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TCDA Packet - 12/15/2020 City of Tigard Tigard Workshop Meeting —Agenda TIGARD CITY COUNCIL,TOWN CENTER DEVELOPMENT AGENCY BOARD & LOCAL CONTRACT REVIEW BOARD MEETING DATE AND TIME: December 15, 2020 - 6:30 p.m. MEETING LOCATION: Remote participation only. See PUBLIC NOTICE below. PUBLIC NOTICE: In accordance with the City of Tigard's Emergency Declaration related to COVID-19 and Oregon House Bill 4212, this will be a virtual meeting where Council and staff will participate remotely. There will be no verbal public testimony during this meeting.Written public comment may be submitted electronically at www.tigard-or.gov/Comments. All comments must be submitted before 4:30 p.m. on the day of the meeting. VIEW LIVE VIDEO STREAMING ONLINE: http://www.tig-ard-or.go�tV hall/council meetin,)-. Workshop meetings are cablecast on Tualatin Valley Community TV as follows: Replay Schedule for Tigard City Council Workshop Meetings - Channel 28 Every Sunday at 12 a.m. Every Monday at 1 p.m. Every Wednesday at 2 p.m. Every Thursday at 12 p.m. Every Friday at 10:30 a.m. SEE ATTACHED AGENDA " City of Tigard Tigard Workshop Meeting—Agenda TIGARD CITY COUNCIL, TOWN CENTER DEVELOPMENT AGENCY BOARD & LOCAL CONTRACT REVIEW BOARD MEETING DATE AND TIME: December 15,2020 - 6:30 p.m. MEETING LOCATION: Remote participation only. 6:30 PM 1. BUSINESS/WORKSHOP MEETING 1. Call to Order- City Council,Local Contract Review Board&Town Center Development Agency 2. Roll Call 3. Pledge of Allegiance 4. Call to Council and Staff for Non-Agenda Items 2. CONSENT AGENDA A. APPROVE CITY COUNCIL MINUTES: •July 7, 2020 •July 21,2020 •July 28, 2020 •August 4, 2020 B. APPROVAL OF UTILITY BILL CREDIT FOR SUMMER CREEK APARTMENTS C. Local Contract Review Board: 1. CONSIDER A CONTRACT AWARD TO PRECISION LOCATING, INC. FOR UTILITY UNDERGROUND LOCATION SERVICES 3. RESOLUTION OF THANKS RECOGNIZING COUNCILOR ANDERSON 6:35 p.m. estimated time 4. CONSIDER LEASE AGREEMENT FOR SENIOR CENTER WITH MEALS ON WHEELS PEOPLE 6:45 p.m. estimated time 5. PRESENTATION OF EXTERNAL FINANCIAL AUDIT BY MOSS ADAMS & COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) 6:50 p.m. estimated time 6. CONSIDER A RESOLUTION TO APPOINT AUDIT COMMITTEE MEMBERS 7:20 p.m. estimated time 7. CONSIDER A RESOLUTION TO APPOINT TOWN CENTER ADVISORY COMMISSION MEMBERS 7:25 p.m. estimated time 8. TOWN CENTER DEVELOPMENT AGENCY: DISCUSS SUBSTANTIAL AMENDMENT TO CITY CENTER PLAN 7:30 p.m. estimated time 9. BRIEFING ON TRAFFIC CONCERN REVIEW PROCESS AND POTENTIAL 20 MPH SPEED ZONES 7:55 p.m. estimated time 10. NON AGENDA ITEMS 11. ADMINISTRATIVE REPORT 12. EXECUTIVE SESSION 8:25 p.m. estimated time The Tigard City Council will go into Executive Session to discuss employment of a public officer under ORS 192.660(2)(a). All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 13. ADJOURNMENT 9:55 p.m. estimated time AIS-4497 A. Workshop Meeting Meeting Date: 12/15/2020 Length (in minutes): Consent Item Agenda Title: Approve City Council Meeting Minutes Prepared For: Carol Krager, Central Services Submitted By: Carol Krager, Central Services Item Type: Motion Requested Meeting Type: Consent Agenda Public Hearing: No Publication Date: Information ISSUE Approve City Council meeting minutes. STAFF RECOMMENDATION / ACTION REQUEST Approve minutes as submitted. KEY FACTS AND INFORMATION SUMMARY Attached council minutes are submitted for City Council approval: •July 7, 2020 •July 21, 2020 •July 28, 2020 •August 4, 2020 OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Ly 7, 2020 Meeting Minutes Tuly 21, 2020 Meeting Minutes ,Tule 28, 2020 Meeting Minutes August 4, 2020 Meeting Minutes City of Tigard City Council Business Meeting Minutes July 7, 2020 1. BUSINESS MEETING A. At 6:30 p.m. Mayor Snider called the Tigard City Council meeting to order. B. City Recorder Krager called the roll. Present Absent Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ Youth Councilor Calderon ✓ Council President Goodhouse ✓ Councilor Newton ✓ C. Mayor Snider asked everyone to mute their mics and join him in the Pledge of Allegiance at home. A flag was projected on the screen. D. Call to Council and Staff for Non-Agenda Items—None 2. PUBLIC COMMENT A. Follow-up to Previous Public Comment—None. B. Public Comment—Written Mayor Snider summarized the 7 public comments received by the 4:30 p.m. deadline. Councilor Newton noted there were two requests to make mask wearing voluntary, and she remembered that the city can be more stringent. City Attorney Rihala confirmed that as a public place, the city must comply with the Governor's orders and can be more stringent, but not less so. Staff has stricter mask wearing requirements and for public places mask wearing is mandatory. 1. Ruppert Reinstadler—Statement that systemic racism does not exist 2. Ms. Perry—Illegal Fireworks, fireworks in general 3. William Lewis—Fireworks 4. Cherokee Schill—More testing needed for COVID-19 5. Fioktista D'Souza—Make wearing of masks voluntary,not mandatory 6. Jennifer N. Arns—Make wearing of masks voluntary, not mandatory 7. Brian Murray—Lowe's manager not wearing a mask TIGARD CITY COUNCIL MEETING MINUTES —July 7, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 1 of 10 C. Public Comment—Phone-In—None. 3. CONSENT AGENDA (Tigard City Council): A. CONSIDER CONTRACT AWARD FOR COOK PARK ARTIFICIAL TURF INFIELD PURCHASE AND INSTALLATION Councilor Lueb commented that she was very excited about this project and noted that the Tigard Little League had done a lot to advocate for it. She mentioned benefits such as the environment that the kids will get to play on and the potential for hosting tournaments. Councilor Lueb moved to approve the consent agenda. Councilor Anderson seconded the motion. Mayor Snider asked City Recorder Krager to conduct a roll call vote and the motion passed unanimously. Yes No Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ Council President Goodhouse ✓ Councilor Newton ✓ 4. CONSIDER RESOLUTION APPOINTING TIGARD LIBRARY BOARD MEMBER AND ALTERNATE. Library Director Bernard gave the staff report. Due expiring terms, the Library went through a recruitment process for the appointment of new members. She and Councilor Lueb participated in virtual interviews of four candidates on May 28. They were very impressed with the level of engagement and enthusiasm and are very appreciative of how invested the Tigard community is in their Library. Jim Ivier was selected as a voting member and Helen Allen was selected as an alternate. Biographies of each member are included in the packet for this meeting. Mayor Snider thanked them for their interest in serving and said under normal conditions he would be shaking their hands and presenting them with a City of Tigard pin,but under current circumstances he would congratulate them virtually. Councilor Lueb expressed her appreciation for the enthusiasm and perspectives these members bring to the Library Board. She moved to approve Resolution No. 20-39 and Councilor Newton seconded the motion. City Recorder Krager read the number and title of the resolution and conducted a roll call vote. Resolution No. 20-39 -A RESOLUTION APPOINTING JIM IVLER TO THE TIGARD LIBRARY BOARD FOR A TERM OF FOUR YEARS,AND APPOINTING HELEN ALLEN AS AN ALTERNATE FOR A TERM OF TWO YEARS TIGARD CITY COUNCIL MEETING MINUTES —July 7, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 2 of 10 Yes No Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ Council President Goodhouse ✓ Councilor Newton ✓ Mayor Snider offered an opportunity for the new members to speak and introduce themselves. Jim Ivler said he was pleased to be a City of Tigard resident and particularly to be a member on the Library Board. Helen Allen thanked Council for the opportunity and said she looked forward to learning more about the Library Board and becoming an active member of the Tigard community. 5. CONSIDER RESOLUTION APPOINTING A MEMBER TO THE WATER ADVISORY BOARD (WAB) Public Works Executive Manager Goodrich gave the staff report. He said this at-large citizen member position is a new position on a relatively new board. The Water Advisory Board (WAB) replaced the former Intergovernmental Water Board and advises the City Council on significant water service issues. It consists of three governmental board members appointed by their respective jurisdictions (Tigard Water District, City of Durham and City of Tigard), and two at- large members that represent the general interests of the Tigard Water Service Area, one representing Tigard and the other representing the area outside of the city but still within the water service area. The WAB governing members conducted interviews on December 12, 2019 for the out-of-city at-large member. A decision was made April 8 to bring on the member for a term ending December 31, 2020. After the interviews were held, a decision was made to define the service period from the present to December 31, 2021. Marie Walkiewicz, from the High Tor area was selected for appointment. Staff recommends approving a resolution to appoint Ms. Walkiewicz as the at-large, outside the city WAB member. Council Discussion and Consideration: Resolution No. 20-40 Councilor Lueb said she was excited to welcome Ms. Walkiewicz to the WAB as she has extensive knowledge of water facilities and will bring a great perspective to the Board. She noted that there is still another position open for an at-large,within the city member and she encouraged anyone who is interested to apply. Councilor Lueb moved to approve Resolution No. 20-40. Council President Goodhouse seconded the motion. City Recorder Krager read the number and title of the resolution and conducted a roll call vote. Resolution No. 20-40—A RESOLUTION APPOINTING MARIE WALKIEWICZ AS AN AT-LARGE MEMBER OF THE WATER ADVISORY BOARD REPRESENTING THE INTERESTS OUTSIDE OF THE CITY BOUNDARY Marie Walkiewicz attended the meeting virtually and said she appreciated Councilor Lueb's support. She said she is excited to be participating on the Water Advisory Board and support the community in this way. Mayor Snider welcomed her and asked Public Works Executive Manager Goodrich to make sure she gets a City of Tigard pin. TIGARD CITY COUNCIL MEETING MINUTES -July 7, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 3 of 10 Yes No Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ Council President Goodhouse ✓ Councilor Newton ✓ 6. CONSIDER APPROVAL OF A CONTRACT FOR RIVER TERRACE WEST AND SOUTH CONCEPT PLANNING Purchasing Manager Moody and Senior Planner Warren presented this agenda item requesting approval for the award of a contract to OTAK for River Terrace West and South Concept Planning in the amount of$499,008. Purchasing Manager Moody said in March the city issued a qualification-based request for proposals. On April 14, four responses were received. Staff reviewed and scored the proposals on the following criteria: Project understanding, approach and interest; consultant team qualifications and organization; consultant team experience with similar projects; and diversity in contracting. Two firms were then asked to submit pricing proposals. The selection committee concluded that OTAK had the highest ranked proposal and was the best qualified to do this work. Senior Planner and Project Manager Warren said the River Terrace West and South Concept Planning Project is an important first step in setting the vision for the two urban reserve areas known regionally as Roy Rogers West and East. This project is timely and aligns with other projects planned for future sewer and transportation infrastructure in the area, as well as concurrent work to develop the community plan for King City West which will rely on critical infrastructure connections to River Terrace South. In addition,it provides the city with an opportunity to become one of the first in the state to plan for a broad diversity of housing options in a large-scale greenfield development, after the passage of HB2001 and HB2003 and the city's own housing options amendments. This opportunity is intricately tied with Tigard and King City's mutual goal to foster a diverse, equitable,walkable and sustainable neighborhoods. This meets Strategic Plan Goal 2 to make sure development meets the vision, and Council Goal 3 to secure outside resources to perform this work.The contract is supported by Metro and the city's contract with Metropolitan Land Group. City staff recently applied for and received a $60,000 grant from the Department of Land Conservation and Development that will cover the costs of the required Housing Needs Analysis that will be performed as part of this project. Councilor Newton said she was concerned that public safety was not identified as part of the analysis and asked when it would be considered. Senior Planner Warren clarified that by public safety Councilor Newton meant fire and police response. She said it is a very large area and she was curious when in the process the provision of these public services would be factored in. Mr. Warren said the concept plan is a very high-level vision document that sets out general land use parameters in accordance with criteria in Metro's Urban Growth Functional Plan. Public safety is not one of the criteria they looked at but as plans get more detailed, staff will consider how fire and police services will be provided. TIGARD CITY COUNCIL MEETING MINUTES -July 7, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 4 of 10 Councilor Lueb asked for confirmation the city would not get to the end of the concept plans for River Terrace South and West and find it did not focus on the employment lands. Senior Planner Warren said a market analysis would be done as part of the concept planning process for both residential and commercial uses. This will give a better idea of how many acres of employment land we might be able to include in both South and West River Terrace. He said we can include some supported commercial areas in River Terrace South even as part of the mid- cycle application under Metro's criteria. How much is yet to be determined, as he believes Tigard would be the first city to go through a mid-cycle process. Councilor Anderson said OTAK has an excellent reputation and thought it was a great selection. Councilor Anderson moved to approve the contract for River Terrace West and South Concept Planning. Council President Goodhouse seconded the motion. City Recorder Krager conducted a roll call vote. Yes No Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ Council President Goodhouse ✓ Councilor Newton ✓ Mayor Snider announced that the motion passed unanimously. 7. DISCUSSION ON RACIAL JUSTICE AND CITY ACTION Mayor Snider apologized for his draft not being completed and distributed earlier. Because Council did not have much time to read through it, tonight would be an initial discussion and questions and additional feedback could be considered next week. He noted that the city's Anti- Racism Action Plan will be introduced by City Manager Wine and the Leadership Team tonight. Council also received a copy of the city's communications compilation which totaled almost 450 to 500 comments via phone, email, Facebook events and other opportunities for feedback. Mayor Snider called attention to a few significant changes he agreed to after receiving feedback: • Change 1: In the section on the Transformation Commission (last bullet point) Change language to "5 residents from the community at large,preference to those who can best represent people of color."This was suggested by a representative of the black community. • Change 2: A training title change.The DPSST History of Racism in Oregon training is actually called Police Legitimacy and Procedural Justice training. Council President Goodhouse said he had not had a chance to read through all of the draft today but commented that it seemed to be focused on safety and asked if the focus would expand to other areas too. Mayor Snider directed him to the second paragraph in the background section which calls out that in addition to public safety, similar community input and a draft framework will be needed for all other areas of city operations. TIGARD CITY COUNCIL MEETING MINUTES -July 7, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 5 of 10 Councilor Newton thanked the Mayor for taking his time to develop this. She liked the idea of a committee but is concerned that they might get tripped up in the appointment of members and Council needs to make sure that process goes smoothly. She agreed that the topics are the issues the city has heard from the community,but as the commission moves along, they might come up with or hear about others, so some topics might evolve into other areas. She suggested that after having examined the issue, the committee might decide to focus on pulling over people to educate them on cell phone violations instead of having traffic officers conduct traffic stops for minor infractions. Youth Councilor Calderon advised not taking out the requirement for people of color (POC), but to lower it. He said POC will feel more comfortable if they see others on the committee. He asked whether the current year's five members would have autonomy to select those for the next year or would they be chosen by the city. Mayor Snider said the current structure is that the broader group of stakeholder community advisors would select the current commission members. He said that was in response to feedback that a broader group should have influence on who is chosen. Youth Councilor Calderon suggested Council could create a survey to send back to people who send in emails about racial justice. Mayor Snider asked Youth Councilor Calderon to put his suggestions in an email and said he will add this to the commission's work to consider. Councilor Lueb thanked Mayor Snider for sorting through all the comments. She said the document is very detailed and is overwhelming to sift through and pick out big areas for the commission to address. She liked the idea of having them select the items to begin with and have sub-groups work within the commission to make recommendations. She added that this was a lot for one committee to tackle. She said allowing opportunities for experts to weigh in supports the city's mission to make data-driven decisions. Councilor Lueb suggested having an odd number of members if they are going to be voting. Mayor Snider replied they could debate whether to have an odd number or use a consensus system such as requiring 10 of 12, for example. Councilor Anderson said it was a good start and he had no issues with the commission structure. He added that Council will dig into the proposal more this week and gave kudos to Mayor Snider for compiling the information. Mayor Snider asked if the Council members were fine with him editing the document tonight and getting it out into the community for reaction soon, or did they prefer he wait until next week. Councilors agreed it was a good idea to make it available now. Councilor Newton suggested listing Council's questions for community comment as well. Council President Goodhouse asked what the public input process would look like during commission meetings. Mayor Snider said the purpose of the transformation commission community advisor section on page 2 is to require that they loop back to the broader group of people and listen to their feedback. He did not think it would be functional for the commission to take public testimony at every meeting, but he will add this to the list of things the commission could consider. Youth Councilor Calderon agreed with getting input from the public as soon as possible. He referred to Council President Goodhouse's concern about public input and said all five TIGARD CITY COUNCIL MEETING MINUTES —July 7, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 6 of 10 community members should be conducting regular listening sessions. The Youth City Councilor and Black Student Union President from Tigard High School will also be seeking feedback from students. He felt these listening sessions would cover getting the public input. Mayor Snider asked for staff input on the draft. City Manager Wine noted that people watching this meeting may not know what document is being discussed so she wanted to give some background. She said Mayor Snider put together a proposal for a transformation commission that Council just commented on. She said the community should also know that work has been proceeding on the city's administrative side to become an anti-racist organization and develop an Anti-Racism Action Plan. Given time constraints there would not be a presentation tonight, but Leadership Team members will share later a little about the work they have been doing. She noted that the Leadership Team met today and had some feedback on the proposed commission. They think this approach can be an effective step towards becoming an anti-racist organization if done well. City Manager Wine offered staff feedback in three areas: 1. Have an approach that includes learning about institutional racism. Include what it is and how it presents in Tigard. The city needs informed recommendations on these issues, and it may take time for the commission to become informed. 2. A facilitator will help guide the work.A lot of advice received by the city is coming from those already comfortable with accessing city government through technology. It is inherently inequitable to only respond to feedback in that way. There is a technology divide and the Leadership Team recommends attention be given to avoid preventing participation from those not comfortable with electronically accessing the city. Facilitators can help develop a process to resolve conflict and balance opinion and fact. 3. Focus on things that the City of Tigard actually has the authority to change, such as hiring practices,workforce diversity or requiring police body cameras. She said they were struck by how the focus has been on police services,which is out of balance with other city departments. All city departments are working on ways they think institutional racism might be presenting in the departments and figuring out what needs to change. Their hope is that the Anti-Racism Action Plan encompasses things that can happen across the entire city. She added that the police chief,police union, city attorney and municipal judge will want to offer feedback on the proposal too. Mayor Snider said he recognizes that this is focused primarily on public safety,but that is what almost all the hundreds of public communications were about. There were a few things to think about more broadly that were not mentioned by the public comments like how our community development policies and plans play into preventing food deserts, for example. He tried to be thoughtful about including things that the city had in its control, but also thought it important for this commission to push and explore the grey areas. If 80 percent of a desired outcome is within our control but 20 percent is not, he did not want them to be limited by the 20 percent. Part of this is the community coming to an understanding about what we can and cannot change. He said he wanted to get feedback from other councilors on this. Youth Councilor Calderon commented that the commission should not be limited and should be allowed to openly discuss whatever they want. TIGARD CITY COUNCIL MEETING MINUTES -July 7, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 7 of 10 Councilor Lueb said it is important to have these discussions as a community regardless of whether the city can change it. She said this will help guide the city on advocacy on state or even federal policies. Councilor Anderson thought they can discuss whatever topic that comes up but as an advisory committee they can only bring things forward the city can accomplish. Council President Goodhouse said both areas should be focused on with priority to things the city can do but he noted that the city regularly weighs in on things with the League of Oregon Cities,National League of Cities or state and federal representatives. He suggested letters of support be sent regarding state and federal policies or laws they want to see changed. Councilor Newton thanked City Manager Wine for her thoughtful comments. She said in terms of topics there is a practical matter that some things are outside of the city's purview and it is important for the commission to know this. If the commission wants to take some of these things on that is their decision but we should educate them on what is in the city's control, so they are mindful about expectations. City Manager Wine said since early June the Leadership Team has been committed to striking a balance between taking action and examining what it is the city can change. She said that staff needs to develop the skills to lead in this area.Although statements have been made to the contrary, the purpose of the Anti-Racism Action Plan is to acknowledge that systemic racism exists, actions we have taken perpetuate it and we need to develop tools to act.We need to look at all city services and the way we interact with the community. Assistant City Manager Nyland said the proposal that the Leadership Team and staff are working on will always be evolving. We are capturing thoughts and possibilities now,but this will be an ongoing conversation. As we proceed with department plans and programs,we hope to always view them through an equity lens.This is a document that we will always return to and constantly update. Finance and Information Services Director LaFrance echoed that one thing the Leadership Team has been doing is striking a balance between learning and action. They recognize that there is more that they don't know than they do know about institutional racism.A major part of the draft Action Plan involves a list of specific actions we feel are things we can do in the near term. We hope to make some progress with those actions at the same time we are learning. Central Services Director Robinson said the public looks at court as being the city's overall judicial system. For her it is important that the city examine how policies and rules impact POC within our community and we are looking at what we have in place to make sure we are not negatively impacting POC. Changes with presumptive fines have already occurred. She said although it seems small and incremental, she reassured Council that court is moving forward. Councilor Newton referred to comments about reviewing services through an equity lens. How is that work moving forward developing that lens for review of services. City Manager Wine said we are in step one,which is figure out what we need to learn.We will not develop an equity tool on our own. She said they will use a facilitator to move through this process. TIGARD CITY COUNCIL MEETING MINUTES -July 7, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 8 of 10 Council President Goodhouse said he was glad staff are looking at all parts of the organization and he understands that it is a work in progress. Councilor Anderson said at first blush it is a good document;he was glad Assistant City Manager Nyland mentioned that it is a working document. He said there are regional, county and state changes that will affect this. Housing and economic equity are regional issues but there are things the city can do too. Councilor Lueb echoed what Councilor Newton said. What struck her was that we are engaging someone to help us and won't expect POC to teach us or to solve a problem that was not created by white people. She supports bringing in outside help to help us understand barriers and figuring out if there are community members that we're not reaching. She said it was important to acknowledge that sometimes those writing the policies do not see the roadblocks created by those policies. She applauded the Leadership Team for each of them taking individual responsibility for personal growth and learning opportunities. She said she hoped the Council would be doing this personal work as well. Youth Councilor Calderon said he hoped everyone on the Leadership Team and in the city is reflecting on what we know and what we do not know. He liked that everyone on the Leadership Team specific ideas on how to educate themselves. He noted that watching the 13th documentary that is on his list of things he intends to do too. Mayor Snider asked that as major changes are made to this document,it gets shared with Council. He said presentations were not necessary,but they would appreciate updates. 8. ADMINISTRATIVE REPORT City Manager Wine reviewed the city's approach to the Federal CARES Act, saying a reimbursement from Washington County is coming soon. Tigard's share is $1.5 million which will recapitalize the assistance grant program.There have been several phases of Tigard CARES and we are now in Phase 4 and will be able to extend assistance to minority-owned businesses. The hope is that the city would be disbursing funds to existing,waidisted and new businesses. She asked for Council confirmation on this direction. Council President Goodhouse asked for clarification on eligibility criteria. Economic Development Manager Purdy said in the first round, 38 percent were minority-owned, and staff wants to improve on that percentage. Community Development Director Asher realized we could look at geographic equity and focus on underserved or disadvantaged neighborhoods where there are businesses, because helping them to remain open helps to stabilize neighborhoods. He said the priority is businesses already being funded because this can improve upon the funding. And then we turn to the wait list of 250 firms that have expressed need. And then if there is still funding it will be opened to another round of solicitation. He said we cannot fund everyone. Priorities included firms experiencing a higher impact from COVID- 19, rather than firms just experiencing a slowdown, Council President Goodhouse asked if some of the funding will pay the City back for what it has spent. Mr. Purdy said this $1.6 million is all based on the Washington County contract and will go back into the grant program. $150,000 will be paid as reimbursement and does not have to be granted to small businesses. TIGARD CITY COUNCIL MEETING MINUTES —July 7, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 9 of 10 Councilor Lueb asked if in the next round would grants be higher based on the number of employees. Economic Development Manager Purdy said it was $2,500 for sole proprietors,no storefront; $5,000 for an entrepreneur with a storefront and 1-3 employees and $7,500 for businesses with a storefront and up to 4 employees. He said the crisis continues to unfold and for a lot of people it is hard to feel they can go out and spend money. This will help businesses that are really struggling now. Mayor Snider commented that better advertising efforts need to be made to make sure businesses are not frustrated about lack of clarity about priority or that important minority- owned businesses do not hear about the program. Mr. Purdy replied that was on staff's radar and cautioned that the city was still not going to be able to fund everyone requesting a grant. Councilor Newton appreciated that there is a method in place to get these funds out as quickly as possible. 9. NON-AGENDA ITEMS -None 10. EXECUTIVE SESSION -None scheduled 11. ADJOURNMENT At 8:09 p.m. Councilor Lueb moved for adjournment. Council President Goodhouse seconded the motion. City Recorder Krager conducted a roll call vote and the motion passed. Yes No Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ Council President Goodhouse ✓ Councilor Newton ✓ Carol A. Krager, City Recorder Attest: Jason B. Snider,Mayor Date: TIGARD CITY COUNCIL MEETING MINUTES -July 7, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 10 of 10 City of Tigard City Council Workshop Meeting Minutes July 21 , 2020 1. BUSINESS MEETING A. At 6:30 p.m. Mayor Snider called the Tigard City Council Workshop Meeting to order. B. City Recorder Krager called the roll. Present Absent Council President Goodhouse ✓ Councilor Newton ✓ Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ Youth Councilor Calderon ✓ C. Mayor Snider asked everyone to mute their mics and join him in the Pledge of Allegiance. A flag was displayed on the screen. D. Call to Council and Staff for Non-Agenda Items—None. 2. PUBLIC COMMENT A. Follow-up to Previous Public Comment—None. B. Public Comments—Written Mayor Snider summarized the public comment received from David who wrote that the Transformation Commission members need to read and understand the U. S. Constitution as it is the foundation for the country and the supreme law of the land. Mayor Snider said he would take that feedback and incorporate it into future discussions about the Commission. C. Public Comment—Phone-In—None. 3. RECEIVE PRESENTATION FROM COMMUNITY PROVIDERS ABOUT EMERGENCY SHELTER COVID-19 RESPONSE Kim Marshall,Project Homeless Connect; Katharine Galian, Community Action Association; Vernon Baker,Just Compassion, and community volunteer Mike Espig gave a presentation on services to the homeless and their organizations' emergency shelter response to COVID-19. Ms. Marshall said during the 77 days they were open they sheltered 291 homeless people, including 15 veterans and 66 people with disabilities. They opened three congregate shelters to make sure their homeless friends were safe and clean and not worrying about COVID. This was made possible by Oregon Housing and Community Services. Washington County was able to take over a hotel to quarantine those that had tested positive for COVID. The county will file TIGARD CITY COUNCIL MEETING MINUTES —July 21, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 1 of 11 for FEMA support.When shelters closed on June 11, 13 individuals were able to transition into permanent housing,while others are still on the path to housing. Vernon Baker from Just Compassion said that before the COVID-19 pandemic, shelter was provided by eight faith-based and non-profit service providers, each one open 1-2 nights a week. When COVID arrived, most shelters closed and homeless people had to move around the county and seek shelter on a first come, first served basis. This made tracking and contact difficult and guaranteed that job locations and shelters were not co-located. Community volunteer Mike Espig said through united effort, community involvement and coordinated intake they tried to identify permanent shelter options so people would not have to go back and forth between one shelter and another. Katharine Galian, from Community Action Association said one benefit has been the realization that these are not new ideas. Barriers to leaving a homeless existence are the instability of not knowing where you will be, sporadic communication due to phones not working, adequate support for mental health and substance abuse, and environmental stressors. Logistics are more difficult when individuals are moving around the county. Two stories were shared about how agencies worked together to help two chronically homeless individuals who were vulnerable to fraud,predation and health issues while on the streets. Community-wide efforts helped them move off the streets and into stable and healthy living situations. Community volunteer Espig said cold winter months are approaching and they want to have a local shelter in south Washington County so the local homeless population can stay and not have to move to a different shelter every night. He said preparation for this winter should start now. Mayor Snider thanked the four presenters and the hundreds of people they represent who are working under challenging conditions normally, and now have the COVID epidemic added to that. He asked if there was a specific ask to the Council. Kim Marshall said the key thing they took from the experience over the past 77 days is how agencies, cities, and organizations can work together in an intense collaboration to accomplish a lot of good things. She asked Council to look towards the colder weather. Mayor Snider said he did not think the timing of the recently passed Metro measure could help before this winter but asked if it meant things could get started now to be ready when the funding starts to come in. Ms. Galian said since the funding will not be available until 2021 and there are people right now in the middle of the pandemic with no place to go.What is needed are risk mitigation efforts, such as additional shower trucks,bathroom access,places to access phones and computers to look for jobs or obtain identification. They want to start to be out there in the community building relationships and when assets come in and housing units come on line, they have relationships in place and can move people right in. Supportive service funds need to go with the housing once the units are open. There will still be the need for emergency shelters. Councilor Lueb thanked them for their insightful presentation and report. She asked how many individuals were turned away because of lack of capacity in the shelters or the hotel that was specifically for COVID positive. Ms. Galian said no one was turned away from the hotel. There TIGARD CITY COUNCIL MEETING MINUTES -July 21, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 2 of 11 was a process for people not well enough to be in a congregate environment.As far as for individuals turned away from shelters, there was a wait list. However, there was some capacity each night due to people not coming in that night. If the moratorium on evictions is lifted on September 30, they are anticipating more need for families losing their homes. Youth Councilor Calderon thanked them for the fantastic work and said the report was very detailed. Council President Goodhouse thanked them and said he is on the board of Family Promise and is aware of the great need for housing. He asked how people could donate food,items or money. He asked what the best resources are for single people needing housing. Ms. Galian said there are full time shelters for families and victims of domestic violence,but no full-time,year around place for single women or men. She said they have a coordinated entry system for Washington County that people can call 503-640-3263 to find the emergency housing that is best suited to their needs. Vernon Baker said Just Compassion,which is located in Tigard,is accepting donations,but they request a call first 503-624-4666 to make sure it is something that is needed. Councilor Anderson asked about the severe weather shelter for the winter. Mr. Espig said they are working with Washington County to find a 7-days a week location in southern Washington County. Ms. Galian said their ask of the City of Tigard is to help with removing barriers to those locations. Mayor Snider asked if a staff member could assist with siting and other requests to help in this interim period before the Metro funding is available. City Manager Wine will pass this along to Senior Planner Warren. Councilor Newton suggested bringing this into the upcoming Council goal-setting session, since Council is interested in working on street outreach in the short term. She said it might be worth another conversation to discuss more street outreach. Ms. Marshall thanked Councilor Newton for her participation. Some of our homeless friends prefer to stay outside so it is critical to be there to offer food,water, sanitation. Officers in Hillsboro are going out with outreach workers and engaging with campers and other homeless. Mayor Snider said they can count on Tigard doing everything they can in the next six-nine months. 