2018 City of Tigard CAFR CityTigard,o Oregon
Comprehensive Annual
Financial Report
FISCAL YEAR ENDED JUNE 30, 2018
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TIGARD
13125 SW Hall Boulevard I Tigard, OR 97223 I www.tigard-or.gov
On the Cover:
Tigard's strategic vision is for Tigard to be "The most walkable community in the Pacific
Northwest where people of all ages and abilities enjoy health and interconnected lives". Goal
four of the vision is to "Fund the vision while maintaining core services". Tigard has been
making progress on goal four over the last several years by finding grants and other funding
sources for projects that support the vision.
The primary focus for the city this year is funding for maintaining services. Funding structures
set by state law limit revenue growth and service levels are slowly eroding. In order to maintain
core services, Tigard needs a substantial new revenue source and is undertaking a public
process that could lead to placing a local option property tax levy on the ballot in May
2018. Depending on the outcome of the process, this could help fund services like public
safety, parks maintenance, recreation opportunities, library services, and other services
important to the Tigard community. These core services are represented in the cover
photos. For more information, please see the Budget Transmittal, on page 1.
The pictures from upper left to lower bottom are:
• Police Chief Kathy McAlpine welcomes residents to the Police Open House where Tigard
Police services and facilities were displayed and discussed.
• Library patrons utilize the wealth of library services. Did you know that 80% of the
materials at the Public Library are checked out at least once every year?
• Parks staff maintain over 550 acres of parkland and open space
• Recreation programs across the city provide opportunities to connect
• Commander McDonald shows a Tigard youth how to wear police gear during the Police
Open House
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1 •
. . .
T I GARD
City of Tigard, Oregon
Comprehensive Annual Financial Report
For the fiscal year ended June 30, 2018
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
Report of Independent Auditors 12
Management's Discussion and Analysis 16
Basic Financial Statements:
Government-Wide Financial Statements
Statement of Net Position 33
Statement of Activities 34
Fund Financial Statements
Major Governmental Funds:
Balance Sheet 36
Reconciliation of the Balance Sheet to the Statement of
Net Position 37
Statement of Revenues, Expenditures, and Changes in Fund Balance 38
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance to the Statement of Activities 39
Proprietary Funds:
Statement of Net Position 40
Statement of Revenues, Expenses,and Changes in Fund Net Position 41
Statement of Cash Flows 42
Pension Trust Fund:
Statement of Fiduciary Net Position 43
Statement of Changes in Fiduciary Net Position 44
Notes to Basic Financial Statements 45
Required Supplementary Information:
Schedules of Revenues and Expenditures—Budget and Actual:
General Fund 97
Gas Tax Fund 98
Schedule of the City's Proportionate Share of the Net Pension Liability(Asset) 99
Schedule of City's Contributions—Oregon Public Employees Retirement System 100
Schedule of the Changes in the City's Total OPEB Liability and
Related Ratios—Implicit Rate Subsidy Plan 101
Schedule of the City's Proportionate Share of the Net OPEB Liability(Asset)—Oregon
Public Employees Retirement System, Retirement Health Insurance Account 102
Schedule of the City's Contributions—Oregon Public Employees Retirement System,
Retirement Health Insurance Account 103
Other Supplementary Information:
Nonmajor Governmental Funds Combining Statements:
Combining Balance Sheet 104
Combining Statement of Revenues, Expenditures,and Changes in Fund Balances 105
Special Revenue Funds:
Combining Balance Sheet—Nonmajor Special Revenue Funds 106
City of Tigard, Oregon
Table of Contents,continued
Financial Section,Continued
Other Supplementary Information,Continued:
Combining Statement of Revenues, Expenditures,and Changes in Fund Balance 108
Schedules of Revenues and Expenditures—Budget and Actual:
City Gas Tax Fund 110
Electrical Inspection Fund 111
Building Fund 112
Criminal Forfeiture Fund 113
Urban Forestry Fund 114
Parks Utility Fund 115
Library Fund 116
Debt Service Funds:
Combining Balance Sheet—Nonmajor Debt Service Funds 117
Combining Statement of Revenues, Expenditures,and Changes in Fund Balance 118
Schedules of Revenues and Expenditures—Budget and Actual:
Bancroft Bond Debt Service Fund 119
General Obligation Debt Service Fund 120
Urban Renewal Agency Debt Service Fund 121
Capital Projects Funds:
Combining Balance Sheet—Nonmajor Capital Projects Funds 122
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance—Nonmajor Capital Projects Funds 124
Schedule of Revenues and Expenditures—Budget and Actual:
Facility Fund 126
Underground Utility Fund 127
Street Maintenance Fee Fund 128
Transportation SDC Fund 129
Parks Capital Fund 130
Parks Bond Fund 131
Urban Renewal Agency Capital Projects Fund 132
Major Capital Projects Funds Schedule of Revenues and Expenditures—Budget and Actual:
Transportation Development Tax Fund 133
Parks SDC Fund 134
Transportation CIP Fund 135
Proprietary Funds:
Enterprise Funds:
Schedules of Revenues and Expenditures—Budget and Actual:
Sanitary Sewer Fund 136
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Sanitary Sewer Fund 137
Stormwater Fund 138
Water Quality and Quantity Fund 139
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Stormwater Funds 140
Water Fund 141
Water SDC Fund 142
Water CIP Fund 143
Water Debt Service Fund 144
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Water Funds 145
City of Tigard, Oregon
Table of Contents,continued
Financial Section,Continued
Other Supplementary Information,Continued:
Reconciliation of Budgetary Fund Balance to Generally Accepted
Accounting Principles Basis Net Position 146
Internal Service Funds:
Combining Statement of Net Position 147
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 148
Combining Statement of Cash Flows 149
Internal Service Funds,Continued:
Schedules of Revenues and Expenditures—Budget and Actual:
Central Service Fund 150
Fleet/Property Management Fund 151
Insurance Fund 152
Other Schedules:
Schedule of Bond and Bond Interest Transactions 153
Schedule of Future Debt Service Requirements of:
Local Improvement District Bonds 154
General Obligation Bonds 155
Bank Loan Payable 156
Water Revenue Bonds 157
Safe Drinking Water Revolving Loan Funds 158
Statistical Section
Net Position by Component 159
Changes in Net Position 161
Fund Balances of Governmental Funds 165
Changes in Fund Balances of Governmental Funds 167
Governmental and Business-Type Revenues 169
Governmental and Business-Type Expenses by Function 171
General Governmental Revenues by Sources 173
General Governmental Expenditures by Function 175
Market Value and Assessed Value of Taxable Property 176
Property Tax Rates—Direct and Overlapping Governments 177
Principal Property Taxpayers 179
Property Tax Levies and Collections 180
Special Assessment Collections 181
Ratio of Annual Debt Service Expenditures for Long-Term Debt to
Total Governmental Expenditures 182
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt per Capita 183
Computation of Direct and Overlapping Debt 184
Computation of Legal Debt Margin 185
Ratio of Debt by Type 187
Computation of Water Revenue Bonds Debt Coverage 189
Demographics Statistics 191
Principal Employers 192
Property Value and Construction 193
Full-time Equivalent City Government Employees by Function 194
Operating Indicators by Function/Program 195
Capital Assets Statistics by Function 197
Miscellaneous Statistical Data 198
City of Tigard, Oregon
Table of Contents,continued
Audit Comments and Disclosure Requirements
Report of Independent Auditors Required by Oregon State Regulations 199
Report of Independent Auditors on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 201
Report of Independent Auditors on Compliance for the Major Federal Program
and Report on Internal Control Over Compliance as Required by the Uniform Guidance 203
Schedule of Expenditures of Federal Awards 205
Schedule of Findings and Questioned Costs 207
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Introductory Section
PP!,
City of Tigard
December 13, 2018
Citizens of Tigard
Honorable Mayor and 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, 2018, 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, 2018, 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, 2018, 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, 2018, are fairly presented, in all material
respects, in conformity with GAAP. The independent auditor's report is included in the financial section of
this report.
1
GAAP require that management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it. The city's MD&A
can be found immediately following the report of the independent auditors.
Profile of the City of Tigard, Oregon
• The City of Tigard is located in southeast Washington County, 9 miles from
downtown Portland, Oregon. The city is included in the Metro urban growth
Tigprd -7.71 boundary and Tigard's neighboring cities include Beaverton, Lake Oswego,
Tualatin, Durham, Portland,and King City.State Highway 99W,runs north and
Oregon south through the eastern portion of the city as a major commuter corridor
``' to the City of Portland. Interstate 5 and Highway 217 connect Tigard's
residents and workforce to the regional economy of 2.5 million residents.
Tigard's major greenway called Fanno Creek connects neighborhoods to the
natural environment and several of the city's parks.The incorporated area of the city represents 12.2 square
miles and has a population just over 50,000.
The city can extend its corporate limits by annexation,which is permitted by state statute.Since 2012,the city
has annexed over 500 acres of land west of the city that was largely farmland. Planning for development in
that area, known as River Terrace, began in earnest during fiscal year 2014 and continued in fiscal year 2015
with the adoption of the River Terrace Community Plan, a
long-range plan to guide public and private investment
and development to aid with transition from farmland to
residential land over the next several decades.
Throughout fiscal year 2018, permitting and construction hwy26.
phase of development of River Terrace was in full swing. Portnd
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 � 1.)_
Tigard's newest neighborhood is on the city's website at: Beaverton •
http://www.tigard-or.gov/river terrace.php. CO
v`'
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 I+ _ I
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member of the city council is elected at-large to serve a s�'� Os eg9o
four-year term. The mayor presides at council meetings
and is elected at-large for a four-year term.The mayor and 17\-
council provide community leadership, develop policies to Tualatin
guide the city in delivering services and achieving 1-205
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.
2
The city provides a full range of municipal services. These services include police, municipal court, community
planning and development, parks, library, capital improvement planning, administration and central services,
street maintenance, water, and other general public works activities. The city owns and maintains the
wastewater and storm drainage system within the city limits under an agreement with Clean Water Services.
Fire protection is provided by Tualatin Valley Fire and Rescue.
The legally separate Tigard Town Center Development Agency(TCDA),formerly the City Center Development
Agency, is also included in the city's financial statements as a component unit.TCDA 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 and Tigard Triangle 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 a nine-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 this period.Tigard's most
current unemployment rate is 3.5 percent as of June 2018,which is 0.1 percent lower than the Portland Metro
area and 0.5 percent lower than the State of Oregon.
Unemployment trends
-, 14.0%
co
12.0%
C 10.0%
E 8.0%
O 6.0% -
4.0%
• 2.0% -
• 0.0% -
2010 2011 2012 2013 2014 2015 2016 2017 2018
-State of Oregon 10.5% 9.4% 8.5% 8.1% 6.8% 5.5% 4.8% 3.7% 4.0%
-United States 9.6% 9.2% 8.2% 7.8% 6.1% 5.3% 4.9% 4.3% 4.0%
Portland Metro 9.7% 9.5% 8.0% 7.6% 6.1% 5.4% 4.9% 3.7% 3.6%
Washington County 9.0% 8.1% 8.2% 6.6% 5.6% 5.0% 4.7% 3.5% 3.5%
-City of Tigard 8.4% 8.1% 8.2% 6.6% 5.4% 4.5% 4.4% 3.5% 3.5%
Fiscal year
3
2018 Summary of Local Statistics
Number of businesses 2,876
Median household income $65,505
Median home value $320,100
General fund permanent tax rate $2.5131 per$1,000 of assessed value
Total assessed value (est. 2017/2018) 6,451,869,864
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
2019—2024 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 2018 budget document includes the city's
financial policies noted in the appendix starting on page 398. The policies can be found on line at:
http://publicrecords.tigard-or.gov/Public/DocView.aspx?id=861130&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.
4
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 two-
year timeframe that the Council will serve together,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
■ Suggest recreation-related questions for the 2017 Community Attitudes Survey
5
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
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
6
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.
7
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, 2017. This was the 32nd 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 2018. This was the 30th 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 2019 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,
4111
Marty Wine Toby LaFrance
City Manager Director of Finance and Information Services
8
GD
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, 2017
04;444. P. 21
Executive Director/CEO
9
T I GARD
City of Tigard, Oregon
Citywide Organizational Chart as of June 30, 2018
City of Tigard
Citizens of Tigard
Mayor& City
City Council Attorney
J Q 1
City Manager
Q /
r 1 r • I \ r l r 1 p
Central City Community Finance& Library Police Public Works
Services Management Development Information Svcs.
t J \ J \ J L J
Design& Human Community Administration Administration Administration Administration
Communications Resources Planning
Financial Circulation Support Public Works
City Recorder Risk Building Operations Services Engineering
Management
Reader
Municipal Economic Information Services Police Parks
Court City Manager's Development Services Operations Maintenance
Office
Technical
Fleet Utility Billing Services Recreation
Maintenance
Contracts Storm Water
Property &Purchasing
Management
Sanitary Sewer
Street
Maintenance
Street Lights
&Signals
10
City of Tigard, Oregon
Principal Officials as of July 1, 2018
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
Michael O'Brien Municipal Judge
Shelby Rihala City Attorney
Carol Krager City Recorder
All may be reached at:
13125 SW Hall Boulevard
Tigard, OR 97223
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Financial Section
0
MOSSADAMS
Report of Independent Auditors
The 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, 2018, 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 and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. 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.
12
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, 2018, 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.
Emphasis of Matter
As discussed in Note 8 to the financial statements, the City adopted the provisions of GASB
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than
Pensions, effective July 1, 2017. The beginning of year net position has been adjusted for this
change. Our opinion is not modified with respect to this matter.
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, the schedule of plan contributions, and
other employee postemployment benefits information (collectively, the required supplementary
information)on pages 16 through 32 and 97 through 103, 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, the schedule of plan contributions and the
schedule of employee postemployment benefits information on pages 16 through 32, and pages 99
through 103 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 97 through 98 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.
13
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 schedule of expenditures of federal
awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the
combining and individual nonmajor fund financial statements, budgetary schedules, other financial
schedules on pages 104 to 158 and 205 are presented for purposes of additional analysis and are not
a required part of the basic financial statements.
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, other
financial schedules, and the schedule of expenditures of federal awards 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 13, 2018 on our consideration of the City's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and
not to provide an opinion on the effectiveness of the City's internal control over financial reporting or
on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City's internal control over financial reporting and compliance.
14
Report on Other Legal and Regulatory Requirements
In accordance with the Minimum Standards of Audits of Oregon Municipal Corporations, we have
issued our report dated December 13, 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.
Z(/e(1/ C 4OP/e?t -
For Moss Adams LLP
Portland, Oregon
December 13, 2018
15
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, 2018. 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, 2018 by $440,549,379 (net position). Of this
amount, $26,365,233 is restricted for transportation construction, maintenance and utility
undergrounding, $2,216,803 is restricted for park development and improvements,
$11,856,589 is restricted for water system construction and improvements, $9,188,885 is
restricted for debt service, $6,362,765 is restricted for building development plan review and
inspection, $574,700 is restricted for library capital improvements and $266,093 is restricted
for law enforcement equipment. $65,819,178 is unrestricted net position may be used to
meet the city's ongoing obligations to citizens and creditors and $317,899,133 is for net
investment in capital assets.
• The city's total net position had a net increase of$42,854,720 or 10.8 percent from the June
30, 2017 net position. Governmental activities net position increased by$25,438,094,or 10.3
percent. The business-type activities net position increased by $17,416,626 or 11.5 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 $69,922,509, an
increase of 17,058,362 or 32.3 percent from fiscal year 2017. Of the combined ending
governmental fund balances, $18,632,327 or approximately 26.6 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 $19,356,804,
up $4,472,092 over the prior year.
• The city's total debt decreased by$5,238,640 or 3.3 percent from fiscal year 2017.
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.
16
City of Tigard, Oregon
Management's Discussion and Analysis
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.
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 in the financial section of this report,
immediately following the Independent Auditor's 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.
17
City of Tigard, Oregon
Management's Discussion and Analysis
Governmental Funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of available resources, as well as on balances of available resources at the end
of the fiscal year. Such information may be useful in evaluating a government's near-term financial
capability.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the city's near-term financing
decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of
Revenues, Expenditures, and Changes in Fund Balance provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The city maintains 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 five major funds: General, Gas Tax, Transportation Development
Tax, Parks SDC, and Transportation CIP Funds. Data from the other 17 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 36-39 of this report.
Proprietary Funds are used to account for a government's business-type activities.The city maintains
two different types of proprietary funds - enterprise funds and internal service funds. Enterprise
funds are used to report the same functions presented as business-type activities in the
governmental-wide financial statements. The city uses enterprise funds to account for its sanitary
sewer, 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,
18
City of Tigard, Oregon
Management's Discussion and Analysis
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 136-146 of this report. Budgetary
comparisons for the internal service funds are provided on pages 147-152 of this report.
The proprietary fund financial statements can be found on pages 40-42 in the basic financial
statements.
Fiduciary Funds are used to 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 43-44 in the basic financial statements.
Notes to the Basic Financial Statements provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The
notes to the financial statements can be found on pages 45-96 of this report.
Required Supplementary Information includes Schedule of Revenues and Expenditures—Budget and
Actual for the General Fund and the Gas Tax fund.The Budget to GAAP reconciliation for the General
Fund is also included. This section also presents the schedule of the city's proportionate share of the
liability/(asset) and the schedule of contributions for net pensions and other post-employment
benefits (OPEB). Required supplementary information can be found beginning on page 97 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 104-152 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$440,549,379 at June 30, 2018.
The largest portion of the city's net position, approximately 72.2 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
19
City of Tigard, Oregon
Management's Discussion and Analysis
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 $56,831,068 or approximately 12.9 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$65,819,178 or approximately 14.9
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 $42,854,720 or 10.8 percent during the current fiscal year. Total
assets for governmental activities increased by approximately $25.2 million, or approximately 8.9
percent. Noteworthy changes included an increase in cash and investments of approximately $19
million or 32.7 percent. This increase is due to development activity in the city resulting in higher fee
collection in the Building, Transportation Development Tax, Transportation SDC, and Parks SDC.
Governmental activities liabilities decreased by approximately $3.1 million or 7.4 percent.
Noteworthy changes include a bond payments of approximately $2.2 million. See the notes to the
basic financial statements for more information.
Business-type activities total assets increased by approximately$12.9 million or 4.4 percent over the
prior year. Cash and investments increased by approximately $6.9 million or 14.5 percent over the
prior year.This increase is due to development activity in the city resulting in higher fee collection in
the Water SDC funds.
Total long-term debt for business-type activities decreased by $2,748,328 or approximately 2.0
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.
20
City of Tigard, Oregon
Management's Discussion and Analysis
City of Tigard —Summary of Net Position
Governmental Business-Type
Total
Activities Activities
2018 2017 2018 2017 2018 2017
Current and other assets $ 83,576,759 $ 63,545,186 $ 62,309,827 $ 53,753,388 $145,886,586 $117,298,574
Capital assets 224,533,503 219,410,373 246,364,639 242,037,622 470,898,142 461,447,995
Total Assets 308,110,262 282,955,559 308,674,466 295,791,010 616,784,728 578,746,569
Deferred outflows 3,539,744 5,928,602 4,315 - 3,544,059 5,928,602
Current and other liabilities 10,901,193 9,807,520 7,297,504 9,005,416 18,198,697 18,812,936
Long-term liabilities outstanding 28,136,984 32,356,764 132,894,927 135,750,445 161,031,911 168,107,209
Total Liabilities 39,038,177 42,164,284 140,192,431 144,755,861 179,230,608 186,920,145
Deferred inflows 541,314 439,266 7,486 - 548,800 439,266
Net investment in capital assets 207,113,453 199,214,099 110,785,680 104,870,812 317,899,133 304,084,911
Restricted 38,019,099 26,313,186 18,811,969 15,387,870 56,831,068 41,701,056
Unrestricted 26,937,963 20,753,326 38,881,215 30,776,467 65,819,178 51,529,793
Total Net Position $272,070,515 $246,280,611 $168,478,864 $151,035,149 $440,549,379 $397,315,760
21
City of Tigard, Oregon
Management's Discussion and Analysis
City of Tigard —Summary of Changes in Net Position
Governmental Business-Type
Total
Activities Activities
2018 2017 2018 2017 2018 2017
Revenues
Program revenues:
Charges for services $ 13,124,594 $ 12,352,802 $ 29,907,227 $ 27,214,719 $ 43,031,821 $ 39,567,521
Operating grants and contributions 8,321,435 6,880,727 - - 8,321,435 6,880,727
Capital grants and contributions 16,307,318 15,691,507 6,795,717 7,670,388 23,103,035 23,361,895
General revenues:
Property taxes 18,387,321 17,616,798 - - 18,387,321 17,616,798
Franchise fees 6,095,852 5,890,113 - - 6,095,852 5,890,113
Unrestricted intergovernmental revenues 3,022,051 2,074,428 - 285,524 3,022,051 2,359,952
Interest 1,683,282 824,213 139,926 106,628 1,823,208 930,841
Miscellaneous 416,785 268,380 177,276 270,628 594,061 539,008
Total revenues 67,358,638 61,598,968 37,020,146 35,547,887 104,378,784 97,146,855
Expenses
Community services 24,099,976 23,461,915 - - 24,099,976 23,461,915
Publicworks 8,900,831 8,342,833 - - 8,900,831 8,342,833
Community development 5,330,390 5,831,389 - - 5,330,390 5,831,389
Policy and administration 2,945,936 3,583,751 - - 2,945,936 3,583,751
Interest on long-term debt 863,803 949,136 - - 863,803 949,136
Sewer - - 2,789,140 2,595,606 2,789,140 2,595,606
Stormwater - - 2,470,085 2,738,673 2,470,085 2,738,673
Water - - 14,123,903 8,261,895 14,123,903 8,261,895
Total expenses 42,140,936 42,169,024 19,383,128 13,596,174 61,524,064 55,765,198
Revenues over expenses 25,217,702 19,429,944 17,637,018 21,951,713 42,854,720 41,381,657
Transfers in(out) 220,392 291,314 (220,392) (291,314) - -
Changes in net position 25,438,094 19,721,258 17,416,626 21,660,399 42,854,720 41,381,657
Beginning net position,as originally stated 246,280,611 226,559,353 151,035,149 129,374,750 397,315,760 355,934,103
Cumulative effect of restatement 351,810 - 27,089 - 378,899
-
Beginning net position,as restated 246,632,421 226,559,353 151,062,238 129,374,750 397,694,659 355,934,103
Ending net position $272,070,515 $246,280,611 $168,478,864 $151,035,149 $440,549,379 $397,315,760
22
City of Tigard, Oregon
Management's Discussion and Analysis
Expenses and Program Revenues—Governmental activities—June 30, 2018
$25,000,000 -
$20,000,000 -
$15,000,000 -
$10,000,000 - ■ Revenues
$5,000,000 - ■ Expenses
$o
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andat
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Governmental Activities
Governmental activities increased the city's net position by $25,438,094. Noteworthy reasons for
the change from the prior year are as follows:
• Charges for services for Community Development increased by approximately$2.2 million or
50.2 percent from 2017. The increase is primarily due to significant increases in permitting
fees related to various development going on around the city including the River Terrace
neighborhood.
• Total operating grants and contributions increased by approximately $1.4 million over the
prior year due to various increases in police and library grants.
• Franchise fee revenue totaled $6,095,852 in fiscal year 2018, which was a slight increase of
approximately $205,700 or 3.5 percent from fiscal year 2017. 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 27 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 $771,000 or 4.4 percent over 2017. 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.
23
City of Tigard, Oregon
Management's Discussion and Analysis
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.
• Overall expenses for governmental activities of$42,140,936 slightly decreased from the prior
fiscal year by $28,088.
Revenues by Source—Governmental Activities-June 30, 2018
Capital grants
and
contributions Taxes
24% 32%
Operating
grants and Interest
contributions 2%
12%
Franchise fees
Charges for 9%
services Misc
19% 1%
Business-type Activities
Business-type activities increased the city's net position by $17,416,626. The primary reasons for
the current year's increases are:
• Charges for services represent approximately 80.8 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.
24
City of Tigard, Oregon
Management's Discussion and Analysis
Total charges for services increased by approximately $2.7 million or 9.9 percent over fiscal
year 2017, with the largest increase in sanitary sewer revenues.
• Expenses for water operations increased approximately$5.8 million or 71.0 percent from the
prior fiscal year. The increase is primarily due to interest expense for the Lake Oswego/Tigard
Water Project no longer being capitalized as was done in prior years. During the fiscal year
the city implemented GASB Statement No. 89, Accounting for Interest Cost Incurred before
the End of a Construction Period which states that interest cost incurred before the end of a
construction period should be expensed instead of being capitalized.
Expenses and Program Revenues—Business-type Activities—June 30, 2018
$20,000,000 -
$17,500,000 -
$15,000,000 -
$12,500,000 -
$10,000,000 - ■ Revenues
$7,500,000 - ■ Expenses
$5,000,000 -
1111 MIP
$2,500,000 -
$0
�a���atV 5tiat�
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 2018, the city's governmental funds reported combined ending fund
balances of$69,922,509 an increase of$17,058,362 over the prior year. Approximately 29.1 percent
or $20,370,543 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 $45,521,700 or
65.1 percent of the total fund balance. Most of the restricted fund balance is dedicated for park
25
City of Tigard, Oregon
Management's Discussion and Analysis
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 prepaids.
General Fund
The General Fund is the chief operating fund of the city. At the end of the fiscal year 2018, the
unassigned fund balance was $19,356,804 or approximately 96.5 percent of the total fund balance
of $20,062,299. 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 62.9 percent of total
General Fund expenditures.
The fund balance of the General Fund increased by $4,471,175 or 28.7 percent. The increase is
primarily attributable to an increase in property taxes and intergovernmental revenues, totaling
approximately $1.5 million more than fiscal year 2017. Other revenue increases included interest
revenue, up more than 122.1 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 2018, the fund balance was $3,199,693, an increase of $520,468 from the
prior year. Total revenues of $4,268,941 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.
At the end of fiscal year 2018,the fund balance was$11,571,499, an increase of$4,043,101 from the
prior year. Total revenues of$4,090,096 are used for highways and transit capital improvements in
the city's Capital Improvement Plan. The development fees are 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. At the end of fiscal year 2018,the fund balance was$10,130,569, an increase of$1,993,909
from the prior year. Total revenues of $2,863,180 are used for the acquisition, development and
expansion of additional recreation spaces and facilities that are included in the city's Park Master
Plan. The development fees are associated primarily with the River Terrace housing development.
