2019 City of Tigard CAFR City of Tigard, Oregon
Comprehensive Annual
Financial Report
FISCAL YEAR ENDED JUNE 30, 2019
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City of Tigard
13125 SW Hall Boulevard I Tigard, OR 97223 I
1 www.tigard-or.gov
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T I GARD
City of Tigard, Oregon
Comprehensive Annual Financial Report
For the fiscal year ended, June 30, 2019
Prepared by:
City of Tigard — Finance and Information Services Department
3
City of Tigard, Oregon
Table of Contents
Introductory Section
Letter of Transmittal 11
Certificate of Achievement for Excellence in Financial Reporting 19
Organization Chart 20
Principal Officials 21
Financial Section
Report of Independent Auditors 25
Management's Discussion and Analysis 29
Basic Financial Statements:
Government-Wide Financial Statements
Statement of Net Position 47
Statement of Activities 48
Fund Financial Statements
Major Governmental Funds:
Balance Sheet 50
Reconciliation of the Balance Sheet to the Statement of
Net Position 51
Statement of Revenues, Expenditures, and Changes in Fund Balance 52
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance to the Statement of Activities 53
Proprietary Funds:
Statement of Net Position 54
Statement of Revenues, Expenses,and Changes in Fund Net Position 55
Statement of Cash Flows 56
Pension Trust Fund:
Statement of Fiduciary Net Position 59
Statement of Changes in Fiduciary Net Position 60
Notes to Basic Financial Statements 63
Required Supplementary Information:
Schedules of Revenues and Expenditures—Budget and Actual:
General Fund 119
Schedule of the City's Proportionate Share of the Net Pension Liability(Asset) 120
Schedule of City's Contributions—Oregon Public Employees Retirement System 121
Schedule of the Changes in the City's Total OPEB Liability and
Related Ratios—Implicit Rate Subsidy Plan 122
Schedule of the City's Proportionate Share of the Net OPEB Liability(Asset)—Oregon
Public Employees Retirement System, Retirement Health Insurance Account 123
Schedule of the City's Contributions—Oregon Public Employees Retirement System,
Retirement Health Insurance Account 124
Other Supplementary Information:
Nonmajor Governmental Funds Combining Statements:
Combining Balance Sheet 127
Combining Statement of Revenues, Expenditures,and Changes in Fund Balances 128
Special Revenue Funds:
Combining Balance Sheet—Nonmajor Special Revenue Funds 132
4
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 134
Schedules of Revenues and Expenditures—Budget and Actual:
Gas Tax Fund 136
City Gas Tax Fund 137
Transient Lodging Tax Fund 138
Electrical Inspection Fund 139
Building Fund 140
Criminal Forfeiture Fund 141
Urban Forestry Fund 142
Parks Utility Fund 143
Library Fund 144
Debt Service Funds:
Combining Balance Sheet—Nonmajor Debt Service Funds 148
Combining Statement of Revenues, Expenditures,and Changes in Fund Balance 150
Schedules of Revenues and Expenditures—Budget and Actual:
Bancroft Bond Debt Service Fund 152
General Obligation Debt Service Fund 153
City Center Urban Renewal Debt Service Fund 154
Tigard Triangle Debt Service Fund 155
Capital Projects Funds:
Combining Balance Sheet—Nonmajor Capital Projects Funds 160
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance—Nonmajor Capital Projects Funds 162
Schedule of Revenues and Expenditures—Budget and Actual:
Facility Fund 164
Underground Utility Fund 165
Street Maintenance Fee Fund 166
Transportation SDC Fund 167
Parks Capital Fund 168
Parks Bond Fund 169
City Center Capital Improvements Fund 170
Tigard Triangle Capital Improvements Fund 171
Major Capital Projects Funds Schedule of Revenues and Expenditures—Budget and Actual:
Transportation Development Tax Fund 172
Parks SDC Fund 173
Transportation CIP Fund 174
Proprietary Funds:
Enterprise Funds:
Schedules of Revenues and Expenditures—Budget and Actual:
Sanitary Sewer Fund 177
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Sanitary Sewer Fund 178
Stormwater Fund 179
Water Quality and Quantity Fund 180
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Stormwater Funds 181
Water Fund 182
Water SDC Fund 183
Water CIP Fund 184
5
City of Tigard, Oregon
Table of Contents, continued
Financial Section, Continued
Other Supplementary Information,Continued:
Water Debt Service Fund 185
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Water Funds 186
Reconciliation of Budgetary Fund Balance to Generally Accepted
Accounting Principles Basis Net Position 187
Internal Service Funds:
Combining Statement of Net Position 192
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 194
Combining Statement of Cash Flows 196
Internal Service Funds,Continued:
Schedules of Revenues and Expenditures—Budget and Actual:
Central Service Fund 198
Public Works Administration Fund 199
Public Works Engineering Fund 200
Fleet/Property Management Fund 201
Insurance Fund 202
Other Schedules:
Schedule of Bond and Bond Interest Transactions 205
Schedule of Future Debt Service Requirements of:
Local Improvement District Bonds 206
General Obligation Bonds 207
Bank Loan Payable 208
Water Revenue Bonds 209
Safe Drinking Water Revolving Loan Funds 210
Statistical Section
Net Position by Component 214
Changes in Net Position 216
Fund Balances of Governmental Funds 220
Changes in Fund Balances of Governmental Funds 222
Governmental and Business-Type Revenues 224
Governmental and Business-Type Expenses by Function 226
General Governmental Revenues by Sources 228
General Governmental Expenditures by Function 230
Market Value and Assessed Value of Taxable Property 231
Property Tax Rates—Direct and Overlapping Governments 232
Principal Property Taxpayers 234
Property Tax Levies and Collections 235
Special Assessment Collections 236
Ratio of Annual Debt Service Expenditures for Long-Term Debt to
Total Governmental Expenditures 237
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt per Capita 238
Computation of Direct and Overlapping Debt 239
Computation of Legal Debt Margin 240
Ratio of Debt by Type 242
Computation of Water Revenue Bonds Debt Coverage 244
Demographics Statistics 246
Principal Employers 247
Property Value and Construction 248
6
City of Tigard, Oregon
Table of Contents, continued
Statistical Section,Continued
Full-time Equivalent City Government Employees by Function 249
Operating Indicators by Function/Program 250
Capital Assets Statistics by Function 252
Miscellaneous Statistical Data 253
Audit Comments and Disclosure Requirements
Report of Independent Auditors Required by Oregon State Regulations 258
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 260
Report of Independent Auditors on Compliance for the Major Federal Program
and Report on Internal Control Over Compliance as Required by the Uniform Guidance 262
Schedule of Expenditures of Federal Awards 264
Schedule of Findings and Questioned Costs 266
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Introductory Section
9
10
Pp!
City of Tigard
December 5, 2019
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, 2019, 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, 2019, 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, 2019, 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, 2019, 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.
11
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
rt Jay The City of Tigard is located in southeast Washington County, 9 miles from
1.►�. downtown Portland, Oregon. The city is included in the Metro urban growth
Tligprd 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 2019, permitting and construction hwy2s
phase of development of River Terrace was in full swing. Portland
Full build out is expected to take roughly 20 years. Upon ii
completion, River Terrace is expected to be home to
around 6,500 new residents. More information about F!
Tigard's newest neighborhood is on the city's website at: Beaverton
http://www.tigard-or.gov/river terrace.php.
The city is governed by an elected mayor and four council
members who comprise the city council.The city's charter Tigard "
established the Mayor/Council form of government. Each g
member of the city council is elected at-large to serve a s� Osw o
es'
four-year term. The mayor presides at council meetings h
and is elected at-large for a four-year term.The mayor and
council provide community leadership, develop policies to Tualatin
guide the city in delivering services and achieving 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.
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The city provides a full range of municipal services. These services include police, municipal court,community
planning and development, parks, library, capital improvement planning, administration and central services,
street maintenance, water, and other general public works activities. The city owns and maintains the
wastewater and storm drainage system within the city limits under an agreement with Clean Water Services.
Fire protection is provided by Tualatin Valley Fire and Rescue.
The legally separate 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 ten-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 3.4 percent as of June 2019,which is 0.6 percent lower than the Portland Metro
area and the State of Oregon.
Unemployment trends
• 10.0%
cc• 8.0%
6.0%
4.0% -
a
• 2.0%
• 0.0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
-State of Oregon 10.5% 9.4% 8.596 8.1% 6.8% 5.5% 4.8% 3.7% 4.096 4.0%
-United States 9.6% 9.2% 8.2% 7.8% 6.1% 5.3% 4.9% 4.3% 4.0% 3.746
-Portland Metro 9.7% 9.5% 8.096 7.6% 6.1% 5.4% 4.9% 3.7% 3.6% 4.096
-Washington County 9.0% 8.1% 8.2% 6.6% 5.6% 5.096 4.7% 3.5% 3.5% 3.496
-City of Tigard 8.446 8.1% 8.2% 6.696 5.4% 4.5% 4.4% 3.5% 3.5% 3.4%
Fiscal year
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2019 Summary of Local Statistics
Number of businesses 2,713
Median household income $70,120
Median home value $345,200
General fund permanent tax rate $2.5131 per$1,000 of assessed value
Total assessed value (est. 2018/2019) 6,766,067,829
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 2019 budget document includes the city's
financial policies noted in the appendix starting on page 385. The policies can be found on line at:
http://publicrecords.tigard-or.gov/Public/DocView.aspx?id=896203&dbid=0&repo=CitvOffigard
The goals of Tigard's fiscal policies are:
• To enhance the city council's policy-making ability by providing accurate information on program and
operating costs.
• To assist sound management of the city government by providing accurate and timely information on
current and anticipated financial conditions.
• To provide sound principles to guide important decisions of the council and management which have
significant fiscal impact.
• To set forth operational principles,which minimize the cost and financial risk of the city's government
consistent with services, desired by the public.
• To employ revenue policies, which prevent undue or unbalanced reliance on any one source,
distribute the cost of municipal services fairly, and provide adequate funds to operate desired
programs.
• To provide and maintain essential public facilities, utilities, infrastructure and capital equipment.
• To protect and enhance the city's credit rating.
• To insure that all surplus cash is prudently invested in accordance with the investment policy adopted
by the council to protect city funds and realize a reasonable rate of return.
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Major initiatives
The Tigard City Council meets annually in connection with the budget process to establish goals. Council goals
comprise high-priority tasks or programs that the city council intends to complete or initiate during the 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
15
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
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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.
17
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, 2018. This was the 33rd 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 2019. This was the 31st 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 2020 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
18
id
G3
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, 2018
. eitu.retiai 1). 2ifezAA:te
Executive Director/CEO
19
III . �1
T I GARD
City of Tigard, Oregon
Citywide Organizational Chart as of June 30, 2019
City of Tigard 11
If Citizens of Tigard I
Mayor& City
City Council Attorney
ll City Manager 11
I I I I I I
Central City Community Finance& 1 Library i 1 Police Public Works
Services Management Development Information Svcs.
Design& Human Community Administration Administration Administration Administration
Communications Resources Planning
Green Team
Financial Circulation Support
City Recorder Risk Building Operations Services
Public Works
Management
Reader Engineering
Municipal Economic Information Services Police
Court City Manager's Development Services Operations
Parks
Office
Technical Maintenance
Fleet Utility Billing Services
Maintenance
Recreation
Contracts
Property &Purchasing Storm Water
Management
Sanitary Sewer
Street
Maintenance
Street Lights
&Signals
20
City of Tigard, Oregon
Principal Officials as of July 1, 2019
Elected Officials
Name Term Expires
Mayor Jason Snider December 31, 2022
Councilor John Goodhouse December 31, 2022
Councilor Tom Anderson December 31, 2020
Councilor Heidi Lueb December 31, 2020
Councilor Liz Newton December 31, 2022
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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22
Financial Section
23
24
® 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 and for the year ended June 30, 2019, 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 City'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 City'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.
25
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, 2019, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, budgetary comparison schedule for the General Fund, the
schedule of proportionate share of the net pension liability, the schedule of plan contributions, and the
schedule of other employee postemployment benefits information (collectively, the required
supplementary information) on pages 29 through 43 and 119 through 124 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 other employee postemployment benefits information on pages 29 through 43 and 120
through 124 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 the 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 schedule for the General
Fund described above on page 119 is the responsibility of management and was derived from and
relate directly to the underlying accounting and other records used to prepare the basic financial
statements. The budgetary schedule for the General Fund 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 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 schedule for the General
Fund is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The 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 127 to 202 and 264 are presented for purposes of additional analysis and are
not a required part of the basic financial statements.
26
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.
Report on Other Legal and Regulatory Requirements
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 5, 2019 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.
Other Reporting Required by Minimum Standards for Audits of Oregon Municipal
Corporations
In accordance with Minimum Standards of Audits of Oregon Municipal Corporations, we have issued
our report dated December 5, 2019 on our consideration of the City's compliance with certain
provisions of laws and regulations, including the provisions of Oregon Revised Statues 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.
P11/11/ L.
For Moss Adams LLP
Portland, Oregon
December 5, 2019
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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, 2019. 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, 2019 by$474,099,211 (net position). Of this amount, $26,807,603 is
restricted for transportation construction, maintenance and utility undergrounding, $1,163,893 is
restricted for park development and improvements, $519,802 is restricted for tourism, $12,903,512 is
restricted for water system construction and improvements, $9,641,926 is restricted for debt service,
$8,850,454 is restricted for building development plan review and inspection, $590,078 is restricted
for library capital improvements,$147,164 is restricted for urban development and improvements and
$327,964 is restricted for law enforcement equipment. $86,524,226 is unrestricted net position may
be used to meet the city's ongoing obligations to citizens and creditors and $326,622,589 is for net
investment in capital assets.
• The city's total net position had a net increase of$33,549,832 or 7.6 percent from the June 30, 2018
net position. Governmental activities net position increased by $21,126,166, or 7.8 percent. The
business-type activities net position increased by $12,423,666 or 7.4 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 $80,492,906, an increase
of 10,468,079 or 14.9 percent from fiscal year 2018. Of the combined ending governmental fund
balances, $25,510,000 or approximately 31.7 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 $23,121,341, up
$4,123,402 over the prior year.
• The city's total debt decreased by$5,377,930 or 3.5 percent from fiscal year 2018.
Overview of the Financial Statements
In addition to this discussion and analysis,the financial section of this annual report contains the basic financial
statements, required supplementary information, and the combining statements of the non-major funds and
schedules demonstrating legal compliance.
The basic financial statements also include notes that explain the information in the financial statements and
provide more details. The statements are followed by the required supplementary information section that
supports the information in the financial statements.
29
City of Tigard, Oregon
Management's Discussion and Analysis
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.
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.
30
City of Tigard, Oregon
Management's Discussion and Analysis
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 28 individual governmental funds. Information is presented separately in the governmental
fund Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances for those
funds that are considered significant (major) to the city taken as a whole. These financial statements report
four major funds: General, Transportation Development Tax, Parks SDC, and Transportation CIP Funds. Data
from the other 24 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 in the Basic Financial Statements section 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, public works
administration, engineering, and other management services.
The city reports all three of the enterprise funds as major funds. These funds are the Sanitary Sewer Fund,
the Stormwater Fund, (which consists of the budgetary Stormwater and the Water Quality/Quantity Funds),
and the Water Fund, (which includes the budgetary Water, Water SDC, Water CIP and Water Debt Service
Funds). However, for budgetary and legal purposes these funds are accounted for separately. Conversely, all
internal service funds are combined into a single, aggregated presentation in the proprietary fund financial
statements. Individual fund data for the internal service funds is provided as other supplementary
information.
The city also adopts an annual appropriated budget for all proprietary funds. To demonstrate compliance
with the budget, budgetary comparison statements have been provided for the enterprise funds as other
supplementary information in the Enterprise Funds section of this report. Budgetary comparisons for the
internal service funds are provided in the Internal Service Funds section of this report.
31
City of Tigard, Oregon
Management's Discussion and Analysis
The proprietary fund financial statements can be found in the Basic Financial Statements section of this report.
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 in the Fiduciary Funds section of this report.
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 in the Notes to Basic Financial Statements section of this report.
Required Supplementary Information includes Schedule of Revenues and Expenditures— Budget and Actual
for the General 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 immediately following the notes to the financial statements 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.
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 $474,099,211 at June 30, 2019.
The largest portion of the city's net position, approximately 68.9 percent, is its investment in capital assets
(e.g., land, construction in progress, buildings, roads, sewers, stormwater facilities, etc.), net of accumulated
depreciation and any related debt used to acquire those assets that is still outstanding. The city uses these
capital assets to provide services to citizens; consequently,these assets are not available for future spending.
Although the city's investment in capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since capital assets themselves
cannot be used to liquidate these liabilities.
The city's restricted net position in the amount of $60,952,396 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 $86,524,226 or approximately 18.3 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 $33,549,832 or 7.6 percent during the current fiscal year. Total assets for
governmental activities increased by approximately$19.2 million, or approximately 6.2 percent. Noteworthy
changes included an increase in cash and investments of approximately $12 million or 16.2 percent. This
32
City of Tigard, Oregon
Management's Discussion and Analysis
increase is due to development activity in the city resulting in higher fee collection in the Building,
Transportation SDC, and Parks SDC.
Governmental activities liabilities decreased by approximately $1.9 million or 4.8 percent. Noteworthy
changes include a bond payments of approximately $2.3 million. See the notes to the basic financial
statements for more information.
Business-type activities total assets increased by approximately$9.4 million or 3.0 percent over the prior year.
Cash and investments increased by approximately $12.8 million or 23.3 percent over the prior year. This
increase is mainly due to increased interest earnings, and higher utility rates.
Total long-term debt for business-type activities decreased by$2,827,427 or approximately 2.1 percent,which
primarily represents payment of principal and amortization of the bond premium on the water revenue bond
issues.The water revenue bonds were issued in fiscal years 2012 and 2015 for the Lake Oswego/Tigard Water
Partnership.
City of Tigard—Summary of Net Position
Governmental Business-Type
Total
Activities Activities
2019 2018 2019 2018 2019 2018
Current and other assets $ 95,799,843 $ 83,576,759 $ 75,303,377 $ 62,309,827 $171,103,220 $145,886,586
Capital assets 231,549,294 224,533,503 242,740,818 246,364,639 474,290,112 470,898,142
Total Assets 327,349,137 308,110,262 318,044,195 308,674,466 645,393,332 616,784,728
Deferred outflows 4,227,691 3,539,744 9,191 4,315 4,236,882 3,544,059
Current and other liabilities 11,164,421 10,901,193 7,169,015 7,297,504 18,333,436 18,198,697
Long-term liabilities outstanding 26,005,313 28,136,984 129,950,948 132,894,927 155,956,261 161,031,911
Total Liabilities 37,169,734 39,038,177 137,119,963 140,192,431 174,289,697 179,230,608
Deferred inflows 1,210,413 541,314 30,893 7,486 1,241,306 548,800
Net investment in capital assets 216,080,286 207,113,453 110,542,303 110,785,680 326,622,589 317,899,133
Restricted 40,908,235 38,019,099 20,044,161 18,811,969 60,952,396 56,831,068
Unrestricted 36,208,160 26,937,963 50,316,066 38,881,215 86,524,226 65,819,178
Total Net Position $293,196,681 $272,070,515 $180,902,530 $168,478,864 $474,099,211 $440,549,379
33
City of Tigard, Oregon
Management's Discussion and Analysis
City of Tigard —Summary of Changes in Net Position
Governmental Business-Type
Total
Activities Activities
2019 2018 2019 2018 2019 2018
Revenues
Program revenues:
Charges for services $ 13,203,823 $ 13,124,594 $ 30,952,487 $ 29,907,227 $ 44,156,310 $ 43,031,821
Operating grants and contributions 9,594,291 8,321,435 - - 9,594,291 8,321,435
Capital grants and contributions 12,268,270 16,307,318 3,285,377 6,795,717 15,553,647 23,103,035
General revenues:
Property taxes 19,101,543 18,387,321 - - 19,101,543 18,387,321
Franchise fees 6,211,736 6,095,852 - - 6,211,736 6,095,852
Unrestricted intergovernmental revenues 2,522,428 3,022,051 - - 2,522,428 3,022,051
Interest 2,416,827 1,683,282 1,606,834 139,926 4,023,661 1,823,208
Miscellaneous 453,435 416,785 652,421 177,276 1,105,856 594,061
Total revenues 65,772,353 67,358,638 36,497,119 37,020,146 102,269,472 104,378,784
Expenses
Community services 23,370,174 24,099,976 - - 23,370,174 24,099,976
Public works 12,129,476 8,900,831 - - 12,129,476 8,900,831
Community development 5,146,891 5,330,390 - - 5,146,891 5,330,390
Policy and administration 3,688,137 2,945,936 - - 3,688,137 2,945,936
Interest on long-term debt 771,834 863,803 - - 771,834 863,803
Sewer - - 3,128,483 2,789,140 3,128,483 2,789,140
Stormwater - - 3,261,312 2,470,085 3,261,312 2,470,085
Water - - 17,223,333 14,123,903 17,223,333 14,123,903
Total expenses 45,106,512 42,140,936 23,613,128 19,383,128 68,719,640 61,524,064
Revenues over expenses 20,665,841 25,217,702 12,883,991 17,637,018 33,549,832 42,854,720
Transfers in(out) 460,325 220,392 (460,325) (220,392) - -
Changes in net position 21,126,166 25,438,094 12,423,666 17,416,626 33,549,832 42,854,720
Beginning net position,as originally stated 272,070,515 246,280,611 168,478,864 151,035,149 440,549,379 397,315,760
Cumulative effect of restatement - 351,810 - 27,089 - 378,899
Beginning net position,as restated 272,070,515 246,632,421 168,478,864 151,062,238 440,549,379 397,694,659
Ending net position $293,196,681 $272,070,515 $180,902,530 $168,478,864 $474,099,211 $440,549,379
34
City of Tigard, Oregon
Management's Discussion and Analysis
Expenses and Program Revenues—Governmental activities—June 30, 2019
$25,000,000 -
$20,000,000 -
$15,000,000 -
$10,000,000 - ■ Revenues
$5,000,000 - • -I ■ Expenses
$0
�n'�y seN�ces Q��1iG�o� dese\oilmen as .c%, tato ons tette aea�
(0.0
(� and t°n\
co po�c�i metes
Governmental Activities
Governmental activities increased the city's net position by $21,126,166. This increase is less than the
approximate $25.4 million increase in net position from governmental activities experienced in fiscal year
2018. While most revenues, including property taxes, interest, and franchise fees experienced increases
during fiscal year 2019, the decrease comes from an approximate $4 million less capital grants and
contributions. Noteworthy reasons for the change from the prior year are as follows:
• Total operating grants and contributions increased by approximately $1.3 million over the prior year
due to an increase in gas tax collections (approximately$549,000) and the implementation of a county
wide vehicle registration fee (approximately$869,000).
• Property taxes constitute approximately 29 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$714,000 or 3.9 percent over 2018. Oregon has a "rate-based"system in which property
taxes are expressed in a dollar amount per thousand dollars of assessed value. The City of Tigard's
permanent tax rate is $2.5131 per thousand dollars of assessed value. The money raised by this levy
is available for general purposes.
The permanent rate is multiplied by the assessed value each year to arrive at the tax authority for that
year. Assessed value growth is limited to a maximum 3 percent per year, plus a pro-rated share of new
construction and annexations. Assessed value cannot exceed real market value.
General Obligation (GO) debt service levies are calculated to produce enough tax revenues that (when
combined with other resources such as interest earnings and fund balance) will be enough to pay debt
service due on these voter-approved bonds. On November 2, 2010, voters approved a bond measure
in the amount of$17.0 million for acquisition and development of park land. These bonds were sold
35
City of Tigard, Oregon
Management's Discussion and Analysis
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.
• Capital grants and contributions experienced an approximate $4.0 million decrease from fiscal year
2018. This decrease is due to a reduction in new construction and activities generating system
development charges.
• Overall expenses for governmental activities of $45,106,512 increased from the prior fiscal year by
approximately $2.9 million. This increase was due to an escalation in engineering activities and capital
improvement projects.
Revenues by Source—Governmental Activities-June 30, 2019
Capital grants
and
contributions Taxes
19% 33%
Operating grants
and
contributions Interest
14% €1114%
Franchise fees
Charges for 9%
services M i sc
20% 1%
Business-type Activities
Business-type activities increased the city's net position by$12,423,666. The primary reasons for the current
year's increases are:
• Charges for services represent approximately 84.8 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. Total charges for services increased by approximately
$1.0 million or 3.5 percent over fiscal year 2018, with the largest increase in water revenues.
• Expenses for water operations increased approximately $3.1 million or 21.9 percent from the prior
fiscal year. The increase is primarily due to an increase in water construction projects.
36
City of Tigard, Oregon
Management's Discussion and Analysis
Expenses and Program Revenues— Business-type Activities—June 30, 2019
$20,000,000 -
$17,500,000 -
$15,000,000 -
$12,500,000 -
$10,000,000 - ■ Revenues
$7,500,000 - • Expenses
$5,000,000 -
$2,500,000 - MO ill ,,,,,,
$0
Se Qt Isatet \1,Ptec
San�at�4 9-')
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 2019, the city's governmental funds reported combined ending fund balances
of $80,492,906 an increase of $10,468,079 over the prior year. Approximately 31.7 percent or $25,510,000
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$51,414,137 or 63.9 percent of the total fund balance.
Most of the restricted fund balance is dedicated for park acquisition and development, building inspections,
or for street maintenance and improvements. Other restricted resources include library improvements, Police
services, urban development and improvements 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 prepaids.
General Fund
The General Fund is the chief operating fund of the city. At the end of the fiscal year 2019, the unassigned
fund balance was $23,121,341 or approximately 99.0 percent of the total fund balance of$23,347,315. 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 88.0 percent of total General Fund expenditures.
37
City of Tigard, Oregon
Management's Discussion and Analysis
The fund balance of the General Fund increased by $3,940,129 or 20.3 percent. The increase is primarily
attributable to the reclassification of public works administration and engineering to separate internal service
funds. Another reason for the increase is due to a rise in taxes of approximately $1.1 million, or 7.1 percent,
more than fiscal year 2018.
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 2019, the fund balance was $11,607,601, an increase of $36,103 from the prior year. The
small increase was due to the year's revenues being transferred to the Transportation Capital Improvement
fund for various street projects across the city. Total revenues of$2,382,911 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 2019, the fund balance was $10,798,916, an increase of$668,347 from the prior year. The
increase was due to interest earnings and SDC collections. The fund balance has grown over the last several
years due to the River Terrace housing development and are now being spent on Parks capital projects. The
fund transferred approximately $1.1 million to the Parks Capital fund for various projects during the fiscal
year. Total revenues of $1,787,025 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.
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 2019, Capital Outlay for this
fund totaled $4,747,819, 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 $50,316,066 with
individual fund unrestricted net position at:
• Sanitary Sewer $6,525,102
• Stormwater $9,256,523
• Water Funds $34,534,441
The factors concerning the finances of these funds have already been addressed in the discussion of the city's
business-type activities.