4. RECEIVE UPDATE ON SOLID WASTE FRANCHISE FEES AND CHARGES AGGREGATE REPORT Public Works Executive Manager Goodrich presented the staff report and slide presentation. He noted that consultant Chris Bell and representatives from both solid waste franchises serving Tigard, Kristin Leichner from Pride Disposal and Dean Kampfer from Waste Management were in the meeting. He outlined goals and objectives of the Tigard Municipal Code and franchise agreements. Chapter 11.04 provides how solid waste and recycling are to be managed and grants exclusive franchise and service areas to Pride Disposal and Waste Management. The TMC is the agreement between the city and the franchisees.Agreements are automatically renewed on TIGARD CITY COUNCIL MEETING MINUTES —July 21, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 3 of 11 January 1 of each year for a term of seven years. Council can suspend,modify or revoke agreements under certain conditions. The city receives a franchise fee of 5% of gross cash receipts. Rates charged by the franchisees are set by the Council. An annual financial report and rate review process is established in the Tigard Municipal Code (TMC) and the revenue target is between 8% to 12%,with 10%being optimum. If the aggregate profit margin falls below 8% or exceeds 12%, Council considers rate adjustments to meet the target 10%, based on the Cost of Service Analysis (COSA). But if no COSA is conducted within a 6-year period, a COSA is automatically performed with recommendations to Council. Mr. Goodrich said franchise objectives are to: • Achieve waste recycling recovery goals established by the city,Washington County, Department of Environmental Quality and Metro. • Ensure reliably safe accumulation, storage, collection, transportation, disposal or recycling recovery of solid waste. • Ensure a dependable and financially stable waste collection, recycling recovery and disposal service. • Base rates on cost of service to provide just, fair,reasonable and adequate revenues necessary to provide service to the public. • Provide service in a sustainable manner to conserve energy and material resources. • Eliminate overlapping services to reduce traffic impact,improve air quality and reduce noise. • Provide solid waste recycling recovery opportunities to the public. Rate Review Process Financial Consultant Bell addressed said the rate review process in Oregon is unique and requires franchise haulers to submit an annual report, due on March 15 in the Portland metropolitan area. These reports give substantial insight into their operations. The reports are required primarily to ensure rates are reasonable and adequate to provide the service that the city deems necessary. He said he would not call it an audit because an opinion is not given, but there is a crucial review of the information to make sure the rates are reasonable, and services are adequate. Predictive tests are done on revenue to ensure that the revenues are reasonable for the number of reported customers. The two biggest expenses are the cost of disposal, and over the last few years processing recyclable materials, and labor. For Tigard's analysis, staff and consultants compare costs to other areas near Tigard. Then a composite rate is calculated for what it costs to provide this service to Tigard. The year 2019 was better than 2018 and expectations were high until the business shutdown due to the pandemic. For 2019 franchise revenues were right in line with a targeted return of ten percent. Currently,it is not known what the impact of COVID-19 will be. Many businesses have stopped pickup service. Haulers are expecting increases in bad debt as customers fall behind or go out of business. Metro also has a pending increase to their tipping fee effective on July 1, to be in line with city fiscal years. They did not do that this July but have recently said they will increase their tipping fee by$8.85 (with $3.75 passed back in a regional system fee and$5.10 assessed at their operational level). Both haulers in Tigard utilize their own transfer stations but will still be incurring increased costs because Metro sets their transfer station fees and controls the number of tons that can be taken in at these transfer stations. Waste Management's transfer station is in TIGARD CITY COUNCIL MEETING MINUTES —July 21, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 4 of 11 Forest Grove and Pride's is in Sherwood. The flow of those tons dictates how much the companies will have to charge. When tons are reduced to the transfer stations,their costs go up. Mr. Bell estimated that the increase in Metro's regional system fee, tipping fee and reduction in tonnage will lead to the overall tipping fee going to $108.50 to $110 per ton,which could be an increase of$5-7 per customer. Drop Box Service During the last discussion on franchise rate review, a question came up from Council about allowing open market drop boxes. Drop box services are currently managed in one of three ways: • Right now, the city has a regulated franchise and limits the service providers but guarantees the rates and service. It is non-discriminatory and anyone requesting it from their respective hauler will get one. • The City of Portland, for example, allows a competitive market with numerous haulers providing drop box services. Residents and businesses determine what company they want to go with. There is not a standard rate and rates can change daily. Service and rates are not guaranteed. Rates for one-time or occasional use can be much higher than what contractors are charged because contractors use more services than homeowners. • A third alternative is a hybrid system as used in Gresham. If you have pulled a building permit,you can go outside the franchise and find any provider you want to provide the service. This is the only exception. If you have wet waste do not have a building permit you must obtain drop box service from your respective hauler. Mr. Bell showed a slide comparing drop box costs and fees for each system in Tigard, Gresham and Portland. He used Waste Management rates because they provide service in all three jurisdictions and there is quite a range in total cost. He noted that Portland has other stipulations such as a fuel surcharge, environmental fee and regulatory recovery fee. There is also a parking permit for a drop box if placed on the street in Portland. Mr. Bell said his opinion is that the city has a responsive system. The big unknown is what the tipping fee will be. In the open market it is not clear what you will be charged. He said Hillsboro wanted the customer to be able to look at the website and match the drop box rate with the posted rate of the city. To do this, they removed the franchise fee and margin on disposal. Thisreduced the revenue the city would receive and reduced income to the franchised haulers. The primary reason for the change was to service the needs of the customer. Franchise Renewal/Review Mr. Bell said there are two types of renewal in the Metro area—fixed or rolling. The fixed renewal can vary from five to ten years. Lake Oswego has a seven-year renewal time. Some cities have an evaluation mid-way through the term to determine that the franchise is providing the level of service required. Beaverton has this evaluation every three years. The rolling franchisees are seven years as that is the time that they put in the rates for full depreciation of trucks and containers. Mayor Snider asked about the Lake Oswego franchise because it is a little different from the standard. Mr. Bell clarified that Lake Oswego has a fixed term. There were specific things required by the city that didn't happen so the result was they could renew with the current hauler or put it out to bid for the first time in 20 years. TIGARD CITY COUNCIL MEETING MINUTES —July 21, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 5 of 11 Councilor Lueb asked if the financial information that is evaluated comes from the franchisee's tax returns or from financial software. Mr. Bell said they do site visits to both Waste Management and Pride Disposal. The financials for Waste Management are rolled up into a bigger company so their financials are ultimately audited not at the hauling level but by the overall company because it is publicly traded. He said they do tie their financials to their general ledger system. The people monitoring the financials are Certified Public Accountants (CPAs). He said Pride Disposal's Chief Financial Officer is also a CPA. The information from both companies is always reliable and even without an audit,which would be a substantial expense to cities that wanted that, they do have enough information on the other side of the operations to determine whether the charges are reasonable. Councilor Lueb asked if allowable costs included discretionary items such as bonuses. Mr. Bell said the only ones that are allowed are driver bonuses and those are typically minor amounts. Contributions are not allowable, so those items are segregated from operations. Councilor Lueb asked if franchise income is included in allowable costs. Mr. Bell replied that the franchise income is simply the revenue less the allowable expenses,which is the profit. He said when recycling was more lucrative haulers were doing well but then the bottom fell out of the recycling market. What they do with their income is up to their discretion. Councilor Lueb noted that the 8% to 10%is in the City Code and asked if it was normal to have in a code or should it be in an agreement. Mr. Bell replied that most cities have it in their code and most set it at 10 percent. Councilor Newton asked if it was uncommon for customers in Tigard to hear that drop boxes are unavailable and asked what guaranteed service meant. Ms. Leichner from Pride Disposal responded that there are times they may run low on a drop box size,but they would give them a larger box at the lower fee. If they ran out, they would subcontract work to another hauler. She said there was very little chance they could not provide that service. Mayor Snider asked about why in the Gresham hybrid drop box model their cost was lower. Mr. Kampfer from Waste Management said they use the franchise amount. Mayor Snider said he's heard about lack of drop box pickup and drop off on weekends Ms. Leichner said their standard schedule is Monday through Friday, but they can offer it in special circumstances. There would be a higher cost if a driver is called in to work on a Saturday. Mayor Snider suggested that higher costs are okay if they are reasonable and said from a customer service perspective it is hard to defend the completeness of their services if this is not offered. Mr. Kampfer commented on Waste Management's perspective on the Gresham's hybrid drop box system. He said there are no franchise fees charged on disposal, so the city does not get the same revenue as Tigard does. It is more confusing because you need to find out and monitor whether there is a building permit and other companies are not reporting their information to the city. He said the City of Gresham has four people working in their solid waste department. Council President Goodhouse said he was interested in looking into options for weekend drop box pickup and drop-off. Councilor Lueb agreed and asked what other services customers are requesting. Ms. Leichner responded that there is a desire to provide composting services,but one barrier is that the only facility is Nature's Needs in North Plains. If is it closed, there is no other place to take it. She said Pride just expanded to build out transfer space to handle TIGARD CITY COUNCIL MEETING MINUTES —July 21, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 6 of 11 compost material. They hope to offer this to several jurisdictions and there may be a cost increase due to handling restrictions due to COVID. Mayor Snider confirmed there was agreement to work with the haulers to add weekend pick up- drop-off for drop boxes. Mr. Goodrich said it would require a change in the Code and in the Master Fees and Charges Schedule. 5. DISCUSSION ON WATER UTILITY RATE MODELING Public Works Executive Manager Goodrich and Management Analyst Rico gave the staff report. He said the water utility serves nearly 65,000 people with 20,000 metered accounts throughout Tigard and the surrounding area. As a best practice for financial management of the utility, a rate study is recommended on a routine basis. The city is doing a cost of service analysis in conjunction with the Water Master Plan. There has not been a cost of service plan review since 2010. A large part of our costs is debt service for the Lake Oswego/Tigard Water Partnership. As the cost of service analysis progresses,we've met with FSG Consultants and are doing work on the revenue requirement. Spreading costs out among the customers and meter sizes is part of this analysis. There are three questions for review so that what staff ask the consultant to do is aligned with the goals and objectives of the City Council. Policy Question#1: Booster Pump Chargee—Should the City of Tigard continue charging the booster pump charge to those customers in higher elevation service zones? Our fee structure is complex and hard to explain. However, the Water Advisory Board (WAB) felt it was important for the customers at higher elevations to pay their fair share. Mayor Snider noted that Councilor Lueb is on the WAB and he shares their perspective that it may need to be reset,but it costs more to pump water higher above the zone where most people live. Council President Goodhouse agreed that they should pay for the boosting charge but asked if there was a way to put in a mechanism where it can be changed easily without having to do a full revision and cost of service analysis. Councilor Newton said rates should be more simple and suggested looking at pricing for pumping to lower elevations. Executive Manager Goodrich said pumping to the lower elevations is included and those costs are shared with everyone. He said one question is whether to go back to a flat fee for residential customers.We do not really have commercial users in upper areas. Councilor Anderson asked if there were any complaints and Mr. Goodrich said there weren't. Most customers understand that this is a cost of service. Mayor Snider recommended that staff move ahead with the WAB recommendation and include pumping in base rates and the booster pump charge,which is the actual cost of service, for above 470 zone. He suggested one rate for residential and one rate for commercial. Policy Question# 2: Residential Customers with Private Fire Suppression—Should the cost of service analysis evaluate residential customers that have 1-inch water meters due to the required capacity for private fire suppression services? TIGARD CITY COUNCIL MEETING MINUTES -July 21, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 7 of 11 Executive Manager Goodrich said water meters are sized based on the Oregon plumbing code requirements for fixture counts. Properties with more fixtures require a larger diameter meter to provide enough flow to meet the customer's water demands. Tualatin Valley Fire and Rescue (TVF&R) has a requirement that residential fire suppression systems, regardless of the fixture count,require a 1-inch meter to meet the 50 gallons per minute fire flow capacity. Until recently, the only residential customers with 1-inch meters were those required by TVF&R to have fire suppression systems in the home. Based on the size of those homes, they also had a fixture-count close to the requirements for a 1-inch diameter water meter pricing system. But over the last few years in River Terrace townhome developments, they decided to individually sprinkler each townhome rather than a combination on a separate meter. And these are tied to their individual water meters. They must upsize to a 1-inch meter which costs more than a 5/8-inch or 3/4-inch. But based on the size of the townhomes,without the sprinklers they may only require a 5/8-inch meter to meet their fixture capacity. Staff did a fire hydrant survey in 2014 and determined that people are already paying for fire suppression for hydrants. It is embedded in the customer service charge. The WAB recommended that the consultant recognize that those townhome customers with a 1-inch meter because of this system should have their charge based on their fixture count rather than the meter rate. Councilors Anderson,Youth Councilor Calderon, Councilor Newton and Council President Goodhouse supported this. Councilor Lueb advised that the WAB felt strongly that these individuals do not have access to the capacity of a 1-inch meter and it would be unfair to charge them as if they were using it. The Springbrook accounting system can identify these as special customers and bill based on their fixture count. Mayor Snider asked if water used from a hydrant to put out a house fire is charged to the homeowner. Executive Manager Goodrich said no,it is part of the public system and costs are embedded inside the public consumption charge. Council President Goodhouse added that in the insurance world,it may be part of a homeowner claim that insurance would pay the water bill to save the home from loss. Executive Manager Goodrich said staff wants to ensure that what is implemented is manageable and the customers are being treated fairly. Policy Question#3: Residential 1-inch Meter Customers (without fire suppression)—Shall the City of Tigard consider a change in the policy regarding residential customers'base rates? Executive Manager Goodrich gave some background on this issue. For the large Lake Oswego- Tigard Water Partnership debt service, the City of Tigard needs financial stability and to maintain its high bond rating. In 2010-2011 we received guidance from consultants that we needed to show our depth and ability to repay bonds and one way was to take the debt service and apportion so it was based on meter size rather than customer classification. Some residential 1-inch meter customers are of the opinion they should only pay for what they consume. They may be in a large home,but may not use all their fixtures,yet pay more than a customer in a smaller home with a 5/8-inch meter who uses more water. The city's pricing model is based on having to build the capacity in order the meet the needs on a demand basis. TIGARD CITY COUNCIL MEETING MINUTES —July 21, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 8 of 11 City staff and elected officials have heard and responded to concerns about the base charges for residential customers with 1-inch meters. They may not be using all their fixtures,but the City has to be able to provide that water.They want to see their monthly cost lowered. For a 5/8-inch meter they could take 15-20 gallons of water maximum. For a 1-inch customer, they can take 2 '/z times that amount up to 50 gallons. Mayor Snider said the base charge for a 5/8-inch meter is $29.36 per month, $65.86 for a 1-inch meter and $42.49 for a 3/4-inch meter. He used the analogy of school funding on a property tax bill. You may not have children in school,but you still pay taxes to the school district. Mayor Snider said this question is different from the bond payment. It is how do we allocate the money that we need to collect to make our bond payment. He asked about building the capacity for 1-inch meter when we know they are using a little more than those with a 5/8 in meter. He asked, "Did we build the system because we predicted that people with one-inch meters would use this much water?" Mr. Goodrich replied in the affirmative;we have to build additional capacity to meet service needs of customers. Customers with 1-inch meters can make a demand on the system at any time and we need to supply that capacity. In response to a question from Mayor Snider about whether a study has been done to see if any of those things happen,Mr. Goodrich said the city needs to think about what could happen. He said if we just charged 2 cents per gallon, there wouldn't be enough to get through a wet summer when we do not sell as much water. Mayor Snider asked about looking at consumption on average of 38 percent—3/4 inch meter customers use less than 5/8-inch meter customers. Executive Manager Goodrich said what he said was true, but in 2010 and 2011 customers were using more water. After we made changes in rates,people began to use less water because they wanted to get back to their earlier rates. As part of the rate study, there may be changes that come to Council and the WAB. Councilor Lueb said it is a complex discussion so the WAB looked at a few options to see what the impact would be on water bills. She said one option is to use current methodology, another is to have one customer base charge, and the other is to provide a few options that revise the methodology for charging residential customers with a 1-inch meter different base rates.The WAB said they didn't want one customer base charge but wanted to look at different ways to allocate the costs. She said they felt strongly they should maintain a base charge. Councilor Anderson said he has a 1-inch meter at his home. He said his family of four may not always use the capacity but over the holidays they could have a party and have twenty people and he wants to have that capacity then. He said he is fine with the base rate. Councilor Newton said it would be interesting to look at differences in consumption. She noted when she was on the city staff and supervised the Utility Billing Division, she heard from people who were trying to conserve and didn't use the capacity of their 1-inch meters. She said we may have to recalculate all base charges. Management Analyst Rico said as part of the cost of service analysis they will look at recent consumption and the changes in the different customers and different meter sizes and naturally make adjustments. She said they want to hear from Council if they want to make any changes outside of the normal evaluation. TIGARD CITY COUNCIL MEETING MINUTES -July 21, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 9 of 11 Mayor Snider said as long as there is some direct correlation between actual consumption and base charges that methodology can work. If the conclusion is being drawn that people with 1- inch meters could draw 2 1/2 times as much water but none of them every do,we get into the territory of the results we've had for the last decade. The methodology should be rational and based on real life not on theoretical possibilities. Council President Goodhouse said he wants to see options that make it more equitable. Councilor Newton said we need to recognize that larger meters are because of the fixtures and this needs to be recognized in the methodology. Executive Manager Goodrich said they will be looking at usage and how it is allocated. If a change is made within revenue requirements, making one area lower will mean others will increase. As staff works with consultants, they could look at Tier 2 and 3 structures to see if water costs could be less for people conserving and use less water. The downside of that is it makes it harder to do financial projections. Mayor Snider said that was a good idea because the people that use more water,no matter what their meter size is, are costing the system, and he agreed with reevaluating the tiers. Executive Manager Goodrich thanked Council for the good discussion. 6. DISCUSSION ON RACIAL JUSTICE AND CITY ACTION Mayor Snider said they are in the process of getting feedback on the Public Safety Transformation Commission. City Manager Wine will collect the comments and forward to Council for discussion in August. She said staff is in the process of getting feedback on the Anti- Racism Action Plan and confirmed Council will discuss it at their July 28 meeting. Councilor Newton asked for a brief update on the school resource officer program. City Manager Wine said along with the City of Tualatin and Tigard-Tualatin School District, they have invited a facilitator to put together a design for that conversation,which will start with small groups and move out in concentric circles from there. In the first group will be students and families. Youth Councilor Calderon said he met with two members of the Black Student Union and the group has changed their position from wanting to have school resource officers (SROs) in school with limited powers, to not wanting SROs at all. 7. NON-AGENDA ITEMS 8. ADMINISTRATIVE REPORT City Manager Wine said last week Councilor Lueb reported the Washington County Consortium of Library Services (WCCLS) is considering a policy change to go to a fine-free system. Tomorrow the WCCLS Executive Committee will be voting on that proposal and she will brief Council on the results. 9. EXECUTIVE SESSION: At 9:13 p.m. Mayor Snider read the following citation: The Tigard City Council will go into Executive Session to discuss the employment-related performance of a government official under ORS 192.660(2) (i).All discussions are confidential TIGARD CITY COUNCIL MEETING MINUTES -July 21, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 10 of 11 and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. The Tigard City Council will adjourn after the Executive Session. 10. ADJOURNMENT At 10:27 p.m. Councilor Lueb motioned for adjournment. Councilor Newton seconded the motion. Council voted unanimously in favor of the motion. Yes No Council President Goodhouse ✓ Councilor Newton ✓ Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ Carol A. Krager, City Recorder Attest: Jason B. Snider,Mayor Date: TIGARD CITY COUNCIL MEETING MINUTES -July 21, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 11 of 11 City of Tigard Tigard City Council Meeting Minutes . , July 28, 2020 1. STUDY SESSION A. EXECUTIVE SESSION Mayor Snider announced that the Tigard City Council would go into Executive Session to discuss the employment-related performance of a government official under ORS 192.660(2)(1). All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media can attend Executive Sessions, as provided by ORS 192.660(4),but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 2. BUSINESS MEETING A. At 7:30 p.m.,Mayor Snider called the City Council and Town Development Agency Board meeting to order. B. Mayor Snider asked Deputy Recorder Patton to call roll. Yes No Youth Councilor Calderon ✓ Council President Goodhouse ✓ Councilor Newton ✓ Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ C. Mayor Snider asked everyone to join him in the Pledge of Allegiance while a flag was projected on the screen. D. Call to Council and Staff for Non-Agenda Items—There were none. 3. PUBLIC COMMENT Mayor Snider stated that written public comments were due by 4:30 p.m. and call in questions will be accepted via telephone for agenda item 3.C. Phone-In public comment is accepted by calling 503-966-4101.The public may call in to get in the queue and the call-in number is posted on the screen. A. Follow up to previous public comment— City Manager Wine had no follow-up to previous public, but had an update on the written public comment received for this meeting. TIGARD CITY COUNCIL MEETING MINUTES —July 28, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 1 of 7 B. Public Comment—Written • Jean and Jerold Hilary, owners of a commercial building located at 9250 Tigard Street,regarding the location of the Tigard Farmers Market. • City Manager Wine explained they had concerns about a permit issued to the Tigard Farmers Market that causes damage and encroachment into their property access. • City Manager Wine will follow-up with the Hilarys by Thursday,July 30th to address concerns. C. Public Comment—Phone-in • Derrick Wright owner of Senet Bar in downtown Tigard,recently applied for the sidewalk outdoor seating permit and will propose to occupy parking spaces. • Hoping for City support to help his business survive the pandemic. • Mayor thanked him for letting them know as they hope to support the survival of all downtown businesses through this period. 4. CONSIDER A RESOLUTION TO EXTEND THE CITY'S EMERGENCY DECLARATION City Attorney Rihala presented this fourth extension to the City's emergency declaration related to COVID-19. The text is unchanged from the most recent extension and will move the expiry date to September 30,2020. Councilor Lueb made a motion to approve Resolution No. 20-41. Councilor Newton seconded the motion. Mayor Snider asked the City Recorder to read the number and title of the resolution. Resolution No. 20-41:A RESOLUTION OF THE CITY OF TIGARD EXTENDING THE CITY'S EMERGENCY RELATED TO COVID-19 Mayor Snider asked the City Recorder to conduct a roll call vote. Yes No Council President Goodhouse ✓ Councilor Newton ✓ Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ The motion passed unanimously. Mayor Snider announced the City Council would convene as the Town Center Development Agency Board for the next two agenda items. 5. TCDA BOARD REVIEW OF PROJECT PLANS FOR THE OVERLAND MIXED-USE DEVELOPMENT Redevelopment Manager Farrelly presented the project plans for the Overland Mixed-Use Project at SW 72"d Ave and SW Dartmouth. Details of the project include: TIGARD CITY COUNCIL MEETING MINUTES -July 28, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 2 of 7 • A DDA agreement was signed in May of 2019 with Dartmouth Development Partners, LLC. • City will collect$5 million in System Development Charges (SDCs) and other City fees. • Building will include 215 apartments, 8,000 square feet of commercial space and 220+ parking spaces. Redevelopment Manager Farrelly explained staff needed the TCDA Board's review and comments on the plan to ensure they're in line with urban renewal district plans. He emphasized that this project represented a major development in the Tigard Triangle that achieves many of the TCDA Board's goals for the area.John Olivier and Nick Diamond from the Dartmouth Development Partners,LLC were available to answer any questions. Director Anderson confirmed he supported the plans and had no comments. Director Goodhouse and Director Newton both expressed that affordable housing and retail in this project will be a great addition in the Triangle. Chair Snider acknowledged this was the culmination of a lot of work. 6. TCDA BOARD CONSIDERATION OF AN ESTOPPEL AGREEMENT WITH DARTMOUTH DEVELOPMENT PARTNERS,LLC Director Anderson made a motion to authorize the executive director to execute the Estoppel and Recognition Agreement with Dartmouth Development,LLC on behalf of the TCDA Board. Director Goodhouse seconded the motion. Chair Snider asked the City Recorder to conduct a roll call vote. Yes No Director Goodhouse ✓ Director Newton ✓ Director Lueb ✓ Director Anderson ✓ Chair Snider ✓ The motion passed unanimously. Mayor Snider announced they would reconvene as the City Council for the remainder of the meeting. 7. CITY COUNCIL CONSIDERATION OF AN ESTOPPEL AGREEMENT WITH DARTMOUTH DEVELOPMENT PARTNERS,LLC Redevelopment Manager Farrelly explained this is the same agreement as above, but that both the TCDA Board and the City Council are signatories on the Estoppel Agreement and therefore both bodies need to approve the agreement individually. Council President Goodhouse made a motion to approve the estoppel agreement with Dartmouth Development Partners,LLC. Councilor Newton seconded the motion. Mayor Snider asked the City Recorder to conduct a roll call vote. TIGARD CITY COUNCIL MEETING MINUTES -July 28, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 3 of 7 Yes No Council President Goodhouse ✓ Councilor Newton ✓ Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ The motion passed unanimously. 8. CITY COUNCIL GOALS REVIEW City Manager Wine explained that normally at this time she would report to Council on progress toward City Council goals.This year she has invited the Leadership Team to help expand on that topic to include a dialog about City Council goals, future goals, and the City's anti-racism plan. This is in response to two major imperatives that have arisen in 2020—the COVID-19 response and racial justice. The presentation will address changes that staff feel need to be incorporated into Council goals. Ms.Wine spoke to the need for the City to be strategically aligned, but also realistic about what can be accomplished given current resources. Mayor Snider clarified that staff are suggesting two changes to City Council goals or their timelines. City Manager Wine did not plan to go through the existing goals in detail, but that what they are suggesting is larger than just changes to the Council goals. She first reviewed progress toward the existing 2019-2021 City Council Goals,including: • Passage of the local option levy for police services in May 2020, • Completion of an Affordable Housing Plan and adopted strategies to promote affordable housing, • Development of an Americans with Disabilities Act (ADA) transition plan, and • Continued work to attract investment and development in Downtown Tigard. The City has also been working on a revised strategic plan. There were four clear imperatives identified by the Leadership Team as areas that need to be prioritized by the City in future actions.These include: • Improving City systems, such as improved communications and constituent relations, moving forward with facility planning for City services, as well as replacing asset management and financial systems. • Implementing the refreshed strategic plan,which emphasizes equity, accessibility,healthy lives, climate action and a walkable community. • Continued response to COVID-19 pandemic through economic aid and reopening assistance. • Implementing the Anti-Racism Plan and assisting with the Transformation Commission. Members of the Leadership Team then presented the City's Anti-Racism Action Plan, developed by staff. Library Director Bernard explained the City needs this plan to identify institutional racism in the City's policies,procedures,programs and services. Once identified, staff do the work to change it. TIGARD CITY COUNCIL MEETING MINUTES —July 28, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 4 of 7 Public Works Director Rager said members of the Leadership Team are each moving through their own education and are at different stages, as it is a personal journey. Commander McDonald explained they use cultural competency questions at all levels of the hiring process for the Police Department. Human Resources Director Bennett reported that the City's Diversity, Equity and Inclusion (DEI) initiatives are relatively new. One of the things they found is that candidate hiring pools reflect the Tigard community in terms of diversity,however, the City's hiring selections do not. Since that discovery, the City has moved to a blind recruitment process intended to eliminate bias and has increased diversity in City staff by approximately 1.4 percent. Assistant City Manager Kathy Nyland said they need to define equity in order to develop an equity lens, a tool used to consider new perspectives as the City reviews its policies and programs. Ms. Nyland said the work will be hard but is needed to create an Anti-Racism city. Mayor Snider clarified that staff is asking if City Council agrees on the four priority areas and would like a review of the City's Anti-Racism Action Plan. City Manager Wine confirmed. She said the three areas of Council goals not yet accomplished (i.e., Citywide Communications Plan, outreach regarding Bull Mountain annexation, and the Ash Street Crossing/branding for Downtown) are incorporated into the four priority areas through the communications piece. City Council discussed the four priority areas: • Councilor Lueb was in support of the priority areas. She expressed concern regarding the City's building and facility planning and asked if that should be a priority at this time. • Youth Councilor Calderon was in support of the priority areas. He emphasized improving the City's communications. • Council President Goodhouse was in support of the priority areas. He said the time- sensitivity of topics should also be considered, for example,in the City's facility planning process. He also raised the prospect of updating the City's contracting procedures to benefit Minority,Women-Owned and Emerging Small Businesses (MWESB) firms. • Councilor Anderson asked if they were planning to redo the Council goals. Mayor Snider clarified this would impact the next Council goalsetting in early 2021. He said he was in support of the four priority areas as resources allow and that areas three (COVID-19 response) and four (Anti-Racism Action Plan,Transformation Commission) are the most immediate needs. • Councilor Newton was in support of the priority areas. She did not think it was prudent to stop City facility planning at this time and thought it may be premature to begin implementing the refreshed Strategic Plan until it had undergone the public review process and was approved by Council. • Mayor Snider said all his comments were captured in the other Council members' responses. Council President Goodhouse asked where economic development projects would fall in the four priority areas, such as Southwest Corridor and urban renewal. Mayor Snider stated that these priorities are not exclusive, staff will not stop existing initiatives, but that these are the four big-picture priorities. He explained staff would like Council to acknowledge there are items that will not get as much attention and may not make as much progress due to COVID-19 and the racial justice issues. TIGARD CITY COUNCIL MEETING MINUTES -July 28, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 5 of 7 City Council discussed the Anti-Racism Action Plan: • Youth Councilor Calderon suggested a section on learning about the issue of racism be designated in the Public Library. Mayor Snider suggested they create a reading section on racism near the front of the library so it is easily found. • Councilor Lueb stated a timeline would be helpful to identify short-term and long-term priorities. She suggested staff identify opportunities to revisit the document on an ongoing basis from members of the community and seek an opportunity for third-party review. • Councilor Anderson said he appreciated the work of staff. • Councilor Newton echoed the suggestion for third-party review of the plan. • Council President Goodhouse asked how a blind recruitment process would ensure enough diverse applicants. HR Director Bennett said staff can see the data for each applicant to ensure a diverse pool. Only the hiring manager and staff are blind to details. o He suggested citizens be able to join a committee to help tackle this issue. o He asked if the City's hiring processes can be used in selecting Commission members. o He suggested the City change the Request for Proposals (RFP) process (i.e. contracting processes) to help disadvantaged communities and enforce City vendors following the same practices. • Youth Councilor Calderon added that in hiring the City should consider lived experience,removing the requirement for job experience, and making sure committee and commission positions are filled by diverse candidates. • Mayor Snider had several specific wording edits to the document. He suggested one section be bolded. He reflected on a conversation he had with community members about the need to address racism in Tigard and the common misconception it does not exist here. Assistant City Manager Kathy Nyland confirmed it is a living document that will be constantly evolving. They plan to ingrain these efforts in how the City approaches operations and makes decisions. Several members of the Leadership Team spoke in support of the plan and thanking Council for their support. 9. DISCUSS RACIAL JUSTICE AND CITY ACTION This agenda item was covered within the previous discussion of the City's Anti-Racism Action Plan. 10. NON-AGENDA ITEMS 11. ADMINISTRATIVE REPORT City Manager Wine reviewed the current status of conversations with Tigard-Tualatin School District (ITSD) regarding school resource officers (SROs). The discussion springs from community concerns about SROs in response to issues in other districts as well as TTSD students.TTSD and the City plan to have a thoughtful review using all the information including data about interactions,referrals and the lived experiences of students and families. TIGARD CITY COUNCIL MEETING MINUTES -July 28, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 6 of 7 Tigard will not assign SROs until the end of October at the earliest and will temporarily be on patrol until the community discussion can be completed. They will use a neutral facilitator and community partners and decisions will only made after all voices have been heard regarding thoughts on this service.TTSD has already begun the conversation and staff will continue to brief Council on any status changes. Mayor Snider added that the City has an annual contract with TTSD,which has expired and will not renew until these conversations take place. 12. EXECUTIVE SESSION—There was none. 13. ADJOURNMENT At 9:31 p.m., Councilor Lueb made a motion for adjournment and Councilor Newton seconded. Mayor Snider asked the City Recorder to conduct a roll call vote. Yes No Council President Goodhouse ✓ Councilor Newton ✓ Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ The motion passed unanimously. Caroline Patton,Deputy City Recorder Attest: Jason B. Snider,Mayor Date: TIGARD CITY COUNCIL MEETING MINUTES -July 28, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 7 of 7 City of Tigard City Council Meeting Minutes TIGARD August 4, 2020 1. STUDY SESSION A. EXECUTIVE SESSION —At 6:34 p.m. Mayor Snider read the following citation: The Tigard City Council will go into Executive Session to discuss the employment-related performance of a government official under ORS 192.660(2) (i). All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. The Executive Session ended at 6:53 p.m. 2. BUSINESS MEETING A. At 7:31 p.m. Mayor Snider called the Tigard City Council and Local Contract Review Board Business Meeting to order. B. City Recorder Krager called the roll. Present Absent Mayor Snider ✓ Youth Councilor Calderon ✓ Council President Goodhouse ✓ Councilor Newton ✓ Councilor Lueb ✓ Councilor Anderson ✓ C. Mayor Snider asked everyone to join him in the Pledge of Allegiance. A flag was projected on the screen. D. Call to Council and Staff for Non-Agenda Items—None. 3. PUBLIC COMMENT Mayor Snider stated that written public comments were due by 4:30 p.m. and call in questions are taken via telephone by calling (503) 966-4101. A. Follow-up from Previous Public Comment - City Manager Wine had no follow-up to previous public comment. B. Public Comment—Written There were three citizen comments received by the 4:30 p.m. deadline. Mayor Snider read a summary: TIGARD CITY COUNCIL MEETING MINUTES —August 4, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 1 of 2 • Gale Gipson commented on Mayor Snider's Regal Courier article,racism,police unions and other political opinions. • Kenneth Krolikoski commented on racism and sidewalk chalk writing report. • Dennis Worzniak submitted thoughts on the composition of the Transformation Commission, school resource officers,defunding police, support for using safety levy funding as approved by voters. C. Public Comment—Phone-in—None. 4. CONSENT AGENDA (Local Contract Review Board) A. CONTRACT AWARD FOR WALL STREET/TECH CENTER DRIVE IMPROVEMENTS TO EAGLE-ELSNER,INC B. CONTRACT AWARD FOR JANITORIAL SERVICES TO TVW,INC Councilor Newton moved to adopt the consent agenda as presented and Councilor Lueb seconded the motion. City Recorder Krager conducted a roll call vote and the motion passed unanimously. Yes No Mayor Snider ✓ Council President Goodhouse ✓ Councilor Newton ✓ Councilor Lueb ✓ Councilor Anderson ✓ 5. EXECUTIVE SESSION —Cancelled. 6. ADJOURNMENT At 7:36 p.m. Councilor Lueb made a motion for adjournment. Council President Goodhouse seconded the motion. City Recorder Krager conducted a roll-call vote Yes No Mayor Snider ✓ Council President Goodhouse ✓ Councilor Newton ✓ Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider announced the motion passed unanimously. Carol A. Krager, City Recorder Attest: Jason B. Snider,Mayor Date: TIGARD CITY COUNCIL MEETING MINUTES —August 4, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 2 of 2 AIS-4499 B. Workshop Meeting Meeting Date: 12/15/2020 Length (in minutes): Consent Item Agenda Title: Approval of Utility Bill Credit for Summer Creek Apartments Prepared For: Toby LaFrance, Finance and Information Services Submitted By: Mai Quach, Finance and Information Services Item Type: Motion Requested Meeting Type: Consent Agenda Public Hearing: No Publication Date: Information ISSUE Shall Council approve a utility billing credit in the amount of$14,850.43 to Summer Creek Apartments' utility account? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends Council approve a utility billing credit in the amount of$14,850.43 to Summer Creek Apartments' utility account. KEY FACTS AND INFORMATION SUMMARY Summer Creek Apartments had high usage for May,June, and July 2020 due to a leak that they have been trying to locate and fix. Given the large size of the apartment complex, it was difficult to find the leak, resulting in significant excess water consumption. The customer applied for a credit for the leak and staff approved up to the maximum $2,500 allowed by Tigard Municipal Code. The customer contacted the City to request a larger credit amount. After conversations between Public Works, Utility Billing, and the customer, staff is recommending the City charge the customer for the units beyond normal consumption at the Tier 1 rate rather than the Tier 3 rate and credit the customer for the difference for May to July. This will keep the utility and its ratepayers whole and also provide billing relief to the apartment complex owner. That credit amount came out to be $14,850.43, as shown below: Difference in Consumption units from 7,860 May Jul 2020 Compared to Previous Average Current Consumption units charged for 2020 at Tier 3 7,911 Consumption Charges for 7,911 units @ Tier 3 $41,849.19 Consumption Charges for 7,911 units if @ Tier 1 $24,998.76 Difference of Tier 3 —Tier 1 $16,850.43 Previous Credit for Leak given 7/21 -$2,000.00 Suggested Courtesy Credit $14,850.43 OTHER ALTERNATIVES Council could choose to not credit the customer or credit the customer a different amount. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A AIS-4498 C. 1. Workshop Meeting Meeting Date: 12/15/2020 Length (in minutes): Consent Item Agenda Title: Consider a Contract Award to Precision Locating, Inc. for Utility Underground Location Services Prepared For: Christine Moody Submitted By: Jamie Greenberg, Finance and Information Services Item Type: Meeting Type: Local Contract Review Board Public Hearing Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the Local Contract Review Board award a contract for underground utility locating services to Precision Locating, Inc.? STAFF RECOMMENDATION / ACTION REQUEST Staff Recommends that the Local Contract Review Board award a multi-year contract to Precision Locating, Inc for a not to exceed amount of$625,000.00 for as-needed underground utility locating services and direct the City Manager to take the steps necessary to execute the contract. KEY FACTS AND INFORMATION SUMMARY The Public Works Department's utility division maintains approximately 260 miles of water mains within the Tigard Water Service Area (King City, Durham, Tigard, and West Bull Mountain area), 168 miles of sewer mains, and 168 miles of storm mains within the City. Each home or business has its own water and/or sewer service lines. The City is a member of Oregon 811, which requires the City receive and pay for any and all locate requests that Oregon 811 receives within 10 feet of city infrastructure. The utility infrastructure maps that Oregon 811 uses has been, and will continue to be, updated by the City of Tigard Public Works Department. The City uses an enterprise Geographical Information System (GIS) and Computerized Maintenance Management System (CMMS) to track asset and activity data. Since locating and marking underground utilities was conceived, the City of Tigard has performed its own locating services. In order to maximize staff to perform other needed duties, the City is in need to contract for locating services. Work to be included under this contract includes: •Provision of sufficient qualified staff, vehicles, paint, flagging, and all other locating equipment. •Storage and safeguarding of the City's location maps and records. •Maintenance of records appropriately to support the invoicing and recording requirements. •For each locate request received, the contractor will screen, prioritize and visit the excavation site if necessary and locate the City's facilities as required by the Oregon Utility Notification Center. •Paying the City of Tigard Oregon Utility Notification Center membership monthly ticket transaction fees. •Adequacy of excavator notification in compliance with the Oregon Utility Notification Center excavation rules. • Complete all "normal" 72 hours locate requests within three (3) full business days of receiving the request. •Treat all "emergency" requests as an emergency and complete as soon as possible and as soon as it can be done safely according to Oregon Utility Notification Center excavation rules. •Provide additional services such as site surveillance, maintenance of marks and flags, and stand-by protection. •Investigate all incidents of damage for accuracy of the locate(s) and submit to the City a written report of said investigation within five (5) business days. •Locate all of the City's locatable facilities at an excavation site in accordance with the Oregon Utility Notification Center excavation rules. •Notify the excavator of the presence of any identifiable, but un- locatable, facilities of the City and caution the excavator that any location information supplied may not be within the definition of reasonable accuracy. The City released a Request for Proposal (RFP) for the work in November 2020 and recieved two proposals upon closing from the following contractors: •USIC Locating Services, LLC •Precision Locating, Inc. A selection team reviewed the submittals and scored them in accordance with the criteria detailed in the RFP. The committee determined that Precision Locating, Inc submitted the proposal that best meets the City's needs under this contract. Accordingly, staff is recommending Precision Locating, Inc. be awarded a contract for the City's undergrounding utility locating service needs. The contract is estimated at $125,000 annually for a total not to exceed amount of$625,000 over a five-year contract term. OTHER ALTERNATIVES The Local Contract Review Board may reject the proposals and direct staff to develop a detailed look at the cost of performing the work in-house versus contracting out for the services. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Fiscal Impact Cost: $625,000 Budgeted (yes or no): Yes Where budgeted?: Multiple Additional Fiscal Notes: The contract is estimated at $125,000 annually with roughly 40% of the spend coming from the water fund and 30% coming from both the sanitary sewer and stormwater funds. The total amount of this contract over its potential five-year term is estimated at $625,000. AIS-4495 3. Workshop Meeting Meeting Date: 12/15/2020 Length (in minutes): 10 Minutes Agenda Title: Resolution of Thanks Recognizing Councilor Anderson Prepared For: Kathy Nyland, City Management Submitted By: Caroline Patton, Central Services Item Type: Motion Requested Meeting Type: Council Workshop Mtg. Public Hearing: No Publication Date: Information ISSUE On December 31, 2020, Councilor Tom Anderson will complete his four-year term as a City Councilor and we wish to thank him for his service. STAFF RECOMMENDATION / ACTION REQUEST Mayor Snider requested an acknowledgement of Councilor Anderson's service to the city. KEY FACTS AND INFORMATION SUMMARY Councilor Tom Anderson is completing a four-year term of elected service to residents of the City of Tigard. He has contributed to a number of important policy decisions that are integral to the city's future and his fellow City Councilors (and city staf� are deeply appreciative of his wisdom, experience and friendship. OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION This is the first time Council has considered this action on behalf of Councilor Anderson. Attachments Resolution CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 20- A RESOLUTION THANKING TOM ANDERSON FOR HIS OUTSTANDING SERVICE TO THE CITY OF TIGARD WHEREAS, Tom Anderson, a longtime city volunteer, business owner and community advocate is retiring from service as an elected Tigard City Councilor on December 31,2020;and WHEREAS, Over the course of Councilor Anderson's service,the city faced unprecedented challenges from a worldwide pandemic, seasonal wildfires, an economic recession with corresponding city budget concerns, critical regional negotiations for Southwest Corridor transportation planning, Downtown and Tigard Triangle Urban Renewal District planning&economic development and addressing long-term provisions for affordable housing;and WHEREAS, Councilor Anderson skillfully served as Tigard's representative on several local and regional boards and committees to ensure the best future for the Tigard community. His gift for listening and careful consideration of multiple viewpoints on sometimes polarizing subject matter reassured resident's that their elected leaders were listening;and WHEREAS, His steady influence contributed to important foundational work by Tigard's Budget Committee, Planning Commission, City Center Development Agency, Willamette River Water Coalition and the Regional Water Providers Consortium as well as gaining thanks from Tigard families and baseball players for his continuing and persistent advocacy for Tigard Little League activities;and WHEREAS, Councilor Anderson's extraordinary contributions in support of affordable housing, senior housing and services for Tigard's homeless and vulnerable residents brought attention to an underserved and growing demographic. His advocacy for the new senior living community in the Tigard Triangle and plans for a senior affordable housing project at the Tigard Senior Center gave energy and focus to community interests, while his representation on Metro's Affordable Housing Committee kept stakeholder focus on preserving affordable housing and land for residents who could be displaced by the eventual arrival of Southwest Corridor light rail;and WHEREAS, during his term in office, Councilor Anderson contributed to projects and progress on Urban Renewal District activities in the Downtown (Tigard Street Heritage Trail, Universal Plaza, Attwell Off Main mixed use housing/retail, Ash Avenue Dog Park, Downtown Public Art) and the Tigard Triangle (Red Rock Creek Commons by Community Partners for Affordable Housing, master planning "New Tigard Triangle: Planning for Equitable Development" to guide strategic investment in the Triangle for diversity and vitality to transform the area into a mixed-use and pedestrian-oriented district), he helped gain voter approval for a pioneering Tigard Police Public Safety Levy, shared insight on next-phase planning for River Terrace, and contributed to updating our Metro regional water system partnership planning. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: The City of Tigard City Council and staff members hereby thank and honor Councilor Anderson for his meritorious and dedicated service to the city in the past four years. RESOLUTION NO.20- Page 1 SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of 2020. Mayor-City of Tigard ATTEST: Deputy City Recorder-City of Tigard RESOLUTION NO.20- Page 2 AIS-4494 4. Workshop Meeting Meeting Date: 12/15/2020 Length (in minutes): 5 Minutes Agenda Title: Consider Lease Agreement for Senior Center with Meals on Wheels People Prepared For: Nadine Robinson, Central Services Submitted By: Caroline Patton, Central Services Item Type: Motion Requested Meeting Type: Council Workshop Mtg. Public Hearing: No Publication Date: Information ISSUE Should the Council renew the Tigard Senior Center lease with Meals on Wheels People for the next five years? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends approval of a five-year lease with Meals on Wheels People for the use of the Tigard Senior Center for provision of nutritional and social services programs for older adults and authorization for the city manager to sign the lease. KEY FACTS AND INFORMATION SUMMARY The Meals on Wheels People program, formerly known as Loaves and Fishes, has provided services for older adults at the Tigard Senior Center since 1982. Tigard's program is currently managed by Center Director Vicki Adams. The mission of the program is to enrich the lives of older adults and assist them in maintaining independence by providing nutritious food, human connections and social support. The Tigard Senior Center's primary target audience is those age 60 and older who reside in Tigard. The Center also offers volunteer opportunities to people of all ages. This diversity in age provides cross-generational opportunities that the Center finds positive for all groups. In 2019, Meals on Wheels People served and delivered 46,331 meals to 788 older adults in Tigard. This was a 5% growth over 2018. Approximately 35 volunteers delivered meals, worked in the gift shop, taught classes, assisted with clerical duties and worked in the kitchen. The Center estimates that in 2019, 90% of the delivered meals went to residents of Tigard and 80% of those who dined at the center or volunteered for the center were Tigard residents. The Tigard Senior Center is required to be used for older adult services and programming through November 2028 since it was built and then remodeled with Community Development Block Grant (CDBG) funds. The last remodel using CDBG funding was completed in November 2008. A requirement of the CDBG funding is that the facility be used for older adult services for 20 years after the improvement is made. If the city chooses to not use the building for these services, it will have to pay back the grant to the federal government. The last update to the lease was in June 2015. The lease was set to expire June 30, 2020 and was extended to the end of the year. This gave both parties an opportunity to focus their attention on their response to the COVID-19 pandemic. The Center is currently closed for in-building meals. Meals are being delivered to customers once a week. To help with social isolation, volunteers are conducting well check calls and offering friendly chat calls. The lease has worked well to date and the working relationships between the City staff and Center staff have been excellent. However, in reviewing the lease, city staff felt it would be beneficial to update the lease document to provide more clarity in the lease terms as well as consistency between city leases. The proposed lease allows the Meals on Wheels Program to continue to use the Tigard Senior Center to provide nutritional and social services to Tigard residents for the next five years under the same basic terms. Some of the changes include: •Section 6, Use of Facility •The requirement to develop a method to monitor the performance of the Meals on Wheels People programs and services was removed. The Meals on Wheels People program tracks performance and provides the data as requested. •The section related to the city having use of the equipment, dishes, and utensils was removed as it is not currently relevant. If the city decides to make the facility available to the public outside of the Meals on Wheels People's hours, the terms of the program will be negotiated. • (C), verbiage was added to address parking, knowing planned housing could necessitate further discussions. •Section 18 adds a communications escalation clause. This is in keeping with the standardization of facility leases. It may also be useful if construction impacts the operations of the Meals on Wheels People program. • Other updates were made to boilerplate terms such as indemnification and remedies. The lease was provided to Meals on Wheels People Executive Director Susanne Washington who has indicated acceptance of proposed lease with no modifications. OTHER ALTERNATIVES Council could request additional changes to the proposed lease or decline to renew the current lease, set to expire at the end of 2020. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS The Meals on Wheels Program supports the city's strategic plan to be an equitable community that is walkable, healthy and accessible to everyone by providing nutritious meals, social programs and an opportunity for inter-generational interactions. DATES OF PREVIOUS COUNCIL CONSIDERATION •The Meals on Wheels 2015 - 2020 lease was extended 6-months on May 26, 2020. •The previous five-year lease of the Tigard Senior Center by Meals on Wheels People was signed June 23, 2015 Attachments Senior Center Lease Agreement CITY OF TIGARD FACILITY LEASE AGREEMENT TIGARD SENIOR CENTER THIS LEASE is made and entered into this 15th day of December , 2020 ("Effective Date',by and between the City of Tigard,an Oregon municipal corporation ("City"),and Meals on Wheels People ("Lessee"). RECITALS A. City is the owner of the real property located at 8815 SW O'Mara St., Tigard, Oregon 97223 (the "Property"). B. City owns a 7,718 sq ft building on the Property called the Tigard Senior Center (the "Facility"). C. City desires to lease the Facility to Lessee, and Lessee desires to Lease the Facility from City, on the terms and conditions set forth in this Facility Lease Agreement ("Lease"). NOW THEREFORE, in consideration of the mutual covenants herein, the parties agree as follows: AGREEMENT 1. PROPERTY LEASED City hereby leases the Facility to Lessee and Lessee hereby leases the Facility from the City,including all improvements located thereon, as well as the right to use the equipment and amenities listed in the Tigard Senior Center Equipment List attached as Exhibit A (the "City Equipment', and incorporated herein by this reference as a part of this Lease, on the terms and conditions set forth in this Lease. 2. TERM OF LEASE The term of this Lease shall be for a period of five (5) year, commencing on January 1, 2021 ("Commencement Date"), and terminating at 12:01 a.m. on January 1, 2026 (the "Initial Term.) 3. PAYMENT OF RENT Amounts payable by Lessee to City under this Lease are collectively referred to as "Rent." Rent of$1.00 for each year, or portion thereof, during the said term is payable in lawful money of the United States, at the City of Tigard offices, initially at the signing of this lease and then sometime prior to the 1 s'of each year. Lessee may elect to prepay the Rent for the entire Initial Term prior to the Commencement Date. 4. LESSEE'S ACCEPTANCE OF LEASE Lessee accepts this Lease as stated herein for the full term of this Lease, under the terms written above. 5. CONDITION OF FACILITY Lessee has inspected the Facility,the improvements thereon,and the City Equipment,and acknowledges and agrees that the Facility, the improvements,and the City Equipment are in good condition and repair. Lessee takes the Facility, the improvements thereon, and the City Equipment "as is." Lessee acknowledges that no tenant improvements, replacements, or upgrades for Lessee's benefit are provided for under this Lease or shall be made to the Facility by City, unless agreed to in writing by City and Lessee. 6. USE OF FACILITY A. The Lessee contracts with Washington County to provide services to older adults and desires to use the Facility for this purpose. The City desires to locate the Meals on Wheels People services in the Facility to provide nutrition and social services, programs, and activities to Tigard-area seniors. Said use may include operation of a nutrition and social service program for older adults, including, but not limited to, dining room and home-delivered meals,informational, educational, and recreational activities, information and referral, health screening, counseling, and fund-raising activities for the program, provided Lessee obtains proper land use and other approvals as may be required prior to initiating operation of said programs. Lessee may utilize additional nutritional and social service program providers to utilize the Facility for programming consistent with Lessee' s mission and the terms of this Lease. B. Lessee will have use of the Facility from Monday at 7:00 A.M. through Friday at 5:00 P.M. Lessee has first priority for additional use of the Facility outside of the hours noted in this paragraph. Lessee's senior programming will target senior education and socialization opportunities. C. Lessee's use of the Facility will include reasonable access to parking, as determined by the City. The City will consider Lessee's operational requirements as well as the parking needs of other users in determining the use of parking spaces. D. Lessee's use of the Premises will include a garden area near the south east parking area, referred to as the Tigard Garden Club Memorial Garden. The total area may not exceed 500 sq ft. Maintenance of the garden area will be the primary responsibility of the Lessee. Any additional maintenance will be mutually agreed upon between Lessee and the City. Lessee may not plant any invasive species, as identified by the Oregon State University Extension Service, and may not use pesticides, herbicides, or fertilizers without prior consent of the City. 2020 Tigard Senior Center Facility Lease 2 1 Page E. Lessee represents and warrants that it has obtained or will obtain all necessary licenses and permits required by the federal government, State of Oregon, Washington County, and the City of Tigard that may be necessary for operating and managing the Meals on Wheels People program and covenants and agrees that it shall maintain such licenses and permits during the term of the Lease. F. Lessee will not make any unlawful,improper,or offensive use of the Facility nor suffer, strip or waste thereof. Lessee will not permit anything to be done upon or about the Facility in any way tending to create a nuisance,be that at common law or by ordinance or by statute. G. Lessee shall not store gasoline or other highly combustible materials in the Facility at any time nor use the Facility in such a way or for such purposes that would make it impossible to insure the Facility against casualty, or would substantially increase the insurance rates,including,but not limited to,the fire insurance rates,over the insurance rate as of the Commencement Date; or that would prevent City from taking advantage of reduced premium rates for long-term fire insurance policies. H.Lessee shall comply, at Lessee's own expense, with all applicable laws and regulations of any municipal, county, state, federal or other public authority affecting the use of the Facility and will correct,at Lessee's own expense, any failure of compliance created through Lessee's fault or by reason of Lessee's particular use of the Facility. I. Lessee shall regularly occupy and use the Facility for the permitted use, and shall not abandon or vacate the Facility for more than ten (10) days without the prior written approval of City except when required for major structure maintenance or remodel, which would require relocation of Lessee's business for safety/health reasons. 7. USE OF CITY'S NAME Lessee shall not use the City's name or any other name, logo, graphic work, artwork, or trademark used by City in connection with its advertising, social media or in any other capacity without the prior written approval from the City. 8. UTILITIES/MAINTENANCE A. City shall pay for all heat, light, sewerage and storm drainage fees, power, sanitary services, and other utilities used in the Facility during the term of this Lease except for telephone, internet and cable services. Lessee will pay for all telephone, internet and cable utilities. City shall be responsible for general janitorial of common areas and regular maintenance of the Facility. Lessee is responsible for cleaning the kitchen, dining room after each meal, and the offices and gift shop. A. City shall keep the sidewalks in front of the Facility free and clear of ice, snow, rubbish, debris and obstruction, and will not permit rubbish, debris, ice or snow to 2020 Tigard Senior Center Facility Lease 3 1 Page accumulate on the roof of the facility so as to stop up or obstruct gutters or down spouts or cause damage to said roof. B. Lessee will keep the kitchen clean, in such a way as to meet the standards of the Washington County Health and Human Services and the Oregon State Health Authority for daily cleanliness. Repairs, equipment maintenance, (per inventory list) and annual fire suppression inspection are the responsibility of the City. C. Lessee shall maintain all equipment located in the Facility,including,but not limited to the City Equipment, in the same condition as it was on the Commencement Date, reasonable wear and tear excepted. If the City Equipment needs repair or replacement, Lessee shall notify City, as soon as practicable, and City shall repair or replace the City Equipment,within ten (10) business days after receiving such notice,or if the necessary repair or replacement cannot be made within such ten (10) business day period, shall begin to make such repair or replacement within such period and complete the repair or replacement within a reasonable time period. If the City determines that Lessee's misuse or negligence caused the need for the repair or replacement of City Equipment, City shall complete the repair or replacement, but shall inform Lessee of such determination and Lessee shall be required to pay City for the costs of such repair or replacement within ten (10) days after the date City sends Lessee a statement requesting payment of such costs.In no event,shall City be responsible for lost profits or other damages incurred by Lessee due to any City Equipment needing repair or replacement for any reason. 9. TAXES A. Lessee agrees to pay all taxes and assessments which during the term of the Lease may become due, become a lien or which may be levied by the state, county, city, or any other tax levying body upon the Facility. Furthermore, Lessee agrees to pay all taxes and assessments on any taxable interest obtained by Lessee through this Agreement or on any taxable possessory interest, which Lessee may have in or to the Facility by reason of its occupancy. Furthermore, Lessee agrees to pay all taxes on all taxable property, real or personal, owned by it in or about the Facility. Upon making such payments,Lessee shall give the City a copy of the receipts and vouchers showing payment. B. Lessee understands that City property is exempt from property taxation until leased to a taxable entity. Should Lessee be a non-taxable entity,Lessee will be responsible for making application to Washington County for exempt status from property taxation. Upon being granted exempt status on the property, Lessee will file a copy of said exemption with the City. C. In the event that the term of the Lease extends beyond December 31 of any year, Lessee shall be responsible for payment of all property taxes for the entire tax year 2020 Tigard Senior Center Facility Lease 4 1 Page without pro-ration, or, in the event of any change in property tax law, for any taxes due under such law. 10. REPAIRS AND IMPROVEMENTS A. City shall not be required to make any alterations, additions or improvements to or upon the Facility during the term of this Lease, except those specifically provided for in this Lease. Lessee agrees to notify City for any and all repair or maintenance needs to ensure the Facility in good order and repair during the entire term of this Lease. Lessee further agrees it will make no alteration, addition or improvements to or upon the Facility without the prior written consent of the City. B. City agrees to maintain the exterior and interior walls, HVAC system, roof, gutters, downspouts and foundations of the facility and the sidewalks thereabouts. It is understood and agreed that City reserves to itself (and its successors and assigns) the right, but not the obligation, to alter, repair or improve the Facility, or to add thereto and for that purpose at any time may erect scaffolding and all other necessary structures about and upon the Facility, and City and City's representatives, contractors and their respective employees and agents for that purpose may enter in or about the Facility with such materials as may be necessary C. City further reserves, and at any and all times shall have, the right to enter onto the Facility to repair or maintain the Facility with written notice of the need for repair or maintenance. City shall not need to send notice prior to performing repair or maintenance activities if City deems, in its sole discretion, that an emergency exists requiring immediate action. D. For any damage done to the Facility and caused by the fault of Lessee or Lessee's representatives, employees, agents, or invitees, the City will repair the damage at the Lessee's expense. Any damage shall be reported to the City's assigned representative as soon as practicable. The City shall perform necessary repair(s) within ten (10) business days after receiving such notice, or if the necessary repair(s) cannot be made within such ten (10) business day period, shall begin to make such repair(s) within such period and complete the repair(s) within a reasonable time period. City shall complete the repair or replacement, but shall inform Lessee of such determination and Lessee shall be required to pay City for the costs of such repair(s) within thirty (30) days after the date City sends Lessee a statement requesting payment of such costs. In no event, shall City be responsible for lost profits or other damages incurred by Lessee due to any City property needing repair or replacement for any reason. E. City provides,at the City's discretion,a facility key and lock system. City will provide, at no cost to Lessee, up to two (2) keys for Facility access during the term of this Lease. Any lost or damaged locks or keys will be replaced at Lessee's expense. If it 2020 Tigard Senior Center Facility Lease 5 1 Page is determined that the Facility locks need to be replaced due to a lost or stolen key, the City may elect to "re-key" the locks at Lessee's sole expense. Lessee shall exercise extreme caution and care with respect to the handling and use of access to the Tigard Senior Center and of any access devices (i.e. keys, security codes etc.) provided by the City for entry to the Facility. Lessee shall immediately report any lost or missing access devices to the City and will reimburse the City, as requested by the City, for replacement of such devices. 11. SIGNAGE Lessee shall not, without prior written consent of the City, use the outside walls of the Facility, or allow signs or devices of any kind to be attached thereto or suspended there from. 12. CITY'S RIGHT OF ENTRY It shall be lawful for agents and representatives of the City at any reasonable time to enter into the Facility for the purpose of inspecting the condition and use thereof, or for any other lawful purpose. 13.TERMINATION A. City may terminate this Lease for breach pursuant to Section 24. B. The parties may agree to terminate this Lease at any time by mutual agreement. 14. LIENS Lessee will not permit any lien of any kind, type or description to be placed or imposed upon the Property or Facility, or any part thereof. 15. OVERLOADING OF FLOORS Lessee will not overload the floors of the Facility in such a way as to cause any undue or serious stress or strain upon the Facility, and the City shall have the right, at any time, to call upon any competent engineer or architect whom the City may choose, to decide whether or not the floors of the Facility are being properly used. The decision of said engineer or architect shall be final and binding upon Lessee; and in the event that the engineer or architect decides that the stress or strain is such as to imperil the Facility in whole or in part, Lessee agrees to immediately relieve said stress or strain in a manner satisfactory to the City. 16.NO USE OF HAZARDOUS SUBSTANCES No use, handling, storage, generation, creation, disposal, transportation, or discharge of any Hazardous Substances shall be permitted in or about the Facility by Lessee, its employees, agents, customers, or contractors. This restriction does not apply to ordinary office and janitorial supplies available over the counter for common use by members of the general public so long as such supplies are used, stored, disposed of, and transported 2020 Tigard Senior Center Facility Lease 6 1 Page in compliance with applicable law. As used in this Section, "Hazardous Substances" shall mean any substance, material or product defined or designated as hazardous, toxic, radioactive, dangerous or regulated wastes by any federal, state or local regulatory agency. 17. LIGHT AND AIR This Lease does not grant any rights of access to light and air over the Facility or the Property. 18. COMMUNICATION ESCALATION CLAUSE All communications by Lessee with the City, other than official notices required by law or this Lease, bills and payments, must follow the protocol set forth in this Section. Lessee shall contact the appropriate person or department, as outlined in this Section, and follow the order of escalation protocol set forth below if the primary contact is unavailable or unresponsive after a reasonable period of time.The City shall provide Lessee,on or before the Commencement Date, a list of appropriate names and contact information for the people or departments listed in this Section, and may provide Lessee with updated information, as needed. A. Facilities Services Supervisor — This shall be the primary contact for minor issues or daily communications on-site at the Facility. B. Fleet and Facilities Operations Manager - This shall be the primary contact for Lease related issues and the second contact for safety issues and minor issues. C. The resolution of any grievances between the parties shall first be attempted between the City's Central Services Director and the Meals on Wheels People Center Director. Grievance resolution second step will be between the City Manager, or designee, and Meals on Wheels People Executive Director or designee. 19. QUARTERLY CHECK IN MEETINGS Lessee and the City shall have quarterly "check-in" meetings. These meetings will allow a reoccurring schedule to review the level of maintenance services provided by the City, the Tigard Senior Center Equipment List, and other issues. Lessee and City will cooperate in determining the date, time,and manner of these meetings,but agree that they will occur no less than once per quarter during the term of the Lease. 20.DAMAGE BY FIRE OR OTHER CASUALTY In the event of any damage to the Facility by fire or other casualty, either party hereto may terminate this Lease as of the date of said fire or casualty. 21. INDEMNIFICATION A. Lessee agrees to indemnify, defend and hold harmless the City, its City Council, officers and employees from and against all liability arising from actions, suits, claims or demands attributable to acts or omissions of Lessee or its representatives, 2020 Tigard Senior Center Facility Lease 7 1 Page employees, agents, or invitees during Lessee's use or occupancy of the Facility during the term of this Lease. B. Subject to the limitations of the Oregon Tort Claims Act, City agrees to indemnify, defend, and hold harmless Lessee from and against all liability arising from actions, suits, claims or demands attributable solely and exclusively to the negligent acts or omissions or willful misconduct of City in performance of this Lease. C. The City shall give Lessee prompt and reasonable notice of any such claims or actions known to the City, and Lessee shall have the obligation to investigate, compromise and defend same, provided such claim is not caused by the negligence or willful misconduct of the City, its employees or agents. D. In the event that there is any bodily injury at, or property damage to, any portion of the Facility caused by Lessee or any third party, Lessee shall immediately notify the City's Risk Manager and cooperate in the City's investigation of said incident. Lessee shall make all reports or documents concerning the incident, whether in its possession or the possession of its insurance carrier, available to the City and will cooperate with the City in investigating, compromising or litigating the claim against such third parties. E. For damage done to or at the Property or Facility by third parties for which Lessee is not responsible, the City shall bear the initial cost of investigating, compromising or litigating the claim, but may recover such costs if otherwise permitted by law or this Lease. 22.INSURANCE REQUIREMENT Insurance requirements set forth below do not in any way limit the amount or scope of liability of Lessee under this Lease. The amounts listed indicate only the minimum amounts of insurance coverage the City will accept to help insure full performance of all terms and conditions of this Lease. All insurance required by Lessee under this Lease shall meet the following minimum requirements: A. Certificates: Notice of Cancellation. On or before the Effective Date, Lessee shall provide the City with certificates of insurance establishing the existence of all insurance policies required under this Section. Thereafter, the City must receive notice of the expiration or renewal of any policy at least thirty (30) days prior to the expiration or cancellation of any insurance policy. No insurance policy may be canceled, revised, terminated or allowed to lapse without at least thirty (30) days prior written notice being given to the City. Insurance must be maintained without any lapse in coverage during the entire term of the Lease. Insurance canceled without City consent shall be considered a breach of this Lease. The City shall also be given certified copies of Lessee's policies of insurance, upon request. 2020 Tigard Senior Center Facility Lease 8 1 Page B. Additional Insured. The City shall be named as an additional insured in each required policy and, for purposes of damage to the Facility, as a loss payee. Such insurance shall not be invalidated by any act,neglect or breach of contract by Lessee. C. Primary Coverage. The required policies shall provide that the coverage is primary and will not seek any contribution from any insurance carried by the City. D. Company Ratings. All policies of insurance required under this Section must be written by companies having an A.M. Best rating of "A" or better, or equivalent. The City may, upon thirty (30) days written notice to Lessee, require Lessee to change any carrier whose rating drops below an A rating. E. Required Insurance. At all times during this Lease, Lessee shall provide and maintain the following types of coverage: a. General Liability Insurance. Lessee shall maintain an occurrence form commercial general liability policy, personal injury liability, for the protection of Lessee and the City,insuring Lessee and the City against liability for damages due to personal injury, bodily injury, death, or damage to property (including the loss of use thereto and occurring on or in any way related to the Facility or occasioned by reason of the operations of Lessee). Coverage shall be in an amount of not less than Two Million Dollars ($2,000,000) combined single limit per occurrence with a Four Million Dollars ($4,000,000) aggregate limit for bodily injury and property damage for all coverage specified herein. The required two million dollars of coverage can be provided on a primary coverage bases or on a primary/excess combination basis. City will also provide the same coverage, naming Lessee as an additional insured. b. Fire Legal Liability Insurance. The City shall insure the facility and all improvements affixed thereto considered to be part of Facility. Lessee is responsible to insure all of its own personal property, which items shall not be covered by City insurance. Furthermore,Lessee must at all times carry Fire Legal Liability insurance coverage in an amount not less than One Million Dollars ($ 1,000,000). Such coverage shall name the City as an additional insured. c. Workers' Compensation Insurance. Lessee shall maintain in force Workers' Compensation insurance for its employees in amounts required by applicable law. d. Commercial Automobile Insurance. Lessee shall maintain in force Commercial Automobile Liability coverage including coverage for all owned, hired, and non- owned vehicles on an " occurrence" form. The Combined Single Limit per occurrence shall not be less than $2,000,000. The required two million dollars of coverage can be provided on a primary coverage bases or on a primary/excess combination basis. 2020 Tigard Senior Center Facility Lease 9 1 Page F. Periodic Review. The City shall have the right to periodically review the types,limits and terms of insurance coverage. In the event the City determines in its exclusive discretion that such types, limits, or terms should be changed, the City will give Lessee a minimum of thirty (30) days' notice of such determination and Lessee shall modify its coverage to comply with the new insurance requirements of the City. Lessee shall also provide the City with proof of such compliance by giving the City an updated certificate of insurance within said thirty (30) days. G. Subrogation. Except as limited by this subsection, the parties hereto waive any right of action that they might have against the other for loss or damage, to the extent that such loss or damage is covered by any insurance policy or policies and to the extent that proceeds (which proceeds are free and clear of any interest of third parties) are received by the parties claiming the loss or damage. This waiver of subrogation shall not extend to any applicable deductibles under such policy or policies. 23.DELIVERING UP FACILITY ON TERMINATION A. At the expiration of the Lease term,the expiration of any applicable extension,or upon any earlier termination, Lessee will quit and deliver up the Facility to City or City's successor or assign, peaceably, quietly, and in broom-clean condition, to City in good order and condition, reasonable use and wear thereof excepted. B. Lessee must leave all the City Equipment as documented in the Tigard Senior Center Inventory List in the Facility, upon termination,but may remove Lessee's listed items. C. All partitions, plumbing, electrical wiring, additions to, or improvements upon the Facility,whether installed by Lessee or City, shall be and become a part of the Facility as soon as installed and are and remain the property of City,unless otherwise provided in writing, including in this Lease. 24.DEFAULT AND REMEDIES If Lessee (a) fails to perform or observe any of the covenants and agreements contained herein and such default continues for thirty (30) days or more after written notice of such failure is given by City (or in the case of a default that cannot with due diligence be cured within such time period, if Lessee fails to commence within such time period, and thereafter fails to diligently complete, all steps necessary to remedy the default), or (b) Lessee is declared bankrupt or insolvent according to law, or if any assignment of Lessee's property is made for the benefit of creditors, or (c) on the expiration or earlier termination of this Lease, Lessee fails to surrender possession of the Facility if required to do so by the terms of the Lease, then and in any of these events, Lessee shall be in default under the Lease and City,immediately or at any time thereafter,without demand or notice, may exercise any one or more of the remedies set forth below; or any other remedy available under applicable laws or contained in this Lease. The remedies provided for in this Lease are cumulative and are not intended to be exclusive of any other remedies to which City may law fully be entitled. 2020 Tigard Senior Center Facility Lease 10 1 Page A. Terminate the Lease at (the option of City by City giving written notice of termination to Lessee. If this Lease is terminated. Lessee's liability to City for damages shall survive such termination, and City may re-enter and take possession of the Facility and remove any persons or property by legal action. B. City may immediately or at any time thereafter re-enter the Facility, or any part thereof, either by summary eviction proceedings or by any suitable action or proceeding at law, and repossess the same, and may remove any person therefrom, to the end that City may have, hold and enjoy the Facility. C. City shall have the right to recover unpaid rent and all damages caused by the default, as well as all costs and expenses incurred in the connection with the enforcement of this Lease, including reasonable attorney fees and court costs. Damages shall include,without limitation all legal expenses and other related costs incurred by City following Lessee's default and all costs incurred by City in restoring the Facility to good order and condition. 25.QUIET ENJOYMENT So long as Lessee pays all Rent when due and complies with all terms and conditions of this Lease, Lessee shall peaceably and quietly have, hold, and enjoy the Facility. This covenant shall, subject to the provisions of this Lease, be binding upon any successors- in-interest of City's interest in this Lease. 26.HOLDING OVER In the event Lessee for any reason shall hold over after the expiration of this Lease, such holding over shall not be deemed to operate as a renewal or extension of this Lease, but shall only create a tenancy from month to month which may be terminated by City at will at any time during a hold over period. 27.NOTICES All notices, bills and payments shall be made in writing and may be given by personal delivery or certified mail, return receipt requested. Payments may be made by personal delivery, mail, or electronic transfer. The following addresses shall be used to transmit notices, bills, payments, and other information: CITY OF TIGARD MEALS ON WHEELS PEOPLE Attn: Kevin Cole Attn: Vicki Adams Address: 13125 SW Hall Blvd. Address: 8815 SW O'Mara St Tigard, Oregon 97223 Tigard, OR 97223 Phone: 503-327-5471 Phone: 503-620-4613 When so addressed, such communication shall be deemed given upon deposit in the United States mail, postage prepaid. In all other instances, notices, bills and payments 2020 Tigard Senior Center Facility Lease 11 1 Page shall be deemed given at the time of actual delivery. Changes may be made in the names and addresses of the person to whom notices,bills and payments are to be given by giving written notice pursuant to this paragraph. The parties agree that this process only applies to official notices required under this Lease,bills and payments,and does not apply to the specific notice requirements of the "Communication Escalation"provisions of Section 19 of this Lease. 28.HEIRS AND ASSIGNS All rights, remedies, and liabilities herein given to or imposed upon either of the parties hereto shall extend to, inure to the benefit of and bind, as the circumstances may require, the heirs, executors, administrators, successors and, so far as this Lease is assignable by the term hereof, to the assigns of such parties. 29.ASSIGNMENT Lessee may not assign this Lease, nor any right of use to any portion of the Facility or property to any third person by any means, without the prior written consent of City, which may be granted, conditioned or withheld in the City's exclusive discretion. Any assignment or attempted assignment without the City's prior written consent shall be void. No assignment,or sublease, or consent thereto by City, shall relieve Lessee, either wholly or partially, from its obligations under this Lease, unless agreed to in writing by City. 30.SUBORDINATION This Lease, and all rights of Lessee hereunder, are and shall be, upon the election of the holder thereof, subject and subordinate to all mortgages, trust deeds, and other financing and security instruments ("Mortgages") that may now or hereafter affect the Facility, and to all renewals, modifications, replacements, and extensions of any such Mortgages. This Section shall be self-operative, and no further instrument of subordination shall be required to effect a subordination hereunder;provided,however, that in confirmation of such subordination, Lessee shall promptly execute, acknowledge,or deliver any instrument that City or any such mortgagee may reasonably request to evidence such subordination. If Lessee fails to execute, acknowledge, or deliver any such instruments within the ten (10) days after a request therefor, City may declare an event of default hereunder. Lessee hereby irrevocably constitutes and appoints City as Lessee's attorney-in-fact, coupled with an interest, to execute and deliver any such instruments for and on behalf of Lessee, at City's sole election. 31.ESTOPPEL CERTIFICATE Lessee agrees if requested by City to promptly execute, acknowledge, and deliver to City a statement in writing certifying that this Lease is unmodified and in full force and effect (or if there have been modifications, that the same is (or is not) in full force and effect as modified and stating the modifications), whether any party is in default or breach of this Lease or, with the giving of notice of lapse of time, or both, would 2020 Tigard Senior Center Facility Lease 12 1 Page be in default or breach of this Lease, and the date to which the basic rent and other charges would have been paid in advance, if any. 32.CONDEMNATION If the Property or any interest therein is taken as a result of the exercise of the right of eminent domain, this Lease shall terminate as to such portion as may be taken. 33.NON-WAIVER Waiver by either party of strict performance of any provision of this Lease shall not be a waiver of or prejudice the party's right to require strict performance of the same provision in the future or of any other provision. 34.ADHERENCE TO LAW Lessee shall adhere to all applicable federal, state and local laws, rules, regulations and ordinances, including laws governing its relationship with its employees, including but not limited to, laws, rules, regulations and policies concerning Workers' Compensation, minimum and prevailing wage requirements and occupational safety and health requirements. 35.TIME OF ESSENCE It is mutually agreed that time is of the essence in the performance of all covenants and conditions to be kept and performed under the terms of this Lease. 36.WARRANTIES/GUARANTEES Except for those warranties specifically set forth herein, the City makes no warranty, guarantee or averment of any nature whatsoever concerning the physical condition of the Facility, and it is agreed that the City will not be responsible for any loss, damage or costs which may be incurred by Lessee by reason of any such physical condition. 37.HEADINGS The article and section headings contained herein are for convenience in reference and are not intended to define or limit the scope of any provision of this Lease. 38.CONSENT OF THE CITY Whenever consent approval or direction by the City is required under the terms contained herein, all such consent, approval or direction shall be received in writing from the City Manager, or designee. 39.MODIFICATION Any modification of this Lease shall be mutually agreed upon and reduced to writing, and to the extent it does not affect a major business term of the Lease, may be done for the City, by its City Manager, or designee. 