, amounts to
$242,037,622 (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
25
City of Tigard, Oregon
Management's Discussion and Analysis
the city's investment in business-type activities capital assets was$13,584,273 or 5.9 percent.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 Business-Type Total
Activities Activities
2017 2016 2017 2016 2017 2016
Land $ 26,009,224 $ 25,889,224 $ 5,237,285 $ 5,237,285 $ 31,246,509 $ 31,126,509
Construction in progress 5,621,366 3,451,257 172,290,721 158,706,084 177,912,087 162,157,341
Buildings and building improvements 14,533,523 14,975,332 688,200 733,614 15,221,723 15,708,946
Land improvements 1,883,044 2,445,839 - - 1,883,044 2,445,839
Sewer system - - 17,041,202 16,913,483 17,041,202 16,913,483
Stormwater system - - 11,533,929 10,855,787 11,533,929 10,855,787
Water system - - 34,896,334 35,578,202 34,896,334 35,578,202
Machinery and equipment 240,453 320,672 214,794 243,764 455,247 564,436
Autos and trucks 862,935 771,050 135,158 185,130 998,093 956,180
Office equipment 1,387,993 962,754 - - 1,387,993 962,754
Infrastructure 168,871,836 169,409,388 - - 168,871,836 169,409,388
Total Capital Assets $219,410,373 $218,225,516 $242,037,623 $228,453,349 $461,447,996 $446,678,865
The following chart indicates the city's capital assets as of June 30, 2017. Additional information on the city's
capital assets can be found in the notes on pages 64-65 of this report.
Total Capital Assets
Land
6.8% Construction in
Infrastructure progress
36.6% 38.6%
Office
equipment
0.3%
Autos and trucks
0.2%
Machinery and Water system
Buildings and
equipment 7.6% Storm Sewer Land building
0.1% drainage system
improvements improvements
system 3.7% 0.4% 3.3%
2.5%
26
City of Tigard, Oregon
Management's Discussion and Analysis
Debt Outstanding
As of year-end, the city had total debt outstanding of$160,271,117. Of this amount $20,675,137 is general
obligation and full faith and credit bonds; $136,420,282 represents water revenue bonds; $1,907,007
represents a note payable;$213,219 represents special assessment bonded debt or local improvement district
bonds; $1,040,000 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$5,098,836 or approximately 3.1 percent 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 $1,040,000 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 began making principal payments on these bonds during 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 $1,907,007 at year-end.
During fiscal year 2015, in anticipation of issuing water revenue bonds,the city received a revenue bond rating
of Al from Moody's Investors Service and AA-from Standard&Poor's Ratings Services. During fiscal year 2017
Moody's Investor Services reviewed the city's water enterprise activities and upgraded the city's rating from
Al to Aa3.
The State of Oregon statutes limit the amount of general obligation debt that cities can issue to 3.0 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 $270 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, 2017. Additional information on the
city's debt can be found on pages 66-70 of this report.
Governmental Business-Type Total
Activities Activities
2017 2016 2017 2016 2017 2016
General obligation $ 20,675,137 $ 22,862,084 - - $ 20,675,137 $ 22,862,084
Local improvement 213,219 296,319 - - 213,219 296,319
Bank loan payable 1,040,000 1,170,000 - - 1,040,000 1,170,000
Capital lease 15,472 30,290 - - 15,472 30,290
Note payable - - $ 1,907,007 $ 2,007,952 1,907,007 2,007,952
Revenue bonds - - 136,420,282 139,003,308 136,420,282 139,003,308
Total Outstanding Debt $ 23,276,325 $ 24,358,693 $138,327,289 $141,011,260 $160,271,117 $165,369,953
27
City of Tigard, Oregon
Management's Discussion and Analysis
Total Outstanding Long-Term Debt
General Bank loan
obligation payable
12.9% 0 7% Capital
Revenue bonds Lease
85.1% 0.01%
Local
improvement
0.1%
Note
payable
1.2
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 2018:
• The unemployment rate for the Portland metropolitan area was 3.9 percent at the end of the fiscal
year, June 30, 2017. This is almost in line with the State of Oregon rate of 3.7 percent and less than
the national average, which is 4.4 percent for June 2017. 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 46 percent 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 percent 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, allowing the city to maintain the current level of services being
provided.The city is currently considering a local option levy based upon recommendations from The
Levy and Bond Task Force, a group consisting of 17 Tigard community members tasked with
determining the rate and timing of a potential levy.
• The River Terrace subdivision will provide an increase in revenue for the city, at an estimated 0.5
percent in annual revenue growth. This subdivision will add approximately 200 homes a year for the
next five years,thus creating additional demands on city services.
• The City of Tigard issues licenses for businesses operating within the city limits. As of June 30, 2017,
there were 2,992 businesses licensed in the city as compared to 2,976 a year ago. Business license
revenues are highly sensitive to economic conditions. With the planned economic development in
28
City of Tigard, Oregon
Management's Discussion and Analysis
urban renewal, the city projects a continued increase in business licenses, but any increase will be
gradual over time. The fiscal year 2017 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.
• Fiscal year 2018 budget includes a plan to fund maintenance and development on park and
recreational areas. Park land has been acquired 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,sanitary 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 increased by 3.25 percent in fiscal year 2017 and will increase each year
thereafter through 2019. Sanitary Sewer revenues increased in fiscal year 2017 due to a city surcharge
of $2.07/dwelling unit that went into effect late in 2016. This surcharge will help the city fund the
growing infrastructure needs of the system. Clean Water Services sets rates for sanitary sewer and
storm water management(SWM). Fiscal year 2018 budget includes a 3.0 percent increase for sanitary
sewer rates, 6.5 percent increase for stormwater management rates and a 3.54 percent combined
sewer and SWM rate increase for the average residential customer. The rate increases are 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 2017-2018. The current
forecast shows that in the short-term the city's financial condition is stable in most funds. The fiscal year 2018
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
29
No content appears on this page by design.
Basic Financial Section
CITY OF TIGARD,OREGON
STATEMENT OF NET POSITION
June 30,2017
Governmental Business-Type
ASSETS Activities Activities
Total
Cash and investments $ 25,217,686 $ 30,224,726 $ 55,442,412
Accounts receivable,net 4,237,447 5,183,669 9,421,116
Property taxes receivable 794,388 - 794,388
Assessment liens receivable 373,342 - 373,342
Prepaids 141,554 2,083 143,637
Inventory 37,143 189,105 226,248
Property held for resale - 445,042 445,042
Restricted cash and investments 32,743,626 17,708,763 50,452,389
Capital assets:
Land and construction in process 31,630,590 177,528,005 209,158,595
Other capital assets(net of accumulated depreciation) 187,779,783 64,509,617 252,289,400
Total assets 282,955,559 295,791,010 578,746,569
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension 5,928,602 - 5,928,602
Total deferred outflows 5,928,602 - 5,928,602
LIABILITIES
Accounts payable and accrued liabilities 3,429,134 3,605,619 7,034,753
Deposits 1,675,600 44,091 1,719,691
Due to others 666,949 - 666,949
Internal balances 102,320 (102,320) -
Unearned revenue 75,374 - 75,374
Accrued interest payable 88,434 2,612,813 2,701,247
Due within one year:
Notes payable - 103,973 103,973
Bonds payable 2,255,840 2,644,356 4,900,196
Accrued compensated absences 1,279,197 96,884 1,376,081
Bank loan payable 130,000 - 130,000
Special assessment bonded debt with government commitment 89,200 - 89,200
Capital lease 15,472 - 15,472
Due in more than one year:
Notes payable - 1,803,034 1,803,034
Bonds payable 18,419,297 133,775,926 152,195,223
Accrued compensated absences 53,300 3,286 56,586
Bank loan payable 910,000 - 910,000
Special assessment bonded debt with government commitment 124,019 - 124,019
Net other post employment benefit obligation 1,633,150 168,199 1,801,349
Net pension liability 11,216,998 - 11,216,998
Total liabilities 42,164,284 144,755,861 186,920,145
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension 439,266 - 439,266
Total deferred inflows 439,266 - 439,266
NET POSITION
Net investment in capital assets 199,214,099 104,870,812 304,084,911
Restricted for:
Transportation construction,maintenance and utility undergrounding 16,994,300 - 16,994,300
Park development and improvements 2,272,522 - 2,272,522
Water system construction and improvements - 8,551,308 8,551,308
Debt service 1,832,468 6,836,562 8,669,030
Building development plan review and inspection 4,519,413 - 4,519,413
Library capital improvements 477,966 - 477,966
Law enforcement equipment 216,517 - 216,517
Unrestricted 20,753,326 30,776,467 51,529,793
Total net position $ 246,280,611 $ 151,035,149 $ 397,315,760
The accompanying notes are an integral part of the basic financial statements.
30
CITY OF TIGARD,OREGON
STATEMENT OF ACTIVITIES
for the year ended June 30,2017
Program Revenues
Charges Operating
for Grants and
Functions/Programs Expenses Services Contributions
Governmental activities:
Community services $ 23,461,915 $ 2,482,811 $ 3,628,412
Public works 8,342,833 5,165,280 3,159,576
Community development 5,831,389 4,341,128 -
Policy and administration 3,583,751 363,583 92,739
Interest on long-term debt 949,136 - -
Total governmental activities 42,169,024 12,352,802 6,880,727
Business-type activities:
Sewer 2,595,606 3,013,314 -
Stormwater 2,738,673 3,275,083 -
Water 8,261,895 20,926,322 -
Total business-type activities 13,596,174 _ 27,214,719 -
Total $ 55,765,198 $ 39,567,521 $ 6,880,727
The accompanying notes are an integral part of the basic financial statements.
31
Net(Expense)Revenue and Changes in Net Position-
Primary Government
Capital
Grants and Governmental Business-type
Contributions Activities Activities Total
$ - $ (17,350,692) $ - $ (17,350,692)
15,086,543 15,068,566 - 15,068,566
604,964 (885,297) - (885,297)
(3,127,429) - (3,127,429)
- (949,136) - (949,136)
15,691,507 (7,243,988) - (7,243,988)
432,473 - 850,181 850,181
407,096 - 943,506 943,506
6,830,819 - 19,495,246 19,495,246
7,670,388 - 21,288,933 21,288,933
$ 23,361,895 (7,243,988) 21,288,933 14,044,945
General Revenues:
Property taxes,levied for general
purposes 15,298,993 - 15,298,993
Property taxes,levied for debt service 2,317,805 - 2,317,805
Franchise fees 5,890,113 - 5,890,113
Unrestricted intergovernmental
revenues 2,074,428 285,524 2,359,952
Interest earnings 824,213 106,628 930,841
Miscellaneous 268,380 270,628 539,008
Total general revenues 26,673,932 662,780 27,336,712
Transfers between Governmental
and Business-type Activites 291,314 (291,314) -
Change in net position 19,721,258 21,660,399 41,381,657
Net position,beginning 226,559,353 129,374,750 355,934,103
Net position,ending $ 246,280,611 $ 151,035,149 $ 397,315,760
32
CITY OF TIGARD,OREGON
GOVERNMENTAL FUNDS-BALANCE SHEET
June 30,2017
Transportation Other Total
General Gas Tax Development Parks SDC Governmental Governmental
Fund Fund Tax Fund Fund Funds _ Funds
ASSETS
Cash and cash equivalents $ 14,926,763 $ 2,757,730 $ - $ - $ 4,590,545 $ 22,275,038
Accounts receivable 3,085,448 287,728 572 776 802,629 4,177,153
Property taxes receivable 671,106 - - - 123,282 794,388
Assessment liens receivable - - 3,413 - 369,929 373,342
Interest receivable 11,660 - - - 10,047 21,707
Advances to other funds 655,112 - - - - 655,112
Prepaids 51,300 - - - 23,425 74,725
Restricted cash and cash equivalents - - 8,073,304 8,137,499 16,532,823 32,743,626
Total assets $ 19,401,389 $ 3,045,458 $ 8,077,289 $ 8,138,275 $ 22,452,680 $ 61,115,091
LIABILITIES
Accounts payable and accrued liabilities $ 1,042,174 $ 99,274 $ 545,478 $ 1,615 $ 1,303,871 $ 2,992,412
Deposits 914,959 266,959 - - 493,682 1,675,600
Due to others 490,456 - - - 176,493 666,949
Advances from other funds - - - - 757,432 757,432
Unearned revenue - - - - 59,660 59,660
Total liabilities 2,447,589 366,233 545,478 1,615 2,791,138 6,152,053
DEFERRED INFLOWS OF RESOURCES
Resources not yet available:
Property taxes 896,578 - 122,873 1,019,451
Municipal court receivable 466,098 - - 466,098
Special assessment liens - - 3,413 609,929 613,342
Total deferred inflows of resources 1,362,676 - 3,413 - 732,802 2,098,891
FUND BALANCES
Nonspendable:
Advances to other funds 655,112 - - - - 655,112
Prepaids 51,300 - - - 16,485 67,785
Restricted for:
Street maintenance and improvements - 2,679,225 7,528,398 - 4,634,400 14,842,023
Debt service - - - - 1,339,666 1,339,666
Park development and improvements - - - 8,136,660 2,272,522 10,409,182
Underground utilities - - - - 110,143 110,143
Building inspection - - 4,519,413 4,519,413
Police services - - 216,517 216,517
Library improvements - - 477,966 477,966
Committed for:
Street maintenance and improvements - - - - 3,125,501 3,125,501
Urban forestry - - - - 1,216,337 1,216,337
Assigned to:
City facilities - - - - 1,016,775 1,016,775
Park and recreation - - 708,311 708,311
Unassigned 14,884,712 - - - (725,296) 14,159,416
Total fund balances 15,591,124 2,679,225 7,528,398 8,136,660 18,928,740 52,864,147
Total liabilities,deferred inflows of
resources and fund balances $ 19,401,389 $ 3,045,458 $ 8,077,289 $ 8,138,275 $ 22,452,680 $ 61,115,091
The accompanying notes are an integral part of the basic financial statements.
33
CITY OF TIGARD,OREGON
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
June 30,2017
Fund Balances-Governmental Funds $ 52,864,147
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 $ 318,341,659
Less accumulated depreciation (98,931,286) 219,410,373
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 (11,216,998)
Deferred outflows of resources related to pensions 5,928,602
Deferred inflows of resources related to pensions (439,266) (5,727,662)
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 791,797
Franchise fees earned but not available 137,516
Municipal court receivable 466,098
Grant receivable 330,138
Assessment liens 373,342 2,098,891
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. 2,027,242
Accrued compensated absences are not due and payable in the current period and therefore are not (1,038,067)
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 (20,675,137)
Loans payable (1,040,000)
Special assessment debt bonded with government commitment (213,219)
Capital leases payable (15,472)
Accrued interest payable, not due and payable in the current period (88,434)
Net other post employment benefit(OPEB)obligation (1,322,051)
Net Position of Governmental Activities $ 246,280,611
The accompanying notes are an integral part of the basic financial statements.
34
CITY OF TIGARD,OREGON
GOVERNMENTAL FUNDS-
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE
for the year ended June 30,2017
Transportation Other Total
General Gas Tax Development Parks SDC Governmental Governmental
Fund Fund Tax Fund Fund Funds Funds
REVENUES
Taxes $ 14,795,445 $ 3,150,308 $ - $ - $ 3,603,168 $ 21,548,921
Franchise fees 5,886,791 - - - - 5,886,791
Special assessments - - - - 52,146 52,146
Licenses and permits 2,991,946 93,663 - - 3,577,181 6,662,790
Intergovernmental revenues 6,985,926 - - - 1,242,767 8,228,693
Charges for services 2,297,499 - 4,179,562 4,661,765 6,525,364 17,664,190
Fines and forfeitures 688,767 - - - 24,292 713,059
Rental revenues - - - - 84,425 84,425
Interest earnings 396,616 243,690 5,147 5,449 148,846 799,748
Miscellaneous revenues 101,681 41,111 - - 121,881 264,673
Total revenues 34,144,671 3,528,772 4,184,709 4,667,214 15,380,070 61,905,436
EXPENDITURES
Current operating:
Community services 21,734,723 - - - 190,446 21,925,169
Public works 4,119,250 1,917,807 - - 2,254,148 8,291,205
Community development 3,613,095 - - - 2,194,741 5,807,836
Policy and administration 787,681 - - - - 787,681
Debt service:
Principal - 494,501 - - 1,883,599 2,378,100
Interest - 90,060 - - 887,479 977,539
Capital outlay - - - - 4,705,720 4,705,720
Total expenditures 30,254,749 2,502,368 - - 12,116,133 44,873,250
Excess of revenues
over expenditures 3,889,922 1,026,404 4,184,709 4,667,214 3,263,937 17,032,186
OTHER FINANCING SOURCES(USES)
Transfer in - 150,000 - - 4,605,215 4,755,215
Transfer out (1,933,722) (846,958) (48,618) (459,786) (1,760,708) (5,049,792)
Total other financing sources(uses) (1,933,722) (696,958) (48,618) (459,786) 2,844,507 (294,577)
Net change in fund balances 1,956,200 329,446 4,136,091 4,207,428 6,108,444 16,737,609
Fund balances-beginning of the year 13,634,924 2,349,779 3,392,307 3,929,232 12,820,296 36,126,538
Fund balances-end of year $ 15,591,124 $ 2,679,225 $ 7,528,398 $ 8,136,660 $ 18,928,740 $ 52,864,147
The accompanying notes are an integral part of the basic financial statements.
35
CITY OF TIGARD,OREGON
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND
BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
for the year ended June 30,2017
Net change in fund balances-Governmental Funds $ 16,737,609
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 5,652,762
Current year depreciation expense (5,738,429)
Contributed capital 1,635,350
Loss on disposal of capital assets (348,672) 1,201,011
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds
Increase in deferred inflows of resources-property taxes 63,051
Increase in franchise fees 3,322
Decrease in municipal court receivable (24,358)
Increase in grants receivable 314,484
Decrease in assessment liens (52,146) 304,353
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 2,356,329
Reimbursement on internal loans (176)
Amortization of premium on long-term debt 21,947 2,378,100
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:
Decrease in accrued interest payable 28,649
Increase in compensated absences (37,667)
Pension expense (1,141,867)
Increase in accrued other post employment benefits(OPEB) liability (33,421) (1,184,306)
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 284,491
Change in Net Position of Governmental Activities $ 19,721,258
The accompanying notes are an integral part of the basic financial statements.
36
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
June 30,2017
Business-type Activities- Governmental
Enterprise Funds Activities-
Sanitary Internal
Sewer Stormwater Water Totals Service Funds
ASSETS
Current assets:
Cash and cash equivalents $ 5,574,969 $ 7,063,523 $ 17,586,234 $ 30,224,726 $ 2,942,648
Accounts receivable 1,730,782 553,938 2,898,949 5,183,669 38,587
Advances to other funds-Interfund loan 102,320 - - 102,320 -
Prepaids - 833 1,250 2,083 66,826
Property held for resale 185,021 260,021 - 445,042 -
Inventory 11,932 11,932 165,241 189,105 37,143
Total current assets _ 7,605,024 _ 7,890,247 20,651,674 36,146,945 3,085,204
Noncurrent assets:
Restricted cash and cash equivalents - - 17,708,763 17,708,763 -
Capital assets:
Land and construction in process 807,416 171,752 176,548,837 177,528,005 -
Other capital assets(net of
accumulated depreciation) 17,152,086 11,980,545 35,376,986 64,509,617 -
Total noncurrent assets 17,959,502 12,152,297 229,634,586 259,746,385 -
Total assets 25,564,526 20,042,544 250,286,260 295,893,330 3,085,204
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 2,299,708 264,477 1,041,434 3,605,619 436,719
Unearned revenue - - - - 15,714
Deposits - 8,833 35,258 44,091 -
Accrued interest payable - - 2,612,813 2,612,813 -
Accrued compensated absences 20,324 23,230 53,330 96,884 283,242
Current portion of bonds payable - - 2,644,356 2,644,356 -
Current portion of note payable - - 103,973 103,973 -
Total current liabilities 2,320,032 296,540 6,491,164 9,107,736 735,675
Noncurrent liabilities:
Accrued compensated absences 689 788 1,809 3,286 11,188
Note payable-long-term portion - - 1,803,034 1,803,034 -
Bonds payable-long-term portion - - 133,775,926 133,775,926
Net OPEB obligation 39,079 44,590 84,530 168,199 311,099
Total noncurrent liabilities 39,768 45,378 135,665,299 135,750,445 322,287
Total liabilities 2,359,800 341,918 142,156,463 144,858,181 1,057,962
NET POSITION
Net investment in capital assets 17,959,502 12,152,297 74,759,013 104,870,812 -
Restricted for capital projects - - 8,551,308 8,551,308 -
Restricted for debt service - - 6,836,562 6,836,562 -
Unrestricted 5,245,224 7,548,329 17,982,914 30,776,467 2,027,242
Total net position $ 23,204,726 $ 19,700,626 $ 108,129,797 $ 151,035,149 $ 2,027,242
The accompanying notes are an integral part of the basic financial statements.