38
City of Tigard, Oregon
Management's Discussion and Analysis
General Fund Budgetary Highlights
The city council approved three supplementary budget amendments to the adopted General Fund budget.
Total final adopted budgeted expenditures increased by $1,503,430 from the original budgeted numbers.
Budgeted General Fund contingency was decreased by $825,880 or 64.3 percent. Following are noteworthy
changes from the original budget to the final adopted budget in the General Fund:
• Community Services - Budget appropriation increases totaled $360,172, the majority of which was to
loan funds to the Tigard Triangle Capital Improvements fund. The Triangle Urban Renewal Area did
not receive the tax funding that it anticipated receiving at the time the budget was adopted.
• Policy and Administration — Budget appropriation increases totaled $255,478, the majority of which
was to implement a photo red light enforcement program.
The contingency transactions account for increase in budgeted expenditures not related to increased
revenues. There was an increase to ending General Fund budgetary fund balance of $215,300 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 $719,685 due to an increase in the Local
Government Investment Pool interest rates and a growing balance.
• Intergovernmental revenues—variance with budget of$864,631 due to increases in local and federal
grants plus additional library funds from Washington County Cooperative Library Services (WCCLS).
• Taxes — variance with budget of $584,717 due mainly to a settlement of the Comcast property tax
lawsuit. The lawsuit required that taxes be held in reserve pending the outcome of the trial. With the
settlement the reserved taxes were released to the associated taxing districts.
Capital Asset and Debt Administration
Capital Assets
Governmental Activities
The city's investment in capital assets for its governmental activities as of June 30, 2019, amounts to
$231,549,294 (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$7,015,792 or approximately 3.7
percent over the prior year. The city recorded approximately$4.0 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, 2019, amounts to
$242,740,818 (net of accumulated depreciation). In addition to machinery, equipment and vehicles, the
39
City of Tigard, Oregon
Management's Discussion and Analysis
capital assets include the sanitary sewer collection system, stormwater, and water systems. Total decrease in
the city's investment in business-type activities capital assets was $3,623,820 or 1.6 percent. This decrease is
due to expenditures on capital assets being lower than the overall depreciation expense, leading to a decrease
in net capital assets.
Capital Assets, net of depreciation
Governmental Business-Type
Total
Activities Activities
2019 2018 2019 2018 2019 2018
Land $ 26,380,089 $ 26,009,224 $ 11,975,910 $ 11,975,910 $ 38,355,999 $ 37,985,134
Construction in progress 6,140,084 7,520,815 1,689,824 2,073,062 7,829,908 9,593,877
Buildings and building improvements 13,224,286 13,878,881 74,834,822 76,086,458 88,059,108 89,965,339
Land improvements 7,604,041 1,991,594 7,505,761 7,505,761 15,109,802 9,497,355
Sewer system - - 18,651,593 18,964,253 18,651,593 18,964,253
Stormwater system - - 12,374,258 12,255,567 12,374,258 12,255,567
Water system - - 113,087,699 115,419,467 113,087,699 115,419,467
Machinery and equipment 279,540 339,249 2,046,019 1,734,309 2,325,559 2,073,558
Autos and trucks 1,225,357 1,036,672 574,932 349,851 1,800,289 1,386,523
Office equipment 2,092,324 1,348,511 - - 2,092,324 1,348,511
Infrastructure 174,603,573 172,408,557 - - 174,603,573 172,408,557
Total Capital Assets $ 231,549,294 $ 224,533,503 $ 242,740,818 $ 246,364,638 $ 474,290,112 $ 470,898,141
The following chart indicates the city's capital assets as of June 30, 2019. Additional information on the city's
capital assets can be found in Note 5. Capital Assets in the notes to the basic financial statements of this
report.
Total Capital Assets
Land Construction in
g 1% progress
1.7% Buildings and building
Infrastructure improvements
36.896 18.6%
Office
equipment
0.4% Land improvements
Autos and trucks 3.296
0.4%
Sewer system
Storm drainage 3.9%
Machinery and_ Water system system
equipment 2.6%
0.5% 23.8%
40
City of Tigard, Oregon
Management's Discussion and Analysis
Debt Outstanding
As of year-end, the city had total debt outstanding of $149,654,545. Of this amount $16,094,594 is general
obligation and full faith and credit bonds; $131,055,590 represents water revenue bonds; $1,695,942
represents a note payable; $28,419 represents special assessment bonded debt or local improvement district
bonds; and $780,000 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 $5,377,931 or approximately 3.5 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 $780,000 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 $1,695,942 at year-end.
During fiscal year 2015, in anticipation of issuing water revenue bonds,the city received a revenue bond rating
of Al from Moody's Investors Service and AA-from Standard & Poor's Ratings Services. During fiscal year 2017
Moody's Investor Services reviewed the city's water enterprise activities and upgraded the city's rating from
Al to Aa3.
The State of Oregon statutes limit the amount of general obligation debt that cities can issue to 3.0 percent
of the real market value of all taxable property within the city limits. The current debt limitation for the city
for general obligation debt is $322 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, 2019. Additional information on the
city's debt can be found in Note 6. Long-Term Debt and Other Debt in the notes to the basic financial
statements of this report.
Governmental Activities Business-Type Activities Total
2019 2018 2019 2018 2019 2018
General obligation $ 16,094,594 $ 18,419,297 $ - $ - $ 16,094,594 $ 18,419,297
Local improvement 28,419 124,219 - - 28,419 124,219
Bank loan payable 780,000 910,000 - - 780,000 910,000
Note payable - - 1,695,942 1,803,034 1,695,942 1,803,034
Revenue bonds - - 131,055,590 133,775,926 131,055,590 133,775,926
Total Outstanding Debt $ 16,903,013 $ 19,453,516 $ 132,751,532 $ 135,578,960 $ 149,654,545 $ 155,032,476
41
City of Tigard, Oregon
Management's Discussion and Analysis
Total Outstanding Long-Term Debt
Bank loan
General obligation payable
10.8%_ 0.5%
N\ Local
improvement
- 0.0%
Note payable
1.1%
Revenue bonds
87.6%
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 2020:
• The unemployment rate for the City of Tigard was 3.4 percent at the end of the fiscal year, June 30,
2019. This is less than the State of Oregon rate and the national average of 4.0 percent for June 2019.
• 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 4.1 percent based on prior year's modest growth in assessed
values and anticipated development.
• 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, 2019,
there were 2,713 businesses licensed in the city as compared to 2, 795 a year ago. Business license
revenues are highly sensitive to economic conditions. With the planned economic development in
urban renewal, the city projects an increase in business licenses, but any increase will be gradual over
time.
42
City of Tigard, Oregon
Management's Discussion and Analysis
• 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 2020. Clean Water Services sets rates for
sanitary sewer and storm water management (SWM). Fiscal year 2020 budget includes minor
increases for sanitary sewer and stormwater management rates.
All of these factors were considered in preparing the city's budget for fiscal year 2019-2020. The current
forecast shows that in the short-term the city's financial condition is stable in most funds. The fiscal year 2020
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
43
No content appears on this page by design.
44
Basic Financial Section
45
46
CITY OF TIGARD,OREGON
STATEMENT OF NET POSITION
June 30,2019
Governmental Business-Type
ASSETS Activities Activities
Total
Cash and investments $ 35,946,503 $ 46,057,770 $ 82,004,273
Accounts receivable,net 5,502,309 5,954,358 11,456,667
Property taxes receivable 316,677 - 316,677
Assessment liens receivable 263,308 - 263,308
Prepaids 279,564 - 279,564
Inventory 16,105 276,170 292,275
Investment in joint venture - 1,005,705 1,005,705
Property held for resale - 445,042 445,042
Restricted cash and investments 53,410,728 21,564,332 74,975,060
Net other post employment benefit asset 64,649 - 64,649
Capital assets:
Land and construction in process 32,520,173 13,665,734 46,185,907
Other capital assets(net of accumulated depreciation) 199,029,121 229,075,084 428,104,205
Total assets 327,349,137 318,044,195 645,393,332
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension 4,133,593 - 4,133,593
Deferred outflows related to OPEB 94,098 9,191 103,289
Total deferred outflows 4,227,691 9,191 4,236,882
LIABILITIES
Accounts payable and accrued liabilities 3,304,152 1,669,056 4,973,208
Deposits 2,499,227 42,157 2,541,384
Due to other entities/agencies 684,897 - 684,897
Internal balances 102,320 (102,320) -
Unearned revenue 66,500 - 66,500
Accrued interest payable 72,080 2,543,751 2,615,831
Due within one year:
Notes payable - 110,305 110,305
Bonds payable 2,408,526 2,800,946 5,209,472
Accrued compensated absences 1,218,300 105,120 1,323,420
Bank loan payable 780,000 - 780,000
Special assessment bonded debt with government commitment 28,419 - 28,419
Due in more than one year:
Notes payable - 1,585,637 1,585,637
Bonds payable 13,686,068 128,254,644 141,940,712
Accrued compensated absences 50,762 3,564 54,326
Net other post employment benefit liability 1,161,160 107,103 1,268,263
Net pension liability 11,107,323 - 11,107,323
Total liabilities 37,169,734 137,119,963 174,289,697
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension 880,202 - 880,202
Deferred inflows related to OPEB 330,211 30,893 361,104
Total deferred inflows 1,210,413 30,893 1,241,306
NET POSITION
Net investment in capital assets 216,080,286 110,542,303 326,622,589
Restricted for:
Transportation construction,maintenance and utility undergrounding 26,807,603 - 26,807,603
Park development and improvements 1,163,893 - 1,163,893
Tourism 519,802 - 519,802
Water system construction and improvements - 12,903,512 12,903,512
Debt service 2,501,277 7,140,649 9,641,926
Building development plan review and inspection 8,850,454 - 8,850,454
Library capital improvements 590,078 - 590,078
Urban development and improvements 147,164 - 147,164
Law enforcement equipment 327,964 - 327,964
Unrestricted 36,208,160 50,316,066 86,524,226
Total net position $ 293,196,681 $ 180,902,530 $ 474,099,211
The accompanying notes are an integral part of the basic financial statements.
47
CITY OF TIGARD,OREGON
STATEMENT OF ACTIVITIES
for the year ended June 30,2019
Program Revenues
Charges Operating
for Grants and
Functions/Programs Expenses Services Contributions
Governmental activities:
Community services $ 23,370,174 $ 1,628,237 $ 4,663,921
Public works 12,129,476 4,797,891 4,892,643
Community development 5,146,891 6,432,190 -
Policy and administration 3,688,137 345,505 37,727
Interest on long-term debt 771,834 - -
Total governmental activities 45,106,512 13,203,823 9,594,291
Business-type activities:
Sewer 3,128,483 3,389,281 -
Stormwater 3,261,312 3,812,133 -
Water 17,223,333 23,751,073 -
Total business-type activities 23,613,128 30,952,487 -
Total $ 68,719,640 $ 44,156,310 $ 9,594,291
The accompanying notes are an integral part of the basic financial statements.
48
Net(Expense)Revenue and Changes in Net Position-
Primary Government
Capital
Grants and Governmental Business-type
Contributions Activities Activities Total
$ 832,245 $ (16,245,771) $ - $ (16,245,771)
11,206,928 8,767,986 - 8,767,986
229,097 1,514,396 - 1,514,396
-
(3,304,905) - (3,304,905)
-
(771,834) - (771,834)
12,268,270 (10,040,128) - (10,040,128)
529,743 - 790,541 790,541
633,876 - 1,184,697 1,184,697
2,121,758 - 8,649,498 8,649,498
3,285,377 - 10,624,736 10,624,736
$ 15,553,647 (10,040,128) 10,624,736 584,608
General Revenues:
Property taxes,levied for general
purposes 16,700,604 - 16,700,604
Property taxes,levied for debt service 2,400,939 - 2,400,939
Franchise fees 6,211,736 - 6,211,736
Unrestricted intergovernmental
revenues 2,522,428 - 2,522,428
Interest earnings 2,416,827 1,606,834 4,023,661
Miscellaneous 453,435 652,421 1,105,856
Total general revenues 30,705,969 2,259,255 32,965,224
Transfers between Governmental
and Business-type Activites 460,325 (460,325) -
Change in net position 21,126,166 12,423,666 33,549,832
Net position,beginning 272,070,515 168,478,864 440,549,379
Net position,ending $ 293,196,681 $ 180,902,530 $ 474,099,211
49
CITY OF TIGARD,OREGON
GOVERNMENTAL FUNDS-BALANCE SHEET
June 30,2019
Major Capital Project Funds
Transportation
Transportation Capital Other Total
General Development Parks SDC Improvement Governmental Governmental
Fund Tax Fund Fund Fund Funds Funds
ASSETS
Cash and cash equivalents $ 24,204,432 $ - $ - $ - $ 4,504,827 $ 28,709,259
Accounts receivable 2,801,445 6,189 5,625 1,264,641 1,370,150 5,448,050
Property taxes receivable 268,845 - - - 47,832 316,677
Assessment liens receivable - 3,413 - - 259,895 263,308
Interest receivable 26,227 - - - 7,574 33,801
Prepaids 225,974 - - - 17,560 243,534
Restricted cash and cash equivalents - 11,601,412 10,793,291 588,179 30,427,846 53,410,728
Total assets $ 27,526,923 $ 11,611,014 $ 10,798,916 $ 1,852,820 $ 36,635,684 $ 88,425,357
LIABILITIES
Accounts payable and accrued liabilities $ 1,361,046 $ - $ - $ 108,698 $ 1,092,704 $ 2,562,448
Deposits 1,456,965 - - - 999,600 2,456,565
Due to other entities/agencies 483,362 - - - 201,535 684,897
Unearned revenue - - - - 50,000 50,000
Total liabilities 3,301,373 - - 108,698 2,343,839 5,753,910
DEFERRED INFLOWS OF RESOURCES
Resources not yet available:
Property taxes 228,475 - - - 33,119 261,594
Municipal court receivable 525,452 - - - - 525,452
Transportation refund credits - - - - 23,295 23,295
Grant receivable - - - 910,132 - 910,132
Special assessment liens - 3,413 - - 330,347 333,760
Franchise fees 124,308 - - - - 124,308
Total deferred inflows of resources 878,235 3,413 - 910,132 386,761 2,178,541
FUND BALANCES
Nonspendable:
Prepaids 225,974 - - - 17,560 243,534
Restricted for:
Street maintenance and improvements - 11,607,601 - 833,990 13,916,463 26,358,054
Tourism - - - - 519,802 519,802
Debt service - - - - 2,208,263 2,208,263
Park development and improvements - - 10,798,916 - 1,163,893 11,962,809
Underground utilities - - - - 449,549 449,549
Building inspection - - - - 8,850,454 8,850,454
Police services - - - - 327,964 327,964
Library improvements - - - - 590,078 590,078
Urban development and improvements - - - - 147,164 147,164
Committed for:
Street maintenance and improvements - - - - 2,287,747 2,287,747
Urban forestry - - - - 1,037,488 1,037,488
Assigned to:
City facilities - - - - 929,921 929,921
Park and recreation - - - - 1,458,738 1,458,738
Unassigned 23,121,341 - - - - 23,121,341
Total fund balances 23,347,315 11,607,601 10,798,916 833,990 33,905,084 80,492,906
Total liabilities,deferred inflows of
resources and fund balances $ 27,526,923 $ 11,611,014 $ 10,798,916 $ 1,852,820 $ 36,635,684 $ 88,425,357
The accompanying notes are an integral part of the basic financial statements.
50
CITY OF TIGARD,OREGON
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
June 30,2019
Fund Balances-Governmental Funds $ 80,492,906
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 $ 340,369,748
Less accumulated depreciation (108,820,454) 231,549,294
Pension assets or liabilities,with related deferred outflows of resources and deferred inflows
of resources,are not reported in governmental funds, but are reported on the statement of
net position. The amounts included in governmental activities on the statement of net position:
Net pension liability (11,107,323)
Deferred outflows of resources related to pensions and OPEB 4,190,919
Deferred inflows of resources related to pensions and OPEB (1,086,819) (8,003,223)
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 261,594
Franchise fees earned but not available 124,308
Municipal court receivable 525,452
Grant receivable 910,132
Transportation refund credits 23,295
Assessment liens 333,760 2,178,541
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. 5,555,705
Accrued compensated absences are not due and payable in the current period and therefore are not (831,114)
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 (16,094,594)
Loans payable (780,000)
Special assessment debt bonded with government commitment (28,419)
Internal loans (102,320)
Accrued interest payable,not due and payable in the current period (72,080)
Net other post employment benefit(OPEB)asset 64,649
Net other post employment benefit(OPEB) liability (732,664)
Net Position of Governmental Activities $ 293,196,681
The accompanying notes are an integral part of the basic financial statements.
51
CITY OF TIGARD,OREGON
GOVERNMENTAL FUNDS-
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE
for the year ended June 30,2019
Major Capital Project Funds
Transportation
Transportation Capital Other Total
General Development Parks SDC Improvement Governmental Governmental
Fund Tax Fund Fund Fund Funds Funds
REVENUES
Taxes $ 16,716,747 $ - $ - $ - $ 9,420,638 $ 26,137,385
Franchise fees 6,218,353 - - - - 6,218,353
Special assessments - - - - 59,999 59,999
Licenses and permits 1,290,733 - - - 3,887,323 5,178,056
Intergovernmental revenues 7,219,903 - - 1,055,380 1,223,227 9,498,510
Charges for services 264,272 - - 32,831 4,351,293 4,648,396
System development charges - 2,043,589 1,495,466 - 701,855 4,240,910
Fines and forfeitures 682,647 - - - 160,453 843,100
Rental revenues - - - - 107,371 107,371
Interest earnings 823,407 339,322 291,559 4,051 885,355 2,343,694
Miscellaneous revenues 53,281 - - 919,396 204,181 1,176,858
Total revenues 33,269,343 2,382,911 1,787,025 2,011,658 21,001,695 60,452,632
EXPENDITURES
Current operating:
Community services 21,952,061 - - - 99,470 22,051,531
Public works - - - - 6,105,157 6,105,157
Community development 3,317,805 - - - 1,954,370 5,272,175
Policy and administration 993,346 - - - - 993,346
Debt service:
Principal - - - - 2,530,800 2,530,800
Interest - - - - 799,646 799,646
Capital outlay - - - 4,747,819 6,339,699 11,087,518
Total expenditures 26,263,212 - - 4,747,819 17,829,142 48,840,173
Excess of revenues
over expenditures 7,006,131 2,382,911 1,787,025 (2,736,161) 3,172,553 11,612,459
OTHER FINANCING SOURCES(USES)
Transfer in 237,070 - - 2,973,271 5,598,179 8,808,520
Interfund loan (183,273) - - - - (183,273)
Transfer out (3,119,799) (2,346,808) (1,118,678) - (3,367,615) (9,952,900)
Debt proceeds - - - - 183,273 183,273
Total other financing sources(uses) (3,066,002) (2,346,808) (1,118,678) 2,973,271 2,413,837 (1,144,380)
Net change in fund balances 3,940,129 36,103 668,347 237,110 5,586,390 10,468,079
Fund balances-beginning of the year 19,407,186 11,571,498 10,130,569 596,880 28,318,694 70,024,827
Fund balances-end of year $ 23,347,315 $ 11,607,601 $ 10,798,916 $ 833,990 $ 33,905,084 $ 80,492,906
The accompanying notes are an integral part of the basic financial statements.
52
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 30,2019
Net change in fund balances-Governmental Funds $ 10,468,079
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 8,907,102
Current year depreciation expense (5,351,980)
Contributed capital 4,002,161
Loss on disposal of capital assets (541,491)
Proceeds from disposal of capital assets 26,378 7,042,170
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds
Change in deferred inflows of resources-property taxes (537,192)
Change in franchise fees (6,617)
Change in municipal court receivable 26,377
Change in grants receivable (162,229)
Change in assessment liens (59,999) (739,660)
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 2,530,800
Amortization of premium on long-term debt 19,703 2,550,503
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:
Change in accrued interest payable 8,109
Change in compensated absences 262,616
Pension expense (1,034,811)
OPEB expense 169,492 (594,594)
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 2,399,668
Change in Net Position of Governmental Activities $ 21,126,166
The accompanying notes are an integral part of the basic financial statements.
53
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
June 30,2019
Business-type Activities- Governmental
Enterprise Funds Activities-
Sanitary Internal
Sewer Stormwater Water Totals Service Funds
ASSETS
Current assets:
Cash and cash equivalents $ 5,675,507 $ 8,817,620 $ 31,564,643 $ 46,057,770 $ 7,237,244
Accounts receivable 1,777,680 570,332 3,606,346 5,954,358 20,458
Advances to other funds-Interfund loan 102,320 - - 102,320 -
Prepaids - - - - 36,030
Property held for resale 185,021 260,021 - 445,042
-
Inventory 8,665 8,665 258,840 276,170 16,105
Total current assets 7,749,193 9,656,638 35,429,829 52,835,660 7,309,837
Noncurrent assets:
Restricted cash and cash equivalents - - 21,564,332 21,564,332 -
Investment in joint venture - - 1,005,705 1,005,705 -
Capital assets:
Land and construction in process 645,779 210,447 12,809,508 13,665,734 -
Other capital assets(net of
accumulated depreciation) 19,184,279 13,285,077 196,605,728 229,075,084 -
Totalnoncurrentassets 19,830,058 13,495,524 231,985,273 265,310,855 -
Total assets 27,579,251 23,152,162 267,415,102 318,146,515 7,309,837
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to OPEB 2,169 3,098 3,924 9,191 36,772
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 1,166,287 315,402 187,367 1,669,056 741,702
Unearned revenue - - - - 16,500
Deposits - 8,833 33,324 42,157 42,662
Accrued interest payable - - 2,543,751 2,543,751 -
Accrued compensated absences 26,515 31,398 47,207 105,120 421,306
Current portion of bonds payable - - 2,800,946 2,800,946 -
Current portion of note payable - - 110,305 110,305 -
Total current liabilities 1,192,802 355,633 5,722,900 7,271,335 1,222,170
Noncurrent liabilities:
Accrued compensated absences 899 1,065 1,600 3,564 16,642
Note payable-long-term portion - - 1,585,637 1,585,637 -
Bonds payable-long-term portion - - 128,254,644 128,254,644
Net OPEB liability 25,270 36,102 45,731 107,103 428,498
Total noncurrent liabilities 26,169 37,167 129,887,612 129,950,948 445,140
Total liabilities 1,218,971 392,800 135,610,512 137,222,283 1,667,310
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB 7,289 10,413 13,191 30,893 123,594
NET POSITION
Net investment in capital assets 19,830,058 13,495,524 77,216,721 110,542,303 -
Restricted for capital projects - - 12,903,512 12,903,512 -
Restricted for debt service - - 7,140,649 7,140,649 -
Unrestricted 6,525,102 9,256,523 34,534,441 50,316,066 5,555,705
Total net position $ 26,355,160 $ 22,752,047 $ 131,795,323 $ 180,902,530 $ 5,555,705
The accompanying notes are an integral part of the basic financial statements.
54
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET POSITION
for the year ended June 30,2019
Business-type Activities- Governmental
Enterprise Funds Activities-
Sanitary Internal
Sewer Stormwater Water Totals Service Funds
OPERATING REVENUES
Charges for services $ 3,389,281 $ 3,812,133 $ 23,751,073 $ 30,952,487 $ 16,518,155
Miscellaneous revenues 138,165 8,909 505,346 652,420 303,888
Total operating revenues 3,527,446 3,821,042 24,256,419 31,604,907 16,822,043
OPERATING EXPENSES
Salaries and wages 564,963 866,487 1,005,718 2,437,168 9,331,344
Contracted services 36,668 290,355 2,139,641 2,466,664 1,397,653
General,administrative and other 1,727,444 1,517,378 4,572,968 7,817,790 5,371,214
Depreciation 799,408 587,092 3,971,175 5,357,675 -
Total operating expenses 3,128,483 3,261,312 11,689,502 18,079,297 16,100,211
Operating income(loss) 398,963 559,730 12,566,917 13,525,610 721,832
NON-OPERATING REVENUES(EXPENSES)
Interest earnings 163,890 207,253 1,235,691 1,606,834 73,132
Interest expense - - (5,525,391) (5,525,391) -
Loss on investment in joint venture - - (8,440) (8,440) -
Total non-operating revenue(expense) 163,890 207,253 (4,298,140) (3,926,997) 73,132
Net income(loss)before
contributions and transfers 562,853 766,983 8,268,777 9,598,613 794,964
System development revenue 126,456 18,149 1,870,435 2,015,040 -
Capital contributions 403,287 615,727 251,323 1,270,337 -
Transfers in 42,860 84,544 58,751 186,155 1,604,704
Transfers out (164,457) (212,623) (269,399) (646,479) -
Change in net position 970,999 1,272,780 10,179,887 12,423,666 2,399,668
Net position--beginning of year 25,384,161 21,479,267 121,615,436 168,478,864 3,156,037
Net position--end of year $ 26,355,160 $ 22,752,047 $ 131,795,323 $ 180,902,530 $ 5,555,705
The accompanying notes are an integral part of the basic financial statements.
55
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
for the year ended June 30,2019
Business-type Activities- Governmental
Enterprise Funds Activities-
Sanitary Internal
Sewer Stormwater Water Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 14,278,469 $ 4,507,267 $ 23,669,472 $ 42,455,208 $ 16,616,492
Payments to suppliers (10,317,055) (2,313,269) (7,366,839) (19,997,163) (6,418,729)
Payments to employees (1,762,622) (867,220) (1,017,057) (3,646,899) (8,967,052)
Other receipts 138,165 8,909 505,346 652,420 303,018
Net cash provided(used)by operating activities 2,336,957 1,335,687 15,790,922 19,463,566 1,533,729
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to other funds (164,457) (212,623) (269,399) (646,479) -
Transfers from other funds - - 58,751 58,751 1,604,704
Net cash(used)by noncapital financing activities (164,457) (212,623) (210,648) (587,728) 1,604,704
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
System development revenue 126,456 18,149 1,870,435 2,015,040 -
Principal payments - - (2,292,092) (2,292,092) -
Interest payments - - (6,098,040) (6,098,040) -
Transfers in for capital assets 42,860 84,544 - 127,404 -
Acquisition of capital assets (465,552) (564,353) (183,857) (1,213,762) -
Net cash(used)by capital and related
financing activities (296,236) (461,660) (6,703,554) (7,461,450) -
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in joint venture - - (263,906) (263,906) -
Interest earnings 163,890 207,253 1,235,691 1,606,834 73,132
Net cash(used)by investing activities 163,890 207,253 971,785 1,342,928 73,132
Net increase(decrease)in cash
and investments 2,040,154 868,657 9,848,505 12,757,316 3,211,565
Cash and investments--beginning of the year 3,635,353 7,948,963 43,280,470 54,864,786 4,025,679
Cash and investments--end of the year $ 5,675,507 $ 8,817,620 $ 53,128,975 $ 67,622,102 $ 7,237,244
RECONCILIATION OF OPERATING INCOME(LOSS)TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income(loss) $ 398,963 $ 559,730 $ 12,566,917 $ 13,525,610 $ 721,832
Adjustments to reconcile operating income(loss)
to net cash provided by operating activities:
Cash flows reported in other categories:
Depreciation expense 799,408 587,092 3,971,175 5,357,675 -
Change in assets and liabilities:
Receivables 938,751 (31,682) (82,401) 824,668 50,966
Prepaid expenses - 833 1,250 2,083 118,629
Inventory 2,692 2,692 (62,656) (57,272) 11,496
Accounts payable and accrued liabilities 195,653 217,755 (592,827) (179,419) 223,853
Unearned revenue - - - - 42,662
Accrued compensated absences 1,816 270 1,648 3,734 109,593
Deposits - - 803 803 -
OPEB liability (326) (1,003) (12,987) (14,316) 254,698
Net cash provided(used)by operating activities $ 2,336,957 $ 1,335,687 $ 15,790,922 $ 19,463,566 $ 1,533,729
Non-cash capital and related financing activities:
Developer contributed sewer,stormwater and
water lines $ 403,287 $ 615,727 $ 251,323 $ 1,270,337 -
The accompanying notes are an integral part of the basic financial statements.