26
City of Tigard, Oregon
Management's Discussion and Analysis
Transportation Capital Improvement Fund
This fund accounts for capital improvement projects funded with transportation revenues; including
Gas Tax, Traffic Impact Fees and Transportation Development Tax. At the end of fiscal year 2018,
Capital Outlay for this fund totaled $2,414,067, the majority of which was for the Hunziker Core
project.The Hunziker Core project is for building new public infrastructure improvements to SW Wall
Street, providing a new public street from SW Hunziker Road to the railroad tracks. The project
supports development and redevelopment of adjacent industrial lands to achieve higher levels of
employment. The majority of this project is funded through federal and state grants, and developer
contributions.
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 $38,881,215
with individual fund unrestricted net position at:
• Sanitary Sewer $5,623,533
• Stormwater $8,576,730
• Water Funds $24,680,952
The factors concerning the finances of these funds have already been addressed in the discussion of
the city's business-type activities.
General Fund Budgetary Highlights
The city council approved three supplementary budget amendments to the adopted General Fund
budget. Total final adopted budgeted expenditures increased by $179,448 from the original
budgeted numbers. Budgeted General Fund contingency was decreased by $307,500 or 23.7
percent. Following are noteworthy changes from the original budget to the final adopted budget in
the General Fund:
• Community Services- Budget appropriation increases totaled $317,724,the majority of which
was to incorporate the union contract changes into the budget. At the time the budget was
adopted union contract negotiations had not been completed.
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$777,286 due to an increase in the
Local Government Investment Pool interest rates and a growing balance.
• Intergovernmental revenues — variance with budget of $1,589,450 due to increases in local
and federal grants plus additional library funds from Washington County Cooperative Library
Services (WCCLS).
27
City of Tigard, Oregon
Management's Discussion and Analysis
• Licenses and permits — variance with budget of $1,259,457 due mainly to increases in
engineering public improvement fees.
Capital Asset and Debt Administration
Capital Assets
Governmental Activities
The city's investment in capital assets for its governmental activities as of June 30, 2018, amounts to
$224,533,503 (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
$5,123,129 or approximately 2.3 percent over the prior year. The city recorded approximately $2.9
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, 2018, amounts to
$246,364,638 (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 the city's investment in business-type activities capital assets was $4,327,016 or 1.8
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
2018 2017 2018 2017 2018 2017
Land $ 26,009,224 $ 26,009,224 $ 11,975,910 $ 5,237,285 $ 37,985,134 $ 31,246,509
Construction in progress 7,520,815 5,621,366 2,073,062 172,290,720 9,593,877 177,912,086
Buildings and building improvements 13,878,881 14,533,523 76,086,458 688,200 89,965,339 15,221,723
Land improvements 1,991,594 1,883,044 7,505,761 - 9,497,355 1,883,044
Sewer system - - 18,964,253 17,041,202 18,964,253 17,041,202
Stormwater system - - 12,255,567 11,533,929 12,255,567 11,533,929
Water system - - 115,419,467 34,896,334 115,419,467 34,896,334
Machinery and equipment 339,249 240,453 1,734,309 214,794 2,073,558 455,247
Autos and trucks 1,036,672 862,935 349,851 135,158 1,386,523 998,093
Office equipment 1,348,511 1,387,993 - - 1,348,511 1,387,993
Infrastructure 172,408,557 168,871,836 - - 172,408,557 168,871,836
Total Capital Assets $ 224,533,503 $ 219,410,374 $ 246,364,638 $ 242,037,622 $ 470,898,141 $ 461,447,996
28
City of Tigard, Oregon
Management's Discussion and Analysis
The following chart indicates the city's capital assets as of June 30, 2018. Additional information on
the city's capital assets can be found in the notes to the basic financial statements of this report.
Total Capital Assets
Construction in
Land progress
8.1% 2.0% Buildings and
Infrastructure building
36.6% improvements
4111 19.1%
Office
equipment Land
0.3% improvements
Autos and trucks 2.0%
0.3%
Sewer system
Machinery and Water system 4.0%
equipment 24.5% Storm drainage
0.4%o
system
2.6%
Debt Outstanding
As of year-end, the city had total debt outstanding of$155,032,476. Of this amount $18,419,297 is
general obligation and full faith and credit bonds; $133,775,926 represents water revenue bonds;
$1,803,034 represents a note payable; $124,219 represents special assessment bonded debt or local
improvement district bonds; and $910,000 for urban renewal bank loan payable. 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 $5,238,640 or approximately 3.3 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 $910,000 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 $1,803,034 at year-end.
29
City of Tigard, Oregon
Management's Discussion and Analysis
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$296 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, 2018. Additional
information on the city's debt can be found in the notes to the basic financial statements of this
report.
Governmental Activities Business-Type Activities Total
2018 2017 2018 2017 2018 2017
General obligation $ 18,419,297 $ 20,675,137 $ - $ - $ 18,419,297 $ 20,675,137
Local improvement 124,219 213,219 - - 124,219 213,219
Bank loan payable 910,000 1,040,000 - - 910,000 1,040,000
Capital lease - 15,472 - - - 15,472
Note payable - - 1,803,034 1,907,007 1,803,034 1,907,007
Revenue bonds - - 133,775,926 136,420,282 133,775,926 136,420,282
Total Outstanding Debt $ 19,453,516 $ 21,943,828 $ 135,578,960 $ 138,327,289 $155,032,476 $160,271,117
Total Outstanding Long-Term Debt
Bank loan
payable
General obligation 0.5%
11.9%
Local
improvement
0.1%
Note payable
1.2%
Revenue bonds
86.3%
30
City of Tigard, Oregon
Management's Discussion and Analysis
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 2019:
• The unemployment rate for the Portland metropolitan area was 3.6 percent at the end of the
fiscal year,June 30, 2018. This is less than the State of Oregon rate and the national average
of 4.0 percent for June 2018.
• Property tax revenues are the single largest sources of revenue in the General Fund and it
accounts for 52 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 5 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, 2018, there were 2,795 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 urban renewal, the city projects a continued increase in business
licenses, but any increase will be gradual over time.
• 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 2018 and will increase each year thereafter through 2019. Sanitary
Sewer revenues increased in fiscal year 2018 due to a city surcharge of $2.11/dwelling unit.
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 2019 budget includes a 4.1 percent increase for sanitary sewer rates, and a 6.1 percent
increase for stormwater management rates. The rate increases are necessary to expand,
31
City of Tigard, Oregon
Management's Discussion and Analysis
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 2018-2019. The
current forecast shows that in the short-term the city's financial condition is stable in most funds.
The fiscal year 2019 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
32
No content appears on this page by design.
Basic Financial Section
CITY OF TIGARD,OREGON
STATEMENT OF NET POSITION
June 30,2018
Governmental Business-Type
Total
ASSETS Activities Activities
Cash and investments $ 27,282,087 $ 34,172,167 $ 61,454,254
Accounts receivable,net 5,217,515 6,779,024 11,996,539
Property taxes receivable 871,854 - 871,854
Assessment liens receivable 323,306 - 323,306
Prepaids 222,085 2,083 224,168
Inventory 27,601 218,892 246,493
Property held for resale - 445,042 445,042
Restricted cash and investments 49,632,311 20,692,619 70,324,930
Capital assets:
Land and construction in process 33,530,039 14,048,970 47,579,009
Other capital assets(net of accumulated depreciation) 191,003,464 232,315,669 423,319,133
Total assets 308,110,262 308,674,466 616,784,728
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension 3,467,532 - 3,467,532
Deferred outflows related to OPEB 72,212 4,315 76,527
Total deferred outflows 3,539,744 4,315 3,544,059
LIABILITIES
Accounts payable and accrued liabilities 3,733,434 1,848,470 5,581,904
Deposits 1,556,065 41,354 1,597,419
Due to other entities/agencies 662,409 - 662,409
Internal balances 102,320 (102,320) -
Unearned revenue 963,219 - 963,219
Accrued interest payable 80,189 2,581,066 2,661,255
Due within one year:
Notes payable - 107,092 107,092
Bonds payable 2,324,703 2,720,335 5,045,038
Accrued compensated absences 1,365,173 101,507 1,466,680
Bank loan payable 130,000 - 130,000
Special assessment bonded debt with government commitment 95,800 - 95,800
Due in more than one year:
Notes payable - 1,695,942 1,695,942
Bonds payable 16,094,594 131,055,592 147,150,186
Accrued compensated absences 56,882 3,443 60,325
Bank loan payable 780,000 - 780,000
Special assessment bonded debt with government commitment 28,419 - 28,419
Net other post employment benefit liability 1,256,072 139,950 1,396,022
Net pension liability 9,835,041 - 9,835,041
Total liabilities 39,064,320 140,192,431 179,256,751
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension 451,612 - 451,612
Deferred inflows related to OPEB 63,559 7,486 71,045
Total deferred inflows 515,171 7,486 522,657
NET POSITION
Net investment in capital assets 207,113,453 110,785,680 317,899,133
Restricted for:
Transportation construction,maintenance and utility undergrounding 26,365,233 - 26,365,233
Park development and improvements 2,216,803 - 2,216,803
Water system construction and improvements - 11,856,589 11,856,589
Debt service 2,233,505 6,955,380 9,188,885
Building development plan review and inspection 6,362,765 - 6,362,765
Library capital improvements 574,700 - 574,700
Law enforcement equipment 266,093 - 266,093
Unrestricted 26,937,963 38,881,215 65,819,178
Total net position $ 272,070,515 $ 168,478,864 $ 440,549,379
The accompanying notes are an integral part of the basic financial statements.
33
CITY OF TIGARD,OREGON
STATEMENT OF ACTIVITIES
for the year ended June 30,2018
Program Revenues
Charges Operating
for Grants and
Functions/Programs Expenses Services Contributions
Governmental activities:
Community services $ 24,099,976 $ 1,557,082 $ 4,713,897
Public works 8,900,831 4,708,329 3,441,797
Community development 5,330,390 6,518,737 -
Policy and administration 2,945,936 340,446 165,741
Interest on long-term debt 863,803 - -
Total governmental activities 42,140,936 13,124,594 8,321,435
Business-type activities:
Sewer 2,789,140 3,208,783 -
Stormwater 2,470,085 3,620,431 -
Water 14,123,903 23,078,013 -
Total business-type activities 19,383,128 29,907,227 -
Total $ 61,524,064 $ 43,031,821 $ 8,321,435
The accompanying notes are an integral part of the basic financial statements.
34
Net(Expense)Revenue and Changes in Net Position-
Primary Government
Capital
Grants and Governmental Business-type
Contributions Activities Activities Total
$ - $ (17,828,997) $ - $ (17,828,997)
15,843,965 15,093,260 - 15,093,260
463,353 1,651,700 - 1,651,700
-
(2,439,749) - (2,439,749)
-
(863,803) - (863,803)
16,307,318 (4,387,589) - (4,387,589)
1,992,567 - 2,412,210 2,412,210
426,418 - 1,576,764 1,576,764
4,376,732 - 13,330,842 13,330,842
6,795,717 - 17,319,816 17,319,816
$ 23,103,035 (4,387,589) 17,319,816 12,932,227
General Revenues:
Property taxes,levied for general
purposes 15,610,757 - 15,610,757
Property taxes,levied for debt service 2,776,564 - 2,776,564
Franchise fees 6,095,852 - 6,095,852
Unrestricted intergovernmental
revenues 3,022,051 - 3,022,051
Interest earnings 1,683,282 139,926 1,823,208
Miscellaneous 416,785 177,276 594,061
Total general revenues 29,605,291 317,202 29,922,493
Transfers between Governmental
and Business-type Activites 220,392 (220,392) -
Change in net position 25,438,094 17,416,626 42,854,720
Net position,beginning,as originally stated 246,280,611 151,035,149 397,315,760
Cumulative effect of restatement 351,810 27,089 378,899
Net position,beginning,as restated 246,632,421 151,062,238 397,694,659
Net position,ending $ 272,070,515 $ 168,478,864 $ 440,549,379
35
CITY OF TIGARD,OREGON
GOVERNMENTAL FUNDS-BALANCE SHEET
June 30,2018
Major Capital Project Funds
Transportation Transportation Other Total
General Gas Tax Development Parks SDC Capital Governmental Governmental
Fund Fund Tax Fund Fund Improvement Fund Funds Funds
ASSETS
Cash and cash equivalents $ 19,286,867 $ - $ - $ - $ - $ 3,969,541 $ 23,256,408
Accounts receivable 2,750,610 377,355 1,303 1,493 1,029,393 963,571 5,123,725
Property taxes receivable 730,915 - - - - 140,939 871,854
Assessment liens receivable - - 3,413 - - 319,893 323,306
Interest receivable 14,466 - - - - 7,900 22,366
Advances to other funds 655,112 - - - - - 655,112
Prepaids 50,383 - - - - 17,040 67,423
Restricted cash and cash equivalents - 3,433,355 11,570,196 10,129,076 1,874,754 22,624,930 49,632,311
Total assets $ 23,488,353 $ 3,810,710 $ 11,574,912 $ 10,130,569 $ 2,904,147 $ 28,043,814 $ 79,952,505
LIABILITIES
Accounts payable and accrued liabilities $ 1,173,487 $ 219,577 $ - $ - $ 402,499 $ 1,393,878 $ 3,189,441
Deposits 514,194 369,033 - - - 672,838 1,556,065
Due to other entities/agencies 439,386 - - - - 223,023 662,409
Advances from other funds - - - - - 757,432 757,432
Unearned revenue - - - - 896,719 50,000 946,719
Total liabilities 2,127,067 588,610 - - 1,299,218 3,097,171 7,112,066
DEFERRED INFLOWS OF RESOURCES
Resources not yet available:
Property taxes 668,987 - - - - 129,798 798,785
Municipal court receivable 499,075 - - - - - 499,075
Transportation refund credits - 22,407 - - - 11,792 34,199
Grant receivable - - - - 1,008,050 - 1,008,050
Special assessment liens - - 3,413 - - 443,483 446,896
Franchise fees 130,925 - - - - - 130,925
Total deferred inflows of resources 1,298,987 22,407 3,413 - 1,008,050 585,073 2,917,930
FUND BALANCES
Nonspendable:
Advances to other funds 655,112 - - - - - 655,112
Prepaids 50,383 - - - - 17,040 67,423
Restricted for:
Street maintenance and improvements - 3,199,693 11,571,499 - 596,879 8,456,298 23,824,369
Debt service - - - - - 1,783,814 1,783,814
Park development and improvements - - - 10,130,569 - 2,216,803 12,347,372
Underground utilities - - - - - 362,587 362,587
Building inspection - - - - - 6,362,765 6,362,765
Police services - - - - - 266,093 266,093
Library improvements - - - - - 574,700 574,700
Committed for:
Street maintenance and improvements - - - - - 2,178,277 2,178,277
Urban forestry - - - - - 1,129,454 1,129,454
Assigned to:
City facilities - - - - - 913,962 913,962
Park and recreation - - - - - 824,254 824,254
Unassigned 19,356,804 - - - - (724,477) 18,632,327
Total fund balances 20,062,299 3,199,693 11,571,499 10,130,569 596,879 24,361,570 69,922,509
Total liabilities,deferred inflows of
resources and fund balances $ 23,488,353 $ 3,810,710 $ 11,574,912 $ 10,130,569 $ 2,904,147 $ 28,043,814 $ 79,952,505
The accompanying notes are an integral part of the basic financial statements.
36
CITY OF TIGARD,OREGON
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
June 30,2018
Fund Balances-Governmental Funds $ 69,922,509
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 $ 328,319,557
Less accumulated depreciation (103,786,054) 224,533,503
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 (9,835,041)
Deferred outflows of resources related to pensions and OPEB 3,530,436
Deferred inflows of resources related to pensions and OPEB (525,163) (6,829,768)
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 798,785
Franchise fees earned but not available 130,925
Municipal court receivable 499,075
Grant receivable 1,008,050
Transportation refund credits 34,199
Assessment liens 446,896 2,917,930
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. 3,156,037
Accrued compensated absences are not due and payable in the current period and therefore are not (1,093,700)
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 (18,419,297)
Loans payable (910,000)
Special assessment debt bonded with government commitment (124,219)
Accrued interest payable,not due and payable in the current period (80,189)
Net other post employment benefit(OPEB) liability (1,002,291)
Net Position of Governmental Activities $ 272,070,515
The accompanying notes are an integral part of the basic financial statements.
37
CITY OF TIGARD,OREGON
GOVERNMENTAL FUNDS-
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE
for the year ended June 30,2018
Major Capital Project Funds
Transportation Transportation Other Total
General Gas Tax Development Parks SDC Capital Governmental Governmental
Fund Fund Tax Fund Fund Improvement Fund Funds Funds
REVENUES
Taxes $ 15,610,757 $ 3,441,797 $ - $ - $ - $ 3,656,613 $ 22,709,167
Franchise fees 6,102,443 - - - - - 6,102,443
Special assessments - - - - - 50,036 50,036
Licenses and permits 3,588,087 112,3063,947,842- 3,947,842 7,648,235
Intergovernmental revenues 7,690,818 - - - 283,525 763,016 8,737,359
Charges for services 2,289,833 - 4,085,773 2,858,872 19,307 7,243,439 16,497,224
Fines and forfeitures 594,773 - - - - 103,735 698,508
Rental revenues - - - - - 116,739 116,739
Donations - - - - - 96,527 96,527
Interest earnings 881,008 522,811 4,323 4,308 - 246,657 1,659,107
Miscellaneous revenues 106,830 192,027 - - 676,642 15,936 991,435
Total revenues 36,864,549 4,268,941 4,090,096 2,863,180 979,474 16,240,540 65,306,780
EXPENDITURES
Current operating:
Community services 22,580,352 - - - - 50,896 22,631,248
Public works 4,266,144 2,145,495 - - - 2,487,536 8,899,175
Community development 3,123,971 - - - - 2,221,428 5,345,399
Policy and administration 795,586 - - - - - 795,586
Debt service:
Principal - 511,034 - - - 1,942,966 2,454,000
Interest - 68,543 - - - 823,663 892,206
Capital outlay - - - - 2,414,067 4,328,371 6,742,438
Total expenditures 30,766,053 2,725,072 - - 2,414,067 11,854,860 47,760,052
Excess of revenues
over expenditures 6,098,496 1,543,869 4,090,096 2,863,180 (1,434,593) 4,385,680 17,546,728
OTHER FINANCING SOURCES(USES)
Transfer in - 150,000 - - 1,273,847 2,750,777 4,174,624
Transfer out (1,627,321) (1,173,401) (46,995) (869,271) - (946,002) (4,662,990)
Total other financing sources(uses) (1,627,321) (1,023,401) (46,995) (869,271) 1,273,847 1,804,775 (488,366)
Net change in fund balances 4,471,175 520,468 4,043,101 1,993,909 (160,746) 6,190,455 17,058,362
Fund balances-beginning of the year 15,591,124 2,679,225 7,528,398 8,136,660 757,625 18,171,115 52,864,147
Fund balances-end of year $ 20,062,299 $ 3,199,693 $ 11,571,499 $ 10,130,569 $ 596,879 $ 24,361,570 $ 69,922,509
The accompanying notes are an integral part of the basic financial statements.
38
CITY OF TIGARD,OREGON
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND
BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
for the year ended June 30,2018
Net change in fund balances-Governmental Funds $ 17,058,362
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 7,349,377
Current year depreciation expense (5,096,719)
Contributed capital 2,912,576
Loss on disposal of capital assets (42,105) 5,123,129
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 6,989
Increase in franchise fees (6,591)
Decrease in municipal court receivable 32,977
Increase in grants receivable 835,971
Decrease in assessment liens (50,036) 819,310
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 2,433,160
Amortization of premium on long-term debt 20,840 2,454,000
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 8,245
Increase in compensated absences (21,707)
Pension expense (1,091,459)
OPEB expense 14,237 (1,090,684)
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 1,073,977
Change in Net Position of Governmental Activities $ 25,438,094
The accompanying notes are an integral part of the basic financial statements.
39
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
June 30,2018
Business-type Activities- Governmental
Enterprise Funds Activities-
Sanitary Internal
Sewer Stormwater Water Totals Service Funds
ASSETS
Current assets:
Cash and cash equivalents $ 3,635,353 $ 7,948,963 $ 22,587,851 $ 34,172,167 $ 4,025,679
Accounts receivable 2,716,430 538,649 3,523,945 6,779,024 71,424
Advances to other funds-Interfund loan 102,320 - - 102,320 -
Prepaids - 833 1,250 2,083 154,659
Property held for resale 185,021 260,021 - 445,042 -
Inventory 11,357 11,357 196,178 218,892 27,601
Total current assets 6,650,481 8,759,823 26,309,224 41,719,528 4,279,363
Noncurrent assets:
Restricted cash and cash equivalents - - 20,692,619 20,692,619 -
Capital assets:
Land and construction in process 555,520 39,938 13,453,512 14,048,970 -
Other capital assets(net of
accumulated depreciation) 19,205,107 12,862,598 200,247,964 232,315,669 -
Total noncurrent assets 19,760,627 12,902,536 234,394,095 267,057,258 -
Total assets 26,411,108 21,662,359 260,703,319 308,776,786 4,279,363
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to OPEB 1,018 1,455 1,842 4,315 9,308
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 970,634 97,647 780,189 1,848,470 517,850
Unearned revenue - - - - 16,500
Deposits - 8,833 32,521 41,354 -
Accrued interest payable - - 2,581,066 2,581,066 -
Accrued compensated absences 24,758 31,137 45,612 101,507 315,878
Current portion of bonds payable - - 2,720,335 2,720,335 -
Current portion of note payable - - 107,092 107,092 -
Total current liabilities 995,392 137,617 6,266,815 7,399,824 850,228
Noncurrent liabilities:
Accrued compensated absences 840 1,056 1,547 3,443 12,477
Note payable-long-term portion - - 1,695,942 1,695,942 -
Bonds payable-long-term portion - - 131,055,592 131,055,592
Net OPEB liability 29,968 43,351 66,631 139,950 253,778
Total noncurrent liabilities 30,808 44,407 132,819,712 132,894,927 266,255
Total liabilities 1,026,200 182,024 139,086,527 140,294,751 1,116,483
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB 1,766 2,524 3,196 7,486 16,151
NET POSITION
Net investment in capital assets 19,760,627 12,902,536 78,122,517 110,785,680 -
Restricted for capital projects - - 11,856,589 11,856,589 -
Restricted for debt service - - 6,955,380 6,955,380 -
Unrestricted 5,623,533 8,576,730 24,680,952 38,881,215 3,156,037
Total net position $ 25,384,160 $ 21,479,266 $ 121,615,438 $ 168,478,864 $ 3,156,037
The accompanying notes are an integral part of the basic financial statements.
40
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET POSITION
for the year ended June 30,2018
Business-type Activities- Governmental
Enterprise Funds Activities-
Sanitary Internal
Sewer Stormwater Water Totals Service Funds
OPERATING REVENUES
Charges for services $ 3,208,783 $ 3,620,431 $ 23,078,013 $ 29,907,227 $ 10,248,915
Miscellaneous revenues 51,855 7,464 117,957 177,276 242,780
Total operating revenues 3,260,638 3,627,895 23,195,970 30,084,503 10,491,695
OPERATING EXPENSES
Salaries and wages 500,413 745,404 874,348 2,120,165 5,890,108
Contracted services 25,093 313,469 2,277,274 2,615,836 1,165,537
General,administrative and other 1,525,950 863,353 3,931,142 6,320,445 3,166,300
Depreciation 737,684 547,859 1,430,381 2,715,924 -
Total operating expenses 2,789,140 2,470,085 8,513,145 13,772,370 10,221,945
Operating income(loss) 471,498 1,157,810 14,682,825 16,312,133 269,750
NON-OPERATING REVENUES(EXPENSES)
Interest earnings 3,399 3,222 133,305 139,926 24,276
Interest expense - - (5,610,758) (5,610,758) -
Intergovernmental revenue 1,612,614 - - 1,612,614 71,196
Total non-operating revenue 1,616,013 3,222 (5,477,453) (3,858,218) 95,472
Net income(loss)before
contributions and transfers 2,087,511 1,161,032 9,205,372 12,453,915 365,222
System development revenue 76,977 5,265 4,244,324 4,326,566 -
Capital contributions 302,976 421,153 132,408 856,537 -
Transfers in 63,424 324,424 58,751 446,599 709,050
Transfers out (360,290) (134,082) (172,619) (666,991) (295)
Change in net position 2,170,598 1,777,792 13,468,236 17,416,626 1,073,977
Net position--beginning of year,as originally stated 23,204,726 19,700,626 108,129,797 151,062,238 2,027,242
Cumulative effect of restatement 8,836 848 17,405 27,089 54,818
Net position--beginning of year,as restated 23,213,562 19,701,474 108,147,202 151,062,238 2,082,060
Net position--end of year $ 25,384,160 $ 21,479,266 $ 121,615,438 $ 168,478,864 $ 3,156,037
The accompanying notes are an integral part of the basic financial statements.
41
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
for the year ended June 30,2018
Business-type Activities- Governmental
Enterprise Funds Activities-
Sanitary Internal
Sewer Stormwater Water Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 15,142,296 $ 4,330,756 $ 22,450,280 $ 41,923,332 $ 10,212,299
Payments to suppliers (15,798,703) (2,038,113) (6,500,598) (24,337,414) (4,325,157)
Payments to employees (495,355) (736,551) (881,468) (2,113,374) (5,851,843)
Other receipts 51,855 7,464 117,957 177,276 243,505
Net cash provided(used)by operating activities (1,099,907) 1,563,556 15,186,171 15,649,820 278,804
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Intergovernmental revenue - - - - 71,196
Transfers to other funds (360,290) (134,082) (172,619) (666,991) (295)
Transfers from other funds - - 58,751 58,751 709,050
Net cash(used)by noncapital financing activities (360,290) (134,082) (113,868) (608,240) 779,951
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
System development revenue 76,977 5,265 4,244,324 4,326,566 -
Intergovernmental revenue 1,612,614 - - 1,612,614 -
Principal payments - - (2,748,328) (2,748,328) -
Interest payments - - (5,642,505) (5,642,505) -
Transfers in for capital assets 63,424 324,424 - 387,848 -
Acquisition of capital assets (2,235,833) (876,945) (3,073,626) (6,186,404) -
Net cash(used)by capital and related
financing activities (482,818) (547,256) (7,220,135) (8,250,209) -
CASH FLOWS FROM INVESTING ACTIVITIES
Property held for resale
Interest earnings 3,399 3,222 133,305 139,926 24,276
Net increase(decrease)in cash
and investments (1,939,616) 885,440 7,985,473 6,931,297 1,083,031
Cash and investments--beginning of the year 5,574,969 7,063,523 35,294,997 47,933,489 2,942,648
Cash and investments--end of the year $ 3,635,353 $ 7,948,963 $ 43,280,470 $ 54,864,786 $ 4,025,679
RECONCILIATION OF OPERATING INCOME(LOSS)TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income(loss) $ 471,498 $ 1,157,810 $ 14,682,825 $ 16,312,133 $ 269,750
Adjustments to reconcile operating income(loss)
to net cash provided by operating activities:
Cash flows reported in other categories:
Depreciation expense 737,684 547,859 1,430,381 2,715,924 -
Change in assets and liabilities:
Receivables (985,648) 15,289 (624,996) (1,595,355) (32,837)
Prepaid expenses - - - - (87,833)
Inventory 575 575 (30,937) (29,787) 9,542
Accounts payable and accrued liabilities (1,329,074) (166,830) (261,245) (1,757,149) 81,131
Unearned revenue - - - - 786
Accrued compensated absences 4,585 8,175 (7,980) 4,780 33,925
Deposits - - (2,737) (2,737) -
OPEB liability 473 678 860 2,011 4,340
Net cash provided(used)by operating activities $ (1,099,907) $ 1,563,556 $ 15,186,171 $ 15,649,820 $ 278,804
Non-cash capital and related financing activities:
Developer contributed sewer,stormwater and
water lines $ 302,976 $ 421,153 $ 132,408 $ 856,537 -
The accompanying notes are an integral part of the basic financial statements.