37
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET POSITION
for the year ended June 30,2017
Business-type Activities- Governmental
Enterprise Funds Activities-
Sanitary Internal
Sewer Stormwater Water Totals Service Funds
OPERATING REVENUES
Charges for services $ 3,013,314 $ 3,275,083 $ 20,926,322 $ 27,214,719 $ 9,302,474
Miscellaneous revenues 81,858 3,982 184,788 270,628 297,402
Total operating revenues 3,095,172 3,279,065 21,111,110 27,485,347 9,599,876
OPERATING EXPENSES
Salaries and wages 471,145 663,690 1,148,575 2,283,410 5,324,878
Contracted services 7,575 302,836 1,785,477 2,095,888 1,027,432
General,administrative and other 1,398,509 1,253,451 3,572,453 6,224,413 3,573,741
Depreciation 718,377 518,696 1,411,940 2,649,013 -
Total operating expenses 2,595,606 2,738,673 7,918,445 13,252,724 9,926,051
Operating income(loss) 499,566 540,392 13,192,665 14,232,623 (326,175)
NON-OPERATING REVENUES(EXPENSES)
Interest earnings 5,206 6,800 94,622 106,628 24,775
Interest expense - - (343,450) (343,450) -
Intergovernmental revenue 198,519 87,005 - 285,524 -
Total non-operating revenue 203,725 93,805 (248,828) 48,702 24,775
Net income(loss)before
contributions and transfers 703,291 634,197 12,943,837 14,281,325 (301,400)
System development revenue 127,623 3,300 6,532,039 6,662,962 -
Capital contributions 304,850 403,796 298,780 1,007,426 -
Transfers in 39 85,597 58,751 144,387 586,161
Transfers out (141,577) (128,668) (165,456) (435,701) (270)
Change in net position 994,226 998,222 19,667,951 21,660,399 284,491
Net position--beginning of year 22,210,500 18,702,404 88,461,846 129,374,750 1,742,751
Net position--end of year $ 23,204,726 $ 19,700,626 $ 108,129,797 $ 151,035,149 $ 2,027,242
The accompanying notes are an integral part of the basic financial statements.
38
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
for the year ended June 30,2017
Business-type Activities- Governmental
Enterprise Funds Activities-
Sanitary Internal
Sewer Stormwater Water Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 15,683,943 $ 3,831,365 $ 20,741,795 $ 40,257,103 $ 9,283,933
Payments to suppliers (13,303,938) (2,109,858) (8,389,862) (23,803,658) (4,628,800)
Payments to employees (473,172) (665,018) (1,181,215) (2,319,405) (5,321,536)
Other receipts 81,858 3,982 184,788 270,628 299,878
Net cash provided(used)by operating activities 1,988,691 1,060,471 11,355,506 14,404,668 (366,525)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Principal collected on interfund loan 175 - - 175 -
Transfers to other funds (141,577) (128,668) (165,456) (435,701) (270)
Transfers from other funds 39 - 58,751 58,790 586,161
Net cash(used)by noncapital financing activities (141,363) (128,668) (106,705) (376,736) 585,891
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
System development revenue 127,623 3,300 6,532,039 6,662,962 -
Intergovernmental revenue 198,519 87,005 - 285,524 -
Principal payments - - (2,683,971) (2,683,971) -
Interest payments - - (344,966) (344,966) -
Acquisition of capital assets (677,021) (688,817) (13,774,425) (15,140,263) -
Net cash(used)by capital and related
financing activities (350,879) (598,512) (10,271,323) (11,220,714) -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 5,206 6,800 94,622 106,628 24,775
Net increase(decrease)in cash
and investments 1,501,655 340,091 1,072,100 2,913,846 244,141
Cash and investments--beginning of the year 4,073,314 6,723,432 34,222,897 45,019,643 2,698,507
Cash and investments--end of the year $ 5,574,969 $ 7,063,523 $ 35,294,997 $ 47,933,489 $ 2,942,648
RECONCILIATION OF OPERATING INCOME(LOSS)TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income(loss) $ 499,566 $ 540,392 $ 13,192,665 $ 14,232,623 $ (326,175)
Cash flows reported in other categories:
Depreciation expense 718,377 518,696 1,411,940 2,649,013 -
Change in assets and liabilities:
Receivables (248,532) (138,754) (190,014) (577,300) (16,065)
Prepaid expenses 640 - 640 (33,552)
Inventory 13,215 13,215 (8,967) 17,463 (5,222)
Accounts payable and accrued liabilities 1,008,092 127,610 (3,022,961) (1,887,259) 11,147
Accrued compensated absences (2,996) (2,729) (34,790) (40,515) (4,650)
Deposits 5,483 5,483 -
OPEB obligation 969 1,401 2,150 4,520 7,992
Net cash provided(used)by operating activities $ 1,988,691 $ 1,060,471 $ 11,355,506 $ 14,404,668 $ (366,525)
Non-cash capital and related financing activities:
Developer contributed sewer,stormwater and
water lines $ 304,850 $ 403,796 $ 298,780 $ 1,007,426 -
The accompanying notes are an integral part of the basic financial statements.
39
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).
CITY OF TIGARD,OREGON
STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST
June 30,2017
ASSETS
Investments:
Restricted stable value fund $ 5,246,758
Restricted corporate bonds 1,087,539
Restricted corporate stocks 21,137,982
Total assets 27,472,279
NET POSITION
Restricted for pension benefits $ 27,472,279
The accompanying notes are an integral part of the basic financial statements.
40
CITY OF TIGARD,OREGON
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST
for the year ended June 30,2017
ADDITIONS
Contributions-employer $ 1,375,848
Contributions-plan members 268,998
Investment income 2,956,439
Total additions 4,601,285
DEDUCTIONS
Benefit payments and withdrawals 1,092,561
Administrative expenses 4,840
Total deductions 1,097,401
Change in net position 3,503,884
Net position of assets held in trust for pension benefits:
Beginning of year 23,968,395
End of year $ 27,472,279
The accompanying notes are an integral part of the basic financial statements.
41
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 levies taxes. The city has two 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. In May 2017 the voters approved the creation of a second urban
renewal area, the Tigard Triangle Urban Renewal Area (TTURA), for 35 years with maximum
principal indebtedness of $188 million. The TTURA and the CCDA were 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.
The activities of the CCDA are included in the city's financial statements as a blended
component unit. The TTURA did not have any activities for the fiscal year ended June 30, 2017.
The CCDA and the TTURA are legally separate entities, which are 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 and TTURA as determined on the basis of budget adoption, taxing
authority, and funding.
The purpose of the CCDA and the TTURA 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 debt service and capital projects funds. The CCDA prepared a separate
component unit financial report, which is published on the city's website
www.CityofTigardOregon.gov or a copy can be obtained from the city's administrative offices at
13125 SW Hall Blvd, Tigard, Oregon 97223.
42
City of Tigard, Oregon
Notes to Basic Financial Statements
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.
Joint Venture
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 created 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 replaced aging, vulnerable, at-capacity infrastructure with a cutting-edge
system designed to the highest seismic resiliency standards. Final governance of the system has
yet to be decided. Currently the city's investment in the partnership is part of the Construction
in progress section of the capital assets. Once the project is complete, the city's portion of the
assets will be capitalized.
Basic Financial Statements
Basic financial statements are presented at both the government-wide and fund financial level.
Both levels of statements categorize activities as either governmental or business-type.
Governmental activities, which are normally supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support.
Government-wide financial statements display information on all of the non-fiduciary activities
of the city. 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
43
City of Tigard, Oregon
Notes to Basic Financial Statements
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, Transportation Development Tax, and Parks SDC Funds as major
funds in the current financial statements. Non-major funds are combined in a column in the
fund financial statements and detailed as supplementary information in the financial report.
Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe which transactions are recorded within the
various financial statements. Basis of accounting refers to when transactions are recorded.
The 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
44
City of Tigard, Oregon
Notes to Basic Financial Statements
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, 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.
45
City of Tigard, Oregon
Notes to Basic Financial Statements
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, services 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.
46
City of Tigard, Oregon
Notes to Basic Financial Statements
New Accounting Pronouncements and Accounting Standards
During the fiscal year ended June 30, 2017, the city implemented the following GASB
pronouncements:
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. The city implemented
this standard for the fiscal year ending June 30, 2017. See Note 12 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. 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 (OPEB), 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. 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. 83, Certain Asset Retirement Obligations
Issued November 2016, this statement addresses accounting and financial reporting for certain
asset retirement obligations. GASB 83 will be effective for the city, fiscal year ending June 30,
2019.
47
City of Tigard, Oregon
Notes to Basic Financial Statements
GASB Statement No. 84, Fiduciary Activities
Issued January 2017, this statement establishes criteria for identifying fiduciary activities of all
state and local governments. GASB 84 will be effective for the City, fiscal year ending June 30,
2020.
GASB Statement No. 85, Omnibus 2017
Issued March 2017, this Statement is to address practice issues that have been identified during
implementation and application of certain GASB Statements. This Statement addresses a
variety of topics including issues related to blending component units, good will fair value
measurement and application, and postemployment benefits (pensions and OPEB). Specifically,
this Statement addresses the following topics:
• Blending a component unit in circumstances in which the primary government is a
business-type activity that reports in a single column for financial statement
presentation
• Reporting amounts previously reported as good will and "negative" goodwill
• Classifying real estate held by insurance entities
• Measuring certain money market investments and participating interest-earning
investment contract at amortized cost
• Timing of the measurement of pension or OPEB liabilities and expenditures recognized
in financial statements prepared using the current financial resources measurement
focus
• Recognizing on-behalf payments for pensions or OPEB in employer financial statements
• Presenting payroll-related measures in required supplementary information for
purposes of reporting by OPEB plans and employers that provide OPEB
• Simplifying certain aspects of the alternative measurement method for OPEB
• Accounting and financial reporting for OPEB provided through certain multiple-
employer defined benefit OPEB plans.
GASB Statement No. 85 will be effective for the City, fiscal year ending June 30, 2018.
GASB Statement No. 86, Certain Debt Extinguishment Issues
Issued May 2017, the purpose of this Statement is to improve consistency in accounting and
financial reporting for in-substance defeasance of debt by providing guidance for transactions
in which cash and other monetary assets acquired with only existing resources-resources other
than the proceeds of refunding debt-are placed in an irrevocable trust for the sole purpose of
extinguishing debt. This Statement also improves accounting and financial reporting for prepaid
insurance on debt that is extinguished and notes to financial statements for debt that is
defeased in substance. GASB Statement No. 86 will be effective for the City, fiscal year ending
June 30, 2018.
48
City of Tigard, Oregon
Notes to Basic Financial Statements
GASB Statement No. 87, Leases
This Statement was issued June 2017 to better meet the information needs of financial
statement users by improving accounting and financial reporting for leases by governments and
increases the usefulness of governments' financial statements. Under this Statement, a lessee is
required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is
required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing
the relevance and consistency of information about governments' leasing activities. GASB
Statement No. 87 will be effective for the City for fiscal year ending June 30, 2021.
The city will implement new GASB pronouncements no later than the required effective date.
The city is currently evaluating whether or not the above listed new GASB pronouncements will
have a significant impact to the City's 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.
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.
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.
49
City of Tigard, Oregon
Notes to Basic Financial Statements
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.
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.
50
City of Tigard, Oregon
Notes to Basic Financial Statements
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, donated works of art
and similar items, and capital assets received in a service concession arrangement are recorded
at acquisition value.
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, Urban
Forestry Fund, Stormwater Fund, and Water Fund. Deposits are held by the city until the
51
City of Tigard, Oregon
Notes to Basic Financial Statements
obligations for the projects have been completed or forfeited for non-compliance with
development requirements as determined by city inspection staff.
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 follow 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.
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
52
City of Tigard, Oregon
Notes to Basic Financial Statements
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 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.
53
City of Tigard, Oregon
Notes to Basic Financial Statements
Restricted for amounts with constraints placed on the use of resources are either (1) externally
imposed by creditors (such as through debt covenants), grantors, contributors, laws or
regulations of other governments; or (2) 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 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.
54
City of Tigard, Oregon
Notes to Basic Financial Statements
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, 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.
Transportation Development Tax Fund — This capital project fund accounts for traffic
impact fees collected on roads within the city's urban service areas. Funds are used for
highways and transit capital improvements in the city's Capital Improvement Plan.
Parks System Development Charges (SDC) Fund —This capital project fund accounts for
revenues associated with the collection of Parks SDCs. 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.
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
55
City of Tigard, Oregon
Notes to Basic Financial Statements
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.
56
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 three 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, 2017, expenditures exceeded appropriations in
the Bancroft Bond debt service fund by $225. This over expenditure was due to the interest
payable accrual not being sufficiently budgeted. The over expenditure was covered by
available fund balance.
The Urban Renewal Agency Capital Projects reported a deficit fund balance $725,296 on a
GAAP basis as June 30, 2017. 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.
57
City of Tigard, Oregon
Notes to Basic Financial Statements
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 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, 2017:
Primary Fiduciary
Type Government Activities Total
State Investment Pool (LGIP) $ 82,358,681 $ - $ 82,358,681
Money markets 5,896,160 - 5,896,160
Deposits with financial institutions 9,588,549 - 9,588,549
Cash with fiscal agent 62,822 - 62,822
Petty cash/cash on hand 7,394 - 7,394
Total cash 97,913,606 - 97,913,606
U.S. Agencies 7,477,375 - 7,477,375
Collective trust/stable value fund - 5,246,758 5,246,758
Corporate bonds 503,820 1,087,539 1,591,359
Corporate stocks - 21,137,982 21,137,982
Total investments 7,981,195 27,472,279 35,453,474
Total cash and investments $ 105,894,801 $ 27,472,279 $ 133,367,080
Governmental Business Type Fiduciary
Activities Activities Activities Total
Cash and investments $ 25,217,686 $ 30,224,726 $ - $ 55,442,412
Restricted cash and investments 32,743,626 17,708,763 27,472,279 77,924,668
Total cash and investments $ 57,961,312 $ 47,933,489 $ 27,472,279 $ 133,367,080
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, 2017 was $15,484,709
58
City of Tigard, Oregon
Notes to Basic Financial Statements
and the total bank balance is $15,283,860. Of these deposits, $500,000 was covered by federal
depository insurance and $14,783,860 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 percent protection. The Office of the State Treasurer categorizes the
financial institutions in Oregon.
Based on that categorization, banks must pledge collateral valued at between 10 percent and
110 percent of their public fund deposits. In the event of a bank failure, the entire pool of
collateral pledged by all qualified Oregon public funds bank depositories is available to repay
deposits of public funds of government entities. The Office of the State Treasurer maintains a
list of qualified financial institutions for the deposit of public funds in excess of FDIC
insurance. The financial institutions holding city deposits are 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 percent of the portfolio. In addition, the policy states bank
deposits of any one qualified financial institution shall not exceed 1 percent 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.
59
City of Tigard, Oregon
Notes to Basic Financial Statements
At June 30, 2017, the city's fair value in the LGIP was $82,358,681. 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
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, 2017:
• U.S. Agencies at $7,477,375 are valued using a matrix-pricing model (Level 2).
• Corporate Bonds at $503,820 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, 2017
the total restricted investments in the pension plan were $27,472,279. 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 percent of the portfolio can
have maturities less than ninety days and up to 20 percent 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.
60
City of Tigard, Oregon
Notes to Basic Financial Statements
At June 30, 2017, the city had the following investments and maturities at fair value:
Weighted
Average
Maturity
Risk (in
Investment Type Fair Value Concentration months)
Local Government Investment Pool (LGIP) * $ 82,358,681 91% < 1
U.S. Agencies 7,477,375 8% 1.76
Corporate Bonds 503,820 1% < 1
Total investments $ 90,339,876 100%
Portfolio weighted average maturity 1.93
* 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.
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 percent
• Certificates of deposit are restricted to no more than 25 percent
• Corporate bonds are restricted to no more than 35 percent. In addition, investments in
corporate bonds of any one issuer may not exceed 5 percent 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.
61
City of Tigard, Oregon
Notes to Basic Financial Statements
At June 30, 2017 the city's investments were rated as follows:
%of Fair
Investment Type Moody's S & P Fitch Fair Value Value
State Investment Pool
(LGIP) N/R N/R N/R $ 82,358,681 91.18%
Corporate Bonds Aa2 AA A+ 503,820 0.56%
US Agency Aaa AA+ AAA 499,815 0.55%
US Agency N/R N/R N/R 500,330 0.55%
US Agency N/R AA+ N/R 998,190 1.10%
US Agency Aaa AA+ AAA 497,425 0.55%
US Agency Aaa N/R AAA 991,800 1.10%
US Agency N/R N/R N/R 998,190 1.10%
US Agency N/R N/R N/R 494,365 0.55%
US Agency N/R AA+ N/R 999,730 1.11%
US Agency Aaa AA+ N/R 998,190 1.10%
US Agency Aaa AA+ AAA 499,340 0.55%
Total investments $ 90,339,876 100.00%
At year-end, the city held the following restricted and unrestricted cash and investments:
June 30, 2017
Investments $ 7,981,195
Local Government Investment Pool 83,358,681
Deposits with financial institutions 9,588,549
Petty cash 7,394
Cash with fiscal agent 62,822
Total primary government cash and investments 105,894,801
Statement of Fiduciary Net Position - Pension Trust Fund 27,472,279
Total cash and investments $ 133,367,080
4. Accounts Receivable
Accounts receivable as of June 30, 2017 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:
62
City of Tigard, Oregon
Notes to Basic Financial Statements
Allowance
Gross for Doubtful Receivables,
Accounts Taxes Assessments Receivables Accounts Net
Governmental Activities
General $4,941,720 $671,106 $ - $5,612,826 $ (1,844,612) $ 3,768,214
Gas tax 287,728 - - 287,728 - 287,728
Transportation development tax 572 - 3,413 3,985 - 3,985
Parks SDC 776 - - 776 - 776
Nonmajor governmental 812,676 123,282 369,929 1,305,887 - 1,305,887
Internal service 38,587 - - 38,587 - 38,587
$6,082,059 $794,388 $ 373,342 $7,249,789 $ (1,844,612) $ 5,405,177
Business-Type Activities
Sanitary sewer $1,730,782 $ - $ - $1,730,782 $ - $ 1,730,782
Stormwater 553,938 553,938 - 553,938
Water 2,898,949 2,898,949 - 2,898,949
$5,183,669 $ - $ - $5,183,669 $ - $ 5,183,669
Total receivables $10,588,846
Shown on the Statement of Net Positions as:
Accounts receivable,net $ 9,421,116
Property taxes receivable 794,388
Assessment liens receivable 373,342
$10,588,846
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 percent. Accordingly, at June 30, 2017, $2,459,481 was outstanding for
municipal court receivables with a related allowance for doubtful accounts of$1,844,612.
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, 2017, the portion of the assessments receivable
balance that represents delinquent accounts is insignificant.
63
City of Tigard, Oregon
Notes to Basic Financial Statements
5. Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2017 was as
follows:
Balances Balances
Governmental activities June 30,2016 Additions Deletions Transfers June 30,2017
Non-depreciable:
Land $ 25,889,224 $ 120,000 $ - $ - $ 26,009,224
Construction in progress 3,451,257 4,276,648 (318,510) (1,788,029) 5,621,366
Total non-depreciable 29,340,481 4,396,648 (318,510) (1,788,029) 31,630,590
Depreciable:
Building and improvements 23,344,063 199,970 - - 23,544,033
Land improvements 8,760,942 - - - 8,760,942
Machinery and equipment 2,633,346 115,824 (13,802) - 2,735,368
Autos and trucks 2,689,886 398,157 (214,185) - 2,873,858
Office equipment 2,495,637 646,009 - - 3,141,646
Infrastructure 242,351,844 1,515,350 - 1,788,029 245,655,223
Total depreciable 282,275,718 2,875,310 (227,988) 1,788,029 286,711,069
Accumulated depreciation:
Building and improvements (8,368,731) (641,779) - - (9,010,510)
Land improvements (6,315,103) (562,795) - - (6,877,898)
Machinery and equipment (2,312,674) (196,043) 13,802 - (2,494,915)
Autos and trucks (1,918,836) (276,111) 184,023 - (2,010,923)
Office equipment (1,532,883) (220,770) - - (1,753,653)
Infrastructure (72,942,456) (3,840,931) - - (76,783,387)
Total accumulated depreciation (93,390,683) (5,738,429) 197,826 - (98,931,286)
Governmental activities capital
assets, net $218,225,516 $1,533,529 $(348,672) $ - $219,410,373
Depreciation expense for governmental activities is charged to functions as follows:
Community services $ 369,127
Public works 5,162,734
Community development 7,306
Policy and administration 199,262
Total depreciation for governmental activities $ 5,738,429
64
City of Tigard, Oregon
Notes to Basic Financial Statements
Capital assets activity for business-type activities for the year ended June 30, 2017, was as
follows:
Balances Balances
Business-type activities June 30, 2016 Additions Deletions Transfers June 30, 2017
Non-depreciable:
Land $ 5,237,285 $ - $ - $ - $ 5,237,285
Construction in progress 158,706,084 15,235,803 (67,443) (1,583,724) 172,290,720
Total non-depreciable 163,943,369 15,235,803 (67,443) (1,583,724) 177,528,005
Depreciable:
Building and improvements 1,879,733 - - - 1,879,733
Sewer system 28,095,809 304,850 - 477,733 28,878,392
Stormwater system 19,087,126 403,796 - 765,263 20,256,185
Water system 65,342,421 298,780 - 340,728 65,981,929
Equipment 1,798,279 57,500 - - 1,855,779
Autos and trucks 1,796,998 - - - 1,796,998
Total depreciable 118,000,366 1,064,926 - 1,583,724 120,649,016
Accumulated depreciation:
Building and improvements (1,146,119) (45,414) - - (1,191,533)
Sewer system (11,182,326) (654,864) - - (11,837,190)
Stormwater system (8,231,339) (490,917) - - (8,722,256)
Water system (29,764,219) (1,321,376) - - (31,085,595)
Equipment (1,554,515) (86,470) - - (1,640,985)
Autos and trucks (1,611,868) (49,972) - - (1,661,840)
Total accumulated depreciation (53,490,386) (2,649,013) - - (56,139,399)
Business-type activities capital
assets, net $228,453,349 $13,651,716 $(67,443) $ - $242,037,622
Total interest costs incurred in business-type activities in fiscal year ended June 30, 2017 was
$6,262,339, of which $5,364,347 was capitalized to construction in progress for the Lake
Oswego-Tigard water partnership project.