56
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).
57
58
CITY OF TIGARD,OREGON
STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST
June 30,2019
ASSETS
Investments:
Restricted stable value fund $ 16,966,677
Restricted corporate bonds 1,011,555
Restricted corporate stocks 12,526,333
Total assets 30,504,565
NET POSITION
Restricted for pension benefits $ 30,504,565
The accompanying notes are an integral part of the basic financial statements.
59
CITY OF TIGARD,OREGON
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST
for the year ended June 30,2019
ADDITIONS
Contributions-employer $ 1,674,245
Contributions-plan members 167,532
Investment income 1,852,097
Total additions 3,693,874
DEDUCTIONS
Benefit payments and withdrawals 1,451,670
Administrative expenses 37,432
Total deductions 1,489,102
Change in net position 2,204,772
Net position of assets held in trust for pension benefits:
Beginning of year 28,299,793
End of year $ 30,504,565
The accompanying notes are an integral part of the basic financial statements.
60
Notes to Basic
Financial Statements
61
62
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 units included in this
financial report.
Blended Component Unit
The Tigard Town Center Development Agency (TCDA), formerly the City Center Development
Agency, oversees and administers the city's two urban renewal areas: 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 TCDA's governing body.
The activities of the TCDA are included in the city's financial statements as a blended
component unit. The CCURA and the TTURA are part of a legally separate entity, which is
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 TCDA 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.
63
City of Tigard, Oregon
Notes to Basic Financial Statements
The city administers a single employer defined contribution plan (the Pension Plan) covering
only city employees who are not eligible to participate in OPERS. Named fiduciaries on the
Pension Plan are certain city management employees and the plan is fiscally dependent upon
the city's contributions. As a result, the Pension Plan is reported as a fiduciary fund in the city's
financial statements.
Joint Venture
The city has 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
the WIF joint venture see footnote 14.
Lake Oswego/Tigard Water Partnership
The city has entered into an intergovernmental agreement (IGA) with the City of Lake Oswego
for the Lake Oswego/Tigard Water Partnership (Partnership). The 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. For more information
on the Partnership see footnote 15.
Basic Financial Statements
Basic financial statements are presented at both the government-wide and fund financial level.
Both levels of statements categorize activities as either governmental or business-type.
Governmental activities, which are normally supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support.
Government-wide financial statements display information on all of the non-fiduciary activities
of the city. For the most part, the effect of interfund activity has been removed from these
statements. These statements focus on the sustainability of the city as an entity and the change
in aggregate financial position resulting from the activities of the fiscal year. These aggregated
statements consist of the Statement of Net Position and the Statement of Activities.
The Statement of Activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services or
privileges provided by a given function or segment, and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment.
64
City of Tigard, Oregon
Notes to Basic Financial Statements
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 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.
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
65
City of Tigard, Oregon
Notes to Basic Financial Statements
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 revenues and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as revenues
of the current fiscal period. Only the portion of special assessments receivable due within the
current fiscal period is considered susceptible to accrual as revenue of the current period. All
other revenues are considered to be measurable and available only when cash is received by
the city.
A deferred inflow of resources, shown as unavailable revenue, arises in the governmental funds
balance sheet when potential revenue does not meet both the measurable and available
criteria for recognition in the current year.
This unavailable revenue consists primarily of uncollected property taxes and assessments not
deemed available to finance operation of the current period. In the government-wide
Statement of Activities, with a full accrual basis of accounting, revenue must be recognized as
66
City of Tigard, Oregon
Notes to Basic Financial Statements
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.
The fiduciary fund accounts for the resources held by the city in a custodial capacity, on behalf
of the employees of the city.
67
City of Tigard, Oregon
Notes to Basic Financial Statements
New Accounting Pronouncements and Accounting Standards
During the fiscal year ended June 30, 2019, the city implemented the following GASB
pronouncements:
GASB Statement No. 83, Certain Asset Retirement Obligations
Issued November 2016, this statement addresses accounting and financial reporting for certain
asset retirement obligations. This statement did not have a significant impact on the city's
financial statements.
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,
significant termination events with finance-related consequences, and significant subjective
acceleration clauses. The city implemented this standard for fiscal year ending June 30, 2019.
See footnote 6 for more information.
The following pronouncements have been issued by the Governmental Accounting Standards
Board (GASB) but not yet implemented by the city:
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.
68
City of Tigard, Oregon
Notes to Basic Financial Statements
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.
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.
69
City of Tigard, Oregon
Notes to Basic Financial Statements
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding
at the end of the fiscal year are referred to as "Advances to/Advances from other funds". Any
residual balances outstanding between the governmental activities and business-type activities
are reported in the government-wide financial statements as "internal balances."
Property taxes are levied and become a lien on July 1. Collection dates are November 15,
February 15, and May 15 following the lien date. Discounts are allowed if the amount due is
received by November 15 or February 15. Taxes unpaid and outstanding on May 16 are
considered delinquent.
The city also has receivables outstanding for assessments on private property. These
assessments include street and sidewalk improvements, sewer line installations and deferral of
certain impact fees (system development charges).
Proprietary fund receivables are recorded as revenue when earned, including services earned
but not billed. The receivables of proprietary funds include billing for residential and
commercial customers utilizing the city's water, sanitary sewer and stormwater management
services.
The city's receivables, including property taxes, assessments and proprietary fund receivables
are deemed to be substantially collectible. Tax and assessments receivable can be recovered
through foreclosure on the subject property. Services can be disconnected if proprietary fund
receivables remain unpaid. Accordingly, no allowance for doubtful accounts is deemed
necessary for these receivables. The city records a receivable and related allowance for
municipal court accounts receivable.
Accounts payable to vendors and contractors include general accounts payable, retainage
payable, deposits payable and other accrued liabilities not included in short-term or long-term
liabilities.
Inventories and Prepaids
Inventories of parts, materials and supplies are stated at cost on the first-in, first-out basis, in
the proprietary funds.The consumption method is used in accounting for inventory for all funds
on the budgetary basis. The consumption method is used for the government-wide
presentation as well as the proprietary funds and business-type activities.
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaids in both government-wide and fund financial statements. Payments
classified as prepaid are primarily items that are being amortized such as prepaid insurance.
70
City of Tigard, Oregon
Notes to Basic Financial Statements
Property Held for Resale
Property held for resale is recorded as an asset and includes land and building inventory stated
at the lower of cost or market. At year-end no reductions in value were necessary, therefore
recorded amounts were equal to original cost.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads,
pathways, street lights, etc.) are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements, and in the proprietary fund
statements.
Capital assets are charged to expenditures as purchased or constructed in the governmental
fund statements, and capitalized in the proprietary fund statements. Capital assets are
recorded at historical cost or estimated historical cost. Donated assets, donated works of art
and similar items, and capital assets received in a service concession arrangement are recorded
at acquisition value.
Capital assets are defined by the city as assets with an initial, individual cost of $5,000 or more,
and an estimated useful life of greater than one year. Additions or improvements and other
capital outlays that significantly extend the useful life of an asset, or that significantly increase
the capacity of an asset are capitalized. Other costs for repairs and maintenance are expensed
as incurred.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of
Activities with accumulated depreciation reflected in the Statement of Net Position and is
provided on the straight-line basis over the following estimated useful lives:
Asset Years
Buildings and improvements 25-40
Improvements other than buildings 10-20
Machinery and equipment 5-10
Autos and trucks 5-10
Infrastructure 20-40
Deposits
In general deposits represent developer funds collected by the city, primarily when issuing
permits for new construction and infrastructure development. Various funds report deposits,
including the General Fund, Gas Tax Fund, Electrical Inspection Fund, Building Fund, Urban
Forestry Fund, Stormwater Fund, Water Fund, and Urban Renewal Agency Capital Improvement
Fund. Deposits are held by the city until the obligations for the projects have been completed
71
City of Tigard, Oregon
Notes to Basic Financial Statements
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
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.
72
City of Tigard, Oregon
Notes to Basic Financial Statements
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 in 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.
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
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City of Tigard, Oregon
Notes to Basic Financial Statements
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.
Net Position
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.
74
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.
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.
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.
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City of Tigard, Oregon
Notes to Basic Financial Statements
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.
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
76
City of Tigard, Oregon
Notes to Basic Financial Statements
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.
3. Cash and Investments
The city maintains a cash and investment pool that is available for use by all funds except the
Pension Trust Fund. Each fund type's portion of this pool is displayed on the combined balance
sheet as "cash and investments". Unrestricted and restricted cash and investments for the
primary government are reported in governmental and business-type activities. Restricted
balances reported in cash and investments are restricted by legal or contractual requirements.
Restricted investments reported in fiduciary activities represent the Pension Trust Fund. These
investments are for the city's defined contribution plan and held separately from city funds
and managed by a third party.
Cash and investments, restricted and unrestricted, at June 30, 2019:
Primary Fiduciary
Type Government Activities Total
Deposits with financial institutions $ 9,989,139 $ - $ 9,989,139
Money markets 6,061,813 - 6,061,813
Cash deposits 16,050,952 - 16,050,952
Cash with fiscal agent 48,940 - 48,940
Petty cash/cash on hand 9,692 - 9,692
Total cash 16,109,584 - 16,109,584
State Investment Pool (LGIP) 128,857,077 - 128,857,077
U.S. Agencies 11,512,850 - 11,512,850
Asset allocation/stable value fund - 16,966,677 16,966,677
Corporate bonds 499,820 1,011,555 1,511,375
Corporate stocks - 12,526,333 12,526,333
Total investments 140,869,747 30,504,565 171,374,312
Total cash and investments $ 156,979,331 $ 30,504,565 $187,483,896
77
City of Tigard, Oregon
Notes to Basic Financial Statements
Governmental Business Type Fiduciary
Total
Activities Activities Activities
Cash and investments $ 35,946,503 $ 46,057,771 $ - $ 82,004,274
Restricted cash and investments 53,410,725 21,564,332 30,504,565 105,479,622
Total cash and investments $ 89,357,228 $ 67,622,103 $ 30,504,565 $ 187,483,896
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, 2019 was $16,050,952 and the total
bank balance is $15,872,379. Of these deposits, $500,000 was covered by federal depository
insurance and $15,372,379 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.
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
78
City of Tigard, Oregon
Notes to Basic Financial Statements
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 fair value of the city's position is the same as the value of the
city's pool shares. 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, 2019, the city's fair value in the LGIP was $128,857,077. Financial statement for the
Oregon Short-Term Fund can be found on line at:
http://www.oregon.gov/treasury/Divisions/Investment/Pages/Oregon-Short-Term-Fund-
(OSTF).aspx
In accordance with the implementation of GASB Statement No. 72, Fair Value Measurement
and Application, the city categorizes its fair value measurements within the fair value
hierarchy established by generally accepted accounting principles. The hierarchy is based on
the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted
prices in active markets; Level 2 inputs are significant other observable inputs; Level 3 are
significant unobservable inputs. The city has the following investments and recurring fair
value measurements as of June 30, 2019:
Fair Value
Fair Value Measurement
Primary Government
Amortized Cost Not
Local Government Investment Pool (LGIP) $ 128,857,077 Measured at Fair Value
U.S. Agencies 11,512,850 Level 2
Corporate Bonds 499,820 Level 2
Total Primary Government investments 140,869,747
Fiduciary Activities
Asset allocation/stable value fund 16,966,677 Level 2
Corporate bonds 1,011,555 Level 2
Corporate stocks 12,526,333 Level 1
Total Fiduciary Activities investments 30,504,565
Total Investments $ 171,374,312
79
City of Tigard, Oregon
Notes to Basic Financial Statements
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, 2019
the total restricted investments in the pension plan were $30,504,565. 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.
Interest rate risk. Interest rate risk is the risk that the value of a debt security may fall when
interest rates rise. In general, the market price of debt securities with longer maturities will go
up or down in response to changes in interest rates more than the market price of shorter-
term securities. Additionally, securities issued or guaranteed by the U.S. Government, its
agencies, instrumentalities and sponsored enterprises have historically involved little risk of
loss of principal if held to maturity. However, due to fluctuations in interest rates, the market
value of such securities may vary prior to maturity.
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.
80
City of Tigard, Oregon
Notes to Basic Financial Statements
At June 30, 2019, the city had the following investments and maturities at fair value:
Weighted
Average
Maturity
Risk (in
Investment Type Fair Value Concentration months)
Primary government
Local Government Investment Pool (LGIP) * $ 128,857,077 75.2% < 1
U.S. Agencies 11,512,850 6.7% 1.89
Corporate Bonds 499,820 0.3% < 1
Total primary government investments 140,869,747 82.2%
Fiduciary activities
Asset allocation/stable value fund 16,966,677 9.9% N/A
Corporate bonds 1,011,555 0.6% **
Corporate stocks 12,526,333 7.3% N/A
Total fiduciary activities investments 30,504,565 17.8%
Total Investments $ 171,374,312 100.0%
Portfolio weighted average maturity 1.93
* LGIP is considered an investment per the city's investment policy. For financial reporting,
LGIP is considered cash and cash equivalents due to the liquid nature of the accounts.
** Maturity information not available for Fiduciary Activities.
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.
81
City of Tigard, Oregon
Notes to Basic Financial Statements
At June 30, 2019 the city's investments were rated as follows:
of Fair
Investment Type Moody's S & P Fitch Fair Value Value
Primary Government
State Investment Pool (LGIP) N/R N/R N/R $ 128,857,077 75.2%
Corporate Bonds N/R AA A+ 499,820 0.3%
US Agency N/R N/R N/R 498,335 0.3%
US Agency Aaa AA+ AAA 501,210 0.3%
US Agency Aaa AA+ N/R 1,000,250 0.6%
US Agency N/R AA+ N/R 1,000,180 0.6%
US Agency Aaa N/R N/R 1,002,500 0.6%
US Agency N/R AA+ N/R 5,001,000 2.8%
US Agency Aaa AA+ N/R 2,509,375 1.5%
Total Primary Government investments 140,869,747 82.2%
Fiduciary Activities
Asset allocation/stable value fund 16,966,677 9.9%
Corporate bonds 1,011,555 0.6%
Corporate stocks 12,526,333 7.3%
Total Fiduciary Activities investments 30,504,565 17.8%
Total Investments $ 171,374,312 100.0%
Rating agency information not available for Fiduciary Activities.
82
City of Tigard, Oregon
Notes to Basic Financial Statements
4. Accounts Receivable
Accounts receivable as of June 30, 2019 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 $5,117,800 $268,845 $ - $5,386,645 $ (2,290,128) $ 3,096,517
Transportation development tax 6,189 - 3,413 9,602 - 9,602
Parks SDC 5,625 - - 5,625 - 5,625
Transportation capital improvement fund 1,264,641 - - 1,264,641 - 1,264,641
Nonmajor governmental 1,377,724 47,832 259,895 1,685,451 - 1,685,451
Internal service 20,458 - - 20,458 - 20,458
$7,792,437 $316,677 $ 263,308 $8,372,422 $ (2,290,128) $ 6,082,294
Business-Type Activities
Sanitary sewer $1,777,680 $ - $ - $1,777,680 $ - $ 1,777,680
Stormwater 570,332 - - 570,332 - 570,332
Water 3,606,346 - - 3,606,346 - 3,606,346
$5,954,358 $ - $ - $5,954,358 $ - $ 5,954,358
Total receivables $12,036,652
Shown on the Statement of Net Positions as:
Accounts receivable, net $11,456,667
Property taxes receivable 316,677
Assessment liens receivable 263,308
$12,036,652
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, 2019, $3,053,503 was outstanding for
municipal court receivables with a related allowance for doubtful accounts of$2,290,128.
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, 2019, the portion of the assessments receivable
balance that represents delinquent accounts is insignificant.
83
City of Tigard, Oregon
Notes to Basic Financial Statements
5. Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2019 was as
follows:
Balances Balances
Governmental activities June 30,2018 Additions Deletions Transfers June 30,2019
Non-depreciable:
Land $ 26,009,224 $ - $ - $ 370,865 $ 26,380,089
Construction in progress 7,520,815 8,094,942 (541,491) (8,934,182) 6,140,084
Total non-depreciable 33,530,039 8,094,942 (541,491) (8,563,317) 32,520,173
Depreciable:
Building and improvements 23,544,033 - - - 23,544,033
Land improvements 9,432,054 - - 6,186,997 15,619,051
Machinery and equipment 2,922,042 73,593 (175,328) - 2,820,306
Autos and trucks 3,096,055 491,307 (142,252) - 3,445,109
Office equipment 3,366,841 1,079,505 - - 4,446,346
Infrastructure 252,428,494 3,169,916 - 2,376,320 257,974,730
Total depreciable 294,789,518 4,814,321 (317,580) 8,563,317 307,849,575
Accumulated depreciation:
Building and improvements (9,665,152) (654,595) - - (10,319,747)
Land improvements (7,440,460) (574,550) - - (8,015,010)
Machinery and equipment (2,582,793) (133,301) 175,328 - (2,540,766)
Autos and trucks (2,059,382) (302,622) 142,252 - (2,219,752)
Office equipment (2,018,330) (335,692) - - (2,354,022)
Infrastructure (80,019,937) (3,351,220) - - (83,371,157)
Total accumulated depreciation (103,786,054) (5,351,980) 317,580 - (108,820,454)
Net depreciable assets 191,003,464 (537,659) - 8,563,317 199,029,121
Governmental activities capital
assets, net $224,533,503 $7,557,283 $(541,4911 $ - $231,549,294
Depreciation expense for governmental activities is charged to functions as follows:
Community services $ 314,935
Public works 4,830,477
Community development 7,306
Policy and administration 199,262
Total depreciation for governmental activities $ 5,351,980
84
City of Tigard, Oregon
Notes to Basic Financial Statements
Capital assets activity for business-type activities for the year ended June 30, 2019, was as
follows:
Balances Balances
Business-type activities June 30,2018 Additions Deletions Transfers June 30,2019
Non-depreciable:
Land $ 11,975,910 $ - $ - $ - $ 11,975,910
Construction in progress 2,073,062 410,212 (750,239) (43,211) 1,689,824
Total non-depreciable 14,048,972 410,212 (750,239) (43,211) 13,665,734
Depreciable:
Building and improvements 77,323,567 - - - 77,323,567
Land Improvements 7,505,761 - - - 7,505,761
Sewer system 31,475,651 403,287 - - 31,878,938
Stormwater system 21,497,935 615,727 - 43,211 22,156,873
Water system 147,833,207 251,323 - - 148,084,530
Equipment 3,473,237 505,050 - - 3,978,287
Autos and trucks 2,061,631 298,496 (29,991) - 2,330,136
Total depreciable 291,170,989 2,073,883 (29,991) 43,211 293,258,092
Accumulated depreciation:
Building and improvements (1,237,109) (1,251,636) - - (2,488,745)
Sewer system (12,511,398) (715,947) - - (13,227,345)
Stormwater system (9,242,368) (540,247) - - (9,782,615)
Water system (32,413,740) (2,583,091) - - (34,996,831)
Equipment (1,738,928) (193,340) - - (1,932,268)
Autos and trucks (1,711,780) (73,415) 29,991 - (1,755,204)
Total accumulated depreciation (58,855,323) (5,357,676) 29,991 - (64,183,008)
Net depreciable assets 232,315,666 (3,283,793) - 43,211 229,075,084
Business-type activities capital
assets, net $246,364,638 $ (2,873,581) $(750,239) $ - $242,740,818
Depreciation expense for business-type activities is charged to activities as follows:
Sanitary sewer $ 799,409
Stormwater 587,092
Water 3,971,175
Total depreciation for business-type activities $ 5,357,676
85
City of Tigard, Oregon
Notes to Basic Financial Statements
6. Long-term Debt and Other Debt
Governmental Activities
Direct Borrowings and Placements
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. The outstanding loan
carries an Event of Default clause which allows the lender to exercise any remedy available at
law or in equity, with the exception of acceleration. As of June 30, 2019, the balance
outstanding on the bank loan was $780,000. Future principal and interest payments on the
loan are as follows:
Year Ending
June 30, Principal Interest Total
2020 $ 780,000 $ 11,681 $ 791,681
General Obligation Bonds and Full Faith and Credit Bonds
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. The outstanding bond carry
an Events of Default and Remedies clause which permits the Bank of America to increase the
interest rate by three percent above the stated rate of the bonds until such time that the
default is remedied. At June 30, 2019 the outstanding balance on the bonds was $825,000.
Future principal and interest payments on the bonds are as follows:
Year Ending
June 30, Principal Interest Total
2020 $ 825,000 $ 35,888 $ 860,888
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, 2019 was $28,419 with principal and interest
payments as follows:
Year Ending
June 30, Principal Interest Total
2020 $ 28,419 $ 1,021 $ 29,440
86
City of Tigard, Oregon
Notes to Basic Financial Statements
Other Debt
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, 2019 the outstanding balance on the 2011B bonds was $3,335,000.
Parks Bonds: In fiscal year 2010-2011 the city issued $17,000,000 of general obligation bonds,
series 2011A at a premium of $297,213. The proceeds of the bonds were issued to acquire
open spaces, protect and improve parklands. At least 80 percent of the bond proceeds went
towards land acquisition for open spaces, parks or trail corridors with up to 20 percent
towards improvements and development of park land. Interest rates range from 3.0 percent to
4.75 percent on specific maturities. At June 30, 2019, the outstanding balance on the bonds
was $11,805,000 and the balance of the unamortized premium was $129,594.
The outstanding bonds carry a Default and Remedies clause which allows owners of ten
percent or more of the principal amount of the bonds then outstanding to exercise any
remedy available at law or in equity, with the exception of acceleration.
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
2020 $ 1,565,000 $ 631,825 $ 2,196,825
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 910,000 381,725 1,291,725
2025-2029 5,170,000 1,297,825 6,467,825
2030-2031 2,415,000 173,376 2,588,376
$ 15,140,000 $ 3,990,726 $ 19,130,726
Premium 129,594
Total $ 15,269,594
Business-type Activities
Direct Borrowings and Placements
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,
87
City of Tigard, Oregon
Notes to Basic Financial Statements
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.
Within the note agreement the state, in the event of default, may pursue any or all the
following remedies or any other remedies available at law or in equity:
• termination of the loan agreement
• termination of the state's obligations to make the loan or any disbursement,
• repayment of the loan due upon demand,
• payment of interest earned by the city on the loan proceeds due upon demand,
• acceleration of the loan,
• declaration of the city's ineligibility to receive future awards, and
• the withholding pursuant to ORS 285A.213(6) and OAR 123-049-0040 of other state
funds.
At June 30, 2019, the balance on the note payable was $1,695,942. Future debt service
requirements are as follows:
Year Ending
June 30, Principal Interest Total
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 124,149 37,034 161,183
2025-2029 678,899 127,017 805,916
2030-2032 431,420 25,353 456,773
Total $ 1,695,942 $ 372,662 $ 2,068,604
Other Debt
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
88
City of Tigard, Oregon
Notes to Basic Financial Statements
from 3.0 percent to 5.0 percent. At June 30, 2019, the balance of the 2012 water revenue
bonds was $91,900,000 and the balance of the unamortized premium was $5,105,107.
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, 2019, the balance of the 2015 water revenue bonds was $30,315,000 and the balance of
the unamortized premium was $3,735,483.
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 2019 were $16,106,944 as compared to the total debt service of
$8,229,750. The computation of water revenue bonds debt coverage is as follows:
Gross revenues $ 23,751,073
System Development Charges (SDC) related:
SDC Fund interest earnings 343,069
Reimbursement fee receipts 921,379
Improvement fee receipts 949,056
Total SDC-related 2,213,504
Operating expense:
Salaries and wages 1,005,720
Contracted services 453,971
Water purchases 1,685,669
General, admin and other 4,498,769
Total operating expenses 7,644,129
Net revenues (including SDCs) 18,320,448
Net revenues (excluding SDCs) $ 16,106,944
Debt service - first lien bonds:
2012 bonds $ 6,563,750
2015 bonds 1,666,000
Total debt service $ 8,229,750
Debt service coverage - first lien bonds
(excluding system development charges) 1.96
89
City of Tigard, Oregon
Notes to Basic Financial Statements
Interest rates on the bonds range from 3 percent to 5 percent on specific maturities. The
outstanding bonds carry a Default and Remedies clause which allows owners to exercise any
remedy available at law or in equity, with the exception of acceleration.
Future maturities of bond principal and premium and interest on the revenue bonds are as
follows:
Year Ending
June 30, Principal Interest Total
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 2,685,000 5,547,175 8,232,175
2025-2029 15,595,000 25,556,550 41,151,550
2030-2034 19,985,000 21,158,775 41,143,775
2035-2039 25,660,000 15,489,750 41,149,750
2040-2044 32,950,000 8,199,500 41,149,500
2045-2046 15,665,000 793,125 16,458,125
122,215,000 $ 99,991,175 $ 222,206,175
Premium 8,840,590
Total $ 131,055,590
90
City of Tigard, Oregon
Notes to Basic Financial Statements
Long-term debt activity, including compensated absences, for the year ended June 30, 2019
was as follows:
Balances June Balances June Due in one
30,2018 Additions Retirements 30,2019 year
Governmental activities
Direct borrowings and placements
Bank loan payable $ 910,000 $ - $ (130,000) $ 780,000 $ 780,000
Bonds payable 1,625,000 - (800,000) 825,000 825,000
Special assessment debt 124,219 - (95,800) 28,419 28,419
Total direct borrowings and
placements 2,659,219 - (1,025,800) 1,633,419 1,633,419
Other debt
Bonds payable 16,645,000 - (1,505,000) 15,140,000 1,565,000
Total governmental debt 19,304,219 - (2,530,800) 16,773,419 3,198,419
Premium on bonds 149,297 - (19,703) 129,594 18,526
Other long-term liabilities
Compensated absences 1,422,054 1,870,095 (2,023,086) 1,269,063 1,218,300
Governmental activities $ 20,726,273 $ 1,870,095 $(4,553,886) $ 18,042,482 $4,416,719
Business-type activities
Direct borrowings and placements
Note payable $ 1,803,034 $ - $ (107,092) $ 1,695,942 $ 110,305
Other debt
Bonds payable 124,400,000 - (2,185,000) 122,215,000 2,275,000
Total business-type debt 126,203,034 - (2,292,092) 123,910,942 2,385,305
Premium on bonds 9,375,925 - (535,335) 8,840,590 525,946
Other long-term liabilities
Compensated absences 104,950 158,575 (154,840) 108,685 105,120
Business-type activities $ 126,307,984 $ 158,575 $(2,446,932) $ 124,019,627 $2,490,425
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 urban renewal development projects.