42
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 30,2018
ASSETS
Investments:
Restricted stable value fund $ 15,616,909
Restricted corporate bonds 958,979
Restricted corporate stocks 11,723,905
Total assets 28,299,793
NET POSITION
Restricted for pension benefits $ 28,299,793
The accompanying notes are an integral part of the basic financial statements.
43
CITY OF TIGARD,OREGON
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST
for the year ended June 30,2018
ADDITIONS
Contributions-employer $ 1,675,261
Contributions-plan members 324,236
Investment income 2,545,024
Total additions 4,544,521
DEDUCTIONS
Benefit payments and withdrawals 3,706,427
Administrative expenses 10,580
Total deductions 3,717,007
Change in net position 827,514
Net position of assets held in trust for pension benefits:
Beginning of year 27,472,279
End of year $ 28,299,793
The accompanying notes are an integral part of the basic financial statements.
44
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 Town Center Development Agency (TCDA), formerly the City Center Development
Agency, oversees and administers the city's two urban renewal districts: the City Center Urban
Renewal Area (CCURA) and the Tigard Triangle Urban Renewal Area (TTURA).
Voters authorized the CCURA in 2006. The plan's duration is 20 years with maximum
indebtedness of $22 million. In May 2017 the voters approved the creation of a second urban
renewal area, the TTURA, for 35 years with maximum indebtedness of$188 million. The TTURA
and the CCURA 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 TCDA 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, 2018.
The CCURA and the TTURA are legally separate entities, which are governed by a board
comprised of the City Council members, as stipulated in the Tigard Municipal Code. The Council
has the ability to impose its will on the CCDA and TTURA as determined based on budget
adoption, taxing authority, and funding.
The purpose of the TCDA is to undertake urban renewal projects and activities pursuant to the
city's adopted urban renewal plans. The financial results of the TCDA are reported herein as
debt service and capital projects funds. The TCDA prepared a separate component unit financial
report, which is published on the city's website www.tigard-or.gov or a copy can be obtained
from the city's administrative offices at 13125 SW Hall Blvd, Tigard, Oregon 97223.
45
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 Ventures
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. As of June 30, 2018, the project has been completed and the city has
capitalized the amounts for each asset. The revenue and expenses associated with the ongoing
operations of the water facility are recorded within the water operations.
The city also has an ownership position in the Willamette Intake Facility (WIF) for the treatment
and distribution of water from the Willamette River. The WIF is a joint venture of the city and
the Tualatin Valley Water District and the cities of Wilsonville, Sherwood, Hillsboro and
Beaverton. The financial statements of the WIF may be obtained from Tualatin Valley Water
District, Finance Department, 1850 SW 170th Avenue, Beaverton, OR 97003. For more
information on joint ventures see footnote 15. As of June 30, 2018, the city's interest in the WIF
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
46
City of Tigard, Oregon
Notes to Basic Financial Statements
privileges provided by a given function or segment, and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment.
Indirect expenses are recovered through internal service fund charges. These indirect expenses
are allocated based on a full-cost approach, thereby allocating indirect expenses among
functions with the objective of allocating all expenses. Taxes and other items not included
among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and the
pension trust fund, even though the pension trust fund is excluded from the government-wide
financial statements. Major individual governmental funds and major individual enterprise
funds are reported as separate columns in the fund financial statements.
Fund financial statements display information at the individual fund level. Each fund is
considered to be a separate accounting entity. Funds are classified and summarized as
governmental, proprietary, or fiduciary.
Currently, the city has governmental, proprietary, and fiduciary fund types. Non-major funds
are combined into a single column in the basic financial statements and are detailed in the
supplementary information.
Basis of Presentation
The financial transactions of the city are recorded in individual funds. Each fund is accounted
for by providing a separate set of self-balancing accounts that comprises its assets, deferred
outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and
expenditures/expenses.
Professional standards set forth minimum criteria (percentage of the assets, deferred outflows
of resources, liabilities, deferred inflows of resources, revenues or expenditures/expenses or
either fund category or the governmental and enterprise combined) for the determination of
major funds. The city may also elect to add major funds that city officials believe are particularly
useful to financial statement users. The city has elected to report the enterprise funds as major
as well as include the Gas Tax, Transportation Development Tax, Parks SDC, and Transportation
CIP 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.
47
City of Tigard, Oregon
Notes to Basic Financial Statements
The financial statements of the city have been prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP). GAAP statements include
all relevant GASB pronouncements. The city applies the provisions of all applicable GASB
statements that define requirements and the reporting model for the annual financial reports
of state and local governments. The city has recorded capital and certain other long-term assets
and liabilities in the Statement of Net Position, reported all revenues and the cost of providing
services under the accrual basis of accounting in the Statement of Activities, and uses the direct
method of reporting cash flows.
The government-wide, proprietary fund and fiduciary fund financial statements are presented
on a full accrual basis of accounting with an economic resource measurement focus. An
economic resource focus concentrates on an entity or fund's net position. All transactions and
events that affect the total economic resources (net position) during the period are reported.
An economic resources measurement focus is inextricably connected with full-accrual
accounting. Under the full accrual basis of accounting, revenues are recorded when earned and
expenses are recorded at the time liabilities are incurred, regardless of the timing of related
cash inflows and outflows.
Governmental funds financial statements are presented on a modified accrual basis of
accounting with a current financial resource measurement focus. This measurement focus
concentrates on the fund's resources available for spending currently or in the near future.
Only transactions and events affecting the fund's current financial resources during the period
are reported.
Similar to the connection between an economic resource measurement focus and full accrual
accounting, a current financial resource measurement focus is inseparable from a modified
accrual basis of accounting. Under modified accrual accounting, revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the city considers revenues to be available if they are collected
within 60 days of the end of the current fiscal year.
Property taxes, intergovernmental and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current
fiscal period. Only the portion of special assessments receivable due within the current fiscal
period is considered susceptible to accrual as revenue of the current period. All other revenues
are considered to be measurable and available only when cash is received by the city.
A deferred inflow of resources, shown as unavailable revenue, arises in the governmental funds
balance sheet when potential revenue does not meet both the measurable and available
criteria for recognition in the current year.
48
City of Tigard, Oregon
Notes to Basic Financial Statements
This unavailable revenue consists primarily of uncollected property taxes and assessments not
deemed available to finance operation of the current period. In the government-wide
Statement of Activities, with a full accrual basis of accounting, revenue must be recognized as
soon as it is earned regardless of its availability. Thus, the liability created on the governmental
fund balance sheet for unavailable revenue is eliminated.
Similar to the way revenues are recorded, governmental funds only record those expenditures
that affect current financial resources. Principal and interest on general long-term debt is
recorded as a fund liability only when due, or to the extent that it is expected to be liquidated
with expendable financial resources. However, in the government-wide financial statements
with full accrual basis of accounting, all expenditures affecting the economic resource status of
the government must be recognized. Thus, the expense and related accrued liability for long-
term portions of debt, interest, other 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.
49
City of Tigard, Oregon
Notes to Basic Financial Statements
The fiduciary fund accounts for the resources held by the city in a custodial capacity, on behalf
of the employees of the city.
New Accounting Pronouncements and Accounting Standards
During the fiscal year ended June 30, 2018, the city implemented the following GASB
pronouncements:
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. 75, Accounting and Financial Reporting for Postemployment
Benefits Other Than Pension, establishes new accounting and financial reporting requirements
for OPEB plans. The city implemented this standard for fiscal year ending June 30, 2018. See
note 9 for additional information.
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, which affect the city:
• 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
• 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.
The city implemented this standard for fiscal year ending June 30, 2018.
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a
Construction Period
The objectives of this Statement are (1) to enhance the relevance and comparability of
information about capital assets and the cost of borrowing for a reporting period and (2) to
simplify accounting for interest cost incurred before the end of a construction period. This
Statement establishes accounting requirements for interest cost incurred before the end of a
construction period. Such interest cost includes all interest that previously was accounted for in
50
City of Tigard, Oregon
Notes to Basic Financial Statements
accordance with the requirements of paragraphs 5-22 of Statement No. 62, Codification of
Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and
AICPA Pronouncements, which are superseded by this Statement. This Statement requires that
interest cost incurred before the end of a construction period be recognized as an expense in
the period in which the cost is incurred. GASB Statement No. 89 would be effective for the city
for fiscal year ending June 30, 2021, however the city has chosen to implement this statement
early.
The following pronouncements have been issued by the Governmental Accounting Standards
Board (GASB) but not yet implemented by the city:
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.
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. 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.
GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and
Direct Placements
The primary objective of this Statement is to improve the information that is disclosed in notes
to government financial statements related to debt, including direct borrowings and direct
placements. It also clarifies which liabilities governments should include when disclosing
information related to debt. This Statement defines debt for purposes of disclosure in notes to
financial statements as a liability that arises from a contractual obligation to pay cash (or other
assets that may be used in lieu of cash) in one or more payments to settle an amount that is
fixed at the date the contractual obligation is established. This Statement requires that
additional essential information related to debt be disclosed in notes to financial statements,
including unused lines of credit; assets pledged as collateral for the debt; and terms specified in
debt agreements related to significant events of default with finance-related consequences,
51
City of Tigard, Oregon
Notes to Basic Financial Statements
significant termination events with finance-related consequences, and significant subjective
acceleration clauses. GASB Statement No. 88 will be effective for the city for fiscal year ending
June 30, 2019.
GASB Statement No. 90, Majority Equity Interests
Issued August 2018, the primary objective of this statement is to improve the consistency and
comparability of reporting a government's majority equity interest in a legally separate
organization; and to improve the relevance of financial statement information for certain
component units. GASB Statement No. 90 will be effective for the city for fiscal year ending
June 30, 2020.
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.
52
City of Tigard, Oregon
Notes to Basic Financial Statements
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.
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.
53
City of Tigard, Oregon
Notes to Basic Financial Statements
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaids in both government-wide and fund financial statements. Payments
classified as prepaid are primarily items that are being amortized such as prepaid insurance.
Property Held for Resale
Property held for resale is recorded as an asset and includes land and building inventory stated
at the lower of cost or market. At year-end no reductions in value were necessary, therefore
recorded amounts were equal to original cost.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads,
pathways, street lights, etc.) are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements, and in the proprietary fund
statements.
Capital assets are charged to expenditures as purchased or constructed in the governmental
fund statements, and capitalized in the proprietary fund statements. Capital assets are
recorded at historical cost or estimated historical cost. Donated assets, 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,
54
City of Tigard, Oregon
Notes to Basic Financial Statements
including the General Fund, Gas Tax Fund, Electrical Inspection Fund, Building Fund, Urban
Forestry Fund, Stormwater Fund, Water Fund, and Urban Renewal Agency Capital Improvement
Fund. Deposits are held by the city until the obligations for the projects have been completed
or forfeited for non-compliance with development requirements as determined by city
inspection staff.
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
applicable governmental activities, business-type activities, or proprietary fund type in the
55
City of Tigard, Oregon
Notes to Basic Financial Statements
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 liability 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 that cannot be spent because they are either in a
nonspendable form or legally or contractually required to be maintained intact. Resources
in nonspendable form include inventories, prepaids, deposits, advances from internal loans
and property assets held for resale.
Restricted for amounts with constraints placed on the use of resources are either (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.
56
City of Tigard, Oregon
Notes to Basic Financial Statements
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.
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.
57
City of Tigard, Oregon
Notes to Basic Financial Statements
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.
Transportation Capital Improvement Project Fund — This capital project fund accounts
for capital improvement projects funded with transportation revenues; including Gas
Tax, Traffic Impact Fees and Transportation Development Tax.
Proprietary funds
Proprietary funds are used to account for the acquisition, operation and maintenance of
sewer, storm drainage, and water systems in the city. These funds are entirely or
predominantly self-supported through user charges to customers. The measurement focus is
upon net income determination, rather than upon determination of changes in current
financial resources. The following enterprise funds are the city's major proprietary funds:
Enterprise funds:
Sanitary Sewer Fund -This fund accounts for the city's sewer utility operations.
58
City of Tigard, Oregon
Notes to Basic Financial Statements
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.
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.
59
City of Tigard, Oregon
Notes to Basic Financial Statements
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, 2018, expenditures exceeded appropriations in
the Urban Renewal Agency debt service fund by $443. 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 $724,477 on a
GAAP basis as June 30, 2018. This deficit is due to internal loans from the General Fund and
the Sewer Fund that have been spent on activities in the downtown urban renewal district.
The loans or advances are repaid over time with future revenues from tax increment
collections. For additional details on advances and interfund transactions see Note 7.
3. Cash and Investments
The city maintains a cash and investment pool that is available for use by all funds except the
Pension Trust Fund. Each fund type's portion of this pool is displayed on the combined balance
sheet as "cash and investments". Unrestricted and restricted cash and investments for the
primary government are reported in governmental and business-type activities. Restricted
balances reported in cash and 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.
60
City of Tigard, Oregon
Notes to Basic Financial Statements
Cash and investments, restricted and unrestricted, at June 30, 2018:
Primary Fiduciary
Type Government Activities Total
State Investment Pool (LGIP) $ 108,133,623 $ - $108,133,623
Money markets 5,946,035 - 5,946,035
Deposits with financial institutions 10,719,024 - 10,719,024
Cash with fiscal agent 51,045 - 51,045
Petty cash/cash on hand 7,367 - 7,367
r
Total cash 124,857,094 - 124,857,094
U.S. Agencies 6,424,910 - 6,424,910
Asset allocation/stable value fund - 15,616,909 15,616,909
Corporate bonds 497,180 958,979 1,456,159
Corporate stocks - 11,723,905 11,723,905
Total investments 6,922,090 28,299,793 35,221,883
Total cash and investments $ 131,779,184 $ 28,299,793 $160,078,977
Governmental Business Type Fiduciary
Total
Activities Activities Activities
Cash and investments $ 27,282,087 $ 34,172,167 $ - $ 61,454,254
Restricted cash and investments 49,632,311 20,692,619 28,299,793 98,624,723
Total cash and investments $ 76,914,398 $ 54,864,786 $ 28,299,793 $ 160,078,977
Deposits
Custodial Credit Risk. There is a risk that, in the event of a bank failure, the city's deposits may
not be returned. The city's deposit policy is in accordance with Oregon Revised Statutes (ORS)
295. Cash with financial institutions include bank demand deposits and bank money market
accounts. The combined total book balance at June 30, 2018 was $16,665,058 and the total
bank balance is $17,244,685. Of these deposits, $500,000 was covered by federal depository
insurance and $16,744,685 was collateralized in accordance with 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.
61
City of Tigard, Oregon
Notes to Basic Financial Statements
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. In addition, the city's 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
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 investment policy, which adheres to State of Oregon law, states bank deposits with any
one qualified institution shall not exceed 20 percent of the portfolio.
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.
At June 30, 2018, the city's fair value in the LGIP was $108,133,623. 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
62
City of Tigard, Oregon
Notes to Basic Financial Statements
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, 2018:
• U.S. Agencies at $6,424,910 are valued using a matrix-pricing model (Level 2).
• Corporate Bonds at $497,180 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, 2018
the total restricted investments in the pension plan were $28,299,793. 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.
At June 30, 2018, 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) * $ 108,133,623 94.0% < 1
U.S. Agencies 6,424,910 5.6% 1.74
Corporate Bonds 497,180 0.4% < 1
Total investments $ 115,055,713 100.0%
Portfolio weighted average maturity 1.87
* 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.
63
City of Tigard, Oregon
Notes to Basic Financial Statements
Concentration of credit risk: Concentration of credit risk is the risk of loss attributed to the
magnitude of a government's investment in a single issuer. The city's policy for investing in
individual issuers varies depending on the type of investments. Following are maximum
instrument diversification per city policy. At year-end the city was in compliance with this
policy.
• U.S. Agency securities are restricted to no more than 90 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: The city's policy, which adheres to State of Oregon law, is to limit its Corporate and
Municipal investments to the following: Issuers within Oregon must be rated "A" (bonds) or A-
2 / P-2 (commercial paper) or better by Standard and Poor's, Moody's Investors Service or any
other nationally recognized statistical rating organization. Issuers not in Oregon must be rated
AA/Aa (bonds) or A-1/ P-1 (commercial paper) or better.
At June 30, 2018 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 $ 108,133,623 93.98%
Corporate Bonds Aa2 AA A+ 497,180 0.43%
US Agency Aaa AA+ AAA 497,335 0.43%
US Agency Aaa N/R AAA 990,070 0.86%
US Agency N/R N/R N/R 491,020 0.43%
US Agency Aaa AA+ N/R 993,430 0.86%
US Agency Aaa AA+ AAA 497,475 0.43%
US Agency Aaa AA+ N/R 982,270 0.85%
US Agency Aaa AA+ N/R 987,920 0.86%
US Agency Aaa N/R N/R 985,390 0.86%
Total investments $ 115,055,713 100.00%
64
City of Tigard, Oregon
Notes to Basic Financial Statements
4. Accounts Receivable
Accounts receivable as of June 30, 2018 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:
Allowance
Gross for Doubtful Receivables,
Accounts Taxes Assessments Receivables Accounts Net
Governmental Activities
General $4,847,386 $730,915 $ - $5,578,301 $ (2,082,310) $ 3,495,991
Gas tax 377,355 - - 377,355 - 377,355
Transportation development tax 1,303 - 3,413 4,716 - 4,716
Parks SDC 1,493 - - 1,493 - 1,493
Transportation capital improvement fund 1,029,393 - - 1,029,393 - 1,029,393
Nonmajor governmental 971,471 140,939 319,893 1,432,303 - 1,432,303
Internal service 71,424 - - 71,424 - 71,424
$7,299,825 $871,854 $ 323,306 $8,494,985 $ (2,082,310) $ 6,412,675
Business-Type Activities
Sanitary sewer $2,716,430 $ - $ - $2,716,430 $ - $ 2,716,430
Stormwater 538,649 - - 538,649 - 538,649
Water 3,523,945 - - 3,523,945 - 3,523,945
$6,779,024 $ - $ - $6,779,024 $ - $ 6,779,024
Total receivables $13,191,699
Shown on the Statement of Net Positions as:
Accounts receivable, net $11,996,539
Property taxes receivable 871,854
Assessment liens receivable 323,306
$13,191,699
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, 2018, $2,776,412 was outstanding for
municipal court receivables with a related allowance for doubtful accounts of$2,083,310.
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, 2018, the portion of the assessments receivable
balance that represents delinquent accounts is insignificant.
65
City of Tigard, Oregon
Notes to Basic Financial Statements
5. Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2018 was as
follows:
Balances Balances
Governmental activities June 30,2017 Additions Deletions Transfers June 30, 2018
Non-depreciable:
Land $ 26,009,224 $ - $ - $ - $ 26,009,224
Construction in progress 5,621,366 6,334,256 - (4,434,807) 7,520,815
Total non-depreciable 31,630,590 6,334,256 - (4,434,807) 33,530,039
Depreciable:
Building and improvements 23,544,033 - - - 23,544,033
Land improvements 8,760,942 97,000 - 574,112 9,432,054
Machinery and equipment 2,735,368 221,851 (35,178) - 2,922,042
Autos and trucks 2,873,858 471,075 (248,878) - 3,096,055
Office equipment 3,141,646 225,195 - - 3,366,841
Infrastructure 245,655,223 2,912,576 - 3,860,695 252,428,494
Total depreciable 286,711,069 3,927,697 (284,056) 4,434,807 294,789,518
Accumulated depreciation:
Building and improvements (9,010,510) (654,642) - - (9,665,152)
Land improvements (6,877,898) (562,562) - - (7,440,460)
Machinery and equipment (2,494,915) (123,056) 35,178 - (2,582,793)
Autos and trucks (2,010,923) (255,232) 206,773 - (2,059,382)
Office equipment (1,753,653) (264,677) - - (2,018,330)
Infrastructure (76,783,387) (3,236,550) - - (80,019,937)
Total accumulated depreciation (98,931,286) (5,096,719) 241,951 - (103,786,054)
Governmental activities capital
assets, net $219,410,373 $5,165,234 $ (42,105) $ - $224,533,503
-
Depreciation expense for governmental activities is charged to functions as follows:
Community services $ 322,498
Public works 4,567,653
Community development 7,306
Policy and administration 199,262
Total depreciation for governmental activities $ 5,096,719
66
City of Tigard, Oregon
Notes to Basic Financial Statements
Capital assets activity for business-type activities for the year ended June 30, 2018, was as
follows:
Balances Balances
Business-type activities June 30,2017 Additions Deletions Transfers June 30,2018
Non-depreciable:
Land $ 5,237,285 $ - $ - $ 6,738,625 $ 11,975,910
Construction in progress 172,290,720 5,712,661 _ - (175,930,319) 2,073,062
Total non-depreciable 177,528,005 5,712,661 - (169,191,694) 14,048,972
Depreciable:
Building and improvements 1,879,733 - - 75,443,834 77,323,567
Land Improvements - - - 7,505,761 7,505,761
Sewer system 28,878,392 302,976 - 2,294,283 31,475,651
Stormwater system 20,256,185 421,153 - 820,597 21,497,935
Water system 65,981,929 132,408 - 81,718,870 147,833,207
Equipment 1,855,779 209,109 - 1,408,349 3,473,237
Autos and trucks 1,796,998 264,633 - - 2,061,631
Total depreciable 120,649,016 1,330,279 - 169,191,694 291,170,989
Accumulated depreciation:
Building and improvements (1,191,533) (45,576) - - (1,237,109)
Sewer system (11,837,190) (674,208) - - (12,511,398)
Stormwater system (8,722,256) (520,112) - - (9,242,368)
Water system (31,085,595) (1,328,145) - - (32,413,740)
Equipment (1,640,985) (97,943) - - (1,738,928)
Autos and trucks (1,661,840) (49,940) - - (1,711,780)
Total accumulated depreciation (56,139,399) (2,715,924) - - (58,855,323)
Business-type activities capital
assets, net $242,037,622 $ 4,327,016 $ - $ - $246,364,638
Depreciation expense for business-type activities is charged to activities as follows:
Sanitary sewer $ 737,684
Stormwater 547,859
Water 1,430,381
Total depreciation for business-type activities $ 2,715,924
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, 2018 the outstanding balance on the 2011B bonds was $4,090,000.
67
City of Tigard, Oregon
Notes to Basic Financial Statements
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, 2018, the outstanding balance on the bonds
was $12,555,000 and the balance of the unamortized premium was $149,297.
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, 2018 the
outstanding balance on the bonds was $1,625,000.
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
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 1,760,000 434,425 2,194,425
2024-2028 4,955,000 1,511,400 6,466,400
2029-2031 3,540,000 341,526 3,881,526
$ 18,270,000 $ 4,789,927 $ 23,059,927
Premium 149,297
Total $ 18,419,297
68
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, 2018 was $124,219 with principal and
interest payments as follows:
Year Ending
June 30, Principal Interest Total
2019 $ 95,800 $ 7,279 $ 103,079
2020 28,419 1,021 29,440
Total $ 124,219 $ 8,300 $ 132,519
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, 2018, the
balance outstanding on the bank loan was $910,000. Future principal and interest payments
on the loan are as follows:
Year Ending
June 30, Principal Interest Total
2019 $ 130,000 $ 25,118 $ 155,118
2020 780,000 11,681 791,681
Total $ 910,000 $ 36,799 $ 946,799
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 and fully depreciated as of
June 30, 2018 when the balance on the capital lease was paid in full.
69
City of Tigard, Oregon
Notes to Basic Financial Statements
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,
2018, the balance on the note payable was $1,803,034. Future debt service requirements are
as follows:
Year Ending
June 30, Principal Interest Total
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 120,533 40,650 161,183
2024-2028 659,125 146,791 805,916
2029-2032 575,343 42,613 617,956
Total $ 1,803,034 $ 426,753 $ 2,229,787
Water Project Financing
In fiscal year 2010-2011 the City of Tigard's City Council authorized up to $160 million in bonds
to help finance a joint water supply project with the City of Lake Oswego to provide Tigard a
share of a local water source. The arrangement with Lake Oswego to share a water system is
referred to as the Lake Oswego/Tigard Water Partnership project.
In fiscal year 2011-2012 the city issued $97,720,000 of water revenue bonds to be used to fund
capital projects for the water system in connection with the Lake Oswego/Tigard Water
Partnership project. The bonds were issued at a premium of $8,196,325 with interest rates
from 3.0 percent to 5.0 percent. At June 30, 2018, the balance of the 2012 water revenue
bonds was $93,915,000 and the balance of the unamortized premium was $5,473,919.
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, 2018, the balance of the 2015 water revenue bonds was $30,485,000 and the balance of
the unamortized premium was $3,902,006.