Depreciation expense for business-type activities is charged to activities as follows:
Sanitary sewer $ 718,377
Stormwater 518,696
Water 1,411,940
Total depreciation for business-type activities $ 2,649,013
65
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 percent to 4.0 percent on specific maturities.
At June 30, 2017 the outstanding balance on the 2011B bonds was $4,820,000.
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 percent of the bond proceeds went
towards land acquisition for open spaces, parks or trail corridors with up to 20 percent
towards improvements and development of park land. Interest rates range from 3.0 percent to
4.75 percent on specific maturities. At June 30, 2017, the outstanding balance on the bonds
was $13,280,000 and the balance of the unamortized premium was $170,137.
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 percent. At June 30, 2017 the
outstanding balance on the bonds was $2,405,000.
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
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 1,695,000 502,925 2,197,925
2023-2027 5,640,000 1,729,300 7,369,300
2028-2031 4,615,000 558,051 5,173,051
$ 20,505,000 $ 5,634,970 $ 26,139,970
Premium 170,137
Total $ 20,675,137
66
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 percent;
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, 2017 was $213,219 with principal and
interest payments as follows:
Year Ending
June 30, Principal Interest Total
2018 $ 89,200 $ 13,866 $ 103,066
2019 95,800 7,279 103,079
2020 28,219 1,021 29,240
Total $ 213,219 $ 22,166 $ 235,385
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 percent. 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, 2017, the
balance outstanding on the bank loan was $1,040,000. Future principal and interest payments
on the loan are as follows:
Year Ending
June 30, Principal Interest Total
2018 $ 130,000 $ 28,980 $ 158,980
2019 130,000 25,118 155,118
2020 780,000 11,681 791,681
Total $ 1,040,000 $ 65,779 $ 1,105,779
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, 2017 the net
book value of the equipment is $14,179 ($71,091 less $56,912 of accumulated depreciation).
The outstanding balance on the capital lease at June 30, 2017 is $15,472 and has an effective
interest rate of 4.4 percent.
67
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
2018 $ 15,472 $ 683 $ 16,155
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 percent constituting an ARRA Forgivable Loan and 50 percent a low-interest loan
under the Safe Drinking Water Revolving Loan Fund program. These ARRA funds were used to
develop a city water reservoir. In fiscal year 2011-2012 the city drew down the funds that are
considered the loan portion. The interest rate on the note payable is 3.0 percent. At June 30,
2017, the balance on the note payable was $1,907,007. Future debt service requirements are
as follows:
Year Ending
June 30, Principal Interest Total
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 117,022 44,161 161,183
2023-2027 639,927 165,989 805,916
2028-2032 715,074 64,065 779,139
Total $ 1,907,007 $ 483,963 $ 2,390,970
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
68
City of Tigard, Oregon
Notes to Basic Financial Statements
from 3.0 percent to 5.0 percent. At June 30, 2017, the balance of the 2012 water revenue
bonds was $95,850,000 and the balance of the unamortized premium was $5,850,817.
In fiscal year 2014-2015 the city issued $30,810,000 of water revenue bonds with interest rates
from 3.0 percent to 5.0 percent. 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, 2017, the balance of the 2015 water revenue bonds was $30,650,000 and the balance of
the unamortized premium was $4,069,463.
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. Net system
revenues for fiscal year 2017 were $14,402,173 as compared to the total debt service of
$8,232,100. The computation of water revenue bonds debt coverage is noted in the statistical
section of this document on page 179. Interest rates on the bonds range from 3 percent to 5
percent 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
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 2,465,000 5,765,150 8,230,150
2023-2027 14,140,000 27,012,700 41,152,700
2028-2032 18,095,000 23,051,725 41,146,725
2033-2037 23,215,000 17,931,875 41,146,875
2038-2042 29,815,000 11,335,875 41,150,875
2043-2046 29,840,000 3,077,250 32,917,250
126,500,000 $ 112,164,775 $ 238,664,775
Premium 9,920,282
Total $ 136,420,282
69
City of Tigard, Oregon
Notes to Basic Financial Statements
Long-term debt activity, including compensated absences, for the year ended June 30, 2017
was as follows:
Balances June Balances June Due in one
30, 2016 Additions Retirements 30, 2017 year
Governmental activities
Bonds payable $ 22,862,084 $ - $ 2,186,947 $ 20,675,137 $ 2,255,840
Special assessment debt 296,319 - 83,100 213,219 89,200
Bank loan payable 1,170,000 - 130,000 1,040,000 130,000
Capital lease 30,290 - 14,818 15,472 15,472
Total debt 24,358,693 - 2,414,865 21,943,828 2,490,512
Other long-term liabilities
Compensated absences 1,299,480 1,786,625 1,753,608 1,332,497 1,279,197
Governmental activities $ 25,658,173 $ 1,786,625 $ 4,168,473 $ 23,276,325 $ 3,769,709
Business-type activities
Note payable $ 2,007,952 $ - $ 100,945 $ 1,907,007 $ 103,973
Bonds payable 139,003,308 - 2,583,026 136,420,282 2,644,356
Total debt 141,011,260 - 2,683,971 138,327,289 2,748,329
Other long-term liabilities
Compensated absences 140,684 154,775 195,289 100,170 96,884
Business-type activities $ 141,151,944 $ 154,775 $ 2,879,260 $ 138,427,459 $ 2,845,213
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.
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, 2017
are as follows:
Net
Receivable Fund Payable Fund Amount Elimination Balance
General Fund Nonmajor governmental fund $ 655,112 $ (655,112) $ -
Sanitary Sewer Fund Nonmajor governmental fund 102,320 - 102,320
$ 757,432 $ (655,112) $ 102,320
70
City of Tigard, Oregon
Notes to Basic Financial Statements
Future maturities on the interfund loans are as follows:
Interfund Loans Elimination Net Balance
Year Ending
June 30, Principal Interest Principal Interest Principal Interest
2018 $ - $ 3,932 $ - $ (3,420) $ - $ 512
2019 - 3,932 - (3,420) - 512
2020 - 3,932 - (3,420) - 512
2021 - 3,932 - (3,420) - 512
2022 - 3,932 - (3,420) - 512
2023-2027 137,473 19,258 (107,311) (16,851) 30,162 2,408
2028-2032 377,430 12,182 (326,147) (10,888) 51,284 1,294
2033-2036 242,529 2,704 (221,655) (2,548) 20,874 157
$ 757,432 $53,802 $(655,112) $(47,386) $102,320 $6,416
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,
2017 are as follows:
Gas Tax Non-Major Internal Total
Fund Fund Govt'I Fund Service Sewer Storm Water Transfers Out
General $ - $1,755,890 $150,372 $ - $ - $ 27,460 $ 1,933,722
Gas Tax - 842,251 4,707 - - - 846,958
Trans Dev Tax - 25,425 23,193 - - - 48,618
Parks SDC - 443,624 16,163 - - - 459,786
Nonmajor 150,000 1,408,952 201,748 8 - - 1,760,708
Internal Service - - 270 - - - 270
Sanitary Sewer - 18,740 23,827 - 85,597 13,413 141,577
Stormwater - 106,359 4,400 32 - 17,878 128,668
Water - 3,975 161,481 - - - 165,456
Total Transfers In $150,000 $4,605,215 $586,161 $ 39 $85,597 $ 58,751 $ 5,485,764
Reconciliation: Transferred to governmental funds from:
Sewer Fund $ 42,568
Stormwater Fund 110,759
Water Fund 165,456
Transferred from governmental funds to enterprise funds:
From General Fund to Water Fund (27,460)
From Non-major funds to Sewer Fund (8)
Total transfers per Statement of Activities $291,314
These transfers have been eliminated in the government-wide statement of activities other
than the net effect between governmental activities and business-type activities.
71
City of Tigard, Oregon
Notes to Basic Financial Statements
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 October 27, 2017, 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:
Annual Required Contribution (ARC) $ 254,854
Interest on prior year net OPEB contribution 61,440
Adjustment to ARC (211,073)
Annual OPEB cost 105,221
Implicit benefit payments (59,288)
Increase in net OPEB obligation 45,933
Net OPEB obligation - beginning of the year 1,755,416
Net OPEB obligation - end of the year $ 1,801,349
72
City of Tigard, Oregon
Notes to Basic Financial Statements
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:
% of Annual
Year Ended Annual OPEB Cost Net OPEB
June 30, OPEB Cost Contributed Obligation
2015 $ 305,940 27% $1,612,873
2016 225,365 37% 1,755,416
2017 105,221 56% 1,801,349
Funding Status and Funding Progress
As of July 1, 2016, 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 $1,352,640 and
also equaled the unfunded actuarial liability (UAAL).
Schedule of Funding Progress:
Actuarial Actuarial Actuarial Unfunded UAAL as a
Valuation Value of Accrued Liability Funded Covered %of
Date Plan Assets Liability (UAAL) Ratio Payroll Payroll
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%
07/01/16 - 1,352,640 1,352,640 0% 20,965,767 6.5%
The plan's actuarial valuation involves estimates of amounts and assumptions about the
probability of events far into the future, such as, future employment, mortality and healthcare
cost trends. Amounts determined about the funding status of the plan and the annual required
contributions are subject to periodic revision as actual results for each period are compared
with past expectations and new assumptions are made about the future.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan and
include the health benefits provided at the time of each valuation and the historical pattern of
sharing of benefit costs between the city and plan members. The actuarial methods and
assumptions include techniques that are designed to reduce the effects of short-term volatility
in actuarial results consistent with the long term perspective of the calculations.
73
City of Tigard, Oregon
Notes to Basic Financial Statements
In the July 1, 2016 valuation, the entry age normal cost method was used. With this method
the present value of benefits is allocated over the service for each active employee from their
date of hire to their expected retirement age, as a level percent of the employee's pay. The
investment return for the city was assumed to be 3.50 percent 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 2020 when the city's plan may be subject to a 40
percent 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
7.00 percent in the first year. In future years, the medical and vision cost trend varies between
7.50 percent and 5.00 percent due to the timing of the excise tax scheduled to affect health
care benefits beginning in 2020. The health care trend then settles to an ultimate rate of 5.00
percent. Dental premium increases were assumed to increase 4.50 percent in all future years.
A general inflation rate of 2.75 percent 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/Financials/Actuarial-Financial-Information.aspx
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
74
City of Tigard, Oregon
Notes to Basic Financial Statements
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:
Year ended RHIA
June 30, Contributions
2015 $ 32,789
2016 32,500
2017 31,820
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/Financials/Actuarial-Financial-Information.aspx
75
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 percent 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
76
City of Tigard, Oregon
Notes to Basic Financial Statements
to changes in the market value of equity investments. Under ORS 238.360 monthly benefits
are adjusted annually through cost-of-living changes. The COLA is capped at 2.0 percent.
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 percent is multiplied by the number of years
of service and the final average salary. 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. The COLA is capped at 2.0 percent.
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.
77
City of Tigard, Oregon
Notes to Basic Financial Statements
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 percent for Tier One/Tier Two police members and 9.99 percent for OPSRP
Pension Program Police member. The city's total contributions exclusive of the 6 percent "pick-
up" was $795,869.
Covered employees are required to contribute 6 percent 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 percent "pick-up" or
$375,425 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, 2017, the city reported a liability of $11,216,998 for its proportionate share of the
OPERS net pension liability. The net pension liability was measured as of June 30, 2016, and
the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of December 31, 2014 rolled forward to June 30, 2016. 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, 2016, the city's proportion of OPERS net
pension liability was 0.0747 percent.
78
City of Tigard, Oregon
Notes to Basic Financial Statements
Annual Pension Cost
For the year ended June 30, 2017, the city recognized pension expense of$6,191,936. At June
30, 2017, the city reported deferred outflows or resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Differences between expected and actual experience $ 371,107 $ -
Changes of assumptions 2,392,316 -
Net difference between projected and actual earnings on investments 2,216,008 -
Changes in proportion 99,052 364,426
Differences between employer contributions and proportionate share
of contributions 54,250 74,840
Total (prior to post-MD contributions) 5,132,733 439,266
Contributions subsequent to the MD 795,869 -
Total $5,928,602 $439,266
Deferred outflows of resources related to pensions of $795,869 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:
Deferred Outflows Deferred Inflows
Amortization Period Amortization Period
FY2017 $ 941,041 FY2017 $ 106,761
FY2018 941,041 FY2018 106,761
FY2019 1,754,870 FY2019 106,761
FY2020 1,313,115 FY2020 93,557
FY2021 182,666 FY2021 25,426
Total $5,132,733 Total $ 439,266
79
City of Tigard, Oregon
Notes to Basic Financial Statements
Actuarial Methods and Assumptions
The total pension liability in the December 31, 2014 actuarial valuation was determined using
the following actuarial methods and assumptions:
Valuation Date December 31, 2014
Measurement Date June 30, 2016
Experience Study Report 2014, published September 2015
Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:
Inflation Rate 2.50 percent
Long-Term Expected Rate of Return 7.50 percent
Discount Rate 7.50 percent
Proiected Salary Increases 3.50 percent overall payroll growth
Cost of Living Adjustments (COLA) Blend of 2.00% COLA and graded COLA (1.25%/0.15%) in
accordance with Moro decision, blend based on service
Health retirees and beneficiaries: RP-2000 Sex-distinct,
generational per Scale BB, with collar adjustments and set-backs
as described in the valuation.
Mortality 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 (70% for
males, 95% for females) of the RP-2000 Sex-distinct generational
per Scale BB, disabled mortality table.
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 2015 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
80
City of Tigard, Oregon
Notes to Basic Financial Statements
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.
Compounded
Target Annual Return
Asset Class Allocation (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 Equities 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%
Tota I 100.00%
Assumed Inflation - Mean 2.50%
Changes in Plan Provisions During the Measurement Period
At its September 25, 2015 meeting, the OPERS Board reduced the assumed rate of return on
investments from 7.75 percent to 7.50 percent.
On July 28, 2017, subsequent to the June 30, 2016 measurement date, the OPERS Board
lowered the assumed earnings rate from 7.50 percent to 7.20 percent. The new assumed
earnings rate will affect rates that go into effect on July 1, 2019. The effect on the City has not
been determined.
Discount Rate
The discount rate used to measure the total pension liability was 7.50 percent 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
81
City of Tigard, Oregon
Notes to Basic Financial Statements
pension plan's fiduciary net position was 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 7.50 percent, 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 (6.50 percent) or 1-percentage-point higher (8.50 percent)
than the current rate:
1% Decrease Discount Rate 1% Increase
(6.50%) (7.50%) (8.50%)
City's proportionate share of
the net pension liability $ 18,111,712 $ 11,216,998 $ 5,454,224
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:
http://www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.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, 2017:
Classification of eligible employees Enrollment
Represented (SEIU) employees 73
Management employees 114
Police (non-sworn) employees 16
Total enrolled employees 203
82
City of Tigard, Oregon
Notes to Basic Financial Statements
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 contribute to these plans under authority of City Council resolution and
the plan documents. Employees may also contribute to these plans. Required and actual
contributions to the plan were $1,375,848 for the year ended June 30, 2017.
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, 2017, the total net position of the pension
plan was $27,472,279, 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. Tax Abatements
As of June 30, 2017, the city provides property tax abatements through three programs. An
Enterprise Zone program, a Non-Profit Corporation Low-Income Housing program and a
Vertical Housing Development Zone program.
Enterprise Zone
The city's Enterprise Zone (EZ) is authorized by Oregon Revised Statute (ORS) 285C.050 —
285C.250, the Oregon Enterprise Zone Act (the Act). The city created the Tigard EZ through
Resolution No. 14-51. This resolution was approved by City Council on October 28, 2014. The
83
City of Tigard, Oregon
Notes to Basic Financial Statements
city subsequently expanded the EZ to include a portion of the City of Lake Oswego via
Resolution No. 15-48 on October 27, 2015, and renamed the EZ the Tigard/Lake Oswego
Enterprise Zone. ORS 285C.255 defines the sunset of all enterprise zone programs, terminating
existing programs as of June 30, 2025.
The City of Tigard elected to add the following additional incentives and requirements to its
program:
• Fast tracking the land use review process.
• Pre-application conference fees, business registration fees, and sign permit fee are
waived by 50 percent.
• City Council may extend the standard exemption by up to two more years if a qualifying
company increases employment by 10 percent each year and new jobs are
compensated (wages plus benefits) at 200 percent of Oregon Minimum Wage.
• A minimum investment of$500,000 is required.
• Total compensation for 75 percent of company's EZ facility jobs (wages plus benefits)
must exceed 200 percent of Oregon minimum wage after one year of employment.
• A company must provide benefits to employees that meet or exceed the national
average of non-mandated benefits for the size of the company, and the company must
offer sufficient training and advancement opportunities for all employees.
• A procurement plan increasing purchasing with Tigard based companies is required.
• An application fee totaling one tenth of one percent (.001) of the value of the
investment for the qualified property that is proposed in the application. This fee is
capped at $25,000.
• Companies applying for the two year extended abatement must pay a community
service fee. This fee is calculated at a rate of 20 percent of the abated taxes for years
four and five. The fee is paid to the city.
Applications are reviewed by the city and by the county assessor. Review includes a
preauthorization consultation and a review of written application materials. For approved
applications, City Council may adopt a resolution finding that: the business is eligible for the
exemption under the Act, the size of the proposed investment meets requirements, the
employment opportunities provide by the facility or firm and/or the nature of the activities
undertaken by the facility or firm within the EZ will significantly enhance the local economy,
and the activities of the facility or firm will promote the purposes for which the zone was
created and increase employment within the zone.
Taxes are abated via an exemption of assessed value from all applicable tax levies. These taxes
are abated for a period of three tax years, beginning with the first year the property is placed
in service. Applicable tax levies include the permanent rate levies and operating levies for all
taxing districts that include the property. Additionally, any community service fees received by
the city from participating businesses are restricted for use on economic development
activities.
84
City of Tigard, Oregon
Notes to Basic Financial Statements
Recipients of the EZ tax abatement make commitments to the city in their application in a
number of areas, including statutory requirements for an increase in full-time employment of
10 percent, no concurrent job losses in Oregon within 30 miles of the EZ, maintenance of
employment levels during the exemption period, and first-source agreements with local job
training providers.
For the fiscal year ended June 30, 2017, the city's property tax revenues were reduced by an
estimated $1,000 as a result of the EZ program. For the fiscal year ended June 30, 2017, the
Tigard Urban Renewal's property tax revenues were reduced by an estimated $20 as a result of
the EZ program.
If necessary, abated taxes can be reassessed for reasons defined in ORS 285C.240. Reasons for
reassessment include; sale of a qualifying business or subject property outside of the EZ,
reduction in business operations and/or closure of a business, failure of a business to meet
statutory or city requirements, and/or if they use the property for ineligible activities. At
disqualification, the county assessor will assess any previously abated taxes in a subsequent
assessment year, less any amounts that have been paid to the city as a community service fee.
Non-Profit Low Income Housing Limited Tax Exemption
The city's Non-Profit Low Income Housing Limited Tax Exemption (NPLTE) program is
authorized by ORS 307.540-548. In 1996, the city's NPLTE program was established by Tigard
Municipal Code 3.50, Non-Profit Corporation Low-Income Housing, Ordinance No. 96-34.
The program allows exemption from property taxes for non-profit corporations owning a low-
income housing facility that meet specific criteria. The criteria include:
• The property is owned or being purchased by a corporation that is exempt from income
taxes under section 501(c) (3) or (4) of the Internal Revenue Code as amended before
December 1, 1984.
• Upon liquidation, the assets of the corporation are required to be applied first in
payment of all outstanding obligations, and the balance remaining, in cash and in kind,
to be distributed to corporations exempt from taxation and operated exclusively for
religious, charitable, scientific, literary or educational purposes or to the State of
Oregon.
• The property is occupied by low-income persons.
• The property or portion of the property receiving the exemption, is actually and
exclusively used for the purposes described in section 501(c) (3) or (4) of the Internal
Revenue Code as amended before December 1, 1984.
• The application for exemption has been approved by the City Council.
To qualify for the exemption the corporation shall file an application for exemption with the
governing body for each assessment year of exemption. The application shall be filed on or
85
City of Tigard, Oregon
Notes to Basic Financial Statements
before March 1, of the assessment year for which the exemption is applied for, except that
when the property designated is acquired after March 1 and before July 1, the claim for that
year shall be filed within 30 days after the date of acquisition.