Repayment of these transactions occurs in years subsequent to year-end.
91
City of Tigard, Oregon
Notes to Basic Financial Statements
The net effect of interfund loans is reported on the Statement of Net Position as Internal
Balances. The composition of interfund loans and the related elimination as of June 30, 2019
are as follows:
Net
Receivable Fund Payable Fund Amount Elimination Balance
General Fund Non major governmental fund $ 838,385 $ (838,385) $ -
Sanitary Sewer Fund Nonmajor governmental fund 102,320 - 102,320
$ 940,705 $ (838,385) $ 102,320
Future maturities on the interfund loans are as follows:
Interfund Loans Elimination Net Balance
Year Ending
June 30, Principal Interest Principal Interest Principal Interest
2020 $ - $ 3,932 $ - $ (3,420) $ - $ 512
2021 - 8,972 - (8,460) - 512
2022 - 8,972 - (8,460) - 512
2023 - 8,972 - (8,460) - 512
2024 - 8,972 - (8,460) - 512
2025-2029 287,274 42,640 (236,752) (40,584) 50,522 2,056
2030-2034 448,764 30,736 (396,967) (29,957) 51,797 779
2035-2039 184,023 11,425 (184,023) (11,425) - -
2040 20,643 568 (20,643) (568) - -
$ 940,704 $ 125,189 $ (838,385) $ (119,794) $ 102,319 $ 5,395
92
City of Tigard, Oregon
Notes to Basic Financial Statements
Transfers for fiscal year ended June 30, 2019 are as follows:
Transfer To Transfer From Amount Purpose
General Nonmajor Governmental $ 237,070 $ 237,070 Unrestricted portion of the city's transient lodging tax
Transportation Transportation
CIP Development Tax 2,325,863 SDC related capital projects
Stormwater 9 Stormwater component of street project
Nonmajor Governmental 647,399 Gas tax funding for street projects
2,973,271
Nonmajor
Governmental General 2,947,316 Fund park and various other operations
Parks SDC 1,003,985 Fund parks capital projects
Nonmajor Governmental 1,623,817 Fund parks capital projects
Stormwater 23,061 Fund stormwater component of parks capital project
5,598,179
Sanitary Sewer Stormwater 42,860 42,860 Fund sewer component of stormwater project
Stormwater Sanitary Sewer 84,544 84,544 Fund stormwater component of sewer project
Water General 27,460 Lease payments for water building
Sanitary Sewer 13,413 Lease payments for water building
Stormwater 17,878 Lease payments for water building
58,751
Funding of public works administration and
Internal Service General 145,023 engineering
Transportation
Development Tax 20,945 Funding for contracting and accounting
Parks SDC 114,693 Funding for contracting and accounting
Nonmajor Governmental 859,328 Capital project funding contracting and accounting
Funding of public works administration and
Sanitary Sewer 66,500 engineering
Funding of public works administration and
Stormwater 128,816 engineering
Funding of public works administration and
Water 269,399 engineering
1,604,704
$10,599,379
Reconciliation: Transferred to governmental funds from:
Sewer Fund $ 66,500
Stormwater Fund 151,885
Water Fund 269,399
Transferred from governmental funds to enterprise funds:
From General Fund to Water Fund (27,460)
Total transfers per Statement of Activities $460,325
These transfers have been eliminated in the government-wide statement of activities other
than the net effect between governmental activities and business-type activities.
93
City of Tigard, Oregon
Notes to Basic Financial Statements
8. 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.
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 $ - $ 64,649 $ 64,649
Deferred Outflows of Resources
Differences between expected and actual experience 13,312 - 13,312
Change in proportionate share - 521 521
Contributions After the Measurement Date 59,353 30,103 89,456
Total Deferred Outflows of Resources 72,665 30,624 103,289
Total OPEB Liability 1,268,263 - 1,268,263
Deferred Inflows of Resources
Differences between expected and actual experience - 3,664 3,664
Net difference between projected and actual earnings
on investment - 13,938 13,938
Change in Proportionate Share - 777 777
Change in Assumptions 328,582 205 328,787
Difference in Earnings - 13,938 13,938
Total Deferred Inflows of Resources 328,582 32,522 361,104
OPEB Expense (Income) 126,316 (6,298) 120,018
(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 meet the criteria
in paragraph 4 of Statement 75.
94
City of Tigard, Oregon
Notes to Basic Financial Statements
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, 2018, the following
employees were covered by the benefit terms:
Inactive employees or beneficiaries receiving benefits 6
Active employees 287
293
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 $1,268,263 was measured as of June 30, 2019, and was
determined by an actuarial valuation as of July 1, 2018.
For the fiscal year ended June 30, 2019, the city recognized OPEB expense from this plan of
$126,316. At June 30, 2019, 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
Differences between expected and actual experience $ 13,312 $ -
Changes of assumptions - (328,582)
Contributions subsequent to the measurement date 59,353 -
Total $ 72,665 $ (328,582)
Deferred outflows of resources related to OPEB of $59,353 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, 2020. 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
2020 $ (45,526)
2021 (45,526)
2022 (45,526)
2023 (45,526)
2024 (45,526)
Thereafter (87,640)
$ (315,270)
95
City of Tigard, Oregon
Notes to Basic Financial Statements
Actuarial Assumptions and Other Inputs
The total OPEB liability in the July 1, 2018 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-2014 healthy annuitant, sex distinct mortality tables blended 50/50
blue collar and white collar, set back one year for males. Mortality is
projected on a generational basis using the Unisex Social Security Data
Scale.
Discount rate 3.87 percent (change from 3.58 percent in previous measurement period)
Healthcare cost trend rate Medical and vision: 6.75 percent per year, decreasing to 4.75 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, 2018 $ 1,421,584
Changes for the year:
Service cost 117,599
Interest on total OPEB liability 54,243
Effect of economic/demographic gains and losses 15,135
Effect of assumptions changes or inputs (291,814)
Benefit payments (48,484)
Balance as of June 30, 2019 $ 1,268,263
Changes in assumptions is the result of the change in the discount rate from 3.58 percent to
3.87 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 (2.87 percent) or 1-
96
City of Tigard, Oregon
Notes to Basic Financial Statements
percentage-point higher (4.87 percent) than the current discount rate. A similar sensitivity
analysis is then presented for changes in the healthcare trend assumption.
Discount Rate:
1% Decrease Current Discount 1% Increase
(2.87%) Rate (3.87%) (4.87%)
Total OPEB Liability $ 1,389,137 $ 1,268,263 $ 1,157,132
Healthcare Cost Trend:
1% Decrease Current Healthcare 1% Increase
(5.75%) Trend Rate (6.75%) (7.75%)
Total OPEB Liability $ 1,112,273 $ 1,268,263 $ 1,452,685
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
97
City of Tigard, Oregon
Notes to Basic Financial Statements
from PERS or (2) was insured at the time the member died and the member retired before
May 1, 1991.
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, 2016 actuarial valuation. The rates based on a percentage of
payroll, first became effective July 1, 2018. 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, 2019 was $30,103.
OPEB Assets, Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to OPEB
At June 30, 2019, the city reported an asset of $64,649 for its proportionate share of the
OPERS net OPEB asset. The net OPEB asset was measured as of June 30, 2018, and the total
OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation as
of December 31, 2016 rolled forward to June 30, 2018. 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, 2018, the city's
proportionate share was 0.0579%, which is a decrease from its proportion of 0.0612% as of
June 30, 2017.
For the year ended June 30, 2019, the city recognized OPEB income from this plan of $6,298.
At June 30, 2019, 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
Differences between expected and actual experience $ - $ 3,664
Change of assumptions - 205
Net difference between projected and actual earnings - 13,938
Changes in proportionate share 521 777
Contributions subsequent to the measurement date 30,103 -
Total $ 30,624 $ 18,584
Deferred outflows of resources related to OPEB of $30,103 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, 2020.
98
City of Tigard, Oregon
Notes to Basic Financial Statements
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
2020 $ (6,096)
2021 (5,961)
2022 (4,620)
2023 (1,386)
$ (18,063)
Actuarial Methods and Assumptions
The total OPEB liability in the December 31, 2016 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 7.2 percent
Salary increases 3.5 percent
Healthy mortality Healthy retirees and beneficiaries:
RP-2014 Healthy annuitant, sex-distinct, generational with
Unisex, Social Security Data Scale, with collar adjustments and
set-backs as described in the valuation.
Active members:
RP-2014 Employees, sex-distinct, generational with Unisex,
Social Security Data Scale, with collar adjustments and set-
backs as described in the valuation.
Disabled retirees:
RP-2014 Disabled retirees, sex-distinct, generational with
Unisex, Social Security Data Scale.
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
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City of Tigard, Oregon
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on the 2016 experience study which reviewed experience for the four-year period ending on
December 31, 2016.
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% 3.49%
Short-Term Bonds 8.00 3.38
Bank/Leveraged Loans 3.00 5.09
High Yield Bonds 1.00 6.45
Large/Mid Cap US Equities 15.75 6.30
Small Cap US Equities 1.31 6.69
Micro Cap US Equities 1.31 6.80
Developed Foreign Equities 13.13 6.71
Emerging Market Equities 4.13 7.45
Non-US Small Cap Equities 1.88 7.01
Private Equity 17.50 7.82
Real Estate (Property) 10.00 5.51
Real Estate (REITS) 2.50 6.37
Hedge Fund of Funds - Diversified 2.50 4.09
Hedge Fund - Event-driven 0.63 5.86
Timber 1.88 5.62
Farmland 1.88 6.15
Infrastructure 3.75 6.60
Commodities 1.88 3.84
Assumed Inflation - Mean 2.50
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City of Tigard, Oregon
Notes to Basic Financial Statements
Discount Rate
The discount rate used to measure the total OPEB liability was 7.20 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
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 7.20 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 (6.20 percent) or 1-percentage-point higher (8.20 percent) than the
current rate:
1% Decrease Current Discount 1% Increase
(6.20%) Rate (7.20%) (8.20%)
Net OPEB Liability (Asset) $ (37,642) $ (64,649) $ (87,638)
OPEB 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
9. 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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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, 2016 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 $1,016,600.
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
$376,970 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, 2019, the city reported a liability of $11,107,323 for its proportionate share of the
OPERS net pension liability. The net pension liability was measured as of June 30, 2018, and
the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of December 31, 2016 rolled forward to June 30, 2018. 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, 2018, the city's proportion of OPERS net
pension liability was 0.07332 percent.
104
City of Tigard, Oregon
Notes to Basic Financial Statements
Annual Pension Cost
For the year ended June 30, 2019, the city recognized pension expense of $2,070,287. At June
30, 2019, the city reported deferred outflows or resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Differences between expected and actual experience $ 377,838 $ -
Changes of assumptions 2,582,432 -
Net difference between projected and actual earnings on investments - 493,228
Changes in proportion 70,702 286,334
Differences between employer contributions and proportionate share
of contributions 62,930 100,640
Total (prior to post-MD contributions) 3,093,902 880,202
Contributions subsequent to the MD 1,039,691 -
Total $4,133,593 $880,202
Deferred outflows of resources related to pensions of $1,039,691 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,
2020. 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
FY2020 $ 998,220 FY2020 $(225,954) FY2020 $1,224,174
FY2021 945,002 FY2021 141,537 FY2021 803,465
FY2022 876,530 FY2022 732,404 FY2022 144,126
FY2023 270,629 FY2023 228,889 FY2023 41,740
FY2024 3,521 FY2024 3,326 FY2024 195
Total $3,093,902 Total $ 880,202 Total $2,213,700
105
City of Tigard, Oregon
Notes to Basic Financial Statements
Actuarial Methods and Assumptions
The total pension liability in the December 31, 2016 actuarial valuation was determined using
the following actuarial methods and assumptions:
Actuarial Methods and Assumptions
Valuation Date December 31, 2016
Measurement Date June 30, 2018
Experience Study Report 2016. published July 26, 2017
Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:
Inflation Rate 2.50 percent
Long-Term Expected Rate of Return 7.20 percent
Discount Rate 7.20 percent
Proiected Salary Increases 3.50 percent overall payroll erowth
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-2014 Healthy annuitant, sex-
distinct, generational with Unisex, Social Security Data Sacale,
with collar adjustments and set-backs as described in the
valuation.
Mortality Active Members: RP-2014 Employes, sex-distinct, generational
with Unisex, Social Security Data Sacale, with collar adjustments
and set-backs as described in the valuation.
Disabled retirees: RP-2014 Disabled retirees, sex-distinct,
generational with Unisex, Social Security Data Sacale.
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 2016 experience study which reviewed experience for the four-year period ending on
December 31, 2016.
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
106
City of Tigard, Oregon
Notes to Basic Financial Statements
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% 3.49%
Short-Term Bonds 8.00 3.38
Bank/Leveraged Loans 3.00 5.09
High Yield Bonds 1.00 6.45
Large/Mid Cap US Equities 15.75 6.30
Small Cap US Equities 1.31 6.69
Micro Cap US Equities 1.31 6.80
Developed Foreign Equities 13.13 6.71
Emerging Market Equities 4.13 7.41
Non-US Small Cap Equities 1.88 7.01
Private Equity 17.50 7.82
Real Estate (Property) 10.00 5.51
Real Estate (REITS) 2.50 6.37
Hedge Fund of Funds - Diversified 2.50 4.09
Hedge Fund - Event-driven 0.63 5.86
Timber 1.88 5.62
Farmland 1.88 6.15
Infrastructure 3.75 6.60
Commodities 1.88 3.84
Assumed Inflation - Mean 2.50
Discount Rate
The discount rate used to measure the total pension liability was 7.20 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.
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 7.20 percent, as well as what the city's proportionate
107
City of Tigard, Oregon
Notes to Basic Financial Statements
share of the net pension liability (asset) would be if it were calculated using a discount rate
that is 1-percentage-point lower (6.20 percent) or 1-percentage-point higher (8.20 percent)
than the current rate:
1% Decrease Discount Rate 1% Increase
(6.20%) (7.20%) (8.20%)
City's proportionate share of
the net pension liability $ 18,562,436 $ 11,107,323 $ 4,953,738
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
10. 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, 2019:
Classification of eligible employees Enrollment
Represented (SEIU)/Police (non-sworn) employees 118
Management employees 85
Total enrolled employees 203
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 $1,674,245 for the year ended June 30, 2019.
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, 2019, the total net position of the pension
plan was $30,504,565, which approximates fair value.
108
City of Tigard, Oregon
Notes to Basic Financial Statements
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.
11.Tax Abatements
As of June 30, 2019, 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.
• 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.
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City of Tigard, Oregon
Notes to Basic Financial Statements
• 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, 2019, the city's property tax revenues were reduced by an
estimated $12,000 as a result of the EZ program. For the fiscal year ended June 30, 2019,
the Tigard Urban Renewal's property tax revenues were reduced by an estimated $360 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
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City of Tigard, Oregon
Notes to Basic Financial Statements
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, 2019, the city's property tax revenues were reduced by an
estimated $34,000 as a result of this program. For fiscal year ended June 30, 2019 the
Tigard Urban Renewal's property tax revenues were reduced by an estimated $1,000 as a
result of this program.
Vertical Housing Development Zone
The city's Vertical Housing Development Zone (VHDZ) tax exemption program is authorized
by ORS 285C.450 to 285C.480 and 307.864. This ORS allows municipalities to create special
districts to encourage mixed-use development. In 2014, the city passed Resolution No. 14-
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City of Tigard, Oregon
Notes to Basic Financial Statements
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, 2019, the city's property tax revenues were reduced by an
estimated $22,000 as a result of this program. For the fiscal year ended June 30, 2019 the
Tigard Urban Renewal's property tax revenues were reduced by an estimated $700 as a
result of this program.
For the fiscal year ended June 30, 2019, the city abated property taxes totaling $68,000
under the three programs. For fiscal year ended June 30, 2019 the Tigard Urban Renewal's
abated property taxes totaling $2,060 under the three programs.
FY 2019 Taxes Abated
Tigard Urban
Tax Abatement Program City of Tigard Renewal
Enterprise Zone $ 12,000 $ 360
Non-Profit Low Income Housing Limited Tax Exemption 34,000 1,000
Vertical Housing Development Zone 22,000 700
Total $ 68,000 $ 2,060
12.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 20.57 percent of sewer service charges collected, 3.98 percent of sewer connection
charges collected and 75 percent of stormwater service charges collected, in accordance with
an agreement between the city and Clean Water Services. During fiscal year 2019 the city paid
$13,914,368 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.
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City of Tigard, Oregon
Notes to Basic Financial Statements
Revenues are reported net because the city acts in a fiduciary capacity on behalf of Clean
Water Services.
13. 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
liability risks with nominal deductibles. Employee injuries are insured through SAIF, the State
Accident Insurance Fund. 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.
14.Joint Venture
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
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.
113
City of Tigard, Oregon
Notes to Basic Financial Statements
The following percentages were in effect at June 30, 2019:
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 investment in joint venture is recorded at cost in the Water Fund, and the city's share of
the annual net income or loss is used to adjust the ending balance of the city's equity interest
in the joint venture. Financial statements for the WIF may be obtained from Tualatin Valley
Water District, Finance Department at 1850 SW 170th Avenue, Beaverton, Oregon 97003. At
June 30, 2019 the city's investment in the WIF was:
Investment in joint venture at June 30, 2018 $ 750,239
Contributions 263,906
Loss for the year (8,440)
Investment in joint venture at June 30, 2019 $ 1,005,705
15. 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 (Partnership). The city's share of the Partnership is
estimated at approximately $132 million. The Partnership built a water system that has the
capacity to produce 38 million gallons of usable water per day (MGD). Tigard's portion is 18 of
the 38 MGD, or 47.37 percent. While the Partnership is still operating under the original
agreement, recently the cities have adopted a Lake Oswego/Tigard Water Partnership
Operations plan. The cities are also discussing a long-term governance agreement.
Assets
Upon completion of the multi-year project Lake Oswego conveyed to Tigard an undivided
proportionate interest of the supply facilities and property. The city then recorded its share of
capital assets in land, land improvements, building and improvements, water system
infrastructure and equipment. Depreciation for the depreciable assets is based on each asset's
respective useful life.
Debt
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
114
City of Tigard, Oregon
Notes to Basic Financial Statements
year 2015 for the continuing water infrastructure needs. As of June 30, 2019, the outstanding
debt amount for the project is $131,055,591.
Operating costs and future capital expense
Operating costs and future capital expenses are based on different criteria for each section of
the system:
Allocation Percentage
Water System Section Fixed Cost Variable Cost
Water treatment plant, pipe
infrastructure, raw water intake facility 47.37% Based on usage
Waluga Resivoir 51.43% Based on usage
Pipeline after Waluga Resivoir, Bonita
pump station 100.00% 100.00%
The monthly operating costs paid to Lake Oswego are based on an annual budget for fixed
costs and projected usage for variable costs. Annually, a true up is completed based on actual
usage. The city exclusively operates the Bonita pump station and therefore does not pay Lake
Oswego for those costs. For the fixed costs associated with the Waluga Reservoir, Tigard's
portion is 1.8 of the 3.5 million gallon capacity, or 51.43 percent. The revenue and expenses
associated with ongoing operations of the system are recorded within water operations.
16. Commitments
The city has entered into two contracts for pavement maintenance and rehabilitation for total
of $1,813,717, with $1,669,248 remaining at June 30, 2019. This contract will be completed
during the first half of fiscal year 2020. The city's street maintenance fee is the resource for the
pavement rehabilitation project.
The city has entered into other contracts for various services with commitments at June 30,
2019 of approximately $1,228,000. These contracts will be funded with existing resources.
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 would be recognized when it appeared probable
that the loss had been incurred and the amount could be reasonably estimated.
115
City of Tigard, Oregon
Notes to Basic Financial Statements
18. Subsequent Event
On August 29, 2019 the city entered into a financing agreement with Key Government
Finance to refinance the existing loan with US Bank, which has a balloon payment of
$780,000 due on September 2, 2019 and provide additional funding for urban renewal
projects. The existing $1.3 million loan with US Bank was made in 2014 to purchase
property on Burnham Street. As part of the new financing agreement, the city was
approved to borrow $5,149,000 to fund future urban renewal projects in addition to the
$780,000 balloon payment to US Bank for a total borrowing of$5,929,000.
At the time of the bank loan, the city and the agency entered into an Intergovernmental
Agreement (IGA) for TCDA to be obligated for the payments on the loan. The IGA states the
agency will make the payments on the bank loan to the financial institution from the tax
increment revenues. The TCDA is a blended component unit of the city.
Future projects funded under the new financing agreement include Universal Plaza, Fanno
Creek Overlook, trail lighting and a public restroom.
116
Required Supplementary
Information
118
CITY OF TIGARD,OREGON
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Taxes $ 16,132,030 $ 16,132,030 $ 16,716,747 $ 584,717
Licenses and permits 1,157,614 1,157,614 1,290,733 133,119
Intergovernmental revenues 6,308,022 6,355,272 7,219,903 864,631
Charges for services 294,055 294,055 264,272 (29,783)
Fines and forfeitures 654,498 1,069,498 682,647 (386,851)
Franchise fees 6,255,307 6,255,307 6,218,353 (36,954)
Interest earnings 103,722 103,722 823,407 719,685
Miscellaneous revenues 56,432 56,432 53,281 (3,151)
Total revenues 30,961,680 31,423,930 33,269,343 1,845,413
EXPENDITURES
Community services 23,992,971 24,353,143 21,952,061 2,401,082
Community development 3,569,242 3,584,252 3,317,805 266,447
Policy and administration 901,357 1,156,835 993,346 163,489
Total expenditures 28,463,570 29,094,230 26,263,212 2,831,018
Change in fund balance before
other financing sources(uses) 2,498,110 2,329,700 7,006,131 4,676,431
OTHER FINANCING SOURCES(USES)
Transfer in 237,070 237,070 237,070 -
Interfund loan (1,000) (341,000) (183,273) 157,727
Transfer out (2,827,416) (3,360,186) (3,119,799) 240,387
Contingency (1,285,000) (459,120) - 459,120
Reserve for future expenditures (13,390,375) (13,390,375) - 13,390,375
Total other financing(uses) (17,266,721) (17,313,611) (3,066,002) 14,247,609
Change in fund balance (14,768,611) (14,983,911) 3,940,129 18,924,040
Fund balance-beginning of the year 14,768,611 14,983,911 19,407,186 4,423,275
Fund balance-end of the year $ - $ - $ 23,347,315 $ 23,347,315
119
City of Tigard Oregon
Schedule of the City's Proportionate Share of the Net Pension Liability(Asset)
Oregon Public Employees Retirement System
Last Six Fiscal Years 1,2
2019 2018 2017 2016 2015 2014
City's proportion of the net pension liability
(asset) 0.073322% 0.072960% 0.074719% 0.081488% 0.074022% 0.074022%
City's proportionate share of the net pension
liability(asset) $ 11,107,323 $ 9,835,041 $ 11,216,998 $ 4,678,602 $ (1,677,869) $ 3,777,455
City's covered payroll $ 5,941,342 $ 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 186.95% 156.60% 169.70% 75.62% -27.84% 69.61%
Plan fiduciary net position as a percentage of
the total pension liability 82.07% 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 2019 is July 1,2017-June 30,2018.
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.
On July 28,2017,the OPERS Board lowered the assumed earnings rate from 7.50 percent to 7.20 percent.The new assumed earnings rate
affected rates on July 1,2018.