2020 Tigard Senior Center Facility Lease 13 1 Page 40.GOOD FAITH The terms and conditions set forth in this Lease are for the benefit of both parties. In the performance of the duties and obligations set forth herein, there is an obligation and duty of reasonable diligence and good faith imposed on the parties to fulfill the terms, conditions and covenants in this Lease. 41.ATTORNEY FEES; VENUE In the event of a dispute between the parties as to the interpretation or applicability of any of the provisions of this Lease, and a suit or action is instituted in connection therewith, the prevailing party shall be entitled to recover in addition to costs and disbursements (including expert's fees and all costs associated with discovery), such sum as the court may adjudge reasonable as attorney fees, or in the event of appeal or review, such fees as may be as allowed by the court. Washington County Circuit Court shall be the venue for an action or suit concerning the terms of this Lease. 42.APPLICABLE LAW This Lease shall be governed by and construed in accordance with the laws of the State of Oregon. 43.ENTIRE AGREEMENT It is understood and agreed that this instrument contains the entire agreement between the parties relating to the subject matter hereof. It is further understood and agreed by Lessee that the City and its agents have made no representations or promises with respect to this Lease or the making or entry into this Lease, except as expressly set forth in this Lease. 44.WARRANT OF AUTHORITY The City and Lessee warrant that all actions required to authorize entry by the parties into this Lease have been performed, and the individuals executing this Lease warrant that they have full authority to execute this Lease on behalf of the entity for whom they are acting herein. IN WITNESS WHEREOF, the parties have executed this Lease effective on the Effective Date. CITY OF TIGARD, OREGON MEAS ON WHEELS PEOPLE OF OREGON By: By: Name: Kathy Nyland Name: Title: Interim City Manager Title: Date Signed: Date Signed: 2020 Tigard Senior Center Facility Lease 14 1 Page EXHIBIT A LEASE DETAILS The scope of the required services to be performed by Lessee consist of the operation and management of Meals on Wheels People program located in the Tigard Senior Center. Capitalized terms not defined in this "Lease Details" document shall have the definitions assigned to them in the Lease. In the event of a conflict between the terms of the Lease and this "Lease Details" document, the terms of the Lease shall control. Details on the scope of services are as follows: A. SERVICE PROGRAM Lessee shall operate and manage the Meals on Wheels Program designed to support the nutritional needs and enhance the quality of life for seniors in the Tigard community. B. LOCATION The location of the Tigard Senior Center is 8815 SW O'Mara St,Tigard, Oregon. C. FURNISHINGS AND EQUIPMENT In the event of termination of this agreement, all such furnishings, equipment, and decorations, which are permanently attached to the facility, shall remain in the facility in good repair, with allowance for wear and tear, occasioned by normal use. Each of the parties hereto including the City shall retain ownership of any non-fixture equipment, pots, pans, dishes, utensils, and other personal property acquired by its own funds,by funds received from grants and donations to such party for acquiring such personal property, or such personal property as may be donated to such party. D. HOURS OF OPERATION Lessee shall have use of the facility from Monday at 7:00 A.M. through Friday at 5:00 P.M. Lessee shall have first priority for additional use of the facility outside of the hours noted in this paragraph. E. GENERAL CONSIDERATIONS The City will not be responsible for any damage, loss, or theft of property on the Facility. The City will provide a simple motion sensor on the Facility but will not provide security for the area. Lessee will be responsible for ensuring that the proper equipment and consumables are properly secured when the Meals on Wheels People program is not open for business. F. TIGARD SENIOR CENTER EQUIPMENT LIST A mutually agreed upon inventory list of property owned by the City and the Lessee shall be maintained and updated quarterly. This list will document ownership of equipment and furnishings and determine responsibility for maintenance, repairs and replacement. The list may be amended at any time by mutual written agreement of their designees. Tigard Senior Center Equipment List Meals on Wheels People City of Tigard Kitchen equipment(stove, disposal, ovens, Rolling warmer oven -CresCor refrigerators, etc.) Ice maker- Manatowoc Model #IY0324A Washer& dryer Kitchen utensils (pots, pans, utensils,table settings) Sundeck tables and umbrellas Dining room tables and chairs Aluminum tables downstairs Sundeck barbecue Stacking chairs stored downstairs Library furnishings Touch up paint supply Piano Janitor closet supplies Tables/chairs in entry area Security camera system (in server room) PA system component (Mics, speakers&CD player) Exterior large flower pots Exterior flag Exterior park benches (3) Square tables&chairs by Kiln Room Arctic air white frig Computer Lab Computers (3), tables and chairs in Library PA System (sound mixer, box and power amp) Office furniture Shelving in the drivers' prep room Office computers&equipment(including copier& phones) Conference Table&Chairs downstairs Frig Model T23 True in dining room Coffee maker in dining room All white freezer in drivers' prep room TVs Kiln Soap& rinse dispenser on kitchen dishwasher& the hosing Microwaves in kitchen and drivers' prep room Frigidaire Freezer Model#LFUH21F7LM2/Serial #WB14265374 2 AIS-4437 5. Workshop Meeting Meeting Date: 12/15/2020 Length (in minutes): 30 Minutes Agenda Title: Presentation of External Financial Audit by Moss Adams & Comprehensive Annual Financial Report (CAFR) Prepared For: Jared Isaksen, Finance and Information Services Submitted By: Liz Lutz, Finance and Information Services Item Type: Update, Discussion, Direct Staff Meeting Type: Council Workshop Mtg. Public Hearing: Publication Date: Information ISSUE Present to the City Council the Comprehensive Annual Financial Report (CAFR) along with other related communication and results from the external financial audit for the city and the Tigard Town Center Development Agency for the fiscal year ending June 30, 2020. The presentation may include recommendations for opportunities for improvement noted by Moss Adams during the course of the audit. STAFF RECOMMENDATION / ACTION REQUEST No action required. Management, and the external auditors from Moss Adams will present the CAFR and results from the audit to council. KEY FACTS AND INFORMATION SUMMARY Oregon Revised Statutes 297.425 requires that every city publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America (GAAP) and audited in accordance with auditing standards generally accepted by a firm of licensed certified public accountants. Moss Adams, the city's external audit firm, performed an audit of the city's financial operations for fiscal year ending June 30, 2020. They reported their findings to the Audit Committee on December 1, 2020. Their reports are included in the city's Comprehensive Annual Financial Report (CAFR) and the TCDA financial report, which will be finalized and delivered to the Council on December 15, 2020. Moss Adams will provide an overview of audit procedures performed and highlight areas with opportunities for improvement or best practices. Additionally, the city's Comprehensive Annual Financial Report was submitted to the Government Finance Officers' Association for their Excellence in Financial Reporting Certificate program. OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION Fiscal year 2019 audit presented to council on 12/17/2019. Attachments Audit Letter Ci!3: of Tigard CAFR Document TCDA CAFR Document Presentation x i COMMUNICATION TO THOSE CHARGED WITH GOVERNANCE AND INTERNAL CONTROL RELATED MATTERS CITY OF TIGARD, OREGON June 30,2020 din MOSSADAMS MOSSADAMS Communication to Those Charged with Governance and Internal Control Related Matters To the City Council Members City of Tigard, Oregon We have audited 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, 2020, and have issued our report thereon dated December 3, 2020. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Auditing Standards Generally Accepted in the United States of America As stated in our audit contract dated April 27, 2016, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit in accordance with generally accepted auditing standards and to design the audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, we considered the City's internal control solely for the purposes of determining our audit procedures and not to provide assurance concerning such internal control. We are also responsible for communicating significant matters related to the financial statement audit that, in our professional judgment, are relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. We are also responsible for performing tests of compliance with certain provisions of laws, regulations, contracts, and grant agreements, including provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules OAR 162-010-000 to 162-010-330 of the Minimum Standards for Audits of Oregon Municipal Corporations, noncompliance of which could have a direct and material effect on the determination of financial statement amounts. 1 Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you in the engagement letter. Significant Audit Findings Qualitative Aspects ofAccounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in the notes to the financial statements. No new accounting policies were adopted and there were no changes in the application of existing policies during fiscal year 2020. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most significant estimates affecting the financial statements include: Net Pension Liability and Related Pension Expense—This represents the amount of annual expense recognized for pensions and the related pension asset or liability. The amount is actuarially determined, with OPERS management input. We have evaluated the key factors and assumptions used to develop the annual expense in determining that it is reasonable in relation to the combined and individual financial statements taken as a whole. Unbilled Revenue— Unbilled revenue is a measure of revenue earned through the end of the reporting period that has yet to be billed. This generally represents accounts with billing cycles that start in the reporting year and end in the subsequent year. We have evaluated the key factors and assumptions used to develop unbilled revenue in determining that it is reasonable in relation to the financial statements taken as a whole. Allowance for Doubtful Accounts—This represents an estimate of the amount of accounts receivable that will not be collected. We have evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole. Recovery Periods for the Cost of Capital Assets—This represents the depreciation of capital assets. We have evaluated the key factors and assumptions used to develop the recovery periods in determining that they are reasonable in relation to the financial statements taken as a whole. 2 Other Post-Employment Benefit Obligations—This represents the amount of annual expenses recognized for post-employment benefits and the related asset or liability. The amount is actuarially determined with management input. We have evaluated the key factors and assumptions used to develop the annual expenses in determining that it is reasonable in relation to the financial statements taken as a whole. Financial Statement Disclosures The disclosures in the financial statements are consistent, clear, and understandable. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. We did not note any disclosures in the financial statements which we consider sensitive to potential users. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. For purposes of this letter, professional standards define an audit adjustment as a proposed correction of the financial statements made subsequent to the start of audit final fieldwork. An audit adjustment may or may not indicate matters that could have a significant effect on the City's financial reporting process (that is, cause future financial statements to be materially misstated). No audit adjustments were identified during the course of our audit procedures. Passed adjustments are those entries found during the course of the audit that management has decided to not post to the financial statements. We identified the following passed audit adjustment during the course of our audit procedures. 1) Record the impact on beginning fund balance and deferred outflows of resources for not recording a loss on refunding previously for the Series 2011 B Library Refunding Bonds— Increase in beginning net position of$215,000. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 3, 2020. 3 Management Consultation with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Significant Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. 4 Communication of Internal Control Related Matters In planning and performing our audit of the financial statements of the City as of and for the year ended June 30, 2020, in accordance with auditing standards generally accepted in the United States of America, we considered the City's internal control over financial reporting (internal control)as a basis for designing our auditing procedures 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. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. In addition to the required communications, we have identified the following matters for your consideration. Our recommendations are based on observations and testing during the course of our audit. These recommendations should be evaluated by management and the Council Members for implementation and the City should conduct a cost benefit analysis including consideration of the risks for the recommended action. Other Matters Utility Billing 1) During our review of the customer billing process, we noted that all members of the utility billing department have access to change billing rates in the system. We recommend that access to change rates be restricted to a limited number of employees outside of the utility billing function, and that any such changes to billing rates are reviewed for accuracy. (Repeat comment from 2019 audit). 2) During our review of customer billing process, we noted that an allowance for doubtful accounts was not established considering the rise in outstanding utility receivables. We recommend management to assess the collectability of the City's outstanding receivables and determine whether an allowance is needed, especially with the continuing economic impact from the COVID-19 crisis in the foreseeable future. (New comment in 2020). 5 Intergovernmental Agreement 1) During our discussion with management and review of the intergovernmental agreement and amendments between the City of Tigard and the City of Lake Oswego for the Lake Oswego-Tigard Water Partnership, we noted that although the project is in commercial operation at fiscal year-end, no governing agreement exists to clearly stipulate ownership of the assets and responsibilities for repairs and maintenance costs going forward. We recommend that both municipalities continue to enter into discussions and draft a governance agreement to ensure the intent of both parties for their respective rights and obligations for operational decisions, sharing of operating revenues and expenses, and respective responsibility for capital asset maintenance and major repairs are explicitly stated. Such an agreement will also help guide each municipality in the appropriate accounting treatment for the related assets. (Repeat comment from 2019 audit). Financial Close&Reporting 1) During our control procedures over the financial close and reporting cycle, we noted a lack of documentation of management's review and approval of the draft financial statements. We recommend that the financial statement document be reviewed and approved by someone other than the person drafting the financial statement, and that the approval be documented. (Repeat comment from 2019 audit). IT Security&Access 1) During risk assessment of the information technology environment, we noted a formal change management policy for making changes to IT systems does not exist. To ensure a system is implemented and maintained properly, a formalized process should be developed which requires approval for changes to the production environment prior to the installation or implementation. Further, significant changes should be controlled and validated in a testing environment prior to implementation in the production environment. We recommend management to adopt a formal change management policy to guide future system changes. (New comment in 2020). This communication is intended solely for the information and use of management and the Council Members and is not intended to be and should not be used by anyone other than these specified parties. 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x x + - x x + - x x + - x x + - x x + - x x + - x + - x x + - x x + - x x + - x x x x + - x x + - x x + - x x + - x x + - x x - x x + - x x + - x x + - x x + - � A,/1 s+K -4mx C + x - / x + x + x - x x + x + x - / x + x + x - / x + x + x + - x x + - x x + - x 7. + - x x + AYI�,1- J-H Lk/i J x x + - x x + - x x + - x x + - x + - x x + - x x + - x x + - x x + - x x + - x x x x + - x x + - x x + - x x + - x x + - x x + - x x + - x x + - x x + - x x + - /. + - x x + - x x + - x x t - x x + - x x + - x x t - x x + - x x + - x x t - x x + x x + - x x + - x x + - x x + - x x + - x x + - x x + - x x + - x x + - x x + - x + - x x + - x '/. + - x x + - x x t - x '/. + - x x + - x x + - x x + - x x + - x x + - '/. + - x x + - x x + - x x + - x x + - x x + - x x + - x x + - x x + - x x + - x x - x x t - x '/. + - x x + - x x t - x '/. + - x x + - x x + - x '/. + - x x + - x x + - x + - x x + - x x + - x x + - x x + - x x + - x x + - x x + - x x + - x x + - x x + City / Tigard, • • Comprehensive Annual Financial Report f FISCAL YEAR ENDING JUNE 30, 2020 fto r 1 40 i TIGARD V. W!L1 TIGARD City of Tigard, Oregon Comprehensive Annual Financial Report For the fiscal year ended, June 30, 2020 Prepared by: City of Tigard — Finance and Information Services Department 3 City of Tigard, Oregon Table of Contents Introductory Section Letterof Transmittal-------------------------------------------------------------------------------------------------------------------- 11 Certificate of Achievement for Excellence in Financial Reporting----------------------------------------------------------- 19 OrganizationChart----------------------------------------------------------------------------------------------------------------------- 20 PrincipalOfficials------------------------------------------------------------------------------------------------------------------------- 21 Financial Section Report of Independent Auditors----------------------------------------------------------------------------------------------------- 25 Management's Discussion and Analysis-------------------------------------------------------------------------------------------- 28 Basic Financial Statements: Government-Wide Financial Statements Statement of Net Position ---------------------------------------------------------------------------------------------------- 45 Statement of Activities--------------------------------------------------------------------------------------------------------- 46 Fund Financial Statements Major Governmental Funds: BalanceSheet ----------------------------------------------------------------------------------------------------------------- 48 Reconciliation of the Balance Sheet to the Statement of NetPosition----------------------------------------------------------------------------------------------------------------- 49 Statement of Revenues, Expenditures,and Changes in Fund Balance----------------------------------------- 50 Reconciliation of the Statement of Revenues, Expenditures,and Changes in Fund Balance to the Statement of Activities ------------------------------------------------------- 51 Proprietary Funds: Statement of Net Position ------------------------------------------------------------------------------------------------- 52 Statement of Revenues, Expenses,and Changes in Fund Net Position---------------------------------------- 53 Statementof Cash Flows--------------------------------------------------------------------------------------------------- 54 Pension Trust Fund: Statement of Fiduciary Net Position ------------------------------------------------------------------------------------ 57 Statement of Changes in Fiduciary Net Position--------------------------------------------------------------------- 58 Notes to Basic Financial Statements------------------------------------------------------------------------------------------------ 61 Required Supplementary Information: Schedules of Revenues and Expenditures—Budget and Actual: GeneralFund ----------------------------------------------------------------------------------------------------------------- 122 Schedule of the City's Proportionate Share of the Net Pension Liability(Asset)--------------------------------- 123 Schedule of City's Contributions—Oregon Public Employees Retirement System------------------------------ 124 Schedule of the Changes in the City's Total OPEB Liability and Related Ratios—Implicit Rate Subsidy Plan ---------------------------------------------------------------------------- 125 Schedule of the City's Proportionate Share of the Net OPEB Liability(Asset)—Oregon Public Employees Retirement System, Retirement Health Insurance Account ------------------------------- 126 Schedule of the City's Contributions—Oregon Public Employees Retirement System, Retirement Health Insurance Account ----------------------------------------------------------------------------------- 127 Other Supplementary Information: Nonmajor Governmental Funds Combining Statements: Combining Balance Sheet------------------------------------------------------------------------------------------------- 129 Combining Statement of Revenues, Expenditures,and Changes in Fund Balances----------------------- 130 Special Revenue Funds: Combining Balance Sheet—Nonmajor Special Revenue Funds------------------------------------------------- 134 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 136 Schedules of Revenues and Expenditures—Budget and Actual: GasTax Fund------------------------------------------------------------------------------------- 138 CityGas Tax Fund------------------------------------------------------------------------------------------------------------ 139 Transient Lodging Tax Fund----------------------------------------------------------------------------------------------- 140 Electrical Inspection Fund------------------------------------------------------------------------------------------------- 141 BuildingFund----------------------------------------------------------------------------------------------------------------- 142 CriminalForfeiture Fund -------------------------------------------------------------------------------------------------- 143 UrbanForestry Fund-------------------------------------------------------------------------------------------------------- 144 ParksUtility Fund------------------------------------------------------------------------------------------------------------ 145 LibraryFund------------------------------------------------------------------------------------------------------------------- 146 Debt Service Funds: Combining Balance Sheet—Nonmajor Debt Service Funds------------------------------------------------------ 151 Combining Statement of Revenues, Expenditures,and Changes in Fund Balance—Nonmajor DebtService Funds------------------------------------------------------------------------------------------------------- 152 Schedules of Revenues and Expenditures—Budget and Actual: Bancroft Bond Debt Service Fund--------------------------------------------------------------------------------------- 153 City Center Urban Renewal Debt Service Fund---------------------------------------------------------------------- 154 Tigard Triangle Debt Service Fund-------------------------------------------------------------------------------------- 155 Major Debt Service Fund Schedule of Revenues and Expenditures—Budget and Actual: General Obligation Debt Service Fund--------------------------------------------------------------------------------- 156 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: FacilityFund------------------------------------------------------------------------------------------------------------------- 164 Transportation Development Tax Fund------------------------------------------------------------------------------- 165 Underground Utility Fund------------------------------------------------------------------------------------------------- 166 Street Maintenance Fee Fund ------------------------------------------------------------------------------------------- 167 TransportationSDC Fund-------------------------------------------------------------------------------------------------- 168 ParksCapital Fund----------------------------------------------------------------------------------------------------------- 169 ParksBond Fund------------------------------------------------------------------------------------------------------------- 170 ParksSDC Fund--------------------------------------------------------------------------------------------------------------- 171 TransportationCIP Fund--------------------------------------------------------------------------------------------------- 172 City Center Capital Improvements Fund------------------------------------------------------------------------------ 173 Tigard Triangle Capital Improvements Fund------------------------------------------------------------------------- 174 Proprietary Funds: Enterprise Funds: Schedules of Revenues and Expenditures—Budget and Actual: SanitarySewer Fund-------------------------------------------------------------------------------------------------------- 177 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses—Sanitary Sewer Fund ----------------------------------------------------------------- 178 StormwaterFund------------------------------------------------------------------------------------------------------------ 179 Water Quality and Quantity Fund--------------------------------------------------------------------------------------- 180 Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses—Stormwater Funds-------------------------------------------------------------------- 181 WaterFund ------------------------------------------------------------------------------------------------------------------- 182 WaterSDC Fund ------------------------------------------------------------------------------------------------------------- 183 5 City of Tigard, Oregon Table of Contents,continued Financial Section, Continued Other Supplementary Information,Continued: WaterC I P Fund -------------------------------------------------------------------------------------------------------------- 184 WaterDebt 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: CentralService Fund-------------------------------------------------------------------------------------------------------- 198 Public Works Administration Fund ------------------------------------------------------------------------------------- 199 Public Works Engineering Fund------------------------------------------------------------------------------------------200 Fleet/Property Management Fund------------------------------------------------------------------------------------- 201 InsuranceFund--------------------------------------------------------------------------------------------------------------- 202 Other Schedules: Schedule of Bond and Bond Interest Transactions--------------------------------------------------------------------205 Schedule of Future Debt Service Requirements of: General Obligation Bonds------------------------------------------------------------------------------------------------- 206 Full Faith and Credit Bonds----------------------------------------------------------------------------------------------- 207 Water Revenue Bonds----------------------------------------------------------------------------------------------------- 208 Safe Drinking Water Revolving Loan Funds --------------------------------------------------------------------------209 Statistical Section Net Position by Component------------------------------------------------------------------------------------------------- 214 Changesin 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 Ratioof Debt by Type--------------------------------------------------------------------------------------------------------- 242 Computation of Water Revenue Bonds Debt Coverage ------------------------------------------------------------- 244 DemographicsStatistics------------------------------------------------------------------------------------------------------246 PrincipalEmployers------------------------------------------------------------------------------------------------------------ 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 7 No content appears on this page by design. 8 Introductory Section 9 10 City of Tigard December 3, 2020 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, 2020, 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, 2020, 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 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 ending June 30, 2020, 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, 2020, 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 The City of Tigard is located in southeast Washington County, 9 miles from downtown Portland, Oregon. The city is included in the Metro urban growth TiWill ti boundary and Tigard's neighboring cities include Beaverton, Lake Oswego, Tualatin, Durham, Portland,and King City.State Highway 99W,runs north and O r` e g O n 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 53,000. 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 Iq and development to aid with transition from farmland to residential land over the next several decades. Throughout fiscal year 2020, permitting and construction h40 21 phase of development of River Terrace was in full swing. Portland Full build out is expected to take roughly 20 years. Upon completion, River Terrace is expected to be home to around 6,500 new residents. More information about = � _ Tigard's newest neighborhood is on the city's website at: Beaverton tQ http://www.tigard-or.gov/river terrace.php. �4 m The city is governed by an elected mayor and four council members who comprise the city council.The city's charterTigard established the Mayor/Council form of government. Each TI+ _ g�� member of the city council is elected at-large to serve a V s�'� Os eg9o four-year term. The mayor presides at council meetings hIN and is elected at-large for a four-year term.The mayor and OF— council 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. 12 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. Most 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 (FY).The area's unemployment rate has steadily declined over this period, until the FY ended June 30, 2020 when unemployment more than doubled the amount of the previous year due to the COVID-19 pandemic. Tigard's most current unemployment rate is 10.8 percent as of June 2020, which is 0.7 percent lower than the Portland Metro area and 0.8 percent lower than the State of Oregon. Unemployment trends 12.0% N 10.0% 6.0% T a. 4.0% m 2.0% c D 0.0% 2011 2012 2013 2614 2015 2416 2017 2018 2019 2024 State of Oregon 9.4% &5% &1% 6.8% 5.5% 4.8% 3.7% 4.0% 4.0% 11.6% united States 9.2% &2% 7.8% 6.1% 5.3% 4.9% 4.3% 4.0% 3.7% 11.1% Portland Wtro 9.5% &0% 7.6% 6.1% 5.4% 4.9% 3.7% 3.6% 4.0% 11.5% Washington County &1% &2% 6.6% 5.6% 5.0% 4.7% 3.5% 3.5% 3.4% 10.4% City of Tigard &1% &2% 6.6% 5.4% 4.5% 4.4% 3.5% 3.5% 3.4% 10.8% Fiscal year 13 Response to COVID-19 On March 17, 2020, the city declared a state of emergency, which authorized staff to enact emergency operations, delegated purchasing and contract signature authority to the City Manager, waived all late fees and utility shutoffs, protected the health of city employees, relaxed enforcement of city codes to ease burdens on businesses and service sector workers. Many of the city's walk-in services have been disrupted, however public safety, water and sewer services continue uninterrupted. An example of the impact COVID-19 has had on our services can be seen the reduction of Police "calls for service" as reported in the statistical section at the end of the document (Operating Indicators by Function/ Program). Police calls for service include both public-demand dispatched calls and proactive, officer-initiated calls. In order to maintain appropriate social distance and preserve the health and safety of our officers and residents, the Police Department reduced some types of self-initiated actions once the City declared a state of emergency. The city has continued critical maintenance and repair work while incorporating social distancing precautionary measures for engineering and construction staff, and staff performing essential work in the field and at physical city locations. The city has responded to the pandemic in a number of ways. The city leveraged $300,000 of General Fund dollars to work with Community Development Financial Institutions and through state and federal CARES Act funding to provide business assistance of over$3 million.Through our Resident Aid Fund of Tigard (RAFT)the city provided $100,000 of General Fund dollars to help those that are houseless find shelter and help those on the brink of becoming houseless keep their homes. Lastly,through Tigard AID,the city has provided various levels of utility billing assistance.The city already has a program to help those that qualify on an income basis to pay the water portion of the utility bill. This program has been expanded by up to $50,000 by increasing the amount and frequency of assistance. The city created a program where individuals and businesses impacted by COVID can receive up to $40/month of assistance on their utility bill. The city pledged up to $125,000 through December 31, 2020 for businesses and up to $625,000 for individuals through December 31, 2020. Lastly, the city delayed utility rate increases that were scheduled to take effect on July 1, 2020 to January 1, 2021. Across the city's water, sewer, stormwater, streets, and parks charges on the utility bill,this delay in rate increases provided $1.4 million in bill relief for all customers. The COVID-19 pandemic is a significant new development that the city is closely monitoring to forecast the city's finances and outlook.Accordingly, any historical information or budgets and projections which predate the COVID-19 pandemic or do not include information regarding its impact, should be considered in light of a possible or probable negative impact from the COVID-19 pandemic. The city was able to include preliminary estimates of revenue impacts in the FY 2020-2021 Adopted Budget. Since the city is not heavily dependent on the sectors of the economy hardest hit, the city has not had to reduce services or lay off employees. The impact of the pandemic to the city's economy and tax revenue will continue to be monitored. While it appears that the city has sufficient revenues and reserves to maintain services, there can be no assurances that the spread of COVID-19 will not materially affect the city or have an adverse impact upon revenue collections. 2020 Summary of Local Statistics Number of businesses.............................................................................................2,609 Median household income.................................................................................$75,795 Median home value..........................................................................................$375,100 General fund permanent tax rate................................$2.5131 per$1,000 of assessed value Total assessed value (est. 2019/2020)......................................................7,046,400,810 14 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 2020—2025 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 2020 budget document includes the city's financial policies noted in the appendix starting on page 401. The policies can be found on line at: http://publicrecords.ti,gard-or.gov/Public/DocView.aspx?id=973365&dbid=0&repo=CityOfi,gard The goals of Tigard's fiscal policies are: • To enhance the city council's policy-making ability by providing accurate information on program and operating costs. • To assist sound management of the city government by providing accurate and timely information on current and anticipated financial conditions. • To provide sound principles to guide important decisions of the council and management which have significant fiscal impact. • To set forth operational principles,which minimize the cost and financial risk of the city's government consistent with services, desired by the public. • To employ revenue policies, which prevent undue or unbalanced reliance on any one source, distribute the cost of municipal services fairly, and provide adequate funds to operate desired programs. • To provide and maintain essential public facilities, utilities, infrastructure and capital equipment. • To protect and enhance the city's credit rating. • To insure that all surplus cash is prudently invested in accordance with the investment policy adopted by the council to protect city funds and realize a reasonable rate of return. Major initiatives The Tigard City Council meets annually in connection with the budget process to establish goals. Council goals are comprised of 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 2019-2021 council established goals for the city as follows: 15 1. Ensure the city's continued financial stability and sustainability while providing mandated services. Seek ways to fund and increase services valued by the community. • Develop and implement a communications plan, for city staff and elected officials, to engage the public about the cost and value of city services and explain funding challenges. • Increase trust with the community by regularly publishing a city report card,detailing our progress and challenges, and comparing our work to peer cities. • Pursue a local option levy and/or bond in May 2020. • By May 2019, determine specific services and/or facilities the voter will get by approving a local option levy and/or bond proposal and begin communicating it to the voters. • Council will actively participate in the city's communications regarding the community benefits of the local option levy and/or bond. • By mid-January,2020 refer a local option levy and/or bond for voters to consider at the May,2020 election. 2. Invest and connect key areas of the city to promote economic growth and community vitality. • Ensure that Tigard Triangle urban renewal investments promote equitable development and create a vibrant,walkable, and connected district. • Continue to make Downtown Tigard a place people want to be by making substantial progress on projects that attract new residential and business investment: o Design and engineering of the Universal Plaza o Construction of the Tigard Street Heritage Trail/Rotary Plaza o Redevelopment of the Main St. at Fanno Creek property o Main Street Green Street Phase 2 o Fanno Creek Overlook o Cultivate more relationships with future developers that share our multigenerational transit-oriented development vision. o Create an inventory of sites with high potential for transit-oriented housing redevelopment. o Support and participate in a branding effort for the Downtown and Tigard Triangle. o Evaluate the size and scope of the City Center Urban Renewal Plan to determine whether tax increment resources in the downtown are sufficient to meet council objectives. Prepare recommendations regarding the City Center urban renewal area's possible continuation. o Pursue the Ash Street Crossing to improve multi-modal circulation in the downtown. o Update the 2007 Leland report to accelerate downtown redevelopment, focusing on leverage possibilities from SW Corridor and other active transportation investments. • Ensure the Southwest Corridor project maximizes benefits to the Tigard community and minimizes negative impacts by implementing the memorandum of understanding with Tri-Met. Ensure urban design and pedestrian connections to Tigard light rail stations is prioritized in station area access plans. • Complete an initial assessment of Washington Square Regional Center Plan District and related development code.Identify barriers to redevelopment and develop a project of planning and code updates to attract investment in commercial, office, and high-density residential development with a range of price points. 16 3. Ensure Tigard grows and develops in a smart and inclusive manner. • Secure external resources to: o Accomplish all planning and outreach activities necessary to expand the city's urban growth boundary to include the South River Terrace Area. Complete Title 11 compliance, apply to Metro for UGB expansion, and annex South River Terrace. o Prepare a concept plan for West River Terrace. • The city will direct all work under this goal,which is contingent on: o All direct, indirect and overhead costs necessary to make South River Terrace "development-ready"funded by private sector partners and/or through grants prepared at the expense of the private sector partner. o The continuation of existing city plans and projects such that they are neither slowed nor disrupted by River Terrace planning. o The inclusion of equitable development principles in River Terrace planning. • Complete an Affordable Housing Plan and adopt recommended strategies to promote the development and retention of affordable housing in Tigard. Increase advocacy at the regional level for housing that is affordable,funding strategies, and consider an excise tax. • Study the viability for any future expansions of the city's urban growth boundary to include employment land so that new growth and ongoing service costs to Tigard residents and businesses are balanced. 4. Enhance two-way communication to understand community priorities and involve the community in the decision-making process. • Develop and implement strategies for city staff and council to engage with and hear directly from a wide variety of residents and businesses on important issues. • Initiate listening sessions with residents of unincorporated areas, within the urban growth boundary, about the opportunity for annexation. • Increase community understanding and knowledge of the city, its services and fiscal situation. • Promote an inclusive, open-minded, and progressive community. Implement initiatives to improve city services and participation that captures the diversity of the community and improves equity and inclusion. 5. Enhance walkability and pedestrian connectivity. • Develop an implementation strategy related to the ADA Transition Plan to identify the priorities for curb ramps and public sidewalks that must be repaired or replaced to meet current ADA guidelines. • Invest in walking connections by reviewing the Tigard sidewalk infill study and recommendations and continuing to dedicate specific funding for pedestrian and bike facility projects in the city's Capital Improvement Plan equaling at least ten percent of the transportation CIP planned expenditures. • Continue to advance and develop Safe Routes to School (SRTS) plans for Tigard schools and implement an improvement for at least one school per year including funding priorities. • Integrate the Complete Streets Policy to update the Transportation System Plan. Consider implementation of a Neighborhood Traffic Management Program. Implement a Citywide Transportation Safety Action Plan and develop a scope and budget for a pedestrian crossing improvement plan. • Seek Regional Transportation Options funding to develop a regional trail wayfinding plan, and improve signage along the Fanno Creek Trail. 