For the fiscal year ended June 30, 2017, the city's property tax revenues were reduced by an
estimated $33,000 as a result of this program. For fiscal year ended June 30, 2017 the Tigard
Urban Renewal's property tax revenues were reduced by an estimated $1,000 as a result of
this program.
Vertical Housing Development Zone
The city's Vertical Housing Development Zone (VHDZ) tax exemption program is authorized by
ORS 285C.450 to 285C.480 and 307.864. This ORS allows municipalities to create special
districts to encourage mixed-use development. In 2014, the city passed Resolution No. 14-38
establishing this program. VHDZ allows for partial exemption from property taxes for mixed
use multi-story development in core areas of the city. VHDZ encourages development which
supports downtown revitalization. Areas identifies for this program include Tigard's Town
Center and parts of the Tigard Triangle. This exemption allows for a decrease in total property
tax for new construction of 20 percent per floor; exemption applies to new construction on the
first four floors of residential development built above a non-residential ground floor.
Taxes are abated via an exemption of assessed value from applicable tax levies for a period of
10 successive years, beginning in the year following the year the project was completed and
would have otherwise been added to the tax rolls.
For the fiscal year ended June 30, 2017, the city's property tax revenues were reduced by an
estimated $1,000 as a result of this program. For the fiscal year ended June 30, 2017 the Tigard
Urban Renewal's property tax revenues were reduced by an estimated $30 as a result of this
program.
For the fiscal year ended June 30, 2017, the city abated property taxes totaling $35,000 under
the three programs. For fiscal year ended June 30, 2017, the Tigard Urban Renewal's abated
property taxes totaling $1,050 under the three programs.
FY 2017 Taxes Abated
Tigard Urban
Tax Abatement Program City of Tigard Renewal
Enterprise Zone $ 1,000 $ 20
Non-Profit Low Income Housing Limited Tax Exemption 33,000 1,000
Vertical Housing Development Zone 1,000 30
Total $ 35,000 $ 1,050
86
City of Tigard, Oregon
Notes to Basic Financial Statements
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 16.45 percent of sewer service charges collected, 3.98 percent of sewer connection
charges collected and 75 percent of stormwater service charges collected, in accordance with
an agreement between the city and Clean Water Services. During fiscal year 2017 the city paid
$13,614,197 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.
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. Tigard/Lake Oswego Water Infrastructure Joint Venture
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 created 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 replaced 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 multi-year project was nearly completed by the end of fiscal year
2017. As of June 30, 2017, the city had approximately $500,000 outstanding for construction
costs on the intergovernmental agreement with Lake Oswego. This amount will be paid in
fiscal year 2018 with unspent bond proceeds. Upon project completion, the city anticipates
capitalizing its portion of the assets. The parties to the IGA are operating as a joint venture.
The city has kept its water revenues and operating expenses separate.
87
City of Tigard, Oregon
Notes to Basic Financial Statements
16. Commitments
The City of Tigard has entered into one contract for pavement rehabilitation for total of
$993,489. This contract will be completed during the first half of fiscal year 2018. 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 percent 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, 2017 the city has paid $800,000 under the contract with the following remaining payment
terms:
Year ending Payment
June 30 Amount Due
2018 600,000
Total $ 600,000
17. 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.
18. Subsequent Events
In August 2017 the city amended the Municipal Code to impose a local transient lodging tax
(TLT) of 2.5 percent. This tax is in addition to the state-wide tax of 1.8 percent. The state of
Oregon and its cities, counties and regional governments have the authority to impose and
collect taxes on paid overnight stays at lodging properties such as hotels, motels, resorts, inns,
bed & breakfasts or short-term home rentals. The 2.5 percent tax by the city is estimated to
generate approximately $625,000 in additional revenue. Per state requirements, at least 70
percent of any revenue generated by a net increase in the TLT rate would be required to be
allocated for tourism promotion or tourism-related purposes.
88
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Required Supplementary
Information
CITY OF TIGARD,OREGON
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Taxes $ 14,762,850 $ 14,762,850 $ 14,795,445 $ 32,595
Licenses and permits 3,375,552 3,375,552 2,991,946 (383,606)
Intergovernmental revenues 5,809,893 5,784,415 6,985,926 1,201,511
Charges for services 2,568,504 2,568,504 2,297,499 (271,005)
Fines and forfeitures 807,789 807,789 688,767 (119,022)
Franchise fees 6,112,431 6,112,431 5,886,791 (225,640)
Interest earnings 103,722 103,722 393,195 289,473
Miscellaneous revenues 56,432 88,477 101,681 13,204
Total revenues 33,597,173 33,603,740 34,141,250 537,510
EXPENDITURES
Community services 23,203,766 23,252,920 21,734,723 1,518,197
Public works 4,289,438 4,391,438 4,119,250 272,188
Community development 3,795,043 3,827,643 3,613,095 214,548
Policy and administration 838,199 838,199 787,681 50,518
Total expenditures 32,126,446 32,310,200 30,254,749 2,055,451
Change in fund balance before
other financing sources(uses) 1,470,727 1,293,540 3,886,501 2,592,961
OTHER FINANCING SOURCES(USES)
Transfer in 54,125 54,125 - (54,125)
Repayment of interfund loan - - 3,492 3,492
Transfer out (1,845,439) (1,985,299) (1,933,722) 51,577
Contingency (1,173,000) (926,140) - 926,140
Reserve for future expenditures (9,627,881) (9,627,881) - 9,627,881
Total other financing(uses) (12,592,195) (12,485,195) (1,930,230) 10,554,965
Change in fund balance (11,121,468) (11,191,655) 1,956,271 13,147,926
Fund balance-beginning of the year 11,121,468 11,191,655 12,979,741 1,788,086
Fund balance-end of the year $ - $ - 14,936,012 $ 14,936,012
Interfund loans are treated as reimbursements on a budgetary
basis and as receivables on a GAAP basis 655,112
Fund balance-GAAP basis $ 15,591,124
89
CITY OF TIGARD,OREGON
GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
State gas tax $ 2,912,205 $ 2,912,205 $ 2,964,086 $ 51,881
County gas tax 191,494 191,494 186,222 (5,272)
Licenses and permits 14,974 68,974 93,663 24,689
Interest earnings 55,732 55,732 243,690 187,958
Miscellaneous revenues 62,818 62,818 41,111 (21,707)
Total revenues 3,237,223 3,291,223 3,528,772 237,549
EXPENDITURES
Public works 2,243,370 2,297,370 1,917,807 379,563
*Debt service:
Principal 475,248 475,248 494,501 (19,253)
Interest 109,313 109,313 90,060 19,253
Total expenditures 2,827,931 2,881,931 2,502,368 379,563
Change in fund balance before
other financing sources(uses) 409,292 409,292 1,026,404 617,112
OTHER FINANCING SOURCES(USES)
Transfer in 150,000 150,000 150,000 -
Transfer out (1,024,281) (1,035,081) (846,958) 188,123
Contingency (200,000) (200,000) - 200,000
Reserve for future expenditures (1,315,104) (1,315,104) - 1,315,104
Total other financing(uses) (2,389,385) (2,400,185) (696,958) 1,703,227
Change in fund balance (1,980,093) (1,990,893) 329,446 2,320,339
Fund balance-Beginning of the year 1,980,093 1,990,893 2,349,779 358,886
Fund balance-End of the year $ - $ - $ 2,679,225 $ 2,679,225
* Budget appropriation is made at the debt service program level
90
CITY OF TIGARD,OREGON
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
BUDGET TO GAAP RECONCILIATION
for the year ended June 30,2017
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:
General
Fund
Net change in fund balance-budget basis $ 1,956,271
Budgeted expenditures not qualifying as expenditures or other financing sources under GAAP:
Interfund loans are treated as transfers on a budgetary basis.Such expenditures are
reclassified as receivables on a GAAP basis.
Repayment on internal loans (71)
Net change in fund balance-GAAP basis $ 1,956,200
91
City of Tigard Oregon
Schedule of the City's Proportionate Share of the Net Pension Liability (Asset)
Oregon Public Employees Retirement System
Last Four Fiscal Years',2
2017 2016 2015 2014
City's proportion of the net pension liability
(asset) 0.081488% 0.081488% 0.074022% 0.074022%
City's proportionate share of the net pension
liability(asset) $ 11,216,998 $ 4,678,602 $(1,677,869) $ 3,777,455
City's covered-employee payroll $ 6,610,002 $ 6,187,208 $ 6,025,900 $ 5,426,379
City's proportionate share of the net pension
liability(asset)as a percentage of its covered-
employee payroll 169.70% 75.62% -27.84% 69.61%
[hide row] Total Pension Liability 77,094.4 70,665.1 63,134.8 63,582.1
[hide row] Plan Fiduciary Net Position 62,082.1 64,923.6 65,401.5 58,478.9
Plan fiduciary net position as a percentage of
the total pension liability 80.53% 91.88% 103.59% 91.97%
110-year trend information required by GASB Statement 68 will be presented prospectively
2 Amounts presented are for the measurement period reported during the fiscal year, which for FY 2017 is July 1,
2015 -June 30. 2016.
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.
Change in Assumptions
The PERS Board adopted assumption changes that were used to measure the June 30, 2016 total pension
liability, which contributs to the net pension liability reported by the city for fiscal year 2017. The changes include
lowering the long-term expected rate of return to 7.50 percent and lowering the assumed inflation to 2.50
percent. In addition, the healthy mortality assumption was changed to reflect an updated mortality improvement
scale for all groups, and assumptions were updated for merit increases, unused sick leave, and vacation pay.
92
City of Tigard, Oregon
Schedule of the City's Contributions
Oregon Public Employees Retirement System
Last Four Fiscal Years'
2017 2016 2015 2014
Contractually required contributions $ 787,306 $ 761,228 $ 782,812 $ 722,108
Contributions in relation to the contractually
required contribution (787,306) (761,228) (782,812) (722,108)
Contribution deficiency(excess)
City's covered-employee payroll $ 6,280,408 $ 6,610,002 $ 6,187,208 $ 6,025,900
Contributions as a percentage of covered-
employee payroll 12.54% 11.52% 12.65% 11.98%
1 10-year trend information required by GASB Statement 68 will be presented prospectively
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
93
No content appears on this page by design.
Other Supplementary
Information
CITY OF TIGARD,OREGON
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30,2017
Special Debt Service Capital Project
Revenue Funds Funds Funds Total
ASSETS
Cash and investments $ 1,618,476 $ - $ 2,972,069 $ 4,590,545
Accounts receivable 288,147 - 514,482 802,629
Property taxes receivable - 123,282 - 123,282
Assessment liens receivable - 369,929 - 369,929
Interest receivable - 10,047 - 10,047
Prepaids 16,485 - 6,940 23,425
Restricted cash and investments 7,561,979 1,329,210 7,641,634 16,532,823
Total assets $ 9,485,087 $ 1,832,468 $ 11,135,125 $ 22,452,680
LIABILITIES
Accounts payable and accrued liabilities $ 516,856 $ - $ 787,015 $ 1,303,871
Deposits 493,682 - - 493,682
Due to others 176,493 - - 176,493
Advances from other funds - - 757,432 757,432
Unearned revenue 59,660 - - 59,660
Total liabilities 1,246,691 - 1,544,447 2,791,138
DEFERRED INFLOWS OF RESOURCES
Resources not yet available:
Property taxes - 122,873 - 122,873
Special assessment liens - 369,929 240,000 609,929
Total deferred inflows of resources - 492,802 240,000 732,802
FUND BALANCES
Non-spendable:
Prepaids 16,485 - - 16,485
Restricted for:
Street maintenance and improvements - - 4,634,400 4,634,400
Debt service - 1,339,666 - 1,339,666
Park development and improvements - - 2,272,522 2,272,522
Underground utilities - - 110,143 110,143
Building inspection 4,519,413 - - 4,519,413
Police services 216,517 - - 216,517
Library improvements 477,966 - - 477,966
Committed for:
Street maintenance and improvements 1,083,367 - 2,042,134 3,125,501
Urban forestry 1,216,337 - - 1,216,337
Assigned to:
City facilities - - 1,016,775 1,016,775
Park and recreation 708,311 - - 708,311
Unassigned - - (725,296) (725,296)
Total fund balances 8,238,396 1,339,666 9,350,678 18,928,740
Total liabilities,deferred inflows of
resources and fund balances $ 9,485,087 $ 1,832,468 $ 11,135,125 $ 22,452,680
94
CITY OF TIGARD,OREGON
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
for the year ended June 30,2017
Special Debt Service Capital Project
Revenue Funds Funds Funds Total
REVENUES
Taxes $ 844,866 $ 2,758,302 $ - $ 3,603,168
Special assessments - 52,146 - 52,146
Licenses and permits 3,577,181 - - 3,577,181
Intergovernmental revenues 68,799 - 1,173,968 1,242,767
Charges for services 1,153,559 - 5,371,805 6,525,364
Rental revenues - - 84,425 84,425
Fines and forfeitures 24,292 - - 24,292
Interest earnings 71,040 62,088 15,718 148,846
Miscellaneous revenues 44,707 - 77,174 121,881
Total revenues 5,784,444 2,872,536 6,723,090 15,380,070
EXPENDITURES
Community services 190,446 - - 190,446
Public works 2,254,148 - - 2,254,148
Community development 2,161,660 - 33,081 2,194,741
Debt service:
Principal 260,499 1,623,346 - 1,883,845
Interest 47,400 840,079 - 887,479
Capital outlay - - 4,705,720 4,705,720
Total expenditures 4,914,153 2,463,425 4,738,801 12,116,379
Changes in fund balance before
other financing sources(uses) 870,291 409,111 1,984,289 3,263,691
OTHER FINANCING SOURCES(USES)
Transfer in 1,777,714 - 2,827,501 4,605,215
Transfer out (425,171) (515,500) (819,791) (1,760,462)
Total other financing sources(uses) 1,352,543 (515,500) 2,007,710 2,844,753
Changes in fund balance 2,222,834 (106,389) 3,991,999 6,108,444
Fund Balance-Beginning of the year 6,015,562 1,446,055 5,358,679 12,820,296
Fund Balance-End of the year $ 8,238,396 $ 1,339,666 $ 9,350,678 $ 18,928,740
95
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.
No content appears on this page by design.
CITY OF TIGARD,OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
June 30,2017
City Gas Electrical Criminal
Tax Inspection Building Forfeiture
_Fund Fund Fund Fund
ASSETS
Cash and investments $ 924,727 $ - $ - $ -
Accounts receivable 158,640 54 913 -
Prepaids - - 16,485 -
Restricted cash and investments - 337,196 4,773,111 256,140
Total assets $ 1,083,367 $ 337,250 $ 4,790,509 $ 256,140
LIABILITIES
Accounts payable $ - $ 969 $ 402,629 $ -
Due to others - 603 136,267 39,623
Deposits - 24,702 26,691 -
Unearned revenue - - - -
Total liabilities - 26,274 565,587 39,623
FUND BALANCE
Non-spendable:
Prepaids - - 16,485 -
Restricted for:
Building inspection - 310,976 4,208,437 -
Police services - - - 216,517
Library improvements - - - -
Committed for:
Street maintenance and improvements 1,083,367 - - -
Urban forestry - - - -
Assigned for:
Park and recreation - - - -
Total fund balances 1,083,367 310,976 4,224,922 216,517
Total liabilities and fund
balances $ 1,083,367 $ 337,250 $ 4,790,509 $ 256,140
96
Urban Parks
Forestry Utility Library
Fund Fund Fund Total
$ - $ 693,749 $ - $ 1,618,476
586 127,820 134 288,147
- - - 16,485
1,658,040 - 537,492 7,561,979
$ 1,658,626 $ 821,569 $ 537,626 $ 9,485,087
$ - $ 113,258 $ - $ 516,856
- - - 176,493
442,289 - - 493,682
- - 59,660 59,660
442,289 113,258 59,660 1,246,691
- - - 16,485
- - - 4,519,413
- - 216,517
- - 477,966 477,966
- - - 1,083,367
1,216,337 - - 1,216,337
- 708,311 - 708,311
1,216,337 708,311 477,966 8,238,396
$ 1,658,626 $ 821,569 $ 537,626 $ 9,485,087
97
CITY OF TIGARD,OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
for the year ended June 30,2017
City Gas Electrical Criminal
Tax Inspection Building Forfeiture
Fund Fund Fund Fund
REVENUES
City gas tax $ 844,866 $ - $ - $ -
Licenses and permits - 344,301 3,232,880 -
Charges for services - - - -
Intergovernmental revenues - - 63,799 -
Fines and forfeitures - - - 24,292
Tree replacement revenue - - - -
Interest earnings 64,061 326 3,453 13
Miscellaneous revenues 15,444 - 25,271 27
Total revenues 924,371 344,627 3,325,403 24,332
EXPENDITURES
Community services - - - 190,446
Public works - - - -
Community development - - 2,161,660 -
Debt service:
Principal 260,499 - - -
Interest 47,400 - - -
Total expenditures 307,899 - 2,161,660 190,446
Changes in fund balance
before other financing
sources(uses) 616,472 344,627 1,163,743 (166,114)
OTHER FINANCING SOURCES(USES)
Transfer in 127,714 - 300,000 -
Transfer out (15,769) (303,121) _ - _ (2,744)
Total other financing
sources(uses) 111,945 (303,121) 300,000 (2,744)
Changes in fund balance 728,417 41,506 1,463,743 (168,858)
Fund balance-Beginning of the year 354,950 269,470 2,761,179 385,375
Fund balance-End of the year $ 1,083,367 $ 310,976 $ 4,224,922 $ 216,517
98
Urban Parks
Forestry Utility Library
Fund Fund Fund Total
$ - $ - $ - $ 844,866
- - - 3,577,181
- 1,134,852 - 1,134,852
- 5,000 - 68,799
- - - 24,292
18,707 - - 18,707
1,627 487 1,073 71,040
- 3,965 - 44,707
20,334 1,144,304 1,073 5,784,444
- - - 190,446
- 2,254,148 - 2,254,148
- - - 2,161,660
- - 260,499
- - - 47,400
- 2,254,148 - 4,914,153
20,334 (1,109,844) 1,073 870,291
- 1,350,000 - 1,777,714
(103,537) - - (425,171)
(103,537) 1,350,000 - 1,352,543
(83,203) 240,156 1,073 2,222,834
1,299,540 468,155 476,893 6,015,562
$ 1,216,337 $ 708,311 $ 477,966 $ 8,238,396
99
CITY OF TIGARD,OREGON
CITY GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
City gas tax $ 619,511 $ 619,511 $ 844,866 $ 225,355
State grants 3 3 - (3)
Interest earnings 34,584 34,584 64,061 29,477
Miscellaneous revenues 32,052 32,052 15,444 (16,608)
Total revenues 686,150 686,150 924,371 238,221
EXPENDITURES
*Debt service:
Principal 250,322 250,322 260,499 (10,177)
Interest 57,577 57,577 47,400 10,177
Total expenditures 307,899 307,899 _ 307,899 -
Changes in fund balance before
other financing sources(uses) 378,251 378,251 616,472 238,221
OTHER FINANCING SOURCES(USES)
Transfer in 200,000 200,000 127,714 (72,286)
Transfer out (334,668) (334,668) (15,769) 318,899
Contingency (300,000) (300,000) - 300,000
Reserve for future expenditures (141,709) (141,709) - 141,709
Total other financing sources(uses) (576,377) (576,377) 111,945 688,322
Change in fund balance (198,126) (198,126) 728,417 926,543
Fund balance-Beginning of the year 198,126 198,126 354,950 156,824
Fund balance-End of the year $ - $ - $ 1,083,367 $ 1,083,367
* Budget appropriation is made at the debt service program level
100
CITY OF TIGARD,OREGON
ELECTRICAL INSPECTION FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts _budget
REVENUES
Licenses and permits $ 476,287 $ 476,287 $ 344,301 $ (131,986)
Interest earnings 1,207 1,207 _ 326 (881)
Total revenues 477,494 477,494 344,627 (132,867)
OTHER FINANCING(USES)
Transfer out (303,121) (303,121) (303,121) -
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (293,767) (293,767) - 293,767
Total other financing(uses) (646,888) (646,888) (303,121) 343,767
Change in fund balance (169,394) (169,394) 41,506 210,900
Fund balance-Beginning of the year 169,394 169,394 269,470 100,076
Fund balance-End of the year $ - $ - $ 310,976 $ 310,976
101
CITY OF TIGARD,OREGON
BUILDING FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts _budget
REVENUES
Licenses and permits $ 4,565,141 $ 4,565,141 $ 3,232,880 $ (1,332,261)
Intergovernmental revenues 8,281 8,281 63,799 55,518
Interest earnings 19,782 19,782 3,453 (16,329)
Miscellaneous revenues 7,967 7,967 25,271 17,304
Total revenues 4,601,171 4,601,171 3,325,403 (1,275,768)
EXPENDITURES
Community development 2,414,784 2,422,784 _ 2,161,660 261,124
Change in fund balance before
other financing sources(uses) 2,186,387 2,178,387 1,163,743 (1,014,644)
OTHER FINANCING SOURCES(USES)
Transfer in 300,000 300,000 300,000 -
Contingency (250,000) (242,000) - 242,000
Reserve for future expenditures (4,455,879) (4,455,879) - 4,455,879
Total other financing sources(uses) (4,405,879) (4,397,879) 300,000 4,697,879
Change in fund balance (2,219,492) (2,219,492) 1,463,743 3,683,235
Fund balance-Beginning of the year 2,219,492 2,219,492 2,761,179 541,687
Fund balance-End of the year $ - $ - $ 4,224,922 $ 4,224,922
102
CITY OF TIGARD,OREGON
CRIMINAL FORFEITURE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts _budget
REVENUES
Interest earnings $ 1,892 $ 1,892 $ 13 $ (1,879)
Forfeitures 43,000 43,000 24,292 (18,708)
Miscellaneous revenues - _ - _ 27 27
Total revenues 44,892 44,892 24,332 (20,560)
EXPENDITURES
Community services 150,000 200,000 190,446 9,554
Change in fund balance before
other financing sources(uses) (105,108) (155,108) (166,114) (11,006)
OTHER FINANCING SOURCES(USES)
Transfer out (2,744) (2,744) (2,744) -
Reserveforfuture expenditures (86,255) (86,255) - 86,255
Total other financing sources(uses) (88,999) (88,999) (2,744) 86,255
Change in fund balance (194,107) (244,107) (168,858) 75,249
Fund balance-Beginning of the year 194,107 244,107 385,375 141,268
Fund balance-End of the year $ - $ - $ 216,517 $ 216,517
103
CITY OF TIGARD,OREGON
URBAN FORESTRY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Tree replacement revenue $ 32,813 $ 32,813 $ 18,707 $ (14,106)
Interest earnings 4,060 4,060 1,627 (2,433)
Total revenues 36,873 36,873 20,334 (16,539)
OTHER FINANCING SOURCES(USES)
Transfer out (153,382) (153,382) (103,537) 49,845
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (987,524) (987,524) - 987,524
Total other financing sources(uses) (1,190,906) (1,190,906) (103,537) 1,087,369
Change in fund balance (1,154,033) (1,154,033) (83,203) 1,070,830
Fund balance-Beginning of the year 1,154,033 1,154,033 1,299,540 145,507
Fund balance-End of the year $ - $ - $ 1,216,337 $ 1,216,337
104
CITY OF TIGARD,OREGON
PARKS UTILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 1,000,000 $ 1,000,000 $ 1,134,852 $ 134,852
Intergovernmental revenues - - 5,000 5,000
Interest earnings - - 487 487
Miscellaneous revenues - - 3,965 3,965
Total revenues 1,000,000 1,000,000 1,144,304 144,304
EXPENDITURES
Public works 2,460,583 2,490,293 2,254,148 236,145
Change in fund balance before
other financing sources(uses) (1,460,583) (1,490,293) (1,109,844) 380,449
OTHER FINANCING SOURCES(USES)
Transfer in 1,535,000 1,554,860 1,350,000 (204,860)
Contingency (100,000) (90,150) - 90,150
Reserve for future expenditures (131,174) (131,174) - 131,174
Total other financing sources(uses) 1,303,826 1,333,536 1,350,000 16,464
Change in fund balance (156,757) (156,757) 240,156 396,913
Fund balance-Beginning of the year 156,757 156,757 468,155 311,398
Fund balance-End of the year $ - $ - $ 708,311 $ 708,311
105
CITY OF TIGARD,OREGON
LIBRARY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES:
Donations $ - $ - $ 562 $ 562
Interest earnings - - 511 511
Total revenue - - 1,073 1,073
OTHER FINANCING SOURCES(USES)
Transfers out (100,000) (100,000) - 100,000
Reserve for future expenditures (374,648) (374,648) - 374,648
Total other financing sources(uses) (474,648) (474,648) - 474,648
Change in fund balance (474,648) (474,648) 1,073 475,721
Fund balance-Beginning of the year 474,648 474,648 476,893 2,245
Fund balance-End of the year $ - $ - $ 477,966 $ 477,966
106
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.