120
City of Tigard,Oregon
Schedule of the City's Contributions
Oregon Public Employees Retirement System
Last Six Fiscal Years 1
2019 2018 2017 2016 2015 2014
Contractually required
contributions $ 1,039,691 $ 937,027 $ 787,306 $ 761,228 $ 782,812 $ 722,108
Contributions in relation to the
contractually required
contribution (1,039,691) (937,027) (787,306) (761,228) (782,812) (722,108)
Contribution deficiency(excess) $ - $ - $ - $ - $ - $ -
City's covered payroll $ 6,331,572 $ 5,941,342 $ 6,280,408 $ 6,610,002 $ 6,187,208 $ 6,025,900
Contributions as a percentage
of covered payroll 16.42% 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 31,2016 December 31,2015 December 31,2013 December 31,2011
Effective July 2018-June 2019 July 2017-June 2018 July 2015-June 2017 July 2013-June 2015
Actuarial cost method: Entry Age Normal Entry Age Normal Entry Age Normal Projected Unit Credit
Actuarial valuation method: Market Value Market Value Market Value Market Value
Actuarial assumption:
Inflation rate 2.50 Percent 2.50 Percent 2.75 percent 2.75 percent
Projected salary increases 3.50 percent 3.50 percent 3.75 percent 3.75 percent
Investment rate of return 7.20 percent 7.50 percent 7.75 percent 8.00 percent
121
City of Tigard, Oregon
Schedule of the Changes in the City's Total OPEB Liability and Related Ratios
Implicit Rate Subsidy Plan
Last Two Fiscal Years 1,2
2019 2018
Total OPEB Liability(in 1,000s)
Service cost $ 117 $ 100
Interest 54 43
Changes in benefit terms - -
Economic/demographic losses 15 -
Changes of assumptions or other inputs (292) (96)
Benefit payments (49) (59)
Net change in OPEB liability (155) (12)
Total OPEB Liability- beginning 1,423 1,435
Total OPEB Liability- ending 1,268 1,423
Covered-employee payroll 21,705 21,438
Total OBEP Liability as a % of covered payroll 5.84% 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 2019 is July 1, 2017 -June 30, 2018
122
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 Three Fiscal Years 1'2
2019 2018 2017
City's proportion of the net OPEB
liability (asset) 0.0579% 0.0613% 0.0675%
City's proportionate share of the net
OPEB liability (asset) $ (64,649) $ (25,563) $ 18,323
City's covered payroll $ 5,941,342 $ 6,280,408 $ 6,610,002
City's proportionate share of the net
OPEB liability (asset) as a percentage
of its covered payroll -1.1% -0.4% 0.3%
Plan fiduciary net position as a
percentage of the total OPEB liability 124.0% 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 2019
is July 1, 2017 -June 30, 2018
123
City of Tigard,Oregon
Schedule of the City's Contributions
Oregon Public Employees Retirement System,Retirement Health Insurance Account
Last Three Fiscal Years 1
2019 2018 2017
Contractually required contributions $ 30,103 $ 29,366 $ 31,820
Contributions in relation to the contractually
required contribution (30,103) (29,366) (31,820)
Contribution deficiency(excess) $ - $ - $ -
City's covered payroll $ 6,331,572 $ 5,941,342 $ 6,280,408
Contributions as a percentage of covered payroll 0.48% 0.49% 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 31,2016 December 31,2015 December 31,2013
Effective July 2018-June 2019 July 2017-June 2018 July 2015-June 2017
Actuarial cost method: Entry Age Normal Entry Age Normal Entry Age Normal
Actuarial valuation method: Market Value Market Value Market Value
Actuarial assumption:
Inflation rate 2.50 percent 2.50 percent 2.75 percent
Projected salary increases 3.50 percent 3.50 percent 3.75 percent
Investment rate of return 7.20 percent 7.50 percent 7.75 percent
124
Other Supplementary
Information
125
126
CITY OF TIGARD,OREGON
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30,2019
Special Debt Service Capital Project
Revenue Funds Funds Funds Total
ASSETS
Cash and investments $ 1,437,539 $ - $ 3,067,288 $ 4,504,827
Accounts receivable 999,866 - 370,284 1,370,150
Property taxes receivable - 47,832 - 47,832
Assessment liens receivable - 259,895 - 259,895
Interest receivable - 7,574 - 7,574
Restricted cash and investments 18,759,087 2,185,976 9,482,783 30,427,846
Total assets $ 21,214,052 $ 2,501,277 $ 12,920,355 $ 36,635,684
LIABILITIES
Accounts payable and accrued liabilities $ 809,758 $ - $ 282,946 $ 1,092,704
Deposits 999,600 - - 999,600
Due to others 201,535 - - 201,535
Advances from other funds - - - -
Unearned revenue 50,000 - - 50,000
Total liabilities 2,060,893 - 282,946 2,343,839
DEFERRED INFLOWS OF RESOURCES
Resources not yet available:
Property taxes - 33,119 - 33,119
Transportation refund credits 23,295 - - 23,295
Special assessment liens - 259,895 70,452 330,347
Total deferred inflows of resources 23,295 293,014 70,452 386,761
FUND BALANCES
Restricted for:
Street maintenance and improvements 6,327,780 - 7,588,683 13,916,463
Tourism 519,802 - - 519,802
Debt service - 2,208,263 - 2,208,263
Park development and improvements - - 1,163,893 1,163,893
Underground utilities - - 449,549 449,549
Building inspection 8,850,454 - - 8,850,454
Police services 327,964 - - 327,964
Library improvements 590,078 - - 590,078
Urban development and improvements - - 147,164 147,164
Committed for:
Street maintenance and improvements - - 2,287,747 2,287,747
Urban forestry 1,037,488 - - 1,037,488
Assigned to:
City facilities - - 929,921 929,921
Park and recreation 1,458,738 - - 1,458,738
Total fund balances 19,129,864 2,208,263 12,566,957 33,905,084
Total liabilities,deferred inflows of
resources and fund balances $ 21,214,052 $ 2,501,277 $ 12,920,355 $ 36,635,684
127
CITY OF TIGARD,OREGON
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
for the year ended June 30,2019
Special Debt Service Capital Project
Revenue Funds Funds Funds Total
REVENUES
Taxes $ 6,498,650 $ 2,921,988 $ - $ 9,420,638
Special assessments - 59,999 - 59,999
Licenses and permits 3,887,323 - - 3,887,323
Intergovernmental revenues 34,678 - 1,188,549 1,223,227
Charges for services 1,395,555 - 2,955,738 4,351,293
System development charges - - 701,855 701,855
Rental revenues - - 107,371 107,371
Fines and forfeitures 160,453 - - 160,453
Interest earnings 478,572 89,927 316,856 885,355
Miscellaneous revenues 96,380 - 107,801 204,181
Total revenues 12,551,611 3,071,914 5,378,170 21,001,695
EXPENDITURES
Community services 99,470 - - 99,470
Public works 6,105,157 - - 6,105,157
Community development 1,630,514 - 323,856 1,954,370
Debt service:
Principal 800,000 1,730,800 - 2,530,800
Interest 70,688 728,958 - 799,646
Capital outlay - - 6,339,699 6,339,699
Total expenditures 8,705,829 2,459,758 6,663,555 17,829,142
Changes in fund balance before
other financing sources(uses) 3,845,782 612,156 (1,285,385) 3,172,553
OTHER FINANCING SOURCES(USES)
Transfer in 2,994,053 - 2,604,126 5,598,179
Transfer out (1,758,351) (187,706) (1,421,558) (3,367,615)
Debt proceeds - - 183,273 183,273
Total other financing sources(uses) 1,235,702 (187,706) 1,365,841 2,413,837
Changes in fund balance 5,081,484 424,450 80,456 5,586,390
Fund Balance-Beginning of the year 14,048,380 1,783,813 12,486,501 28,318,694
Fund Balance-End of the year $ 19,129,864 $ 2,208,263 $ 12,566,957 $ 33,905,084
128
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.
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.
City Gas Tax Fund–This fund accounts for revenues generated from Tigard's local gas tax and
funds projects for transportation improvements.
Transient Lodging Tax Fund–This fund accounts for revenues generated from Tigard's local
hotel/motel tax and funds projects to promote tourism.
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.
129
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131
CITY OF TIGARD,OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
June 30,2019
City Gas Transient Electrical
Gas Tax Tax Lodging Tax Inspection
Fund Fund Fund Fund
ASSETS
Cash and investments $ - $ - $ - $ -
Accounts receivable 566,463 164,827 79,607 3,033
Restricted cash and investments 4,173,424 2,021,610 440,195 399,767
Total assets $ 4,739,887 $ 2,186,437 $ 519,802 $ 402,800
LIABILITIES
Accounts payable $ 206,216 $ - $ - $ -
Due to others - - - 603
Deposits 369,033 - - 24,702
Unearned revenue - - -
Total liabilities 575,249 - - 25,305
DEFERRED INFLOWS OF RESOURCES
Transportation refund credits 15,263 8,032 - -
FUND BALANCE
Restricted for:
Street maintenance and improvements 4,149,375 2,178,405 - -
Tourism - - 519,802 -
Building inspection - - - 377,495
Police services - - - -
Library improvements - - - -
Committed for:
Urban forestry - - - -
Assigned for:
Park and recreation - - - -
Total fund balances 4,149,375 2,178,405 519,802 377,495
Total liabilities and fund
balances $ 4,739,887 $ 2,186,437 $ 519,802 $ 402,800
132
Criminal Urban Parks
Building Forfeiture Forestry Utility Library
Fund Fund Fund Fund Fund Total
$ - $ - $ - $ 1,437,539 $ - $ 1,437,539
4,729 - 1,345 179,451 411 999,866
9,078,945 390,162 1,615,317 - 639,667 18,759,087
$ 9,101,234 $ 390,162 $ 1,616,662 $ 1,616,990 $ 640,078 $ 21,214,052
$ 438,391 $ 6,899 $ - $ 158,252 $ - $ 809,758
145,633 55,299 - - - 201,535
26,691 - 579,174 - - 999,600
- - - - 50,000 50,000
610,715 62,198 579,174 158,252 50,000 2,060,893
- - - - - 23,295
- - - - - 6,327,780
- - - - - 519,802
8,472,959 - - - - 8,850,454
- 327,964 - - - 327,964
- - - - 590,078 590,078
- - 1,037,488 - - 1,037,488
- - - 1,458,738 - 1,458,738
8,490,519 327,964 1,037,488 1,458,738 590,078 19,129,864
$ 9,101,234 $ 390,162 $ 1,616,662 $ 1,616,990 $ 640,078 $ 21,214,052
133
CITY OF TIGARD,OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
for the year ended June 30,2019
City Gas Transient Electrical
Gas Tax Tax Lodging Tax Inspection
Fund Fund Fund Fund
REVENUES
Gas tax $ 4,860,112 $ - $ - $ -
City gas tax - 888,913 - -
Hotel/Motel tax - - 749,625 -
Licenses and permits 44,660 - - 305,825
Charges for services - - - -
Intergovernmental revenues - - - -
Fines and forfeitures - - - -
Tree replacement revenue - - - -
Interest earnings 106,169 59,136 9,747 11,125
Miscellaneous revenues 70,145 11,792 - -
Total revenues 5,081,086 959,841 759,372 316,950
EXPENDITURES
Community services - - - -
Public works 2,843,299 - - -
Debt service:
Principal 524,138 275,862 - -
Interest 46,313 24,375 - -
Total expenditures 3,413,750 300,237 - -
Changes in fund balance
before other financing
sources(uses) 1,667,336 659,604 759,372 316,950
OTHER FINANCING SOURCES(USES)
Transfer in 150,000 - - -
Transfer out (867,655) (155,580) (239,570) (250,000)
Total other financing
sources(uses) (717,655) (155,580) (239,570) (250,000)
Changes in fund balance 949,681 504,024 519,802 66,950
Fund balance-Beginning of the year 3,199,694 1,674,381 - 310,545
Fund balance-End of the year $ 4,149,375 $ 2,178,405 $ 519,802 $ 377,495
134
Criminal Urban Parks
Building Forfeiture Forestry Utility Library
Fund Fund Fund Fund Fund Total
$ - $ - $ - $ - $ - $ 4,860,112
- - - - - 888,913
- - - - - 749,625
3,536,838 - - - - 3,887,323
- - - 1,388,909 - 1,388,909
34,678 - - - - 34,678
- 160,453 - - - 160,453
- - 6,646 - - 6,646
224,016 888 43,335 8,777 15,379 478,572
6,242 - - 8,201 - 96,380
3,801,774 161,341 49,981 1,405,887 15,379 12,551,611
- 99,470 - - - 99,470
- - - 3,261,858 - 6,105,157
- - - - - 800,000
- - - - - 70,688
1,630,514 99,470 - 3,261,858 - 8,705,829
2,171,260 61,871 49,981 (1,855,971) 15,379 3,845,782
250,000 - - 2,594,053 - 2,994,053
- - (141,946) (103,600) - (1,758,351)
250,000 - (141,946) 2,490,453 - 1,235,702
2,421,260 61,871 (91,965) 634,482 15,379 5,081,484
6,069,259 266,093 1,129,453 824,256 574,699 14,048,380
$ 8,490,519 $ 327,964 $ 1,037,488 $ 1,458,738 $ 590,078 $ 19,129,864
135
CITY OF TIGARD,OREGON
GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
State gas tax $ 3,134,705 $ 3,134,705 $ 3,802,505 $ 667,800
County gas tax 195,343 215,343 1,057,607 842,264
Licenses and permits 68,974 68,974 44,660 (24,314)
Intergovernmental revenues - 20,000 - (20,000)
Interest earnings 55,732 55,732 106,169 50,437
Miscellaneous revenues 62,818 62,818 70,145 7,327
Total revenues 3,517,572 3,557,572 5,081,086 1,523,514
EXPENDITURES
Public works 3,198,468 3,285,468 2,843,299 442,169
*Debt service:
Principal 525,000 525,000 524,138 862
Interest 50,000 50,000 46,313 3,687
Total expenditures 3,773,468 3,860,468 3,413,750 446,718
Change in fund balance before
other financing sources(uses) (255,896) (302,896) 1,667,336 1,970,232
OTHER FINANCING SOURCES(USES)
Transfer in 150,000 150,000 150,000 -
Transfer out (1,308,100) (1,372,100) (867,655) 504,445
Contingency (200,000) (148,000) - 148,000
Reserve for future expenditures (401,063) (401,063) - 401,063
Total other financing(uses) (1,759,163) (1,771,163) (717,655) 1,053,508
Change in fund balance (2,015,059) (2,074,059) 949,681 3,023,740
Fund balance-Beginning of the year 2,015,059 2,074,059 3,199,694 1,125,635
Fund balance-End of the year $ - $ - $ 4,149,375 $ 4,149,375
* Budget appropriation is made at the debt service program level
136
CITY OF TIGARD,OREGON
CITY GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
City gas tax $ 619,511 $ 619,511 $ 888,913 $ 269,402
Interest earnings 34,584 34,584 59,136 24,552
Miscellaneous revenues 32,052 32,052 11,792 (20,260)
Total revenues 686,147 686,147 959,841 273,694
EXPENDITURES
*Debt service:
Principal 280,000 280,000 275,862 4,138
Interest 26,000 26,000 24,375 1,625
Total expenditures 306,000 306,000 300,237 5,763
Changes in fund balance before
other financing sources(uses) 380,147 380,147 659,604 279,457
OTHER FINANCING SOURCES(USES)
Transfer out (295,000) (295,000) (155,580) 139,420
Contingency (300,000) (300,000) - 300,000
Reserve for future expenditures (1,016,824) (1,016,824) - 1,016,824
Total other financing sources(uses) (1,611,824) (1,611,824) (155,580) 1,456,244
Change in fund balance (1,231,677) (1,231,677) 504,024 1,735,701
Fund balance-Beginning of the year 1,231,677 1,231,677 1,674,381 442,704
Fund balance-End of the year $ - $ - $ 2,178,405 $ 2,178,405
* Budget appropriation is made at the debt service program level
137
CITY OF TIGARD,OREGON
TRANSIENT LODGING TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Hotel/Motel tax $ 644,000 $ 644,000 $ 749,625 $ 105,625
Interest earnings - - 9,747 9,747
Total revenues 644,000 644,000 759,372 115,372
OTHER FINANCING SOURCES(USES)
Transfer out (237,070) (272,070) (239,570) 32,500
Contingency (450,000) (415,000) - 415,000
Reserve for future expenditures (286,930) (286,930) - 286,930
Total other financing sources(uses) (974,000) (974,000) (239,570) 734,430
Change in fund balance (330,000) (330,000) 519,802 849,802
Fund balance-Beginning of the year 330,000 330,000 - (330,000)
Fund balance-End of the year $ - $ - $ 519,802 $ 519,802
138
CITY OF TIGARD,OREGON
ELECTRICAL INSPECTION FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Licenses and permits $ 243,397 $ 243,397 $ 305,825 $ 62,428
Interest earnings 1,207 1,207 11,125 9,918
Total revenues 244,604 244,604 316,950 72,346
OTHER FINANCING(USES)
Transfer out (250,000) (250,000) (250,000) -
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (315,780) (315,780) - 315,780
Total other financing(uses) (615,780) (615,780) (250,000) 365,780
Change in fund balance (371,176) (371,176) 66,950 438,126
Fund balance-Beginning of the year 371,176 371,176 310,545 (60,631)
Fund balance-End of the year $ - $ - $ 377,495 $ 377,495
139
CITY OF TIGARD,OREGON
BUILDING FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Licenses and permits $ 2,409,484 $ 2,409,484 $ 3,536,838 $ 1,127,354
Intergovernmental revenues 8,281 8,281 34,678 26,397
Interest earnings 19,782 19,782 224,016 204,234
Miscellaneous revenues 7,967 7,967 6,242 (1,725)
Total revenues 2,445,514 2,445,514 3,801,774 1,356,260
EXPENDITURES
Community development 1,714,237 1,785,567 1,630,514 155,053
Change in fund balance before
other financing sources(uses) 731,277 659,947 2,171,260 1,511,313
OTHER FINANCING SOURCES(USES)
Transfer in 250,000 250,000 250,000 -
Contingency (250,000) (178,670) - 178,670
Reserve for future expenditures (6,540,770) (6,540,770) - 6,540,770
Total other financing sources(uses) (6,540,770) (6,469,440) 250,000 6,719,440
Change in fund balance (5,809,493) (5,809,493) 2,421,260 8,230,753
Fund balance-Beginning of the year 5,809,493 5,809,493 6,069,259 259,766
Fund balance-End of the year $ - $ - $ 8,490,519 $ 8,490,519
140
CITY OF TIGARD,OREGON
CRIMINAL FORFEITURE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 1,892 $ 1,892 $ 888 $ (1,004)
Forfeitures 43,459 43,459 160,453 116,994
Total revenues 45,351 45,351 161,341 115,990
EXPENDITURES
Community services 150,893 150,893 99,470 51,423
Change in fund balance before
other financing sources(uses) (105,542) (105,542) 61,871 167,413
OTHER FINANCING SOURCES(USES)
Reserve for future expenditures (11,831) (11,831) - 11,831
Total other financing sources(uses) (11,831) (11,831) - 11,831
Change in fund balance (117,373) (117,373) 61,871 179,244
Fund balance-Beginning of the year 117,373 117,373 266,093 148,720
Fund balance-End of the year $ - $ - $ 327,964 $ 327,964
141
CITY OF TIGARD,OREGON
URBAN FORESTRY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Tree replacement revenue $ 27,891 $ 27,891 $ 6,646 $ (21,245)
Interest earnings 4,060 4,060 43,335 39,275
Total revenues 31,951 31,951 49,981 18,030
OTHER FINANCING SOURCES(USES)
Transfer out (150,000) (175,000) (141,946) 33,054
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (901,769) (901,769) - 901,769
Total other financing sources(uses) (1,101,769) (1,126,769) (141,946) 984,823
Change in fund balance (1,069,818) (1,094,818) (91,965) 1,002,853
Fund balance-Beginning of the year 1,069,818 1,094,818 1,129,453 34,635
Fund balance-End of the year $ - $ - $ 1,037,488 $ 1,037,488
142
CITY OF TIGARD,OREGON
PARKS UTILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 1,042,600 $ 1,067,900 $ 1,388,909 $ 321,009
Interest earnings 500 500 8,777 8,277
Miscellaneous revenues - - 8,201 8,201
Total revenues 1,043,100 1,068,400 1,405,887 337,487
EXPENDITURES
Public works 3,504,538 3,530,108 3,261,858 268,250
Change in fund balance before
other financing sources(uses) (2,461,438) (2,461,708) (1,855,971) 605,737
OTHER FINANCING SOURCES(USES)
Transfer in 2,682,100 2,682,370 2,594,053 (88,317)
Transfer out (103,600) (106,858) (103,600) 3,258
Contingency (100,000) (96,742) - 96,742
Reserve for future expenditures (842,189) (842,189) - 842,189
Total other financing sources(uses) 1,636,311 1,636,581 2,490,453 853,872
Change in fund balance (825,127) (825,127) 634,482 1,459,609
Fund balance-Beginning of the year 825,127 825,127 824,256 (871)
Fund balance-End of the year $ - $ - $ 1,458,738 $ 1,458,738
143
CITY OF TIGARD,OREGON
LIBRARY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES:
Interest earnings $ 1,000 $ 1,000 $ 15,379 $ 14,379
OTHER FINANCING SOURCES(USES)
Transfer out (100,000) (100,000) - 100,000
Reserve for future expenditures (284,966) (284,966) - 284,966
Total other financing sources(uses) (384,966) (384,966) - 384,966
Change in fund balance (383,966) (383,966) 15,379 399,345
Fund balance-Beginning of the year 383,966 383,966 574,699 190,733
Fund balance-End of the year $ - $ - $ 590,078 $ 590,078
144
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.
City Center Urban Renewal Debt Service Fund –This fund accounts for principal and interest payments
on debt for the City Center Urban Renewal Area and transfers to the City Center Capital Improvement
Fund. Revenues are from property taxes and interest earnings.
Tigard Triangle Debt Service Fund –This fund accounts for principal and interest payments on debt for
the Tigard Triangle Urban Renewal Area and transfers to the Tigard Triangle Improvement Fund.
Revenues are from property taxes and interest earnings.
145
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147
CITY OF TIGARD,OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
June 30,2019
Bancroft Bond General City Center Urban
Debt Service Obligation Debt Renewal Debt
Fund Service Fund Service Fund
ASSETS
Property taxes receivable $ - $ 39,678 $ 8,154
Assessment liens receivable 259,895 - -
Interest receivable - 6,300 1,274
Restricted cash and investments 67,982 1,491,388 626,606
Total assets $ 327,877 $ 1,537,366 $ 636,034
DEFERRED INFLOWS OF RESOURCES
Resources not yet available:
Special assessments/liens $ 259,895 $ - $ -
Property taxes - 26,397 6,722
Total deferred inflows of resources 259,895 26,397 6,722
FUND BALANCES
Restricted for debt service 67,982 1,510,969 629,312
Total deferred inflows of
resources and fund balances $ 327,877 $ 1,537,366 $ 636,034
148
Tigard Triangle
Debt Service
Fund Total
$ - $ 47,832
- 259,895
- 7,574
- 2,185,976
$ - $ 2,501,277
$ - $ 259,895
33,119
- 293,014
- 2,208,263
$ - $ 2,501,277
149
CITY OF TIGARD,OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
for the year ended June 30,2019
Bancroft Bond General City Center Urban
Debt Service Obligation Debt Renewal Debt
Fund Service Fund Service Fund
REVENUES
Taxes $ - $ 2,400,938 $ 521,050
Collection of bonded assessments 59,999 - -
Interest earnings 29,269 44,526 16,132
Total revenues 89,268 2,445,464 537,182
EXPENDITURES
Debt service:
Principal 95,800 1,505,000 130,000
Interest 7,347 692,625 28,986
Total expenditures 103,147 2,197,625 158,986
Change in fund balance before
other financing sources(uses) (13,879) 247,839 378,196
OTHER FINANCING SOURCES(USES)
Transfer out - - (187,706)
Change in fund balance (13,879) 247,839 190,490
Fund balance-Beginning of the year 81,861 1,263,130 438,822
Fund balance-End of the year $ 67,982 $ 1,510,969 $ 629,312
150
Tigard Triangle
Debt Service
Fund Total
$ - $ 2,921,988
- 59,999
- 89,927
- 3,071,914
- 1,730,800
- 728,958
- 2,459,758
- 612,156
(187,706)
- 424,450
1,783,813
$ - $ 2,208,263
151
CITY OF TIGARD,OREGON
BANCROFT BOND DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Collection of bonded assessments $ 60,000 $ 60,000 $ 59,999 $ (1)
Interest earnings 10,000 10,000 29,269 19,269
Total revenues 70,000 70,000 89,268 19,268
EXPENDITURES
*Debt service:
Principal 95,000 95,000 95,800 (800)
Interest 12,000 12,000 7,347 4,653
Total expenditures 107,000 107,000 103,147 3,853
Change in fund balance before
other financing sources(uses) (37,000) (37,000) (13,879) 23,121
OTHER FINANCING SOURCES(USES)
Reserve for future expenditures (22,130) (22,130) - 22,130
Total other financing sources(uses) (22,130) (22,130) - 22,130
Change in fund balance (59,130) (59,130) (13,879) 45,251
Fund balance-Beginning of the year 59,130 59,130 81,861 22,731
Fund balance-End of the year $ - $ - $ 67,982 $ 67,982
152
CITY OF TIGARD,OREGON
GENERAL OBLIGATION DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Taxes $ 2,212,005 $ 2,212,005 $ 2,400,938 $ 188,933
Interest earnings 4,612 4,612 44,526 39,914
Total revenues 2,216,617 2,216,617 2,445,464 228,847
EXPENDITURES
Debt service:
Principal 1,510,000 1,510,000 1,505,000 5,000
Interest 715,000 715,000 692,625 22,375
Total expenditures 2,225,000 2,225,000 2,197,625 27,375
Change in fund balance before
other financing sources(uses) (8,383) (8,383) 247,839 256,222
OTHER FINANCING SOURCES(USES)
Reserve for future expenditures (1,090,790) (1,090,790) - 1,090,790
Total other financing sources(uses) (1,090,790) (1,090,790) - 1,090,790
Change in fund balance (1,099,173) (1,099,173) 247,839 1,347,012
Fund balance-Beginning of the year 1,099,173 1,099,173 1,263,130 163,957
Fund balance-End of the year $ - $ - $ 1,510,969 $ 1,510,969
153
CITY OF TIGARD,OREGON
CITY CENTER URBAN RENEWAL DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Property taxes $ 492,519 $ 492,519 $ 521,050 $ 28,531
Interest earnings 1,500 1,500 16,132 14,632
Total revenues 494,019 494,019 537,182 43,163
EXPENDITURES
Debt service:
Principal 133,500 133,500 130,000 3,500
Interest 29,052 29,052 28,986 66
Total expenditures 162,552 162,552 158,986 3,566
Change in fund balance before
other financing sources(uses) 331,467 331,467 378,196 46,729
OTHER FINANCING SOURCES(USES)
Transfer out (306,000) (366,500) (187,706) 178,794
Reserve for future expenditure (189,467) (189,467) - 189,467
Total other financing sources(uses) (495,467) (555,967) (187,706) 368,261
Change in fund balance (164,000) (224,500) 190,490 414,990
Fund balance-Beginning of the year 164,000 224,500 438,822 214,322
Fund balance-End of the year $ - $ - $ 629,312 $ 629,312
154
CITY OF TIGARD,OREGON
TIGARD TRIANGLE DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Property taxes $ 382,689 $ 382,689 $ - $ (382,689)
Change in fund balance before
other financing sources(uses) 382,689 382,689 - (382,689)
OTHER FINANCING SOURCES(USES)
Transfers out (350,950) (350,950) - 350,950
Reserve for future expenditure (31,739) (31,739) - 31,739
Total other financing sources(uses) (382,689) (382,689) - 382,689
Change in fund balance - - - -
Fund balance-Beginning of the year - - - -
Fund balance-End of the year $ - $ - $ - $ -
155
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156
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.
City Center 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 City Center
Urban Renewal Debt Service Fund.
Tigard Triangle Improvement Fund –This fund was established in FY 2016-17 for the creation of a new
urban renewal agency to improve the Tigard Triangle area. Expenses are for capital improvements
within the urban renewal plan. Resources are from financing proceeds or transfers in from the Tigard
Triangle 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.