70
City of Tigard, Oregon
Notes to Basic Financial Statements
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 2018 were $16,454,882 as compared to the total debt service of
$8,228,950. The computation of water revenue bonds debt coverage is noted in the statistical
section of this document. 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
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 2,565,000 5,664,550 8,229,550
2024-2028 14,845,000 26,309,750 41,154,750
2029-2033 19,015,000 22,128,875 41,143,875
2034-2038 24,405,000 16,741,375 41,146,375
2039-2043 31,345,000 9,806,875 41,151,875
2044-2046 22,930,000 1,758,000 24,688,000
124,400,000 $ 106,035,125 $ 230,435,125
Premium 9,375,926
Total $ 133,775,926
71
City of Tigard, Oregon
Notes to Basic Financial Statements
Long-term debt activity, including compensated absences, for the year ended June 30, 2018
was as follows:
Balances June Balances June Due in one
30, 2017 Additions Retirements 30,2018 year
Governmental activities
Bonds payable $ 20,675,137 $ - $ 2,255,840 $ 18,419,297 $ 2,324,703
Special assessment debt 213,219 - 89,000 124,219 95,800
Bank loan payable 1,040,000 - 130,000 910,000 130,000
Capital lease 15,472 - 15,472 - -
Total debt 21,943,828 - 2,490,312 19,453,516 2,550,503
Other long-term liabilities
Compensated absences 1,332,497 1,825,790 1,736,232 1,422,055 1,365,173
Governmental activities $ 23,276,325 $ 1,825,790 $ 4,226,544 $ 20,875,571 $ 3,915,676
Business-type activities
Note payable $ 1,907,007 $ - $ 103,973 $ 1,803,034 $ 107,092
Bonds payable 136,420,281 - 2,644,355 133,775,926 2,720,335
Total debt 138,327,288 - 2,748,328 135,578,960 2,827,427
Other long-term liabilities
Compensated absences 100,170 150,467 145,687 104,950 101,507
Business-type activities $ 138,427,458 $ 150,467 $ 2,894,015 $ 135,683,910 $ 2,928,934
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, 2018
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
72
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
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 - 3,932 - (3,420) - 512
2024-2028 212,180 18,543 (171,863) (16,286) 40,317 2,257
2029-2033 379,389 10,223 (327,849) (9,185) 51,540 1,037
2034-2036 165,863 1,447 (155,400) (1,395) 10,463 52
$ 757,432 $49,871 $(655,112) $(43,966) $102,320 $5,904
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,
2018 are as follows:
Gas Tax Trans CIP Non-Major Internal Total
Fund Fund Fund Govt'I Fund Service Sewer Storm Water Transfers Out
General $ - $ - $1,344,395 $255,466 $ - $ - $ 27,460 $ 1,627,321
Gas Tax - 1,119,165 48,749 5,487 - - - 1,173,401
Trans Dev Tax - 20,733 - 26,262 - - - 46,995
Parks SDC - - 852,888 16,383 - - - 869,271
Nonmajor 150,000 127,550 462,088 206,364 - - - 946,002
Internal Service - - - 295 - - - 295
Sanitary Sewer - - - 22,453 - 324,424 13,413 360,290
Stormwater - 6,399 41,252 5,129 63,424 - 17,878 134,082
Water - - 1,408 171,211 - - - 172,619
Total Transfers In $150,000 $1,273,847 $2,750,777 $709,050 $63,424 $324,424 $ 58,751 $ 5,330,276
Reconciliation: Transferred to governmental funds from:
Sewer Fund $ 22,453
Stormwater Fund 52,780
Water Fund 172,619
Transferred from governmental funds to enterprise funds:
From General Fund to Water Fund (27,460)
Total transfers per Statement of Activities $220,392
These transfers have been eliminated in the government-wide statement of activities other
than the net effect between governmental activities and business-type activities.
73
City of Tigard, Oregon
Notes to Basic Financial Statements
8. Change in Accounting Principle
In implementing GASB Statement No. 75, the city has restated beginning net position in
order to recognize the correct Total OPEB Liability for the city's Implicit Rate Subsidy plan
and to recognize the city's proportionate share of the Net OPEB Asset of the Oregon Public
Employees Retirement Systems (OPERS). The city had previously reported a Net OPEB
Obligation in accordance with GASB Statement No. 45 related to the Implicit Rate Subsidy
plan, which has been replaced with the Total OPEB Liability. The restatement also
recognizes a deferred outflow of resources related to OPEB for contributions from each plan
made after the June 30, 2017 measurement date.
Governmental Business-Type
Activities Activities Total
Net position - beginning (as reported) $246,280,611 $151,035,149 $397,315,760
Cumulative effect of change in accounting principle 351,810 27,089 378,899
Net position - beginning (as restated) $246,632,421 $151,062,238 $397,694,659
9. Post-Employment Benefits Other than Pensions (OPEB)
The other postemployment benefits (OPEB) for the city combines two separate plans. The
city provides an implicit rate subsidy for retiree health insurance premiums, and a
contribution to the State of Oregon's PERS cost-sharing multiple-employer defined health
insurance benefit plan.
Financial Statement Presentation
The city's two OPEB plans are presented in the aggregate on the Statement of Net Position.
74
City of Tigard, Oregon
Notes to Basic Financial Statements
The amounts on the financial statements relate to the plans as follows:
Implicit Rate PERS RHIA Total OPEB
Subsidy Plan Plan on Financials
Net OPEB Asset $ - $ 25,563 $ 25,563
Deferred Outflows of Resources
Contributions After the Measurement Date 48,484 28,043 76,527
Total OPEB Liability 1,421,585 - 1,421,585
Deferred Inflows of Resources
Change in Proportionate Share - 1,233 1,233
Change in Assumptions (84,117) - (84,117)
Difference in Earnings - 11,839 11,839
OPEB Expense (Income) 130,369 (319) 130,050
(Included in program expenses on Statement of Activities
Implicit Rate Subsidy
Plan Description
The city's single-employer defined benefit postemployment healthcare plan is administered by
Citycounty Insurance Services of Oregon (CIS). Benefit provisions are established through
negotiations between the city and representatives of collective bargaining units or through
resolutions passed by city council. No assets are accumulated in a trust that meets the criteria
in paragraph 4 of Statement 75.
The city's postemployment healthcare plan administrator issues a publicly available financial
report that includes financial statements and required supplementary information for CIS. This
report may be obtained on their website at www.cisoregon.org/About/TrustDocs.
Benefits Provided
The plan provides eligible retirees and their dependents under age 65 the same health care
coverage at the same premium rates as offered to active employees. The retiree is
responsible for the premiums. As of the valuation date of July 1, 2016, the following
employees were covered by the benefit terms:
Inactive employees or beneficiaries receiving benefits 10
Active employees 274
284
75
City of Tigard, Oregon
Notes to Basic Financial Statements
Total OPEB Liability, OPEB Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to OPEB
The city's total OPEB liability of$1,421,585 was measured as of June 30, 2017, and was
determined by an actuarial valuation as of July 1, 2016.
For the fiscal year ended June 30, 2018, the city recognized OPEB expense from this plan of
$130,369. At June 30, 2017, the city reported deferred outflows of resources and deferred
inflows of resources related to this OPEB plan from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Changes of assumptions $ - $ (84,117)
Contributions subsequent to the measurement date 48,484 -
Total $ 48,484 $ (84,117)
Deferred outflows of resources related to OPEB of$48,484 resulting from the city's
contributions subsequent to the measurement date will be recognized as a reduction of the
total OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to OPEB will be recognized
in OPEB expense as follows:
Year ended June 30: Annual Recognition
2019 $ (12,191)
2020 (12,191)
2021 (12,191)
2022 (12,191)
2023 (12,191)
Thereafter (23,162)
$ (84,117)
76
City of Tigard, Oregon
Notes to Basic Financial Statements
Actuarial Assumptions and Other Inputs
The total OPEB liability in the July 1, 2016 valuation was determined using the following
actuarial assumptions and other inputs, applied to all periods included in the measurement,
unless otherwise specified:
Actuarial cost method Entry Age Normal
Inflation 2.5 percent
Salary increases 3.5 percent
Healthy mortality RP-2000 healthy white collar male and female mortality tables, set back
one year for males. Mortality is projected on a generational basis using
Scale BB for males and females.
Discount rate 3.58 percent (change from 2.85 percent in previous measurement period)
Healthcare cost trend rate Medical and vision: 7.5 percent per year, decreasing to 5.0 percent
Dental: 4.5 percent per year
The discount rate was based on Bond Buyer 20-Year General Obligation Bond Index.
Changes in the Total OPEB Liability
Total OPEB
Liability
Balance as of June 30, 3017 $ 1,434,620
Changes for the year:
Service cost 99,672
Interest on total OPEB liability 42,888
Effect of assumptions changes or inputs (96,307)
Benefit payments (59,288)
Balance as of June 30, 2018 $ 1,421,585
Changes in assumptions is the result of the change in the discount rate from 2.85 percent to
3.58 percent.
Sensitivity of the Total OPEB Liability
The following presents the city's total OPEB liability, as well as what the liability would be if
it were calculated using a discount rate that is 1-percentage-point lower (2.58 percent) or 1-
percentage-point higher (4.58 percent) than the current discount rate. A similar sensitivity
analysis is then presented for changes in the healthcare trend assumption.
77
City of Tigard, Oregon
Notes to Basic Financial Statements
Discount Rate:
1% Decrease Current Discount 1% Increase
(2.58%) Rate (3.58%) (4.58%)
Total OPEB Liability $ 1,556,080 $ 1,421,585 $ 1,297,520
Healthcare Cost Trend:
1% Decrease Current Healthcare 1% Increase (8.5%
(6.5% decreasing Trend Rate (7.5% decreasing to
to 4.0%) decreasing to 5.0%) 6.0%)
Total OPEB Liability $ 1,246,669 $ 1,421,585 $ 1,628,512
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 August 29,
2003. 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
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.
78
City of Tigard, Oregon
Notes to Basic Financial Statements
Contributions
PERS funding policy provides for 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, 2015 actuarial valuation. The rates based on a percentage of
payroll, first became effective July 1, 2017. The city's contribution rates for the period were
0.50% for Tier One/Tier Two members, and 0.43% for OPSRP members. The city's total
contributions for the year ended June 30, 2018 was $29,366.
OPEB Assets, Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to OPEB
At June 30, 2018, the city reported an asset of $25,563 for its proportionate share of the
OPERS net OPEB asset. The net OPEB asset was measured as of June 30, 2017, and the total
OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation as
of December 31, 2015 rolled forward to June 30, 2017. The city's proportion of the net OPEB
asset was based on the city's contributions to the RHIA program during the measurement
period relative to contributions from all participating employers. At June 30, 2017, the city's
proportionate share was 0.0613%, which is a decrease from its proportion of 0.0675% as of
June 30, 2016.
For the year ended June 30, 2018, the city recognized OPEB income from this plan of $319. At
June 30, 2018, the city reported deferred outflows of resources and deferred inflows of
resources related to this OPEB plan from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Net difference between projected and actual earnings $ - $ 11,839
Changes in proportionate share - 1,233
Contributions subsequent to the measurement date 28,043 -
Total $ 28,043 $ 13,072
Deferred outflows of resources related to OPEB of $28,043 resulting from the city's
contributions subsequent to the measurement date will be recognized as either a reduction of
the net OPEB liability or an increase in the net OPEB asset in the year ended June 30, 2019.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized in OPEB expense as follows:
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City of Tigard, Oregon
Notes to Basic Financial Statements
Year ended June 30: Annual Recognition
2019 $ (3,416)
2020 (3,416)
2021 (3,280)
2022 (2,960)
$ (13,072)
Actuarial Methods and Assumptions
The total OPEB liability in the December 31, 2015 actuarial valuation was determined using the
following actuarial methods and assumptions:
Actuarial cost method Entry Age Normal
Amortization method Amortized as a level percentage of payroll as layered bases
over a closed 10 year period
Asset valuation method Market value of assets
Inflation 2.5 percent
Investment rate of return 7.5 percent
Salary increases 3.5 percent
Healthy mortality Healthy retirees and beneficiaries:
RP-2000 Sex-distinct, generational per Scale BB, with collar
adjustments and set-backs as described in the valuation
Active members:
Mortality rates are a percentage of healthy retiree rates that
vary by group, as described in the valuation
Disabled retirees:
Mortality rates are a percentage(70 percent for males, 95
percent for females) of the RP-2000 sex-distinct, generational
per Scale BB, disabled mortality table
Healthcare cost trend rate Ranging from 6.3 percent in 2016 to 4.4 percent in 2094
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.
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City of Tigard, Oregon
Notes to Basic Financial Statements
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 PERS Board reviewed long-term assumptions developed by both
Milliman's capital market assumptions team and the Oregon Investment Council's (OIC)
investment advisors. The table below shows Milliman's assumptions for each of the asset
classes in which the plan was invested at that time based on the OIC long-term target asset
allocation. The OIC's description of each asset class was used to map the target allocation to
the asset classes shown below. Each asset class assumption was based on a consistent set of
underlying assumptions, and includes adjustment for the inflation assumption. These
assumptions are not based on historical returns, but instead are based on a forward-looking
capital market economic model.
Compound
Asset Class Target Annual Return
(Geometric)
Core Fixed Income 8.00% 4.00%
Short-Term Bonds 8.00 3.61
Bank/Leveraged Loans 3.00 5.42
High Yield Bonds 1.00 6.20
Large/Mid Cap US Equities 15.75 6.70
Small Cap US Equities 1.31 6.99
Micro Cap US Equities 1.31 7.01
Developed Foreign Equities 13.13 6.73
Emerging Market Equities 4.12 7.25
Non-US Small Cap Equities 1.88 7.22
Private Equity 17.50 7.97
Real Estate (Property) 10.00 5.84
Real Estate (REITS) 2.50 6.69
Hedge Fund of Funds - Diversified 2.50 4.64
Hedge Fund - Event-driven 0.63 6.72
Timber 1.88 5.85
Farmland 1.88 6.37
Infrastructure 3.75 7.13
Commodities 1.88 4.58
Assumed Inflation - Mean 2.50
Discount Rate
The discount rate used to measure the total OPEB liability was 7.50 percent for the RHIA 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 RHIA plan's fiduciary net
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City of Tigard, Oregon
Notes to Basic Financial Statements
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 RHIA Plan was applied to all periods of projected benefit payments to
determine the total OPEB liability.
Sensitivity of the City's proportionate share of the net OPEB liability (asset) to changes in the
discount rate
The following presents the city's proportionate share of the net OPEB liability (asset)
calculated using the discount rate of 7.50 percent, as well as what the city's proportionate
share of the net OPEB 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 Current Discount 1% Increase
(6.50%) Rate (7.50%) (8.50%)
Net OPEB Liability (Asset) $ 3,563 $ (25,563) $ (50,336)
OPEB Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the
separately issued OPERS financial report.
Changes in Plan Provisions Subsequent to Measurement Date
The PERS Board lowered the Assumed Rate of Return from 7.50 percent to 7.20 percent on
July 28, 2017. This change is effective January 1, 2018, and will decrease the net OPEB asset or
increase the net OPEB liability in future periods.
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
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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
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.
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City of Tigard, Oregon
Notes to Basic Financial Statements
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.
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.
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City of Tigard, Oregon
Notes to Basic Financial Statements
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, 2015 actuarial valuation. The rates based
on a percentage of payroll, first became effective July 1, 2017. The rates in effect for the
period were 20.51 percent for Tier One/Tier Two police members and 13.39 percent for OPSRP
Pension Program Police member. The city's total contributions exclusive of the 6 percent "pick-
up" was $1,053,171.
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
$382,740 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, 2018, the city reported a liability of $9,835,041 for its proportionate share of the
OPERS net pension liability. The net pension liability was measured as of June 30, 2017, and
the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of December 31, 2015 rolled forward to June 30, 2017. 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, 2017, the city's proportion of OPERS net
pension liability was 0.07296 percent.
Annual Pension Cost
For the year ended June 30, 2018, the city recognized pension expense of $2,043,002. At June
30, 2018, the city reported deferred outflows or resources and deferred inflows of resources
related to pensions from the following sources:
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City of Tigard, Oregon
Notes to Basic Financial Statements
Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Differences between expected and actual experience $ 475,627 $ -
Changes of assumptions 1,792,753 -
Net difference between projected and actual earnings on investments 101,324 -
Changes in proportion 69,918 398,783
Differences between employer contributions and proportionate share
of contributions 90,883 52,829
Total (prior to post-MD contributions) 2,530,505 451,612
Contributions subsequent to the MD 937,027 -
Total $3,467,532 $451,612
Deferred outflows of resources related to pensions of $937,027 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,
2019. Other amounts reported as deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Deferred Outflows Deferred Inflows Net Deferred Outflows/Inflows
Amortization Period Amortization Period Amortization Period
FY2019 $1,461,158 FY2019 $134,460 FY2019 $1,326,698
FY2020 1,318,731 FY2020 134,460 FY2020 1,184,271
FY2021 886,850 FY2021 121,256 FY2021 765,594
FY2022 (217,395) FY2022 53,124 FY2022 (270,519)
FY2023 18,188 FY2023 8,312 FY2023 9,876
Total $3,467,532 Total $451,612 Total $3,015,920
Actuarial Methods and Assumptions
The total pension liability in the December 31, 2015 actuarial valuation was determined using
the following actuarial methods and assumptions:
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City of Tigard, Oregon
Notes to Basic Financial Statements
Actuarial Methods and Assumptions
Valuation Date December 31, 2015
Measurement Date June 30, 2017
Experience Study Report 2014, published September 23, 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
Projected 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
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.
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City of Tigard, Oregon
Notes to Basic Financial Statements
Compound
Asset Class Target Annual Return
(Geometric)
Core Fixed Income 8.00% 4.00%
Short-Term Bonds 8.00 3.61
Bank/Leveraged Loans 3.00 5.42
High Yield Bonds 1.00 6.20
Large/Mid Cap US Equities 15.75 6.70
Small Cap US Equities 1.31 6.99
Micro Cap US Equities 1.31 7.01
Developed Foreign Equities 13.13 6.73
Emerging Market Equities 4.12 7.25
Non-US Small Cap Equities 1.88 7.22
Private Equity 17.50 7.97
Real Estate (Property) 10.00 5.84
Real Estate (REITS) 2.50 6.69
Hedge Fund of Funds - Diversified 2.50 4.64
Hedge Fund - Event-driven 0.63 6.72
Timber 1.88 5.85
Farmland 1.88 6.37
Infrastructure 3.75 7.13
Commodities 1.88 4.58
Assumed Inflation - Mean 2.50
Changes in Plan Provisions During the Measurement Period
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
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.
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City of Tigard, Oregon
Notes to Basic Financial Statements
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 $ 16,760,706 $ 9,835,041 $ 4,043,903
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 Mass Mutual, 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, 2018:
Classification of eligible employees Enrollment
Represented (SEIU) employees 113
Management employees 84
Police (non-sworn) employees 21
Total enrolled employees 218
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 $1,675,261 for the year ended June 30, 2018.
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City of Tigard, Oregon
Notes to Basic Financial Statements
Contributions to the plans are made to a fiduciary. All assets and income of the Plan are held in
trust for the exclusive benefit of the participants and their beneficiaries. Since the plans are
administered by the city, the assets, equity and operations of the plans are accounted for in
the General Employees Pension Plan Fund, a pension trust fund. The plans invest in various
money market and equity mutual funds. At June 30, 2018, the total net position of the pension
plan was $28,299,793, 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, 2018, 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 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.
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City of Tigard, Oregon
Notes to Basic Financial Statements
• 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.
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, 2018, the city's property tax revenues were reduced by an
estimated $14,000 as a result of the EZ program. For the fiscal year ended June 30, 2018,
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City of Tigard, Oregon
Notes to Basic Financial Statements
the Tigard Urban Renewal's property tax revenues were reduced by an estimated $400 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
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, 2018, the city's property tax revenues were reduced by an
estimated $32,000 as a result of this program. For fiscal year ended June 30, 2018 the
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City of Tigard, Oregon
Notes to Basic Financial Statements
Tigard Urban Renewal's property tax revenues were reduced by an estimated $900 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 enourages development
which supports downtown revitalizeation. 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, 2018, 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, 2018 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, 2018, the city abated property taxes totaling $47,000
under the three programs. For fiscal year ended June 30, 2018, the Tigard Urban Renewal's
abated property taxes totaling $1,330 under the three programs.
FY 2018 Taxes Abated
Tigard Urban
Tax Abatement Program City of Tigard Renewal
Enterprise Zone $ 14,000 $ 400
Non-Profit Low Income Housing Limited Tax Exemption 32,000 900
Vertical Housing Development Zone 1,000 30
Total $ 47,000 $ 1,330
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 19.75 percent of sewer service charges collected, 3.98 percent of sewer connection
93
City of Tigard, Oregon
Notes to Basic Financial Statements
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 2018 the city paid
$13,565,198 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.Joint Ventures
Lake Oswego/Tigard Water Partnership
The city has 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. As of June 30, 2018, the outstanding debt amount for the project is
$133,775,925. This multi-year project was completed by the end of fiscal year 2018. The city
has capitalizing its portion of the assets as of June 30, 2018. The city has kept its water
revenues and operating expenses separate.
Willamette Intake Facilities Commission
Willamette Intake Facilities Commission (the Commission or WIF) was organized in April 2018
under Oregon Revised Statute (ORS) 190 and was established by an agreement between the
cities of Wilsonville, Hillsboro, Tigard, Beaverton, Sherwood, and Tualatin Valley Water District.
The Commission is governed by a six-member board, with one representative appointed by
each member jurisdiction. The purpose of the Commission is to provide for the ownership,
management, and operation of the Willamette intake facilities which are used to withdraw
94
City of Tigard, Oregon
Notes to Basic Financial Statements
and transmit water to the parties. The Commission is managed by Tualatin Valley Water
District.
Expenses are allocated on a unit basis by the Commission. Each joint venturer's apportioned
share of the general administration expenses is determined by the following formula: 25
percent of the administrative costs for the fiscal year is divided evenly among the
Commission's membership; the remainder is divided among the Commission membership
according to their percentage share of the capacity ownership in the intake facilities.
Operations, maintenance, and repair expenses that are a result of use of the facilities are
allocated based on each party's proportionate use of the WIF. Operations, maintenance, and
repair expenses unrelated to usage will be allocated based on each party's proportionate
ownership of the WIF.
The following percentages were in effect at June 30, 2018:
Tualatin Valley Water District 39.40
City of Wilsonville 16.67
City of Sherwood 6.47
City of Tigard 10.00
City of Hillsboro 24.13
City of Beaverton 3.33
The city is recording the expenses for this multi-year project as part of capital assets in
Construction in Process. As of June 30, 2018 the city's investment in the WIF totaled $750,239.
16. Commitments
The city has entered into one contract for pavement maintenance and rehabilitation for total
of $2,110,902, with $1,810,925 remaining at June 30, 2018. This contract will be completed
during the first half of fiscal year 2019. The city's street maintenance fee is the resource for the
pavement rehabilitation project.
The city has also entered into a contract for the SW Wall Street Improvement project for a
total of $2,300,553. At June 30, 2018 $1,050,085 remained on this project. This project is
Federally funded from an Economic Development Grant.
Additionally, the city 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
95
City of Tigard, Oregon
Notes to Basic Financial Statements
the contract of sale is made, at which time title to the property will pass to the city. As of June
30, 2018, the city has paid $800,000 under the contract with the final payment of $600,000
due in July 2018.
The city has entered into other contracts for various services with commitments at June 30,
2018 of approximately $1,196,000.
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.
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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 30,2018
Budgeted Amounts Variance
Actual with final
Original _ Final Amounts budget
REVENUES
Taxes $ 15,359,468 $ 15,359,468 $ 15,610,757 $ 251,289
Licenses and permits 2,328,630 2,328,630 3,588,087 1,259,457
Intergovernmental revenues 6,074,334 6,101,368 7,690,818 1,589,450
Charges for services 2,783,381 2,783,381 2,289,833 (493,548)
Fines and forfeitures 692,476 692,476 594,773 (97,703)
Franchise fees 6,238,652 6,238,652 6,102,443 (136,209)
Interest earnings 103,722 103,722 881,008 777,286
Miscellaneous revenues 56,432 109,252 106,830 _ (2,422)
Total revenues 33,637,095 33,716,949 36,864,549 3,147,600
EXPENDITURES
Community services 23,905,436 23,995,160 22,580,352 1,414,808
Public works 4,914,851 4,959,851 4,266,144 693,707
Community development 3,863,116 4,085,616 3,123,971 961,645
Policy and administration 866,598 866,598 795,586 71,012
Total expenditures 33,550,001 33,907,225 30,766,053 3,141,172
Change in fund balance before
other financing sources(uses) 87,094 (190,276) 6,098,496 6,288,772
OTHER FINANCING SOURCES(USES)
Transfer out (1,913,426) (1,913,426) (1,627,321) 286,105
Contingency (1,295,000) (987,500) - 987,500
Reserve for future expenditures (11,632,779) (11,632,779) - 11,632,779
Total other financing(uses) (14,841,205) (14,533,705) (1,627,321) 12,906,384
Change in fund balance (14,754,111) (14,723,981) 4,471,175 19,195,156
Fund balance-beginning of the year 14,755,111 14,764,981 14,936,012 171,031
Fund balance-end of the year $ 1,000 $ 41,000 19,407,187 $ 19,366,187
Interfund loans are treated as reimbursements on a budgetary
basis and as receivables on a GAAP basis 655,112
Fund balance-GAAP basis $ 20,062,299
97
CITY OF TIGARD,OREGON
GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
State gas tax $ 2,912,205 $ 3,007,705 $ 3,256,428 $ 248,723
County gas tax 193,409 193,409 185,369 (8,040)
Licenses and permits 68,974 68,974 112,306 43,332
Interest earnings 55,732 55,732 522,811 467,079
Miscellaneous revenues 62,818 62,818 192,027 129,209
Total revenues 3,293,138 3,388,638 4,268,941 880,303
EXPENDITURES
Public works 2,331,702 2,441,702 2,145,494 296,208
*Debt service:
Principal 515,000 515,000 511,034 3,966
Interest 70,000 70,000 68,543 1,457
Total expenditures 2,916,702 3,026,702 2,725,071 301,631
Change in fund balance before
other financing sources(uses) 376,436 361,936 1,543,870 1,181,934
OTHER FINANCING SOURCES(USES)
Transfer in 150,000 150,000 150,000 -
Transfer out (1,375,987) (1,498,487) (1,173,401) 325,086
Contingency (200,000) (63,000) - 63,000
Reserve for future expenditures (1,325,248) (1,325,248) - 1,325,248
Total other financing(uses) (2,751,235) (2,736,735) (1,023,401) 1,713,334
Change in fund balance (2,374,799) (2,374,799) 520,469 2,895,268
Fund balance-Beginning of the year 2,374,799 2,374,799 2,679,224 304,425
Fund balance-End of the year $ - $ - $ 3,199,693 $ 3,199,693
* Budget appropriation is made at the debt service program level
98
City of Tigard Oregon
Schedule of the City's Proportionate Share of the Net Pension Liability(Asset)
Oregon Public Employees Retirement System
Last Five Fiscal Years 1,2
2018 2017 2016 2015 2014
City's proportion of the net pension liability(asset) 0.072960% 0.074719% 0.081488% 0.074022% 0.074022%
City's proportionate share of the net pension
liability(asset) $9,835,041 $11,216,998 $4,678,602 $(1,677,869) $3,777,455
City's covered payroll $6,280,408 $ 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
payroll 156.60% 169.70% 75.62% -27.84% 69.61%
Plan fiduciary net position as a percentage of the
total pension liability 83.12% 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 2018 is July 1, 2016-June 30,
2017.