17 • Advocate for local control of speed limits in residential neighborhoods. More information about the city's goals and initiatives can be found on the city's Finance and Information Services web page: http://www.tigard-or.gov/city hall/finance and information services.php. Awards and Acknowledgements The Government Finance Officers Association (GFOA)awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Tigard for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2019. This was the 34th 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 2020. This was the 32nd 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 2021 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, r Kathy Nyland Toby LaFrance Interim City Manager Director of Finance and Information Services 18 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, 2019 oxw� P- 2,%� Executive Director/CEO 19 Z City of Tigard, Oregon Citywide Organizational Chart as of June 30, 2020 City of Tigard Citizens of Tigard Mayor& City City Council Attorney City Manager ECentral City Community Finance& Library Police Public Works Services Management Development Information Svcs. -- Design& Human Community Administration Administration Administration Administration Communications Resources Planning Financial Circulation Support Water City Recorder Risk Building Operations Services Management Public Works Reader Engineering Municipal Economic Information Services Police Court City Manager's Development Services Operations Office Parks Technical Maintenance Fleet Utility Billing Services Maintenance Recreation Contracts Property &Purchasing Management Stormwater Sanitary Sewer Street Maintenance Street Lights &Signals 20 City of Tigard, Oregon Principal Officials as of July 1, 2020 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 21 No content appears on this page by design. 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, 2020, 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, 2020, 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 28 through 41 and 121 through 126 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 28 through 41 and 122 through 126 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 121 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 combining and individual nonmajor fund financial statements, budgetary schedules, other financial schedules on pages 129 to 202 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 3, 2020 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 3, 2020 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. GW C James C. Lanzarotta, Partner for Moss Adams LLP Portland, Oregon December 3, 2020 27 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, 2020. 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, 2020 by$499,490,229 (net position). Of this amount, $32,440,129 is restricted for transportation construction, maintenance and utility undergrounding, $12,413,195 is restricted for park development and improvements, $752,303 is restricted for tourism, $15,659,719 is restricted for water system construction and improvements, $8,832,297 is restricted for debt service, $10,074,209 is restricted for building development plan review and inspection, $604,896 is restricted for library capital improvements, $3,374,874 is restricted for urban development and improvements and $517,837 is restricted for law enforcement equipment. $89,757,537 is unrestricted net position may be used to meet the city's ongoing obligations to citizens and creditors and $325,063,233 is for net investment in capital assets. • The city's total net position had a net increase of$25,391,019 or 5.4 percent from the June 30, 2019 net position. Governmental activities net position increased by $16,067,188, or 5.5 percent. The business-type activities net position increased by $9,323,831 or 5.2 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 $98,118,037, an increase of 17,727,451 or 22.1 percent from fiscal year 2019. Of the combined ending governmental fund balances, $26,594,144 or approximately 27.1 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 $26,823,013, up $3,701,672 over the prior year. • The city's total debt increased by $56,267 or less than 0.1 percent from fiscal year 2019. 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 nonmajor 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. 28 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. 29 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 26 individual governmental funds. Information is presented separately in the governmental fund Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances for those funds that are considered significant (major) to the city taken as a whole. These financial statements report two major funds: General, and General Obligation Debt Service. Data from the other 24 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor 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. The proprietaryfund financial statements can be found in the Basic Financial Statements section of this report. 30 City of Tigard, Oregon Management's Discussion and Analysis 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 nonmajor 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 $499,490,229 at June 30, 2020. The largest portion of the city's net position, approximately 65.0 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 $84,669,459 or approximately 17.0 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 $89,757,537 or approximately 18.0 percent of total net position. At the end of the current year, the city is able to report positive balances in all categories of net position for governmental and business-type activities. Total net position increased by $25,391,019 or 5.4 percent during the current fiscal year. Total assets for governmental activities increased by approximately$22.6 million, or approximately 4.2 percent. Noteworthy changes included an increase in cash and investments of approximately $20 million or 22.4 percent. This increase is due to development activity in the city resulting in higher fee collection in the Transportation 31 City of Tigard, Oregon Management's Discussion and Analysis Development and Transportation SDC, and the sale of bonds for the Tigard Town Center Development Agency (TCDA). Governmental activities liabilities increased by approximately $6.5 million or 17.4 percent. Noteworthy changes include a bond sale of approximately$5.9 million. See the notes to the basic financial statements for more information. Business-type activities total assets increased by approximately$7.1 million or 2.6 percent over the prior year. Cash and investments increased by approximately $11.3 million or 16.7 percent over the prior year. This increase is mainly due to increased interest earnings, and higher utility rates. Capital assets decreased by$4.1 million or 1.8 percent. This decrease is due to depreciation expense being greater than the reinvestment in capital assets for the fiscal year ended June 30,2020. Total long-term debt for business-type activities decreased by approximately $2.2 million or 1.6 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 2020 2019 2020 2019 2020 2019 Current and other assets $115,791,910 $ 95,799,843 $ 86,546,559 $ 75,303,377 $202,338,469 $171,103,220 Capital assets 234,126,963 231,549,294 238,622,495 242,740,818 472,749,458 474,290,112 Total Assets 349,918,873 327,349,137 325,169,054 318,044,195 675,087,927 645,393,332 Deferred outflows 4,111,239 4,227,691 9,047 9,191 4,120,286 4,236,882 Current and other liabilities 11,587,326 11,164,421 8,073,236 7,169,015 19,660,562 18,333,436 Long-term liabilities outstanding 32,102,049 26,005,313 126,852,570 129,950,948 158,954,619 155,956,261 Total Liabilities 43,689,375 37,169,734 134,925,806 137,119,963 178,615,181 174,289,697 Deferred inflows 1,076,868 1,210,413 25,935 30,893 1,102,803 1,241,306 Net investment in capital assets 216,281,021 216,080,286 108,782,212 110,542,303 325,063,233 326,622,589 Restricted 61,695,111 40,908,235 22,974,348 20,044,161 84,669,459 60,952,396 Unrestricted 31,287,737 36,208,160 58,469,800 50,316,066 89,757,537 86,524,226 Total Net Position $309,263,869 $293,196,681 $190,226,360 $180,902,530 $499,490,229 $474,099,211 32 City of Tigard, Oregon Management's Discussion and Analysis City of Tigard —Summary of Changes in Net Position Governmental Business-Type Total Activities Activities 2020 2019 2020 2019 2020 2019 Revenues Program revenues: Charges for services $ 11,103,876 $ 13,203,823 $ 30,292,118 $ 30,952,487 $ 41,395,994 $ 44,156,310 Operating grants and contributions 9,625,070 9,594,291 - - 9,625,070 9,594,291 Capital grants and contributions 8,542,864 12,268,270 3,139,146 3,285,377 11,682,010 15,553,647 General revenues: Property taxes 20,325,728 19,101,543 - - 20,325,728 19,101,543 Franchise fees 6,360,563 6,211,736 6,360,563 6,211,736 Unrestricted intergovernmental revenues 2,484,051 2,522,428 2,484,051 2,522,428 Interest 2,520,783 2,416,827 1,770,933 1,606,834 4,291,716 4,023,661 Miscellaneous 502,164 453,435 120,392 652,421 622,556 1,105,856 Total revenues 61,465,099 65,772,353 35,322,589 36,497,119 96,787,688 102,269,472 Expenses Community services 25,961,675 23,370,174 - - 25,961,675 23,370,174 Public works 9,578,442 12,129,476 9,578,442 12,129,476 Community development 5,817,188 5,146,891 5,817,188 5,146,891 Policy and administration 3,383,319 3,688,137 3,383,319 3,688,137 Interest on long-term debt 760,211 771,834 760,211 771,834 Sewer - - 3,044,154 3,128,483 3,044,154 3,128,483 Stormwater 3,433,481 3,261,312 3,433,481 3,261,312 Water 19,418,199 17,223,333 19,418,199 17,223,333 Total expenses 45,500,835 45,106,512 25,895,834 23,613,128 71,396,669 68,719,640 Revenues over expenses 15,964,264 20,665,841 9,426,755 12,883,991 25,391,019 33,549,832 Transfers in(out) 102,924 460,325 (102,924) (460,325) - - Changes in net position 16,067,188 21,126,166 9,323,831 12,423,666 25,391,019 33,549,832 Beginning net position 293,196,681 272,070,515 180,902,529 168,478,863 474,099,210 440,549,378 Ending net position $309,263,869 $293,196,681 $190,226,360 $180,902,529 $499,490,229 $474,099,210 33 City of Tigard, Oregon Management's Discussion and Analysis Expenses and Program Revenues—Governmental activities—June 30, 2020 $25,000,000 - $20,000,000 $15,000,000 $10,000,000 ■ Revenues $5,000,000 ■ Expenses $0 7 erll SecJ\ e \tAo � r r 6-- 6P G�� esur�ty � \r�eCr 1e� Jand adr esN_&\O Col0C`r-y Governmental Activities Governmental activities increased the city's net position by $16,067,188. This increase is less than the approximate $21.1 million increase in net position from governmental activities experienced in fiscal year 2019. While most revenues, including property taxes, interest, and franchise fees experienced increases during fiscal year 2020, the decrease comes from an approximate $3.7 million less capital grants and contributions and $2.1 million less in charges for services. Noteworthy reasons for the change from the prior year are as follows: • Property taxes constitute approximately 33.1 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 $1.1 million or 5.5 percent over 2019. Oregon has a "rate-based" system in which property taxes are expressed in a dollar amount per thousand dollars of assessed value. The City of Tigard's permanent tax rate is $2.5131 per thousand dollars of assessed value. The money raised by this levy is available for general purposes. The permanent rate is multiplied by the assessed value each year to arrive at the tax authority for that year. Assessed value growth is limited to a maximum 3 percent per year, plus a pro-rated share of new construction and annexations. Assessed value cannot exceed real market value. General Obligation (GO) debt service levies are calculated to produce enough tax revenues that (when combined with other resources such as interest earnings and fund balance) will be enough to pay debt service due on these voter-approved bonds. On November 2, 2010, voters approved a bond measure in the amount of$17.0 million for acquisition and development of park land. These bonds were sold on February 3, 2011 to Wells Fargo Bank, National Association. Also on that date, the city refunded $9.0 million of outstanding general obligation bonds that were approved on May 21, 2002, by voters to build a new library. On April 28, 2020 the city issued more than $5.9 million in general obligation 34 City of Tigard, Oregon Management's Discussion and Analysis refunding bonds to defease part of the park bonds.This refunding reduced total debt service payments by more than $1.7 million over five years resulting in an economic gain of more than$1.2 million.Taxes collected through the tax levy repay the bonded debt. • Capital grants and contributions experienced an approximate $3.7 million decrease from fiscal year 2019. This decrease is due to a reduction in new construction and activities generating system development charges. • Overall expenses for governmental activities of $45,500,835 increased from the prior fiscal year by approximately $394,000. This increase was due to an escalation in community development and community services activities. Revenues by Source—Governmental Activities-June 30, 2020 Taxes Capital grants and 37% contributions 19% Operating grants Interest and contributions 4% 16% 4 Franchise fees Charges for services 10% 180 Misc 1% Business-type Activities Business-type activities increased the city's net position by $9,323,831. The primary reasons for the current year's increases are: • Charges for services represent approximately 85.8 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 decreased by approximately $660,000 or 2.1 percent over fiscal year 2019, with the largest decrease in water revenues. • Expenses for water operations increased approximately $2.3 million or 19.5 percent from the prior fiscal year. The increase is primarily due to an increase in depreciation expense on water system assets. 35 City of Tigard, Oregon Management's Discussion and Analysis Expenses and Program Revenues— Business-type Activities—June 30, 2020 $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 r $0 S� el mate, pato San�at�4 �tat� 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 2020, the city's governmental funds reported combined ending fund balances of $98,118,037 an increase of $17,727,451 over the prior year. Approximately 30.4 percent or $29,851,000 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$63,533,298 or 64.8 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 2020, the unassigned fund balance was $26,823,013 or approximately 95.9 percent of the total fund balance of$27,981,597. 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 96.6 percent of total General Fund expenditures. 36 City of Tigard, Oregon Management's Discussion and Analysis The fund balance of the General Fund increased by $3,795,897 or 15.7 percent. The increase is primarily attributable to the reduction in General Fund support for capital projects. 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. At the end of fiscal year 2020, the fund balance was $1,948,178, an increase of $437,209 from the prior year. The increase was due to the issuance of more than $5.9 million in general obligation refunding bonds to defeasance part of the park bonds. 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 $25,061,892 with individual fund unrestricted net position at: • Sanitary Sewer $7,754,177 • Stormwater $9,604,864 • Water Funds $7,702,851 The factors concerning the finances of these funds have already been addressed in the discussion of the city's business-type activities. General Fund Budgetary Highlights The city council approved three supplementary budget amendments to the adopted General Fund budget. Total final adopted budgeted expenditures increased by $852,424 from the original budgeted numbers. Budgeted General Fund contingency was decreased by $507,536 or 31.0 percent. Following are noteworthy changes from the original budget to the final adopted budget in the General Fund: • Community Services - Budget appropriation increases totaled $607,249, the majority of which was to fund programs to supply aid to business and housing assistance. • Community Development — Budget appropriation increases totaled $222,740, the majority of which was for various capital projects. • Policy and Administration—Budget appropriation increases totaled $22,435,the majority of which was 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$5,500 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 $265,567 due to an increase in the Local Government Investment Pool interest rates and a growing balance. • Fines and forfeitures —variance with budget of $(1,120,027) due to a delay in collection of fines and forfeitures related to COVID. • Franchise fees — variance with budget of $110,962 due to a contractor ensuring franchise fees were collected from all applicable companies. 37 City of Tigard, Oregon Management's Discussion and Analysis • Taxes — variance with budget of $(171,774) due mainly to a settlement of the Comcast property tax lawsuit in the prior year. Capital Asset and Debt Administration Capital Assets Governmental Activities The city's investment in capital assets for its governmental activities as of June 30, 2020, amounts to $234,126,963 (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 $2,577,669 or approximately 1.1 percent over the prior year. The city recorded approximately $195,000 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, 2020, amounts to $238,622,495 (net of accumulated depreciation). In addition to machinery, equipment and vehicles, the capital assets include the sanitary sewer collection system, stormwater, and water systems. Total decrease in the city's investment in business-type activities capital assets was $4,118,323 or 1.7 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 2020 2019 2020 2019 2020 2019 Land $ 26,380,089 $ 26,380,089 $ 11,975,910 $ 11,975,910 $ 38,355,999 $ 38,355,999 Construction in progress 8,433,979 6,140,084 2,998,627 1,689,824 11,432,606 7,829,908 Buildings and building improvements 12,588,769 13,224,286 72,936,629 74,834,822 85,525,398 88,059,108 Land improvements 9,615,453 7,604,041 7,505,761 7,505,761 17,121,214 15,109,802 Sewer system - - 17,905,816 18,651,593 17,905,816 18,651,593 Stormwater system 12,481,961 12,374,258 12,481,961 12,374,258 Water system 110,349,547 113,087,699 110,349,547 113,087,699 Machinery and equipment 237,513 279,540 1,861,885 2,046,019 2,099,398 2,325,559 Autos and trucks 1,307,557 1,225,357 606,359 574,932 1,913,916 1,800,289 Office equipment 1,748,428 2,092,324 - - 1,748,428 2,092,324 Infrastructure 173,815,175 174,603,573 - - 173,815,175 174,603,573 Total Capital Assets $ 234,126,963 $ 231,549,294 $ 238,622,495 $ 242,740,818 $ 472,749,458 $ 474,290,112 38 City of Tigard, Oregon Management's Discussion and Analysis The following chart indicates the city's capital assets as of June 30, 2020. 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 progress 2.4% Buildings and building Infrastructure improvements 36.8% 18.1% Office equipment 0.4% Land improvements Autos and trucks 3.6% 0.4% Sewer system Machinery and Storm drainage system 3.$% equipment Water system 2.6% 0.4% 23.3°/0 Debt Outstanding As of year-end, the city had total debt outstanding of $149,710,812. Of this amount $19,870,531 is general obligation and full faith and credit bonds; $128,254,644 represents water revenue bonds; $1,585,637 represents a note payable. Both general obligation bonds and full faith credit bonds are direct obligations pledging the full faith and credit of the city. Total debt increased by$56,267 or approximately less than 0.1 percent during the current fiscal year. 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 $1,585,637 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. 39 City of Tigard, Oregon Management's Discussion and Analysis 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, 2020. 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 2020 2019 2020 2019 2020 2019 General obligation $ 19,870,531 $ 16,094,594 $ - $ $ 19,870,531 $ 16,094,594 Local improvement - 28,419 - - 28,419 Bank loan payable - 780,000 - - 780,000 Note payable - - 1,585,637 1,695,942 1,585,637 1,695,942 Revenue bonds - - 128,254,644 131,055,590 128,254,644 131,055,590 Total Outstanding Debt $ 19,870,531 $ 16,903,013 $ 129,840,281 $ 132,751,532 $ 149,710,812 $ 149,654,545 Total Outstanding Long-Term Debt General obligation 13.3% Note payable Revenue bonds 1.1% 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 2021: 40 City of Tigard, Oregon Management's Discussion and Analysis • The unemployment rate for the City of Tigard was 10.8 percent at the end of the fiscal year, June 30, 2020. This is less than the State of Oregon rate of 11.6 and the national average of 11.1 percent for June 2020. • Property tax revenues are the single largest sources of revenue in the General Fund and it accounts for 48 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 50,000, is limited and therefore, General Fund growth is particularly sensitive to taxable growth. Property tax revenues are forecasted to increase by 3.5 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 150—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, 2020, there were 2,737 businesses licensed in the city as compared to 2,713 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. • 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. Due to COVID impacts on the community, Tigard delayed all utility rate increases from the beginning of the fiscal year to the middle, resulting in a six-month delay in revenue increases. Clean Water Services sets rates for sanitary sewer and storm water management (SWM). • While COVID-19 has affected the amount of revenues projected to be received in the upcoming fiscal year it will not be significant enough to cause the city to reduce the budget or level of services to be provided. All of these factors were considered in preparing the city's budget for fiscal year 2020-2021. The current forecast shows that in the short-term the city's financial condition is stable in most funds. The fiscal year 2021 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 41 No content appears on this page by design. 42 Basic Financial Section 43 44 CITY OF TIGARD,OREGON STATEMENT OF NET POSITION June 30,2020 Governmental Business-Type Total ASSETS Activities Activities Cash and investments $ 42,732,126 $ 54,188,443 $ 96,920,569 Accounts receivable,net 5,216,224 5,826,224 11,042,448 Property taxes receivable 332,405 - 332,405 Assessment liens receivable 214,276 214,276 Prepaids 541,213 - 541,213 Inventory 5,699 268,883 274,582 Investment in joint venture - 1,060,472 1,060,472 Property held for resale - 445,042 445,042 Restricted cash and investments 66,632,599 24,757,495 91,390,094 Other post-employment benefit asset 117,368 - 117,368 Capital assets: Land and construction in process 34,814,068 14,974,537 49,788,605 Other capital assets(net of accumulated depreciation) 199,312,895 223,647,958 422,960,853 Total assets 349,918,873 325,169,054 675,087,927 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pension 4,013,561 - 4,013,561 Deferred outflows related to OPEB 97,678 9,047 106,725 Total deferred outflows 4,111,239 9,047 4,120,286 LIABILITIES Accounts payable and accrued liabilities 3,790,462 2,430,865 6,221,327 Deposits 3,513,297 12,725 3,526,022 Due to other entities/agencies 532,766 - 532,766 Unearned revenue 66,500 - 66,500 Accrued interest payable 63,380 2,504,931 2,568,311 Due within one year: Notes payable - 113,614 113,614 Bonds payable 2,213,443 2,886,161 5,099,604 Accrued compensated absences 1,407,478 124,940 1,532,418 Due in more than one year: Notes payable - 1,472,023 1,472,023 Internal balances 102,320 (102,320) - Bonds payable 17,657,088 125,368,485 143,025,573 Accrued compensated absences 58,645 4,237 62,882 Other post-employment benefit liability 1,306,546 110,145 1,416,691 Net pension liability 12,977,450 12,977,450 Total liabilities 43,689,375 134,925,806 178,615,181 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pension 796,859 - 796,859 Deferred inflows related to OPEB 280,009 25,935 305,944 Total deferred inflows 1,076,868 25,935 1,102,803 NET POSITION Net investment in capital assets 216,281,021 108,782,212 325,063,233 Restricted for: Transportation construction,maintenance,and utility undergrounding 32,440,129 - 32,440,129 Park development and improvements 12,413,195 12,413,195 Tourism 752,303 - 752,303 Water system construction and improvements - 15,659,719 15,659,719 Debt service 1,517,668 7,314,629 8,832,297 Building development plan review and inspection 10,074,209 - 10,074,209 Library capital improvements 604,896 604,896 Urban development and improvements 3,374,874 3,374,874 Law enforcement equipment 517,837 - 517,837 Unrestricted 31,287,737 58,469,800 89,757,537 Total net position $ 309,263,869 $ 190,226,360 $ 499,490,229 The accompanying notes are an integral part of the basic financial statements. 45 CITY OF TIGARD,OREGON STATEMENT OF ACTIVITIES for the year ended June 30,2020 Program Revenues Charges Operating for Grants and Functions/Programs Expenses Services Contributions Governmental activities: Community services $ 25,961,675 $ 1,500,919 $ 4,974,413 Public works 9,578,442 5,220,273 4,650,657 Community development 5,817,188 4,292,102 - Policy and administration 3,383,319 90,582 Interest on long-term debt 760,211 - - Total governmental activities 45,500,835 11,103,876 9,625,070 Business-type activities: Sewer 3,044,154 3,666,422 - Stormwater 3,433,481 4,017,864 Water 19,418,199 22,607,832 Total business-type activities 25,895,834 30,292,118 - Total $ 71,396,669 $ 41,395,994 $ 9,625,070 The accompanying notes are an integral part of the basic financial statements. 46 Net(Expense)Revenue and Changes in Net Position- Primary Government Capital Grants and Governmental Business-type Contributions Activities Activities Total $ $ (19,486,343) $ $ (19,486,343) 8,265,013 8,557,501 8,557,501 277,851 (1,247,235) (1,247,235) - (3,292,737) (3,292,737) - (760,211) (760,211) 8,542,864 (16,229,025) (16,229,025) 119,288 741,556 741,556 152,616 736,999 736,999 2,867,242 6,056,875 6,056,875 3,139,146 7,535,430 7,535,430 $ 11,682,010 (16,229,025) 7,535,430 (8,693,595) General Revenues: Property taxes,levied for general purposes 18,014,249 - 18,014,249 Property taxes,levied for debt service 2,311,479 2,311,479 Franchise fees 6,360,563 6,360,563 Unrestricted intergovernmental revenues 2,484,051 - 2,484,051 Interest earnings 2,520,783 1,770,933 4,291,716 Miscellaneous 502,164 120,392 622,556 Total general revenues 32,193,289 1,891,325 34,084,614 Transfers between Governmental and Business-type activites 102,924 (102,924) - Change in net position 16,067,188 9,323,831 25,391,019 Net position,beginning 293,196,681 180,902,529 474,099,210 Net position,ending $ 309,263,869 $ 190,226,360 $ 499,490,229 47 CITY OF TIGARD,OREGON GOVERNMENTAL FUNDS-BALANCE SHEET June 30,2020 General Other Total General Obligation Debt Governmental Governmental Fund Service Fund Funds Funds ASSETS Cash and cash equivalents $ 27,681,289 $ $ 5,772,122 $ 33,453,411 Accounts receivable 3,635,719 1,514,795 5,150,514 Property taxes receivable 288,721 40,665 3,019 332,405 Assessment liens receivable - - 214,276 214,276 Interest receivable 30,832 6,222 1,518 38,572 Advances to other funds 883,981 - - 883,981 Prepaids 274,603 - 18,080 292,683 Restricted cash and cash equivalents - 1,934,344 64,698,255 66,632,599 Total assets $ 32,795,145 $ 1,981,231 $ 72,222,065 $ 106,998,441 LIABILITIES Accounts payable and accrued liabilities $ 1,622,906 $ - $ 1,439,417 $ 3,062,323 Deposits 1,418,647 1,057,431 2,476,078 Due to other entities/agencies 473,543 59,223 532,766 Advances from other funds - 986,301 986,301 Unearned revenue - 50,000 50,000 Total liabilities 3,515,096 - 3,592,372 7,107,468 DEFERRED INFLOWS OF RESOURCES Resources not yet available: Property taxes 648,692 33,053 11,600 693,345 Municipal court receivable 525,452 - - 525,452 Transportation refund credits - 35,857 35,857 Grant receivable 70,873 70,873 Special assessment liens - 323,101 323,101 Franchise fees 124,308 - 124,308 Total deferred inflows of resources 1,298,452 33,053 441,431 1,772,936 FUND BALANCES Nonspendable: Advances to other funds 883,981 - - 883,981 Prepaids 274,603 18,080 292,683 Restricted for: Street maintenance and improvements - 31,883,871 31,883,871 Tourism 752,303 752,303 Affordable housing 114,949 114,949 Debt service 1,948,178 1,292,728 3,240,906 Park development and improvements - 12,413,195 12,413,195 Underground utilities 556,258 556,258 Building inspection 10,074,209 10,074,209 Police services 517,837 517,837 Library improvements 604,896 604,896 Urban development and improvements 3,374,874 3,374,874 Committed for: Street maintenance and improvements 2,528,203 2,528,203 Urban forestry 1,028,448 1,028,448 Assigned to: City facilities 934,395 934,395 Park and recreation 2,322,885 2,322,885 Unassigned 26,823,013 - (228,869) 26,594,144 Total fund balances 27,981,597 1,948,178 68,188,262 98,118,037 Total liabilities,deferred inflows of resources and fund balances $ 32,795,145 $ 1,981,231 $ 72,222,065 $ 106,998,441 The accompanying notes are an integral part of the basic financial statements. 48 CITY OF TIGARD,OREGON RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION GOVERNMENTAL FUNDS June 30,2020 Fund Balances-Governmental Funds $ 98,118,037 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 $ 348,267,198 Less accumulated depreciation (114,140,235) 234,126,963 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 (12,977,450) Deferred outflows of resources related to pensions and OPEB 4,069,711 Deferred inflows of resources related to pensions and OPEB (957,821) (9,865,560) 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 693,345 Franchise fees earned but not available 124,308 Municipal court receivable 525,452 Grant receivable 70,873 Transportation refund credits 35,857 Assessment liens 323,101 1,772,936 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. 6,655,527 Accrued compensated absences are not due and payable in the current period and therefore are not (926,530) 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 (19,870,531) Accrued interest payable,not due and payable in the current period (63,380) Net other post-employment benefit(OPEB)asset 117,368 Net other post-employment benefit(OPEB) liability (800,961) Net Position of Governmental Activities $ 309,263,869 The accompanying notes are an integral part of the basic financial statements. 49 CITY OF TIGARD,OREGON GOVERNMENTAL FUNDS- STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE for the year ended June 30,2020 General Other Total General Obligation Debt Governmental Governmental Fund Service Fund Funds Funds REVENUES Taxes $ 16,949,642 $ 2,311,480 $ 7,153,229 $ 26,414,351 Franchise fees 6,365,589 - - 6,365,589 Special assessments - - 46,554 46,554 Licenses and permits 1,234,666 - 2,815,902 4,050,568 Intergovernmental revenues 7,334,814 - 2,029,702 9,364,516 Charges for services 302,894 - 5,067,096 5,369,990 System development charges - - 5,606,246 5,606,246 Fines and forfeitures 534,471 - 293,973 828,444 Rental revenues - - 54,202 54,202 Interest earnings 766,467 45,788 1,503,686 2,315,941 Miscellaneous revenues 182,123 - 289,883 472,006 Total revenues 33,670,666 2,357,268 24,860,473 60,888,407 EXPENDITURES Current operating: Community services 23,595,107 - 113,005 23,708,112 Public works - - 6,153,581 6,153,581 Community development 3,323,661 - 2,551,613 5,875,274 Policy and administration 843,032 - - 843,032 Debt service: Principal - 7,269,234 1,633,156 8,902,390 Interest - 631,825 177,178 809,003 Capital outlay - - 8,121,335 8,121,335 Total expenditures 27,761,800 7,901,059 18,749,868 54,412,727 Excess/(deficiency)of revenues over expenditures 5,908,866 (5,543,791) 6,110,605 6,475,680 OTHER FINANCING SOURCES(USES) Transfer in 258,181 - 6,127,514 6,385,695 Transfer out (2,371,150) - (4,672,774) (7,043,924) Debt proceeds - 5,981,000 5,929,000 11,910,000 Total other financing sources(uses) (2,112,969) 5,981,000 7,383,740 11,251,771 Net change in fund balances 3,795,897 437,209 13,494,345 17,727,451 Fund balances-beginning of the year 24,185,700 1,510,969 54,693,917 80,390,586 Fund balances-end of year $ 27,981,597 $ 1,948,178 $ 68,188,262 $ 98,118,037 The accompanying notes are an integral part of the basic financial statements. 50 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 30,2020 Net change in fund balances-Governmental Funds $ 17,727,451 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 8,064,935 Current year depreciation expense (5,622,035) Contributed capital 194,698 Loss on disposal of capital assets (59,929) 2,577,669 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 17,111 Change in franchise fees (5,026) Change in municipal court receivable 29,561 Change in grants receivable (425,804) Change in assessment liens (46,554) (430,712) 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. Bond proceeds (11,910,000) Principal payments 8,843,419 Amortization of premium on long-term debt 99,063 (2,967,518) 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 8,700 Change in compensated absences (95,415) Pension expense (1,906,816) OPEB expense 54,007 (1,939,524) Internal service funds are used by management to charge the cost of administrative functions as well as fleet and property management to individual funds. The net revenue of internal service funds is reported with governmental activities. Change in Net Position- Internal Service Funds 1,099,822 Change in Net Position of Governmental Activities $ 16,067,188 The accompanying notes are an integral part of the basic financial statements. 51 CITY OF TIGARD,OREGON PROPRIETARY FUNDS STATEMENT OF NET POSITION June 30,2020 Business-type Activities- Governmental Enterprise Funds Activities- Sanitary Internal Sewer Stormwater Water Totals Service Funds ASSETS Current assets: Cash and cash equivalents $ 7,335,506 $ 9,033,518 $ 37,819,419 $ 54,188,443 $ 9,278,715 Accounts receivable 2,008,532 631,686 3,186,006 5,826,224 27,138 Prepaids - - - - 248,530 Property held for resale 185,021 260,021 - 445,042 - Inventory 989 989 266,905 268,883 5,699 Total current assets 9,530,048 9,926,214 41,272,330 60,728,592 9,560,082 Noncurrent assets: Restricted cash and cash equivalents - - 24,757,495 24,757,495 - Advances to other funds 102,320 - 102,320 Investment in joint venture - - 1,060,472 1,060,472 Capital assets: Land and construction in process 723,311 1,211,369 13,039,857 14,974,537 Other capital assets(net of accumulated depreciation) 18,379,934 13,324,283 191,943,741 223,647,958 Total noncurrent assets 19,205,565 14,535,652 230,801,565 264,542,782 - Total assets 28,735,613 24,461,866 272,073,895 325,271,374 9,560,082 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to OPEB 2,135 3,049 3,863 9,047 41,528 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 1,816,677 240,548 373,640 2,430,865 728,139 Unearned revenue - - - - 16,500 Deposits 12,725 12,725 1,037,219 Accrued interest payable - - 2,504,931 2,504,931 - Accrued compensated absences 30,505 36,741 57,694 124,940 519,088 Current portion of bonds payable - - 2,886,161 2,886,161 - Current portion of note payable - - 113,614 113,614 - Total current liabilities 1,847,182 277,289 5,948,765 8,073,236 2,300,946 Noncurrent liabilities: Accrued compensated absences 1,035 1,246 1,956 4,237 20,505 Note payable-long-term portion - - 1,472,023 1,472,023 - Bonds payable-long-term portion - - 125,368,485 125,368,485 - OPEB liability 25,989 37,123 47,033 110,145 505,585 Total noncurrent liabilities 27,024 38,369 126,889,497 126,954,890 526,090 Total liabilities 1,874,206 315,658 132,838,262 135,028,126 2,827,036 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to OPEB 6,120 8,741 11,074 25,935 119,047 NET POSITION Net investment in capital assets 19,103,245 14,535,652 75,143,315 108,782,212 - Restricted for capital projects - - 15,659,719 15,659,719 Restricted for debt service - - 7,314,629 7,314,629 - Unrestricted 7,754,177 9,604,864 41,110,759 58,469,800 6,655,527 Total net position $ 26,857,422 $ 24,140,516 $ 139,228,422 $ 190,226,360 $ 6,655,527 The accompanying notes are an integral part of the basic financial statements. 52 CITY OF TIGARD,OREGON PROPRIETARY FUNDS STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET POSITION for the year ended June 30,2020 Business-type Activities- Governmental Enterprise Funds Activities- Sanitary Internal Sewer Stormwater Water Totals Service Funds OPERATING REVENUES Charges for services $ 3,666,422 $ 4,017,864 $ 22,607,832 $ 30,292,118 $ 16,905,629 Miscellaneous revenues 31,478 19,527 69,387 120,392 158,367 Total operating revenues 3,697,900 4,037,391 22,677,219 30,412,510 17,063,996 OPERATING EXPENSES Salaries and wages 489,684 764,950 1,172,511 2,427,145 9,859,306 Contracted services 35,591 401,490 2,389,751 2,826,832 1,529,650 General,administrative and other 1,631,416 1,579,330 5,131,263 8,342,009 5,541,215 Depreciation 887,463 687,711 5,273,389 6,848,563 - Total operating expenses 3,044,154 3,433,481 13,966,914 20,444,549 16,930,171 Operating income(loss) 653,746 603,910 8,710,305 9,967,961 133,825 NON-OPERATING REVENUES(EXPENSES) Interest earnings 182,736 203,029 1,385,168 1,770,933 204,843 Interest expense - - (5,440,862) (5,440,862) - Loss on investment in joint venture - - (10,423) (10,423) - Total non-operating revenue(expense) 182,736 203,029 (4,066,117) (3,680,352) 204,843 Net income(loss)before contributions and transfers 836,482 806,939 4,644,188 6,287,609 338,668 System development revenue 119,288 72,430 2,859,333 3,051,051 - Capital contributions - 80,186 7,909 88,095 - Transfers in 17,641 489,093 - 506,734 761,154 Transfers out (471,150) (60,178) (78,330) (609,658) - Change in net position 502,261 1,388,470 7,433,100 9,323,831 1,099,822 Net position--beginning of year 26,355,161 22,752,046 131,795,322 180,902,529 5,555,705 Net position--end of year $ 26,857,422 $ 24,140,516 $ 139,228,422 $ 190,226,360 $ 6,655,527 The accompanying notes are an integral part of the basic financial statements. 53 CITY OF TIGARD,OREGON PROPRIETARY FUNDS STATEMENT OF CASH FLOWS for the year ended June 30,2020 Business-type Activities- Governmental Enterprise Funds Activities- Sanitary Internal Sewer Stormwater Water Totals Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 14,412,512 $ 4,925,201 $ 23,007,573 $ 42,345,286 $ 17,888,984 Payments to suppliers (11,985,883) (3,025,522) (7,342,810) (22,354,215) (7,281,722) Payments to employees (485,974) (760,028) (1,162,422) (2,408,424) (9,689,877) Other receipts 31,478 19,527 69,387 120,392 158,089 Net cash provided(used)by operating activities 1,972,133 1,159,178 14,571,728 17,703,039 1,075,474 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers to other funds (471,150) (60,178) (78,330) (609,658) - Transfers from other funds 761,154 Net cash provided(used)by noncapital financing activities (471,150) (60,178) (78,330) (609,658) 761,154 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES System development revenue 119,288 72,430 2,859,333 3,051,051 - Principal payments - - (2,385,305) (2,385,305) Interest payments - - (6,005,629) (6,005,629) Transfers in for capital assets 17,641 489,093 - 506,734 Acquisition of capital assets (160,650) (1,647,653) (833,836) (2,642,139) Net cash provided(used)by capital and related financing activities (23,721) (1,086,130) (6,365,437) (7,475,288) CASH FLOWS FROM INVESTING ACTIVITIES Investment in joint venture - - (65,190) (65,190) - Interest earnings 182,736 203,029 1,385,168 1,770,933 204,843 Net cash provided(used)by investing activities 182,736 203,029 1,319,978 1,705,743 204,843 Net increase(decrease)in cash and investments 1,659,998 215,899 9,447,939 11,323,836 2,041,471 Cash and investments--beginning of the year 5,675,508 8,817,619 53,128,975 67,622,102 7,237,244 Cash and investments--end of the year $ 7,335,506 $ 9,033,518 $ 62,576,914 $ 78,945,938 $ 9,278,715 RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income(loss) $ 653,746 $ 603,910 $ 8,710,305 $ 9,967,961 $ 133,825 Adjustments to reconcile operating income(loss) to net cash provided by operating activities: Cash flows reported in other categories: Depreciation expense 887,463 687,711 5,273,389 6,848,563 Change in assets and liabilities: Receivables (230,852) (61,354) 420,340 128,134 (6,680) Prepaid expenses - - - - (212,500) Inventory 7,676 7,676 (8,071) 7,281 10,406 Accounts payable and accrued liabilities 650,390 (74,854) 186,275 761,811 (13,563) Customer deposits - (8,833) (20,599) (29,432) 994,557 Accrued compensated absences 4,126 5,524 10,843 20,493 101,645 OPEB liability (416) (602) (754) (1,772) 67,784 Net cash provided(used)by operating activities $ 1,972,133 $ 1,159,178 $ 14,571,728 $ 17,703,039 $ 1,075,474 Non-cash capital and related financing activities: Developer contributed sewer,stormwater and water lines $ - $ 80,186 $ 7,909 $ 88,095 $ - The accompanying notes are an integral part of the basic financial statements. 54 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). 55 56 CITY OF TIGARD,OREGON STATEMENT OF FIDUCIARY NET POSITION PENSION TRUST June 30,2020 ASSETS Investments: Restricted stable value fund $ 17,911,492 Restricted corporate bonds 1,312,892 Restricted corporate stocks 12,733,605 Total assets 31,957,989 NET POSITION Restricted for pension benefits $ 31,957,989 The accompanying notes are an integral part of the basic financial statements. 57 CITY OF TIGARD,OREGON STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST for the year ended June 30,2020 ADDITIONS Contributions-employer $ 1,682,690 Contributions-plan members 498,335 Investment income 1,678,100 Total additions 3,859,125 DEDUCTIONS Benefit payments and withdrawals 2,365,615 Administrative expenses 40,086 Total deductions 2,405,701 Change in net position 1,453,424 Net position of assets held in trust for pension benefits: Beginning of year 30,504,565 End of year $ 31,957,989 The accompanying notes are an integral part of the basic financial statements. 58 Notes to Basic Financial Statements 59 60 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. 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. 61 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. 62 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. Nonmajor 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 General Obligation Debt Service Fund as major funds in the current financial statements. Nonmajor funds are combined in a column in the fund financial statements and detailed as supplementary information in the financial report. Measurement Focus and Basis of Accounting Measurement focus is a term used to describe which transactions are recorded within the various financial statements. Basis of accounting refers to when transactions are recorded. The financial statements of the city have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). GAAP statements include all relevant GASB pronouncements. The city applies the provisions of all applicable GASB statements that define requirements and the reporting model for the annual financial reports of state and local governments. The city has recorded capital and certain other long-term assets 63 City of Tigard, Oregon Notes to Basic Financial Statements and liabilities in the Statement of Net Position, reported all revenues and the cost of providing services under the accrual basis of accounting in the Statement of Activities, and uses the direct method of reporting cash flows. The government-wide, proprietary fund and fiduciary fund financial statements are presented on a full accrual basis of accounting with an economic resource measurement focus. An economic resource focus concentrates on an entity or fund's net position. All transactions and events that affect the total economic resources (net position) during the period are reported. An economic resources measurement focus is inextricably connected with full-accrual accounting. Under the full accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of related cash inflows and outflows. Governmental funds financial statements are presented on a modified accrual basis of accounting with a current financial resource measurement focus. This measurement focus concentrates on the fund's resources available for spending currently or in the near future. Only transactions and events affecting the fund's current financial resources during the period are reported. Similar to the connection between an economic resource measurement focus and full accrual accounting, a current financial resource measurement focus is inseparable from a modified accrual basis of accounting. Under modified accrual accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the city considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. Property taxes, intergovernmental 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 64 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. 65 City of Tigard, Oregon Notes to Basic Financial Statements New Accounting Pronouncements and Accounting Standards During the fiscal year ended June 30, 2020, the city did not implement any new GASB pronouncements. 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, 2021. GASB Statement No. 87, Leases This Statement was issued June 2017 to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments and increases the usefulness of governments' financial statements. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. GASB Statement No. 87 will be effective for the city for fiscal year ending June 30, 2021. GASB Statement No. 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, 2021. GASB Statement No. 91, Conduit Debt Obligations This statement was issued May 2019, this Statement establishes accounting requirements for conduit debt obligations by issuers. The objectives of this Statement are to eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. GASB Statement No. 91 will be effective for the city for the fiscal year ending June 30, 2022. GASB Statement No. 92, Omnibus 2020 This statement was issued January 2020, this Statement enhances comparability and financial reporting to improve the consistency of authoritative literature to address practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics including issues related to leases implementation, derivative instruments, postemployment benefits (pensions and other postemployment 66 City of Tigard, Oregon Notes to Basic Financial Statements benefits [OPEB]), asset retirement obligations, risk pool and fair value measurements. Specifically, this Statement addresses the following topics: • The effective date of Statement No. 87, Leases, and Implementation Guide No 2019-3, Leases, for interim financial reports • Reporting of intra-entity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit other postemployment benefit (OPEB) plan • The applicability of Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, to reporting assets accumulated for postemployment benefits • The applicability of certain requirements of Statement No. 84, Fiduciary Activities, to postemployment benefit arrangements • Measurement of Liabilities (and assets, if any) related to asset retirement obligations (AROs) in a government acquisition • Reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers • Reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature • Terminology used to refer to derivative instruments GASB Statement No. 92 will be effective for the city for the fiscal year ending June 30, 2023. GASB Statement No. 93, Replacement of Interbank Offered Rates(IBOR) This Statement was issued March 2020 to address accounting and financial reporting implications that result from the replacement of an IBOR. This Statement is: • Providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced as the reference rate of the hedging derivative instrument's variable payment • Clarifying the hedge accounting termination provisions when a hedged item is amended to replace the reference rate • Clarifying that the uncertainty related to the continued availability of IBORs does not, by itself, affect the assessment of whether the occurrence of a hedged expected transaction is probable • Removing the London Interbank Offered Rate (LIBOR) as an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap • Identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap • Clarifying the definition of reference rate, as it is used in Statement 53, as amended 67 City of Tigard, Oregon Notes to Basic Financial Statements • Providing an exception to the lease modifications guidance in Statement 87, as amended, for certain lease contracts that are amended solely to replace an IBOR as the rate upon which variable payments depend GASB Statement No. 93 will be effective for the city for the fiscal year ending June 30, 2022. GASB Statement No. 94, Public-Private and Public-Public Partnership and Availability Payment Arrangements This Statement was issued March 2020 to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). It also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). GASB Statement No. 94 will be effective for the city for the fiscal year ending June 30, 2024. GASB Statement No. 95, Postponement of Effective Dates This Statement was issued May 2020 to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic by postponing the effective dates of certain provisions in Statements and Implementation Guides that first became effective or are scheduled to become effective for periods beginning after June 15, 2018 and later. The effective dates of certain provisions contained in the following pronouncements are postponed by one year: • Statement No. 83, Certain Asset Retirement Obligations • Statement No. 84, Fiduciary Activities • Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements • Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period • Statement No. 90, Majority Equity Interests • Statement No. 91, Conduit Debt Obligations • Statement No. 92, Omnibus 2020 • Statement No. 93, Replacement of Interbank Offered Rates • Implementation Guide No. 2017-3, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting) • Implementation Guide No. 2018-1, Implementation Guidance Update - 2018 • Implementation Guide No. 2019-1, Implementation Guidance Update - 2019 • Implementation Guide No. 2019-2, Fiduciary Activities The effective dates of the following pronouncements are postponed by 18 months: • Statement No. 87, Leases • Implementation Guide No. 2019-3, Leases 68 City of Tigard, Oregon Notes to Basic Financial Statements GASB Statement No. 96,Subscription-Based Information Technology Arrangements (SBITAs) This statement was issued May 2020 to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements for government end users (governments). This statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset - an intangible assets - and a corresponding subscription liability; (3) provides the capitalization criteria for outlaw other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. GASB Statement No. 96 will be effective for the City for the fiscal year ending June 30, 2023. GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - an amendment of GASB Statement No. 14 and No. 84, and a supersession of GASB Statement No. 32 This Statement was issued June 2020. The primary objectives are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component unit in fiduciary fund financial statement; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meets the definition of a pension plan and for benefits provided through those plans. GASB Statement No. 97 will be effective for the city for the fiscal year ending June 30, 2022. 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. 69 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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 70 City of Tigard, Oregon Notes to Basic Financial Statements 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 using the consumption method. Payments classified as prepaid are primarily items that are being amortized such as prepaid insurance. Property Held for Resale Property held for resale is recorded as an asset and includes land and building inventory stated at the lower of cost or market. At year-end no reductions in value were necessary, therefore recorded amounts were equal to original cost. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, pathways, streetlights, 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. 71 City of Tigard, Oregon Notes to Basic Financial Statements 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 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 represent 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 represent 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 measurable 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 72 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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 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. 73 City of Tigard, Oregon Notes to Basic 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 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. 74 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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. 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. 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: 75 City of Tigard, Oregon Notes to Basic Financial Statements Enterprise funds: Sanitary Sewer Fund -This fund accounts for the city's sewer utility operations. Stormwater Fund — This fund accounts for the city's storm drainage operations which consists of the following two budgetary funds: Stormwater Fund and Water Quality/Quantity Fund. Water Fund - This fund accounts for the city's water operations which consists of the following four budgetary funds: Water Fund, Water SDC Fund, Water CIP Fund and Water Debt Service Fund. Additionally, the city reports the following fund types: Nonmajor governmental funds: Special Revenue funds account for restricted or committed revenues for specific purposes. Debt Service funds account for the accumulation of resources to pay principal and interest on the city's long-term obligations. Capital Projects funds account for the accumulation of resources for construction or acquisition of facilities and equipment. Internal service funds Internal service funds account for goods and services provided by one city department to another on a cost reimbursement basis. The internal service funds account for the activities of health insurance for employees, liability insurance, workers' compensation insurance, facilities and fleet and support and administrative services. Fiduciary Fund Fiduciary funds focus on net position and changes in net position. The city's fiduciary fund is the defined contribution pension plan for the benefit of employees. 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, 76 City of Tigard, Oregon Notes to Basic Financial Statements Community Services, Public Works, Community Development, Policy and Administration, Debt Service, Capital Improvements and Contingency. The detail budget document is required to contain more detailed information for the above-mentioned expenditure categories. After budget approval, the City Council may approve supplemental budgeted appropriations if an occurrence, condition, or need exists which had not been ascertained at the time the budget was adopted. A supplemental budget may require hearings before the public, publications in newspapers and approval by the City Council. Original and supplemental budgets may be modified by the use of appropriations transfers between the levels of control. Such transfers require approval by the City Council. Management may not amend the budget without council approval. The City Council approved four supplemental budgets throughout the fiscal year. Oregon state law requires disclosure of fund expenditures in excess of budgeted appropriations. However, local budget law exempts reporting of over appropriations for a variety of situations related to the issuance, repayment and refunding of bonds as defined in ORS 294.338(3-5). This includes bonds issued under revenue bond authority as defined in ORS 287A.360 to 287A.380. Additionally, any outstanding obligation related to an approved bond redemption, in a prior adopted budget period as defined in ORS 294.338(3)(B)(iii) is also exempt. 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. 77 City of Tigard, Oregon Notes to Basic Financial Statements Cash and investments, restricted and unrestricted, at June 30, 2020: Primary Fiduciary Type Government Activities Total Deposits with financial institutions $ 7,360,800 $ - $ 7,360,800 Money markets 6,138,701 - 6,138,701 Cash deposits 13,499,501 - 13,499,501 Cash with fiscal agent 305,754 - 305,754 Petty cash/cash on hand 9,656 - 9,656 Total cash 13,814,911 - 13,814,911 State Investment Pool (LGIP) 155,074,962 - 155,074,962 U.S. Agencies 5,019,780 - 5,019,780 Asset allocation/stable value fund - 17,911,492 17,911,492 Corporate bonds 14,401,010 1,312,892 15,713,902 Corporate stocks - 12,733,605 12,733,605 Total investments 174,495,752 31,957,989 206,453,741 Total cash and investments $ 188,310,663 $ 31,957,989 $220,268,652 Governmental Business Type Fiduciary Total Activities Activities Activities Cash and investments $ 42,732,126 $ 54,188,443 $ - $ 96,920,569 Restricted cash and investments 66,632,599 24,757,495 31,957,989 123,348,083 Total cash and investments $ 109,364,725 $ 78,945,938 $ 31,957,989 $ 220,268,652 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, 2020 was $13,499,501 and the total bank balance is $14,142,671. Of these deposits, $500,000 was covered by federal depository insurance and $13,642,671 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. 78 City of Tigard, Oregon Notes to Basic Financial Statements Based on that categorization, banks must pledge collateral valued at between 10 percent and 110 percent of their public fund deposits. In the event of a bank failure, the entire pool of collateral pledged by all qualified Oregon public funds bank depositories is available to repay deposits of public funds of government entities. The Office of the State Treasurer maintains a list of qualified financial institutions for the deposit of public funds in excess of FDIC insurance. The financial institutions holding city deposits are noted on the State Treasurer's qualified list. In addition, the city's policy states bank deposits of any one qualified financial institution shall not exceed 1 percent of the institution's total assets. The city is in compliance with this policy at year-end. Investments For an investment, this is the risk that, in the event of failure of the counterparty, the city will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. All of the city's investments, except for the State of Oregon Local Government Investment Pool (LGIP), are held in safekeeping by the financial institution in the city's name. The city's investment policy, which adheres to State of Oregon law, states bank deposits with any one qualified institution shall not exceed 20 percent of the portfolio. State statutes authorize the city to invest primarily in general obligations of the U.S. government and its agencies, certain bonded obligations of Oregon municipalities, bank repurchase agreements, bankers' acceptances, certain commercial paper and corporate bonds and the LGIP. Annually, the city adopts an investment policy in connection with the budget process. The 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, 2020, the city's fair value in the LGIP was $155,074,962. 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-Fu nd- (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. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows: 79 City of Tigard, Oregon Notes to Basic Financial Statements Level 1 - unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access. Level 2 - other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, loss severities, credit risks and default rates) or other market-corroborated inputs). Level 3 - unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including each Fund's own assumptions used in determining the fair value of investments). The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities. The city has the following investments and recurring fair value measurements as of June 30, 2020: Fair Value Fair Value Measurement Primary Government Amortized Cost Not Local Government Investment Pool (LGIP) $ 155,074,962 Measured at Fair Value U.S. Agencies 5,019,780 Level 2 Corporate Bonds 14,401,010 Level 2 Total Primary Government investments 174,495,752 Fiduciary Activities Asset allocation/stable value fund 17,911,492 Level 2 Corporate bonds 1,312,892 Level 2 Corporate stocks 12,733,605 Level 1 Total Fiduciary Activities investments 31,957,989 Total Investments $ 206,453,741 80 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, 2020 the total restricted investments in the pension plan were $31,957,989. 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. 81 City of Tigard, Oregon Notes to Basic Financial Statements At June 30, 2020, 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) * $ 155,074,962 75.1% < 1 U.S. Agencies 5,019,780 2.4% < 1 Corporate Bonds 14,401,010 7.0% 2.37 Total Primary Government investments 174,495,752 84.5% Fiduciary Activities Asset allocation/stable value fund 17,911,492 8.7% N/A Corporate bonds 1,312,892 0.6% ** Corporate stocks 121733,605 6.2% N/A Total Fiduciary Activities investments 31,957,989 15.5% Total Investments $ 206,453,741 100.0% Portfolio weighted average maturity 2.89 * 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. 82 City of Tigard, Oregon Notes to Basic Financial Statements At June 30, 2020 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 $ 155,074,962 75.1% Corporate Bonds A2 N/R N/R 5,118,050 2.5% Corporate Bonds A2 N/R N/R 4,103,360 2.0% Corporate Bonds Al A+ N/R 5,179,600 2.5% US Agency Aaa AA+ N/R 1,007,130 0.5% US Agency Aaa N/R N/R 1,009,770 0.5% US Agency N/R AA+ N/R 3,002,880 1.4% Total Primary Government investments 174,495,752 84.5% Fiduciary Activities Asset allocation/stable value fund 17,911,492 8.7% Corporate bonds 1,312,892 0.6% Corporate stocks 12,733,605 6.2% Total Fiduciary Activities investments 31,957,989 15.5% Total Investments $ 206,453,741 100.0% Rating agency information not available for Fiduciary Activities. 83 City of Tigard, Oregon Notes to Basic Financial Statements 4. Accounts Receivable Accounts receivable as of June 30, 2020 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 $ 6,016,749 $ 288,721 $ - $ 6,305,470 $ (2,350,198) $ 3,955,272 General Obligation Debt Service 6,222 40,665 - 46,887 - 46,887 Nonmajor governmental 1,516,313 3,019 214,276 1,733,608 - 1,733,608 Internal service 27,138 - - 27,138 - 27,138 $ 7,566,422 $ 332,405 $ 214,276 $ 8,113,103 $ (2,350,198) $ 5,762,905 Business-Type Activities Sanitary sewer $ 2,008,532 $ - $ - $ 2,008,532 $ - $ 2,008,532 Stormwater 631,686 - - 631,686 - 631,686 Water 3,186,006 - - 3,186,006 - 3,186,006 $ 5,826,224 $ - $ - $ 5,826,224 $ - $ 5,826,224 Total receivables $ 11,589,129 Shown on the Statement of Net Positions as: Accounts receivable, net $ 11,042,448 Property taxes receivable 332,405 Assessment liens receivable 214,276 $ 11,589,129 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, 2020, $3,133,596 was outstanding for municipal court receivables with a related allowance for doubtful accounts of$2,350,198. 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, 2020, the portion of the assessments receivable balance that represents delinquent accounts is insignificant. 84 City of Tigard, Oregon Notes to Basic Financial Statements S. Capital Assets Capital asset activity for governmental activities for the year ended June 30, 2020 was as follows: Balances Balances Governmental activities June 30,2019 Additions Deletions Transfers June 30,2020 Non-depreciable: Land $ 26,380,089 $ - $ - $ - $ 26,380,089 Construction in progress 6,140,084 7,334,611 - (5,040,716) 8,433,979 Total non-depreciable 32,520,173 7,334,611 - (5,040,716) 34,814,068 Depreciable: Building and improvements 23,544,033 15,000 - - 23,559,033 Land improvements 15,619,051 8,321 - 2,502,769 18,130,141 Machinery and equipment 2,820,306 114,956 (117,253) - 2,818,009 Autos and trucks 3,445,109 503,567 (244,930) 3,703,746 Office equipment 4,446,346 81,975 - - 4,528,321 Infrastructure 257,974,730 201,203 - 2,537,947 260,713,880 Total depreciable 307,849,575 925,022 (362,183) 5,040,716 313,453,130 Accumulated depreciation: Building and improvements (10,319,747) (650,517) - - (10,970,264) Land improvements (8,015,010) (499,678) - (8,514,688) Machinery and equipment (2,540,766) (156,983) 117,253 (2,580,496) Autos and trucks (2,219,752) (361,438) 185,001 (2,396,189) Office equipment (2,354,022) (425,871) - (2,779,893) Infrastructure (83,371,157) (3,527,548) - (86,898,705) Total accumulated depreciation (108,820,454) (5,622,035) 302,254 - (114,140,235) Net depreciable assets 199,029,121 (4,697,013) (59,929) 5,040,716 199,312,895 Governmental activities capital assets, net $231,549,294 $2,637,598 $ (59,929) $ - $234,126,963 Depreciation expense for governmental activities is charged to functions as follows: Community services $ 313,262 Public works 5,101,928 Community development 7,306 Policy and administration 199,262 Total depreciation for governmental activities $ 5,622,035 85 City of Tigard, Oregon Notes to Basic Financial Statements Capital assets activity for business-type activities for the year ended June 30, 2020, was as follows: Balances Balances Business-type activities June 30,2019 Additions Deletions Transfers June 30,2020 Non-depreciable: Land $ 11,975,910 $ $ - $ - $ 11,975,910 Construction in progress 1,689,824 2,379,998 - (1,071,195) 2,998,627 Total non-depreciable 13,665,734 2,379,998 - (1,071,195) 14,974,537 Depreciable: Building and improvements 77,323,567 - - - 77,323,567 Land Improvements 7,505,761 - - 7,505,761 Sewer system 31,878,938 - - - 31,878,938 Stormwater system 22,156,873 80,188 - 594,762 22,831,823 Water system 148,084,530 7,909 - 476,433 148,568,872 Equipment 3,978,287 31,148 - - 4,009,435 Autos and trucks 2,330,136 230,997 (151,366) - 2,409,767 Total depreciable 293,258,092 350,242 (151,366) 1,071,195 294,528,163 Accumulated depreciation: Building and improvements (2,488,745) (1,898,193) - - (4,386,938) Sewer system (13,227,345) (745,777) - - (13,973,122) Stormwater system (9,782,615) (567,247) - - (10,349,862) Water system (34,996,831) (3,222,494) - - (38,219,325) Equipment (1,932,268) (215,282) - - (2,147,550) Autos and trucks (1,755,204) (199,570) 151,366 - (1,803,408) Total accumulated depreciation (64,183,008) (6,848,563) 151,366 - (70,880,205) Net depreciable assets 229,075,084 (6,498,321) - 1,071,195 223,647,958 Business-type activities capital assets, net $242,740,818 $ (4,118,323) $ - $ - $238,622,495 Depreciation expense for business-type activities is charged to activities as follows: Sanitary sewer $ 887,463 Stormwater 687,711 Water 5,273,389 Total depreciation for business-type activities $ 6,848,563 86 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, 2020, the bank loan had been paid off. 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, 2020 the bonds had been paid off. 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 691h 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 LID bonds had been paid off at June 30, 2020. TCDA 2019 Full Faith and Credit Bonds In fiscal year 20019-2020 the city issued $1,896,000 in Series 2019A Tax-Exempt bonds, and $4,033,000 Series 2019B Federally Taxable bonds. The bonds were issued to fund Urban Renewal projects within the CCDA. In connection with the financing agreement, CCDA and the city executed an intergovernmental agreement (IGA) for CCDA to be obligated for the debt service payments on the bonds. The IGA constitutes indebtedness of the agency in the amount of the financing or $5,929,000. Pursuant to ORS 287A.310, the agency pledges the tax increment revenues to pay the financing payments or debt service. The outstanding bonds carry an Event of Default clause which allows the lender to exercise any remedy available at law or in equity, with the exception of acceleration. At June 30, 2020 the outstanding balance on the bonds was $1,896,000 for the Series 2019A and $4,033,000 for the Series 2019B. 87 City of Tigard, Oregon Notes to Basic Financial Statements Future maturities of bond principal and interest on the bonds are as follows: Total Debt Series 2019A Series 2011A Year Service Requirement Issued: August 29, 2019 Issued:August 29, 2019 Ending Total Total 2.36% 2.99% June 30, Principal Interest Principal Interest Principal Interest 2021 $ 241,000 $ 165,333 $ 80,000 $ 44,746 $ 161,000 $ 120,587 2022 248,000 158,631 82,000 42,858 166,000 115,773 2023 254,000 151,731 84,000 40,922 170,000 110,809 2024 262,000 144,666 86,000 38,940 176,000 105,726 2025 269,000 137,374 88,000 36,910 181,000 100,464 2026-2030 1,461,000 570,267 473,000 152,384 988,000 417,883 2031-2034 3,194,000 302,668 1,003,000 80,123 2,191,000 222,545 $ 5,929,000 $1,630,670 $1,896,000 $ 436,883 $ 4,033,000 $ 1,193,787 2020 GO Refunding Bonds In fiscal year 2019-2020 the city issued $5,981,000 of full faith and credit General Obligation Refunding Bonds. These bonds were used to partially refund the 2011A Series Parks GO Bonds. The 2020 GO Refunding Bonds will be repaid over seven years with an interest rate of 1.34 percent. The outstanding bonds carry an Event of Default clause which allows Chase Bank to exercise any remedy available at law or in equity, with the exception of acceleration. Future maturities of bond principal and interest on the GO Refunding Bonds are as follows: Year Ending June 30, Principal Interest Total 2021 $ 339,000 $ 87,492 $ 426,492 2022 441,000 75,603 516,603 2023 549,000 69,693 618,693 2024 1,561,000 62,337 1,623,337 2025 1,684,000 41,419 1,725,419 2026 1,407,000 18,854 1,425,854 $ 5,981,000 $ 355,398 $ 6,336,398 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, 2020 the outstanding balance on the 2011B bonds was $2,550,000. 88 City of Tigard, Oregon Notes to Basic Financial Statements Future maturities of bond principal and interest on the Library Bonds are as follows: Year Ending June 30, Principal Interest Total 2021 $ 815,000 $ 85,700 $ 900,700 2022 850,000 52,400 902,400 2023 885,000 17,700 902,700 $ 2,550,000 $ 155,800 $ 2,705,800 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. During fiscal year 2019-2020 these bonds were partially defeasance. 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. At June 30, 2020, the outstanding balance on the bonds was $5,380,000 and the balance of the unamortized premium was $30,531. Future maturities of bond principal and interest on the Parks Bonds are as follows: Year Ending June 30, Principal Interest Total 2021 $ 810,000 $ 220,050 $ 1,030,050 2022 845,000 187,650 1,032,650 2023 875,000 153,850 1,028,850 2024 910,000 118,850 1,028,850 2025 950,000 82,450 1,032,450 2026 990,000 42,075 1,032,075 $ 5,380,000 $ 804,925 $ 6,184,925 Premium 30,531 Total $ 5,410,531 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, 89 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, 2020, the balance on the note payable was $1,585,637. Future debt service requirements are as follows: Year Ending June 30, Principal Interest Total 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 127,874 33,310 161,184 2026-2030 699,266 106,650 805,916 2031-2032 283,179 12,410 295,589 Total $ 1,585,637 $ 321,784 $ 1,907,421 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 90 City of Tigard, Oregon Notes to Basic Financial Statements from 3.0 percent to 5.0 percent. At June 30, 2020, the balance of the 2012 water revenue bonds was $89,800,000 and the balance of the unamortized premium was $4,744,723. 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, 2020, the balance of the 2015 water revenue bonds was $30,140,000 and the balance of the unamortized premium was $3,569,921. 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 2020 were $13,787,253 as compared to the total debt service of $8,231,850. The computation of water revenue bonds debt coverage is as follows: Gross revenues $ 22,607,832 System Development Charges (SDC) related: SDC Fund interest earnings 351,524 Reimbursement fee receipts 1,258,967 Improvement fee receipts 1,600,366 Total SDC-related 3,210,857 Operating expense: Salaries and wages 1,172,511 Contracted services 704,045 Water purchases 1,685,705 General, admin and other 5,258,318 Total operating expenses 8,820,579 Net revenues (including SDCs) 16,998,110 Net revenues (excluding SDCs) $ 13,787,253 Debt service - first lien bonds: 2012 bonds $ 6,563,050 2015 bonds 1,668,800 Total debt service $ 8,231,850 Debt service coverage - first lien bonds (excluding system development charges) 1.67 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. 91 City of Tigard, Oregon Notes to Basic Financial Statements Future maturities of bond principal and premium and interest on the revenue bonds are as follows: Year Ending June 30, Principal Interest Total 2021 $ 2,370,000 $ 5,861,850 $ 8,231,850 2022 2,465,000 51765,150 8,230,150 2023 2,565,000 51664,550 8,229,550 2024 2,685,000 51547,175 8,232,175 2025 2,820,000 51411,675 8,231,675 2026-2030 16,385,000 241762,725 41,147,725 2031-2035 21,005,000 201138,925 41,143,925 2036-2040 26,980,000 141173,750 41,153,750 2041-2045 34,635,000 61509,875 41,144,875 2046 8,030,000 200,750 8,230,750 119,940,000 $ 94,036,425 $ 213,976,425 Premium 8,314,644 Total $ 128,254,644 Advanced Refunding of Debt On April 28, 2020 the city issued $5,981,000 of full faith and credit General Obligation Refunding Bonds and were used to defeasance part of the 2011A Series Parks GO Bonds. As such the proceeds of refunding issues were placed in an irrevocable trust to provide for future debt service payments on the retired bonds. Accordingly, the escrow account assets and the liability for the defeasance bonds are not included in the city's financial statements. The refunding was undertaken to reduce total debt service payments by $1,730,873 over five years in an economic gain of$1,281,840. 92 City of Tigard, Oregon Notes to Basic Financial Statements Long-term debt activity, including compensated absences, for the year ended June 30, 2020 was as follows: Balances June Balances June Due in one 30,2019 Additions Retirements 30,2020 year Governmental activities Direct borrowings and placements Bank loan payable $ 780,000 $ - $ (780,000) $ - $ - Bonds payable 825,000 5,981,000 (825,000) 5,981,000 339,000 Bonds payable (TCDA) - 5,929,000 5,929,000 241,000 Special assessment debt 28,419 - (28,419) - - Tota I direct borrowings and placements 1,633,419 11,910,000 (1,633,419) 11,910,000 580,000 Other debt Bonds payable 15,140,000 - (7,210,000) 7,930,000 1,625,000 Total governmental debt 16,773,419 11,910,000 (8,843,419) 19,840,000 2,205,000 Premium on bonds 129,594 - (99,063) 30,531 8,443 Other long-term liabilities Compensated absences 1,269,063 2,061,557 (1,864,496) 1,466,124 1,407,478 Governmental activities $ 18,172,076 $13,971,557 $(10,806,978) $ 21,336,655 $3,620,921 Business-type activities Direct borrowings and placements Note payable $ 1,695,942 $ - $ (110,305) $ 1,585,637 $ 113,614 Other debt Bonds payable 122,215,000 (2,275,000) 119,940,000 2,370,000 Total business-type debt 123,910,942 (2,385,305) 121,525,637 2,483,614 Premium on bonds 8,840,590 - (525,946) 8,314,644 516,161 Other long-term liabilities Compensated absences 108,685 205,287 (184,795) 129,177 124,940 Business-type activities $ 132,860,217 $ 205,287 $ (3,096,046) $ 129,969,458 $3,124,715 Expenditures for liquidating other long-term liabilities, including compensated absences and pension liabilities, are recorded in the General, various nonmajor 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 93 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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, 2020 are as follows: Net Receivable Fund Payable Fund Amount Elimination Balance General Fund Nonmajor governmental fund $ 883,981 $ (883,981) $ - Sanitary Sewer Fund Nonmajor governmental fund 102,320 - 102,320 $ 986,301 $ (883,981) $ 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 2021 $ - $ 8,972 $ - $ (8,460) $ - $ 512 2022 - 9,428 - (8,916) - 512 2023 - 9,428 - (8,916) - 512 2024 - 9,428 - (8,916) - 512 2025 13,926 9,428 (3,922) (8,916) 10,004 512 2026-2030 348,832 43,426 (298,058) (41,623) 50,774 1,803 2031-2035 471,829 28,919 (430,287) (28,399) 41,542 520 2036-2040 146,948 9,286 (146,948) (9,286) - - 2041 4,766 48 (4,766) (48) - - $ 986,301 $ 128,363 $ (883,981) $ (123,480) $ 102,320 $ 4,883 94 City of Tigard, Oregon Notes to Basic Financial Statements Transfers for fiscal year ended June 30, 2020 are as follows: Transfer To Transfer From Amount Purpose General Nonmajor Governmental $ 258,181 $ 258,181 Unrestricted portion of the city's transient lodging tax Nonmajor Governmental General 2,250,833 Fund park and various other operations Fund parks,transportation and various other capital Nonmajor Governmental 3,875,654 projects Stormwater 956 Fund stormwater component of parks capital project Fund water component of transportation capital Water 70 project 6,127,513 Sanitary Sewer Stormwater 17,641 17,641 Fund sewer component of stormwater project Stormwater Nonmajor Governmental 21,000 Fund street component of stormwater project Sanitary Sewer 468,093 Fund stormwater component of sewer project 489,093 Funding of central services, public works Internal Service General 120,316 administration and engineering Nonmajor Governmental 517,941 Capital project funding contracting and accounting Sanitary Sewer 3,057 Funding of public works engineering Stormwater 41,581 Funding of public works engineering Water 78,260 Funding of public works engineering 761,155 $ 7,653,583 Reconciliation: Transferred to governmental funds from: Sewer Fund $ 3,057 Stormwater Fund 42,537 Water Fund 78,330 Transferred from governmental funds to enterprise funds: From Nonmajor funds to Stormwater Fund (21,000) Total transfers per Statement of Activities $ 102,924 These transfers have been eliminated in the government-wide statement of activities other than the net effect between governmental activities and business-type activities. 8. Post-Employment Benefits Other than Pensions (OPEB) The other post-employment 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. 95 City of Tigard, Oregon Notes to Basic Financial Statements The amounts on the financial statements relate to the plans as follows: Implicit Rate PERS RHIA Total OPEB Subsidy Plan Plan on Financials Net OPEB Asset $ - $117,368 $ 117,368 Deferred Outflows of Resources Differences between expected and actual experience 11,489 - 11,489 Change in proportionate share - 296 296 Change in Assumptions 40,896 - 40,896 Contributions After the Measurement Date 51,581 2,463 54,044 Total Deferred Outflows of Resources 103,966 2,759 106,725 Total OPEB Liability 1,416,691 - 1,416,691 Deferred Inflows of Resources Differences between expected and actual experience - 15,477 15,477 Change in Proportionate Share - 1,868 1,868 Change in Assumptions 281,233 122 281,355 Difference in Earnings - 7,244 7,244 Total Deferred Inflows of Resources 281,233 24,711 305,944 OPEB Expense (Income) 121,358 (16,230) 105,128 (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. 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 96 City of Tigard, Oregon Notes to Basic Financial Statements 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 $1,416,691 was measured as of June 30, 2020, and was determined by an actuarial valuation as of July 1, 2018. For the fiscal year ended June 30, 2020, the city recognized OPEB expense from this plan of $121,358. At June 30, 2020, 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 $ 11,489 $ - Changes of assumptions 40,896 (281,233) Contributions subsequent to the measurement date 51,581 - Total $ 103,966 $ (281,233) Deferred outflows of resources related to OPEB of $51,581 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, 2021. 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 2021 $ (39,924) 2022 (39,924) 2023 (39,924) 2024 (39,924) 2025 (38,704) Thereafter (30,448) $ (228,848) 97 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 3.50 percent (change from 3.87 percent in previous measurement period) Healthcare cost trend rate Medical and vision: 7.00 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, 2019 $ 1,268,263 Changes for the year: Service cost 109,116 Interest on total OPEB liability 52,167 Effect of assumptions changes or inputs 46,498 Benefit payments (59,353) Balance as of June 30, 2020 $ 1,416,691 Changes in assumptions is the result of the change in the discount rate from 3.87 percent to 3.50 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 (2.50 percent) or 1- percentage-point higher (4.60 percent) than the current discount rate. A similar sensitivity analysis is then presented for changes in the healthcare trend assumption. 98 City of Tigard, Oregon Notes to Basic Financial Statements Discount Rate: 1% Decrease Current Discount 1% Increase (2.50%) Rate (3.50%) (4.50%) Total OPEB Liability $ 1,551,116 $ 1,416,691 $ 1,292,793 Healthcare Cost Trend: 1% Decrease Current Healthcare (6.00) Trend Rate (7.00) 1% Increase (8.00) Total OPEB Liability $ 1,240,618 $ 1,416,691 $ 1,625,093 PERS Retirement Health Insurance Account Plan Description As a member of Oregon Public Employees Retirement System (OPERS) the city contributes to the Retirement Health Insurance Account (RHIA) for each of its eligible employees. RHIA is a cost-sharing multiple-employer defined benefit other postemployment benefit plan administered by OPERS. RHIA pays a monthly contribution toward the cost of Medicare companion health insurance premiums of eligible retirees. Oregon Revised Statute (ORS) 238.420 established this trust fund. Authority to establish and amend the benefit provisions of RHIA reside with the Oregon Legislature. The plan is closed to new entrants after August 29, 2003. OPERS issues a publicly available financial report that includes financial statements and required supplementary information. OPERS produces an independently audited CAFR which can be found at: http://www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx Funding Policy Because RHIA was created by enabling legislation (ORS 238.420), contribution requirements of the plan members and the participating employers were established and may be amended only by the Oregon Legislature. ORS require that an amount equal to $60 or the total monthly cost of Medicare companion health insurance premiums coverage, whichever is less, shall be paid from the Retirement Health Insurance Account established by the employer, and any monthly cost in excess of $60 shall be paid by the eligible retired member in the manner provided in ORS 238.410. To be eligible to receive this monthly payment toward the premium cost the member must: (1) have eight years or more of qualifying service in OPERS at the time of retirement or receive a disability allowance as if the member had eight years or more of creditable service in OPERS, (2) receive both Medicare Parts A and B coverage, and (3) enroll in a OPERS-sponsored health plan. An eligible surviving spouse or dependent of a deceased PERS retiree may receive the subsidy if he or she (1) is receiving a retirement benefit or allowance from PERS or (2) was insured at the time the member died and the member retired before May 1, 1991. 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 99 City of Tigard, Oregon Notes to Basic Financial Statements sufficient assets to pay benefits when due. Employer contribution rates for the period were based on the December 31, 2017 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, 2020 was $2,463. OPEB Assets, Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2020, the city reported an asset of $117,368 for its proportionate share of the OPERS net OPEB asset. The net OPEB asset was measured as of June 30, 2019, and the total OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation as of December 31, 2017 rolled forward to June 30, 2019. 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, 2019, the city's proportionate share was 0.0607%, which is an increase from its proportion of 0.0579% as of June 30, 2018. For the year ended June 30, 2020, the city recognized OPEB income from this plan of $16,230. At June 30, 2020, 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 $ - $ 15,477 Change of assumptions - 122 Net difference between projected and actual earnings - 7,244 Changes in proportionate share 295 1,868 Contributions subsequent to the measurement date 2,463 - Tota 1 $ 2,758 $ 24,711 Deferred outflows of resources related to OPEB of $2,463 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, 2021. 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 2021 $ (12,572) 2022 (11,174) 2023 (1,416) 2024 746 $ (24,416) 100 City of Tigard, Oregon Notes to Basic Financial Statements Actuarial Methods and Assumptions The total OPEB liability in the December 31, 2017 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 adjustment and set-backs as described in the valuation. Active members: RP-2014 Employees, sex-distict, 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 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 101 City of Tigard, Oregon Notes to Basic Financial Statements 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 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. 102 City of Tigard, Oregon Notes to Basic Financial Statements 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) $ (90,991) $ (117,368) $ (139,844) 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 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. 103 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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 104 City of Tigard, Oregon Notes to Basic Financial Statements 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. 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 $1,315,541. 105 City of Tigard, Oregon Notes to Basic Financial Statements 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 $385,031 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, 2020, the city reported a liability of $12,977,450 for its proportionate share of the OPERS net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2017 rolled forward to June 30, 2019. 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, 2019, the city's proportion of OPERS net pension liability was 0.07502 percent. Annual Pension Cost For the year ended June 30, 2020, the city recognized pension expense of $3,221,344. At June 30, 2020, 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 $ 715,668 $ - Changes of assumptions 1,760,539 - Net difference between projected and actual earnings on investments - 367,898 Changes in proportion 196,489 173,885 Differences between employer contributions and proportionate share of contributions 38,166 255,076 Total (prior to post-MD contributions) 2,710,862 796,859 Contributions subsequent to the MD 1,302,699 - Total $4,013,561 $796,859 Deferred outflows of resources related to pensions of $1,302,699 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, 106 City of Tigard, Oregon Notes to Basic Financial Statements 2021. 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 $ 853,420 FY2020 $ 56,947 FY2020 $ 796,473 FY2021 783,755 FY2021 663,116 FY2021 120,639 FY2022 724,545 FY2022 148,949 FY2022 575,596 FY2023 318,222 FY2023 (81,348) FY2023 399,570 FY2024 30,920 FY2024 9,195 FY2024 21,725 Total $ 2,710,862 Total $ 796,859 Total $1,914,003 Actuarial Methods and Assumptions The total pension liability in the December 31, 2017 actuarial valuation was determined using the following actuarial methods and assumptions: Actuarial Methods and Assumptions Valuation Date December 31, 2017 Measurement Date June 30, 2019 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 Projected Salary Increases 3.50 percent 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 Scale, with collar adjustments and set-backs as described in the valuation. Mortality 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 107 City of Tigard, Oregon Notes to Basic Financial Statements 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 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 2.50 108 City of Tigard, Oregon Notes to Basic Financial Statements 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 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 $ 20,782,235 $ 12,977,450 $ 6,445,921 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, 2020: Classification of eligible employees Enrollment Represented (SEIU)/Police (non-sworn) employees 125 Management employees 94 Total enrolled employees 219 109 City of Tigard, Oregon Notes to Basic Financial Statements Contributions to The Plan range from 10 to 11 percent of gross salary depending on the employment group for all eligible employees participating in the plans. The city is required to contribute to these plans under authority of City Council resolution and the plan documents. Employees may also contribute to these plans. Required and actual contributions to the plan were $1,682,690 for the year ended June 30, 2020. 