157
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159
CITY OF TIGARD,OREGON
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
June 30,2019
Underground Street Transportation
Facility Utility Maintenance SDC
Fund Fund Fee Fund Fund
ASSETS
Cash and investments $ 954,598 $ - $ 2,112,690 $ -
Accounts receivable 731 363 353,348 3,335
Restricted cash and investments - 449,186 - 7,585,348
Total assets $ 955,329 $ 449,549 $ 2,466,038 $ 7,588,683
LIABILITIES
Accounts payable and accrued liabilities $ 25,408 $ - $ 178,291 $ -
DEFERRED INFLOWS OF RESOURCES
Special assessments/liens - - - -
FUND BALANCES(DEFICIT)
Restricted for:
Street maintenance and improvements - - - 7,588,683
Park development and improvements - - - -
Underground utilities - 449,549 - -
Urban development and improvements - - - -
Committed for:
Street maintenance and improvements - - 2,287,747 -
Assigned to:
City facilities 929,921 - - -
Total fund balances 929,921 449,549 2,287,747 7,588,683
Total liabilities,deferred inflows of
resources and fund balance $ 955,329 $ 449,549 $ 2,466,038 $ 7,588,683
160
Parks Parks City Center Captial Tigard Triangle
Capital Bond Improvement Improvement
Fund Fund Fund Fund Total
$ - $ - $ - $ - $ 3,067,288
12,507 - - - 370,284
460,564 807,401 149,992 30,292 9,482,783
$ 473,071 $ 807,401 $ 149,992 $ 30,292 $ 12,920,355
$ 46,127 $ - $ 2,828 $ 30,292 $ 282,946
70,452 - - - 70,452
7,588,683
356,492 807,401 - - 1,163,893
- - 449,549
-
147,164 - 147,164
- - 2,287,747
- - 929,921
356,492 807,401 147,164 - 12,566,957
$ 473,071 $ 807,401 $ 149,992 $ 30,292 $ 12,920,355
161
CITY OF TIGARD,OREGON
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
for the year ended June 30,2019
Underground Street Transportation
Facility Utility Maintenance SDC
Fund Fund Fee Fund Fund
REVENUES
Charges for services $ - $ 78,010 $ 2,877,728 $ -
System development charges - - - 701,855
Intergovernmental revenues - - - -
Rental revenues - - - -
Interest earnings 20,239 10,693 40,182 214,756
Miscellaneous revenues 202 - 61,878 -
Total revenues 20,441 88,703 2,979,788 916,611
EXPENDITURES
Community development - - - -
Capital projects 341,355 - 2,381,411 -
Total expenditures 341,355 - 2,381,411 -
Change in fund balance before
other financing sources(uses) (320,914) 88,703 598,377 916,611
OTHER FINANCING SOURCES(USES)
Transfer in 336,873 - - -
Transfer out - (1,740) (488,907) (109,845)
Debt proceeds - - - -
Total other financing sources(uses) 336,873 (1,740) (488,907) (109,845)
Change in fund balance 15,959 86,963 109,470 806,766
Fund balance-Beginning of the year 913,962 362,586 2,178,277 6,781,917
Fund balance-End of the year $ 929,921 $ 449,549 $ 2,287,747 $ 7,588,683
162
Parks Parks City Center Captial Tigard Triangle
Capital Bond Improvement Improvement
Fund Fund Fund Fund Total
$ - $ - $ - $ - $ 2,955,738
- - 701,855
1,174,200 - 4,349 10,000 1,188,549
-
-
107,371 - 107,371
30,936 50 - 316,856
43,281 - 2,440 - 107,801
1,217,481 30,936 114,210 10,000 5,378,170
-
-
130,583 193,273 323,856
3,559,809 - 57,124 - 6,339,699
3,559,809 - 187,707 193,273 6,663,555
(2,342,328) 30,936 (73,497) (183,273) (1,285,385)
2,079,547 - 187,706 - 2,604,126
(821,066) - - (1,421,558)
- - - 183,273 183,273
2,079,547 (821,066) 187,706 183,273 1,365,841
(262,781) (790,130) 114,209 - 80,456
619,273 1,597,531 32,955 - 12,486,501
$ 356,492 $ 807,401 $ 147,164 $ - $ 12,566,957
163
CITY OF TIGARD,OREGON
FACILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 3,212 $ 3,212 $ 20,239 $ 17,027
Miscellaneous revenues - - 202 202
Total revenues 3,212 3,212 20,441 17,229
EXPENDITURES
Capital projects 120,000 470,000 341,355 128,645
Change in fund balance before
other financing sources(uses) (116,788) (466,788) (320,914) 145,874
OTHER FINANCING SOURCES(USES)
Transfer in 100,000 450,000 336,873 (113,127)
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (958,199) (958,199) - 958,199
Total other financing sources(uses) (908,199) (558,199) 336,873 895,072
Change in fund balance (1,024,987) (1,024,987) 15,959 1,040,946
Fund balance-Beginning of the year 1,024,987 1,024,987 913,962 (111,025)
Fund balance-End of the year $ - $ - $ 929,921 $ 929,921
164
CITY OF TIGARD,OREGON
UNDERGROUND UTILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 124,817 $ 124,817 $ 78,010 $ (46,807)
Interest earnings 7,160 7,160 10,693 3,533
Total revenues 131,977 131,977 88,703 (43,274)
OTHER FINANCING SOURCES(USES)
Transfer out (21,635) (21,635) (1,740) 19,895
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (228,916) (228,916) - 228,916
Total other financing uses (300,551) (300,551) (1,740) 298,811
Change in fund balance (168,574) (168,574) 86,963 255,537
Fund balance-Beginning of the year 168,574 168,574 362,586 194,012
Fund balance-End of the year $ - $ - $ 449,549 $ 449,549
165
CITY OF TIGARD,OREGON
STREET MAINTENANCE FEE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,993,611 $ 2,993,611 $ 2,877,728 $ (115,883)
Interest earnings 2,043 2,043 40,182 38,139
Miscellaneous revenues 1,299 1,299 61,878 60,579
Total revenues 2,996,953 2,996,953 2,979,788 (17,165)
EXPENDITURES
Capital projects 2,800,000 2,800,000 2,381,411 418,589
Change in fund balance before
other financing sources(uses) 196,953 196,953 598,377 401,424
OTHER FINANCING SOURCES(USES)
Transfer out (488,907) (492,154) (488,907) 3,247
Contingency (200,000) (196,753) - 196,753
Reserve for future expenditures (1,865,651) (1,865,651) - 1,865,651
Total other financing sources(uses) (2,554,558) (2,554,558) (488,907) 2,065,651
Change in fund balance (2,357,605) (2,357,605) 109,470 2,467,075
Fund balance-Beginning of the year 2,357,605 2,357,605 2,178,277 (179,328)
Fund balance-End of the year $ - $ - $ 2,287,747 $ 2,287,747
166
CITY OF TIGARD,OREGON
TRANSPORTATION SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
System development charges $ 855,540 $ 855,540 $ 701,855 $ (153,685)
Interest earnings 500 500 214,756 214,256
Total revenues 856,040 856,040 916,611 60,571
OTHER FINANCING SOURCES(USES)
Transfer out (100,000) (201,406) (109,845) 91,561
Contingency (50,000) (30,000) - 30,000
Reserve for future expenditures (5,792,842) (5,792,842) - 5,792,842
Total other financing sources(uses) (5,942,842) (6,024,248) (109,845) 5,914,403
Change in fund balance (5,086,802) (5,168,208) 806,766 5,974,974
Fund balance-Beginning of the year 5,086,802 5,168,208 6,781,917 1,613,709
Fund balance-End of the year $ - $ - $ 7,588,683 $ 7,588,683
167
CITY OF TIGARD,OREGON
PARKS CAPITAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental revenues $ 2,002,398 $ 2,175,398 $ 1,174,200 $ (1,001,198)
Interest earnings 3,015 3,015 - (3,015)
Miscellaneous revenues - - 43,281 43,281
Total revenues 2,005,413 2,178,413 1,217,481 (960,932)
EXPENDITURES
Capital projects 5,988,500 7,444,200 3,559,809 3,884,391
Change in fund balance before
other financing sources(uses) (3,983,087) (5,265,787) (2,342,328) 2,923,459
OTHER FINANCING SOURCES(USES)
Transfer in 3,986,102 5,268,802 2,079,547 (3,189,255)
Reserve for future expenditures (562,051) (562,051) - 562,051
Total other financing sources(uses) 3,424,051 4,706,751 2,079,547 (2,627,204)
Change in fund balance (559,036) (559,036) (262,781) 296,255
Fund balance-Beginning of the year 559,036 559,036 619,273 60,237
Fund balance-End of the year $ - $ - $ 356,492 $ 356,492
168
CITY OF TIGARD,OREGON
PARKS BOND FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 2,000 $ 2,000 $ 30,936 $ 28,936
OTHER FINANCING SOURCES(USES)
Transfer out (1,279,000) (1,433,000) (821,066) 611,934
Reserve for future expenditures (114,805) (114,805) - 114,805
Total other financing uses (1,393,805) (1,547,805) (821,066) 726,739
Change in fund balance (1,391,805) (1,545,805) (790,130) 755,675
Fund balance-Beginning of the year 1,391,805 1,545,805 1,597,531 51,726
Fund balance-End of the year $ - $ - $ 807,401 $ 807,401
169
CITY OF TIGARD,OREGON
CITY CENTER CAPITAL IMPROVEMENTS FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental revenues $ - $ - $ 4,349 $ 4,349
Rental revenues 95,000 95,000 107,371 12,371
Interest earnings - - 50 50
Miscellaneous revenues 390,000 390,000 2,440 (387,560)
Total revenues 485,000 485,000 114,210 (370,790)
EXPENDITURES
* Capital projects 400,950 461,450 187,707 273,743
Change in fund balance before
other financing sources(uses) 84,050 23,550 (73,497) (97,047)
OTHER FINANCING SOURCES(USES)
Transfer in 306,000 366,500 187,706 (178,794)
Total other financing sources 306,000 366,500 187,706 (178,794)
Change in fund balance 390,050 390,050 114,209 (275,841)
Fund balance-Beginning of the year - - 32,955 32,955
Fund balance-End of the year $ 390,050 $ 390,050 $ 147,164 $ (242,886)
* For budgetary puposes expenditures are appropriated as capital projects, however on the GAAP statements
non-capital transactions are recorded as program expenditures
170
CITY OF TIGARD,OREGON
TIGARD TRIANGLE CAPITAL IMPROVEMENTS FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental revenues $ 340,246 $ 340,246 $ 10,000 $ (330,246)
EXPENDITURES
Community development 690,196 690,196 193,273 496,923
* Capital projects 1,000 1,000 - 1,000
Total expenditures 691,196 691,196 193,273 497,923
Change in fund balance before
other financing sources(uses) (350,950) (350,950) (183,273) 167,677
OTHER FINANCING SOURCES(USES)
Transfer in 350,950 350,950 - (350,950)
Debt proceeds - - 183,273 183,273
Total other financing sources 350,950 350,950 183,273 (167,677)
Change in fund balance - - - -
Fund balance-Beginning of the year - - - -
Fund balance-End of the year $ - $ - $ - $ -
* For budgetary puposes expenditures are appropriated as capital projects, however on the GAAP statements
non-capital transactions are recorded as program expenditures
171
CITY OF TIGARD,OREGON
TRANSPORTATION DEVELOPMENT TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
System development charges $ 1,190,700 $ 1,190,700 $ 2,043,589 $ 852,889
Interest earnings 11,279 11,279 339,322 328,043
Total revenues 1,201,979 1,201,979 2,382,911 1,180,932
OTHER FINANCING SOURCES(USES)
Transfer out (1,040,945) (3,314,371) (2,346,808) 967,563
Contingency (250,000) (250,000) - 250,000
Reserve for future expenditures (8,238,513) (8,238,513) - 8,238,513
Total other financing sources(uses) (9,529,458) (11,802,884) (2,346,808) 9,456,076
Change in fund balance (8,327,479) (10,600,905) 36,103 10,637,008
Fund balance-Beginning of the year 8,327,479 10,600,905 11,571,498 970,593
Fund balance-End of the year $ - $ - $ 11,607,601 $ 11,607,601
172
CITY OF TIGARD,OREGON
PARKS SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
System development charges $ 728,351 $ 728,351 $ 1,495,466 $ 767,115
Interest earnings 19,782 19,782 291,559 271,777
Total revenues 748,133 748,133 1,787,025 1,038,892
OTHER FINANCING SOURCES(USES)
Transfer out (2,572,601) (3,562,301) (1,118,678) 2,443,623
Contingency (80,000) (80,000) - 80,000
Reserve for future expenditures (6,785,773) (6,785,773) - 6,785,773
Total other financing sources(uses) (9,438,374) (10,428,074) (1,118,678) 9,309,396
Change in fund balance (8,690,241) (9,679,941) 668,347 10,348,288
Fund balance-Beginning of the year 8,690,241 9,679,941 10,130,569 450,628
Fund balance-End of the year $ - $ - $ 10,798,916 $ 10,798,916
173
CITY OF TIGARD,OREGON
TRANSPORTATION CIP FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental revenues $ 1,133,230 $ 2,132,905 $ 1,055,380 $ (1,077,525)
Miscellaneous revenues 195,000 927,325 919,396 (7,929)
Charges for services - - 32,831 32,831
Interest earnings - - 4,051 4,051
Total revenues 1,328,230 3,060,230 2,011,658 (1,048,572)
EXPENDITURES
Capital projects 3,473,230 7,565,062 4,747,819 2,817,243
Total expenditures 3,473,230 7,565,062 4,747,819 2,817,243
Change in fund balance before
other financing sources(uses) (2,145,000) (4,504,832) (2,736,161) 1,768,671
OTHER FINANCING SOURCES(USES)
Transfer in 2,145,000 4,504,832 2,973,271 (1,531,561)
Reserve for future expenditures (1,058,100) (1,058,100) - 1,058,100
Total other financing sources 1,086,900 3,446,732 2,973,271 (473,461)
Change in fund balance (1,058,100) (1,058,100) 237,110 1,295,210
Fund balance-Beginning of the year 1,058,100 1,058,100 596,880 (461,220)
Fund balance-End of the year $ - $ - $ 833,990 $ 833,990
174
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.
175
176
CITY OF TIGARD,OREGON
SANITARY SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,867,135 $ 2,867,135 $ 3,389,281 $ 522,146
Connection fees 42,200 42,200 132,207 90,007
Intergovernmental revenues 1,285,835 1,285,835 - (1,285,835)
Interest earnings 10,333 10,333 163,890 153,557
Miscellaneous revenues 13,091 13,091 138,165 125,074
Total revenues 4,218,594 4,218,594 3,823,543 (395,051)
EXPENDITURES
Public works 2,668,472 2,728,072 2,638,795 89,277
Capital projects 859,200 859,200 154,342 704,858
Total expenditures 3,527,672 3,587,272 2,793,137 794,135
Change in fund balance before
other financing sources(uses) 690,922 631,322 1,030,406 399,084
OTHER FINANCING SOURCES(USES)
Transfer in 218,100 218,100 42,860 (175,240)
Transfer out (823,263) (826,350) (164,457) 661,893
Contingency (400,000) (337,313) - 337,313
Reserve for future expenditures (3,955,879) (3,955,879) - 3,955,879
Total other financing sources(uses) (4,961,042) (4,901,442) (121,597) 4,779,845
Change in fund balance (4,270,120) (4,270,120) 908,809 5,178,929
Fund balance-Beginning of the year 4,270,120 4,270,120 5,386,207 1,116,087
Fund balance-End of the year $ - $ - $ 6,295,016 $ 6,295,016
177
CITY OF TIGARD,OREGON
SANITARY SEWER FUND
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30,2019
Operating and
Non-Operating Expenditures/
Revenues Expenses
Budgetary basis $ 3,866,403 $ 2,793,137
Unavailable revenue (5,751) -
Contributed capital 403,287 -
Compensated absences - 1,816
Expenditures capitalized - (465,552)
Depreciation expense - 799,408
Net OPEB obligation - (326)
Operating and non-operating revenue
and expenses-GAAP basis $ 4,263,939 $ 3,128,483
178
CITY OF TIGARD,OREGON
STORM WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,848,455 $ 2,848,455 $ 3,812,133 $ 963,678
Licenses and permits - - 15,969 15,969
Interest earnings 7,936 7,936 175,203 167,267
Miscellaneous revenues 3,100 3,100 8,909 5,809
Total revenues 2,859,491 2,859,491 4,012,214 1,152,723
EXPENDITURES
Public works 2,969,785 3,064,435 2,745,348 319,087
Capital projects 2,293,600 2,293,600 493,958 1,799,642
Total expenditures 5,263,385 5,358,035 3,239,306 2,118,729
Change in fund balance before
other financing sources(uses) (2,403,894) (2,498,544) 772,908 3,271,452
OTHER FINANCING USES
Transfer in 681,250 681,250 84,544 (596,706)
Transfer out (433,278) (436,468) (212,623) 223,845
Contingency (200,000) (102,160) - 102,160
Reserve for future expenditures (3,077,884) (3,077,884) - 3,077,884
Total other financing uses (3,029,912) (2,935,262) (128,079) 2,807,183
Change in fund balance (5,433,806) (5,433,806) 644,829 6,078,635
Fund balance-Beginning of the year 5,433,806 5,433,806 7,138,714 1,704,908
Fund balance-End of the year $ - $ - $ 7,783,543 $ 7,783,543
179
CITY OF TIGARD,OREGON
WATER QUALITY/QUANTITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ - $ - $ 2,180 $ 2,180
Interest earnings 15,102 15,102 32,050 16,948
Total revenues 15,102 15,102 34,230 19,128
OTHER FINANCING SOURCES(USES)
Transfer out (56,421) (56,421) - 56,421
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (1,157,668) (1,157,668) - 1,157,668
Total other financing sources(uses) (1,264,089) (1,264,089) - 1,264,089
Change in fund balance (1,248,987) (1,248,987) 34,230 1,283,217
Fund balance-Beginning of the year 1,248,987 1,248,987 1,254,609 5,622
Fund balance-End of the year $ - $ - $ 1,288,839 $ 1,288,839
180
CITY OF TIGARD,OREGON
STORMWATER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30,2019
Operating and
Non-operating Expenditures/
Revenues Expenses
Stormwater $ 4,096,758 $ 3,451,929
Water Quality/Quantity 34,230 -
Total,budgetary basis 4,130,988 3,451,929
Contributed capital 615,727 -
Compensated absences - 270
Expenditures capitalized - (564,353)
Depreciation expense - 587,092
Net OPEB obligation - (1,003)
Operating and non-operating
revenue and expenses-GAAP basis $ 4,746,715 $ 3,473,935
181
CITY OF TIGARD,OREGON
WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 21,538,429 $ 21,538,429 $ 23,751,073 $ 2,212,644
Interest earnings 30,644 30,644 742,046 711,402
Miscellaneous revenues 10,933 10,933 502,424 491,491
Total revenues 21,580,006 21,580,006 24,995,543 3,415,537
EXPENDITURES
Public works 8,106,244 8,420,594 6,618,117 1,802,477
Change in fund balance before
other financing sources(uses) 13,473,762 13,159,412 18,377,426 5,218,014
OTHER FINANCING SOURCES(USES)
Transfer in 58,751 58,751 58,751 -
Transfer out (10,576,100) (10,684,238) (9,148,864) 1,535,374
Contingency (500,000) (175,512) - 175,512
Reserve for future expenditures (20,236,132) (20,236,132) - 20,236,132
Total other financing sources(uses) (31,253,481) (31,037,131) (9,090,113) 21,947,018
Change in fund balance (17,779,719) (17,877,719) 9,287,313 27,165,032
Fund balance-Beginning of the year 17,779,719 17,877,719 25,963,968 8,086,249
Fund balance-End of the year $ - $ - $ 35,251,281 $ 35,251,281
182
CITY OF TIGARD,OREGON
WATER SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
System development charges $ 1,466,005 $ 1,466,005 $ 1,870,435 $ 404,430
Interest earnings 233 233 343,069 342,836
Total revenues 1,466,238 1,466,238 2,213,504 747,266
OTHER FINANCING SOURCES(USES)
Transfer out (726,000) (1,556,721) (1,166,581) 390,140
Contingency (100,000) (100,000) - 100,000
Reserve for future expenditures (8,688,870) (8,688,870) - 8,688,870
Total other financing sources(uses) (9,514,870) (10,345,591) (1,166,581) 9,179,010
Change in fund balance (8,048,632) (8,879,353) 1,046,923 9,926,276
Fund balance-Beginning of the year 8,048,632 8,879,353 11,856,589 2,977,236
Fund balance-End of the year $ - $ - $ 12,903,512 $ 12,903,512
183
CITY OF TIGARD,OREGON
WATER CIP FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 13,096 $ 13,096 $ - $ (13,096)
Investment valuation adjustment - - (34,693) (34,693)
Miscellaneous revenues - - 2,922 2,922
Total revenues 13,096 13,096 (31,771) (44,867)
EXPENDITURES
Capital projects 2,615,500 3,544,221 1,559,313 1,984,908
Change in fund balance before
other financing sources(uses) (2,602,404) (3,531,125) (1,591,084) 1,940,041
OTHER FINANCING SOURCES(USES)
Transfer in 2,615,500 3,544,221 1,655,913 (1,888,308)
Reserve for future expenditures (1,937,546) (1,937,546) - 1,937,546
Total other financing sources(uses) 677,954 1,606,675 1,655,913 49,238
Change in fund balance (1,924,450) (1,924,450) 64,829 1,989,279
Fund balance-Beginning of the year 1,924,450 1,924,450 1,413,195 (511,255)
Fund balance-End of the year $ - $ - $ 1,478,024 $ 1,478,024
184
CITY OF TIGARD,OREGON
WATER DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 45,000 $ 45,000 $ 185,269 $ 140,269
EXPENDITURES
Debt service:
Principal 2,305,000 2,305,000 2,292,092 12,908
Interest 6,120,000 6,120,000 6,098,041 21,959
Total expenditures 8,425,000 8,425,000 8,390,133 34,867
Change in fund balance before
other financing sources(uses) (8,380,000) (8,380,000) (8,204,864) 175,136
OTHER FINANCING SOURCES(USES)
Transfer in 8,408,000 8,408,000 8,390,133 (17,867)
Reserve for future expenditures (6,909,562) (6,909,562) - 6,909,562
Total other financing sources(uses) 1,498,438 1,498,438 8,390,133 6,891,695
Change in fund balance (6,881,562) (6,881,562) 185,269 7,066,831
Fund balance-Beginning of the year 6,881,562 6,881,562 6,955,380 73,818
Fund balance-End of the year $ - $ - $ 7,140,649 $ 7,140,649
185
CITY OF TIGARD,OREGON
WATER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30,2019
Operating and
Non-operating Expenditures/
Revenues Expenses
Water $ 25,054,294 $ 15,766,981
Water SDC 2,213,504 1,166,581
Water CIP 1,624,142 1,559,313
Water Debt Service 8,575,402 8,390,133
Total,budgetary basis 37,467,342 26,883,008
Contributed capital 251,323 -
Loss on investment in joint venture (8,440) -
Elimination of water interfund transfers (10,046,046) (10,046,046)
Compensated absences - 1,647
Expenditures capitalized - (447,763)
Principal payments - (2,292,092)
Accrued interest - (37,315)
Amortization of bond premium - (535,335)
Depreciation expense - 3,971,175
Net OPEB obligation - (12,987)
Operating and non-operating
revenue and expenses-GAAP basis $ 27,664,179 $ 17,484,292
186
CITY OF TIGARD,OREGON
ENTERPRISE FUNDS
RECONCILIATION OF BUDGETARY FUND BALANCE TO
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET POSITION
June 30,2019
Total Total Total
Sanitary Sewer Stormwater Water
Sanitary Sewer Fund $ 6,295,016 $ - $ -
Stormwater Fund - 7,783,543 -
Water Quality/Quantity Fund - 1,288,839 -
Water Fund - - 35,251,281
Water SDC Fund - - 12,903,512
Water CIP Fund - - 1,478,024
Water Debt Service Fund - - 7,140,649
Fund balance-budget basis 6,295,016 9,072,382 56,773,466
Adjustments from budgetary basis to
generally accepted accounting principles basis:
Capital assets, net 19,830,058 13,495,524 209,415,236
Investment in joint venture - - 1,005,705
Sewer funds payable (21,781) - -
Assets held for resale 185,021 260,021 -
Unavailable revenue 22,330 - -
Compensated absences (27,414) (32,463) (48,807)
Long-term debt - - (132,751,532)
Accrued interest payable - - (2,543,751)
Interfund loans 102,320 - -
Deferred Outflow OPEB 2,169 3,098 3,924
Deferred Inflow OPEB (7,289) (10,413) (13,191)
OPEB liability (25,270) (36,102) (45,731)
Total Net Position-GAAP basis $ 26,355,160 $ 22,752,047 $ 131,795,323
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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.
Public Works Administration Fund — Accounts for activity related to the administration of
public works in the city. Resources are charges for services to city departments and internal
customers.
Public Works Engineering Fund — Accounts for activity related to engineering in the city.
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.