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
contributes 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.
99
City of Tigard, Oregon
Schedule of the City's Contributions
Oregon Public Employees Retirement System
Last Five Fiscal Years'
2018 2017 2016 2015 2014
Contractually required contributions $ 937,027 $ 787,306 $ 761,228 $ 782,812 $ 722,108
Contributions in relation to the
contractually required contribution (937,027) (787,306) (761,228) (782,812) (722,108)
Contribution deficiency(excess) $ - $ - $ - $ - $ -
City's covered payroll $ 5,941,342 $ 6,280,408 $ 6,610,002 $ 6,187,208 $ 6,025,900
Contributions as a percentage of
covered payroll 15.77% 12.54% 11.52% 12.65% 11.98%
110-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 31,2015 December 31,2013 December 31,2011
Effective July 2017-June 2018 July 2015-June 2017 July 2013-June 2015
Actuarial cost method: Entry Age Normal Entry Age Normal Projected Unit Credit
Actuarial valuation method: Market Value Market Value Market Value
Actuarial assumption:
Inflation rate 2.50 Percent 2.75 percent 2.75 percent
Projected salary increases 3.50 percent 3.75 percent 3.75 percent
Investment rate of return 7.50 percent 7.75 percent 8.00 percent
100
City of Tigard, Oregon
Schedule of the Changes in the City's Total OPEB Liability and Related Ratios
Implicit Rate Subsidy Plan
Last Fiscal Year''2
2018
Total OPEB Liability(in 1,000s)
Service cost $ 100
Interest 43
Changes in benefit terms -
Difference between expected and actual
experience -
Changes of assumptions or other inputs (96)
Benefit payments (59)
Net change in OPEB liability (12)
Total OPEB Liability- beginning 1,435
Total OPEB Liability-ending 1,423
Covered payroll 21,438
Total OBEP Liability as a % of covered payroll 6.64%
110-year trend information required by GASB Statement 75 will be presented prospectively
2 Amounts presented are for the measurement period reported during the fiscal year, which for FY
2018 is July 1, 2016 -June 30, 2017
101
City of Tigard, Oregon
Schedule of the City's Proportionate Share of the Net OPEB Liability(Asset)
Oregon Public Employees Retirement System, Retiremen Health Insurance Account
Last Two Fiscal Years',2
2018 2017
City's proportion of the net OPEB liability
(asset) 0.0613% 0.0675%
City's proportionate share of the net
OPEB liability(asset) $ (25,563) $ 18,323
City's covered payroll $ 6,280,408 $ 6,610,002
City's proportionate share of the net
OPEB liability(asset) as a percentage of
its covered payroll -0.4% 0.3%
Plan fiduciary net position as a
percentage of the total OPEB liability 108.9% 80.5%
110-year trend information required by GASB Statement 75 will be presented prospectively
2 Amounts presented are for the measurement period reported during the fiscal year, which for FY 2018 is
July 1, 2016 -June 30, 2017
102
City of Tigard, Oregon
Schedule of the City's Contributions
Oregon Public Employees Retirement System, Retirement Health Insurance Account
Last Two Fiscal Years 1
2018 2017
Contractually required contributions $ 29,366 $ 31,820
Contributions in relation to the contractually required
contribution (29,366) (31,820)
Contribution deficiency(excess) $ - $ -
City's covered payroll $ 5,941,342 $ 6,280,408
Contributions as a percentage of covered payroll 0A9% 0.51%
110-year trend information required by GASB Statement 75 will be presented prospectively
NOTES TO SCHEDULE
Actuarial Assumptions and Methods Used to Actuarially Determine Contributions:
Actuarial Valuation December 31, 2015 December 31, 2013
Effective July 2017 -June 2019 July 2015-June 2017
Actuarial cost method: Entry Age Normal Entry Age Normal
Actuarial valuation method: Market Value Market Value
Actuarial assumption:
Inflation rate 2.50 percent 2.75 percent
Projected salary increases 3.50 percent 3.75 percent
Investment rate of return 7.50 percent 7.75 percent
Healthcare cost inflation Ranging from 6.3% in Ranging from 6.1% in
2016 to 4.4% in 2094 2014 to 4.7% in 2083
103
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Other Supplementary
Information
CITY OF TIGARD,OREGON
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30,2018
Special Debt Service Capital Project
Revenue Funds Funds Funds Total
ASSETS
Cash and investments $ 779,350 $ - $ 3,190,191 $ 3,969,541
Accounts receivable 314,704 - 648,867 963,571
Property taxes receivable - 140,939 - 140,939
Assessment liens receivable - 319,893 - 319,893
Interest receivable - 7,900 - 7,900
Prepaids 17,040 - - 17,040
Restricted cash and investments 11,331,846 1,764,773 9,528,311 22,624,930
Total assets $ 12,442,940 $ 2,233,505 $ 13,367,369 $ 28,043,814
LIABILITIES
Accounts payable and accrued liabilities $ 636,600 $ - $ 757,278 $ 1,393,878
Deposits 672,838 - - 672,838
Due to others 223,023 - - 223,023
Advances from other funds - - 757,432 757,432
Unearned revenue 50,000 - - 50,000
Total liabilities 1,582,461 - 1,514,710 3,097,171
DEFERRED INFLOWS OF RESOURCES
Resources not yet available:
Property taxes - 129,798 - 129,798
Transportation refund credits 11,792 - - 11,792
Special assessment liens - 319,893 123,590 443,483
Total deferred inflows of resources 11,792 449,691 123,590 585,073
FUND BALANCES
Non-spendable:
Prepaids 17,040 - - 17,040
Restricted for:
Street maintenance and improvements 1,674,381 - 6,781,917 8,456,298
Debt service - 1,783,814 - 1,783,814
Park development and improvements - - 2,216,803 2,216,803
Underground utilities - - 362,587 362,587
Building inspection 6,362,765 - - 6,362,765
Police services 266,093 - - 266,093
Library improvements 574,700 - - 574,700
Committed for:
Street maintenance and improvements - - 2,178,277 2,178,277
Urban forestry 1,129,454 - - 1,129,454
Assigned to:
City facilities - - 913,962 913,962
Park and recreation 824,254 - - 824,254
Unassigned - - (724,477) (724,477)
Total fund balances 10,848,687 1,783,814 11,729,069 24,361,570
Total liabilities,deferred inflows of
resources and fund balances $ 12,442,940 $ 2,233,505 $ 13,367,369 $ 28,043,814
104
CITY OF TIGARD,OREGON
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
for the year ended June 30,2018
Special Debt Service Capital Project
Revenue Funds Funds Funds Total
REVENUES
Taxes $ 887,038 $ 2,769,575 $ - $ 3,656,613
Special assessments - 50,036 - 50,036
Licenses and permits 3,947,842 - - 3,947,842
Intergovernmental revenues 65,304 - 697,712 763,016
Charges for services 1,273,974 - 5,969,465 7,243,439
Rental revenues - - 116,739 116,739
Fines and forfeitures 103,735 - - 103,735
Donations 96,527 - - 96,527
Interest earnings 136,891 86,125 23,641 246,657
Miscellaneous revenues 15,230 - 706 15,936
Total revenues 6,526,541 2,905,736 6,808,263 16,240,540
EXPENDITURES
Community services 50,896 - - 50,896
Public works 2,487,536 - - 2,487,536
Community development 2,177,385 - 44,043 2,221,428
Debt service:
Principal 268,966 1,674,000 - 1,942,966
Interest 36,075 787,588 - 823,663
Capital outlay - - 4,328,371 4,328,371
Total expenditures 5,020,858 2,461,588 4,372,414 11,854,860
Changes in fund balance before
other financing sources(uses) 1,505,683 444,148 2,435,849 4,385,680
OTHER FINANCING SOURCES(USES)
Transfer in 1,632,195 - 1,118,582 2,750,777
Transfer out (527,587) - (418,415) (946,002)
Total other financing sources(uses) 1,104,608 - 700,167 1,804,775
Changes in fund balance 2,610,291 444,148 3,136,016 6,190,455
Fund Balance-Beginning of the year 8,238,396 1,339,666 8,593,053 18,171,115
Fund Balance-End of the year $ 10,848,687 $ 1,783,814 $ 11,729,069 $ 24,361,570
105
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.
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CITY OF TIGARD,OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
June 30,2018
City Gas Electrical Criminal
Tax Inspection Building Forfeiture
Fund Fund Fund Fund
ASSETS
Cash and investments $ - $ - $ - $ -
Accounts receivable 166,491 2,775 1,785 -
Prepaids - - 17,040 -
Restricted cash and investments 1,519,682 333,075 6,759,619 344,701
Total assets $ 1,686,173 $ 335,850 $ 6,778,444 $ 344,701
LIABILITIES
Accounts payable $ - $ - $ 537,875 $ 806
Due to others - 603 144,618 77,802
Deposits - 24,702 26,691 -
Unearned revenue - - - -
Totalliabilities - 25,305 709,184 78,608
DEFERRED INFLOWS OF RESOURCES
Transportation refund credits 11,792 - _ - -
Total deferred inflow of resources 11,792
- -
FUND BALANCE
Non-spendable:
Prepaids - - 17,040 -
Restricted for:
Street maintenance and improvements 1,674,381 - - -
Building inspection - 310,545 6,052,220 -
Police services - - - 266,093
Library improvements - - - -
Committed for:
Urban forestry - - - -
Assigned for:
Park and recreation - - - -
Total fund balances 1,674,381 310,545 6,069,260 266,093
Total liabilities and fund
balances $ 1,686,173 $ 335,850 $ 6,778,444 $ 344,701
106
Urban Parks
Forestry Utility Library
Fund Fund Fund Total
$ - $ 779,350 $ - $ 779,350
670 142,823 160 314,704
- - - 17,040
1,750,229 - 624,540 11,331,846
$ 1,750,899 $ 922,173 $ 624,700 $ 12,442,940
$ - $ 97,919 $ - $ 636,600
- 223,023
621,445 - - 672,838
- 50,000 50,000
621,445 97,919 50,000 1,582,461
- - - 11,792
- 11,792
- - - 17,040
- - - 1,674,381
- - - 6,362,765
- - - 266,093
- - 574,700 574,700
1,129,454 - - 1,129,454
- 824,254 - 824,254
1,129,454 824,254 574,700 10,848,687
$ 1,750,899 $ 922,173 $ 624,700 $ 12,442,940
107
CITY OF TIGARD,OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
for the year ended June 30,2018
City Gas Electrical Criminal
Tax Inspection Building Forfeiture
Fund _ Fund Fund Fund
REVENUES
City gas tax $ 887,038 $ - $ - $ -
Licenses and permits - 300,129 3,647,713 -
Charges for services - - - -
Intergovernmental revenues - - 65,304 -
Fines and forfeitures - - - 103,735
Tree replacement revenue - - - -
Donations - - - -
Interest earnings 133,410 128 2,452 -
Miscellaneous revenues - 3,225 6,254 -
Total revenues 1,020,448 303,482 3,721,723 103,735
EXPENDITURES
Community services - - - 50,896
Public works - - - -
Community development - - 2,177,385 -
Debt service:
Principal 268,966 - - -
Interest 36,075 - - -
Total expenditures 305,041 - 2,177,385 50,896
Changes in fund balance
before other financing
sources(uses) 715,407 303,482 1,544,338 52,839
OTHER FINANCING SOURCES(USES)
Transfer in - - 300,000 -
Transfer out (124,393) (303,913) - (3,263)
Total other financing
sources(uses) (124,393) (303,913) 300,000 (3,263)
Changes in fund balance 591,014 (431) 1,844,338 49,576
Fund balance-Beginning of the year 1,083,367 310,976 4,224,922 216,517
Fund balance-End of the year $ 1,674,381 $ 310,545 $ 6,069,260 $ 266,093
108
Urban Parks
Forestry Utility Library
Fund Fund Fund Total
$ - $ - $ - $ 887,038
- - - 3,947,842
1,265,502 - 1,265,502
- - - 65,304
- - - 103,735
8,472 - - 8,472
- - 96,527 96,527
663 31 207 136,891
- 5,751 - 15,230
9,135 1,271,284 96,734 6,526,541
- - - 50,896
- 2,487,536 - 2,487,536
- - - 2,177,385
- - - 268,966
- - - 36,075
- 2,487,536 - 5,020,858
9,135 (1,216,252) 96,734 1,505,683
- 1,332,195 - 1,632,195
(96,018) - - (527,587)
(96,018) 1,332,195 - 1,104,608
(86,883) 115,943 96,734 2,610,291
1,216,337 708,311 477,966 8,238,396
$ 1,129,454 $ 824,254 $ 574,700 $ 10,848,687
109
CITY OF TIGARD,OREGON
CITY GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
City gas tax $ 619,511 $ 619,511 $ 887,038 $ 267,527
Interest earnings 34,584 34,584 133,410 98,826
Miscellaneous revenues 32,052 32,052 - (32,052)
Total revenues 686,147 686,147 1,020,448 334,301
EXPENDITURES
*Debt service:
Principal 272,000 272,000 268,966 3,034
Interest 38,000 38,000 36,075 1,925
Total expenditures 310,000 310,000 305,041 4,959
Changes in fund balance before
other financing sources(uses) 376,147 376,147 715,407 339,260
OTHER FINANCING SOURCES(USES)
Transfer out (239,829) (239,829) (124,393) 115,436
Contingency (300,000) (300,000) - 300,000
Reserve for future expenditures (451,585) (451,585) - 451,585
Total other financing sources(uses) (991,414) (991,414) (124,393) 867,021
Change in fund balance (615,267) (615,267) 591,014 1,206,281
Fund balance-Beginning of the year _ 615,267 615,267 1,083,367 468,100
Fund balance-End of the year $ - $ - $ 1,674,381 $ 1,674,381
* Budget appropriation is made at the debt service program level
110
CITY OF TIGARD,OREGON
ELECTRICAL INSPECTION FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original _ Final Amounts _budget
REVENUES
Licenses and permits $ 347,710 $ 347,710 $ 300,129 $ (47,581)
Interest earnings 1,207 1,207 128 (1,079)
Miscellaneous revenues - - 3,225 3,225
Total revenues 348,917 348,917 303,482 (45,435)
OTHER FINANCING(USES)
Transfer out (303,913) (303,913) (303,913) -
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (454,004) (454,004) - 454,004
Total other financing(uses) (807,917) (807,917) (303,913) 504,004
Change in fund balance (459,000) (459,000) (431) 458,569
Fund balance-Beginning of the year 459,000 459,000 310,976 (148,024)
Fund balance-End of the year $ - $ - $ 310,545 $ 310,545
111
CITY OF TIGARD,OREGON
BUILDING FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts _budget
REVENUES
Licenses and permits $ 3,442,378 $ 3,442,378 $ 3,647,713 $ 205,335
Intergovernmental revenues 8,281 8,281 65,304 57,023
Interest earnings 19,782 19,782 2,452 (17,330)
Miscellaneous revenues 7,967 7,967 6,254 (1,713)
Total revenues 3,478,408 3,478,408 3,721,723 243,315
EXPENDITURES
Community development 2,309,303 2,387,803 2,177,385 210,418
Change in fund balance before
other financing sources(uses) 1,169,105 1,090,605 1,544,338 453,733
OTHER FINANCING SOURCES(USES)
Transfer in 300,000 300,000 300,000 -
Contingency (250,000) (171,500) - 171,500
Reserve for future expenditures (6,587,411) (6,587,411) - 6,587,411
Total other financing sources(uses) (6,537,411) (6,458,911) 300,000 6,758,911
Change in fund balance (5,368,306) (5,368,306) 1,844,338 7,212,644
Fund balance-Beginning of the year 5,368,306 5,368,306 4,224,922 (1,143,384)
Fund balance-End of the year $ - $ - $ 6,069,260 $ 6,069,260
112
CITY OF TIGARD,OREGON
CRIMINAL FORFEITURE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 1,892 $ 1,892 $ - $ (1,892)
Forfeitures 43,000 43,000 103,735 60,735
Total revenues 44,892 44,892 103,735 58,843
EXPENDITURES
Community services 150,000 150,000 50,896 99,104
Change in fund balance before
other financing sources(uses) (105,108) (105,108) 52,839 157,947
OTHER FINANCING SOURCES(USES)
Transfer out (3,263) (3,263) (3,263) -
Reserve for future expenditures (176,789) (176,789) - 176,789
Total other financing sources(uses) (180,052) (180,052) (3,263) 176,789
Change in fund balance (285,160) (285,160) 49,576 334,736
Fund balance-Beginning of the year 285,160 285,160 216,517 (68,643)
Fund balance-End of the year $ - $ - $ 266,093 $ 266,093
113
CITY OF TIGARD,OREGON
URBAN FORESTRY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Tree replacement revenue $ 32,813 $ 32,813 $ 8,472 $ (24,341)
Interest earnings 4,060 4,060 663 _ (3,397)
Total revenues 36,873 36,873 9,135 (27,738)
OTHER FINANCING SOURCES(USES)
Transfer out (193,045) (193,045) (96,018) 97,027
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (984,528) (984,528) - 984,528
Total other financing sources(uses) (1,227,573) (1,227,573) (96,018) 1,131,555
Change in fund balance (1,190,700) (1,190,700) (86,883) 1,103,817
Fund balance-Beginning of the year 1,190,700 1,190,700 1,216,337 25,637
Fund balance-End of the year $ - $ - $ 1,129,454 $ 1,129,454
114
CITY OF TIGARD,OREGON
PARKS UTILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 1,000,000 $ 1,000,000 $ 1,265,502 $ 265,502
Interest earnings 500 500 31 (469)
Miscellaneous revenues - - 5,751 5,751
Total revenues 1,000,500 1,000,500 1,271,284 270,784
EXPENDITURES
Public works 2,620,194 2,620,194 2,487,536 132,658
Change in fund balance before
other financing sources(uses) (1,619,694) (1,619,694) (1,216,252) 403,442
OTHER FINANCING SOURCES(USES)
Transfer in 1,605,500 1,605,500 1,332,195 (273,305)
Contingency (100,000) (100,000) - 100,000
Reserve for future expenditures (661,408) (661,408) - 661,408
Total other financing sources(uses) 844,092 844,092 1,332,195 488,103
Change in fund balance (775,602) (775,602) 115,943 891,545
Fund balance-Beginning of the year 775,602 775,602 708,311 (67,291)
Fund balance-End of the year $ - $ - $ 824,254 $ 824,254
115
CITY OF TIGARD,OREGON
LIBRARY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES:
Donations $ - $ - $ 96,527 $ 96,527
Interest earnings 1,000 1,000 207 _ (793)
Total revenue 1,000 1,000 96,734 95,734
OTHER FINANCING SOURCES(USES)
Transfer out (100,000) (100,000) - 100,000
Reserve for future expenditures (372,892) (372,892) - 372,892
Total other financing sources(uses) (472,892) (472,892) - 472,892
Change in fund balance (471,892) (471,892) 96,734 568,626
Fund balance-Beginning of the year 471,892 471,892 477,966 6,074
Fund balance-End of the year $ - $ - $ 574,700 $ 574,700
116
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 30,2018
Bancroft Bond General Urban Renewal
Debt Service Obligation Debt Agency Debt
Fund Service Fund Service Fund Total
ASSETS
Property taxes receivable $ - $ 121,016 $ 19,923 $ 140,939
Assessment liens receivable 319,893 - - 319,893
Interest receivable - 6,644 1,256 7,900
Restricted cash and investments 81,861 1,247,177 435,735 1,764,773
Total assets $ 401,754 $ 1,374,837 $ 456,914 $ 2,233,505
DEFERRED INFLOWS OF RESOURCES
Resources not yet available:
Special assessments/liens $ 319,893 $ - $ - $ 319,893
Property taxes - 111,707 18,091 129,798
Total deferred inflows of resources 319,893 111,707 18,091 449,691
FUND BALANCES
Restricted for debt service 81,861 1,263,130 438,823 1,783,814
Total deferred inflows of
resources and fund balances $ 401,754 $ 1,374,837 $ 456,914 $ 2,233,505
117
CITY OF TIGARD,OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
for the year ended June 30,2018
Bancroft Bond General Urban Renewal
Debt Service Obligation Debt Agency Debt
Fund Service Fund Service Fund Total
REVENUES
Taxes $ - $ 2,300,422 $ 469,153 $ 2,769,575
Collection of bonded assessments 50,036 - - 50,036
Interest earnings 37,277 40,577 8,271 86,125
Total revenues 87,313 2,340,999 477,424 2,905,736
EXPENDITURES
Debt service:
Principal 89,000 1,455,000 130,000 1,674,000
Interest 14,220 740,425 32,943 787,588
Total expenditures 103,220 2,195,425 162,943 2,461,588
Change in fund balance (15,907) 145,574 314,481 444,148
Fund balance-Beginning of the year 97,768 1,117,556 124,342 1,339,666
Fund balance-End of the year $ 81,861 $ 1,263,130 $ 438,823 $ 1,783,814
118
CITY OF TIGARD,OREGON
BANCROFT BOND DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Collection of bonded assessments $ 60,000 $ 60,000 $ 50,036 $ (9,964)
Interest earnings 10,000 10,000 37,277 27,277
Total revenues 70,000 70,000 87,313 17,313
EXPENDITURES
Debt service:
Principal 89,000 89,000 89,000 -
Interest 18,000 18,000 14,220 3,780
Total expenditures 107,000 107,000 103,220 3,780
Change in fund balance before
other financing sources(uses) (37,000) (37,000) (15,907) 21,093
OTHER FINANCING SOURCES(USES)
Transfer out (1,725) (1,725) - 1,725
Reserve for future expenditures (61,275) (61,275) - 61,275
Total other financing sources(uses) (63,000) (63,000) - 63,000
Change in fund balance (100,000) (100,000) (15,907) 84,093
Fund balance-Beginning of the year 100,000 100,000 97,768 (2,232)
Fund balance-End of the year $ - $ - $ 81,861 $ 81,861
119
CITY OF TIGARD,OREGON
GENERAL OBLIGATION DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Taxes $ 2,212,005 $ 2,212,005 $ 2,300,422 $ 88,417
Interest earnings 4,612 _ 4,612 40,577 35,965
Total revenues 2,216,617 2,216,617 2,340,999 124,382
EXPENDITURES
Debt service:
Principal 1,475,000 1,475,000 1,455,000 20,000
Interest 760,000 760,000 740,425 19,575
Total expenditures 2,235,000 2,235,000 2,195,425 39,575
Change in fund balance before
other financing sources(uses) (18,383) (18,383) 145,574 163,957
OTHER FINANCING SOURCES(USES)
Reserve for future expenditures (975,329) (975,329) - 975,329
Total other financing sources(uses) (975,329) (975,329) - 975,329
Change in fund balance (993,712) (993,712) 145,574 1,139,286
Fund balance-Beginning of the year 993,712 993,712 1,117,556 123,844
Fund balance-End of the year $ - $ - $ 1,263,130 $ 1,263,130
120
CITY OF TIGARD,OREGON
URBAN RENEWAL AGENCY DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Property taxes $ 536,723 $ 536,723 $ 469,153 $ (67,570)
Interest earnings 1,500 1,500 8,271 6,771
Total revenues 538,223 538,223 477,424 (60,799)
EXPENDITURES
*Debt service:
Principal 130,000 130,000 130,000 -
Interest 32,500 32,500 32,943 (443)
Total expenditures 162,500 162,500 162,943 (443)
Change in fund balance before
other financing sources(uses) 375,723 375,723 314,481 (61,242)
OTHER FINANCING SOURCES(USES)
Transfers out (337,000) (355,000) - 355,000
Reserve for future expenditure (143,213) (143,213) - 143,213
Total other financing sources(uses) (480,213) (498,213) - 498,213
Change in fund balance (104,490) (122,490) 314,481 436,971
Fund balance-Beginning of the year 104,490 122,490 124,342 1,852
Fund balance-End of the year $ - $ - $ 438,823 $ 438,823
* Budget appropriation is made at the debt service program level
121
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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.
Urban Renewal Agency Capital Improvement Fund –This fund was established in FY 2007-08 for the
creation of a new urban renewal agency to improve downtown Tigard. Expenses are for capital
improvements within the urban renewal plan. Resources are from financing proceeds or transfers in
from the Urban Renewal Debt Service Fund.
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 the Traffic 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.
Transportation Capital Improvement Project Fund–Accounts for capital improvement projects funded
with transportation revenues; including Gas Tax, Traffic Impact Fees and Transportation Development
Tax.
No content appears on this page by design.