CITY OF TIGARD,OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
June 30,2017
Bancroft Bond General Urban Renewal
Debt Service Obligation Debt Agency Debt
Fund Service Fund Service Fund Total
ASSETS
Property taxes receivable $ - $ 105,250 $ 18,032 $ 123,282
Assessment liens receivable 369,929 - - 369,929
Interest receivable - 8,549 1,498 10,047
Restricted cash and investments 97,768 1,108,671 122,771 1,329,210
Total assets $ 467,697 $ 1,222,470 $ 142,301 $ 1,832,468
DEFERRED INFLOWS OF RESOURCES
Resources not yet available:
Special assessments/liens $ 369,929 $ - $ - $ 369,929
Property taxes - 104,914 17,959 122,873
Total deferred inflows of resources 369,929 104,914 17,959 492,802
FUND BALANCES
Restricted for debt service 97,768 1,117,556 124,342 1,339,666
Total deferred inflows of
resources and fund balances $ 467,697 $ 1,222,470 $ 142,301 $ 1,832,468
107
CITY OF TIGARD,OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
for the year ended June 30,2017
Bancroft Bond General Urban Renewal
Debt Service Obligation Debt Agency Debt
Fund Service Fund Service Fund _ Total
REVENUES
Taxes $ - $ 2,317,805 $ 440,497 $ 2,758,302
Collection of bonded assessments 52,146 - - 52,146
Interest earnings 36,678 21,272 4,138 62,088
Total revenues 88,824 2,339,077 444,635 2,872,536
EXPENDITURES
Debt service:
Principal 83,100 1,410,000 130,246 1,623,346
Interest 20,225 783,100 36,754 840,079
Total expenditures 103,325 2,193,100 167,000 2,463,425
Change in fund balance before
other financing sources(uses) (14,501) 145,977 277,635 409,111
OTHER FINANCING SOURCES(USES)
Transfer out - - (515,500) (515,500)
Change in fund balance (14,501) 145,977 (237,865) (106,389)
Fund balance-Beginning of the year 112,269 971,579 362,207 1,446,055
Fund balance-End of the year $ 97,768 $ 1,117,556 $ 124,342 $ 1,339,666
108
CITY OF TIGARD,OREGON
BANCROFT BOND DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Collection of bonded assessments $ 120,000 $ 120,000 $ 52,146 $ (67,854)
Interest earnings - - 36,678 _ 36,678
Total revenues 120,000 120,000 88,824 (31,176)
EXPENDITURES
Debt service:
Principal 83,100 83,100 83,100 -
Interest 20,000 20,000 20,225 (225)
Total expenditures 103,100 103,100 103,325 (225)
Change in fund balance before
other financing sources(uses) 16,900 16,900 (14,501) (31,401)
OTHER FINANCING SOURCES(USES)
Transfers out (1,536) (1,536) - 1,536
Reserve for future expenditures (158,894) (158,894) - 158,894
Total other financing sources(uses) (160,430) (160,430) - 160,430
Change in fund balance (143,530) (143,530) (14,501) 129,029
Fund balance-Beginning of the year 143,530 143,530 112,269 (31,261)
Fund balance-End of the year $ - $ - $ 97,768 $ 97,768
109
CITY OF TIGARD,OREGON
GENERAL OBLIGATION DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Taxes $ 2,562,005 $ 2,562,005 $ 2,317,805 $ (244,200)
Interest earnings 4,612 4,612 21,272 16,660
Total revenues 2,566,617 2,566,617 2,339,077 (227,540)
EXPENDITURES
Debt service:
Principal 1,410,000 1,410,000 1,410,000 -
Interest 783,200 783,200 783,100 100
Total expenditures 2,193,200 2,193,200 2,193,100 100
Change in fund balance before
other financing sources(uses) 373,417 373,417 145,977 (227,440)
OTHER FINANCING SOURCES(USES)
Transfer out (1,352) (1,352) - 1,352
Reserve for future expenditures (1,378,361) (1,378,361) - 1,378,361
Total other financing sources(uses) (1,379,713) (1,379,713) - 1,379,713
Change in fund balance (1,006,296) (1,006,296) 145,977 1,152,273
Fund balance-Beginning of the year 1,006,296 1,006,296 971,579 (34,717)
Fund balance-End of the year $ - $ - $ 1,117,556 $ 1,117,556
110
CITY OF TIGARD,OREGON
URBAN RENEWAL AGENCY DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Property taxes $ 434,000 $ 434,000 $ 440,497 $ 6,497
Interest earnings - - 4,138 4,138
Total revenues 434,000 434,000 444,635 10,635
EXPENDITURES
*Debt service:
Principal 130,246 130,246 130,246 -
Interest 36,754 36,754 36,754 -
Total expenditures 167,000 167,000 167,000 -
Change in fund balance before
other financing sources(uses) 267,000 267,000 277,635 10,635
OTHER FINANCING SOURCES(USES)
Transfers out (629,000) (629,000) (515,500) 113,500
Reserve for future expenditure (20,000) (20,000) - 20,000
Total other financing sources(uses) (649,000) (649,000) (515,500) 133,500
Change in fund balance (382,000) (382,000) (237,865) 144,135
Fund balance-Beginning of the year 382,000 382,000 362,207 (19,793)
Fund balance-End of the year $ - $ - $ 124,342 $ 124,342
*Budget appropriation is made at the debt service program level
Principal payments,budgetary basis $ 130,246
Amount that reduces debt in the Urban
Renewal Capital Projects Fund (246)
Principal payments,GAAP basis $ 130,000
Transfers out,budgetary basis $ (515,500)
Amount that reduces debt in the Urban
Renewal Capital Projects Fund (246)
Transfers out,GAAP basis $ (515,746)
111
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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 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.
Transportation Capital Improvement Project Fund–Accounts for capital improvementprojectsfunded
with transportation revenues; including Gas Tax, Traffic Impact Fees and Transportation Development
Tax.
Urban Renewal Agency Capital Improvement Fund–Thisfundwasestablished 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.
Major Capital Projects Funds:
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.
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.
No content appears on this page by design.
CITY OF TIGARD,OREGON
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
June 30,2017
Underground Street Transportation
Facility Utility Maintenance SDC
Fund Fund _ Fee Fund Fund
ASSETS
Cash and investments $ 1,028,114 $ - $ 1,938,576 $ -
Accounts receivable 325 170 304,188 (42)
Prepaids - - - -
Restricted cash and investments - 109,973 - 3,882,305
Total assets $ 1,028,439 $ 110,143 $ 2,242,764 $ 3,882,263
LIABILITIES
Accounts payable and accrued liabilities $ 11,664 $ - $ 200,630 $ 5,488
Advances from other funds-interfund loans - - - -
Total liabilities 11,664 - 200,630 5,488
DEFERRED INFLOWS OF RESOURCES
Special assessments/liens - - - -
FUND BALANCES(DEFICIT)
Restricted for:
Street maintenance and improvements - - - 3,876,775
Park development and improvements - - - -
Underground utilities - 110,143 - -
Committed for:
Street maintenance and improvements - - 2,042,134 -
Assigned to:
City facilities 1,016,775 - - -
Unassigned - - - -
Total fund balances(deficit) 1,016,775 110,143 2,042,134 3,876,775
Total liabilities,deferred inflows of
resources and fund balance $ 1,028,439 $ 110,143 $ 2,242,764 $ 3,882,263
112
Transportation
Parks Parks Capital Urban Renewal
Capital Bond Improvement Agency Capital
Fund Fund Fund Projects Fund Total
$ - $ - $ - $ 5,379 $ 2,972,069
120,503 - 33,453 55,885 514,482
6,940 - 6,940
949,690 1,647,805 1,051,861 - 7,641,634
$ 1,070,193 $ 1,647,805 $ 1,092,254 $ 61,264 $ 11,135,125
$ 205,476 $ - $ 334,629 $ 29,128 $ 787,015
757,432 757,432
205,476 - 334,629 786,560 1,544,447
240,000 - - - 240,000
757,625 - 4,634,400
624,717 1,647,805 - - 2,272,522
- - - - 110,143
- - - - 2,042,134
1,016,775
- - - (725,296) (725,296)
624,717 1,647,805 757,625 (725,296) 9,350,678
$ 1,070,193 $ 1,647,805 $ 1,092,254 $ 61,264 $ 11,135,125
113
CITY OF TIGARD,OREGON
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
for the year ended June 30,2017
Underground Street Transportation
Facility Utility Maintenance SDC
Fund Fund Fee Fund Fund
REVENUES
Charges for services $ - $ 12,320 $ 2,462,642 $ 2,892,575
Intergovernmental revenues - - - -
Rental revenues - - - -
Interest earnings 1,080 444 826 1,067
Miscellaneous revenues 39 - 55 -
Total revenues 1,119 12,764 2,463,523 2,893,642
EXPENDITURES
Community development - - - -
Capital projects 312,482 - 1,713,235 -
Total expenditures 312,482 - 1,713,235
Change in fund balance before
other financing sources(uses) (311,363) 12,764 750,288 2,893,642
OTHER FINANCING SOURCES(USES)
Transfer in 215,314 - - -
Transfer out (16,794) (353,542) (313,900) (5,496)
Total other financing sources(uses) 198,520 (353,542) (313,900) (5,496)
Change in fund balance (112,843) (340,778) 436,388 2,888,146
Fund balance-Beginning of the year 1,129,618 450,921 1,605,746 988,629
Fund balance-End of the year $ 1,016,775 $ 110,143 $ 2,042,134 $ 3,876,775
114
Transportation
Parks Parks Capital Urban Renewal
Capital Bond Improvement Agency Capital
Fund Fund Fund Projects Fund Total
$ - $ - $ 4,268 $ - $ 5,371,805
249,494 515,500 268,630 140,344 1,173,968
-
-
84,425 84,425
12,301 - - 15,718
76 - 77,004 - 77,174
249,570 527,801 349,902 224,769 6,723,090
-
-
33,081 33,081
862,911 - 1,001,691 815,401 4,705,720
862,911 - 1,001,691 848,482 4,738,801
(613,341) 527,801 (651,789) (623,713) 1,984,289
845,941 - 1,250,500 515,746 2,827,501
-
_ (2,345) (127,714) - (819,791)
845,941 (2,345) 1,122,786 515,746 2,007,710
232,600 525,456 470,997 (107,967) 3,991,999
392,117 1,122,349 286,628 (617,329) 5,358,679
$ 624,717 $ 1,647,805 $ 757,625 $ (725,296) $ 9,350,678
115
CITY OF TIGARD,OREGON
FACILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts _budget
REVENUES
Interest earnings $ 3,212 $ 3,212 $ 1,080 $ (2,132)
Miscellaneous revenues - - 39 39
Total revenues 3,212 3,212 1,119 (2,093)
EXPENDITURES
Capital projects 315,000 515,000 312,482 202,518
Change in fund balance before
other financing sources(uses) (311,788) (511,788) (311,363) 200,425
OTHER FINANCING SOURCES(USES)
Transfer in 314,166 314,166 215,314 (98,852)
Transfer out (16,794) (16,794) (16,794) -
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (438,038) _ (238,038) - 238,038
Total other financing sources(uses) (190,666) 9,334 198,520 189,186
Change in fund balance (502,454) (502,454) (112,843) 389,611
Fund balance-Beginning of the year 502,454 502,454 1,129,618 627,164
Fund balance-End of the year $ - $ - $ 1,016,775 $ 1,016,775
116
CITY OF TIGARD,OREGON
UNDERGROUND UTILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 124,817 $ 124,817 $ 12,320 $ (112,497)
Interest earnings 7,160 7,160 444 (6,716)
Total revenues 131,977 131,977 12,764 (119,213)
OTHER FINANCING SOURCES(USES)
Transfer out (324,139) (384,619) (353,542) 31,077
Reserve for future expenditures _ (42,135) (42,135) - 42,135
Total other financing uses (366,274) (426,754) (353,542) 73,212
Change in fund balance (234,297) (294,777) (340,778) (46,001)
Fund balance-Beginning of the year 234,297 294,777 450,921 156,144
Fund balance-End of the year $ - $ - $ 110,143 $ 110,143
117
CITY OF TIGARD,OREGON
STREET MAINTENANCE FEE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
_ Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,239,103 $ 2,239,103 $ 2,462,642 $ 223,539
Interest earnings 2,043 2,043 826 (1,217)
Miscellaneous revenues 1,299 1,299 55 (1,244)
Total revenues 2,242,445 2,242,445 2,463,523 221,078
EXPENDITURES
Capital projects 1,985,000 1,985,000 1,713,235 271,765
Change in fund balance before
other financing sources(uses) 257,445 257,445 750,288 492,843
OTHER FINANCING SOURCES(USES)
Transfer out (313,900) (320,600) (313,900) 6,700
Contingency (200,000) (193,300) - 193,300
Reserve for future expenditures (1,253,853) (1,253,853) - _ 1,253,853
Total other financing sources(uses) (1,767,753) (1,767,753) (313,900) 1,453,853
Change in fund balance (1,510,308) (1,510,308) 436,388 1,946,696
Fund balance-Beginning of the year 1,510,308 1,510,308 1,605,746 95,438
Fund balance-End of the year $ - $ - $ 2,042,134 $ 2,042,134
118
CITY OF TIGARD,OREGON
TRANSPORTATION SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 1,614,750 $ 1,614,750 $ 2,892,575 $ 1,277,825
Interest earnings - - 1,067 1,067
Total revenues 1,614,750 1,614,750 2,893,642 1,278,892
OTHER FINANCING SOURCES(USES)
Transfer out (221,015) (227,015) (5,496) 221,519
Contingency (50,000) (44,000) - 44,000
Reserve for future expenditures (1,397,735) (1,397,735) - 1,397,735
Total other financing sources(uses) (1,668,750) (1,668,750) (5,496) 1,663,254
Change in fund balance (54,000) (54,000) 2,888,146 2,942,146
Fund balance-Beginning of the year 54,000 54,000 988,629 934,629
Fund balance-End of the year $ - $ - $ 3,876,775 $ 3,876,775
119
CITY OF TIGARD,OREGON
PARKS CAPITAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental revenues $ 572,000 $ 572,000 $ 249,494 $ (322,506)
Interest earnings 3,015 3,015 - (3,015)
Miscellaneous revenues - - 76 76
Total revenues 575,015 575,015 249,570 (325,445)
EXPENDITURES
Capital projects 3,110,319 3,572,319 862,911 2,709,408
Change in fund balance before
other financing sources(uses) (2,535,304) (2,997,304) (613,341) 2,383,963
OTHER FINANCING SOURCES(USES)
Transfer in 2,558,638 3,020,638 845,941 (2,174,697)
Reserve for future expenditures (428,373) (428,373) - 428,373
Total other financing sources(uses) 2,130,265 2,592,265 845,941 (1,746,324)
Change in fund balance (405,039) (405,039) 232,600 637,639
Fund balance-Beginning of the year 405,039 405,039 392,117 (12,922)
Fund balance-End of the year $ - $ - $ 624,717 $ 624,717
120
CITY OF TIGARD,OREGON
PARKS BOND FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental revenues $ 515,000 $ 515,000 $ 515,500 $ 500
Interest earnings 2,000 2,000 12,301 10,301
Total revenues 517,000 517,000 527,801 10,801
OTHER FINANCING SOURCES(USES)
Transfer out (1,285,000) (1,327,000) (2,345) 1,324,655
Reserve for future expenditures (16,997) (16,997) - 16,997
Total other financing uses (1,301,997) (1,343,997) (2,345) 1,341,652
Change in fund balance (784,997) (826,997) 525,456 1,352,453
Fund balance-Beginning of the year 784,997 826,997 1,122,349 295,352
Fund balance-End of the year $ - $ - $ 1,647,805 $ 1,647,805
121
CITY OF TIGARD,OREGON
TRANSPORTATION CIP FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental revenues $ 3,911,000 $ 3,911,000 $ 268,630 $ (3,642,370)
Miscellaneous revenues 1,526,000 1,526,000 77,004 (1,448,996)
Charges for services - - 4,268 4,268
Total revenues 5,437,000 5,437,000 349,902 (5,087,098)
EXPENDITURES
Capital projects 7,260,044 7,740,044 1,001,691 6,738,353
Change in fund balance before
other financing sources(uses) (1,823,044) (2,303,044) (651,789) 1,651,255
OTHER FINANCING SOURCES(USES)
Transfers in 2,033,044 2,513,044 1,250,500 (1,262,544)
Transfer out (200,000) (200,000) (127,714) 72,286
Reserve for future expenditures (177,821) (177,821) - 177,821
Total other financing sources 1,655,223 2,135,223 1,122,786 (1,012,437)
Change in fund balance (167,821) (167,821) 470,997 638,818
Fund balance-Beginning of the year 167,821 167,821 286,628 118,807
Fund balance-End of the year $ - $ - $ 757,625 $ 757,625
122
CITY OF TIGARD,OREGON
URBAN RENEWAL AGENCY CAPITAL PROJECT FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental revenues $ 500,000 $ 500,000 $ 140,344 $ (359,656)
Rental revenues 78,000 78,000 84,425 6,425
Total revenues 578,000 578,000 224,769 (353,231)
EXPENDITURES
* Capital projects 1,207,000 1,207,000 848,482 358,518
Total expenditures 1,207,000 1,207,000 848,482 358,518
Change in fund balance before
other financing sources(uses) (629,000) (629,000) (623,713) 5,287
OTHER FINANCING SOURCES(USES)
Transfer in 629,000 629,000 515,500 (113,500)
Change in fund balance - - (108,213) (108,213)
Fund balance-Beginning of the year - - 140,349 140,349
Fund balance-End of the year $ - $ - 32,136 $ 32,136
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. (757,432)
Fund balance-GAAP basis $ (725,296)
Transfers in,budgetary basis $ 515,500
Payments on interfund debt provided
by Urban Renewal Debt Service Fund 246
Transfers in,GAAP basis $ 515,746
* For budgetary puposes expenditures are appropriated as capital projects,however on the GAAP statements
non-capital transactions are recorded as program expenditures
123
CITY OF TIGARD,OREGON
TRANSPORTATION DEVELOPMENT TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 1,785,000 $ 1,785,000 $ 4,179,562 $ 2,394,562
Interest earnings 11,279 11,279 5,147 (6,132)
Total revenues 1,796,279 1,796,279 4,184,709 2,388,430
OTHER FINANCING SOURCES(USES)
Transfer out (87,486) (104,486) (48,618) 55,868
Contingency (250,000) (233,000) - 233,000
Reserve for future expenditures (2,738,083) (2,738,083) - 2,738,083
Total other financing sources(uses) (3,075,569) (3,075,569) (48,618) 3,026,951
Change in fund balance (1,279,290) (1,279,290) 4,136,091 5,415,381
Fund balance-Beginning of the year 1,279,290 1,279,290 3,392,307 2,113,017
Fund balance-End of the year $ - $ - $ 7,528,398 $ 7,528,398
124
CITY OF TIGARD,OREGON
PARKS SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts _budget
REVENUES
Charges for services $ 1,218,969 $ 1,218,969 $ 4,661,765 $ 3,442,796
Interest earnings 19,782 19,782 _ 5,449 (14,333)
Total revenues 1,238,751 1,238,751 4,667,214 3,428,463
OTHER FINANCING SOURCES(USES)
Transfer out (1,086,045) (1,521,045) (459,786) 1,061,259
Contingency (47,681) (32,681) - 32,681
Reserve for future expenditures (1,400,599) (1,400,599) - 1,400,599
Total other financing sources(uses) (2,534,325) (2,954,325) (459,786) 2,494,539
Change in fund balance (1,295,574) (1,715,574) 4,207,428 5,923,002
Fund balance-Beginning of the year 1,295,574 1,715,574 3,929,232 2,213,658
Fund balance-End of the year $ - $ - $ 8,136,660 $ 8,136,660
125
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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.