189
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191
CITY OF TIGARD, OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
June 30, 2019
Central Public Works
Services Administration
Fund Fund
ASSETS
Cash and investments $ 2,736,038 $ 552,167
Accounts receivable 19,143 -
Prepaids 32,830 -
Inventory - -
Total assets 2,788,011 552,167
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to OPEB 16,527 5,701
LIABILITIES
Accounts payable and accrued liabilities 417,694 40,939
Customer deposits - -
Unearned revenue 16,500 -
Accrued compensated absences 273,373 58,706
Net OPEB obligation 192,585 66,437
Total liabilities 900,152 166,082
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB 55,548 19,163
NET POSITION
Net position, unrestricted $ 1,848,838 $ 372,623
192
Public Works Fleet/Property
Engineering Management Insurance
Fund Fund Fund Total
$ 1,575,689 $ 836,565 $ 1,536,785 $ 7,237,244
- - 1,315 20,458
3,200 36,030
16,105 - 16,105
1,575,689 852,670 1,541,300 7,309,837
11,238 3,306 - 36,772
101,696 180,364 1,009 741,702
42,662 - - 42,662
16,500
67,262 38,351 256 437,948
130,956 38,520 - 428,498
342,576 257,235 1,265 1,667,310
37,772 11,111 - 123,594
$ 1,206,579 $ 587,630 $ 1,540,035 $ 5,555,705
193
CITY OF TIGARD, OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
for the year ended June 30, 2019
Central Public Works
Services Administration
Fund Fund
OPERATING REVENUES
Charges for services $ 7,895,582 $ 2,002,875
Miscellaneous revenues 38,703 571
Total operating revenues 7,934,285 2,003,446
OPERATING EXPENSES
Salaries and wages 5,038,360 1,108,966
Contracted services 839,110 71,206
General, administrative and other 2,314,952 855,549
Total operating expenses 8,192,422 2,035,721
Operating income (loss) (258,137) (32,275)
NONOPERATING REVENUE
Interest revenue 39,967 -
Income (loss) before contrigutions and transfers (218,170) (32,275)
CONTRIBUTIONS AND TRANSFERS
Transfer in 505,023 404,898
Change in net position 286,853 372,623
Net position - Beginning of year, as originally stated 1,561,985
Net position - End of year $ 1,848,838 $ 372,623
194
Public Works Fleet/Property
Engineering Management Insurance
Fund Fund Fund Total
$ 4,210,587 $ 2,409,111 $ - $ 16,518,155
832 1,592 262,190 303,888
4,211,419 2,410,703 262,190 16,822,043
2,277,371 885,003 21,644 9,331,344
172,390 314,947 - 1,397,653
1,256,362 932,663 11,688 5,371,214
3,706,123 2,132,613 33,332 16,100,211
505,296 278,090 228,858 721,832
6,500 100 26,565 73,132
511,796 278,190 255,423 794,964
694,783 - - 1,604,704
1,206,579 278,190 255,423 2,399,668
-
309,440 1,284,612 3,156,037
$ 1,206,579 $ 587,630 $ 1,540,035 $ 5,555,705
195
CITY OF TIGARD,OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
for the year ended June 30,2019
Public Works
Central Services Administration
Fund Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 7,945,093 $ 2,002,874
Payments to suppliers (2,996,446) (885,815)
Payments to employees (5,058,460) (970,361)
Other receipts 38,703 571
Net cash provided(used)by operating activities (71,110) 147,269
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfer from other funds 505,023 404,898
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 39,967
Net increase in cash and investments 473,880 552,167
Cash and investments--beginning of the year 2,262,158 -
Cash and investments--end of the year $ 2,736,038 $ 552,167
RECONCILIATION OF OPERATING INCOME(LOSS)TO
NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES
Operating income(loss) $ (258,137) $ (32,275)
Adjustments to reconcile operating income(loss)to
net cash provided(used)by operating activities
CHANGE IN ASSETS AND LIABILITIES
Receivables 49,511 -
Prepaids 117,989 -
Inventory - -
Accounts Payable 39,627 40,940
Customer Deposits - -
Accrued compensated absences (28,349) 58,706
Net OPEB Obligation 8,249 79,898
Net cash provided(used)by operating activities $ (71,110) $ 147,269
196
Public Works Fleet/Property
Engineering Management Insurance
Fund Fund Fund Total
$ 4,253,249 $ 2,415,276 $ - $ 16,616,492
(1,327,056) (1,194,558) (14,854) (6,418,729)
(2,052,619) (864,224) (21,388) (8,967,052)
832 1,592 261,320 303,018
874,406 358,086 225,078 1,533,729
694,783 - - 1,604,704
6,500 100 26,565 73,132
1,575,689 358,186 251,643 3,211,565
- 478,379 1,285,142 4,025,679
$ 1,575,689 $ 836,565 $ 1,536,785 $ 7,237,244
$ 505,296 $ 278,090 $ 228,858 $ 721,832
- 2,325 (870) 50,966
- 3,840 (3,200) 118,629
- 11,496 - 11,496
101,696 41,556 34 223,853
42,662 - - 42,662
67,262 11,718 256 109,593
157,490 9,061 - 254,698
$ 874,406 $ 358,086 $ 225,078 $ 1,533,729
197
CITY OF TIGARD,OREGON
CENTRAL SERVICES FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 8,393,613 $ 8,548,613 $ 7,895,582 $ (653,031)
Intergovernmental revenues - 74,900 - (74,900)
Interest earnings 22,593 22,593 39,967 17,374
Miscellaneous revenues 13,400 107,100 38,703 (68,397)
Total revenues 8,429,606 8,753,206 7,974,252 (778,954)
EXPENDITURES
Policy and administration 8,588,675 9,174,455 8,184,173 990,282
Total expenditures 8,588,675 9,174,455 8,184,173 990,282
Change in fund balance before
other financing sources(uses) (159,069) (421,249) (209,921) 211,328
OTHER FINANCING SOURCES(USES)
Transfer in 470,630 641,050 505,023 (136,027)
Contingency (250,000) (169,520) - 169,520
Reserve for future expenditures (1,086,958) (1,086,958) - 1,086,958
Total other financing sources(uses) (866,328) (615,428) 505,023 1,120,451
Change in fund balance (1,025,397) (1,036,677) 295,102 1,331,779
Fund balance-Beginning of the year 1,025,397 1,036,677 1,785,342 748,665
Fund balance-End of the year $ - $ - 2,080,444 $ 2,080,444
Reconciliation of budgetary fund balance to GAAP basis net position:
Net OPEB liability (192,585)
Deferred Outflow OPEB 16,527
Deferred Inflow OPEB (55,548)
Total net position,GAAP basis $ 1,848,838
198
CITY OF TIGARD,OREGON
PUBLIC WORKS ADMINISTRATION FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,017,775 $ 2,017,775 $ 2,002,875 $ (14,900)
Intergovernmental revenues - 15,100 - (15,100)
Miscellaneous revenues - - 571 571
Total revenues 2,017,775 2,032,875 2,003,446 (29,429)
EXPENDITURES
Policy and administration 2,101,448 2,151,548 1,955,822 195,726
Change in fund balance before
other financing sources(uses) (83,673) (118,673) 47,624 166,297
OTHER FINANCING SOURCES(USES)
Transfer in 389,124 424,124 404,898 (19,226)
Contingency (100,000) (100,000) - 100,000
Reserve for future expenditures (205,451) (205,451) - 205,451
Total other financing sources(uses) 83,673 118,673 404,898 286,225
Change in fund balance - - 452,522 452,522
Fund balance-Beginning of the year - - - -
Fund balance-End of the year $ - $ - 452,522 $ 452,522
Reconciliation of budgetary fund balance to GAAP basis net position:
Net OPEB liability (66,437)
Deferred Outflow OPEB 5,701
Deferred Inflow OPEB (19,163)
Total net position,GAAP basis $ 372,623
199
CITY OF TIGARD,OREGON
PUBLIC WORKS ENGINEERING FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 3,248,604 $ 3,248,604 $ 4,210,587 $ 961,983
Interest earnings - - 6,500 6,500
Miscellaneous revenues - - 832 832
Total revenues 3,248,604 3,248,604 4,217,919 969,315
EXPENDITURES
Policy and administration 3,718,753 3,728,563 3,548,633 179,930
Change in fund balance before
other financing sources(uses) (470,149) (479,959) 669,286 1,149,245
OTHER FINANCING SOURCES(USES)
Transfer in 941,288 941,288 694,783 (246,505)
Contingency (100,000) (90,190) - 90,190
Reserve for future expenditures (371,139) (371,139) - 371,139
Total other financing sources(uses) 470,149 479,959 694,783 214,824
Change in fund balance - - 1,364,069 1,364,069
Fund balance-Beginning of the year - - - -
Fund balance-End of the year $ - $ - 1,364,069 $ 1,364,069
Reconciliation of budgetary fund balance to GAAP basis net position:
Net OPEB liability (130,956)
Deferred Outflow OPEB 11,238
Deferred Inflow OPEB (37,772)
Total net position,GAAP basis $ 1,206,579
200
CITY OF TIGARD,OREGON
FLEET/PROPERTY MANAGEMENT FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,409,111 $ 2,409,111 $ 2,409,111 $ -
Interest earnings 2,000 2,000 100 (1,900)
Miscellaneous revenues 29,686 29,686 1,592 (28,094)
Total revenues 2,440,797 2,440,797 2,410,803 (29,994)
EXPENDITURES
Policy and administration 2,208,128 2,208,128 2,123,551 84,577
Change in fund balance before
other financing sources(uses) 232,669 232,669 287,252 54,583
OTHER FINANCING SOURCES(USES)
Transfer in 56,421 56,421 - (56,421)
Contingency (200,000) (200,000) - 200,000
Reserve for future expenditures (272,648) (272,648) - 272,648
Total other financing sources(uses) (416,227) (416,227) - 416,227
Change in fund balance (183,558) (183,558) 287,252 470,810
Fund balance-Beginning of the year 183,558 183,558 346,703 163,145
Fund balance-End of the year $ - $ - 633,955 $ 633,955
Reconciliation of budgetary fund balance to GAAP basis net position:
Net OPEB liability (38,520)
Deferred Outflow OPEB 3,306
Deferred Inflow OPEB (11,111)
Total net position,GAAP basis $ 587,630
201
CITY OF TIGARD,OREGON
INSURANCE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2019
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 3,620 $ 3,620 $ 26,565 $ 22,945
Miscellaneous revenues 119,000 119,000 262,190 143,190
Total revenues 122,620 122,620 288,755 166,135
EXPENDITURES
Policy and administration 64,408 64,408 33,332 31,076
Change in fund balance
before other financing sources(uses) 58,212 58,212 255,423 197,211
OTHER FINANCING SOURCES(USES)
Contingency (25,000) (25,000) - 25,000
Reserve for future expenditures (1,111,903) (1,111,903) - 1,111,903
Total other financing sources(uses) (1,136,903) (1,136,903) - 1,136,903
Change in fund balance (1,078,691) (1,078,691) 255,423 1,334,114
Fund balance-Beginning of the year 1,078,691 1,078,691 1,284,612 205,921
Fund balance-End of the year $ - $ - $ 1,540,035 $ 1,540,035
202
Other Schedules
203
204
CITY OF TIGARD,OREGON
SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS
For the fiscal year ended June 30,2019
Interest Transactions
Original Outstanding Matured/ Outstanding
Issue June 30,2018 Additions Called Paid Matured Paid
June 30,2019
Bancroft Bonds
Issued June 27,2002 $ 1,307,969 $ 124,219 $ - $ 95,800 $ (95,800) $ 28,419 $ 7,347 $ (7,347)
General Obligation Bonds
Issued February 3,2011 $ 8,655,000 $ 4,090,000 $ - $ 755,000 $ (755,000) $ 3,335,000 $ 148,500 $ (148,500)
Issued June 21,2010 7,250,000 1,625,000 - 800,000 (800,000) 825,000 70,688 (70,688)
Issued February 3,2011 17,000,000 12,555,000 - 750,000 (750,000) 11,805,000 544,125 (544,125)
$ 18,270,000 $ - $2,305,000 $ (2,305,000) $ 15,965,000 $ 763,313 $ (763,313)
Bank Loan
Issued September 1,2014 $ 1,300,000 $ 910,000 $ - $ 130,000 $ (130,000) $ 780,000 $ 7,787 $ (7,787)
Revenue Bonds
Issued May 1,2012 $97,720,000 $ 93,915,000 $ - $2,015,000 $ (2,015,000) $ 91,900,000 $4,546,040 $ (4,546,040)
Issued May 1,2015 30,810,000 30,485,000 - 170,000 (170,000) 30,315,000 1,497,900 (1,497,900)
$ 124,400,000 $ - $2,185,000 $ (2,185,000) $ 122,215,000 $6,043,940 $ (6,043,940)
Long-term Note
Issued December 1,2011 $ 2,398,000 $ 1,803,034 $ - $ 107,092 $ (107,092) $ 1,695,942 $ 54,091 $ (54,091)
205
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF LOCAL IMPROVEMENT DISTRICT BONDS
For the fiscal year ended June 30,2019
Total Debt Service Requirement Issued June 27,2002
Fiscal Year Total Total 7.25%
of Maturity Principal Interest Principal Interest
2020 $ 28,419 $ 1,021 $ 28,419 $ 1,021
206
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF GENERAL OBLIGATION BONDS
For the fiscal year ended June 30,2019
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
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
$ 15,965,000 $ 4,026,614 $ 3,335,000 $ 273,500 $ 825,000 $ 35,888 $ 11,805,000 $3,717,226
207
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF BANK LOAN PAYABLE
For the fiscal year ended June 30,2019
Total Debt Service Requirement Issued:September 1, 2014
Fiscal Year Total Total 3.00%
of Maturity Principal Interest Principal Interest
2020 $ 780,000 $ 11,681 $ 780,000 $ 11,681
208
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF WATER REVENUE BONDS
For the fiscal year ended June 30,2019
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
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
2045 7,635,000 592,375 - - 7,635,000 592,375
2046 8,030,000 200,750 - - 8,030,000 200,750
$ 122,215,000 $ 99,991,175 $ 91,900,000 $ 65,598,575 $ 30,315,000 $ 34,392,600
209
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF SAFE DRINKING WATER REVOLVING LOAN FUNDS
For the fiscal year ended June 30,2019
Total Debt Service Requirement Issued: December 1, 2011
Fiscal Year Total Total 3.00%to 5.00%
of Maturity Principal Interest Principal Interest
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
$ 1,695,942 $ 372,662 $ 1,695,942 $ 372,662
210
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. 214-230
Revenue Capacity—These schedules contain information to help the
reader assess the city's most significant local revenue source, property taxes. 231-236
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. 237-245
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. 246-248
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. 249-253
211
212
No content appears on this page by design.
213
CITY OF TIGARD,OREGON
NET POSITION BY COMPONENT
for the last ten fiscal years
(accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2010 2011 2012
GOVERNMENTAL ACTIVITIES
Net investment in capital assets $ 165,775,262 $ 181,343,650 $ 179,626,050
Restricted 6,872,512 5,880,755 13,180,057
Unrestricted 24,927,888 11,880,945 8,431,166
Total governmental activities net position 197,575,662 199,105,350 201,237,273
BUSINESS-TYPE ACTIVITIES
Net investment in capital assets 70,942,446 78,920,831 65,218,645
Restricted - 6,005,540 13,184,382
Unrestricted 17,371,241 8,675,865 19,429,375
Total business-type activities net position 88,313,687 93,602,236 97,832,402
PRIMARY GOVERNMENT
Net investment in capital assets 236,717,708 260,264,481 244,844,695
Restricted 6,872,512 11,886,295 26,364,439
Unrestricted 42,299,129 20,556,810 27,860,541
Total primary government net position $ 285,889,349 $ 292,707,586 $ 299,069,675
Source: Comprehensive Annual Financial Report of the City.
214
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2013 2014(Restated) 2015 2016 2017(Restated) 2018 2019
$ 181,196,030 $ 185,242,899 $ 189,748,234 $ 195,142,143 $ 199,214,099 $ 207,113,453 $ 216,080,286
12,041,725 10,941,117 12,376,136 20,392,998 26,313,186 38,019,099 40,908,235
14,311,478 13,596,004 13,031,415 11,024,212 21,105,136 26,937,963 36,208,160
207,549,233 209,780,020 215,155,785 226,559,353 246,632,421 272,070,515 293,196,681
74,044,470 79,627,259 84,867,665 95,247,967 104,870,812 110,785,680 110,542,303
9,683,852 10,551,442 11,250,300 12,279,628 15,387,870 18,811,969 20,044,161
18,523,616 16,721,508 21,256,129 21,847,155 30,803,556 38,881,215 50,316,066
102,251,938 106,900,209 117,374,094 129,374,750 151,062,238 168,478,864 180,902,530
255,240,500 264,870,158 274,615,899 290,390,110 304,084,911 317,899,133 326,622,589
21,725,577 21,492,559 23,626,436 32,672,626 41,701,056 56,831,068 60,952,396
32,835,094 30,317,512 34,287,544 32,871,367 51,908,692 65,819,178 86,524,226
$ 309,801,171 $ 316,680,229 $ 332,529,879 $ 355,934,103 $ 397,694,659 $ 440,549,379 $ 474,099,211
215
CITY OF TIGARD,OREGON
CHANGES IN NET POSITION
for the last ten fiscal years
(accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2010 2011 2012
EXPENSES
Governmental activities
Community services $ 19,832,642 $ 19,987,961 $ 20,025,191
Public works 8,563,893 10,911,875 12,489,448
Community development 4,846,494 4,159,289 4,709,751
Policy and administration 1,511,956 1,825,398 2,117,198
Interest on long-term debt 548,987 1,214,420 1,125,259
Total governmental activities expenses 35,303,972 38,098,943 40,466,847
Business-type activities
Sewer 1,379,105 1,386,597 1,743,929
Stormwater 2,061,622 1,667,699 1,649,715
Water 7,880,598 6,996,463 7,807,706
Total business-type activities program expenses 11,321,325 10,050,759 11,201,350
Total primary government expenses $ 46,625,297 $ 48,149,702 $ 51,668,197
PROGRAM REVENUES
Governmental activities
Charges for services:
Community services $ 232,384 $ 1,008,691 $ 1,191,417
Public works 1,751,341 2,096,677 1,915,631
Community development 1,490,701 1,747,617 1,684,287
Policy and administration 108,940 84,065
Operating grants and contributions 199,506 6,516,004 6,952,717
Capital grants and contributions 305,398 230,500 1,049,774
Total governmental activities program revenues 4,088,270 11,599,489 12,877,891
Business-type activities
Charges for services:
Sewer 1,117,987 1,021,840 1,025,732
Stormwater 1,872,545 2,178,298 2,402,189
Water 7,834,978 9,065,554 11,895,044
Capital grants and contributions 1,022,045 4,583,764 2,871,726
Total business-type activities program revenues 11,847,555 16,849,456 18,194,691
Total primary government program revenues $ 15,935,825 $ 28,448,945 $ 31,072,582
Source: Comprehensive Annual Financial Report of the City.
216
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2013 2014(Restated) 2015 2016 2017(Restated) 2018 2019
$ 19,085,777 $ 23,078,512 $ 18,542,379 $ 25,089,790 $ 23,268,637 $ 24,099,976 $ 23,370,174
8,585,063 8,399,436 10,408,399 10,865,800 8,263,304 8,900,831 12,129,476
3,988,011 4,267,328 4,688,686 7,030,142 5,807,204 5,330,390 5,146,891
1,339,254 1,732,016 1,323,435 1,226,166 3,528,933 2,945,936 3,688,137
1,226,774 1,147,024 1,185,507 958,204 949,136 863,803 771,834
34,224,879 38,624,316 36,148,406 45,170,102 41,817,214 42,140,936 45,106,512
2,114,054 2,617,625 2,518,708 2,536,988 2,586,769 2,789,140 3,128,483
2,045,399 1,958,551 2,077,589 2,123,162 2,737,825 2,470,085 3,261,312
11,989,337 11,730,347 10,839,483 14,720,167 8,244,491 14,123,903 17,223,333
16,148,790 16,306,523 15,435,780 19,380,317 13,569,085 19,383,128 23,613,128
$ 50,373,669 $ 54,930,839 $ 51,584,186 $ 64,550,419 $ 55,386,299 $ 61,524,064 $ 68,719,640
$ 2,252,945 $ 1,872,350 $ 1,731,639 $ 1,879,576 $ 2,482,811 $ 1,557,082 $ 1,628,237
2,120,366 2,519,515 2,239,431 2,860,543 5,165,280 4,708,329 4,797,891
2,579,329 1,765,005 3,040,501 4,684,733 4,341,128 6,518,737 6,432,190
105,755 65,233 142,277 119,195 363,583 340,446 345,505
6,924,053 6,318,382 6,508,556 7,756,718 6,880,727 8,321,435 9,594,291
2,173,900 1,804,398 2,021,422 11,785,524 15,691,507 16,307,318 12,268,270
16,156,348 14,344,883 15,683,826 29,086,289 34,925,036 37,753,347 35,066,384
1,203,187 1,727,206 1,773,388 1,791,302 3,013,314 3,208,783 3,389,281
2,629,694 2,733,346 2,899,180 3,058,382 3,275,083 3,620,431 3,812,133
14,907,664 15,985,607 18,804,645 20,918,497 20,926,322 23,078,013 23,751,073
1,675,987 1,111,346 2,066,696 5,806,590 7,670,388 6,795,717 3,285,377
20,416,532 21,557,505 25,543,909 31,574,771 34,885,107 36,702,944 34,237,864
$ 36,572,880 $ 35,902,388 $ 41,227,735 $ 60,661,060 $ 69,810,143 $ 74,456,291 $ 69,304,248
217
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
2010 2011 2012
NET(EXPENSE)REVENUE
Governmental activities $ (31,215,702) $ (26,499,454) $ (27,588,956)
Business-type activities 526,230 6,798,697 6,993,341
Total primary government net expenses (30,689,471) (19,700,757) (20,595,615)
GENERAL REVENUES AND OTHER
CHANGES IN NET POSITION
Governmental activities:
Property taxes 16,070,846 13,604,285 15,182,467
Franchise fees 4,548,520 4,375,420 4,880,635
Unrestricted intergovernmental revenues 6,993,245 2,838,802 4,798,949
Interest earnings 308,853 296,964 283,273
Miscellaneous 376,884 5,284,426 1,583,989
Transfers between Governmental and Business-type 1,276,800 1,629,245 2,991,566
Total governmental activities 29,575,148 28,029,142 29,720,879
Business-type activities:
Interest earnings 153,300 115,828 73,228
Miscellaneous 204,427 3,269 155,164
Unrestricted intergovernmental revenues - - -
Transfers between Governmental and Business-type (1,276,800) (1,629,245) (2,991,566)
Total business-type activities (919,073) (1,510,148) (2,763,174)
Total primary government 28,656,075 26,518,994 26,957,705
CHANGES IN NET POSITION
Governmental activities(restated) (1,640,554) 1,529,688 2,131,923
Business-type activities(restated) (392,843) 5,288,549 4,230,167
Total primary government $ (2,033,396) $ 6,818,237 $ 6,362,090
Source: Comprehensive Annual Financial Report of the City.
218
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2013 2014(Restated) 2015 2016 2017(Restated) 2018 2019
$ (18,068,531) $ (24,279,433) $ (20,464,580) $ (16,083,813) $ (6,892,178) $ (4,387,589) $ (10,040,128)
4,267,742 5,250,982 10,108,129 12,194,454 21,316,022 17,319,816 10,624,736
(13,800,789) (19,028,451) (10,356,451) (3,889,359) 14,423,844 12,932,227 584,608
15,338,744 15,796,663 16,523,361 17,177,591 17,616,798 18,387,321 19,101,543
5,855,956 5,542,647 5,687,456 5,734,540 5,890,113 6,095,852 6,211,736
2,500,240 2,955,652 3,004,341 2,840,903 2,074,428 3,022,051 2,522,428
248,812 421,211 434,401 688,087 824,213 1,683,282 2,416,827
316,512 776,154 247,154 228,779 268,380 416,785 453,435
120,227 1,017,893 (56,368) 817,481 291,314 220,392 460,325
24,380,491 26,510,220 25,840,345 27,487,381 26,965,246 29,825,683 31,166,294
114,661 270,415 131,485 302,890 106,628 139,926 1,606,834
157,360 144,767 177,903 193,645 270,628 177,276 652,421
- -
- 127,148 285,524 - -
(120,227) (1,017,893) 56,368 (817,481) (291,314) (220,392) (460,325)
151,794 (602,711) 365,756 (193,798) 371,466 96,810 1,798,930
24,532,285 25,907,509 26,206,101 27,293,583 27,336,712 29,922,493 32,965,224
6,311,960 2,230,787 5,375,765 11,403,568 20,073,068 25,438,094 21,126,166
4,419,536 4,648,271 10,473,885 12,000,656 21,687,488 17,416,626 12,423,666
$ 10,731,496 $ 6,879,058 $ 15,849,650 $ 23,404,224 $ 41,760,556 $ 42,854,720 $ 33,549,832
219
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
2010 2011 2012
GENERAL FUND
Reserved $ 273,726 $ - $ -
Unreserved 7,067,526 - -
Nonspendable - 305,164 471,975
Unassigned - 7,247,383 7,378,411
Total General Fund $ 7,341,252 $ 7,552,547 $ 7,850,386
ALL OTHER GOVERNMENTAL FUNDS
Reserved $ - $ - $ -
Unreserved, reported in:
Special revenue funds 8,094,802 - -
Debt service funds 1,927,247 - -
Capital projects funds 4,945,265 - -
Nonspendable - - -
Restricted - 16,855,664 15,568,787
Committed - 2,263,088 3,217,309
Assigned - 417,479 428,823
Unassigned - (382,937) (498,110)
Total all other governmental funds $ 14,967,314 $ 19,153,294 $ 18,716,809
*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.
220
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2013 2014 2015 2016 2017 2018 2019
$ - $ - $ - $ - $ - $ - $ -
472,941 508,374 542,543 664,254 706,412 705,495 225,974
9,687,736 11,474,700 12,115,436 12,970,670 14,884,712 19,356,804 23,121,341
$ 10,160,677 $ 11,983,074 $ 12,657,979 $ 13,634,924 $ 15,591,124 $ 20,062,299 $ 23,347,315
$ - $ - $ - $ - $ - $ - $ -
14,986 16,055 11,225 - 16,485 17,040 17,560
14,859,784 12,504,001 11,791,605 18,250,934 31,914,910 45,521,700 51,414,137
4,020,435 4,457,233 2,801,857 3,260,236 4,341,838 3,307,731 3,325,235
670,223 905,166 1,156,788 1,597,773 1,725,086 1,738,216 2,388,659
(601,324) (752,925) (352,684) (617,329) (725,296) (724,477) -
$ 18,964,104 $ 17,129,530 $ 15,408,791 $ 22,491,614 $ 37,273,023 $ 49,860,210 $ 57,145,591
221
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
2010 2011 2012
REVENUES
Taxes $ 16,078,788 $ 16,753,457 $ 17,767,128
City gas tax* - - -
Franchise fees 4,548,520 4,375,420 4,880,635
Special assessments 284,202 40,164 38,776
Licenses and permits 1,229,880 2,590,516 2,444,551
Intergovernmental revenues 6,358,393 9,834,646 6,586,757
Charges for service 2,335,863 2,292,276 2,087,993
System development charges 747,224 835,031 971,660
Fines and forfeitures 915,524 907,216 1,092,296
Interest earnings 300,126 287,284 262,080
Miscellaneous 249,180 47,489 633,575
Total revenues 33,047,700 37,963,499 36,765,451
EXPENDITURES
Current operating:
Community services 19,418,498 19,182,018 19,638,469
Public works 5,129,767 6,059,692 6,354,390
Community development 4,674,008 3,975,257 3,902,223
Policy and administration 787,209 711,743 819,034
Debt service:
Principal 875,513 2,590,456 1,894,125
Interest 557,061 67,294 1,652,691
Refunded bonds - 8,836,046 -
Refunding bond issuance cost - 81,236 -
Capital outlay 7,373,043 19,247,942 4,037,766
Total expenditures 38,815,099 60,751,684 38,298,698
Excess(deficiency)of revenues
over(under)expenditures (5,767,399) (22,788,185) (1,533,247)
OTHER FINANCING SOURCES(USES)
Proceeds from bond/long-term note 7,250,000 26,214,495 -
Operating transfers in 4,965,010 16,977,142 6,969,663
Interfund loan - - -
Operating transfers out (3,688,210) (16,006,177) (5,575,062)
Debt proceeds - - -
Total other financing sources(uses) 8,526,800 27,185,460 1,394,601
Net change in fund balances $ 2,759,401 $ 4,397,275 $ (138,646)
Debt services as a percentage of non-capital
expenditures 4.77% 6.84% 12.75%
* City gas tax was broken out of intergovernmental revenues beginning in fiscal year 2013.
Source: Comprehensive Annual Financial Report of the City.