CITY OF TIGARD,OREGON
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
June 30,2018
Underground Street Transportation
Facility Utility Maintenance SDC
Fund Fund _ Fee Fund Fund
ASSETS
Cash and investments $ 923,492 $ - $ 2,266,699 $ -
Accounts receivable 364 187 346,235 416
Restricted cash and investments - 362,400 - 6,781,501
Total assets $ 923,856 $ 362,587 $ 2,612,934 $ 6,781,917
LIABILITIES
Accounts payable and accrued liabilities $ 9,894 $ - $ 434,657 $ -
Advances from other funds-interfund loans - - - -
Total liabilities 9,894 - 434,657 -
DEFERRED INFLOWS OF RESOURCES
Special assessments/liens - - - -
FUND BALANCES(DEFICIT)
Restricted for:
Street maintenance and improvements - - - 6,781,917
Park development and improvements - - - -
Underground utilities - 362,587 - -
Committed for:
Street maintenance and improvements - - 2,178,277 -
Assigned to:
City facilities 913,962 - - -
Unassigned - - - -
Total fund balances(deficit) 913,962 362,587 _ 2,178,277 _ 6,781,917
Total liabilities,deferred inflows of
resources and fund balance $ 923,856 $ 362,587 $ 2,612,934 $ 6,781,917
122
Parks Parks Urban Renewal
Capital Bond Agency Capital
Fund Fund Projects Fund Total
$ - $ - $ - $ 3,190,191
272,029 - 29,636 648,867
774,022 1,597,531 12,857 9,528,311
$ 1,046,051 $ 1,597,531 $ 42,493 $ 13,367,369
$ 303,189 $ - $ 9,538 $ 757,278
757,432 757,432
303,189 - 766,970 1,514,710
123,590 - - 123,590
6,781,917
619,272 1,597,531 - 2,216,803
362,587
- -
2,178,277
- -
913,962
(724,477) (724,477)
619,272 1,597,531 (724,477) 11,729,069
$ 1,046,051 $ 1,597,531 $ 42,493 $ 13,367,369
123
CITY OF TIGARD,OREGON
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
for the year ended June 30,2018
Underground Street Transportation
Facility Utility Maintenance SDC
Fund Fund Fee Fund Fund
REVENUES
Charges for services $ - $ 264,816 $ 2,788,984 $ 2,915,665
Intergovernmental revenues - - - -
Rental revenues - - - -
Interest earnings 367 31 585 2,817
Miscellaneous revenues - - 126 -
Total revenues 367 264,847 2,789,695 2,918,482
EXPENDITURES
Community development - - - -
Capital projects 103,180 - 2,330,995 -
Total expenditures 103,180 - 2,330,995 -
Change in fund balance before
other financing sources(uses) (102,813) 264,847 458,700 2,918,482
OTHER FINANCING SOURCES(USES)
Transfer in - - - -
Transfer out - (12,403) (322,557) (13,340)
Total other financing sources(uses) - (12,403) (322,557) (13,340)
Change in fund balance (102,813) 252,444 136,143 2,905,142
Fund balance-Beginning of the year 1,016,775 110,143 2,042,134 3,876,775
Fund balance-End of the year $ 913,962 $ 362,587 $ 2,178,277 $ 6,781,917
124
Parks Parks Urban Renewal
Capital Bond Agency Capital
Fund Fund Projects Fund Total
$ - $ - $ - $ 5,969,465
387,979 - 309,733 697,712
-
116,739 116,739
19,841 - 23,641
512 - 68 706
388,491 19,841 426,540 6,808,263
-
44,043 44,043
1,512,518 - 381,678 4,328,371
1,512,518 - 425,721 4,372,414
(1,124,027) 19,841 819 2,435,849
1,118,582 - - 1,118,582
-
_ (70,115) _ - (418,415)
1,118,582 (70,115) - 700,167
(5,445) (50,274) 819 3,136,016
624,717 1,647,805 (725,296) 8,593,053
$ 619,272 $ 1,597,531 $ (724,477) $ 11,729,069
125
CITY OF TIGARD,OREGON
FACILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final _ Amounts budget
REVENUES
Interest earnings $ 3,212 $ 3,212 $ 367 $ (2,845)
EXPENDITURES
Capital projects 100,000 304,000 103,180 200,820
Change in fund balance before
other financing sources(uses) (96,788) (300,788) (102,813) 197,975
OTHER FINANCING SOURCES(USES)
Transfer in 100,000 100,000 - (100,000)
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (813,212) (813,212) - 813,212
Total other financing sources(uses) (763,212) (763,212) - 763,212
Change in fund balance (860,000) (1,064,000) (102,813) 961,187
Fund balance-Beginning of the year 860,000 1,064,000 1,016,775 _ (47,225)
Fund balance-End of the year $ - $ - $ 913,962 $ 913,962
126
CITY OF TIGARD,OREGON
UNDERGROUND UTILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 124,817 $ 124,817 $ 264,816 $ 139,999
Interest earnings 7,160 7,160 31 (7,129)
Total revenues 131,977 131,977 264,847 132,870
OTHER FINANCING SOURCES(USES)
Transfer out (77,417) (77,417) (12,403) 65,014
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (104,560) (104,560) - 104,560
Total other financing uses (231,977) _ (231,977) (12,403) 219,574
Change in fund balance (100,000) (100,000) 252,444 352,444
Fund balance-Beginning of the year 100,000 100,000 110,143 10,143
Fund balance-End of the year $ - $ - $ 362,587 $ 362,587
127
CITY OF TIGARD,OREGON
STREET MAINTENANCE FEE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,851,058 $ 2,851,058 $ 2,788,984 $ (62,074)
Interest earnings 2,043 2,043 585 (1,458)
Miscellaneous revenues 1,299 1,299 126 (1,173)
Total revenues 2,854,400 2,854,400 2,789,695 (64,705)
EXPENDITURES
Capital projects 2,350,000 2,350,000 2,330,995 19,005
Change in fund balance before
other financing sources(uses) 504,400 504,400 458,700 (45,700)
OTHER FINANCING SOURCES(USES)
Transfer out (322,557) (322,557) (322,557) -
Contingency (200,000) (200,000) - 200,000
Reserve for future expenditures (1,646,079) (1,646,079) - _ 1,646,079
Total other financing sources(uses) (2,168,636) (2,168,636) (322,557) 1,846,079
Change in fund balance (1,664,236) (1,664,236) 136,143 1,800,379
Fund balance-Beginning of the year 1,664,236 1,664,236 2,042,134 377,898
Fund balance-End of the year $ - $ - $ 2,178,277 $ 2,178,277
128
CITY OF TIGARD,OREGON
TRANSPORTATION SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts _budget
REVENUES
Charges for services $ 1,222,200 $ 1,222,200 $ 2,915,665 $ 1,693,465
Interest earnings 500 500 2,817 2,317
Total revenues 1,222,700 1,222,700 2,918,482 1,695,782
OTHER FINANCING SOURCES(USES)
Transfer out (13,340) (13,340) (13,340) -
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (4,052,775) (4,052,775) - 4,052,775
Total other financing sources(uses) (4,116,115) (4,116,115) (13,340) 4,102,775
Change in fund balance (2,893,415) (2,893,415) 2,905,142 5,798,557
Fund balance-Beginning of the year 2,893,415 2,893,415 3,876,775 983,360
Fund balance-End of the year $ - $ - $ 6,781,917 $ 6,781,917
129
CITY OF TIGARD,OREGON
PARKS CAPITAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental revenues $ 1,513,627 $ 1,513,627 $ 387,979 $ (1,125,648)
Interest earnings 3,015 3,015 - (3,015)
Miscellaneous revenues - - 512 512
Total revenues 1,516,642 1,516,642 388,491 (1,128,151)
EXPENDITURES
Capital projects 5,358,627 5,375,627 1,512,518 3,863,109
Change in fund balance before
other financing sources(uses) (3,841,985) (3,858,985) (1,124,027) 2,734,958
OTHER FINANCING SOURCES(USES)
Transfer in 3,508,372 3,525,372 1,118,582 (2,406,790)
Reserve for future expenditures (100,453) (100,453) - 100,453
Total other financing sources(uses) 3,407,919 3,424,919 1,118,582 (2,306,337)
Change in fund balance (434,066) (434,066) (5,445) 428,621
Fund balance-Beginning of the year 434,066 434,066 624,717 190,651
Fund balance-End of the year $ - $ - $ 619,272 $ 619,272
130
CITY OF TIGARD,OREGON
PARKS BOND FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 2,000 $ 2,000 $ 19,841 $ 17,841
OTHER FINANCING SOURCES(USES)
Transfer out (1,560,000) (1,560,000) (70,115) 1,489,885
Reserve for future expenditures (81,000) (81,000) - 81,000
Total other financing uses (1,641,000) (1,641,000) (70,115) 1,570,885
Change in fund balance (1,639,000) (1,639,000) (50,274) 1,588,726
Fund balance-Beginning of the year 1,639,000 1,639,000 1,647,805 8,805
Fund balance-End of the year $ - $ - $ 1,597,531 $ 1,597,531
131
CITY OF TIGARD,OREGON
URBAN RENEWAL AGENCY CAPITAL PROJECT FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts _budget
REVENUES
Intergovernmental revenues $ 300,000 $ 340,000 $ 309,733 $ (30,267)
Rental revenues 78,000 78,000 116,739 38,739
Miscellaneous revenues - - 68 68
Total revenues 378,000 418,000 426,540 8,540
EXPENDITURES
* Capital projects 715,000 805,000 425,721 379,279
Change in fund balance before
other financing sources(uses) (337,000) (387,000) 819 387,819
OTHER FINANCING SOURCES(USES)
Transfer in 337,000 355,000 - (355,000)
Total other financing sources 337,000 355,000 - (355,000)
Change in fund balance - (32,000) 819 32,819
Fund balance-Beginning of the year - 32,000 32,136 136
Fund balance-End of the year $ - $ - 32,955 $ 32,955
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 $ (724,477)
* For budgetary puposes expenditures are appropriated as capital projects, however on the GAAP statements
non-capital transactions are recorded as program expenditures
132
CITY OF TIGARD,OREGON
TRANSPORTATION DEVELOPMENT TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 1,701,000 $ 1,701,000 $ 4,085,773 $ 2,384,773
Interest earnings 11,279 11,279 4,323 (6,956)
Total revenues 1,712,279 1,712,279 4,090,096 2,377,817
OTHER FINANCING SOURCES(USES)
Transfer out (961,262) (961,262) (46,995) 914,267
Contingency (250,000) (250,000) - 250,000
Reserve for future expenditures (7,306,491) (7,306,491) - 7,306,491
Total other financing sources(uses) (8,517,753) (8,517,753) (46,995) 8,470,758
Change in fund balance (6,805,474) (6,805,474) 4,043,101 10,848,575
Fund balance-Beginning of the year 6,805,474 6,805,474 7,528,398 _ 722,924
Fund balance-End of the year $ - $ - $ 11,571,499 $ 11,571,499
133
CITY OF TIGARD,OREGON
PARKS SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,969,431 $ 2,969,431 $ 2,858,873 $ (110,558)
Interest earnings 19,782 19,782 _ 4,308 (15,474)
Total revenues 2,989,213 2,989,213 2,863,181 (126,032)
OTHER FINANCING SOURCES(USES)
Transfer out (1,616,455) (1,633,455) (869,271) 764,184
Contingency (80,000) (63,000) - 63,000
Reserve for future expenditures (7,479,699) (7,479,699) - 7,479,699
Total other financing sources(uses) (9,176,154) (9,176,154) (869,271) 8,306,883
Change in fund balance (6,186,941) (6,186,941) 1,993,910 8,180,851
Fund balance-Beginning of the year 6,186,941 6,186,941 8,136,659 1,949,718
Fund balance-End of the year $ - $ - $ 10,130,569 $ 10,130,569
134
CITY OF TIGARD,OREGON
TRANSPORTATION CIP FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental revenues $ 2,110,500 $ 2,110,500 $ 283,525 $ (1,826,975)
Miscellaneous revenues 1,378,000 1,378,000 676,642 (701,358)
Charges for services - - 19,307 19,307
Total revenues 3,488,500 3,488,500 979,474 (2,509,026)
EXPENDITURES
Capital projects 6,009,500 6,132,000 2,414,067 3,717,933
Change in fund balance before
other financing sources(uses) (2,521,000) (2,643,500) (1,434,593) 1,208,907
OTHER FINANCING SOURCES(USES)
Transfer in 2,521,000 2,643,500 1,273,847 (1,369,653)
Reserve for future expenditures (293,630) (293,630) - 293,630
Total other financing sources 2,227,370 2,349,870 1,273,847 (1,076,023)
Change in fund balance (293,630) (293,630) (160,746) 132,884
Fund balance-Beginning of the year 293,630 293,630 757,625 463,995
Fund balance-End of the year $ - $ - $ 596,879 $ 596,879
135
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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 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,753,696 $ 2,753,696 $ 3,208,783 $ 455,087
Connection fees 42,200 42,200 94,200 52,000
Intergovernmental revenues 1,145,000 1,673,500 1,612,614 (60,886)
Interest earnings 10,333 10,333 3,399 (6,934)
Miscellaneous revenues 13,091 13,091 51,855 38,764
Total revenues 3,964,320 4,492,820 4,970,851 478,031
EXPENDITURES
Public works 2,471,239 2,471,239 2,190,212 281,027
Capital projects 2,074,000 2,712,500 2,092,016 620,484
Total expenditures 4,545,239 5,183,739 4,282,228 901,511
Change in fund balance before
other financing sources(uses) (580,919) (690,919) 688,623 1,379,542
OTHER FINANCING SOURCES(USES)
Transfer in 193,500 193,500 63,424 (130,076)
Transfer out (593,866) (616,666) (360,290) 256,376
Contingency (400,000) (267,200) - 267,200
Reserve for future expenditures (2,098,267) (2,098,267) - _ 2,098,267
Total other financing sources(uses) (2,898,633) (2,788,633) (296,866) 2,491,767
Change in fund balance (3,479,552) (3,479,552) 391,757 3,871,309
Fund balance-Beginning of the year 3,479,552 3,479,552 4,994,449 1,514,897
Fund balance-End of the year $ - $ - $ 5,386,206 $ 5,386,206
136
CITY OF TIGARD,OREGON
SANITARY SEWER FUND
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30,2018
Operating and
Non-Operating Expenditures/
Revenues Expenses
Budgetary basis $ 5,034,275 $ 4,282,228
Unavailable revenue (17,223) -
Contributed capital 302,976 -
Compensated absences - 4,585
Expenditures capitalized - (2,235,832)
Depreciation expense - 737,684
Net OPEB obligation - 475
Operating and non-operating revenue
and expenses-GAAP basis $ 5,320,028 $ 2,789,140
137
CITY OF TIGARD,OREGON
STORM WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,755,890 $ 2,755,890 $ 3,620,431 $ 864,541
Licenses and permits - - 4,973 4,973
Interest earnings 7,936 7,936 2,740 (5,196)
Miscellaneous revenues 3,100 3,100 7,464 4,364
Total revenues 2,766,926 2,766,926 3,635,608 868,682
EXPENDITURES
Public works 2,329,116 2,329,116 1,945,523 383,593
Capital projects 1,619,500 1,649,500 844,795 804,705
Total expenditures 3,948,616 3,978,616 2,790,318 1,188,298
Change in fund balance before
other financing sources(uses) (1,181,690) (1,211,690) 845,290 2,056,980
OTHER FINANCING USES
Transfer in 558,000 558,000 324,424 (233,576)
Transfer out (255,807) (267,807) (134,082) 133,725
Contingency (200,000) (158,000) - 158,000
Reserve for future expenditures (3,812,884) (3,812,884) - 3,812,884
Total other financing uses (3,710,691) (3,680,691) 190,342 3,871,033
Change in fund balance (4,892,381) (4,892,381) 1,035,632 5,928,013
Fund balance-Beginning of the year 4,892,381 4,892,381 6,103,081 1,210,700
Fund balance-End of the year $ - $ - $ 7,138,713 $ 7,138,713
138
CITY OF TIGARD,OREGON
WATER QUALITY/QUANTITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts _budget
REVENUES
Charges for services $ - $ - $ 292 $ 292
Interest earnings 15,102 15,102 482 (14,620)
Total revenues 15,102 15,102 774 (14,328)
OTHER FINANCING SOURCES(USES)
Transfer out (20,999) (20,999) - 20,999
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (1,173,404) (1,173,404) - 1,173,404
Total other financing sources(uses) (1,244,403) (1,244,403) - 1,244,403
Change in fund balance (1,229,301) (1,229,301) 774 1,230,075
Fund balance-Beginning of the year 1,229,301 1,229,301 1,253,835 24,534
Fund balance-End of the year $ - $ - $ 1,254,609 $ 1,254,609
139
CITY OF TIGARD,OREGON
STORMWATER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30,2018
Operating and
Non-operating Expenditures/
Revenues Expenses
Stormwater $ 3,960,032 $ 2,924,400
Water Quality/Quantity 774 -
Total,budgetary basis 3,960,806 2,924,400
Contributed capital 421,153 -
Compensated absences - 8,175
Expenditures capitalized - (876,945)
Depreciation expense - 547,859
Net OPEB obligation - 678
Operating and non-operating
revenue and expenses-GAAP basis $ 4,381,959 $ 2,604,167
140
CITY OF TIGARD,OREGON
WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original _ Final Amounts budget
REVENUES
Charges for services $ 20,571,893 $ 20,571,893 $ 23,078,013 $ 2,506,120
Interest earnings 30,644 30,644 9,793 (20,851)
Miscellaneous revenues 10,933 10,933 113,966 103,033
Total revenues 20,613,470 20,613,470 23,201,772 2,588,302
EXPENDITURES
Public works 6,898,886 6,898,886 6,630,253 268,633
Change in fund balance before
other financing sources(uses) 13,714,584 13,714,584 16,571,519 2,856,935
OTHER FINANCING SOURCES(USES)
Transfer in 58,751 58,751 58,751 -
Transfer out (17,457,159) (19,282,359) (10,912,042) 8,370,317
Contingency (500,000) (414,800) - 414,800
Reserve for future expenditures (11,521,009) (11,521,009) - 11,521,009
Total other financing sources(uses) (29,419,417) (31,159,417) (10,853,291) 20,306,126
Change in fund balance (15,704,833) (17,444,833) 5,718,228 23,163,061
Fund balance-Beginning of the year 15,704,833 17,444,833 20,245,740 2,800,907
Fund balance-End of the year $ - $ - $ 25,963,968 $ 25,963,968
141
CITY OF TIGARD,OREGON
WATER SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts _budget
REVENUES
System development charges $ 2,094,294 $ 2,094,294 $ 4,244,324 $ 2,150,030
Interest earnings 233 233 4,694 4,461
Total revenues 2,094,527 2,094,527 4,249,018 2,154,491
OTHER FINANCING SOURCES(USES)
Transfer out (2,733,898) (2,733,898) (943,737) 1,790,161
Contingency (100,000) (100,000) - 100,000
Reserve for future expenditures (6,921,252) (6,921,252) - 6,921,252
Total other financing sources(uses) (9,755,150) (9,755,150) (943,737) 8,811,413
Change in fund balance (7,660,623) (7,660,623) 3,305,281 10,965,904
Fund balance-Beginning of the year 7,660,623 7,660,623 8,551,308 890,685
Fund balance-End of the year $ - $ - $ 11,856,589 $ 11,856,589
142
CITY OF TIGARD,OREGON
WATER CIP FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 13,096 $ 13,096 $ - $ (13,096)
Miscellaneous revenues - - 3,991 3,991
Total revenues 13,096 13,096 3,991 (9,105)
EXPENDITURES
Capital projects 11,924,346 13,664,346 3,533,258 10,131,088
Change in fund balance before
other financing sources(uses) (11,911,250) (13,651,250) (3,529,267) 10,121,983
OTHER FINANCING SOURCES(USES)
Transfer in 11,589,346 13,329,346 3,292,327 (10,037,019)
Reserve for future expenditures (1,310,943) (1,310,943) - 1,310,943
Total other financing sources(uses) 10,278,403 12,018,403 3,292,327 (8,726,076)
Change in fund balance (1,632,847) (1,632,847) (236,940) 1,395,907
Fund balance-Beginning of the year 1,632,847 1,632,847 1,650,136 17,289
Fund balance-End of the year $ - $ - $ 1,413,196 $ 1,413,196
143
CITY OF TIGARD,OREGON
WATER DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 45,000 $ 45,000 $ 118,818 $ 73,818
Total revenues 45,000 45,000 118,818 73,818
EXPENDITURES
Debt service:
Principal 2,215,000 2,215,000 2,203,973 11,027
Interest 6,213,000 6,213,000 6,186,860 26,140
Total expenditures 8,428,000 8,428,000 8,390,833 37,167
Change in fund balance before
other financing sources(uses) (8,428,000) (8,428,000) (8,272,015) 110,985
OTHER FINANCING SOURCES(USES)
Transfer in 8,428,000 8,428,000 8,390,833 (37,167)
Reserve for future expenditures (6,807,298) (6,807,298) - 6,807,298
Total other financing sources(uses) 1,620,702 1,620,702 8,390,833 6,770,131
Change in fund balance (6,807,298) (6,807,298) 118,818 6,926,116
Fund balance-Beginning of the year 6,762,298 6,762,298 6,836,562 74,264
Fund balance-End of the year $ (45,000) $ (45,000) $ 6,955,380 $ 7,000,380
144
CITY OF TIGARD,OREGON
WATER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30,2018
Operating and
Non-operating Expenditures/
Revenues Expenses
Water $ 23,260,523 $ 17,542,295
Water SDC 4,249,018 943,737
Water CIP 3,296,318 3,533,258
Water Debt Service 8,509,651 8,390,833
Total,budgetary basis 39,315,510 30,410,123
Contributed capital 132,408 -
Elimination of water interfund transfers (11,683,160) (11,683,160)
Compensated absences - (7,980)
Expenditures capitalized - (3,073,626)
Principal payments - (2,203,973)
Accrued interest - (31,747)
Amortization of bond premium - (544,355)
Depreciation expense - 1,430,381
Net OPEB obligation - 859
Operating and non-operating
revenue and expenses-GAAP basis $ 27,764,758 $ 14,296,522
145
CITY OF TIGARD,OREGON
ENTERPRISE FUNDS
RECONCILIATION OF BUDGETARY FUND BALANCE TO
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET POSITION
June 30,2018
Total Total Total
Sanitary Sewer Stormwater Water
Sanitary Sewer Fund $ 5,386,206 $ - $ -
Stormwater Fund - 7,138,713 -
Water Quality/Quantity Fund - 1,254,609 -
Water Fund - - 25,963,968
Water SDC Fund - - 11,856,589
Water CIP Fund - - 1,413,196
Water Debt Service Fund - - 6,955,380
Fund balance-budget basis 5,386,206 8,393,322 46,189,133
Adjustments from budgetary basis to
generally accepted accounting principles basis:
Capital assets, net 19,760,627 12,902,536 213,701,476
Sewer funds payable (21,781) - -
Assets held for resale 185,021 260,021 -
Unavailable revenue 28,081 - -
Compensated absences (25,598) (32,193) (47,159)
Long-term debt - - (135,578,961)
Accrued interest payable - - (2,581,066)
Interfund loans 102,320 - -
Deferred Outflow OPEB 1,018 1,455 1,842
Deferred Inflow OPEB (1,766) (2,524) (3,196)
OPEB liability (29,968) (43,351) (66,631)
Total Net Position-GAAP basis $ 25,384,160 $ 21,479,266 $ 121,615,438
146
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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 30,2018
Central Fleet/Property
Services Management Insurance
Fund Fund Fund Total
ASSETS
Cash and investments $ 2,262,158 $ 478,379 $ 1,285,142 $ 4,025,679
Accounts receivable 68,654 2,325 445 71,424
Prepaids 150,819 3,840 - 154,659
Inventory - 27,601 - _ 27,601
Total assets 2,481,631 512,145 1,285,587 4,279,363
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to OPEB 7,757 1,551 - 9,308
LIABILITIES
Accounts payable and accrued liabilities 378,067 138,808 975 517,850
Unearned revenue 16,500 - - 16,500
Accrued compensated absences 301,722 26,633 - 328,355
Net OPEB obligation 217,655 36,123 - 253,778
Total liabilities 913,944 201,564 975 1,116,483
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB 13,459 2,692 - 16,151
NET POSITION
Net position,unrestricted $ 1,561,985 $ 309,440 $ 1,284,612 $ 3,156,037
147
CITY OF TIGARD,OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES
AND CHANGES IN FUND NET POSITION
for the year ended June 30,2018
Central Fleet/Property
Services Management Insurance
Fund Fund Fund Total
OPERATING REVENUES
Charges for services $ 8,306,330 $ 1,942,585 $ - $ 10,248,915
Miscellaneous revenues 32,310 5,666 204,804 242,780
Total operating revenues 8,338,640 1,948,251 204,804 10,491,695
OPERATING EXPENSES
Salaries and wages 5,117,904 772,204 - 5,890,108
Contracted services 874,802 290,735 - 1,165,537
General,administrative and other 2,265,754 896,614 3,932 3,166,300
Total operating expenses 8,258,460 1,959,553 3,932 10,221,945
Operating income(loss) 80,180 (11,302) 200,872 269,750
NONOPERATING REVENUE
Interest revenue 23,792 - 484 24,276
Intergovernmental revenues 71,196 - - 71,196
Total non-operating revenue 94,988 - 484 95,472
Income(loss)before contrigutions and transfers 175,168 (11,302) 201,356 365,222
CONTRIBUTIONS AND TRANSFERS
Transfer in 579,050 130,000 - 709,050
Transfer out - - (295) (295)
Change in net position 754,218 118,698 201,061 1,073,977
Net position-Beginning of year,as originally stated 741,295 202,396 1,083,551 2,027,242
Cumulative effect of restatement 66,472 (11,654) - 54,818
Net position-Beginning of year,as restated 807,767 190,742 1,083,551 2,082,060
Net position-End of year $ 1,561,985 $ 309,440 $ 1,284,612 $ 3,156,037
148
CITY OF TIGARD,OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
for the year ended June 30,2018
Fleet/Property
Central Services Management Insurance
Fund Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 8,275,879 $ 1,936,420 $ - $ 10,212,299
Payments to suppliers (3,122,972) (1,199,228) (2,957) (4,325,157)
Payments to employees (5,078,331) (773,512) - (5,851,843)
Other receipts 33,096 5,666 204,743 243,505
Net cash provided(used)by operating activities 107,672 (30,654) 201,786 278,804
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Intergovernmental revenues 71,196 - - 71,196
Transfer from other funds 579,050 130,000 - 709,050
Transfer to other funds - - (295) (295)
Net cash flows from noncapital financing activities 650,246 130,000 (295) 779,951
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 23,792 _ - 484 24,276
Net increase in cash and investments 781,710 99,346 201,975 1,083,031
Cash and investments--beginning of the year 1,480,448 379,033 1,083,167 2,942,648
Cash and investments--end of the year $ 2,262,158 $ 478,379 $ 1,285,142 $ 4,025,679
RECONCILIATION OF OPERATING INCOME(LOSS)TO
NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES
Operating income(loss) $ 80,180 $ (11,302) $ 200,872 $ 269,750
Adjustments to reconcile operating income(loss)to
net cash provided(used)by operating activities
CHANGE IN ASSETS AND LIABILITIES