CITY OF TIGARD,OREGON
SANITARY SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts _budget
REVENUES
Charges for services $ 1,664,796 $ 1,664,796 $ 3,013,314 $ 1,348,518
Connection fees 42,200 42,200 163,276 121,076
Intergovernmental revenues 383,000 383,000 198,519 (184,481)
Interest earnings 100,333 100,333 4,693 (95,640)
Miscellaneous revenues 143,091 143,091 81,858 (61,233)
Total revenues 2,333,420 2,333,420 3,461,660 1,128,240
EXPENDITURES
Public works 2,181,253 2,247,443 1,840,399 407,044
Capital projects 1,160,111 1,160,111 715,878 444,233
Total expenditures 3,341,364 3,407,554 2,556,277 851,277
Change in fund balance before
other financing sources(uses) (1,007,944) (1,074,134) 905,383 1,979,517
OTHER FINANCING SOURCES(USES)
Transfer in - - 39 39
Transfer out (164,726) (164,726) (141,577) 23,149
Repayment on interfund loan - - 687 687
Contingency (400,000) (333,810) - 333,810
Reserve for future expenditures (2,037,180) (2,037,180) - 2,037,180
Total other financing sources(uses) (2,601,906) (2,535,716) (140,851) 2,394,865
Change in fund balance (3,609,850) (3,609,850) 764,532 4,374,382
Fund balance-Beginning of the year 3,609,850 3,609,850 4,229,917 620,067
Fund balance-End of the year $ - $ - $ 4,994,449 $ 4,994,449
126
CITY OF TIGARD,OREGON
SANITARY SEWER FUND
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30,2017
Operating and
Non-Operating Expenditures/
Revenues Expenses
Budgetary basis $ 3,462,386 $ 2,556,277
Unavailable revenue (35,652) -
Contributed capital 304,850 -
Interfund loan payments (175) -
Compensated absences - (2,996)
Expenditures capitalized - (677,021)
Depreciation expense - 718,377
Net OPEB obligation - 969
Operating and non-operating revenue
and expenses-GAAP basis $ 3,731,409 $ 2,595,606
127
CITY OF TIGARD,OREGON
STORMWATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts _budget
REVENUES
Charges for services $ 2,676,445 $ 2,676,445 $ 3,275,083 $ 598,638
Federal grants - - 87,005 87,005
Interest earnings 7,936 7,936 5,630 (2,306)
Miscellaneous revenues 3,100 3,100 3,982 882
Total revenues 2,687,481 2,687,481 3,371,700 684,219
EXPENDITURES
Public works 1,999,819 2,008,755 1,665,257 343,498
Capital projects 1,050,611 1,479,611 1,330,462 149,149
Total expenditures 3,050,430 3,488,366 2,995,719 492,647
Change in fund balance before
other financing sources(uses) (362,949) (800,885) 375,981 1,176,866
OTHER FINANCING USES
Transfer in 93,500 93,500 85,597 (7,903)
Transfer out (220,566) (229,566) (128,668) 100,898
Contingency (200,000) (191,064) - 191,064
Reserve for future expenditures (3,360,717) (3,360,717) - 3,360,717
Total other financing uses (3,687,783) (3,687,847) (43,071) 3,644,776
Change in fund balance (4,050,732) (4,488,732) 332,910 4,821,642
Fund balance-Beginning of the year 4,050,732 4,488,732 5,770,171 1,281,439
Fund balance-End of the year $ - $ - $ 6,103,081 $ 6,103,081
128
CITY OF TIGARD,OREGON
WATER QUALITY/QUANTITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final _ Amounts budget
REVENUES
Charges for services $ - $ - $ 3,300 $ 3,300
Interest earnings 15,102 15,102 1,170 (13,932)
Total revenues 15,102 15,102 4,470 (10,632)
OTHER FINANCING SOURCES(USES)
Transfer out (37,017) (37,017) - 37,017
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (1,187,327) (1,187,327) - 1,187,327
Total other financing sources(uses) (1,274,344) (1,274,344) - 1,274,344
Change in fund balance (1,259,242) (1,259,242) 4,470 1,263,712
Fund balance-Beginning of the year 1,259,242 1,259,242 1,249,364 (9,878)
Fund balance-End of the year $ - $ - $ 1,253,834 $ 1,253,834
129
CITY OF TIGARD,OREGON
STORMWATER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30,2017
Operating and
Non-operating Expenditures/
Revenues Expenses
Stormwater $ 3,371,700 $ 3,124,387
Water Quality/Quantity 4,470 -
Total, budgetary basis 3,376,170 3,124,387
Contributed capital (3,300)
Loss on disposal of capital assets - -
Compensated absences - (2,729)
Expenditures capitalized - (774,414)
Depreciation expense - 518,696
Net OPEB obligation - 1,401
Operating and non-operating
revenue and expenses-GAAP basis $ 3,372,870 $ 2,867,341
130
CITY OF TIGARD,OREGON
WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 19,742,336 $ 19,742,336 $ 20,926,322 $ 1,183,986
Interest earnings 30,644 30,644 13,698 (16,946)
Miscellaneous revenues 10,933 10,933 152,456 141,523
Total revenues 19,783,913 19,783,913 21,092,476 1,308,563
EXPENDITURES
Public works 7,249,963 7,325,645 6,251,065 1,074,580
Change in fund balance before
other financing sources(uses) 12,533,950 12,458,268 14,841,411 2,383,143
OTHER FINANCING SOURCES(USES)
Transfer in 58,751 58,751 58,751 -
Transfer out (11,006,307) (12,718,062) (10,966,886) 1,751,176
Contingency (500,000) (24,598) - 24,598
Reserve for future expenditures (7,919,192) (7,919,192) - 7,919,192
Total other financing sources(uses) (19,366,748) (20,603,101) (10,908,135) 9,694,966
Change in fund balance (6,832,798) (8,144,833) 3,933,276 12,078,109
Fund balance-Beginning of the year 6,832,798 8,144,833 16,312,464 8,167,631
Fund balance-End of the year $ - $ - $ 20,245,740 $ 20,245,740
131
CITY OF TIGARD,OREGON
WATER SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts _budget
REVENUES
System development charges $ 2,227,973 $ 2,227,973 $ 6,532,039 $ 4,304,066
Interest earnings _ 233 233 _ 6,660 6,427
Total revenues 2,228,206 2,228,206 6,538,699 4,310,493
OTHER FINANCING SOURCES(USES)
Transfer out (2,720,960) (3,504,720) (3,504,720) -
Contingency (100,000) (100,000) - 100,000
Reserve for future expenditures (1,153,660) (1,153,660) - 1,153,660
Total other financing sources(uses) (3,974,620) (4,758,380) (3,504,720) 1,253,660
Change in fund balance (1,746,414) (2,530,174) 3,033,979 5,564,153
Fund balance-Beginning of the year 1,746,414 2,530,174 5,517,329 2,987,155
Fund balance-End of the year $ - $ - $ 8,551,308 $ 8,551,308
132
CITY OF TIGARD,OREGON
WATER CIP FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts _budget
REVENUES
Interest earnings $ 13,096 $ 13,096 $ - $ (13,096)
Miscellaneous revenues 5,318 _ 5,318 32,332 27,014
Total revenues 18,414 18,414 32,332 13,918
EXPENDITURES
Capital projects 10,432,158 10,432,158 8,698,152 1,734,006
Change in fund balance before
other financing sources(uses) (10,413,744) (10,413,744) (8,665,820) 1,747,924
OTHER FINANCING SOURCES(USES)
Transfer in 5,198,158 5,198,158 5,964,802 766,644
Transfer out (51,935) (51,935) (51,935) -
Reserve for future expenditures (3,023,678) (3,023,678) - 3,023,678
Total other financing sources(uses) 2,122,545 2,122,545 5,912,867 3,790,322
Change in fund balance (8,291,199) (8,291,199) (2,752,953) 5,538,246
Fund balance-Beginning of the year 8,291,199 8,291,199 4,403,089 (3,888,110)
Fund balance-End of the year $ - $ - $ 1,650,136 $ 1,650,136
133
CITY OF TIGARD,OREGON
WATER DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts _ budget
REVENUES
Interest earnings $ - $ - $ 74,264 $ 74,264
Total revenues - - _ 74,264 74,264
EXPENDITURES
Debt service:
Principal 2,130,945 2,130,945 2,130,945 -
Interest 6,262,339 6,262,339 6,262,339 -
Total expenditures 8,393,284 8,393,284 8,393,284 -
Change in fund balance before
other financing sources(uses) (8,393,284) (8,393,284) (8,319,020) 74,264
OTHER FINANCING SOURCES(USES)
Transfer in 8,393,283 8,393,283 8,393,283 -
Reserve for future expenditures (6,670,795) (6,670,795) - 6,670,795
Total other financing sources(uses) 1,722,488 1,722,488 8,393,283 6,670,795
Change in fund balance (6,670,796) (6,670,796) 74,263 6,745,059
Fund balance-Beginning of the year 6,670,796 6,670,796 6,762,299 91,503
Fund balance-End of the year $ - $ - $ 6,836,562 $ 6,836,562
134
CITY OF TIGARD,OREGON
WATER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30,2017
Operating and
Non-operating Expenditures/
Revenues Expenses
Water $ 21,151,227 $ 17,217,951
Water SDC 6,538,699 3,504,720
Water CIP 5,997,134 8,750,087
Water Debt Service 8,467,547 8,393,284
Total, budgetary basis 42,154,607 37,866,042
Contributed capital 298,780 -
Elimination of water interfund transfers (14,358,085) (14,358,085)
Compensated absences - (34,790)
Expenditures capitalized - (8,410,072)
Principal payments - (2,130,945)
Accrued interest - (1,515)
Amortization of bond premium - (554,542)
Interest capitalized - (5,362,832)
Depreciation expense - 1,411,940
Net OPEB obligation - 2,150
Operating and non-operating
revenue and expenses-GAAP basis $ 28,095,302 $ 8,427,351
135
CITY OF TIGARD,OREGON
ENTERPRISE FUNDS
RECONCILIATION OF BUDGETARY FUND BALANCE TO
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET POSITION
June 30,2017
Total Total Total
Sanitary Sewer Stormwater Water
Sanitary Sewer Fund $ 4,994,449 $ - $ -
Stormwater Fund - 6,103,081 -
Water Quality/Quantity Fund - 1,253,834 -
Water Fund - - 20,245,740
Water SDC Fund - - 8,551,308
Water CIP Fund - - 1,650,136
Water Debt Service Fund - _ - 6,836,562
Fund balance-budget basis 4,994,449 7,356,915 37,283,746
Adjustments from budgetary basis to
generally accepted accounting principles basis:
Capital assets,net 17,959,502 12,152,297 211,925,823
Sewer funds payable (21,779) - -
Assets held for resale 185,021 260,021 -
Unavailable revenue 45,305 - -
Compensated absences (21,013) (24,017) (55,139)
Long-term debt - - (138,327,290)
Accrued interest payable - - (2,612,813)
Interfund loans 102,320 - -
OPEB obligation (39,079) (44,590) (84,530)
Total Net Position-GAAP basis $ 23,204,726 $ 19,700,626 $ 108,129,797
136
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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.
CITY OF TIGARD,OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
June 30,2017
Central Fleet/Property
Services Management Insurance
Fund Fund Fund Total
ASSETS
Cash and investments $ 1,480,448 $ 379,033 $ 1,083,167 $ 2,942,648
Accounts receivable 38,203 - 384 38,587
Prepaids 66,826 - - 66,826
Inventory - 37,143 - 37,143
Total assets 1,585,477 416,176 1,083,551 3,085,204
LIABILITIES
Accounts payable and accrued liabilities 276,490 160,229 - 436,719
Unearned revenue 15,714 - - 15,714
Accrued compensated absences 265,765 28,665 - 294,430
Net OPEB obligation 286,213 24,886 - 311,099
Total liabilities 844,182 213,780 - 1,057,962
NET POSITION
Net position, unrestricted $ 741,295 $ 202,396 $ 1,083,551 $ 2,027,242
137
CITY OF TIGARD,OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES
AND CHANGES IN FUND NET POSITION
for the year ended June 30,2017
Central Fleet/Property
Services Management Insurance
Fund Fund Fund Total
OPERATING REVENUES
Charges for services $ 7,374,686 $ 1,927,788 $ - $ 9,302,474
Miscellaneous revenues 76,544 1,837 219,021 297,402
Total operating revenues 7,451,230 1,929,625 219,021 9,599,876
OPERATING EXPENSES
Salaries and wages 4,671,972 652,906 - 5,324,878
Contracted services 633,046 394,200 186 1,027,432
General,administrative and other 2,624,220 913,097 36,424 3,573,741
Total operating expenses 7,929,238 1,960,203 36,610 9,926,051
Operating income(loss) (478,008) (30,578) 182,411 (326,175)
NONOPERATING REVENUE
Interest revenue 23,932 - 843 24,775
Income(loss)before contrigutions and transfers (454,076) (30,578) 183,254 (301,400)
CONTRIBUTIONS AND TRANSFERS
Transfer in 456,161 130,000 - 586,161
Transfer out - - (270) (270)
Change in net position 2,085 99,422 182,984 284,491
Net position-Beginning of year 739,210 102,974 900,567 1,742,751
Net position-End of year $ 741,295 $ 202,396 $ 1,083,551 $ 2,027,242
138
CITY OF TIGARD,OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
for the year ended June 30,2017
Fleet/Property
Central Services Management Insurance
Fund Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 7,356,145 $ 1,927,788 $ - $ 9,283,933
Payments to suppliers (3,179,717) (1,412,431) (36,652) (4,628,800)
Payments to employees (4,668,889) (652,647) - (5,321,536)
Other receipts 76,544 1,837 221,497 299,878
Net cash provided(used)by operating activities (415,917) (135,453) 184,845 (366,525)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfer from other funds 456,161 130,000 - 586,161
Transfer to other funds - - (270) (270)
Net cash flows from noncapital financing activities 456,161 130,000 (270) 585,891
Net increase in cash and investments 40,244 (5,453) 184,575 219,366
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 23,932 - 843 24,775
Cash and investments--beginning of the year 1,416,272 384,486 897,749 2,698,507
Cash and investments--end of the year $ 1,480,448 $ 379,033 $ 1,083,167 $ 2,942,648
RECONCILIATION OF OPERATING INCOME(LOSS)TO
NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES
Operating income(loss) $ (478,008) $ (30,578) $ 182,411 $ (326,175)
Adjustments to reconcile operating income(loss)to
net cash provided(used)by operating activities
CHANGE IN ASSETS AND LIABILITIES
Receivables (18,541) - 2,476 (16,065)
Prepaids (33,552) - - (33,552)
Inventory - (5,222) - (5,222)
Accounts Payable 111,101 (99,912) (42) 11,147
Accrued compensated absences (3,951) (699) - (4,650)
Net OPEB Obligation 7,034 958 - 7,992
Net cash provided(used)by operating activities $ (415,917) $ (135,453) $ 184,845 $ (366,525)
139
CITY OF TIGARD,OREGON
CENTRAL SERVICES FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 7,361,969 $ 7,509,128 $ 7,374,686 $ (134,442)
Intergovernmental revenues - 70,600 - (70,600)
Interest earnings 22,593 22,593 23,932 1,339
Miscellaneous revenues 13,400 13,400 76,544 63,144
Total revenues 7,397,962 7,615,721 7,475,162 (140,559)
EXPENDITURES
Policy and administration 8,082,249 8,920,227 7,922,204 998,023
Change in fund balance before
other financing sources(uses) (684,287) (1,304,506) (447,042) 857,464
OTHER FINANCING SOURCES(USES)
Transfer in 478,001 642,701 456,161 (186,540)
Contingency (250,000) (107,051) - 107,051
Reserve for future expenditures (249,533) (249,533) - 249,533
Total other financing sources(uses) (21,532) 286,117 456,161 170,044
Change in fund balance (705,819) (1,018,389) 9,119 1,027,508
Fund balance-Beginning of the year 705,819 1,018,389 1,018,389 -
Fund balance-End of the year $ - $ - 1,027,508 $ 1,027,508
Reconciliation of budgetary fund balance to GAAP basis net position:
Net OPEB obligation (286,213)
Total net position,GAAP basis $ 741,295
140
CITY OF TIGARD,OREGON
FLEET/PROPERTY MANAGEMENT FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 1,927,788 $ 1,927,788 $ 1,927,788 $ -
Miscellaneous revenues 29,686 29,686 1,837 (27,849)
Total revenues 1,957,474 1,957,474 1,929,625 (27,849)
EXPENDITURES
Policy and administration 2,041,913 2,041,913 1,959,245 82,668
Change in fund balance before
other financing sources(uses) (84,439) (84,439) (29,620) 54,819
OTHER FINANCING SOURCES(USES)
Transfer in 167,017 167,017 130,000 (37,017)
Contingency (75,000) (75,000) - 75,000
Reserve for future expenditures (93,526) (93,526) - 93,526
Total other financing sources(uses) (1,509) (1,509) 130,000 131,509
Change in fund balance (85,948) (85,948) 100,380 186,328
Fund balance-Beginning of the year 85,948 85,948 126,902 40,954
Fund balance-End of the year $ - $ - 227,282 $ 227,282
Reconciliation of budgetary fund balance to GAAP basis net position:
Net OPEB obligation (24,886)
Total net position,GAAP basis $ 202,396
141
CITY OF TIGARD,OREGON
INSURANCE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2017
Budgeted Amounts Variance
_ Actual with final
Original _ Final Amounts budget
REVENUES
Interest earnings $ 15,620 $ 15,620 $ 843 $ (14,777)
Miscellaneous revenues 39,000 39,000 219,021 180,021
Total revenues 54,620 54,620 219,864 165,244
EXPENDITURES
Policy and administration 50,000 50,000 36,610 13,390
Change in fund balance
before other financing sources(uses) 4,620 4,620 183,254 178,634
OTHER FINANCING SOURCES(USES)
Transfer out (31,270) (31,270) (270) 31,000
Reserve for future expenditures (855,626) (855,626) - 855,626
Total other financing sources(uses) (886,896) (886,896) (270) 886,626
Change in fund balance (882,276) (882,276) 182,984 1,065,260
Fund balance-Beginning of the year 882,276 882,276 900,567 18,291
Fund balance-End of the year $ - $ - $ 1,083,551 $ 1,083,551
142
Other Schedules
CITY OF TIGARD,OREGON
SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS
For the fiscal year ended June 30,2017
Interest Transactions
Original Outstanding Matured/ Outstanding
Issue June 30,2016 Additions Called Paid Matured Paid
June 30,2017
Bancroft Bonds
Issued June 27,2002 $ 1,307,969 $ 296,319 $ - $ 83,100 $ (83,100) $ 213,219 $ 20,000 $ (20,000)
General Obligation Bonds
Issued February 3,2011 $ 8,655,000 $ 5,525,000 $ - $ 705,000 $ (705,000) $ 4,820,000 $ 196,075 $ (196,075)
Issued June 21,2010 7,250,000 3,160,000 - 755,000 (755,000) 2,405,000 137,460 (137,460)
Issued February 3,2011 17,000,000 13,985,000 - 705,000 (705,000) 13,280,000 587,025 (587,025)
$ 22,670,000 $ - $2,165,000 $ (2,165,000) $ 20,505,000 $ 920,560 $ (920,560)
Bank Loan
Issued September 1,2014 $ 1,300,000 $ 1,170,000 $ - $ 130,000 $ (130,000) $ 1,040,000 $ 32,821 $ (32,821)
Revenue Bonds
Issued May 1,2012 $97,720,000 $ 97,720,000 $ - $ 1,870,000 $ (1,870,000) $ 95,850,000 $4,691,800 $ (4,691,800)
Issued May 1,2015 30,810,000 30,810,000 - 160,000 (160,000) 30,650,000 1,510,300 (1,510,300)
$ 128,530,000 $ - $2,030,000 $ (2,030,000) $ 126,500,000 $6,202,100 $ (6,202,100)
Long-term Note
Issued December 1,2011 $ 2,398,000 $ 2,007,952 $ - $ 100,945 $ (100,945) $ 1,907,007 $ 60,239 $ (60,239)
143
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF LOCAL IMPROVEMENT DISTRICT BONDS
For the fiscal year ended June 30,2017
Total Debt Service Requirement Issued June 27,2002
Fiscal Year Total Total 7.25%
of Maturity Principal Interest Principal Interest
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
$ 213,219 $ 22,166 $ 213,219 $ 22,166
144
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF GENERAL OBLIGATION BONDS
For the fiscal year ended June 30,2017
Total Debt Series 2011B Transportation Bonds Series 2011A
Service Requirement Issued: February 3,2011 Issued:June 21,2010 Issued:February 3,2011
Fiscal Year Total Total 3.00%to 4.00% 4.35% 3.00%to 4.75%
of Maturity Principal Interest Principal Interest Principal Interest Principal Interest
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
$ 20,505,000 $ 5,634,970 $ 4,820,000 $ 596,550 $ 2,405,000 $ 211,194 $ 13,280,000 $4,827,226
145
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF BANK LOAN PAYABLE
For the fiscal year ended June 30,2017
Total Debt Service Requirement Issued:September 1,2014
Fiscal Year Total Total 3.00%
of Maturity Principal Interest Principal Interest
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
$ 1,040,000 $ 65,779 $ 1,040,000 $ 65,779
146
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF WATER REVENUE BONDS
For the fiscal year ended June 30,2017
Total Debt Service Requirement Issued: May 1,2012 Issued: May 3,2015
Fiscal Year Total Total 3.00%to 5.00% 3.00%to 5.00%
of Maturity Principal Interest Principal Interest Principal Interest
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
$ 126,500,000 $ 112,164,775 $ 95,850,000 $ 74,769,675 $ 30,650,000 $ 37,395,100
147
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF SAFE DRINKING WATER REVOLVING LOAN FUNDS
For the fiscal year ended June 30,2017
Total Debt Service Requirement Issued: December 1,2011
Fiscal Year Total Total 3.00%to 5.00%
of Maturity Principal Interest Principal Interest
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
$ 1,907,007 $ 483,963 $ 1,907,007 $ 483,963
148
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. 149-165
Revenue Capacity—These schedules contain information to help the
reader assess the city's most significant local revenue source, property taxes. 166-171
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. 172-179
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. 180-182
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. 183-187
No content appears on this page by design.