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, 2020, the total net position of the pension plan was $31,957,989, which approximates fair value. Deferred Compensation Plans The city offers employees a voluntary deferred compensation plan created in accordance with Internal Revenue Code Section 457 and administered by the city. The Plan is a defined contribution plan. Amendments to the plan require City Council approval. The Plan is available to any individual who is an elected official of the city or who is employed by the city after completing 30 days of service. Participation in the plan is voluntary. Contributions to fiduciaries that hold the funds in trust for the plans' participants are made through salary withholdings from participating employees up to the amounts specified in the code. No contributions are required by the city. Amounts deferred are not available to employees until termination, retirement, death, or unforeseeable emergency. All assets and income of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The amounts accumulated under the 457 plan including investments earnings are excluded from the financial statements of the city. 11.Tax Abatements As of June 30, 2020, 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 110 City of Tigard, Oregon Notes to Basic Financial Statements Enterprise Zone. ORS 285C.255 defines the sunset of all enterprise zone programs, terminating existing programs as of June 30, 2025. The City of Tigard elected to add the following additional incentives and requirements to its program: • Fast tracking the land use review process. • Pre-application conference fees, business registration fees, and sign permit fee are waived by 50 percent. • City Council may extend the standard exemption by up to two more years if a qualifying company increases employment by 10 percent each year and new jobs are compensated (wages plus benefits) at 200 percent of Oregon Minimum Wage. • A minimum investment of$500,000 is required. • Total compensation for 75 percent of company's EZ facility jobs (wages plus benefits) must exceed 200 percent of Oregon minimum wage after one year of employment. • A company must provide benefits to employees that meet or exceed the national average of non-mandated benefits for the size of the company, and the Company must offer sufficient training and advancement opportunities for all employees. • A procurement plan increasing purchasing with Tigard based companies is required. • An application fee totaling one tenth of one percent (.001) of the value of the investment for the qualified property that is proposed in the application. This fee is capped at $25,000. • Companies applying for the two year extended abatement must pay a Community Service Fee. This fee is calculated at a rate of 20 percent of the abated taxes for years four and five. The fee is paid to the city. Applications are reviewed by the city and by the county assessor. Review includes a preauthorization consultation and a review of written application materials. For approved applications, City Council may adopt a resolution finding that; the business is eligible for the exemption under the Act, the size of the proposed investment meets requirements, the employment opportunities provide by the facility or firm and/or the nature of the activities undertaken by the facility or firm within the EZ will significantly enhance the local economy, and the activities of the facility or firm will promote the purposes for which the zone was created and increase employment within the zone. Taxes are abated via an exemption of assessed value from all applicable tax levies. These taxes are abated for a period of three tax years, beginning with the first year the property is placed in service. Applicable tax levies include the permanent rate levies and operating levies for all taxing districts that include the property. Additionally, any community service fees received by the city from participating businesses are restricted for use on economic development activities. 111 City of Tigard, Oregon Notes to Basic Financial Statements Recipients of the EZ tax abatement make commitments to the city in their application in a number of areas, including statutory requirements for an increase in full-time employment of 10 percent, no concurrent job losses in Oregon within 30 miles of the EZ, maintenance of employment levels during the exemption period, and first-source agreements with local job training providers. For the fiscal year ended June 30, 2020, the city's property tax revenues were reduced by an estimated $22,000 as a result of the EZ program. For the fiscal year ended June 30, 2020, the Tigard Urban Renewal's property tax revenues were reduced by an estimated $1,300 as a result of the EZ program. If necessary, abated taxes can be reassessed for reasons defined in ORS 285C.240. Reasons for reassessment include; sale of a qualifying business or subject property outside of the EZ, reduction in business operations and/or closure of a business, failure of a business to meet statutory or city requirements, and/or if they use the property for ineligible activities. At disqualification, the County Assessor will assess any previously abated taxes in a subsequent assessment year, less any amounts that have been paid to the city as a community service fee. Non-Profit Low Income Housing Limited Tax Exemption The city's Non-Profit Low Income Housing Limited Tax Exemption (NPLTE) program is authorized by ORS 307.540-548. In 1996, the city's NPLTE program was established by Tigard Municipal Code 3.50, Non-Profit Corporation Low-Income Housing, Ordinance No. 96-34. The program allows exemption from property taxes for Non-Profit Corporations owning a low-income housing facility that meet specific criteria. The criteria include: • The property is owned or being purchased by a corporation that is exempt from income taxes under section 501(c) (3) or (4) of the Internal Revenue Code as amended before December 1, 1984. • Upon liquidation, the assets of the corporation are required to be applied first in payment of all outstanding obligations, and the balance remaining, in cash and in kind, to be distributed to corporations exempt from taxation and operated exclusively for religious, charitable, scientific, literary or educational purposes or to the State of Oregon. • The property is occupied by low-income persons. • The property or portion of the property receiving the exemption, is actually and exclusively used for the purposes described in section 501(c) (3) or (4) of the Internal Revenue Code as amended before December 1, 1984. • The application for exemption has been approved by the City Council. 112 City of Tigard, Oregon Notes to Basic Financial Statements 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, 2020, the city's property tax revenues were reduced by an estimated $105,000 as a result of this program. For fiscal year ended June 30, 2020 the Tigard Urban Renewal's property tax revenues were reduced by an estimated $6,000 as a result of this program. Vertical Housing Development Zone The city's Vertical Housing Development Zone (VHDZ) tax exemption program is authorized by ORS 285C.450 to 285C.480 and 307.864. This ORS allows municipalities to create special districts to encourage mixed-use development. In 2014, the city passed Resolution No. 14- 38 establishing this program. VHDZ allows for partial exemption from property taxes for mixed use multi-story development in core areas of the city. VHDZ encourages development which supports downtown revitalization. Areas identifies for this program include Tigard's Town Center and parts of the Tigard Triangle. This exemption allows for a decrease in total property tax, for new construction, of 20 percent per floor, exemption applies to new construction on the first four floors of residential development built above a non-residential ground floor. Taxes are abated via an exemption of assessed value from applicable tax levies for a period of 10 successive years, beginning in the year following the year the project was completed and would have otherwise been added to the tax rolls. For the fiscal year ended June 30, 2020, the city's property tax revenues were reduced by an estimated $27,000 as a result of this program. For the fiscal year ended June 30, 2020 the Tigard Urban Renewal's property tax revenues were reduced by an estimated $2,000 as a result of this program. For the fiscal year ended June 30, 2019, the city abated property taxes totaling $155,000 under the three programs. For fiscal year ended June 30, 2019 the Tigard Urban Renewal's abated property taxes totaling $9,300 under the three programs. FY 2019 Taxes Abated Tigard Urban Tax Abatement Program City of Tigard Renewal Enterprise Zone $ 23,000 $ 1,300 Non-Profit Low Income Housing Limited Tax Exemption 105,000 6,000 Vertical Housing Development Zone 27,000 2,000 Total $ 155,000 $ 9,300 113 City of Tigard, Oregon Notes to Basic Financial Statements 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 20.56 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 2020 the city paid $15,186,452 to Clean Water Services under this agreement. The net amount retained by the city is reported as revenue in the enterprise funds in the proprietary funds Statement of Revenues, Expenses and Changes in Fund Net Position. Revenues are reported net because the city acts in a fiduciary capacity on behalf of Clean Water Services. 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. 114 City of Tigard, Oregon Notes to Basic Financial Statements Operations, maintenance, and repair expenses that are a result of use of the facilities are allocated based on each party's proportionate use of the WIF. Operations, maintenance, and repair expenses unrelated to usage will be allocated based on each party's proportionate ownership of the WIF. The following percentages were in effect at June 30, 2020: 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, 2020 the city's investment in the WIF was: Investment in joint venture at June 30, 2019 $ 1,005,705 Contributions 65,190 Loss for the year (10,423) Investment in joint venture at June 30, 2020 $ 1,060,472 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 investment in the Partnership is estimated at approximately $170 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. 115 City of Tigard, Oregon Notes to Basic Financial Statements 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 year 2015 for the continuing water infrastructure needs. As of June 30, 2020, the outstanding debt amount for the project is $128,254,644. 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 Resevoir 51.43% Based on usage Pipeline after Waluga Resevoir, 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$537,133, with $579,443 remaining at June 30, 2020. This contract will be completed during the first half of fiscal year 2021. The city's street maintenance fee is the resource for the pavement rehabilitation project. The city has a contract for two well rehabilitations for total of $1,215,655 outstanding at June 30, 2020. This contract will be completed during fiscal year 2022 and will be paid for with water utility and SDC funds. The City Center Urban Renewal Area has entered into two contracts. One for the Universal Plaza Design and one for the Main Street Phase 2 Design Improvements, which have $507,292 and $431,000 remaining outstanding at June 30, 2020, respectively. These projects will be paid for with debt proceeds and property taxes. The city has entered into other contracts for various services with commitments at June 30, 2020 of approximately$525,000. These contracts will be funded with existing resources. 116 City of Tigard, Oregon Notes to Basic Financial Statements 17. Contingent Liabilities The city is a defendant in various lawsuits. All 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. 18. Subsequent Event On November 3, 2020 the city issued $86,575,000 of Water System Revenue Refunding Bonds and were used to defeasance part of the 2012 Series Water Revenue Bonds. As such the proceeds of refunding issues were placed in an irrevocable trust to provide for future debt service payments on the retired bonds. The refunding was undertaken to reduce total debt service payments by$26,594,833 over twenty-three years in an economic gain of$16,503,405. 117 No content appears on this page by design. 118 Required Supplementary Information 119 120 CITY OF TIGARD,OREGON GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Taxes $ 17,121,416 $ 17,121,416 $ 16,949,642 $ (171,774) Licenses and permits 1,196,521 1,196,521 1,234,666 38,145 Intergovernmental revenues 7,347,865 7,360,615 7,334,814 (25,801) Charges for services 243,702 243,702 302,894 59,192 Fines and forfeitures 1,654,498 1,654,498 534,471 (1,120,027) Franchise fees 6,254,627 6,254,627 6,365,589 110,962 Interest earnings 500,900 500,900 766,467 265,567 Miscellaneous revenues 56,432 249,570 182,123 (67,447) Total revenues 34,375,961 34,581,849 33,670,666 (911,183) EXPENDITURES Community services 25,916,564 26,523,813 23,595,107 2,928,706 Community development 3,613,352 3,836,092 3,323,661 512,431 Policy and administration 1,070,356 1,092,791 843,032 249,759 Total expenditures 30,600,272 31,452,696 27,761,800 3,690,896 Change in fund balance before other financing sources(uses) 3,775,689 3,129,153 5,908,866 2,779,713 OTHER FINANCING SOURCES(USES) Transfer in 292,900 292,900 258,181 (34,719) Interfund loan (1,000) (1,000) (45,596) (44,596) Transfer out (2,611,477) (2,671,977) (2,371,150) 300,827 Contingency (1,638,450) (1,130,914) - 1,130,914 Reserve for future expenditures (21,642,148) (21,448,148) - 21,448,148 Total other financing(uses) (25,600,175) (24,959,139) (2,158,565) 22,800,574 Change in fund balance (21,824,486) (21,829,986) 3,750,301 25,580,287 Fund balance-beginning of the year 21,824,486 21,829,986 23,347,315 1,517,329 Fund balance-end of the year $ - $ - 27,097,616 $ 27,097,616 Reconciliation of budgetary fund balance to GAAP basis net position: Interfund Loan 883,981 Total net position,GAAP basis $ 27,981,597 121 City of Tigard Oregon Schedule of the City's Proportionate Share of the Net Pension Liability(Asset) Oregon Public Employees Retirement System Last Seven Fiscal Years"z 2020 2019 2018 2017 2016 2015 2014 City's proportion of the net pension liability (asset) 0.075025% 0.073322% 0.072960% 0.074719% 0.081488% 0.074022% 0.074022% City's proportionate share of the net pension liability(asset) $ 12,977,450 $ 11,107,323 $ 9,835,041 $ 11,216,998 $ 4,678,602 $ (1,677,869) $ 3,777,455 City's covered payroll $ 6,331,572 $ 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 204.96% 186.95% 156.60% 169.70% 75.62% -27.84% 69.61% Plan fiduciary net position as a percentage of the total pension liability 80.23% 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 Z Amounts presented are for the measurement period reported during the fiscal year,which for FY 2020 is July 1,2018-June 30,2019. 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. 122 City of Tigard,Oregon Schedule of the City's Contributions Oregon Public Employees Retirement System Last Seven Fiscal Years 1 2020 2019 2018 2017 2016 2015 2014 Contractually required contributions $ 1,302,699 $ 1,039,691 $ 937,027 $ 787,306 $ 761,228 $ 782,812 $ 722,108 Contributions in relation to the contractually required contribution (1,302,699) (1,039,691) (937,027) (787,306) (761,228) (782,812) (722,108) Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $ - City's covered payroll $ 6,307,694 $ 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 20.65% 16.42% 15.77% 12.54% 11.52% 12.65% 11.98% '10-year trend information required by GASB Statement 68 will be presented prospectively NOTES TO SCHEDULE Actuarial Assumptions and Methods Used to Actuarially Determine Contributions: Actuarial Valuation December 31,2017 December 31,2016 December 31,2015 December 31,2013 December 31,2011 Effective July 2019-June 2020 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 Entry Age Normal Projected Unit Credit Actuarial valuation method: Market Value Market Value Market Value Market Value Market Value Actuarial assumption: Inflation rate 2.50 Percent 2.50 Percent 2.50 Percent 2.75 percent 2.75 percent Projected salary increases 3.50 percent 3.50 percent 3.50 percent 3.75 percent 3.75 percent Investment rate of return 7.20 percent 7.20 percent 7.50 percent 7.75 percent 8.00 percent 123 City of Tigard,Oregon Schedule of the Changes in the City's Total OPEB Liability and Related Ratios Implicit Rate Subsidy Plan Last Three Fiscal Years 1,2 2020 2019 2018 Total OPEB Liability(in 1,000s) Service cost $ 109 $ 117 $ 100 Interest 52 54 43 Changes in benefit terms - - - Economic/demographic losses - 15 - Changes of assumptions or other inputs 46 (292) (96) Benefit payments (59) (49) (59) Net change in OPEB liability 148 (155) (12) Total OPEB Liability- beginning 1,268 1,423 1,435 Total OPEB Liability-ending $ 1,416 $ 1,268 $ 1,423 Covered-employee payroll $ 23,214 $ 21,705 $ 21,438 Total OPEB Liability as a %of covered payroll 6.10% 5.84% 6.64% 110-year trend information required by GASB Statement 75 will be presented prospectively Z Amounts presented are for the measurement period reported during the fiscal year, which for FY 2020 is July 1, 2018-June 30, 2019 124 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 Four Fiscal Years 1,2 2020 2019 2018 2017 City's proportion of the net OPEB liability(asset) 0.0607% 0.0579% 0.0613% 0.0675% City's proportionate share of the net OPEB liability(asset) $ (117,368) $ (64,649) $ (25,563) $ 18,323 City's covered payroll $ 6,331,572 $ 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 -1.9% -1.1% -0.4% 0.3% Plan fiduciary net position as a percentage of the total OPEB liability 144.4% 124.0% 108.9% 80.5% 110-year trend information required by GASB Statement 75 will be presented prospectively Z Amounts presented are for the measurement period reported during the fiscal year,which for FY 2020 is July 1, 2018- June 30, 2019 125 City of Tigard,Oregon Schedule of the City's Contributions Oregon Public Employees Retirement System,Retirement Health Insurance Account Last Four Fiscal Years' 2020 2019 2018 2017 Contractually required contributions $ 2,463 $ 30,103 $ 29,366 $ 31,820 Contributions in relation to the contractually required contribution (2,463) (30,103) (29,366) (31,820) Contribution deficiency(excess) $ - $ $ - $ City's covered payroll $ 6,307,694 $ 6,331,572 $ 5,941,342 $ 6,280,408 Contributions as a percentage of covered payroll 0.04% 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 31,2017 December 31,2016 December 31,2015 December 31,2013 Effective July 2019-June 2020 July 2018-June 2019 July 2017-June 2018 July 2015-June 2017 Actuarial cost method: Entry Age Normal Entry Age Normal Entry Age Normal Entry Age Normal Actuarial valuation method: Market Value Market Value Market Value Market Value Actuarial assumption: Inflation rate 2.50 percent 2.50 percent 2.50 percent 2.75 percent Projected salary increases 3.50 percent 3.50 percent 3.50 percent 3.75 percent Investment rate of return 7.20 percent 7.20 percent 7.50 percent 7.75 percent 126 Other Supplementary Information 127 128 CITY OF TIGARD,OREGON COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30,2020 Special Debt Service Capital Project Revenue Funds Funds Funds Total ASSETS Cash and investments $ 2,325,718 $ $ 3,446,404 $ 5,772,122 Accounts receivable 742,557 772,238 1,514,795 Property taxes receivable - 3,019 - 3,019 Assessment liens receivable 214,276 214,276 Interest receivable - 1,518 - 1,518 Restricted cash and investments 21,461,900 1,298,855 41,937,500 64,698,255 Total assets $ 24,548,255 $ 1,517,668 $ 46,156,142 $ 72,222,065 LIABILITIES Accounts payable and accrued liabilities $ 537,829 $ - $ 901,588 $ 1,439,417 Deposits 1,057,431 - 1,057,431 Due to others 59,223 - 59,223 Advances from other funds - 986,301 986,301 Unearned revenue 50,000 - 50,000 Total liabilities 1,704,483 - 1,887,889 3,592,372 DEFERRED INFLOWS OF RESOURCES Resources not yet available: Property taxes - 11,600 - 11,600 Transportation refund credits 35,857 - - 35,857 State grants - - 70,873 70,873 Special assessment liens - 213,340 109,761 323,101 Total deferred inflows of resources 35,857 224,940 180,634 441,431 FUND BALANCES Non-spendable: Prepaids 18,080 - - 18,080 Restricted for: Street maintenance and improvements 7,374,308 24,509,563 31,883,871 Tourism 752,303 - 752,303 Affordable housing 114,949 - 114,949 Debt service - 1,292,728 - 1,292,728 Park development and improvements - 12,413,195 12,413,195 Underground utilities - 556,258 556,258 Building inspection 10,074,209 - 10,074,209 Police services 517,837 517,837 Library improvements 604,896 - 604,896 Urban development and improvements - 3,374,874 3,374,874 Committed for: Street maintenance and improvements - 2,528,203 2,528,203 Urban forestry 1,028,448 - 1,028,448 Assigned to: City facilities - 934,395 934,395 Park and recreation 2,322,885 - 2,322,885 Unassigned - - (228,869) (228,869) Total fund balances 22,807,915 1,292,728 44,087,619 68,188,262 Total liabilities,deferred inflows of resources and fund balances $ 24,548,255 $ 1,517,668 $ 46,156,142 $ 72,222,065 129 CITY OF TIGARD,OREGON COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS for the year ended June 30,2020 Special Debt Service Capital Project Revenue Funds Funds Funds Total REVENUES Taxes $ 6,105,734 $ 1,047,495 $ $ 7,153,229 Special assessments - 46,554 46,554 Licenses and permits 2,815,902 - 2,815,902 Intergovernmental revenues 16,278 - 2,013,424 2,029,702 Charges for services 1,869,271 - 3,197,825 5,067,096 System development charges - - 51606,246 5,606,246 Rental revenues - - 54,202 54,202 Fines and forfeitures 293,973 - - 293,973 Interest earnings 521,057 29,831 952,798 1,503,686 Miscellaneous revenues 221,969 - 67,914 289,883 Total revenues 11,844,184 1,123,880 11,892,409 24,860,473 EXPENDITURES Community services 113,005 - - 113,005 Public works 6,153,581 - - 6,153,581 Community development 1,945,434 - 606,179 2,551,613 Debt service: Principal 825,000 808,156 - 1,633,156 Interest 35,888 141,290 - 177,178 Capital outlay - - 8,121,335 8,121,335 Total expenditures 9,072,908 949,446 8,727,514 18,749,868 Changes in fund balance before other financing sources(uses) 2,771,276 174,434 3,164,895 6,110,605 OTHER FINANCING SOURCES(USES) Transfer in 2,621,500 - 3,506,014 6,127,514 Transfer out (1,714,725) (359,000) (2,599,049) (4,672,774) Debt proceeds - 780,000 5,149,000 5,929,000 Total other financing sources(uses) 906,775 421,000 6,055,965 7,383,740 Changes in fund balance 3,678,051 595,434 9,220,860 13,494,345 Fund Balance-Beginning of the year 19,129,864 697,294 34,866,759 54,693,917 Fund Balance-End of the year $ 22,807,915 $ 1,292,728 $ 44,087,619 $ 68,188,262 130 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. Construction Excise Tax Fund–This fund accounts for revenues generated from Tigard's construction excise tax and funds projects to promote affordable housing. 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. 131 132 No content appears on this page by design. 133 CITY OF TIGARD,OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30,2020 City Gas Transient Construction Gas Tax Tax Lodging Tax Excise Tax Fund Fund Fund Fund ASSETS Cash and investments $ - $ - $ - $ - Accounts receivable 327,002 123,740 32,147 - Restricted cash and investments 4,997,364 2,562,192 720,156 122,416 Total assets $ 5,324,366 $ 2,685,932 $ 752,303 $ 122,416 LIABILITIES Accounts payable $ 124,046 $ - $ - $ - Due to others - - 7,467 Deposits 476,087 - - Unearned revenue - - - Total liabilities 600,133 - 7,467 DEFERRED INFLOWS OF RESOURCES Transportation refund credits 23,493 12,364 - FUND BALANCE Restricted for: Street maintenance and improvements 4,700,740 2,673,568 - - Tourism - - 752,303 - Affordable housing - - - 114,949 Building inspection - - - Police services - - - Library improvements - - - Committed for: Urban forestry - - - Assigned for: Park and recreation - - - - Total fund balances 4,700,740 2,673,568 752,303 114,949 Total liabilities and fund balances $ 5,324,366 $ 2,685,932 $ 752,303 $ 122,416 134 Electrical Criminal Urban Parks Inspection Building Forfeiture Forestry Utility Library Fund Fund Fund Fund Fund Fund Total $ - $ - $ $ - $ 2,325,718 $ - $ 2,325,718 1,131 6,163 1,618 250,228 528 742,557 413,086 9,807,191 576,953 1,608,174 - 654,368 21,461,900 $ 414,217 $ 9,831,434 $ 576,953 $ 1,609,792 $ 2,575,946 $ 654,896 $ 24,548,255 $ $ 153,621 $ 7,101 $ - $ 253,061 $ - $ 537,829 603 (862) 52,015 - - - 59,223 - - - 581,344 - 1,057,431 - - - - - 50,000 50,000 603 152,759 59,116 581,344 253,061 50,000 1,704,483 - - - - - - 35,857 - - 7,374,308 - - - 752,303 - - - 114,949 413,614 9,660,595 - - 10,074,209 - - 517,837 - 517,837 - - - 604,896 604,896 1,028,448 - - 1,028,448 - 2,322,885 21322,885 413,614 9,678,675 517,837 1,028,448 2,322,885 604,896 22,807,915 $ 414,217 $ 9,831,434 $ 576,953 $ 1,609,792 $ 2,575,946 $ 654,896 $ 24,548,255 135 CITY OF TIGARD,OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE for the year ended June 30,2020 City Gas Transient Construction Gas Tax Tax Lodging Tax Excise Tax Fund Fund Fund Fund REVENUES Gas tax $ 4,612,461 $ - $ - $ - City gas tax - 831,411 - - Hotel/Motel tax - - 547,271 - Construction excise tax - - - 114,591 Licenses and permits 5,663 - - - Charges for services - - - - Intergovernmental revenues - - - - Fines and forfeitures - - - - Tree replacement revenue - - - - Interest earnings 125,789 61,240 19,699 358 Miscellaneous revenues 82,957 - - - Total revenues 4,826,870 892,651 566,970 114,949 EXPENDITURES Community services - - - - Public works 3,009,946 - - - Community development - - - - Debt service: Principal 540,517 284,483 - - Interest 23,513 12,375 - - Total expenditures 3,573,976 296,858 - - Changes in fund balance before other financing sources(uses) 1,252,894 595,793 566,970 114,949 OTHER FINANCING SOURCES(USES) Transfer in 158,000 - - - Transfer out (859,529) (100,630) (334,469) - Total other financing sources(uses) (701,529) (100,630) (334,469) - Changes in fund balance 551,365 495,163 232,501 114,949 Fund balance-Beginning of the year 4,149,375 2,178,405 519,802 - Fund balance-End of the year $ 4,700,740 $ 2,673,568 $ 752,303 $ 114,949 136 Electrical Criminal Urban Parks Inspection Building Forfeiture Forestry Utility Library Fund Fund Fund Fund Fund Fund Total $ $ - $ $ - $ $ - $ 4,612,461 - - - 831,411 - - - 547,271 - - - 114,591 250,148 2,560,091 - - 2,815,902 - - - 1,808,024 - 11808,024 16,278 - - - 16,278 - 293,973 - - 293,973 - - - 61,247 - - 61,247 11,269 223,904 8,905 38,272 16,803 14,818 521,057 24,702 83,317 - - 30,993 - 221,969 286,119 2,883,590 302,878 99,519 1,855,820 14,818 11,844,184 - - 113,005 - - - 113,005 - - - 3,143,635 - 6,153,581 1,945,434 - - - 1,945,434 - - - 825,000 - - - - - 35,888 - 1,945,434 113,005 - 3,143,635 - 9,072,908 286,119 938,156 189,873 99,519 (1,287,815) 14,818 2,771,276 - 250,000 - - 2,213,500 - 2,621,500 (250,000) - (108,559) (61,538) - (1,714,725) (250,000) 250,000 - (108,559) 2,151,962 - 906,775 36,119 1,188,156 189,873 (9,040) 864,147 14,818 3,678,051 377,495 8,490,519 327,964 1,037,488 1,458,738 590,078 19,129,864 $ 413,614 $ 9,678,675 $ 517,837 $ 1,028,448 $ 2,322,885 $ 604,896 $ 22,807,915 137 CITY OF TIGARD,OREGON GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES State gas tax $ 4,183,940 $ 4,183,940 $ 3,645,295 $ (538,645) County gas tax 197,296 197,296 967,166 769,870 Licenses and permits 65,965 65,965 5,663 (60,302) Interest earnings 82,400 82,400 125,789 43,389 Miscellaneous revenues 62,818 62,818 82,957 20,139 Total revenues 4,592,419 4,592,419 4,826,870 234,451 EXPENDITURES Public works 3,760,480 3,793,100 3,009,946 783,154 *Debt service: Principal 543,650 543,650 540,517 3,133 Interest 33,580 33,580 23,513 10,067 Total expenditures 4,337,710 4,370,330 3,573,976 796,354 Change in fund balance before other financing sources(uses) 254,709 222,089 1,252,894 1,030,805 OTHER FINANCING SOURCES(USES) Transfer in 158,000 158,000 158,000 - Transfer out (2,131,900) (2,172,400) (859,529) 1,312,871 Contingency (222,000) (189,380) - 189,380 Reserve for future expenditures (1,019,293) (1,019,293) - 1,019,293 Total other financing(uses) (3,215,193) (3,223,073) (701,529) 2,521,544 Change in fund balance (2,960,484) (3,000,984) 551,365 3,552,349 Fund balance-Beginning of the year 2,960,484 3,000,984 4,149,375 1,148,391 Fund balance-End of the year $ - $ - $ 4,700,740 $ 4,700,740 * Budget appropriation is made at the debt service program level 138 CITY OF TIGARD,OREGON CITY GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES City gas tax $ 933,987 $ 933,987 $ 831,411 $ (102,576) Interest earnings 38,700 38,700 61,240 22,540 Miscellaneous revenues 10,000 10,000 - (10,000) Total revenues 982,687 982,687 892,651 (90,036) EXPENDITURES *Debt service: Principal 286,350 286,350 284,483 1,867 Interest 12,420 12,420 12,375 45 Total expenditures 298,770 298,770 296,858 1,912 Changes in fund balance before other financing sources(uses) 683,917 683,917 595,793 (88,124) OTHER FINANCING SOURCES(USES) Transfer out (895,000) (895,000) (100,630) 794,370 Reserve for future expenditures (1,809,668) (1,809,668) - 1,809,668 Total other financing sources(uses) (2,704,668) (2,704,668) (100,630) 2,604,038 Change in fund balance (2,020,751) (2,020,751) 495,163 2,515,914 Fund balance-Beginning of the year 2,020,751 2,020,751 2,178,405 157,654 Fund balance-End of the year $ - $ - $ 2,673,568 $ 2,673,568 * Budget appropriation is made at the debt service program level 139 CITY OF TIGARD,OREGON TRANSIENT LODGING TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Hotel/Motel tax $ 683,920 $ 683,920 $ 547,271 $ (136,649) Interest earnings 4,800 4,800 19,699 14,899 Total revenues 688,720 688,720 566,970 (121,750) OTHER FINANCING SOURCES(USES) Transfer out (344,900) (399,066) (334,469) 64,597 Reserve for future expenditures (796,418) (796,418) - 796,418 Total other financing sources(uses) (1,141,318) (1,195,484) (334,469) 861,015 Change in fund balance (452,598) (506,764) 232,501 739,265 Fund balance-Beginning of the year 452,598 506,764 519,802 13,038 Fund balance-End of the year $ - $ - $ 752,303 $ 752,303 140 CITY OF TIGARD,OREGON CONSTRUCTION EXCISE TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Construction excise tax $ - $ $ 114,591 $ 114,591 Interest earnings - 358 358 Change in fund balance - 114,949 114,949 Fund balance-Beginning of the year - - - Fund balance-End of the year $ - $ $ 114,949 $ 114,949 141 CITY OF TIGARD,OREGON ELECTRICAL INSPECTION FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Licenses and permits $ 185,778 $ 185,778 $ 250,148 $ 64,370 Interest earnings 8,400 8,400 11,269 2,869 Total revenues 194,178 194,178 286,119 91,941 OTHER FINANCING(USES) Transfer out (250,000) (250,000) (250,000) - Reserveforfuture expenditures (288,870) (288,870) - 288,870 Total other financing(uses) (538,870) (538,870) (250,000) 288,870 Change in fund balance (344,692) (344,692) 36,119 380,811 Fund balance-Beginning of the year 344,692 344,692 377,495 32,803 Fund balance-End of the year $ - $ - $ 413,614 $ 413,614 142 CITY OF TIGARD,OREGON BUILDING FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Licenses and permits $ 2,322,956 $ 2,322,956 $ 2,560,091 $ 237,135 Intergovernmental revenues 8,281 8,281 16,278 7,997 Interest earnings 150,500 150,500 223,904 73,404 Miscellaneous revenues 7,500 7,500 83,317 75,817 Total revenues 2,489,237 2,489,237 2,883,590 394,353 EXPENDITURES Community development 2,122,747 2,184,368 1,945,434 238,934 Change in fund balance before other financing sources(uses) 366,490 304,869 938,156 633,287 OTHER FINANCING SOURCES(USES) Transfer in 250,000 250,000 250,000 - Contingency (295,000) (233,379) - 233,379 Reserve for future expenditures (8,342,725) (8,342,725) - 8,342,725 Total other financing sources(uses) (8,387,725) (8,326,104) 250,000 8,576,104 Change in fund balance (8,021,235) (8,021,235) 1,188,156 9,209,391 Fund balance-Beginning of the year 8,021,235 8,021,235 8,490,519 469,284 Fund balance-End of the year $ - $ - $ 9,678,675 $ 9,678,675 143 CITY OF TIGARD,OREGON CRIMINAL FORFEITURE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 8,905 $ 8,905 Forfeitures 56,459 56,459 293,973 237,514 Total revenues 56,459 56,459 302,878 246,419 EXPENDITURES Community services 151,065 151,065 113,005 38,060 Change in fund balance before other financing sources(uses) (94,606) (94,606) 189,873 284,479 OTHER FINANCING SOURCES(USES) Reserve for future expenditures (145,843) (145,843) - 145,843 Total other financing sources(uses) (145,843) (145,843) - 145,843 Change in fund balance (240,449) (240,449) 189,873 430,322 Fund balance-Beginning of the year 240,449 240,449 327,964 87,515 Fund balance-End of the year $ - $ - $ 517,837 $ 517,837 144 CITY OF TIGARD,OREGON URBAN FORESTRY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Tree replacement revenue $ 15,000 $ 15,000 $ 61,247 $ 46,247 Interest earnings 35,200 35,200 38,272 3,072 Total revenues 50,200 50,200 99,519 49,319 OTHER FINANCING SOURCES(USES) Transfer out (148,900) (218,900) (108,559) 110,341 Reserve for future expenditures (916,503) (846,503) - 846,503 Total other financing sources(uses) (1,065,403) (1,065,403) (108,559) 956,844 Change in fund balance (1,015,203) (1,015,203) (9,040) 1,006,163 Fund balance-Beginning of the year 1,015,203 1,015,203 1,037,488 22,285 Fund balance-End of the year $ - $ - $ 1,028,448 $ 1,028,448 145 CITY OF TIGARD,OREGON PARKS UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 1,881,343 $ 1,881,343 $ 1,808,024 $ (73,319) Interest earnings 3,300 3,300 16,803 13,503 Miscellaneous revenues - - 30,993 30,993 Total revenues 1,884,643 1,884,643 1,855,820 (28,823) EXPENDITURES Public works 3,807,739 3,872,437 3,143,635 728,802 Change in fund balance before other financing sources(uses) (1,923,096) (1,987,794) (1,287,815) 699,979 OTHER FINANCING SOURCES(USES) Transfer in 2,213,770 2,213,770 2,213,500 (270) Transfer out (61,538) (61,538) (61,538) - Contingency (135,000) (70,302) - 70,302 Reserve for future expenditures (1,546,720) (1,546,720) - 1,546,720 Total other financing sources(uses) 470,512 535,210 2,151,962 1,616,752 Change in fund balance (1,452,584) (1,452,584) 864,147 2,316,731 Fund balance-Beginning of the year 1,452,584 1,452,584 1,458,738 6,154 Fund balance-End of the year $ - $ - $ 2,322,885 $ 2,322,885 146 CITY OF TIGARD,OREGON LIBRARY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES: Interest earnings $ 13,000 $ 13,000 $ 14,818 $ 1,818 OTHER FINANCING SOURCES(USES) Transfer out (100,000) (100,000) - 100,000 Reserve for future expenditures (402,200) (402,200) - 402,200 Total other financing sources(uses) (502,200) (502,200) - 502,200 Change in fund balance (489,200) (489,200) 14,818 504,018 Fund balance-Beginning of the year 489,200 489,200 590,078 100,878 Fund balance-End of the year $ - $ - $ 604,896 $ 604,896 147 No content appears on this page by design. 148 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. 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. Major Debt Service Fund: 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. 149 150 CITY OF TIGARD,OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING BALANCE SHEET June 30,2020 Bancroft Bond City Center Urban Tigard Triangle Debt Service Renewal Debt Debt Service Fund Service Fund Fund Total ASSETS Property taxes receivable $ - $ 1,862 $ 1,157 $ 3,019 Assessment liens receivable 213,340 - 936 214,276 Interest receivable - 1,518 - 1,518 Restricted cash and investments 100,830 1,090,300 107,725 1,298,855 Total assets $ 314,170 $ 1,093,680 $ 109,818 $ 1,517,668 DEFERRED INFLOWS OF RESOURCES Resources not yet available: Special assessments/liens 213,340 - - 213,340 Property taxes - 7,744 3,856 11,600 Total deferred inflows of resources 213,340 7,744 3,856 224,940 FUND BALANCES Restricted for debt service 100,830 1,085,936 105,962 1,292,728 Total liabilities,deferred inflows of resources and fund balances $ 314,170 $ 1,093,680 $ 109,818 $1,517,668 151 CITY OF TIGARD,OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES for the year ended June 30,2020 Bancroft Bond City Center Urban Tigard Triangle Debt Service Renewal Debt Debt Service Fund Service Fund Fund Total REVENUES Taxes $ - $ 586,810 $ 460,685 $ 1,047,495 Collection of bonded assessments 46,554 - - 46,554 Interest earnings 15,464 10,090 4,277 29,831 Total revenues 62,018 596,900 464,962 1,123,880 EXPENDITURES Debt service: Principal 28,156 780,000 - 808,156 Interest 1,014 140,276 141,290 Total expenditures 29,170 920,276 949,446 Change in fund balance before other financing sources(uses) 32,848 (323,376) 464,962 174,434 OTHER FINANCING SOURCES(USES) Debt proceeds - 780,000 - 780,000 Transfer out - (359,000) (359,000) Total other financing sources(uses) - 780,000 (359,000) 421,000 Change in fund balance 32,848 456,624 105,962 595,434 Fund balance-Beginning of the year 67,982 629,312 - 697,294 Fund balance-End of the year $ 100,830 $ 1,085,936 $ 105,962 $ 1,292,728 152 CITY OF TIGARD,OREGON BANCROFT BOND DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Collection of bonded assessments $ 50,000 $ 50,000 $ 46,554 $ (3,446) Interest earnings 31,900 31,900 15,464 (16,436) Total revenues 81,900 81,900 62,018 (19,882) EXPENDITURES *Debt service: Principal 78,000 78,000 28,156 49,844 Interest 5,000 5,000 1,014 3,986 Total expenditures 83,000 83,000 29,170 53,830 Change in fund balance before other financing sources(uses) (1,100) (1,100) 32,848 33,948 OTHER FINANCING SOURCES(USES) Reserve for future expenditures (53,761) (53,761) - 53,761 Total other financing sources(uses) (53,761) (53,761) - 53,761 Change in fund balance (54,861) (54,861) 32,848 87,709 Fund balance-Beginning of the year 54,861 54,861 67,982 13,121 Fund balance-End of the year $ - $ - $ 100,830 $ 100,830 153 CITY OF TIGARD,OREGON CITY CENTER URBAN RENEWAL DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Property taxes $ 560,000 $ 560,000 $ 586,810 $ 26,810 Interest earnings 11,100 11,100 10,090 (1,010) Total revenues 571,100 571,100 596,900 25,800 EXPENDITURES Debt service: Principal 780,000 780,000 780,000 - Interest 231,350 231,350 140,276 91,074 Total expenditures 1,011,350 1,011,350 920,276 91,074 Change in fund balance before other financing sources(uses) (440,250) (440,250) (323,376) 116,874 OTHER FINANCING SOURCES(USES) Debt proceeds 792,000 792,000 780,000 12,000 Transfer out (153,000) (274,000) - 274,000 Reserve for future expenditure (346,750) (346,750) - 346,750 Total other financing sources(uses) 292,250 171,250 780,000 632,750 Change in fund balance (148,000) (269,000) 456,624 749,624 Fund balance-Beginning of the year 148,000 269,000 629,312 360,312 Fund balance-End of the year $ - $ - $ 1,085,936 $ 1,109,936 154 CITY OF TIGARD,OREGON TIGARD TRIANGLE DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Property taxes $ 293,000 $ 293,000 $ 460,685 $ 167,685 Interest earnings - - 4,277 4,277 Total revenues 293,000 293,000 464,962 171,962 EXPENDITURES *Debt service: Interest 9,000 9,000 - 9,000 Total expenditures 9,000 9,000 - 9,000 Change in fund balance before other financing sources(uses) 284,000 284,000 464,962 180,962 OTHER FINANCING SOURCES(USES) Transfer out (359,000) (359,000) (359,000) - Reserve for future expenditure (25,000) (25,000) - 25,000 Total other financing sources(uses) (384,000) (384,000) (359,000) 25,000 Change in fund balance (100,000) (100,000) 105,962 205,962 Fund balance-Beginning of the year 100,000 100,000 - (100,000) Fund balance-End of the year $ - $ - $ 105,962 $ 105,962 155 CITY OF TIGARD,OREGON GENERAL OBLIGATION DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Taxes $ 2,385,625 $ 2,385,625 $ 2,311,480 $ (74,145) Interest earnings 37,000 37,000 45,788 8,788 Total revenues 2,422,625 2,422,625 2,357,268 (65,357) EXPENDITURES Debt service: Principal 1,585,000 1,585,000 7,269,234 (5,684,234) Interest 638,000 638,000 631,825 6,175 Total expenditures 2,223,000 2,223,000 7,901,059 (5,678,059) Change in fund balance before other financing sources(uses) 199,625 199,625 (5,543,791) (5,743,416) OTHER FINANCING SOURCES(USES) Debt proceeds - - 5,981,000 5,981,000 Reserve for future expenditures (1,527,755) (1,527,755) - 1,527,755 Total other financing sources(uses) (1,527,755) (1,527,755) 5,981,000 7,508,755 Change in fund balance (1,328,130) (1,328,130) 437,209 1,765,339 Fund balance-Beginning of the year 1,328,130 1,328,130 1,510,969 182,839 Fund balance-End of the year $ - $ - $ 1,948,178 $ 1,948,178 156 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 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. 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. 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. Parks Capital Fund – Accounts for revenues earmarked for improvements to park and recreational facilities within the city. Resources are primarily transfers in of system development charges and other funds and grants and donations. Expenditures consist of various park,trail development and open space acquisition projects. Parks Bond Fund –Accounts for the voter approved a $17 million parks bond debt issued for purchase of land and green spaces to develop city parks. Parks System Development Charges (SDC) Fund –Accounts for revenues associated with the collection of Parks System Development Charges. Resources are used to fund the acquisition, development and expansion of additional recreation spaces and facilities that are included in the city's Park Master Plan. Transportation Capital Improvement Project Fund–Accounts for capital improvement projects funded with transportation revenues; including Gas Tax, Traffic Impact Fees and Transportation Development Tax. 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. 157 158 No content appears on this page by design. 