Receivables (30,451) (2,325) (61) (32,837)
Prepaids (83,993) (3,840) - (87,833)
Inventory - 9,542 - 9,542
Accounts Payable 101,577 (21,421) 975 81,131
Unearned revenue 786 - - 786
Accrued compensated absences 35,957 (2,032) - 33,925
Net OPEB Obligation 3,616 724 - 4,340
Net cash provided(used)by operating activities $ 107,672 $ (30,654) $ 201,786 $ 278,804
149
CITY OF TIGARD,OREGON
CENTRAL SERVICES FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 8,068,129 $ 8,308,280 $ 8,306,330 $ (1,950)
Intergovernmental revenues 45,000 80,000 71,196 (8,804)
Interest earnings 22,593 22,593 23,792 1,199
Miscellaneous revenues 13,400 13,400 32,310 18,910
Total revenues 8,149,122 8,424,273 8,433,628 9,355
EXPENDITURES
Policy and administration 8,760,290 9,163,541 8,254,844 908,697
Change in fund balance before
other financing sources(uses) (611,168) (739,268) 178,784 918,052
OTHER FINANCING SOURCES(USES)
Transfer in 580,775 700,775 579,050 (121,725)
Contingency (250,000) (241,900) - 241,900
Reserve for future expenditures (750,602) (750,602) - 750,602
Total other financing sources(uses) (419,827) (291,727) 579,050 870,777
Change in fund balance (1,030,995) (1,030,995) 757,834 1,788,829
Fund balance-Beginning of the year 1,030,995 1,030,995 1,027,508 (3,487)
Fund balance-End of the year $ - $ - 1,785,342 $ 1,785,342
Reconciliation of budgetary fund balance to GAAP basis net position:
Net OPEB liability (217,655)
Deferred Outflow OPEB 7,757
Deferred Inflow OPEB (13,459)
Total net position,GAAP basis $ 1,561,985
150
CITY OF TIGARD,OREGON
FLEET/PROPERTY MANAGEMENT FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 1,942,585 $ 1,942,585 $ 1,942,585 $ -
Interest earnings 2,000 2,000 - (2,000)
Miscellaneous revenues 29,686 29,686 5,666 (24,020)
Total revenues 1,974,271 1,974,271 1,948,251 (26,020)
EXPENDITURES
Policy and administration 2,180,910 2,210,910 1,958,829 252,081
Change in fund balance before
other financing sources(uses) (206,639) (236,639) (10,578) 226,061
OTHER FINANCING SOURCES(USES)
Transfer in 150,999 150,999 130,000 (20,999)
Contingency (75,000) (45,000) - 45,000
Reserve for future expenditures (84,546) (84,546) - 84,546
Total other financing sources(uses) (8,547) 21,453 130,000 108,547
Change in fund balance (215,186) (215,186) 119,422 334,608
Fund balance-Beginning of the year _ 215,186 215,186 _ 227,282 12,096
Fund balance-End of the year $ - $ - 346,704 $ 346,704
Reconciliation of budgetary fund balance to GAAP basis net position:
Net OPEB liability (36,123)
Deferred Outflow OPEB 1,551
Deferred Inflow OPEB (2,692)
Total net position,GAAP basis $ 309,440
151
CITY OF TIGARD,OREGON
INSURANCE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2018
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 3,620 $ 3,620 $ 484 $ (3,136)
Miscellaneous revenues 39,000 39,000 204,804 165,804
Total revenues 42,620 42,620 205,288 162,668
EXPENDITURES
Policy and administration 49,684 49,684 3,932 45,752
Change in fund balance
before other financing sources(uses) (7,064) (7,064) 201,356 208,420
OTHER FINANCING SOURCES(USES)
Transfer out (295) (295) (295) -
Contingency (25,000) (25,000) - 25,000
Reserve for future expenditures (845,621) (845,621) - 845,621
Total other financing sources(uses) (870,916) (870,916) (295) 870,621
Change in fund balance (877,980) (877,980) 201,061 1,079,041
Fund balance-Beginning of the year 877,980 877,980 1,083,551 205,571
Fund balance-End of the year $ - $ - $ 1,284,612 $ 1,284,612
152
Other Schedules
CITY OF TIGARD,OREGON
SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS
For the fiscal year ended June 30,2018
Interest Transactions
Original Outstanding Matured/ Outstanding
Issue June 30,2017 Additions Called Paid Matured Paid
June 30,2018
Bancroft Bonds
Issued June 27,2002 $ 1,307,969 $ 213,219 $ - $ 89,000 $ (89,000) $ 124,219 $ 14,220 $ (14,220)
General Obligation Bonds
Issued February 3,2011 $ 8,655,000 $ 4,820,000 $ - $ 730,000 $ (730,000) $ 4,090,000 $ 174,550 $ (174,550)
Issued June 21,2010 7,250,000 2,405,000 - 780,000 (780,000) 1,625,000 104,618 (104,618)
Issued February 3,2011 17,000,000 13,280,000 - 725,000 (725,000) 12,555,000 565,875 (565,875)
$ 20,505,000 $ - $2,235,000 $ (2,235,000) $ 18,270,000 $ 845,043 $ (845,043)
Bank Loan
Issued September 1,2014 $ 1,300,000 $ 1,040,000 $ - $ 130,000 $ (130,000) $ 910,000 $ 29,012 $ (29,012)
Revenue Bonds
Issued May 1,2012 $97,720,000 $ 95,850,000 $ - $ 1,935,000 $ (1,935,000) $ 93,915,000 $4,625,050 $ (4,625,050)
Issued May 1,2015 30,810,000 30,650,000 - 165,000 (165,000) 30,485,000 1,504,600 (1,504,600)
$ 126,500,000 $ - $2,100,000 $ (2,100,000) $ 124,400,000 $6,129,650 $ (6,129,650)
Long-term Note
Issued December 1,2011 $ 2,398,000 $ 1,907,007 $ - $ 103,973 $ (103,973) $ 1,803,034 $ 60,239 $ (60,239)
153
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF LOCAL IMPROVEMENT DISTRICT BONDS
For the fiscal year ended June 30,2018
Total Debt Service Requirement Issued June 27,2002
Fiscal Year Total Total 7.25%
of Maturity Principal Interest Principal Interest
2019 $ 95,800 $ 7,279 $ 95,800 $ 7,279
2020 28,419 1,021 28,419 1,021
$ 124,219 $ 8,300 $ 124,219 $ 8,300
154
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF GENERAL OBLIGATION BONDS
For the fiscal year ended June 30,2018
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
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
$ 18,270,000 $ 4,789,927 $ 4,090,000 $ 422,000 $ 1,625,000 $ 106,576 $ 12,555,000 $4,261,351
155
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF BANK LOAN PAYABLE
For the fiscal year ended June 30,2018
Total Debt Service Requirement Issued:September 1, 2014
Fiscal Year Total Total 3.00%
of Maturity Principal Interest Principal Interest
2019 $ 130,000 $ 25,118 $ 130,000 $ 25,118
2020 780,000 11,681 780,000 11,681
$ 910,000 $ 36,799 $ 910,000 $ 36,799
156
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF WATER REVENUE BONDS
For the fiscal year ended June 30,2018
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
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
$ 124,400,000 $ 106,035,125 $ 93,915,000 $ 70,144,625 $ 30,485,000 $ 35,890,500
157
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF SAFE DRINKING WATER REVOLVING LOAN FUNDS
For the fiscal year ended June 30,2018
Total Debt Service Requirement Issued: December 1,2011
Fiscal Year Total Total 3.00%to 5.00%
of Maturity Principal Interest Principal Interest
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
$ 1,803,034 $ 426,753 $ 1,803,034 $ 426,753
158
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. 159-175
Revenue Capacity—These schedules contain information to help the
reader assess the city's most significant local revenue source, property taxes. 176-181
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. 182-190
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. 191-193
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. 194-198
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
2009 2010 2011
GOVERNMENTAL ACTIVITIES
Net investment in capital assets $ 179,584,222 $ 165,775,262 $ 181,343,650
Restricted 1,540,638 6,872,512 5,880,755
Unrestricted 18,091,356 24,927,888 11,880,945
Total governmental activities net position 199,216,216 197,575,662 199,105,350
BUSINESS-TYPE ACTIVITIES
Net investment in capital assets 68,738,562 70,942,446 78,920,831
Restricted 3,783,324 - 6,005,540
Unrestricted 16,184,644 17,371,241 8,675,865
Total business-type activities net position 88,706,530 88,313,687 93,602,236
PRIMARY GOVERNMENT
Net investment in capital assets 248,322,784 236,717,708 260,264,481
Restricted 5,323,962 6,872,512 11,886,295
Unrestricted 34,275,999 42,299,129 20,556,810
Total primary government net position $ 287,922,745 $ 285,889,349 $ 292,707,586
Source: Comprehensive Annual Financial Report of the City.
159
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2012 2013 2014(Restated) 2015 2016 2017(Restated) 2018
$ 179,626,050 $ 181,196,030 $ 185,242,899 $ 189,748,234 $ 195,142,143 $ 199,214,099 $ 207,113,453
13,180,057 12,041,725 10,941,117 12,376,136 20,392,998 26,313,186 38,019,099
8,431,166 14,311,478 13,596,004 13,031,415 11,024,212 21,105,136 26,937,963
201,237,273 207,549,233 209,780,020 215,155,785 226,559,353 246,632,421 272,070,515
65,218,645 74,044,470 79,627,259 84,867,665 95,247,967 104,870,812 110,785,680
13,184,382 9,683,852 10,551,442 11,250,300 12,279,628 15,387,870 18,811,969
19,429,375 18,523,616 16,721,508 21,256,129 21,847,155 30,803,556 38,881,215
97,832,402 102,251,938 106,900,209 117,374,094 129,374,750 151,062,238 168,478,864
244,844,695 255,240,500 264,870,158 274,615,899 290,390,110 304,084,911 317,899,133
26,364,439 21,725,577 21,492,559 23,626,436 32,672,626 41,701,056 56,831,068
27,860,541 32,835,094 30,317,512 34,287,544 32,871,367 51,908,692 65,819,178
$ 299,069,675 $ 309,801,171 $ 316,680,229 $ 332,529,879 $ 355,934,103 $ 397,694,659 $ 440,549,379
160
CITY OF TIGARD,OREGON
CHANGES IN NET POSITION
for the last ten fiscal years
(accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2009 2010 2011
EXPENSES
Governmental activities
Community services $ 18,365,997 $ 19,832,642 $ 19,987,961
Public works 2,468,981 8,563,893 10,911,875
Community development 7,238,839 4,846,494 4,159,289
Policy and administration 5,997,644 1,511,956 1,825,398
Interest on long-term debt 526,825 548,987 1,214,420
Total governmental activities expenses 34,598,286 35,303,972 38,098,943
Business-type activities
Sewer 1,597,413 1,379,105 1,386,597
Stormwater 1,920,640 2,061,622 1,667,699
Water 7,624,478 7,880,598 6,996,463
Total business-type activities program expenses 11,142,531 11,321,325 10,050,759
Total primary government expenses $ 45,740,817 $ 46,625,297 $ 48,149,702
PROGRAM REVENUES
Governmental activities
Charges for services:
Community services $ 180,425 $ 232,384 $ 1,008,691
Public works 952,652 1,751,341 2,096,677
Community development 1,249,995 1,490,701 1,747,617
Policy and administration 1,463,736 108,940
Operating grants and contributions 153,447 199,506 6,516,004
Capital grants and contributions 199,112 305,398 230,500
Total governmental activities program revenues 4,199,367 4,088,270 11,599,489
Business-type activities
Charges for services:
Sewer 1,348,750 1,117,987 1,021,840
Stormwater 1,484,627 1,872,545 2,178,298
Water 7,417,827 7,834,978 9,065,554
Capital grants and contributions 834,660 1,022,045 4,583,764
Total business-type activities program revenues 11,085,864 11,847,555 16,849,456
Total primary government program revenues $ 15,285,231 $ 15,935,825 $ 28,448,945
Source: Comprehensive Annual Financial Report of the City.
161
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2012 2013 2014(Restated) 2015 2016 2017(Restated) 2018
$ 20,025,191 $ 19,085,777 $ 23,078,512 $ 18,542,379 $ 25,089,790 $ 23,268,637 $ 24,099,976
12,489,448 8,585,063 8,399,436 10,408,399 10,865,800 8,263,304 8,900,831
4,709,751 3,988,011 4,267,328 4,688,686 7,030,142 5,807,204 5,330,390
2,117,198 1,339,254 1,732,016 1,323,435 1,226,166 3,528,933 2,945,936
1,125,259 1,226,774 1,147,024 1,185,507 958,204 949,136 863,803
40,466,847 34,224,879 38,624,316 36,148,406 45,170,102 41,817,214 42,140,936
1,743,929 2,114,054 2,617,625 2,518,708 2,536,988 2,586,769 2,789,140
1,649,715 2,045,399 1,958,551 2,077,589 2,123,162 2,737,825 2,470,085
7,807,706 11,989,337 11,730,347 10,839,483 14,720,167 8,244,491 14,123,903
11,201,350 16,148,790 16,306,523 15,435,780 19,380,317 13,569,085 19,383,128
$ 51,668,197 $ 50,373,669 $ 54,930,839 $ 51,584,186 $ 64,550,419 $ 55,386,299 $ 61,524,064
$ 1,191,417 $ 2,252,945 $ 1,872,350 $ 1,731,639 $ 1,879,576 $ 2,482,811 $ 1,557,082
1,915,631 2,120,366 2,519,515 2,239,431 2,860,543 5,165,280 4,708,329
1,684,287 2,579,329 1,765,005 3,040,501 4,684,733 4,341,128 6,518,737
84,065 105,755 65,233 142,277 119,195 363,583 340,446
6,952,717 6,924,053 6,318,382 6,508,556 7,756,718 6,880,727 8,321,435
1,049,774 2,173,900 1,804,398 2,021,422 11,785,524 15,691,507 16,307,318
12,877,891 16,156,348 14,344,883 15,683,826 29,086,289 34,925,036 37,753,347
1,025,732 1,203,187 1,727,206 1,773,388 1,791,302 3,013,314 3,208,783
2,402,189 2,629,694 2,733,346 2,899,180 3,058,382 3,275,083 3,620,431
11,895,044 14,907,664 15,985,607 18,804,645 20,918,497 20,926,322 23,078,013
2,871,726 1,675,987 1,111,346 2,066,696 5,806,590 7,670,388 6,795,717
18,194,691 20,416,532 21,557,505 25,543,909 31,574,771 34,885,107 36,702,944
$ 31,072,582 $ 36,572,880 $ 35,902,388 $ 41,227,735 $ 60,661,060 $ 69,810,143 $ 74,456,291
162
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
2009 2010 2011
NET(EXPENSE)REVENUE
Governmental activities $ (30,398,918) $ (31,215,702) $ (26,499,454)
Business-type activities (56,667) 526,230 6,798,697
Total primary government net expenses (30,455,585) (30,689,471) (19,700,757)
GENERAL REVENUES AND OTHER
CHANGES IN NET POSITION
Governmental activities:
Property taxes 12,526,541 16,070,846 13,604,285
Franchise fees 3,887,078 4,548,520 4,375,420
Unrestricted intergovernmental revenues 8,925,520 6,993,245 2,838,802
Interest earnings 947,247 308,853 296,964
Miscellaneous 626,075 376,884 5,284,426
Transfers between Governmental and Business-type - 1,276,800 1,629,245
Total governmental activities 26,912,461 29,575,148 28,029,142
Business-type activities:
Interest earnings 649,231 153,300 115,828
Miscellaneous 105,567 204,427 3,269
Unrestricted intergovernmental revenues - - -
Transfers between Governmental and Business-type - (1,276,800) (1,629,245)
Total business-type activities 754,798 (919,073) (1,510,148)
Total primary government 27,667,259 28,656,075 26,518,994
CHANGES IN NET POSITION
Governmental activities(restated) (3,486,457) (1,640,554) 1,529,688
Business-type activities(restated) 698,131 (392,843) 5,288,549
Total primary government $ (2,788,325) $ (2,033,396) $ 6,818,237
Source: Comprehensive Annual Financial Report of the City.
163
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2012 2013 2014(Restated) 2015 2016 2017(Restated) 2018
$ (27,588,956) $ (18,068,531) $ (24,279,433) $ (20,464,580) $ (16,083,813) $ (6,892,178) $ (4,387,589)
6,993,341 4,267,742 5,250,982 10,108,129 12,194,454 21,316,022 17,319,816
(20,595,615) (13,800,789) (19,028,451) (10,356,451) (3,889,359) 14,423,844 12,932,227
15,182,467 15,338,744 15,796,663 16,523,361 17,177,591 17,616,798 18,387,321
4,880,635 5,855,956 5,542,647 5,687,456 5,734,540 5,890,113 6,095,852
4,798,949 2,500,240 2,955,652 3,004,341 2,840,903 2,074,428 3,022,051
283,273 248,812 421,211 434,401 688,087 824,213 1,683,282
1,583,989 316,512 776,154 247,154 228,779 268,380 416,785
2,991,566 120,227 1,017,893 (56,368) 817,481 291,314 220,392
29,720,879 24,380,491 26,510,220 25,840,345 27,487,381 26,965,246 29,825,683
73,228 114,661 270,415 131,485 302,890 106,628 139,926
155,164 157,360 144,767 177,903 193,645 270,628 177,276
- - - - 127,148 285,524 -
(2,991,566) (120,227) (1,017,893) 56,368 (817,481) (291,314) (220,392)
(2,763,174) 151,794 (602,711) 365,756 (193,798) 371,466 96,810
26,957,705 24,532,285 25,907,509 26,206,101 27,293,583 27,336,712 29,922,493
2,131,923 6,311,960 2,230,787 5,375,765 11,403,568 20,073,068 25,438,094
4,230,167 4,419,536 4,648,271 10,473,885 12,000,656 21,687,488 17,416,626
$ 6,362,090 $ 10,731,496 $ 6,879,058 $ 15,849,650 $ 23,404,224 $ 41,760,556 $ 42,854,720
164
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
2009 2010 2011
GENERAL FUND
Reserved $ 419,488 $ 273,726 $ -
Unreserved 7,338,828 7,067,526 -
Nonspendable - - 305,164
Unassigned - - 7,247,383
Total General Fund $ 7,758,316 $ 7,341,252 $ 7,552,547
ALL OTHER GOVERNMENTAL FUNDS
Reserved $ - $ - $ -
Unreserved, reported in:
Special revenue funds 11,097,739 8,094,802 -
Debt service funds 167,169 1,927,247 -
Capital projects funds 1,373,469 4,945,265 -
Nonspendable - - -
Restricted - - 16,855,664
Committed - - 2,263,088
Assigned - - 417,479
Unassigned - _ - _ (382,937)
Total all other governmental funds $ 12,638,377 $ 14,967,314 $ 19,153,294
*This schedule was modified with the implementation of GASB 54,effective fiscal year 2011,which affected the
categories used to report fund balances.
Source: Comprehensive Annual Financial Report of the City.
165
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2012 2013 2014 2015 2016 2017 2018
$ - $ - $ - $ - $ - $ - $ -
471,975 472,941 508,374 542,543 664,254 706,412 705,495
7,378,411 9,687,736 11,474,700 12,115,436 12,970,670 14,884,712 19,356,804
$ 7,850,386 $ 10,160,677 $ 11,983,074 $ 12,657,979 $ 13,634,924 $ 15,591,124 $ 20,062,299
$ - $ - $ - $ - $ - $ - $ -
14,986 16,055 11,225 - 16,485 17,040
15,568,787 14,859,784 12,504,001 11,791,605 18,250,934 31,914,910 45,521,700
3,217,309 4,020,435 4,457,233 2,801,857 3,260,236 4,341,838 3,307,731
428,823 670,223 905,166 1,156,788 1,597,773 1,725,086 1,738,216
(498,110) (601,324) (752,925) (352,684) (617,329) (725,296) (724,477)
$ 18,716,809 $ 18,964,104 $ 17,129,530 $ 15,408,791 $ 22,491,614 $ 37,273,023 $ 49,860,210
166
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
2009 2010 2011
REVENUES
Taxes $ 12,405,880 $ 16,078,788 $ 16,753,457
City gas tax* - - -
Franchise fees 3,887,078 4,548,520 4,375,420
Special assessments 87,208 284,202 40,164
Licenses and permits 1,282,438 1,229,880 2,590,516
Intergovernmental revenues 7,560,542 6,358,393 9,834,646
Charges for service 2,536,590 3,083,087 3,127,307
Fines and forfeitures 804,128 915,524 907,216
Interest earnings 930,382 300,126 287,284
Miscellaneous 513,392 249,180 47,489
Total revenues 30,007,640 33,047,700 37,963,499
EXPENDITURES
Current operating:
Community services 18,214,907 19,418,498 19,182,018
Public works 3,463,390 5,129,767 6,059,692
Community development 7,184,355 4,674,008 3,975,257
Policy and administration 907,661 787,209 711,743
Debt service:
Principal 794,853 875,513 2,590,456
Interest 530,403 557,061 67,294
Refunded bonds - - 8,836,046
Refunding bond issuance cost - - 81,236
Capital outlay 3,940,781 7,373,043 19,247,942
Total expenditures 35,833,344 38,815,099 60,751,684
Excess(deficiency)of revenues
over(under)expenditures (5,825,705) (5,767,399) (22,788,185)
OTHER FINANCING SOURCES(USES)
Proceeds from bond/long-term note - 7,250,000 26,214,495
Operating transfers in 3,342,328 4,965,010 16,977,142
Operating transfers out (2,357,267) (3,688,210) (16,006,177)
Total other financing sources(uses) 985,061 8,526,800 27,185,460
Net change in fund balances $ (4,840,644) $ 2,759,401 $ 4,397,275
Debt services as a percentage of non-capital
expenditures 4.34% 4.77% 6.84%
* City gas tax was broken out of intergovernmental revenues beginning in fiscal year 2013.
Source: Comprehensive Annual Financial Report of the City.
167
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2012 2013 2014 2015 2016 2017 2018
$ 17,767,128 $ 18,208,253 $ 18,822,449 $ 19,575,665 $ 20,191,927 $ 20,704,055 $ 21,822,129
- 830,031 638,852 558,740 712,408 844,866 887,038
4,880,635 5,724,192 5,542,647 5,691,960 5,732,448 5,886,791 6,102,443
38,776 43,170 258,831 35,359 65,243 52,146 50,036
2,444,551 3,175,118 3,098,875 4,030,120 5,751,472 6,662,790 7,648,235
6,586,757 6,040,986 6,386,961 6,370,732 6,684,667 8,228,693 8,737,359
3,059,653 6,632,779 5,937,889 5,303,984 10,974,400 17,664,190 16,497,224
1,092,296 1,038,948 929,293 924,266 972,560 713,059 698,508
262,080 254,237 424,221 434,401 653,879 799,748 1,659,107
633,575 206,443 312,815 413,736 220,894 349,098 1,204,701
36,765,451 42,154,157 42,352,833 43,338,963 51,959,898 61,905,436 65,306,780
19,638,469 18,636,382 19,420,335 20,325,635 20,784,186 21,925,169 22,631,248
6,354,390 6,551,980 6,914,185 7,512,446 7,606,128 8,291,205 8,899,175
3,902,223 3,937,089 4,219,481 4,640,737 6,981,903 5,807,836 5,345,399
819,034 711,385 701,172 778,840 831,876 787,681 795,586
1,894,125 1,992,500 2,445,993 2,117,045 2,361,892 2,378,100 2,454,000
1,652,691 1,264,795 1,178,637 1,118,238 1,059,733 977,539 892,206
4,037,766 6,357,256 7,657,993 8,924,317 6,200,291 4,705,720 6,742,438
38,298,698 39,451,387 42,537,796 45,417,258 45,826,009 44,873,250 47,760,052
(1,533,247) 2,702,770 (184,963) (2,078,295) 6,133,889 17,032,186 17,546,728
- - - 1,300,000 1,650,000 - -
6,969,663 4,735,619 6,420,053 6,178,215 6,378,318 4,755,215 4,174,624
(5,575,062) (4,880,803) (6,247,267) (6,445,754) (6,102,439) (5,049,792) (4,662,990)
1,394,601 (145,184) 172,786 1,032,461 1,925,879 (294,577) (488,366)
$ (138,646) $ 2,557,586 $ (12,177) $ (1,045,834) $ 8,059,768 $ 16,737,609 $ 17,058,362
12.75% 10.92% 11.60% 8.98% 9.00% 8.56% 8.28%
168
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
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
2018 13,124,594 8,321,435 16,307,318 18,387,321 6,095,852
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
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 - -
2018 29,907,227 - 6,795,717 - -
Source: Comprehensive Annual Financial Report of the City-Statement of Activities.
169
General Revenues
Gain(Loss)on
Intergovernmental Interest Disposition of
Revenues Earnings Capital Assets Miscellaneous Total
$ 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
3,022,051 1,683,282 - 416,785 67,358,638
General Revenues
Gain(Loss)on
Intergovernmental Interest Disposition of
Revenues Earnings Capital Assets Miscellaneous Total
$ - $ 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
- 139,926 - 177,276 37,020,146
170
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
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(Restated) 23,268,637 8,263,304 5,807,204 3,528,933
2018 24,099,976 8,900,831 5,330,390 2,945,936
CITY OF TIGARD,OREGON
BUSINESS-TYPE EXPENSES BY FUNCTION
For the last ten fiscal years
Fiscal
Year Ended
June 30 Sewer Stormwater Water Total
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(Restated) 2,586,769 2,737,825 8,244,491 13,569,085
2018 2,789,140 2,470,085 14,123,903 19,383,128
Source: Comprehensive Annual Financial Report of the City.
171
Interest on
Long-Term
Debt Total
$ 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 41,817,214
863,803 42,140,936
172
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
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
2018 22,709,167 6,102,443 7,648,235 8,737,359
* Includes special assessments collections,interest earnings,and other revenues.
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
173
Charges
For Fines and Miscellaneous
Services Forfeitures Revenues* Total
$ 2,536,590 $ 804,128 $ 1,530,983 $ 30,007,639
3,083,087 915,524 833,508 33,047,701
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
16,497,224 698,508 2,913,844 65,306,780
174
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
2009 $ 18,214,907 $ 10,647,745 $ 1,704,656 $ 3,940,781 $ 1,325,256 $ 35,833,345
2010 19,418,498 9,803,775 787,209 7,373,043 1,432,574 38,815,098
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
2018 22,631,248 14,244,574 795,586 6,742,438 3,346,206 47,760,052
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
175
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
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%
2018 5,981,800,420 284,167,678 185,901,766 6,451,869,864 4.63 9,883,766,510 65.28%
* per$1,000 of assessed value/including phase in rates
Source: Washington County Assessment and Taxation
176
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
Tigard/
Direct Rates Tualatin
Fiscal Total School
Year Ended Perm Debt Urban City of Washington District
June 30 Rate Svc Renewal Phase In Tigard County No.23-J
2009 $ 2.51 $ 0.18 $ 0.01 $ - $ 2.70 $ 2.39 $ 7.52
2010 2.51 0.21 0.06 - 2.78 2.98 7.65
2011 2.51 0.21 0.07 - 2.79 2.98 7.37
2012 2.51 0.45 0.06 0.83 3.85 2.97 7.44
2013 2.51 0.44 0.06 1.27 4.28 2.96 7.38
2014 2.51 0.44 0.06 0.43 3.44 2.96 7.41
2015 2.51 0.42 0.07 1.24 4.24 2.83 7.43
2016 2.51 0.42 0.07 1.68 4.69 2.83 7.43
2017 2.51 0.39 0.08 1.68 4.66 2.95 7.41
2018 2.51 0.36 0.08 1.68 4.63 2.94 7.73
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.