CITY OF TIGARD,OREGON
NET POSITION BY COMPONENT
for the last ten fiscal years
(accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2008 2009 2010
GOVERNMENTAL ACTIVITIES
Net investment in capital assets $ 177,656,465 $ 179,584,222 $ 165,775,262
Restricted 1,992,734 1,540,638 6,872,512
Unrestricted 23,053,474 18,091,356 24,927,888
Total governmental activities net position 202,702,673 199,216,216 197,575,662
BUSINESS-TYPE ACTIVITIES
Net investment in capital assets 68,398,209 68,738,562 70,942,446
Restricted 3,783,324 3,783,324 -
Unrestricted 15,826,866 16,184,644 17,371,241
Total business-type activities net position 88,008,399 88,706,530 88,313,687
PRIMARY GOVERNMENT
Net investment in capital assets 246,054,674 248,322,784 236,717,708
Restricted 5,776,058 5,323,962 6,872,512
Unrestricted 38,880,340 34,275,999 42,299,129
Total primary government net position $ 290,711,072 $ 287,922,745 $ 285,889,349
Source: Comprehensive Annual Financial Report of the City.
149
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2011 2012 2013 2014(Restated) 2015 2016 2017
$ 181,343,650 $ 179,626,050 $ 181,196,030 $ 185,242,899 $ 189,748,234 $ 195,142,143 $ 199,214,099
5,880,755 13,180,057 12,041,725 10,941,117 12,376,136 20,392,998 26,313,186
11,880,945 8,431,166 14,311,478 13,596,004 13,031,415 11,024,212 20,753,326
199,105,350 201,237,273 207,549,233 209,780,020 215,155,785 226,559,353 246,280,611
78,920,831 65,218,645 74,044,470 79,627,259 84,867,665 95,247,967 104,870,812
6,005,540 13,184,382 9,683,852 10,551,442 11,250,300 12,279,628 15,387,870
8,675,865 19,429,375 18,523,616 16,721,508 21,256,129 21,847,155 30,776,467
93,602,236 97,832,402 102,251,938 106,900,209 117,374,094 129,374,750 151,035,149
260,264,481 244,844,695 255,240,500 264,870,158 274,615,899 290,390,110 304,084,911
11,886,295 26,364,439 21,725,577 21,492,559 23,626,436 32,672,626 41,701,056
20,556,810 27,860,541 32,835,094 30,317,512 34,287,544 32,871,367 51,529,793
$ 292,707,586 $ 299,069,675 $ 309,801,171 $ 316,680,229 $ 332,529,879 $ 355,934,103 $ 397,315,760
150
CITY OF TIGARD,OREGON
CHANGES IN NET POSITION
for the last ten fiscal years
(accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2008 2009 2010
EXPENSES
Governmental activities
Community services $ 13,678,913 $ 18,365,997 $ 19,832,642
Public works 2,373,710 2,468,981 8,563,893
Community development 5,186,834 7,238,839 4,846,494
Policy and administration 3,992,478 5,997,644 1,511,956
Interest on long-term debt 354,664 526,825 548,987
Total governmental activities expenses 25,586,599 34,598,286 35,303,972
Business-type activities
Sewer 1,963,223 1,597,413 1,379,105
Stormwater 1,585,105 1,920,640 2,061,622
Water 6,792,833 7,624,478 7,880,598
Total business-type activities program expenses 10,341,161 11,142,531 11,321,325
Total primary government expenses $ 35,927,760 $ 45,740,817 $ 46,625,297
PROGRAM REVENUES
Governmental activities
Charges for services:
Community services $ 168,232 $ 180,425 $ 232,384
Public works 1,377,855 952,652 1,751,341
Community development 2,331,834 1,249,995 1,490,701
Policy and administration 1,524,653 1,463,736 108,940
Operating grants and contributions 739,171 153,447 199,506
Capital grants and contributions 3,103,521 199,112 305,398
Total governmental activities program revenues 9,245,266 4,199,367 4,088,270
Business-type activities
Charges for services:
Sewer 2,322,462 1,348,750 1,117,987
Stormwater 1,593,097 1,484,627 1,872,545
Water 7,002,872 7,417,827 7,834,978
Capital grants and contributions 136,331 834,660 1,022,045
Total business-type activities program revenues 11,054,762 11,085,864 11,847,555
Total primary government program revenues $ 20,300,028 $ 15,285,231 $ 15,935,825
Source: Comprehensive Annual Financial Report of the City.
151
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2011 2012 2013 2014(Restated) 2015 2016 2017
$ 19,987,961 $ 20,025,191 $ 19,085,777 $ 23,078,512 $ 18,542,379 $ 25,089,790 $ 23,461,915
10,911,875 12,489,448 8,585,063 8,399,436 10,408,399 10,865,800 8,342,833
4,159,289 4,709,751 3,988,011 4,267,328 4,688,686 7,030,142 5,831,389
1,825,398 2,117,198 1,339,254 1,732,016 1,323,435 1,226,166 3,583,751
1,214,420 1,125,259 1,226,774 1,147,024 1,185,507 958,204 949,136
38,098,943 40,466,847 34,224,879 38,624,316 36,148,406 45,170,102 42,169,024
1,386,597 1,743,929 2,114,054 2,617,625 2,518,708 2,536,988 2,595,606
1,667,699 1,649,715 2,045,399 1,958,551 2,077,589 2,123,162 2,738,673
6,996,463 7,807,706 11,989,337 11,730,347 10,839,483 14,720,167 8,261,895
10,050,759 11,201,350 16,148,790 16,306,523 15,435,780 19,380,317 13,596,174
$ 48,149,702 $ 51,668,197 $ 50,373,669 $ 54,930,839 $ 51,584,186 $ 64,550,419 $ 55,765,198
$ 1,008,691 $ 1,191,417 $ 2,252,945 $ 1,872,350 $ 1,731,639 $ 1,879,576 $ 2,482,811
2,096,677 1,915,631 2,120,366 2,519,515 2,239,431 2,860,543 5,165,280
1,747,617 1,684,287 2,579,329 1,765,005 3,040,501 4,684,733 4,341,128
84,065 105,755 65,233 142,277 119,195 363,583
6,516,004 6,952,717 6,924,053 6,318,382 6,508,556 7,756,718 6,880,727
230,500 1,049,774 2,173,900 1,804,398 2,021,422 11,785,524 15,691,507
11,599,489 12,877,891 16,156,348 14,344,883 15,683,826 29,086,289 34,925,036
1,021,840 1,025,732 1,203,187 1,727,206 1,773,388 1,791,302 3,013,314
2,178,298 2,402,189 2,629,694 2,733,346 2,899,180 3,058,382 3,275,083
9,065,554 11,895,044 14,907,664 15,985,607 18,804,645 20,918,497 20,926,322
4,583,764 2,871,726 1,675,987 1,111,346 2,066,696 5,806,590 7,670,388
16,849,456 18,194,691 20,416,532 21,557,505 25,543,909 31,574,771 34,885,107
$ 28,448,945 $ 31,072,582 $ 36,572,880 $ 35,902,388 $ 41,227,735 $ 60,661,060 $ 69,810,143
152
CITY OF TIGARD,OREGON
CHANGES IN NET POSITION(CONTINUED)
for the last ten fiscal years
(accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2008 _ 2009 2010
NET(EXPENSE)REVENUE
Governmental activities $ (16,341,333) $ (30,398,918) $ (31,215,702)
Business-type activities 713,601 (56,667) 526,230
Total primary government net expenses (15,627,731) (30,455,585) (30,689,471)
GENERAL REVENUES AND OTHER
CHANGES IN NET POSITION
Governmental activities:
Property taxes 9,133,664 12,526,541 16,070,846
Franchise fees 4,551,169 3,887,078 4,548,520
Unrestricted intergovernmental revenues 2,912,647 8,925,520 6,993,245
Interest earnings 1,503,619 947,247 308,853
Miscellaneous 817,054 626,075 376,884
Transfers between Governmental and Business-type - - 1,276,800
Total governmental activities 18,918,153 26,912,461 29,575,148
Business-type activities:
Interest earnings 1,039,593 649,231 153,300
Miscellaneous 150,015 105,567 204,427
Unrestricted intergovernmental revenues - - -
Transfers between Governmental and Business-type - - (1,276,800)
Total business-type activities 1,189,608 754,798 (919,073)
Total primary government 20,107,761 27,667,259 28,656,075
CHANGES IN NET POSITION
Governmental activities(restated) 2,576,820 (3,486,457) (1,640,554)
Business-type activities 1,903,209 698,131 (392,843)
Total primary government $ 4,480,029 $ (2,788,325) $ (2,033,396)
Source: Comprehensive Annual Financial Report of the City.
153
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2011 2012 2013 2014(Restated) 2015 2016 2017
$ (26,499,454) $ (27,588,956) $ (18,068,531) $ (24,279,433) $ (20,464,580) $ (16,083,813) $ (7,243,988)
6,798,697 6,993,341 4,267,742 5,250,982 10,108,129 12,194,454 21,288,933
(19,700,757) (20,595,615) (13,800,789) (19,028,451) (10,356,451) (3,889,359) 14,044,945
13,604,285 15,182,467 15,338,744 15,796,663 16,523,361 17,177,591 17,616,798
4,375,420 4,880,635 5,855,956 5,542,647 5,687,456 5,734,540 5,890,113
2,838,802 4,798,949 2,500,240 2,955,652 3,004,341 2,840,903 2,074,428
296,964 283,273 248,812 421,211 434,401 688,087 824,213
5,284,426 1,583,989 316,512 776,154 247,154 228,779 268,380
1,629,245 2,991,566 120,227 1,017,893 (56,368) 817,481 291,314
28,029,142 29,720,879 24,380,491 26,510,220 25,840,345 27,487,381 26,965,246
115,828 73,228 114,661 270,415 131,485 302,890 106,628
3,269 155,164 157,360 144,767 177,903 193,645 270,628
- - - - - 127,148 285,524
(1,629,245) (2,991,566) (120,227) (1,017,893) 56,368 (817,481) (291,314)
(1,510,148) (2,763,174) 151,794 (602,711) 365,756 (193,798) 371,466
26,518,994 26,957,705 24,532,285 25,907,509 26,206,101 27,293,583 27,336,712
1,529,688 2,131,923 6,311,960 2,230,787 5,375,765 11,403,568 19,721,258
5,288,549 4,230,167 4,419,536 4,648,271 10,473,885 12,000,656 21,660,399
$ 6,818,237 $ 6,362,090 $ 10,731,496 $ 6,879,058 $ 15,849,650 $ 23,404,224 $ 41,381,657
154
CITY OF TIGARD,OREGON
FUND BALANCES OF GOVERNMENTAL FUNDS
for the last ten fiscal years
(modified accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2008 2009 _ 2010
GENERAL FUND
Reserved $ - $ 419,488 $ 273,726
Unreserved 10,794,057 7,338,828 7,067,526
Nonspendable - - -
Unassigned - - -
Total General Fund $ 10,794,057 $ 7,758,316 $ 7,341,252
ALL OTHER GOVERNMENTAL FUNDS
Reserved $ - $ - $ -
Unreserved,reported in:
Special revenue funds 12,481,406 11,097,739 8,094,802
Debt service funds 682,960 167,169 1,927,247
Capital projects funds 1,309,774 1,373,469 4,945,265
Nonspendable - - -
Restricted - - -
Committed - - -
Assigned - - -
Unassigned - - -
Total all other governmental funds $ 14,474,140 $ 12,638,377 $ 14,967,314
*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.
155
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2011 2012 2013 2014 2015 2016 2017
$ - $ - $ - $ - $ - $ - $ -
305,164 471,975 472,941 508,374 542,543 664,254 706,412
7,247,383 7,378,411 9,687,736 11,474,700 12,115,436 12,970,670 14,884,712
$ 7,552,547 $ 7,850,386 $ 10,160,677 $ 11,983,074 $ 12,657,979 $ 13,634,924 $ 15,591,124
$ - $ - $ - $ - $ - $ - $ -
- -
14,986 16,055 11,225 - 16,485
16,855,664 15,568,787 14,859,784 12,504,001 11,791,605 18,250,934 31,914,910
2,263,088 3,217,309 4,020,435 4,457,233 2,801,857 3,260,236 4,341,838
417,479 428,823 670,223 905,166 1,156,788 1,597,773 1,725,086
(382,937) (498,110) (601,324) (752,925) (352,684) _ (617,329) (725,296)
$ 19,153,294 $ 18,716,809 $ 18,964,104 $ 17,129,530 $ 15,408,791 $ 22,491,614 $ 37,273,023
156
CITY OF TIGARD,OREGON
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
for the last ten fiscal years
(modified accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2008 2009 _ 2010
REVENUES
Taxes $ 12,137,977 $ 12,405,880 $ 16,078,788
City gas tax* - - -
Franchise fees 4,551,169 3,887,078 4,548,520
Special assessments 120,678 87,208 284,202
Licenses and permits 1,871,841 1,282,438 1,229,880
Intergovernmental revenues 7,807,667 7,560,542 6,358,393
Charges for service 3,469,358 2,536,590 3,083,087
Fines and forfeitures 847,069 804,128 915,524
Interest earnings 1,475,808 930,382 300,126
Miscellaneous 747,532 513,392 249,180
Total revenues 33,029,099 30,007,640 33,047,700
EXPENDITURES
Current operating:
Community services 13,801,110 18,214,907 19,418,498
Public works 2,757,289 3,463,390 5,129,767
Community development 5,191,797 7,184,355 4,674,008
Policy and administration 397,510 907,661 787,209
Debt service:
Principal 922,907 794,853 875,513
Interest 454,403 530,403 557,061
Refunded bonds - - -
Refunding bond issuance cost - - -
Capital outlay 6,319,092 3,940,781 7,373,043
Total expenditures 29,844,108 35,833,344 38,815,099
Excess(deficiency)of revenues
over(under)expenditures 3,184,991 (5,825,705) (5,767,399)
OTHER FINANCING SOURCES(USES)
Proceeds from bond/long-term note - - 7,250,000
Operating transfers in 4,896,127 3,342,328 4,965,010
Operating transfers out (9,299,491) (2,357,267) (3,688,210)
Total other financing sources(uses) (4,403,364) 985,061 8,526,800
Net change in fund balances $ (1,218,373) $ (4,840,644) $ 2,759,401
Debt services as a percentage of non-capital
expenditures 6.22% 4.34% 4.77%
*City gas tax was broken out of intergovernmental revenues beginning in fiscal year 2013.
Source: Comprehensive Annual Financial Report of the City.
157
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2011 2012 2013 2014 2015 2016 2017
$ 16,753,457 $ 17,767,128 $ 18,208,253 $ 18,822,449 $ 19,575,665 $ 20,191,927 $ 20,704,055
- - 830,031 638,852 558,740 712,408 844,866
4,375,420 4,880,635 5,724,192 5,542,647 5,691,960 5,732,448 5,886,791
40,164 38,776 43,170 258,831 35,359 65,243 52,146
2,590,516 2,444,551 3,175,118 3,098,875 4,030,120 5,751,472 6,662,790
9,834,646 6,586,757 6,040,986 6,386,961 6,370,732 6,684,667 8,228,693
3,127,307 3,059,653 6,632,779 5,937,889 5,303,984 10,974,400 17,664,190
907,216 1,092,296 1,038,948 929,293 924,266 972,560 713,059
287,284 262,080 254,237 424,221 434,401 653,879 799,748
47,489 633,575 206,443 312,815 413,736 220,894 349,098
37,963,499 36,765,451 42,154,157 42,352,833 43,338,963 51,959,898 61,905,436
19,182,018 19,638,469 18,636,382 19,420,335 20,325,635 20,784,186 21,925,169
6,059,692 6,354,390 6,551,980 6,914,185 7,512,446 7,606,128 8,291,205
3,975,257 3,902,223 3,937,089 4,219,481 4,640,737 6,981,903 5,807,836
711,743 819,034 711,385 701,172 778,840 831,876 787,681
2,590,456 1,894,125 1,992,500 2,445,993 2,117,045 2,361,892 2,378,100
67,294 1,652,691 1,264,795 1,178,637 1,118,238 1,059,733 977,539
8,836,046 - - - - - -
81,236 - - - - - -
19,247,942 4,037,766 6,357,256 7,657,993 8,924,317 6,200,291 4,705,720
60,751,684 38,298,698 39,451,387 42,537,796 45,417,258 45,826,009 44,873,250
(22,788,185) (1,533,247) 2,702,770 (184,963) (2,078,295) 6,133,889 17,032,186
26,214,495 - - - 1,300,000 1,650,000 -
16,977,142 6,969,663 4,735,619 6,420,053 6,178,215 6,378,318 4,755,215
(16,006,177) (5,575,062) (4,880,803) (6,247,267) (6,445,754) (6,102,439) (5,049,792)
27,185,460 1,394,601 (145,184) 172,786 1,032,461 1,925,879 (294,577)
$ 4,397,275 $ (138,646) $ 2,557,586 $ (12,177) $ (1,045,834) $ 8,059,768 $ 16,737,609
5.20% 11.55% 10.92% 11.06% 8.60% 9.17% 8.49%
158
CITY OF TIGARD,OREGON
GOVERNMENTAL REVENUES
For the last ten fiscal years
Program Revenues
Fiscal Charges Operating Capital
Year Ended for Grants and Grants and Franchise
June 30 Services Contributions Contributions Taxes Fees
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
2017 12,352,802 6,880,727 15,691,507 17,616,798 5,890,113
CITY OF TIGARD,OREGON
BUSINESS-TYPE REVENUES
For the last ten fiscal years
Program Revenues
Fiscal Charges Operating Capital
Year Ended for Grants and Grants and Franchise
June 30 Services Contributions Contributions Taxes Fees
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 - -
2017 27,214,719 - 7,670,388 - -
Source: Comprehensive Annual Financial Report of the City-Statement of Activities.