222
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2013 2014 2015 2016 2017 2018 2019
$ 18,208,253 $ 18,822,449 $ 19,575,665 $ 20,191,927 $ 20,704,055 $ 21,822,129 $ 25,248,472
830,031 638,852 558,740 712,408 844,866 887,038 888,913
5,724,192 5,542,647 5,691,960 5,732,448 5,886,791 6,102,443 6,218,353
43,170 258,831 35,359 65,243 52,146 50,036 59,999
3,175,118 3,098,875 4,030,120 5,751,472 6,662,790 7,648,235 5,178,056
6,040,986 6,386,961 6,370,732 6,684,667 8,228,693 8,737,359 9,498,510
4,624,844 4,982,211 4,342,534 4,869,821 5,930,289 6,636,913 4,648,396
2,007,935 955,678 961,450 6,104,579 11,733,901 9,860,311 4,240,910
1,038,948 929,293 924,266 972,560 713,059 698,508 843,100
254,237 424,221 434,401 653,879 799,748 1,659,107 2,343,694
206,443 312,815 413,736 220,894 349,098 1,204,701 1,284,229
42,154,157 42,352,833 43,338,963 51,959,898 61,905,436 65,306,780 60,452,632
18,636,382 19,420,335 20,325,635 20,784,186 21,925,169 22,631,248 22,051,531
6,551,980 6,914,185 7,512,446 7,606,128 8,291,205 8,899,175 6,105,157
3,937,089 4,219,481 4,640,737 6,981,903 5,807,836 5,345,399 5,272,175
711,385 701,172 778,840 831,876 787,681 795,586 993,346
1,992,500 2,445,993 2,117,045 2,361,892 2,378,100 2,454,000 2,530,800
1,264,795 1,178,637 1,118,238 1,059,733 977,539 892,206 799,646
6,357,256 7,657,993 8,924,317 6,200,291 4,705,720 6,742,438 11,087,518
39,451,387 42,537,796 45,417,258 45,826,009 44,873,250 47,760,052 48,840,173
2,702,770 (184,963) (2,078,295) 6,133,889 17,032,186 17,546,728 11,612,459
- - 1,300,000 1,650,000 - - -
4,735,619 6,420,053 6,178,215 6,378,318 4,755,215 4,174,624 8,808,520
- - - - - - (183,273)
(4,880,803) (6,247,267) (6,445,754) (6,102,439) (5,049,792) (4,662,990) (9,952,900)
- - - - - - 183,273
(145,184) 172,786 1,032,461 1,925,879 (294,577) (488,366) (1,144,380)
$ 2,557,586 $ (12,177) $ (1,045,834) $ 8,059,768 $ 16,737,609 $ 17,058,362 $ 10,468,079
10.92% 11.60% 8.98% 9.00% 8.56% 8.28% 8.34%
223
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
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
2019 13,203,823 9,594,291 12,268,270 19,101,543 6,211,736
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
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 - -
2019 30,952,487 - 3,285,377 - -
Source: Comprehensive Annual Financial Report of the City-Statement of Activities.
224
General Revenues
Gain(Loss)on
Intergovernmental Interest Disposition of
Revenues Earnings Capital Assets Miscellaneous Total
$ 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
2,522,428 2,416,827 - 453,435 65,772,353
General Revenues
Gain(Loss)on
Intergovernmental Interest Disposition of
Revenues Earnings Capital Assets Miscellaneous Total
$ - $ 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
- 1,606,834 - 652,421 36,497,119
225
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
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
2019 23,370,174 12,129,476 5,146,891 3,688,137
CITY OF TIGARD,OREGON
BUSINESS-TYPE EXPENSES BY FUNCTION
For the last ten fiscal years
Fiscal
Year Ended
June 30 Sewer Stormwater Water Total
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
2019 3,128,483 3,261,312 17,223,333 23,613,128
Source: Comprehensive Annual Financial Report of the City.
226
Interest on
Long-Term
Debt Total
$ 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
771,834 45,106,512
227
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
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
2019 26,137,385 6,218,353 5,178,056 9,498,510
* Includes special assessments collections,interest earnings,and other revenues.
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
228
Charges System
For Development Fines and Miscellaneous
Services Charges Forfeitures Revenues* Total
$ 2,335,863 $ 747,224 $ 915,524 $ 833,508 $ 33,047,700
2,292,276 835,031 907,216 374,937 37,963,499
2,087,993 971,660 1,092,296 934,431 36,765,451
4,624,844 2,007,935 1,038,948 503,850 42,154,157
4,982,211 955,678 929,293 737,036 42,352,833
4,342,534 961,450 924,266 883,496 43,338,963
4,869,821 6,104,579 972,560 940,016 51,959,898
5,930,289 11,733,901 713,059 1,200,992 61,905,436
6,636,913 9,860,311 698,508 2,913,844 65,306,780
4,648,396 4,240,910 843,100 3,687,922 60,452,632
229
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
2010 $ 19,418,498 $ 9,803,775 $ 787,209 $ 7,373,043 $ 1,432,574 $ 38,815,099
2011 19,182,018 10,034,949 711,743 19,247,942 11,575,032 60,751,684
2012 19,638,468 10,256,613 819,034 4,037,766 3,546,817 38,298,698
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
2019 22,051,531 11,377,332 993,346 11,087,518 3,330,446 48,840,173
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
230
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
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 3.02 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 5.52 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 2.95 9,883,766,510 65.28%
2019 6,314,865,980 285,495,149 165,706,700 6,766,067,829 2.95 10,754,179,526 62.92%
* per$1,000 of assessed value/including phase in rates
Source: Washington County Assessment and Taxation
231
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
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 3.02 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 2.51 5.52 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 - 2.95 2.94 7.73
2019 2.51 0.35 0.08 - 2.95 2.94 7.71
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.
232
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
$ 6.88 $ 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 33.85
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 27.11
7.92 2.09 - 0.68 - 0.71 26.42
8.05 2.07 - 0.60 - 0.80 25.15
8.02 2.07 - 0.69 - 0.85 25.24
233
CITY OF TIGARD,OREGON
PRINCIPAL PROPERTY TAXPAYERS
For current and nine years ago
2019 2010
Percentage Percentage
Taxable of Total City Taxable of Total City
Taxpayer Assessed Value Rank Assessed Value Assessed Value Rank Assessed Value
Pacific Realty Associates $ 231,583,241 1 3.42% $ 178,231,550 1 3.63%
PPR Washington Square LLC 149,777,028 2 2.21% 112,841,214 2 2.30%
Lincoln Center LLC 100,269,186 3 1.48% 81,321,250 3 1.65%
ICON Owner Pool 1 West LLC 56,377,550 4 0.83%
Comcast Corporation 35,874,600 5 0.53%
Portland General Electric 34,372,000 6 0.51% 30,530,230 7 0.62%
ROIC Oregon LLC 34,231,830 7 0.51%
Polygon WLH LLC 33,595,225 8 0.50%
FO Portland Property LLC 27,207,760 9 0.40%
Northwest Natural Gas 27,194,000 10 0.40% 27,936,896 8 0.57%
Verizon Northwest Inc 60,329,044 4 1.23%
Sprint Nextel Corp 55,309,352 5 1.13%
Park 2017&Nelson Business Park 37,090,568 6 0.75%
Macy's Department Stores 21,896,667 9 0.45%
Holland Holdings 1 Arbor Heights 20,298,056 10 0.41%
Total $ 730,482,420 10.80% $ 625,784,827 12.74%
Source: Washington County Assessment&Taxation records.
234
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
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%
2019 19,292,388 18,519,287 95.99% 614,510 19,133,797 99.18% 308,522 1.60%
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.
Source:Washington County Property Tax Schedule.
235
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
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
2019 95,800 95,800 100.00% - 28,419
(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.
236
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
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%
2019 2,530,800 799,646 3,330,446 48,840,173 6.82%
Source: Comprehensive Annual Financial Report of the City.
237
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
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
2017 53,697 6,451,869,864 18,419,297 1,263,130 17,156,167 0.27% 319.50
2018 54,758 6,766,067,829 16,094,594 1,510,969 14,583,625 0.22% 266.33
Source: City budget documents,Comprehensive Annual Financial Reports of the city and Washington Department of
Assessment and Taxation.
238
CITY OF TIGARD,OREGON
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30,2019
Percent Amount
Applicable Applicable
Net Debt Inside City of Inside City of
Jurisdiction Outstanding Tigard* Tigard
Tigard/Tualatin School District#23-J $ 251,426,415 46.94% $ 118,024,336
Metro 819,020,000 3.23% 26,419,128
Beaverton School District#48 996,806,084 3.55% 35,411,536
Portland Community College 602,297,900 4.05% 24,367,166
Washington County 228,769,717 10.22% 23,387,586
Northwest Regional ESD - 8.28% -
Tualatin Valley Fire&Rescue District 26,055,000 11.32% 2,949,947
Sub-Total of Overlapping Debt 2,924,375,116 230,559,699
City of Tigard 16,903,013 100.00% 16,903,013
Total for Overlapping Debt $ 2,941,278,129 $ 247,462,712
*The City of Tigard does not calculate this percentage; it is provided by the State of Oregon.
Source: Oregon State Treasury Debt Management Division.
239
CITY OF TIGARD,OREGON
COMPUTATION OF LEGAL DEBT MARGIN
For the last ten fiscal years
2010 2011 2012 2013
Debt limit $ 232,145,773 $ 217,807,538 $ 207,504,714 $ 201,826,506
Total net debt applicable to limit 16,708,100 32,300,000 30,735,000 28,800,576
Legal debt margin $ 215,437,673 $ 185,507,538 $ 176,769,714 $ 173,025,930
Total net debt applicable to the limit
as a percentage of debt limit 7.20% 14.83% 14.81% 14.27%
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.
240
2014 2015 2016 2017 2018 2019
$ 210,982,614 $ 230,989,826 $ 242,482,552 $ 269,677,150 $ 296,512,995 $ 322,625,386
26,820,000 24,775,000 22,670,000 20,505,000 18,269,800 15,965,000
$ 184,162,614 $ 206,214,826 $ 137,195,419 $ 249,172,150 $ 278,243,195 $ 306,660,386
12.71% 10.73% 9.35% 7.60% 6.16% 4.95%
Legal Debt Margin Calculation at June 30,2018
True cash value(2018-2019) $ 10,754,179,526
Limit as a percent 3%
Debt Limit(as a percent of real market value) 322,625,386
Debt applicable to limit:
Gross bonded debt $ 16,903,013
Excludable debt-Bancroft improvement bonds,bond premium,
capital lease and commercial bank loan (938,013)
Debt subject to limitation 15,965,000
Legal debt margin-amount available for future indebtedness 306,660,386
Total net debt applicable to the limit as a percent of debt limit 4.95%
241
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
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 -
2019 54,758 16,094,594 28,419 780,000 -
*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.
242
Business-type Activities
Long-Term Percentage
Note Payable Notes Payable Revenue Total Primary of Personal Per
Debt Debt Bonds* Government Income** Capita
$ 529,978 $ 2,853,868 $ - $ 21,295,676 1.47% $ 447
270,925 5,953,868 - 39,846,536 2.72% 830
- 2,398,000 105,367,290 139,466,529 9.44% 2,881
- 2,293,486 104,896,687 136,956,986 9.21% 2,813
- 2,201,107 104,896,686 134,660,794 8.75% 2,670
- 2,105,957 139,643,153 168,457,409 10.87% 3,317
- 2,007,952 139,003,308 165,369,953 10.57% 3,227
- 1,907,007 136,420,282 160,271,117 10.12% 3,088
1,803,034 133,775,926 155,032,276 9.46% 2,887
- 1,695,942 131,055,591 149,654,546 8.95% 2,733
243
CITY OF TIGARD,OREGON
COMPUTATION OF WATER REVENUE BONDS
DEBT COVERAGE
For the last eight 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.
244
2015 2016 2017 2018 2019
$ 18,944,301 $ 20,918,497 $ 20,926,322 $ 23,078,014 $ 23,751,073
9,294 35,173 6,660 4,694 343,069
308,896 1,242,297 3,010,263 1,924,587 921,379
503,853 1,569,645 3,521,776 2,319,737 949,056
822,043 2,847,115 6,538,699 4,249,018 2,213,504
1,462,677 1,117,286 1,148,575 874,348 1,005,720
336,178 353,396 445,840 407,450 453,971
2,644,491 4,212,357 1,339,637 1,869,824 1,685,669
2,781,892 3,111,194 3,572,450 3,931,142 4,498,769
7,225,238 8,794,233 6,506,502 7,082,764 7,644,129
12,541,106 14,971,379 20,958,519 20,244,268 18,320,448
$ 11,719,063 $ 12,124,264 $ 14,419,820 $ 15,995,250 $ 16,106,944
$ 4,719,850 $ 4,719,850 $ 6,561,800 $ 6,561,050 $ 6,563,750
1,378,238 1,670,300 1,667,900 1,666,000
$ 4,719,850 $ 6,098,088 $ 8,232,100 $ 8,228,950 $ 8,229,750
2.48 1.99 1.75 1.94 1.96
245
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)
2010 47,595 $ 105,655 12,913 N/A N/A 9.7%
2011 48,035 107,402 12,688 N/A N/A 9.5%
2012 48,415 109,094 12,691 30,522 1,477,723 8.0%
2013 48,695 112,274 12,688 32,527 1,583,902 7.6%
2014 50,444 113,195 12,718 33,709 1,700,417 6.1%
2015 50,787 116,321 12,676 34,878 1,771,349 5.4%
2016 51,253 119,476 12,718 35,837 1,836,754 4.9%
2017 51,902 124,309 12,808 34,312 1,780,861 3.7%
2018 53,697 126,005 12,890 34,755 1,866,239 3.6%
2019 54,758 123,563 12,701 36,281 1,986,675 4.0%
Sources of Information:
(1)United States Census Bureau
(2)Tigard/Tualatin School District#23-J -City student totals not available
(3)Washington State University-Northwest Income Indicators Project
(4)US Department of Labor, Bureau of Labor Statistics
246
CITY OF TIGARD,OREGON
PRINCIPAL EMPLOYERS
For current year and nine years ago
2019 2010
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Tigard-Tualatin School District#23-J 779 1 2.87% 779 2 2.76%
Nordstrom 535 2 1.97% 579 4 2.05%
Conduent Commercial Solutions LLC 491 3 1.81%
Consumer Cellular 485 4 1.78%
Costco Wholesale Corporation 404 5 1.49% 300 7 1.06%
Macy's Department Stores 392 6 1.44% 704 3 2.49%
Oregon Public Employees Retirement 364 7 1.34% 396 5 1.40%
Comcast 314 8 1.16%
City of Tigard 295 9 1.09% 266 8 0.94%
Fred Meyer Inc. 268 10 0.99%
The Cheesecake Factory 250 9 0.89%
HSBC Card Services 948 1 3.36%
Providence Health System 377 6 1.34%
Home Depot 241 10 0.85%
Total 4,327 15.92% 4,840 17.14%
Source: City of Tigard Adopted Budget
247
CITY OF TIGARD,OREGON
PROPERTY VALUE AND CONSTRUCTION
For the last ten fiscal years
Fiscal Commercial Construction 111 Residential Construction(1)
Year Ended Number of Number of
June 30 Permits Value Permits Value
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
2019 12 68,338,543 205 83,341,594
(1)From City of Tigard Building Department. Multi-family permits are included in the number of permits issued for
residential construction.
248
CITY OF TIGARD,OREGON
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
For the last ten fiscal years
Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GOVERNMENTAL ACTIVITIES
Community services
Police 90.10 90.10 91.10 84.50 84.50 82.50 83.50 87.50 88.50 84.50
Library 38.80 38.80 38.80 34.80 34.80 34.80 38.30 39.70 40.90 38.80
Public works
Administration 9.35 9.75 8.75 9.00 9.20 9.20 9.00 9.50 9.75 9.00
Parks maintenance 9.75 9.75 9.75 9.75 9.75 10.75 11.67 12.17 10.40 10.50
Recreation - - - - - - - 0.33 2.35 1.00
Street maintenance 7.00 7.00 7.00 7.00 7.25 7.25 6.33 7.00 7.45 7.50
Healthy Streams - - - 1.00 - - - - - -
Engineering 11.80 11.80 11.80 12.00 13.00 14.00 14.00 17.00 19.00 19.00
Community development
Administration 2.00 2.00 3.00 2.00 2.00 2.00 3.00 3.00 3.00 3.00
Building inspection 6.24 7.20 8.10 7.80 8.80 9.00 9.00 13.00 13.00 13.60
Development Services(a) 7.56 7.80 5.90 4.80 3.80 3.80 3.80 - - -
Community Planning 7.00 7.00 9.00 9.00 9.00 9.00 9.00 13.50 13.50 12.65
Development Engineering(b) 1.60 - - - - - - - - -
Economic Development 1.00 1.00 1.50 1.00 2.00 2.00 2.00 2.00 3.00 2.00
Policy and Administration
City management 4.50 4.50 4.20 4.00 4.00 5.00 5.50 4.90 5.90 3.90
City attorney)c) - - - - - - - - - 1.10
Human resources 5.00 5.00 5.00 4.80 4.80 4.50 4.80 4.50 4.34 4.14
Information technology 7.00 7.00 7.00 6.30 5.80 7.00 7.00 8.00 9.00 9.00
Risk management 2.30 2.30 2.30 2.10 2.10 2.10 2.30 1.50 1.76 1.76
Finance administration 5.30 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.50 3.00
Financial operations 4.50 4.50 4.50 4.60 4.60 4.60 4.60 4.80 5.30 4.80
Utility Billing 5.50 5.50 6.30 6.50 6.80 6.80 6.80 6.80 7.20 7.20
Design&Communication 3.05 3.05 3.25 3.05 3.05 3.05 3.05 4.25 4.75 4.75
Contracts&Purchasing(d) - 2.30 2.30 1.80 2.00 2.00 2.00 2.00 2.00 2.00
City Recorder/Records 3.25 3.25 3.35 4.15 4.15 4.15 3.35 3.85 3.85 3.85
Municipal court 3.50 3.75 3.75 3.65 3.65 3.65 3.65 3.50 3.50 3.50
Fleet maintenance(e) 2.00 2.60 2.60 1.50 0.95 1.95 1.80 2.35 2.85 2.60
Property management(e) 4.25 4.25 4.25 3.75 3.85 4.85 5.20 4.90 6.55 6.65
BUSINESS-TYPE ACTIVITIES
Public works
Sanitary sewer 5.25 5.25 6.25 6.25 6.50 5.50 6.00 6.50 6.25 6.25
Stormwater 7.00 7.00 6.25 5.25 5.50 6.50 7.00 7.50 9.00 8.25
Water 13.00 12.00 12.75 12.50 12.00 13.00 13.00 13.00 11.25 12.50
Total 267.60 267.45 271.75 255.85 256.85 261.95 268.65 286.05 297.85 286.80
Source: City of Tigard Finance Department
(a) Development services was budgeted with Building in FY 2016-17.
(b) Development Engineering was budgeted with Capital Construction&Transportation as Engineering until FY 2006-07.
)c) City attorney was changed from a contract to an employee in FY 2017-18.
(d) Contracts&Purchasing was budgeted with Finance administration until FY 2010-2011.
(e) Fleet/Property Management budgeted with Public Works until FY 2015-16.
249
CITY OF TIGARD,OREGON
OPERATING INDICATORS BY FUNCTION/PROGRAM
For the last ten fiscal years
Functions/Programs 2010 2011 2012
GOVERNMENTAL ACTIVITIES
Community services
Police-number of traffic citations issued 9,101 7,021 8,308
Police-number of calls for service 51,158 49,358 52,226
Library-number of items in collection 216,110 237,110 244,154
Library-materials checked out each year 1,462,304 1,507,248 1,522,422
Public works
Acres of park land maintained 189 233 243
Crack sealing completed annually(linear feet) 160,000 160,000 160,000
Vehicles maintained to industry standard 160 149 149
Community development
Number of inspections(Tigard) 8,700 9,990 10,000
Number of permits(all types)in Tigard 3,025 3,220 3,047
Number of development applications 370 370 381
Policy and administration
Number of job applications 1,900 1,000 1,100
Laptops and computers to maintain 488 491 491
Insured value of city's real property(in millions) $ 82 $ 82 $ 82
Number of utility bills sent** 116,800 176,274 236,389
Average fine amount collected $ 90 $ 126 $ 126
BUSINESS-TYPE ACTIVITIES
Sewer
Miles of sewer lines cleaned 41 41 41
Miles of sewer lines video inspected 23 23 23
Stormwater
Miles of stormwater lines cleaned 31 31 31
Number of water quality facilities*** 72 90 90
Total number of catch basins cleaned*** 4,437 4,368 4,368
Water
Number of accounts 17,900 18,129 18,265
**City of Tigard started monthly utility billing in January 2011.
***GIS data improvement
Source: City of Tigard Finance Department
250
2013 2014 2015 2016 2017 2018 2019
8,939 7,177 6,462 5,745 5,057 5,260 5,972
52,420 48,840 47,247 43,299 41,874 42,075 42,482
250,454 245,000 248,225 253,725 229,344 238,919 220,877
1,459,334 1,385,376 1,280,376 1,243,774 1,159,446 1,227,561 1,216,642
248 253 255 301 301 305 306
160,000 160,000 160,000 160,000 107,727 262,659 92,400
148 157 160 146 162 152 156
12,500 12,382 9,009 10,814 27,551 25,793 17,540
3,049 3,404 2,958 3,860 4,281 4,189 3,776
357 341 251 388 818 843 876
2,500 2,000 2,100 2,200 3,726 2,605 3,393
503 523 525 530 585 593 601
$ 82 $ 82 $ 82 $ 82 $ 120 $ 122 $ 129
238,400 241,500 244,000 256,500 248,560 254,150 258,252
$ 140 $ 140 $ 160 $ 160 $ 149 $ 133 $ 119
42 42 42 42 51 57 59
24 21 21 24 23 29 30
32 21 21 21 23 20 26
125 126 126 126 133 138 143
2,768 2,840 2,840 2,917 3,939 2,620 2,737
18,350 19,207 19,737 20,500 21,509 21,764 21,920
251
CITY OF TIGARD,OREGON
CAPITAL ASSETS STATISTICS BY FUNCTION
For the last ten fiscal years
Functions/Programs 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
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 18 20 20 20 20 21 24 24
Acres of park and greenspaces 396.0 435.4 447.0 493.0 499.0 514.0 514.0 548.0 552.0 553.0
Miles of streets 150.0 150.0 150.0 150.0 150.0 150.0 150.0 157.0 175.7 175.7
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 162.8 164.5 166.1 166.9 166.9 166.9 168.0 168.3 168.5 168.7
Stormwater
Total miles of stormwater lines* 131.0 131.0 131.0 126.0 130.0 130.0 130.0 131.2 131.8 136.7
Number of water quality facilities* 79 92 92 125 126 126 126 164 210 240
Water
Water mains in miles 235.0 245.0 248.0 248.0 248.0 248.0 248.0 251.3 251.3 263.1
Number of reservoirs 13 13 13 13 13 13 14 14 14 14
Source:City of Tigard Finance Department
*GIS data improvement
252
CITY OF TIGARD,OREGON
MISCELLANEOUS STATISTICAL DATA
June 30,2019
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 67
Education:
- Attendance centers 16
-Number of teachers\FTE 725
-Number of students 12,701
Building Permits issued (2018-2019) 693
Recreation and culture:
-Number of parks 24 developed and 7 underdeveloped,totaling 31 at 306 acres
-Greenways 247 acres
-Number of libraries 1
-Number of volumes(estimated) 220,877
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.
253
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Audit Comments and
Disclosure Requirements
255
256
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257
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, 2019, and have issued our report thereon dated December 5, 2019. 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
Oregon Secretary of State. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the basic financial statements are free from material misstatement.
Compliance
As part of obtaining reasonable assurance about whether the City's basic financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, grants, including provisions of Oregon Revised Statutes as specified in Oregon
Administrative Rules OAR 162-010-0000 to 162-010-0330, as set forth below, noncompliance with which
could have a direct and material effect on the determination of financial statement amounts:
Instances of Non-
compliance
OAR Section Identified?
162-010-0000 Preface None Noted
162-010-0010 Definitions None Noted
162-010-0020 Introduction None Noted
162-010-0030 General Requirements None Noted
162-010-0050 Financial Statements None Noted
162-010-0115 Required Supplementary Information(RSI) None Noted
162-010-0120 Other Supplementary Information None Noted
162-010 0130 Schedule of Revenues, Expenditures/Expenses,and Changes in Fund Balances,/Net None Noted
Assets, Budget and Actual(Each Fund)
162-010-0150 Schedule of Property Tax Transactions or Acreage Assessments None Noted
162-010-0160 Schedule of Bonded or Long-Term Debt Transactions None Noted
162-010-0170 Schedule of Future Requirements for Retirement of Bonded or Long-Term Debt None Noted
162-010-0190 Other Financial or Statistical Information None Noted
162-010-0200 Required Disclosures and Independent Auditors Comments None Noted
162-010-0230 Accounting Records and Internal Control None Noted
162-010-0240 Public Fund Deposits None Noted
162-010-0250 Indebtedness None Noted
162-010-0260 Budget None Noted
162-010-0270 Insurance and Fidelity Bonds None Noted
162-010-0280 Programs Funded from Outside Sources None Noted
162-010-0295 Highway Funds None Noted
162-010-0300 Investments None Noted
162-010-0310 Public Contracts and Purchasing None Noted
162-010-0320 Other Comments and Disclosures None Noted
258
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 Oregon Secretary of State.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting
(internal control)to determine the audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the City'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 City'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 Oregon Secretary of
State, in considering the City's internal control and compliance. Accordingly, this communication is not
suitable for'any other purpose.
aaiL. (.4 -
For Moss Adams LLP
Portland, Oregon
December 5, 2019
259
® 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 the 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, 2019,
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 5, 2019.
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 City'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.
260
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 results of that testing, and not to provide an opinion on the effectiveness of the
City'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 City's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Nata /4-htma zzif
Portland, Oregon
December 5, 2019
261
® MOSSADAMS
Report of Independent Auditors on Compliance for the Major Federal Program
and Report on Internal Control Over Compliance 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, 2019. 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 program for the
year ended June 30, 2019.
262
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.
o,�r1 l411/gee LI/
Portland, Oregon
December 5, 2019
263
CITY OF TIGARD,OREGON
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the fiscal year ended June 30,2019
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 $ 902,409
Total Economic Development Cluster 902,409
U.S.Department of Justice
Direct:
Equitable Sharing Program 16.922 123,082
Direct:
Bulletproof Vest Partnership Program 16.607 1,600
Pass-through:
City of Portland,OR,Bureau of Police:
Economic,High-Tech,and Cyber Crime Prevention 16.752 2015-BE-BX-0005 3,551
Total U.S.Department of Justice 128,233
U.S.Environmental Protection Agency
Direct:
Brownfields Assessment and Cleanup Cooperative Agreements 66.818 4,350
Total U.S.Environmental Protection Agency 4,350
U.S.Department of Homeland Security
Direct:
Homeland Security Grant Program 97.067 8,313
Total U.S.Department of Homeland Security 8,313
U.S.Department of Transportation
Pass-through:
Metro
Federal Transit Formula Grants 20.507 933346 129,377
Federal Transit Formula Grants 20.507 1,794
Total Federal Transit Cluster 131,171
Pass-through:
Oregon Department of Transportation
National Priority Safety Programs 20.616 M1HVE-17-46-03 TPD 8,284
National Priority Safety Programs 20.616 OP-18-45-03-ZZZ 2,063
Total Highway Safety Cluster 10,347
Oregon Department of Transportation
Highway Planning and Construction 20.205 7,724
Workzone Safety 20.205 5,000
Total Highway Planning and Construction Cluster 12,724
Pass-through:
Oregon Impact
Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 M5HVE-17-12-20 7,803
Total U.S.Department of Transportation 162,045
Total Federal Financial Assistance $ 1,205,350
See the accompanying notes to the Schedule of Expenditures of Federal Awards.
264
CITY OF TIGARD, OREGON
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the fiscal year ended June 30, 2019
Note 1. Summary of Significant 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 2. 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, 2019.
Note 3. 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, 2019.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.
265
City of Tigard
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2019
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
266