177
Overlapping Rates
Washington
Beaverton Tualatin County Hillsboro Total Direct
School Valley Rural Fire Portland School Other &
District Fire&Rescue District Community District Taxing Overlapping
No.48-J District No.2 College No.1-J Agencies Rates
$ 6.56 $ 1.54 $ 1.12 $ 0.50 $ - $ 0.70 $ 23.03
6.88 1.89 1.69 0.63 - 0.75 25.25
6.78 1.88 1.69 0.64 - 0.81 24.94
6.86 1.92 1.69 0.60 7.47 1.88 34.68
6.77 1.91 1.69 0.66 7.50 0.72 33.87
8.05 1.91 1.69 0.73 7.41 0.78 34.38
8.04 1.88 - 0.72 - 0.77 25.91
7.96 2.10 - 0.58 - 0.70 26.28
7.92 2.09 - 0.68 - 0.71 26.42
8.05 2.07 - 0.60 - 0.80 26.83
178
CITY OF TIGARD,OREGON
PRINCIPAL PROPERTY TAXPAYERS
For current and nine years ago
2018 2009
Percentage Percentage
Taxable of Total City Taxable of Total City
Taxpayer Assessed Value Rank Assessed Value Assessed Value Rank Assessed Value
Pacific Realty Associates $ 227,196,634 1 3.52% $ 173,040,340 1 3.65%
PPR Washington Square LLC 151,425,390 2 2.35% 109,554,577 2 2.31%
Lincoln Center LLC 95,316,150 3 1.48% 78,952,670 3 1.66%
Comcast Corporation 63,637,700 4 0.99%
ICON Owner Pool 1 West LLC 44,545,910 5 0.69% 53,698,400 5 1.13%
ROIC Oregon LLC 34,231,830 6 0.53%
Portland General Electric 31,971,000 7 0.50% 29,641,000 7 0.63%
Macy's Department Stores 27,737,990 8 0.43% 21,258,900 9 0.45%
FO Portland Property LLC 26,415,310 9 0.41%
SPUS7 Arbor Heights LP 25,712,820 10 0.40%
Verizon Northwest Inc 58,571,887 4 1.24%
Park 2017&Nelson Business Park 36,010,260 6 0.76%
Northwest Natural Gas 27,123,200 8 0.57%
Holland Holdings 1 Arbor Heights 19,706,850 10 0.42%
Total $ 728,190,734 11.29% $ 607,558,084 12.82%
Source: Washington County Assessment&Taxation records.
179
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
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 17,261,106 16,496,169 95.57% 236,347 16,732,516 96.94% 775,731 4.49%
2017 18,145,192 17,322,014 95.46% 230,652 17,552,666 96.73% 857,408 4.73%
2018 18,484,904 17,649,531 95.48% 195,660 17,845,191 96.54% 851,931 4.61%
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.
180
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
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 83,100 100.00% - 213,219
2018 89,000 89,000 100.00% - 124,219
(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.
181
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
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%
2018 2,454,000 892,206 3,346,206 47,760,052 7.01%
Source: Comprehensive Annual Financial Report of the City.
182
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
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
2018 53,697 6,451,869,864 18,419,297 1,263,130 17,156,167 0.27% 319.50
Source: City budget documents,Comprehensive Annual Financial Reports of the city and Washington Department of
Assessment and Taxation.
183
CITY OF TIGARD,OREGON
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30,2018
Percent Amount
Applicable Applicable
Net Debt Inside City of Inside City of
Jurisdiction Outstanding Tigard* Tigard
Tigard/Tualatin School District#23-J $ 262,838,126 46.94% $ 123,381,210
Metro 205,735,000 3.23% 6,636,394
Beaverton School District#48 1,035,618,531 3.55% 36,790,348
Portland Community College 461,071,466 4.05% 18,653,568
Washington County 219,115,761 10.22% 22,400,642
Northwest Regional ESD 35,000 8.28% 2,898
Tualatin Valley Fire&Rescue District 30,635,000 11.32% 3,468,495
Sub-Total of Overlapping Debt 2,215,048,884 211,333,555
City of Tigard 19,453,316 100.00% 19,453,316
Total for Overlapping Debt $ 2,234,502,200 $ 230,786,871
*The City of Tigard does not calculate this percentage; it is provided by the State of Oregon.
Source: Oregon State Treasury Debt Management Division.
184
CITY OF TIGARD,OREGON
COMPUTATION OF LEGAL DEBT MARGIN
For the last ten fiscal years
2009 2010 2011
Debt limit $ 244,850,530 $ 232,145,773 $217,807,538
Total net debt applicable to limit 10,011,895 16,708,100 32,300,000
Legal debt margin $ 234,838,635 $ 215,437,673 $185,507,538
Total net debt applicable to the limit
as a percentage of debt limit 4.09% 7.20% 14.83%
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.
185
2012 2013 2014 2015 2016 2017 2018
$207,504,714 $201,826,506 $210,982,614 $ 230,989,826 $ 242,482,552 $269,677,150 $296,512,995
30,735,000 28,800,576 26,820,000 24,775,000 22,670,000 20,505,000 18,269,800
$176,769,714 $173,025,930 $184,162,614 $ 137,195,419 $ 219,812,552 $249,172,150 $278,243,195
14.81% 14.27% 12.71% 10.73% 9.35% 7.60% 6.16%
Legal Debt Margin Calculation at June 30,2018
True cash value(2017-2018) $ 9,883,766,510
Limit as a percent 3%
Debt Limit(as a percent of real market value) 296,512,995
Debt applicable to limit:
Gross bonded debt $ 19,453,316
Excludable debt-Bancroft improvement bonds,bond premium,
capital lease and commercial bank loan (1,183,516)
Debt subject to limitation 18,269,800
Legal debt margin-amount available for future indebtedness 278,243,195
Total net debt applicable to the limit as a percent of debt limit 6.16%
186
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
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
2018 53,697 18,419,297 124,019 910,000 -
*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.
187
Business-type Activities
Long-Term Percentage
Note Payable Notes Payable Revenue Total Primary of Personal Per
Debt Debt Bonds* Government Income** Capita
$ 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 34,099,239 2.31% 704
- 2,293,486 104,896,687 136,898,912 9.21% 2,811
- 2,201,107 104,896,686 134,660,794 8.75% 2,670
- 2,105,957 139,643,153 167,157,409 10.78% 3,291
- 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
- 1,803,034 133,775,926 155,032,276 9.46% 2,887
188
CITY OF TIGARD,OREGON
COMPUTATION OF WATER REVENUE BONDS
DEBT COVERAGE
For the last seven fiscal years(1)
2012 2013 2014
Gross revenues $ 11,895,043 $ 14,907,664 $ 16,079,753
System Development Charges(SDC) related:
SDC Fund interest earnings 3,590 4,746 -
Reimbursement fee receipts(2) 787,666 881,294 442,651
Improvement fee receipts(3) 376,412 660,425 389,460
Total SDC-related 1,167,668 1,546,465 832,111
Operating expense:
Salaries and wages 1,134,988 1,131,531 1,225,170
Contracted services 163,385 249,857 400,972
Water purchases 2,904,433 3,177,982 3,199,292
General, admin and other 1,168,191 2,316,605 2,548,678
Total operating expenses 5,370,997 6,875,975 7,374,112
Net revenues(including SDCs) 7,691,714 9,578,154 9,537,752
Net revenues(excluding SDCs) $ 6,524,046 $ 8,031,689 $ 8,705,641
Debt service-first lien bonds:
2012 bonds $ - $ 3,539,888 $ 4,719,850
2015 bonds - - -
Total debt service $ - $ 3,539,888 $ 4,719,850
Debt service coverage-first lien bonds
(excluding system development charges) N/A 2.27 1.84
(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.
189
2015 2016 2017 2018
$ 18,944,301 $ 20,918,497 $ 20,926,322 $ 23,078,014
9,294 35,173 6,660 4,694
308,896 1,242,297 3,010,263 1,924,587
503,853 1,569,645 3,521,776 2,319,737
822,043 2,847,115 6,538,699 4,249,018
1,462,677 1,117,286 1,148,575 874,348
336,178 353,396 445,840 407,450
2,644,491 4,212,357 1,339,637 1,869,824
2,781,892 3,111,194 3,572,450 3,931,142
7,225,238 8,794,233 6,506,502 7,082,764
12,541,106 14,971,379 20,958,519 20,244,268
$ 11,719,063 $ 12,124,264 $ 14,419,820 $ 15,995,250
$ 4,719,850 $ 4,719,850 $ 6,561,800 $ 6,561,050
1,378,238 1,670,300 1,667,900
$ 4,719,850 $ 6,098,088 $ 8,232,100 $ 8,228,950
2.48 1.99 1.75 1.94
190
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(2) Income(3) of dollars)(3) Area(4)
2009 47,460 $ 99,915 12,685 N/A N/A 9.7%
2010 47,595 103,249 12,913 N/A N/A 8.4%
2011 48,035 104,688 12,688 N/A N/A 9.5%
2012 48,415 106,559 12,691 30,522 1,477,723 8.2%
2013 48,695 108,467 12,688 32,527 1,583,902 7.5%
2014 50,444 108,381 12,718 33,709 1,700,417 6.4%
2015 50,787 112,431 12,676 34,878 1,771,349 5.4%
2016 51,253 115,263 12,718 35,837 1,836,754 4.9%
2017 51,902 117,982 12,808 34,312 1,780,861 3.7%
2018 53,697 120,153 12,890 34,755 1,866,239 3.6%
Sources of Information:
(1)United States Census Bureau
(2)Tigard/Tualatin School District#23-J -City student totals not available
(3)Washington State University-Northwest Income Indicators Project
(4)US Department of Labor, Bureau of Labor Statistics
191
CITY OF TIGARD,OREGON
PRINCIPAL EMPLOYERS
For current year and nine years ago
2018 2009
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Tigard-Tualatin School District#23-1 1,196 1 4.50% 779 2 2.76%
Comcast 624 2 2.35%
Nordstrom 497 3 1.87% 579 4 2.05%
Costco Wholesale Corporation 404 4 1.52% 300 7 1.06%
Macy's Department Stores 372 5 1.40% 704 3 2.49%
Oregon Public Employees Retirement 364 6 1.37% 396 5 1.40%
City of Tigard 298 7 1.12% 283 8 0.94%
The Cheesecake Factory 250 8 0.94% 250 9 0.89%
Gerber Legendary Blades 232 9 0.87%
Home Depot 207 10 0.78% 241 10 0.85%
HSBC Card Services 948 1 3.36%
Providence Health System 377 6 1.34%
Total 4,444 16.71% 4,857 17.14%
Source: City of Tigard Adopted Budget and Tigard Chamber of Commerce.
192
CITY OF TIGARD,OREGON
PROPERTY VALUE AND CONSTRUCTION
For the last ten fiscal years
Fiscal Commercial Construction(') Residential Construction Ill
Year Ended Number of Number of
June 30 Permits Value Permits Value
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
2018 12 43,256,706 339 147,036,484
(1)From City of Tigard Building Department. Multi-family permits are included in the number of permits issued for
residential construction.
193
CITY OF TIGARD,OREGON
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
For the last ten fiscal years
Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
GOVERNMENTAL ACTIVITIES
Community services
Police 93.00 90.10 90.10 91.10 84.50 84.50 82.50 83.50 87.50 88.50
Library 41.90 38.80 38.80 38.80 34.80 34.80 34.80 38.30 39.70 40.90
Public works
Administration 8.85 9.35 9.75 8.75 9.00 9.20 9.20 9.00 9.50 9.75
Parks maintenance 9.75 9.75 9.75 9.75 9.75 9.75 10.75 11.67 12.17 10.40
Recreation - - - - - - - - 0.33 2.35
Street maintenance 7.00 7.00 7.00 7.00 7.00 7.25 7.25 6.33 7.00 7.45
Healthy Streams - - - - 1.00 - - - - -
Engineering(a) 10.50 11.80 11.80 11.80 12.00 13.00 14.00 14.00 17.00 19.00
Community development
Administration 3.00 2.00 2.00 3.00 2.00 2.00 2.00 3.00 3.00 3.00
Building inspection 6.20 6.24 7.20 8.10 7.80 8.80 9.00 9.00 13.00 13.00
Development Services 10.20 7.56 7.80 5.90 4.80 3.80 3.80 3.80 - -
Community Planning 7.00 7.00 7.00 9.00 9.00 9.00 9.00 9.00 13.50 13.50
Development Engineering(b) 4.00 1.60 - - - - - - - -
Economic Development(`) 1.00 1.00 1.00 1.50 1.00 2.00 2.00 2.00 2.00 3.00
Policy and Administration
City management 5.30 4.50 4.50 4.20 4.00 4.00 5.00 5.50 4.90 5.90
Human resources 5.00 5.00 5.00 5.00 4.80 4.80 4.50 4.80 4.50 4.34
Information technology 7.00 7.00 7.00 7.00 6.30 5.80 7.00 7.00 8.00 9.00
Risk management 2.50 2.30 2.30 2.30 2.10 2.10 2.10 2.30 1.50 1.76
Finance administration 3.00 5.30 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.50
Financial operations 5.50 4.50 4.50 4.50 4.60 4.60 4.60 4.60 4.80 5.30
Utility Billing(d) 6.50 5.50 5.50 6.30 6.50 6.80 6.80 6.80 6.80 7.20
Design&Communication 4.50 3.05 3.05 3.25 3.05 3.05 3.05 3.05 4.25 4.75
Contracts&Purchasing lei - - 2.30 2.30 1.80 2.00 2.00 2.00 2.00 2.00
City Recorder/Records(f) 3.00 3.25 3.25 3.35 4.15 4.15 4.15 3.35 3.85 3.85
Municipal court 3.25 3.50 3.75 3.75 3.65 3.65 3.65 3.65 3.50 3.50
Fleet maintenance(g) 2.50 2.00 2.60 2.60 1.50 0.95 1.95 1.80 2.35 2.85
Property management(g) 4.25 4.25 4.25 4.25 3.75 3.85 4.85 5.20 4.90 6.55
BUSINESS-TYPE ACTIVITIES
Public works
Sanitary sewer 5.35 5.25 5.25 6.25 6.25 6.50 5.50 6.00 6.50 6.25
Stormwater 7.10 7.00 7.00 6.25 5.25 5.50 6.50 7.00 7.50 9.00
Water 16.30 13.00 12.00 12.75 12.50 12.00 13.00 13.00 13.00 11.25
Total 283.45 267.60 267.45 271.75 255.85 256.85 261.95 268.65 286.05 297.85
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.
(`) Downtown Redevelopment was budgeted with Long range planning until FY 2008-09.
(d) Utility Billing was budgeted with Financial operations until FY 2007-08.
(e) Contracts&Purchasing was budgeted with Finance administration until FY 2010-2011.
(f) City Recorder/Records was budgeted with Office services until FY 2008-09.
(g) Fleet/Property Management budgeted with Public Works until FY 2015-16.
194
CITY OF TIGARD,OREGON
OPERATING INDICATORS BY FUNCTION/PROGRAM
For the last ten fiscal years
Functions/Programs 2009 2010 2011
GOVERNMENTAL ACTIVITIES
Community services
Police-number of traffic citations issued 6,925 9,101 7,021
Police-number of calls for service 50,115 51,158 49,358
Library-number of items in collection 17,500 22,400 43,400
Library-materials checked out each year 1,249,462 1,462,304 1,507,248
Public works
Acres of park land maintained 189 189 233
Crack sealing completed annually(linear feet) 160,000 160,000 160,000
Vehicles maintained to industry standard 158 160 149
Community development
Number of inspections(Tigard) 7,778 8,700 9,990
Number of permits(all types)in Tigard 2,278 3,025 3,220
Number of development applications 508 370 370
Policy and administration
Number of job applications 2,215 1,900 1,000
Laptops and computers to maintain 451 488 491
Insured value of city's real property(in millions) 78 82 82
Number of utility bills sent** 114,500 116,800 176,274
Average fine amount collected 90 90 126
BUSINESS-TYPE ACTIVITIES
Sewer
Miles of sewer lines cleaned (annual goal) 47 41 41
Miles of sewer lines video inspected (annual goal) 23 23 23
Stormwater
Miles of stormwater lines cleaned 30 31 31
Number of water quality facilities*** 78 72 90
Total number of catch basins cleaned*** 4,437 4,437 4,368
Water
Number of accounts 17,900 17,900 18,129
**City of Tigard started monthly utility billing in January 2011.
***GIS data improvement
Source: City of Tigard Finance Department
195
2012 2013 2014 2015 2016 2017 2018
8,308 8,939 7,177 6,462 5,745 5,057 5,260
52,226 52,420 48,840 47,247 43,299 41,874 42,075
244,154 250,454 245,000 248,225 253,725 229,344 238,919
1,522,422 1,459,334 1,385,376 1,280,376 1,243,774 1,159,446 1,227,561
243 248 253 255 301 301 305
160,000 160,000 160,000 160,000 160,000 107,727 262,659
149 148 157 160 146 162 152
10,000 12,500 12,382 9,009 10,814 27,551 25,793
3,047 3,049 3,404 2,958 3,860 4,281 4,189
381 357 341 251 388 818 843
1,100 2,500 2,000 2,100 2,200 3,726 2,605
491 503 523 525 530 585 593
82 82 82 82 82 120 122
236,389 238,400 241,500 244,000 256,500 248,560 254,150
126 140 140 160 160 149 133
41 42 42 42 42 51 57
23 24 21 21 24 23 29
31 32 21 21 21 23 20
90 125 126 126 126 164 164
4,368 2,768 2,840 2,840 2,917 3,939 2,620
18,265 18,350 19,207 19,737 20,500 21,509 21,764
196
CITY OF TIGARD,OREGON
CAPITAL ASSETS STATISTICS BY FUNCTION
For the last ten fiscal years
Functions/Programs 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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 14 14 14 18 20 20 20 20 21 24
Acres of park and greenspaces 396.0 396.0 435.4 447.0 493.0 499.0 514.0 514.0 548.0 552.0
Miles of streets 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 157.0 175.7
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 161.0 162.8 164.5 166.1 166.9 166.9 166.9 168.0 168.3 168.5
Stormwater
Total miles of stormwater lines* 131.0 131.0 131.0 131.0 126.0 130.0 130.0 130.0 131.2 131.8
Number of water quality facilities* 79 79 92 92 125 126 126 126 164 210
Water
Water mains in miles 225.1 235.0 245.0 248.0 248.0 248.0 248.0 248.0 251.3 251.3
Number of reservoirs 13 13 13 13 13 13 13 14 14 14
Source:City of Tigard Finance Department
*GIS data improvement
197
CITY OF TIGARD,OREGON
MISCELLANEOUS STATISTICAL DATA
June 30,2018
Date of Incorporation 1961
Mayor/Council with a City Manager as the administrative head of the
Form of government
government of the City
Area(Square Miles-incorporated area) 12.2
Miles of streets 176
Police protection:
-Number of stations 1
-Number of sworn police officers 68
Education:
- Attendance centers 17
-Number of teachers\FTE 727
-Number of students 12,890
Building Permits issued (2017-2018) 786
Recreation and culture:
-Number of parks 24 developed and 6 underdeveloped,totaling 30 at 305 acres
-Greenways 247 acres
-Number of libraries 1
-Number of volumes(estimated) 238,919
Employees:
-Classified service(union) 180
-Unclassified(non-union) 115
Information obtained from the various departments of the City of Tigard and Tigard/Tualatin School District#23-.I
City student totals not available.
198
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Audit Comments and
Disclosure Requirements
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® 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, 2018 and have issued our report thereon dated December 13, 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 Yes
162-010-0270 Insurance and Fidelity Bonds None Noted
162-010-0280 Programs Funded from Outside Sources None Noted
162-010-0295 Highway Funds None Noted
162-010-0300 Investments None Noted
162-010-0310 Public Contracts and Purchasing None Noted
162-010-0320 Other Comments and Disclosures None Noted
199
However, providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our test disclosed no instances of
noncompliance that are required to be reported under Minimum Standards for Audits of Oregon Municipal
Corporations, prescribed by the Secretary of State, except those noted below:
• The City failed to post the notice of its Budget Committee meeting on its website for at least 10
days prior to the meeting, which is required per ORS 294.426
• The City had over-expenditures of$443 in the Urban Renewal Agency Debt Service Fund for the
year ended June 30, 2018.
• The City had a deficit fund balance of$724,477 in the Urban Renewal Capital Projects Fund as of
June 30, 2018.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting
(internal control)to determine the audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control that might
be deficiencies, significant deficiencies or material weaknesses. Given these limitations, during our audit
we did not identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
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.
C. 414efill
For Moss Adams LLP
Portland, Oregon
December 13, 2018
200
MOSSADAMS
Report of Independent Auditors on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
The City Council
City of Tigard, Oregon
Tigard, Oregon
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States,the 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 and for the year ended June 30, 2018, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements,
and have issued our report thereon dated December 13, 2018.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, 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 opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal
control. 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 a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. 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 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 material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify
any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
201
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
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 result of that testing, and not to 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 Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Portland, Oregon
December 13, 2018
202
MOSSADAMS
Report of Independent Auditors on Compliance for the Major Federal Program
and Report on Internal Control Over Compliance as Required by the Uniform
Guidance
The City Council
City of Tigard, Oregon
Tigard, Oregon
Report on Compliance for The Major Federal Program
We have audited the City of Tigard, Oregon's (the City) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material
effect on the City's major federal program for the year ended June 30, 2018. The City's major federal
program is identified in the summary of auditor's results section of the accompanying schedule of
findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for the City's major federal program based
on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform
Guidance require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct
and material effect on a major federal program occurred. An audit includes examining, on a test
basis, evidence about the City's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the major
federal program. However, our audit does not provide a legal determination of the City's compliance.
Opinion on the Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on the major federal programs for the
year ended June 30, 2018.
203
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing
our audit of compliance, we considered the City's internal control over compliance with the types of
requirements that could have a direct and material effect on the major federal program to determine
the auditing procedures that are appropriate in the circumstances for the purpose of expressing an
opinion on compliance for the major federal program and to test and report on internal control over
compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
A significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a federal
program that is less severe than a material weakness in internal control over compliance, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
//1044/ MI/Ka it(
Portland, Oregon
December 13, 2018
204
CITY OF TIGARD,OREGON
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the fiscal year ended June 30,2018
Federal Grantor/ Federal CFDA Agency or Pass-
Pass-Through Grantor Expenditures
Program Title or Cluster Title Number Through Number
U.S.Department of Commerce
Direct:
Investments for Public Works and Economic Development Facilities 11.300 $ 676,551
Total Economic Development Cluster 676,551
U.S.Department of Justice
Direct:
Equitable Sharing Program 16.922 96,793
Pass-through:
City of Portland,OR,Bureau of Police:
Economic,High-Tech,and Cyber Crime Prevention 16.752 2015-BE-BX-0005 5,880
Total U.S.Department of Justice 102,673
U.S.Environmental Protection Agency
Direct:
Brownfields Assessment and Cleanup Cooperative Agreements 66.818 289,733
Brownfields Assessment and Cleanup Cooperative Agreements 66.818 32,204
Total U.S.Environmental Protection Agency 321,937
U.S.Department of Homeland Security
Direct:
Homeland Security Grant Program 97.067 3,786
Total U.S.Department of Homeland Security 3,786
U.S.Department of Housing and Urban Development
Pass-through:
Washington County
Community Development Block Grants/Entitlement Grants 14.218 B-14-UC-41-0002 149,956
Total CDBG-Entitlement Grants Cluster 149,956
U.S.Department of Transportation
Pass-through:
Metro
Federal Transit Formula Grants 20.507 933346 36,472
Total Federal Transit Cluster 36,472
Pass-through:
Oregon Department of Transportation
National Priority Safety Programs 20.616 M1HVE-17-46-03 TPD 4,259
National Priority Safety Programs 20.616 OP-18-45-03-ZZZ 5,436
Total Highway Safety Cluster 9,695
Pass-through:
Oregon Impact
Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 MSHVE-17-12-20 12,024
Total U.S.Department of Transportation 58,191
Total Federal Financial Assistance $ 1,313,094
See the accompanying notes to the Schedule of Expenditures of Federal Awards.
205
CITY OF TIGARD, OREGON
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the fiscal year ended June 30, 2018
Note 1. Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal
grant activity of the City of Tigard (the "city") under programs of the federal government for the year
ended June 30, 2018.The information in this schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Because the Schedule presents only a selected portion of the operations of the city, it is not intended
to and does not present the financial position, changes in net position or cash flow of the city.
Note 2. Summary of Significan Accounting Policies
Expenditures reported on the Schedule are reported using the modified accrual basis of accounting.
Such expenditures are recognized following the cost principles in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through
entity identifying numbers are presented where applicable.
Note 3. Indirect Cost Rate
The City of Tigard has elected not to use the 10 percent de minimis indirect cost rate allowed under
the Uniform Guidance during the fiscal year ended June 30, 2018.
206
City of Tigard
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2018
Section I—Summary of Auditor's Results
Financial Statements
Type of report the auditor issued on whether the financial
statements audited were prepared in accordance with GAAP: Unmodified
Internal control over financial reporting:
• Material weakness(es) identified? ❑ Yes ® No
• Significant deficiency(ies) identified? ❑ Yes ® None reported
Noncompliance material to financial statements noted? ❑ Yes ® No
Federal Awards
Internal control over major federal programs:
• Material weakness(es) identified? ❑ Yes ® No
• Significant deficiency(ies) identified? ❑ Yes ® None reported
Any audit findings disclosed that are required to be reported
in accordance with 2 CFR 200.516(a)? ❑ Yes ® No
Identification of major federal programs and type of auditor's report issued on compliance for major
federal programs:
Type of Auditor's Report
Issued on Compliance for
CFDA Number(s) Name of Federal Program or Cluster Major Federal Programs
11.300 Economic Development Cluster Unmodified
Dollar threshold used to distinguish between type A and type
B programs: $ 750,000
Auditee qualified as low-risk auditee? ❑ Yes ® No
Section II— Financial Statement Findings
None reported
Section III— Federal Award Findings and Questioned Costs
None reported
207