159
General Revenues
Gain(Loss)on
Intergovernmental Interest Disposition of
Revenues Earnings Capital Assets Miscellaneous Total
$ 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
2,074,428 824,213 - 268,380 61,598,968
General Revenues
Gain(Loss)on
Intergovernmental Interest Disposition of
Revenues Earnings Capital Assets Miscellaneous Total
$ - $ 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
285,524 106,628 - 270,628 35,547,887
160
CITY OF TIGARD,OREGON
GOVERNMENTAL EXPENSES BY FUNCTION
For the last ten fiscal years
Fiscal
Year Ended Community Community Policy and
June 30 Services Public Works Development Administration
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
2017 23,461,915 8,342,833 5,831,389 3,583,751
CITY OF TIGARD,OREGON
BUSINESS-TYPE EXPENSES BY FUNCTION
For the last ten fiscal years
Fiscal
Year Ended
June 30 Sewer Stormwater Water Total
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
2017 2,595,606 2,738,673 8,261,895 13,596,174
Source: Comprehensive Annual Financial Report of the City.
161
Interest on
Long-Term
Debt Total
$ 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
949,136 42,169,024
162
CITY OF TIGARD,OREGON
GENERAL GOVERNMENTAL REVENUES BY SOURCES-
BUDGETARY BASIS
For the last ten fiscal years
Fiscal Licenses Inter-
Year Ended Franchise and governmental
June 30 Taxes Fees Permits Revenues
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
2017 21,548,921 5,886,791 6,662,790 8,228,693
* Includes special assessments collections,interest earnings,and other revenues.
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
163
Charges
For Fines and Miscellaneous
Services Forfeitures Revenues* Total
$ 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
17,664,190 713,059 1,200,992 61,905,436
164
CITY OF TIGARD,OREGON
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION-
BUDGETARY BASIS
For the last ten fiscal years
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
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
2017 21,925,169 14,099,041 787,681 4,705,720 3,355,639 44,873,250
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
165
CITY OF TIGARD,OREGON
MARKET VALUE AND ASSESSED VALUE OF TAXABLE PROPERTY
For the last ten fiscal years
Fiscal Assessed Value 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
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%
2017 5,685,260,390 269,725,107 168,515,800 6,123,501,297 4.66 8,989,238,324 68.12%
* per$1,000 of assessed value/including phase in rates
Source: Washington County Assessment and Taxation
166
CITY OF TIGARD,OREGON
PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS
(Dollars per$1,000 of Assessed Value rounded to the nearest cent)
For the last ten fiscal years
City of Tigard
Direct Rates
Fiscal Total Metzger
Year Ended Perm Debt Urban City of Water District Washington
June 30 Rate Svc Renewal Phase In Tigard Combined County
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
2017 2.51 0.39 0.08 1.68 4.66 - 2.95
Taxes levied may be composed of three types of levies: (1)a base operating levy,(2)a special operating levy approved by the
voters in the district and (3)a debt service levy. Each district with outstanding General Obligation bonded debt is required to
levy taxes sufficient with other available funds,to meet principal and interest payments when due.
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.
167
Overlapping Rates
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
$ 7.59 $ 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
7.41 7.92 2.09 - 0.68 - 0.71 26.42
168
CITY OF TIGARD,OREGON
PRINCIPAL PROPERTY TAXPAYERS
For current and nine years ago
2017 2008
Percentage Percentage
Taxable of Total City Taxable of Total City
Taxpayer Assessed Value Rank Assessed Value Assessed Value Rank Assessed Value
Pacific Realty Associates $ 219,780,947 1 4.02% $ 166,182,644 1 3.63%
PPR Washington Square LLC 146,992,934 2 2.69% 107,197,341 2 2.34%
Lincoln Center LLC 92,098,279 3 1.68% 76,653,130 3 1.68%
Comcast Corporation 44,459,100 4 0.81%
ICON Owner Pool 1 West LLC 43,248,510 5 0.79%
Portland General Electric 34,885,000 6 0.64% 28,463,317 7 0.62%
ROIC Oregon LLC 33,234,800 7 0.61%
Macy's Department Stores 26,930,090 8 0.49%
FO Portland Property LLC 25,645,940 9 0.47%
SPUS7 Arbor Heights LP 24,963,910 10 0.46%
Verizon Northwest Inc 54,582,283 4 1.19%
Sprint Communications 41,797,708 5 0.91%
Calwest Industrial Holdings, LLC 34,961,527 6 0.76%
Northwest Natural Gas 24,785,115 8 0.54%
Robinson,Constance(Trust) 23,188,485 9 0.51%
Nesbitt Portland Property LLC _ 22,235,534 10 0.49%
Total $ 692,239,510 12.66% $ 580,047,084 12.67%
Source: Washington County Assessment&Taxation records.
169
CITY OF TIGARD,OREGON
PROPERTY TAX LEVIES AND COLLECTIONS
For the last ten fiscal years
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
2008 $ 12,528,573 $ 11,895,526 94.95% $ 229,506 $ 12,125,032 96.78% $ 425,546 3.40%
2009* 12,636,185 12,119,732 95.91% 260,455 12,380,187 97.97% 549,855 4.35%
2010 12,999,886 12,877,595 99.06% 331,616 13,209,211 101.61% 597,164 4.59%
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 17,642,931 16,861,073 95.57% 241,354 17,102,427 96.94% 792,515 4.49%
2017 18,145,192 17,322,014 95.46% 230,652 17,552,666 96.73% 857,408 4.73%
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.
170
CITY OF TIGARD,OREGON
SPECIAL ASSESSMENT COLLECTIONS
For the last ten fiscal years
Fiscal Current Ratio of Total
Year Ended Assessments Assessments Collections Assessments Outstanding
June 30 Due(1) Collected(2) to Amount Due Added Assessments
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
2017 83,100 52,146 62.75% 24,877 373,342
(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.
171
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
Percent of
Fiscal Total General Debt Service to
Year Ended Total Debt Governmental Total General
June 30 Principal Interest Service Expenditures Expenditures
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%
2017 2,378,100 977,539 3,355,639 44,873,250 7.48%
Source: Comprehensive Annual Financial Report of the City.
172
CITY OF TIGARD,OREGON
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND
NET BONDED DEBT PER CAPITA
For the last ten fiscal years
Gross General 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
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
2017 51,902 6,123,501,297 20,675,137 1,117,556 19,557,581 0.32% 376.82
Source: City budget documents,Comprehensive Annual Financial Reports of the city and Washington Department of
Assessment and Taxation.
173
CITY OF TIGARD,OREGON
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30,2017
Percent Amount
Applicable Applicable
Net Debt Inside City of Inside City of
Jurisdiction Outstanding Tigard * Tigard
Tigard/Tualatin School District#23-J $ 271,154,318 46.55% $ 126,213,387
Metro 183,510,000 3.27% 6,004,998
Beaverton School District#48 1,076,544,613 3.75% 40,393,030
Portland Community College 302,275,000 4.12% 12,452,823
Washington County 232,180,277 10.30% 23,915,265
Tualatin Valley Fire&Rescue District 48,820,000 11.76% 5,740,451
Sub-Total of Overlapping Debt 2,114,484,208 214,719,954
City of Tigard 21,943,828 100.00% 21,943,828
Total for Overlapping Debt $ 2,136,428,036 $ 236,663,782
*The City of Tigard does not calculate this percentage;it is provided by the State of Oregon.
Source: Oregon State Treasury Debt Management Division.
174
CITY OF TIGARD,OREGON
COMPUTATION OF LEGAL DEBT MARGIN
For the last ten fiscal years
2008 2009 2010
Debt limit $ 238,791,040 $ 244,850,530 $232,145,773
Total net debt applicable to limit 10,547,958 10,011,895 16,708,100
Legal debt margin $ 228,243,082 $ 234,838,635 $215,437,673
Total net debt applicable to the limit
as a percentage of debt limit 4.42% 4.09% 7.20%
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.
175
2011 2012 2013 2014 2015 2016 2017
$217,807,538 $207,504,714 $201,826,506 $ 210,982,614 $ 230,989,826 $242,482,552 $269,677,150
32,300,000 30,735,000 28,800,576 26,820,000 24,775,000 22,670,000 20,505,000
$ 185,507,538 $ 176,769,714 $ 173,025,930 $ 137,195,419 $ 206,214,826 $219,812,552 $249,172,150
14.83% 14.81% 14.27% 12.71% 10.73% 9.35% 7.60%
Legal Debt Margin Calculation at June 30,2016
True cash value(2016-2017) $ 8,989,238,324
Limit as a percent 3%
Debt Limit(as a percent of real market value) 269,677,150
Debt applicable to limit:
Gross bonded debt $ 21,943,828
Excludable debt-Bancroft improvement bonds,bond premium,
capital lease and commercial bank loan (1,438,828)
Debt subject to limitation 20,505,000
Legal debt margin-amount available for future indebtedness 249,172,150
Total net debt applicable to the limit as a percent of debt limit 7.60%
176
CITY OF TIGARD,OREGON
RATIO OF DEBT BY TYPE
For the last ten fiscal years
Governmental Activities
Fiscal General Bank
Year Ended Obligation Bancroft Loan Capital
June 30 Population Bonded Debt Bonded Debt Payable Lease
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
2017 51,902 20,675,137 213,219 1,040,000 15,472
*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.
177
Business-type Activities
Long-Term Percentage
Note Payable Notes Payable Revenue Total Primary of Personal Per
Debt Debt Bonds* Government Income** Capita
$ 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
1,907,007 136,420,282 160,271,117 10.12% 3,088
178
CITY OF TIGARD,OREGON
COMPUTATION OF WATER REVENUE BONDS
DEBT COVERAGE
For the last three fiscal years(l)
2015 2016 2017
Gross revenues $ 18,944,301 $ 20,918,497 $ 20,926,322
System Development Charges(SDC) related:
SDC Fund interest earnings 9,294 35,173 6,660
Reimbursement fee receipts(2) 308,896 1,242,297 3,010,263
Improvement fee receipts(3) 503,853 1,569,645 3,521,776
Total SDC-related 822,043 2,847,115 6,538,699
Operating expense:
Salaries and wages 1,462,677 1,117,286 1,148,575
Contracted services 336,178 353,396 1,785,477
Water purchases 2,644,491 4,212,357 17,648
General,admin and other 2,781,892 3,111,194 3,572,450
Total operating expenses 7,225,238 8,794,233 6,524,150
Net revenues(including SDCs) 12,541,106 14,971,379 20,940,871
Net revenues(excluding SDCs) $ 11,719,063 $ 12,124,264 $ 14,402,172
Debt service-first lien bonds:
2012 bonds $ 4,719,850 $ 4,719,850 $ 6,561,800
2015 bonds - 1,378,238 1,670,300
Total debt service $ 4,719,850 $ 6,098,088 $ 8,232,100
Debt service coverage-first lien bonds
(excluding system development charges) 2.48 1.99 1.75
(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.
179
CITY OF TIGARD,OREGON
DEMOGRAPHICS STATISTICS
For the last ten fiscal years
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(Z) Income(3) of dollars)(3) Area(4)
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 12,799 35,837 1,836,754 4.9%
2017 51,902 117,982 12,808 34,312 1,780,861 3.7%
Sources of Information:
(1)United States Census Bureau
(2)Tigard/Tualatin School District#23-.I-City student totals not available
(3)Washington State University-Northwest Income Indicators Project
(4)US Department of Labor, Bureau of Labor Statistics
180
CITY OF TIGARD,OREGON
PRINCIPAL EMPLOYERS
For current year and nine years ago
2017 2008
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Tigard-Tualatin School District#23-i 779 1 2.63% 779 2 2.43%
Comcast of Oregon Inc 624 2 2.11%
Nordstrom 422 3 1.43% 461 4 1.44%
Costco Wholesale Corporation 398 4 1.34% 300 7 0.93%
Macy's Federated Department Store 372 5 1.26% 704 3 2.19%
Oregon Public Employees Retirement System 364 6 1.23% 396 5 1.23%
City of Tigard 7 0.00% 283 8 0.88%
The Cheesecake Factory 250 8 0.84% 250 10 0.78%
Gerber Legendary Blades 232 9 0.78%
Wumbler Services dba Service Master Solutions 220 10 0.74%
HSBC Card Services 1,116 1 3.48%
Providence Health System 377 6 1.17%
Rockwell Collins Inc 264 9 0.82%
Total 3,661 12.36% 4,930 15.35%
Source: City of Tigard Adopted Budget and Tigard Chamber of Commerce.
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CITY OF TIGARD,OREGON
PROPERTY VALUE AND CONSTRUCTION
For the last ten fiscal years
Fiscal Commercial Construction(1) Residential Construction(1)
Year Ended Number of Number of
June 30 Permits Value Permits Value
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
2017 7 12,874,739 450 156,457,972
(1)From City of Tigard Building Department. Multi-family permits are included in the number of permits issued for
residential construction.
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CITY OF TIGARD,OREGON
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
For the last ten fiscal years
Function/Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GOVERNMENTAL ACTIVITIES
Community services
Police 93.00 93.00 90.10 90.10 91.10 84.50 84.50 82.50 83.50 87.50
Library 41.90 41.90 38.80 38.80 38.80 34.80 34.80 34.80 38.30 39.70
Public works
Administration 8.85 8.85 9.35 9.75 8.75 9.00 9.20 9.20 9.00 9.50
Parks maintenance 9.75 9.75 9.75 9.75 9.75 9.75 9.75 10.75 11.67 12.17
Recreation - - - - - - - - - 0.33
Street maintenance 7.00 7.00 7.00 7.00 7.00 7.00 7.25 7.25 6.33 7.00
Healthy Streams - - - - - 1.00 - - - -
Engineering(') 10.50 10.50 11.80 11.80 11.80 12.00 13.00 14.00 14.00 17.00
Community development
Administration 3.00 3.00 2.00 2.00 3.00 2.00 2.00 2.00 3.00 3.00
Building inspection 17.80 6.20 6.24 7.20 8.10 7.80 8.80 9.00 9.00 10.00
Development Services 10.20 10.20 7.56 7.80 5.90 4.80 3.80 3.80 3.80 -
Community Planning 7.00 7.00 7.00 7.00 9.00 9.00 9.00 9.00 9.00 16.50
Development Engineering(b) 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 2.00
Policy and Administration
City management 5.30 5.30 4.50 4.50 4.20 4.00 4.00 5.00 5.50 4.90
Human resources 5.00 5.00 5.00 5.00 5.00 4.80 4.80 4.50 4.80 4.50
Information technology 7.00 7.00 7.00 7.00 7.00 6.30 5.80 7.00 7.00 8.00
Risk management 2.50 2.50 2.30 2.30 2.30 2.10 2.10 2.10 2.30 1.50
Finance administration 3.00 3.00 5.30 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Financial operations 5.50 5.50 4.50 4.50 4.50 4.60 4.60 4.60 4.60 4.80
Utility Billing(d) 6.50 6.50 5.50 5.50 6.30 6.50 6.80 6.80 6.80 6.80
Design&Communication 4.50 4.50 3.05 3.05 3.25 3.05 3.05 3.05 3.05 4.25
Contracts&Purchasing(e) - - - 2.30 2.30 1.80 2.00 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 3.85
Municipal court 3.25 3.25 3.50 3.75 3.75 3.65 3.65 3.65 3.65 3.50
Fleet maintenance(g) 2.50 2.50 2.00 2.60 2.60 1.50 0.95 1.95 1.80 2.35
Property management(g) 4.25 4.25 4.25 4.25 4.25 3.75 3.85 4.85 5.20 4.90
BUSINESS-TYPE ACTIVITIES
Public works
Sanitary sewer 5.35 5.35 5.25 5.25 6.25 6.25 6.50 5.50 6.00 6.50
Stormwater 7.10 7.10 7.00 7.00 6.25 5.25 5.50 6.50 7.00 7.50
Water 16.30 16.30 13.00 12.00 12.75 12.50 12.00 13.00 13.00 13.00
Total 296.05 283.45 267.60 267.45 271.75 255.85 256.85 261.95 268.65 286.05
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.
I`I Downtown Redevelopment was budgeted with Long range planning until FY 2008-09.
(d) Utility Billing was budgeted with Financial operations until FY 2007-08.
lel 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.
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CITY OF TIGARD,OREGON
OPERATING INDICATORS BY FUNCTION/PROGRAM
For the last ten fiscal years
Functions/Programs 2008 2009 2010
GOVERNMENTAL ACTIVITIES
Community services
Police-number of traffic citations issued 6,383 6,925 9,101
Police-number of calls for service 51,377 50,115 51,158
Library-number of items in collection 176,210 193,710 22,400
Library-materials checked out each year 1,131,093 1,249,462 1,462,304
Public works
Acres of park land maintained 184 189 189
Crack sealing completed annually(linear feet) 160,000 160,000 160,000
Vehicles maintained to industry standard 153 158 160
Community development
Number of inspections(Tigard) 23,500 7,778 8,700
Number of permits(all types) in Tigard 4,850 2,278 3,025
Number of development applications 450 508 370
Policy and administration
Number of job applications 2,300 2,215 1,900
Laptops and computers to maintain 435 451 488
Insured value of city's real property(in millions) 74 78 82
Number of utility bills sent** 115,574 114,500 116,800
Average fine amount collected 94 90 90
BUSINESS-TYPE ACTIVITIES
Sewer
Miles of sewer lines cleaned(annual goal) 53 47 41
Miles of sewer lines video inspected(annual goal) 23 23 23
Stormwater
Miles of stormwater lines cleaned 44 30 31
Number of water quality facilities*** 75 78 72
Total number of catch basins cleaned*** 4,915 4,437 4,437
Water
Number of accounts 17,870 17,900 17,900
**City of Tigard started monthly utility billing in January 2011.
***GIS data improvement
Source: City of Tigard Finance Department
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2011 2012 2013 2014 2015 2016 2017
7,021 8,308 8,939 7,177 6,462 5,745 5,057
49,358 52,226 52,420 48,840 47,247 43,299 41,874
21,000 244,154 250,454 245,000 248,225 253,725 229,344
1,507,248 1,522,422 1,459,334 1,385,376 1,280,376 1,243,774 1,159,446
233 243 248 253 255 301 301
160,000 160,000 160,000 160,000 160,000 160,000 107,727
149 149 148 157 160 159 162
9,990 10,000 12,500 12,382 9,009 10,814 27,551
3,220 3,047 3,049 3,404 2,958 3,860 4,281
370 381 357 341 251 388 818
1,000 1,100 2,500 2,000 2,100 2,200 3,726
491 491 503 523 525 530 585
82 82 82 82 82 82 120
176,274 236,389 238,400 241,500 244,000 256,500 248,560
126 126 140 140 160 160 149
41 41 42 42 42 42 51
23 23 24 21 21 24 23
31 31 32 21 21 21 23
90 90 125 126 126 126 164
4,368 4,368 2,768 2,840 2,840 2,917 3,939
18,129 18,265 18,350 19,207 19,737 20,500 21,509
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CITY OF TIGARD,OREGON
CAPITAL ASSETS STATISTICS BY FUNCTION
For the last ten fiscal years
Functions/Programs 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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 14 14 14 18 20 20 20 20 21
Acres of park and greenspaces 348.0 396.0 396.0 435.4 447.0 493.0 499.0 514.0 514.0 548.0
Miles of streets 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 157.0
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 160.4 161.0 162.8 164.5 166.1 166.9 166.9 166.9 168.0 168.3
Stormwater
Total miles of stormwater lines* 131.0 131.0 131.0 131.0 131.0 126.0 130.0 130.0 130.0 131.2
Number of water quality facilities* 77 79 79 92 92 125 126 126 126 164
Water
Water mains in miles 225.1 225.1 235.0 245.0 248.0 248.0 248.0 248.0 248.0 251.3
Number of reservoirs 13 13 13 13 13 13 13 13 14 14
Source:City of Tigard Finance Department
*GIS data improvement
Note: No capital assets indicators are available for development services functions.
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CITY OF TIGARD,OREGON
MISCELLANEOUS STATISTICAL DATA
June 30,2017
Date of Incorporation 1961
Mayor/Council with a City Manager as the administrative
Form of government
head of the government of the City
Area (Square Miles-incorporated area) 13
Miles of streets 157
Police protection:
-Number of stations 1
-Number of sworn police officers 69
Education:
- Attendance centers 17
-Number of teachers\FTE 708
-Number of students 12,808
Building Permits issued (2016-2017) 813
Recreation and culture:
-Number of parks 21 developed and 6 undeveloped,totaling 27 at 301 acres
-Greenways 247 acres
-Number of libraries 1
-Number of volumes(estimated) 229,344
Employees:
-Classified service(union) 129
-Unclassified (non-union) 110
Information obtained from the various departments of the City of Tigard,Oregon and Tigard/Tualatin School District#23-.I
City student totals not available.
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Audit Comments and
Disclosure Requirements
MOSSADAMS
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, 2017 and have issued our report thereon dated January 31, 2018. 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:
Instances of Non-
Compliance
OAR Section 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 None Noted
Assets,Budget and Actual(Each Fund)
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 None Noted
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
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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.
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. We did identify a deficiency in internal
control over financial reporting that we consider to be material weaknesses as defined above. Discussion
of this deficiency can be found in our Communication to Those Charged with Governance and Internal
Control Related Matters dated January 31, 2018.
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.
t‘4/60,4--
For Moss Adams LLP
Portland, Oregon
January 31, 2018
189