159 CITY OF TIGARD,OREGON CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30,2020 Transportation Underground Street Transportation Facility Development Utility Maintenance SDC Fund Tax Fund Fund Fee Fund Fund ASSETS Cash and investments $ 964,970 $ - $ - $ 2,481,434 $ - Accounts receivable 903 11,866 450 396,157 4,772 Restricted cash and investments - 13,718,907 555,808 - 9,051,791 Total assets $ 965,873 $ 13,730,773 $ 556,258 $ 2,877,591 $ 9,056,563 LIABILITIES Accounts payable and accrued liabilities $ 31,478 $ - $ - $ 349,388 $ - Advances from other funds-interfund loans - - - - - Unearned revenue-special assessments - - - - - Total liabilities 31,478 - 349,388 - DEFERRED INFLOWS OF RESOURCES Special assessments/liens - 3,413 - - - FUND BALANCES(DEFICIT) Restricted for: Street maintenance and improvements - 13,727,360 9,056,563 Park development and improvements - - - Underground utilities - 556,258 - Urban development and improvements - - - - Committed for: Street maintenance and improvements - - 2,528,203 - Assigned to: City facilities 934,395 - - - - Unassigned - - - Total fund balances 934,395 13,727,360 556,258 2,528,203 9,056,563 Total liabilities,deferred inflows of resources and fund balance $ 965,873 $ 13,730,773 $ 556,258 $ 2,877,591 $ 9,056,563 160 Transportation Parks Parks Parks Capital City Center Captial Tigard Triangle Capital Bond SDC Improvement Improvement Improvement Fund Fund Fund Fund Fund Fund Total $ - $ - $ - $ - $ $ - $ 3,446,404 135,162 - 7,642 215,286 - 772,238 323,782 826,563 11,381,667 1,767,263 4,238,596 73,123 41,937,500 $ 458,944 $ 826,563 $ 11,389,309 $ 1,982,549 $ 4,238,596 $ 73,123 $ 46,156,142 $ 155,273 $ - $ - $ 186,036 $ 106,290 $ 73,123 $ 901,588 - - - - 757,432 228,869 986,301 - - - 70,873 - - 70,873 155,273 - - 256,909 863,722 301,992 1,958,762 106,348 - - - - - 109,761 - - - 1,725,640 - 24,509,563 197,323 826,563 11,389,309 - - 12,413,195 - - - - - - 556,258 - 3,374,874 - 3,374,874 - - - - - 2,528,203 - - - - 9341395 - - - - - (228,869) (228,869) 197,323 826,563 11,389,309 1,725,640 3,374,874 (228,869) 44,087,619 $ 458,944 $ 826,563 $ 11,389,309 $ 1,982,549 $ 4,238,596 $ 73,123 $ 46,156,142 161 CITY OF TIGARD,OREGON CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE for the year ended June 30,2020 Transportation Underground Street Transportation Facility Development Utility Maintenance SDC Fund Tax Fund Fund Fee Fund Fund REVENUES Charges for services $ - $ - $ 94,870 $ 3,064,759 $ - System development charges - 2,749,952 - - 1,425,608 Intergovernmental revenues - - - - Rental revenues - - - - - Interest earnings 21,554 325,176 11,839 41,501 210,410 Miscellaneous revenues 129 51,335 - 175 - Total revenues 21,683 3,126,463 106,709 3,106,435 1,636,018 EXPENDITURES Community development - - - - - Capital projects 50,917 - - 2,559,549 - Total expenditures 50,917 - - 2,559,549 - Change in fund balance before other financing sources(uses) (29,234) 3,126,463 106,709 546,886 1,636,018 OTHER FINANCING SOURCES(USES) Transfer in 33,708 - - - - Transfer out - (1,006,704) (306,430) (168,138) Debt proceeds - - - Total other financing sources(uses) 33,708 (1,006,704) (306,430) (168,138) Change in fund balance 4,474 2,119,759 106,709 240,456 1,467,880 Fund balance- Beginning of the year 929,921 11,607,601 449,549 2,287,747 7,588,683 Fund balance- End of the year $ 934,395 $ 13,727,360 $ 556,258 $ 2,528,203 $ 9,056,563 162 Transportation Parks Parks Parks Capital City Center Captial Tigard Triangle Capital Bond SDC Improvement Improvement Improvement Fund Fund Fund Fund Fund Fund Total $ $ - $ - $ 38,196 $ $ $ 3,197,825 - 1,430,686 - 5,606,246 702,522 - - 1,239,902 71,000 2,013,424 - - - - 54,202 - 54,202 - 19,162 277,484 10,233 35,439 - 952,798 34,912 - - (18,854) 217 - 67,914 737,434 19,162 1,708,170 1,269,477 89,858 71,000 11,892,409 - - - - 130,583 475,596 606,179 2,141,708 - 2,086,568 1,282,593 - 8,121,335 2,141,708 - 2,086,568 1,413,176 475,596 8,727,514 (1,404,274) 19,162 1,708,170 (817,091) (1,323,318) (404,596) 3,164,895 1,245,105 - - 1,708,741 159,460 359,000 3,506,014 - - (1,117,777) - - - (2,599,049) - - - 5,149,000 - 5,149,000 1,245,105 - (1,117,777) 1,708,741 5,308,460 359,000 6,055,965 (159,169) 19,162 590,393 891,650 3,985,142 (45,596) 9,220,860 356,492 807,401 10,798,916 833,990 (610,268) (183,273) 34,866,759 $ 197,323 $ 826,563 $ 11,389,309 $ 1,725,640 $ 3,374,874 $ (228,869) $ 44,087,619 163 CITY OF TIGARD,OREGON FACILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ 18,900 $ 18,900 $ 21,554 $ 2,654 Miscellaneous revenues - - 129 129 Total revenues 18,900 18,900 21,683 2,783 EXPENDITURES Capital projects 1,050,000 1,050,000 50,917 999,083 Change in fund balance before other financing sources(uses) (1,031,100) (1,031,100) (29,234) 1,001,866 OTHER FINANCING SOURCES(USES) Transfer in 390,000 390,000 33,708 (356,292) Contingency (50,000) (50,000) - 50,000 Reserve for future expenditures (226,262) (226,262) - 226,262 Total other financing sources(uses) 113,738 113,738 33,708 (80,030) Change in fund balance (917,362) (917,362) 4,474 921,836 Fund balance-Beginning of the year 917,362 917,362 929,921 12,559 Fund balance-End of the year $ - $ - $ 934,395 $ 934,395 164 CITY OF TIGARD,OREGON TRANSPORTATION DEVELOPMENT TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES System development charges $ 1,400,000 $ 1,400,000 $ 2,749,952 $ 1,349,952 Interest earnings 253,900 253,900 325,176 71,276 Miscellaneous revenues - - 51,335 51,335 Total revenues 1,653,900 1,653,900 3,126,463 1,421,228 OTHER FINANCING SOURCES(USES) Transfer out (1,425,000) (1,425,000) (1,006,704) 418,296 Reserve for future expenditures (10,758,870) (10,758,870) 10,758,870 Total other financing sources(uses) (12,183,870) (12,183,870) (11006,704) 11,177,166 Change in fund balance (10,529,970) (10,529,970) 2,119,759 12,598,394 Fund balance-Beginning of the year 10,529,970 10,529,970 11,607,601 1,077,631 Fund balance-End of the year $ - $ - $ 13,727,360 $ 13,676,025 165 CITY OF TIGARD,OREGON UNDERGROUND UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 124,000 $ 124,000 $ 94,870 $ (29,130) Interest earnings 8,500 8,500 11,839 3,339 Total revenues 132,500 132,500 106,709 (25,791) OTHER FINANCING SOURCES(USES) Transfer out (10,000) (10,000) - 10,000 Reserve for future expenditures (597,425) (597,425) 597,425 Total other financing uses (607,425) (607,425) 607,425 Change in fund balance (474,925) (474,925) 106,709 581,634 Fund balance-Beginning of the year 474,925 474,925 449,549 (25,376) Fund balance-End of the year $ - $ - $ 556,258 $ 556,258 166 CITY OF TIGARD,OREGON STREET MAINTENANCE FEE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 2,990,000 $ 2,990,000 $ 3,064,759 $ 74,759 Interest earnings 30,100 30,100 41,501 11,401 Miscellaneous revenues - - 175 175 Total revenues 3,020,100 3,020,100 3,106,435 86,335 EXPENDITURES Capital projects 2,888,000 2,888,000 2,559,549 328,451 Change in fund balance before other financing sources(uses) 132,100 132,100 546,886 414,786 OTHER FINANCING SOURCES(USES) Transfer out (306,430) (306,430) (306,430) - Contingency (200,000) (200,000) 200,000 Reserve for future expenditures (1,703,041) (1,703,041) 1,703,041 Total other financing sources(uses) (2,209,471) (2,209,471) (306,430) 1,903,041 Change in fund balance (2,077,371) (2,077,371) 240,456 2,317,827 Fund balance-Beginning of the year 2,077,371 2,077,371 2,287,747 210,376 Fund balance-End of the year $ - $ - $ 2,528,203 $ 2,528,203 167 CITY OF TIGARD,OREGON TRANSPORTATION SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES System development charges $ 409,500 $ 409,500 $ 1,425,608 $ 1,016,108 Interest earnings 144,000 144,000 210,410 66,410 Total revenues 553,500 553,500 1,636,018 1,082,518 OTHER FINANCING SOURCES(USES) Transfer out (209,000) (299,000) (168,138) 130,862 Reserve for future expenditures (7,634,496) (7,634,496) - 7,634,496 Total other financing sources(uses) (7,843,496) (7,933,496) (168,138) 7,765,358 Change in fund balance (7,289,996) (7,379,996) 1,467,880 8,847,876 Fund balance-Beginning of the year 7,289,996 7,379,996 7,588,683 208,687 Fund balance-End of the year $ - $ - $ 9,056,563 $ 9,056,563 168 CITY OF TIGARD,OREGON PARKS CAPITAL FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues $ 867,000 $ 1,037,000 $ 702,522 $ (334,478) Miscellaneous revenues - - 34,912 34,912 Total revenues 867,000 1,037,000 737,434 (299,566) EXPENDITURES Capital projects 4,709,500 5,523,666 2,141,708 3,381,958 Change in fund balance before other financing sources(uses) (3,842,500) (4,486,666) (1,404,274) 3,082,392 OTHER FINANCING SOURCES(USES) Transfer in 3,707,000 4,351,166 1,245,105 (3,106,061) Reserve for future expenditures (744,500) (744,500) - 744,500 Total other financing sources(uses) 2,962,500 3,606,666 1,245,105 (2,361,561) Change in fund balance (880,000) (880,000) (159,169) 720,831 Fund balance-Beginning of the year 880,000 880,000 356,492 (523,508) Fund balance-End of the year $ - $ - $ 197,323 $ 197,323 169 CITY OF TIGARD,OREGON PARKS BOND FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 19,162 $ 19,162 OTHER FINANCING SOURCES(USES) Transfer out (889,000) (889,000) - 889,000 Reserve for future expenditures (59,000) (59,000) - 59,000 Total other financing uses (948,000) (948,000) - 948,000 Change in fund balance (948,000) (948,000) 19,162 967,162 Fund balance-Beginning of the year 948,000 948,000 807,401 (140,599) Fund balance-End of the year $ - $ - $ 826,563 $ 826,563 170 CITY OF TIGARD,OREGON PARKS SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES System development charges $ 503,390 $ 503,390 $ 1,430,686 $ 927,296 Interest earnings 211,100 211,100 277,484 66,384 Total revenues 714,490 714,490 1,708,170 993,680 OTHER FINANCING SOURCES(USES) Transfer out (2,847,400) (3,293,400) (1,117,777) 2,175,623 Reserve for future expenditures (6,399,953) (6,399,953) - 6,399,953 Total other financing sources(uses) (9,247,353) (9,693,353) (1,117,777) 8,575,576 Change in fund balance (8,532,863) (8,978,863) 590,393 9,569,256 Fund balance-Beginning of the year 8,532,863 8,978,863 10,798,916 1,820,053 Fund balance-End of the year $ - $ - $ 11,389,309 $ 11,389,309 171 CITY OF TIGARD,OREGON TRANSPORTATION CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues $ 1,038,200 $ 1,248,200 $ 1,239,902 $ (8,298) Miscellaneous revenues - - (18,854) (18,854) Charges for services - 38,196 38,196 Interest earnings - 10,233 10,233 Total revenues 1,038,200 1,248,200 1,269,477 21,277 EXPENDITURES Capital projects 5,231,400 5,463,400 2,086,568 3,376,832 Total expenditures 5,231,400 5,463,400 2,086,568 3,376,832 Change in fund balance before other financing sources(uses) (4,193,200) (4,215,200) (817,091) 3,398,109 OTHER FINANCING SOURCES(USES) Transfer in 4,093,200 4,115,200 1,708,741 (2,406,459) Reserve for future expenditures (720,000) (720,000) - 720,000 Total other financing sources 3,373,200 3,395,200 1,708,741 (1,686,459) Change in fund balance (820,000) (820,000) 891,650 1,711,650 Fund balance-Beginning of the year 820,000 820,000 833,990 13,990 Fund balance-End of the year $ - $ - $ 1,725,640 $ 1,725,640 172 CITY OF TIGARD,OREGON CITY CENTER CAPITAL IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Rental revenues $ - $ $ 54,202 $ 54,202 Interest earnings - 35,439 35,439 Miscellaneous revenues - 217 217 Total revenues - 89,858 89,858 EXPENDITURES * Capital projects 1,657,500 1,790,255 1,413,176 377,079 Change in fund balance before other financing sources(uses) (1,657,500) (1,790,255) (1,323,318) 466,937 OTHER FINANCING SOURCES(USES) Transfer in 533,000 654,000 159,460 (494,540) Debt proceeds 6,208,000 6,208,000 5,149,000 (1,059,000) Total other financing sources 6,741,000 6,862,000 5,308,460 (494,540) Change in fund balance 5,083,500 5,071,745 3,985,142 (27,603) Fund balance-Beginning of the year 390,050 401,805 147,164 (254,641) Fund balance-End of the year $ 5,473,550 $ 5,473,550 4,132,306 $ (282,244) Reconciliation of budgetary fund balance to GAAP basis net position: Interfund loans are treated as revenue on a budgetary basis (757,432) Fund net position-GAAP basis $ 3,374,874 * For budgetary puposes expenditures are appropriated as capital projects, however on the GAAP statements non-capital transactions are recorded as program expenditures 173 CITY OF TIGARD,OREGON TIGARD TRIANGLE CAPITAL IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Intergovernmental revenues $ 325,000 $ 325,000 $ 71,000 $ (254,000) EXPENDITURES Community development 683,000 683,000 475,596 207,404 * Capital projects 1,000 1,000 - 1,000 Total expenditures 684,000 684,000 475,596 208,404 Change in fund balance before other financing sources(uses) (359,000) (359,000) (404,596) (45,596) OTHER FINANCING SOURCES(USES) Transfer in 359,000 359,000 359,000 - Debt proceeds - - 45,596 45,596 Total other financing sources 359,000 359,000 404,596 45,596 Change in fund balance - - - - Fund balance-Beginning of the year - - Fund balance-End of the year $ - $ - $ Reconciliation of budgetary fund balance to GAAP basis net position: Interfund loans are treated as revenue on a budgetary basis (228,869) Fund net position-GAAP basis $ (228,869) * For budgetary puposes expenditures are appropriated as capital projects, however on the GAAP statements non-capital transactions are recorded as program expenditures 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 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,255,811 $ 3,255,811 $ 3,666,422 $ 410,611 Connection fees 92,200 92,200 134,287 42,087 Interest earnings 110,300 110,300 182,736 72,436 Miscellaneous revenues 42,100 42,100 31,478 (10,622) Total revenues 3,500,411 3,500,411 4,014,923 514,512 EXPENDITURES Public works 2,301,899 2,321,995 2,161,688 160,307 Capital projects 1,206,500 1,280,500 151,942 1,128,558 Total expenditures 3,508,399 3,602,495 2,313,630 1,288,865 Change in fund balance before other financing sources(uses) (7,988) (102,084) 1,701,293 1,803,377 OTHER FINANCING SOURCES(USES) Transfer in 243,750 317,750 17,641 (300,109) Transfer out (659,200) (674,200) (471,150) 203,050 Contingency (414,000) (393,904) - 393,904 Reserve for future expenditures (4,065,622) (4,065,622) - 4,065,622 Total other financing sources(uses) (4,895,072) (4,815,976) (453,509) 4,362,467 Change in fund balance (4,903,060) (4,918,060) 1,247,784 6,165,844 Fund balance-Beginning of the year 4,903,060 4,918,060 6,295,016 1,376,956 Fund balance-End of the year $ - $ - $ 7,542,800 $ 7,542,800 177 CITY OF TIGARD,OREGON SANITARY SEWER FUND RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30,2020 Operating and Non-Operating Expenditures/ Revenues Expenses Budgetary basis $ 4,032,564 $ 2,313,630 Unavailable revenue (14,999) - Compensated absences 4,126 Expenditures capitalized (160,649) Depreciation expense 887,463 Net OPEB obligation - (416) Operating and non-operating revenue and expenses-GAAP basis $ 4,017,565 $ 3,044,154 178 CITY OF TIGARD,OREGON STORMWATER FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,892,188 $ 3,892,188 $ 4,017,864 $ 125,676 Licenses and permits - - 67,810 67,810 Interest earnings 139,900 139,900 172,888 32,988 Miscellaneous revenues 5,000 5,000 19,527 14,527 Total revenues 4,037,088 4,037,088 4,278,089 241,001 EXPENDITURES Public works 2,977,842 3,019,778 2,487,194 532,584 Capital projects 2,410,500 2,502,500 1,901,307 601,193 Total expenditures 5,388,342 5,522,278 4,388,501 1,133,777 Change in fund balance before other financing sources(uses) (1,351,254) (1,485,190) (110,412) 1,374,778 OTHER FINANCING USES Transfer in 704,000 704,000 489,093 (214,907) Transfer out (311,550) (400,550) (60,178) 340,372 Contingency (225,000) (183,064) - 183,064 Reserve for future expenditures (5,272,814) (5,272,814) - 5,272,814 Total other financing uses (5,105,364) (5,152,428) 428,915 5,581,343 Change in fund balance (6,456,618) (6,637,618) 318,503 6,956,121 Fund balance-Beginning of the year 6,456,618 6,637,618 7,783,543 1,145,925 Fund balance-End of the year $ - $ - $ 8,102,046 $ 8,102,046 179 CITY OF TIGARD,OREGON WATER QUALITY/QUANTITY FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 2,000 $ 2,000 $ 4,620 $ 2,620 Interest earnings 25,800 25,800 30,141 4,341 Total revenues 27,800 27,800 34,761 6,961 OTHER FINANCING SOURCES(USES) Transfer out (46,000) (46,000) - 46,000 Reserve for future expenditures (1,214,527) (1,214,527) - 1,214,527 Total other financing sources(uses) (1,260,527) (1,260,527) - 1,260,527 Change in fund balance (1,232,727) (1,232,727) 34,761 1,267,488 Fund balance-Beginning of the year 1,232,727 1,232,727 1,288,839 56,112 Fund balance-End of the year $ - $ - $ 1,323,600 $ 1,323,600 180 CITY OF TIGARD,OREGON STORMWATER FUNDS RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30,2020 Operating and Non-operating Expenditures/ Revenues Expenses Stormwater $ 4,767,182 $ 4,448,679 Water Quality/Quantity 34,761 - Total,budgetary basis 4,801,943 4,448,679 Contributed capital 80,186 - Compensated absences - 5,524 Expenditures capitalized - (1,647,653) Depreciation expense - 687,711 Net OPEB obligation - (602) Operating and non-operating revenue and expenses-GAAP basis $ 4,882,129 $ 3,493,659 181 CITY OF TIGARD,OREGON WATER FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 22,575,446 $ 22,575,446 $ 22,607,832 $ 32,386 Grants 15,000 15,000 - (15,000) Interest earnings 500,700 500,700 847,742 347,042 Miscellaneous revenues 50,000 50,000 68,733 18,733 Total revenues 23,141,146 23,141,146 23,524,307 383,161 EXPENDITURES Public works 10,246,079 10,377,157 8,354,211 2,022,946 Change in fund balance before other financing sources(uses) 12,895,067 12,763,989 15,170,096 2,406,107 OTHER FINANCING SOURCES(USES) Transfer out (10,651,600) (11,248,100) (9,319,758) 1,928,342 Contingency (539,000) (495,422) - 495,422 Reserve for future expenditures (32,511,891) (32,511,891) - 32,511,891 Total other financing sources(uses) (43,702,491) (44,255,413) (9,319,758) 34,935,655 Change in fund balance (30,807,424) (31,491,424) 5,850,338 37,341,762 Fund balance-Beginning of the year 30,807,424 31,491,424 35,251,281 3,759,857 Fund balance-End of the year $ - $ - $ 41,101,619 $ 41,101,619 182 CITY OF TIGARD,OREGON WATER SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES System development charges $ 1,276,200 $ 1,276,200 $ 2,859,333 $ 1,583,133 Interest earnings 258,200 258,200 351,524 93,324 Total revenues 1,534,400 1,534,400 3,210,857 1,676,457 OTHER FINANCING SOURCES(USES) Transfer out (2,170,000) (2,206,000) (454,650) 1,751,350 Reserve for future expenditures (11,416,938) (11,416,938) - 11,416,938 Total other financing sources(uses) (13,586,938) (13,622,938) (454,650) 13,168,288 Change in fund balance (12,052,538) (12,088,538) 2,756,207 14,844,745 Fund balance-Beginning of the year 12,052,538 12,088,538 12,903,512 814,974 Fund balance-End of the year $ - $ - $ 15,659,719 $ 15,659,719 183 CITY OF TIGARD,OREGON WATER CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ $ $ 11,922 $ 11,922 Miscellaneous revenues 654 654 Total revenues 12,576 12,576 EXPENDITURES Capital projects 4,304,500 4,922,000 1,228,252 3,693,748 Change in fund balance before other financing sources(uses) (4,304,500) (4,922,000) (1,215,676) 3,706,324 OTHER FINANCING SOURCES(USES) Transfer in 4,304,500 4,922,000 1,305,145 (3,616,855) Reserve for future expenditures (1,530,000) (1,530,000) - 1,530,000 Total other financing sources(uses) 2,774,500 3,392,000 1,305,145 (2,086,855) Change in fund balance (1,530,000) (1,530,000) 89,469 1,619,469 Fund balance-Beginning of the year 1,530,000 1,530,000 1,478,024 (51,976) Fund balance-End of the year $ - $ - $ 1,567,493 $ 1,567,493 184 CITY OF TIGARD,OREGON WATER DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ - $ - $ 173,980 $ 173,980 EXPENDITURES Debt service: Principal 2,445,000 2,445,000 2,385,305 59,695 Interest 6,032,000 6,032,000 6,005,628 26,372 Total expenditures 8,477,000 8,477,000 8,390,933 86,067 Change in fund balance before other financing sources(uses) (8,477,000) (8,477,000) (8,216,953) 260,047 OTHER FINANCING SOURCES(USES) Transfer in 8,408,000 8,408,000 8,390,933 (17,067) Reserve for future expenditures (6,861,000) (6,861,000) - 6,861,000 Total other financing sources(uses) 1,547,000 1,547,000 8,390,933 6,843,933 Change in fund balance (6,930,000) (6,930,000) 173,980 7,103,980 Fund balance-Beginning of the year 6,930,000 6,930,000 7,140,649 210,649 Fund balance-End of the year $ - $ - $ 7,314,629 $ 7,314,629 185 CITY OF TIGARD,OREGON WATER FUNDS RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES for the year ended June 30,2020 Operating and Non-operating Expenditures/ Revenues Expenses Water $ 23,524,307 $ 17,673,969 Water SDC 3,210,857 454,650 Water CIP 1,317,721 1,228,252 Water Debt Service 8,564,913 8,390,933 Total,budgetary basis 36,617,798 27,747,804 Contributed capital 7,909 - Loss on investment in joint venture (10,423) Elimination of water interfund transfers (9,696,078) (9,696,078) Compensated absences 10,843 Expenditures capitalized (899,027) Principal payments (2,385,305) Accrued interest (38,820) Amortization of bond premium (525,946) Depreciation expense 5,273,389 Net OPEB obligation - (754) Operating and non-operating revenue and expenses-GAAP basis $ 26,919,206 $ 19,486,106 186 CITY OF TIGARD,OREGON ENTERPRISE FUNDS RECONCILIATION OF BUDGETARY FUND BALANCE TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET POSITION June 30,2020 Total Total Total Sanitary Sewer Stormwater Water Sanitary Sewer Fund $ 7,542,800 $ - $ Stormwater Fund - 8,102,046 Water Quality/Quantity Fund 1,323,600 Water Fund - 41,101,619 Water SDC Fund 15,659,719 Water CIP Fund 1,567,493 Water Debt Service Fund - - 7,314,629 Fund balance-budget basis 7,542,800 9,425,646 65,643,460 Adjustments from budgetary basis to generally accepted accounting principles basis: Capital assets, net 19,103,245 14,535,652 204,983,598 Investment in joint venture - - 1,060,472 Sewer funds payable (21,782) - - Assets held for resale 185,021 260,021 Unavailable revenue 7,332 - Compensated absences (31,540) (37,987) (59,650) Long-term debt (129,840,283) Accrued interest payable - (2,504,931) Interfund loans 102,320 - - Deferred Outflow OPEB 2,135 3,049 3,863 Deferred Inflow OPEB (6,120) (8,741) (11,074) OPEB liability (25,989) (37,123) (47,033) Total Net Position-GAAP basis $ 26,857,422 $ 24,140,516 $ 139,228,422 187 No content appears on this page by design. 188 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. 189 190 No content appears on this page by design. 191 CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION June 30, 2020 Central Public Works Services Administration Fund Fund ASSETS Cash and investments $ 2,990,100 $ 650,724 Accounts receivable 15,021 - Prepaids 243,730 - Inventory - - Total assets 3,248,851 650,724 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to OPEB 16,268 7,407 LIABILITIES Accounts payable and accrued liabilities 418,894 74,888 Customer deposits - - Unearned revenue 16,500 - Accrued compensated absences 344,948 55,982 Net OPEB obligation 198,054 90,174 Total liabilities 978,396 221,044 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to OPEB 46,635 21,233 NET POSITION Net position, unrestricted $ 2,240,088 $ 415,854 192 Public Works Fleet/Property Engineering Management Insurance Fund Fund Fund Total $ 3,121,819 $ 943,335 $ 1,572,737 $ 9,278,715 9,427 1,097 1,593 27,138 - 4,800 - 248,530 - 5,699 - 5,699 3,131,246 954,931 1,574,330 9,560,082 14,599 3,254 - 41,528 123,677 91,679 19,001 728,139 1,037,219 - - 1,037,219 - - - 16,500 83,189 55,209 265 539,593 177,740 39,617 - 505,585 1,421,825 186,505 19,266 2,827,036 41,851 9,328 - 119,047 $ 1,682,169 $ 762,352 $ 1,555,064 $ 6,655,527 193 CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION for the year ended June 30, 2020 Central Public Works Services Administration Fund Fund OPERATING REVENUES Charges for services $ 9,087,057 $ 1,930,862 Miscellaneous revenues 32,262 912 Total operating revenues 9,119,319 1,931,774 OPERATING EXPENSES Salaries and wages 5,727,625 1,057,015 Contracted services 861,695 66,296 General, administrative and other 2,476,360 828,702 Total operating expenses 9,065,680 1,952,013 Operating income (loss) 53,639 (20,239) NONOPERATING REVENUE Interest revenue 90,281 15,134 Income (loss) before contributions and transfers 143,920 (5,105) CONTRIBUTIONS AND TRANSFERS Transfer in 2471330 48,336 Change in net position 391,250 43,231 Net position - Beginning of year, as originally stated 1,848,838 372,623 Net position - End of year $ 2,240,088 $ 415,854 194 Public Works Fleet/Property Engineering Management Insurance Fund Fund Fund Total $ 3,541,733 $ 2,345,977 $ - $ 16,905,629 16,112 44,295 64,786 158,367 3,557,845 2,390,272 64,786 17,063,996 2,081,734 971,872 21,060 9,859,306 196,441 405,218 - 1,529,650 1,313,726 857,401 65,026 5,541,215 3,591,901 2,234,491 86,086 16,930,171 (34,056) 155,781 (21,300) 133,825 44,158 18,941 36,329 204,843 10,102 174,722 15,029 338,668 465,488 - - 761,154 475,590 174,722 15,029 1,099,822 1,206,579 587,630 1,540,035 5,555,705 $ 1,682,169 $ 762,352 $ 1,555,064 $ 6,655,527 195 CITY OF TIGARD,OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS for the year ended June 30,2020 Public Works Central Services Administration Fund Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 9,091,179 $ 1,930,862 Payments to suppliers (3,547,755) (861,049) Payments to employees (5,659,235) (1,035,638) Other receipts 32,262 912 Net cash provided(used)by operating activities (83,549) 35,087 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfer from other funds 247,330 48,336 CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings 90,281 15,134 Net increase in cash and investments 254,062 98,557 Cash and investments--beginning of the year 2,736,038 552,167 Cash and investments--end of the year $ 2,990,100 $ 650,724 RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES Operating income(loss) $ 53,639 $ (20,239) Adjustments to reconcile operating income(loss)to net cash provided(used)by operating activities CHANGE IN ASSETS AND LIABILITIES Receivables 4,122 - Prepaids (210,900) - Inventory - - Accounts Payable 1,200 33,949 Customer Deposits - - Accrued compensated absences 71,575 (2,724) Net OPEB Obligation (3,185) 24,101 Net cash provided(used)by operating activities $ (83,549) $ 35,087 196 Public Works Fleet/Property Engineering Management Insurance Fund Fund Fund Total $ 4,526,863 $ 2,340,080 $ - $ 17,888,984 (1,488,186) (1,340,898) (43,834) (7,281,722) (2,018,305) (955,648) (21,051) (9,689,877) 16,112 44,295 64,508 158,089 1,036,484 87,829 (377) 1,075,474 465,488 - - 761,154 44,158 18,941 36,329 204,843 1,546,130 106,770 35,952 2,041,471 1,575,689 836,565 1,536,785 7,237,244 $ 3,121,819 $ 943,335 $ 1,572,737 $ 9,278,715 $ (34,056) $ 155,781 $ (21,300) $ 133,825 (9,427) (1,097) (278) (6,680) (4,800) 3,200 (212,500) - 10,406 - 10,406 21,981 (88,685) 17,992 (13,563) 994,557 - - 994,557 15,927 16,858 9 101,645 47,502 (634) - 67,784 $ 1,036,484 $ 87,829 $ (377) $ 1,075,474 197 CITY OF TIGARD,OREGON CENTRAL SERVICES FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 10,032,008 $ 10,032,008 $ 9,087,057 $ (944,951) Interest earnings - - 90,281 90,281 Miscellaneous revenues 30,000 131,036 32,262 (98,774) Total revenues 10,062,008 10,163,044 9,209,600 (953,444) EXPENDITURES Policy and administration 10,150,956 10,666,565 9,068,865 1,597,700 Total expenditures 10,150,956 10,666,565 9,068,865 1,597,700 Change in fund balance before other financing sources(uses) (88,948) (503,521) 140,735 644,256 OTHER FINANCING SOURCES(USES) Transfer in 234,721 342,721 247,330 (95,391) Contingency (429,000) (122,427) - 122,427 Reserve for future expenditures (1,490,337) (1,490,337) - 1,490,337 Total other financing sources(uses) (1,684,616) (1,270,043) 247,330 1,517,373 Change in fund balance (1,773,564) (1,773,564) 388,065 2,161,629 Fund balance-Beginning of the year 1,773,564 1,773,564 2,080,444 306,880 Fund balance-End of the year $ - $ - 2,468,509 $ 2,468,509 Reconciliation of budgetary fund balance to GAAP basis net position: Net OPEB liability (198,054) Deferred Outflow OPEB 16,268 Deferred Inflow OPEB (46,635) Total net position,GAAP basis $ 2,240,088 198 CITY OF TIGARD,OREGON PUBLIC WORKS ADMINISTRATION FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 2,262,895 $ 2,262,895 $ 1,930,862 $ (332,033) Interest earnings - - 15,134 15,134 Miscellaneous revenues - - 912 912 Total revenues 2,262,895 2,262,895 1,946,908 (315,987) EXPENDITURES Policy and administration 2,273,688 2,365,101 1,927,912 437,189 Change in fund balance before other financing sources(uses) (10,793) (102,206) 18,996 121,202 OTHER FINANCING SOURCES(USES) Transfer in 48,336 48,336 48,336 - Contingency (135,000) (43,587) - 43,587 Reserve for future expenditures (218,759) (218,759) - 218,759 Total other financing sources(uses) (305,423) (214,010) 48,336 262,346 Change in fund balance (316,216) (316,216) 67,332 383,548 Fund balance-Beginning of the year 316,216 316,216 452,522 136,306 Fund balance-End of the year $ - $ - 519,854 $ 519,854 Reconciliation of budgetary fund balance to GAAP basis net position: Net OPEB liability (90,174) Deferred Outflow OPEB 7,407 Deferred Inflow OPEB (21,233) Total net position,GAAP basis $ 415,854 199 CITY OF TIGARD,OREGON PUBLIC WORKS ENGINEERING FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 3,720,852 $ 3,720,852 $ 3,541,733 $ (179,119) Interest earnings - - 44,158 44,158 Miscellaneous revenues - 86,152 16,112 (70,040) Total revenues 3,865,980 3,952,132 3,602,003 (350,129) EXPENDITURES Policy and administration 4,198,168 4,417,158 3,544,399 872,759 Change in fund balance before other financing sources(uses) (332,188) (465,026) 57,604 522,630 OTHER FINANCING SOURCES(USES) Transfer in 640,718 700,718 465,488 (235,230) Contingency (170,000) (97,162) - 97,162 Reserve for future expenditures (679,826) (679,826) - 679,826 Total other financing sources(uses) (209,108) (76,270) 465,488 541,758 Change in fund balance (541,296) (541,296) 523,092 1,064,388 Fund balance-Beginning of the year 541,296 541,296 1,364,069 822,773 Fund balance-End of the year $ - $ - 1,887,161 $ 1,887,161 Reconciliation of budgetary fund balance to GAAP basis net position: Net OPEB liability (177,740) Deferred Outflow OPEB 14,599 Deferred Inflow OPEB (41,851) Total net position,GAAP basis $ 1,682,169 200 CITY OF TIGARD,OREGON FLEET/PROPERTY MANAGEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Charges for services $ 2,719,734 $ 2,719,734 $ 2,345,977 $ (373,757) Interest earnings - - 18,941 18,941 Miscellaneous revenues 5,000 5,000 44,295 39,295 Total revenues 2,724,734 2,724,734 2,409,213 (315,521) EXPENDITURES Policy and administration 2,512,309 2,620,727 2,235,125 385,602 Change in fund balance before other financing sources(uses) 212,425 104,007 174,088 70,081 OTHER FINANCING SOURCES(USES) Contingency (226,000) (117,582) - 117,582 Reserve for future expenditures (596,488) (596,488) - 596,488 Total other financing sources(uses) (822,488) (714,070) - 714,070 Change in fund balance (610,063) (610,063) 174,088 784,151 Fund balance-Beginning of the year 610,063 610,063 633,955 23,892 Fund balance-End of the year $ - $ - 808,043 $ 808,043 Reconciliation of budgetary fund balance to GAAP basis net position: Net OPEB liability (39,617) Deferred Outflow OPEB 3,254 Deferred Inflow OPEB (9,328) Total net position,GAAP basis $ 762,352 201 CITY OF TIGARD,OREGON INSURANCE FUND SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL for the year ended June 30,2020 Budgeted Amounts Variance Actual with final Original Final Amounts budget REVENUES Interest earnings $ 26,500 $ 26,500 $ 36,329 $ 9,829 Miscellaneous revenues 39,000 39,000 64,786 25,786 Total revenues 65,500 65,500 101,115 35,615 EXPENDITURES Policy and administration 64,476 167,975 86,086 81,889 Change in fund balance before other financing sources(uses) 1,024 (102,475) 15,029 117,504 OTHER FINANCING SOURCES(USES) Contingency (25,000) (21,501) - 21,501 Reserve for future expenditures (1,093,354) (940,354) 940,354 Total other financing sources(uses) (1,118,354) (1,014,855) - 1,014,855 Change in fund balance (1,117,330) (1,117,330) 15,029 1,132,359 Fund balance-Beginning of the year 1,117,330 1,117,330 1,540,035 422,705 Fund balance-End of the year $ - $ - $ 1,555,064 $ 1,555,064 202 Other Schedules 203 204 CITY OF TIGARD,OREGON SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS For the fiscal year ended June 30,2020 Interest Transactions Original Outstanding Additions Matured/ Outstanding Issue June 30,2019 Called Paid June 30,2020 Matured Paid Bancroft Bonds Issued June 27,2002 $ 1,307,969 $ 28,419 $ $ 28,419 $ (28,419) $ $ 1,014 $ (1,014) General Obligation Bonds Issued February 3,2011 $ 8,655,000 $ 3,335,000 $ $ 785,000 $ (785,000) $ 2,550,000 $ 117,700 $ (117,700) Issued June 21,2010 7,250,000 825,000 825,000 (825,000) - 35,888 (35,888) Issued April 28,2020 5,981,000 - 5,981,000 - - 5,981,000 - Issued February 3,2011 17,000,000 11,805,000 - 6,425,000 (6,425,000) 5,380,000 382,688 (382,688) $ 15,965,000 $5,981,000 $8,035,000 $ (8,035,000) $ 13,911,000 $ 536,276 $ (536,276) Full Faith&Credit Bonds Issued September 1,2019 $ 5,929,000 $ - $5,929,000 $ - $ $ 5,929,000 $ 124,918 $ (124,918) Bank Loan Issued September 1,2014 $ 1,300,000 $ 780,000 $ $ 780,000 $ (780,000) $ - $ 11,427 $ (11,427) Revenue Bonds Issued May 1,2012 $97,720,000 $ 91,900,000 $ $2,100,000 $ (2,100,000) $ 89,800,000 $4,546,040 $ (4,546,040) Issued May 1,2015 30,810,000 30,315,000 175,000 (175,000) 30,140,000 1,497,900 (1,497,900) $ 122,215,000 $ $2,275,000 $ (2,275,000) $ 119,940,000 $6,043,940 $ (6,043,940) Long-term Note Issued December 1,2011 $ 2,398,000 $ 1,695,942 $ $ 110,305 $ (110,305) $ 1,585,637 $ 50,878 $ (50,878) 205 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF GENERAL OBLIGATION BONDS For the fiscal year ended June 30,2020 Total Debt Series 2011B Series 2020 Series 2011A Service Requirement Issued:February 3,2011 Issued:April 28,2020 Issued:February 3,2011 Fiscal Year Total Total 3.00%to 4.00% 1.34% 3.00%to 4.75% of Maturity Principal Interest Principal Interest Principal Interest Principal Interest 2021 $ 1,964,000 $ 393,242 $ 815,000 $ 85,700 $ 339,000 $ 87,492 $ 810,000 $ 220,050 2022 2,136,000 315,653 850,000 52,400 441,000 75,603 845,000 187,650 2023 2,309,000 241,243 885,000 17,700 549,000 69,693 875,000 153,850 2024 2,471,000 181,187 - - 1,561,000 62,337 910,000 118,850 2025 2,634,000 123,869 1,684,000 41,419 950,000 82,450 2026 2,397,000 60,929 - 1,407,000 18,854 990,000 42,075 $ 13,911,000 $ 1,316,123 $ 2,550,000 $ 155,800 $ 5,981,000 $ 355,398 $ 5,380,000 $ 804,925 206 CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF FULL FAITH & CREDIT BONDS For the fiscal year ended June 30, 2020 Total Debt Series 2019A Series 2019B Service Requirement Issued: August 29, 2019 Issued: August 29, 2019 Fiscal Year Total Total 2.36% 2.99% of Maturity Principal Interest Principal Interest Principal Interest 2021 $ 241,000 $ 165,333 $ 80,000 $ 44,746 $ 161,000 $ 120,587 2022 248,000 158,631 82,000 42,858 166,000 115,773 2023 254,000 151,731 84,000 40,922 170,000 110,809 2024 262,000 144,666 86,000 38,940 176,000 105,726 2025 269,000 137,374 88,000 36,910 181,000 100,464 2026 276,000 129,886 90,000 34,834 186,000 95,052 2027 284,000 122,201 92,000 32,710 192,000 89,491 2028 293,000 114,288 95,000 30,538 198,000 83,750 2029 300,000 106,126 97,000 28,296 203,000 77,830 2030 308,000 97,767 99,000 26,007 209,000 71,760 2031 317,000 89,182 101,000 23,671 216,000 65,511 2032 326,000 80,340 104,000 21,287 222,000 59,053 2033 335,000 71,248 106,000 18,833 229,000 52,415 2034 2,216,000 61,898 692,000 16,332 1,524,000 45,566 $ 5,929,000 $ 1,630,670 $ 1,896,000 $ 436,883 $ 4,033,000 $ 1,193,787 207 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF WATER REVENUE BONDS For the fiscal year ended June 30,2020 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 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 $ 119,940,000 $ 94,036,425 $ 89,800,000 $ 61,134,825 $ 30,140,000 $ 32,901,600 208 CITY OF TIGARD,OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF SAFE DRINKING WATER REVOLVING LOAN FUNDS For the fiscal year ended June 30,2020 Total Debt Service Requirement Issued: December 1,2011 Fiscal Year Total Total 3.00%to 5.00% of Maturity Principal Interest Principal Interest 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 $ 1,585,637 $ 321,784 $ 1,585,637 $ 321,784 209 No content appears on this page by design. 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 2011 2012 2013 GOVERNMENTAL ACTIVITIES Net investment in capital assets $ 181,343,650 $ 179,626,050 $ 181,196,030 Restricted 5,880,755 13,180,057 12,041,725 Unrestricted 11,880,945 8,431,166 14,311,478 Total governmental activities net position 199,105,350 201,237,273 207,549,233 BUSINESS-TYPE ACTIVITIES Net investment in capital assets 78,920,831 65,218,645 74,044,470 Restricted 6,005,540 13,184,382 9,683,852 Unrestricted 8,675,865 19,429,375 18,523,616 Total business-type activities net position 93,602,236 97,832,402 102,251,938 PRIMARY GOVERNMENT Net investment in capital assets 260,264,481 244,844,695 255,240,500 Restricted 11,886,295 26,364,439 21,725,577 Unrestricted 20,556,810 27,860,541 32,835,094 Total primary government net position $ 292,707,586 $ 299,069,675 $ 309,801,171 Source: Comprehensive Annual Financial Report of the City. 214 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2014(Restated) 2015 2016 2017(Restated) 2018 2019 2020 $ 185,242,899 $ 189,748,234 $ 195,142,143 $ 199,214,099 $ 207,113,453 $ 216,080,286 $ 216,281,021 10,941,117 12,376,136 20,392,998 26,313,186 38,019,099 40,908,235 61,695,111 13,596,004 13,031,415 11,024,212 21,105,136 26,937,963 36,208,160 31,287,737 209,780,020 215,155,785 226,559,353 246,632,421 272,070,515 293,196,681 309,263,869 79,627,259 84,867,665 95,247,967 104,870,812 110,785,680 110,542,303 108,782,212 10,551,442 11,250,300 12,279,628 15,387,870 18,811,969 20,044,161 22,974,348 16,721,508 21,256,129 21,847,155 30,803,556 38,881,215 50,316,066 58,469,800 106,900,209 117,374,094 129,374,750 151,062,238 168,478,864 180,902,530 190,226,360 264,870,158 274,615,899 290,390,110 304,084,911 317,899,133 326,622,589 325,063,233 21,492,559 23,626,436 32,672,626 41,701,056 56,831,068 60,952,396 84,669,459 30,317,512 34,287,544 32,871,367 51,908,692 65,819,178 86,524,226 89,757,537 $ 316,680,229 $ 332,529,879 $ 355,934,103 $ 397,694,659 $ 440,549,379 $ 474,099,211 $ 499,490,229 215 CITY OF TIGARD,OREGON CHANGES IN NET POSITION for the last ten fiscal years (accrual basis of accounting) Fiscal Year Fiscal Year Fiscal Year 2011 2012 2013 EXPENSES Governmental activities Community services $ 19,987,961 $ 20,025,191 $ 19,085,777 Public works 10,911,875 12,489,448 8,585,063 Community development 4,159,289 4,709,751 3,988,011 Policy and administration 1,825,398 2,117,198 1,339,254 Interest on long-term debt 1,214,420 1,125,259 1,226,774 Total governmental activities expenses 38,098,943 40,466,847 34,224,879 Business-type activities Sewer 1,386,597 1,743,929 2,114,054 Stormwater 1,667,699 1,649,715 2,045,399 Water 6,996,463 7,807,706 11,989,337 Total business-type activities program expenses 10,050,759 11,201,350 16,148,790 Total primary government expenses $ 48,149,702 $ 51,668,197 $ 50,373,669 PROGRAM REVENUES Governmental activities Charges for services: Community services $ 1,008,691 $ 1,191,417 $ 2,252,945 Public works 2,096,677 1,915,631 2,120,366 Community development 1,747,617 1,684,287 2,579,329 Policy and administration - 84,065 105,755 Operating grants and contributions 6,516,004 6,952,717 6,924,053 Capital grants and contributions 230,500 1,049,774 2,173,900 Total governmental activities program revenues 11,599,489 12,877,891 16,156,348 Business-type activities Charges for services: Sewer 1,021,840 1,025,732 1,203,187 Stormwater 2,178,298 2,402,189 2,629,694 Water 9,065,554 11,895,044 14,907,664 Capital grants and contributions 4,583,764 2,871,726 1,675,987 Total business-type activities program revenues 16,849,456 18,194,691 20,416,532 Total primary government program revenues $ 28,448,945 $ 31,072,582 $ 36,572,880 Source: Comprehensive Annual Financial Report of the City. 216 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2014(Restated) 2015 2016 2017(Restated) 2018 2019 2020 $ 23,078,512 $ 18,542,379 $ 25,089,790 $ 23,268,637 $ 24,099,976 $ 23,370,174 $ 25,961,675 8,399,436 10,408,399 10,865,800 8,263,304 8,900,831 12,129,476 9,578,442 4,267,328 4,688,686 7,030,142 5,807,204 5,330,390 5,146,891 5,817,188 1,732,016 1,323,435 1,226,166 3,528,933 2,945,936 3,688,137 3,383,319 1,147,024 1,185,507 958,204 949,136 863,803 771,834 760,211 38,624,316 36,148,406 45,170,102 41,817,214 42,140,936 45,106,512 45,500,835 2,617,625 2,518,708 2,536,988 2,586,769 2,789,140 3,128,483 3,044,154 1,958,551 2,077,589 2,123,162 2,737,825 2,470,085 3,261,312 3,433,481 11,730,347 10,839,483 14,720,167 8,244,491 14,123,903 17,223,333 19,418,199 16,306,523 15,435,780 19,380,317 13,569,085 19,383,128 23,613,128 25,895,834 $ 54,930,839 $ 51,584,186 $ 64,550,419 $ 55,386,299 $ 61,524,064 $ 68,719,640 $ 71,396,669 $ 1,872,350 $ 1,731,639 $ 1,879,576 $ 2,482,811 $ 1,557,082 $ 1,628,237 $ 1,500,919 2,519,515 2,239,431 2,860,543 5,165,280 4,708,329 4,797,891 5,220,273 1,765,005 3,040,501 4,684,733 4,341,128 6,518,737 6,432,190 4,292,102 65,233 142,277 119,195 363,583 340,446 345,505 90,582 6,318,382 6,508,556 7,756,718 6,880,727 8,321,435 9,594,291 9,625,070 1,804,398 2,021,422 11,785,524 15,691,507 16,307,318 12,268,270 8,542,864 14,344,883 15,683,826 29,086,289 34,925,036 37,753,347 35,066,384 29,271,810 1,727,206 1,773,388 1,791,302 3,013,314 3,208,783 3,389,281 3,666,422 2,733,346 2,899,180 3,058,382 3,275,083 3,620,431 3,812,133 4,017,864 15,985,607 18,804,645 20,918,497 20,926,322 23,078,013 23,751,073 22,607,832 1,111,346 2,066,696 5,806,590 7,670,388 6,795,717 3,285,377 3,139,146 21,557,505 25,543,909 31,574,771 34,885,107 36,702,944 34,237,864 33,431,264 $ 35,902,388 $ 41,227,735 $ 60,661,060 $ 69,810,143 $ 74,456,291 $ 69,304,248 $ 62,703,074 217 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 2011 2012 2013 NET(EXPENSE)REVENUE Governmental activities $ (26,499,454) $ (27,588,956) $ (18,068,531) Business-type activities 6,798,697 6,993,341 4,267,742 Total primary government net expenses (19,700,757) (20,595,615) (13,800,789) GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities: Property taxes 13,604,285 15,182,467 15,338,744 Franchise fees 4,375,420 4,880,635 5,855,956 Unrestricted intergovernmental revenues 2,838,802 4,798,949 2,500,240 Interest earnings 296,964 283,273 248,812 Miscellaneous 5,284,426 1,583,989 316,512 Transfers between Governmental and Business-type 11629,245 2,991,566 120,227 Total governmental activities 28,029,142 29,720,879 24,380,491 Business-type activities: Interest earnings 115,828 73,228 114,661 Miscellaneous 3,269 155,164 157,360 Unrestricted intergovernmental revenues - - - Transfers between Governmental and Business-type (1,629,245) (2,991,566) (120,227) Total business-type activities (1,510,148) (2,763,174) 151,794 Total primary government 26,518,994 26,957,705 24,532,285 CHANGES IN NET POSITION Governmental activities(restated) 1,529,688 2,131,923 6,311,960 Business-type activities(restated) 5,288,549 4,230,167 4,419,536 Total primary government $ 6,818,238 $ 6,362,090 $ 10,731,496 Source: Comprehensive Annual Financial Report of the City. 218 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2014(Restated) 2015 2016 2017(Restated) 2018 2019 2020 $ (24,279,433) $ (20,464,580) $ (16,083,813) $ (6,892,178) $ (4,387,589) $ (10,040,128) $ (16,229,025) 5,250,982 10,108,129 12,194,454 21,316,022 17,319,816 10,624,736 7,535,430 (19,028,451) (10,356,451) (3,889,359) 14,423,844 12,932,227 584,608 (8,693,595) 15,796,663 16,523,361 17,177,591 17,616,798 18,387,321 19,101,543 20,325,728 5,542,647 5,687,456 5,734,540 5,890,113 6,095,852 6,211,736 6,360,563 2,955,652 3,004,341 2,840,903 2,074,428 3,022,051 2,522,428 2,484,051 421,211 434,401 688,087 824,213 1,683,282 2,416,827 2,520,783 776,154 247,154 228,779 268,380 416,785 453,435 502,164 1,017,893 (56,368) 817,481 291,314 220,392 460,325 102,924 26,510,220 25,840,345 27,487,381 26,965,246 29,825,683 31,166,294 32,296,213 270,415 131,485 302,890 106,628 139,926 1,606,834 1,770,933 144,767 177,903 193,645 270,628 177,276 652,421 120,392 - - 127,148 285,524 - - - (1,017,893) 56,368 (817,481) (291,314) (220,392) (460,325) (102,924) (602,711) 365,756 (193,798) 371,466 96,810 1,798,930 1,788,401 25,907,509 26,206,101 27,293,583 27,336,712 29,922,493 32,965,224 34,084,614 2,230,787 5,375,765 11,403,568 20,073,068 25,438,094 21,126,166 16,067,188 4,648,271 10,473,885 12,000,656 21,687,488 17,416,626 12,423,666 9,323,831 $ 6,879,058 $ 15,849,650 $ 23,404,224 $ 41,760,556 $ 42,854,720 $ 33,549,832 $ 25,391,019 219 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 2011 2012 2013 GENERAL FUND Nonspendable $ 305,164 $ 471,975 $ 472,941 Unassigned 7,247,383 7,378,411 9,687,736 Total General Fund $ 7,552,547 $ 7,850,386 $ 10,160,677 ALL OTHER GOVERNMENTAL FUNDS Nonspendable $ - $ - $ 14,986 Restricted 16,855,664 15,568,787 14,859,784 Committed 2,263,088 3,217,309 4,020,435 Assigned 417,479 428,823 670,223 Unassigned (382,937) (498,110) (601,324) Total all other governmental funds $ 19,153,294 $ 18,716,809 $ 18,964,104 Source: Comprehensive Annual Financial Report of the City. 220 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2014 2015 2016 2017 2018 2019 2020 $ 508,374 $ 542,543 $ 664,254 $ 706,412 $ 705,495 $ 225,974 $ 274,603 11,474,700 12,115,436 12,970,670 14,884,712 19,356,804 23,121,341 26,823,013 $ 11,983,074 $ 12,657,979 $ 13,634,924 $ 15,591,124 $ 20,062,299 $ 23,347,315 $ 27,097,616 $ 16,055 $ 11,225 $ - $ 16,485 $ 17,040 $ 17,560 $ 18,080 12,504,001 11,791,605 18,250,934 31,914,910 45,521,700 51,414,137 91,514,895 4,457,233 2,801,857 3,260,236 4,341,838 3,307,731 3,325,235 3,556,651 905,166 1,156,788 1,597,773 1,725,086 1,738,216 2,388,659 3,257,280 (752,925) (352,684) (617,329) (725,296) (724,477) - (228,869) $ 17,129,530 $ 15,408,791 $ 22,491,614 $ 37,273,023 $ 49,860,210 $ 57,145,591 $ 98,118,037 221 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 2011 2012 2013 REVENUES Taxes $ 16,753,457 $ 17,767,128 $ 18,208,253 City gas tax* - - 830,031 Franchise fees 4,375,420 4,880,635 5,724,192 Special assessments 40,164 38,776 43,170 Licenses and permits 2,590,516 2,444,551 3,175,118 Intergovernmental revenues 9,834,646 6,586,757 6,040,986 Charges for service 2,292,276 2,087,993 4,624,844 System development charges 835,031 971,660 2,007,935 Fines and forfeitures 907,216 1,092,296 1,038,948 Interest earnings 287,284 262,080 254,237 Miscellaneous 47,489 633,575 206,443 Total revenues 37,963,499 36,765,451 42,154,157 EXPENDITURES Current operating: Community services 19,182,018 19,638,469 18,636,382 Public works 6,059,692 6,354,390 6,551,980 Community development 3,975,257 3,902,223 3,937,089 Policy and administration 711,743 819,034 711,385 Debt service: Principal 2,590,456 1,894,125 1,992,500 Interest 67,294 1,652,691 1,264,795 Refunded bonds 8,836,046 - - Refunding bond issuance cost 81,236 - - Capital outlay 19,247,942 4,037,766 6,357,256 Total expenditures 60,751,684 38,298,698 39,451,387 Excess(deficiency)of revenues over(under)expenditures (22,788,185) (1,533,247) 2,702,770 OTHER FINANCING SOURCES(USES) Proceeds from bond/long-term note 26,214,495 - - Operating transfers in 16,977,142 6,969,663 4,735,619 Operating transfers out (16,006,177) (5,575,062) (4,880,803) Total other financing sources(uses) 27,185,460 1,394,601 (145,184) Net change in fund balances $ 4,397,275 $ (138,646) $ 2,557,586 Debt services as a percentage of non-capital expenditures 6.84% 12.75% 10.92% * 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 2014 2015 2016 2017 2018 2019 2019 $ 18,822,449 $ 19,575,665 $ 20,191,927 $ 20,704,055 $ 21,822,129 $ 25,248,472 $ 25,582,940 638,852 558,740 712,408 844,866 887,038 888,913 831,411 5,542,647 5,691,960 5,732,448 5,886,791 6,102,443 6,218,353 6,365,589 258,831 35,359 65,243 52,146 50,036 59,999 46,554 3,098,875 4,030,120 5,751,472 6,662,790 7,648,235 5,178,056 4,050,568 6,386,961 6,370,732 6,684,667 8,228,693 8,737,359 9,498,510 9,364,516 4,982,211 4,342,534 4,869,821 5,930,289 6,636,913 4,648,396 5,369,990 955,678 961,450 6,104,579 11,733,901 9,860,311 4,240,910 5,606,246 929,293 924,266 972,560 713,059 698,508 843,100 828,444 424,221 434,401 653,879 799,748 1,659,107 2,343,694 2,315,941 312,815 413,736 220,894 349,098 1,204,701 1,284,229 526,208 42,352,833 43,338,963 51,959,898 61,905,436 65,306,780 60,452,632 60,888,407 19,420,335 20,325,635 20,784,186 21,925,169 22,631,248 22,051,531 23,708,112 6,914,185 7,512,446 7,606,128 8,291,205 8,899,175 6,105,157 6,153,581 4,219,481 4,640,737 6,981,903 5,807,836 5,345,399 5,272,175 5,875,274 701,172 778,840 831,876 787,681 795,586 993,346 843,032 2,445,993 2,117,045 2,361,892 2,378,100 2,454,000 2,530,800 3,117,619 1,178,637 1,118,238 1,059,733 977,539 892,206 799,646 809,003 - - - - - - 5,725,537 - - - - - - 59,234 7,657,993 8,924,317 6,200,291 4,705,720 6,742,438 11,087,518 8,121,335 42,537,796 45,417,258 45,826,009 44,873,250 47,760,052 48,840,173 54,412,727 (184,963) (2,078,295) 6,133,889 17,032,186 17,546,728 11,612,459 6,475,680 - 1,300,000 1,650,000 - - - 11,910,000 6,420,053 6,178,215 6,378,318 4,755,215 4,174,624 8,808,520 6,385,695 (6,247,267) (6,445,754) (6,102,439) (5,049,792) (4,662,990) (9,952,900) (7,043,924) 172,786 1,032,461 1,925,879 (294,577) (488,366) (1,144,380) 11,251,771 $ (12,177) $ (1,045,834) $ 8,059,768 $ 16,737,609 $ 17,058,362 $ 10,468,079 $ 17,727,451 11.60% 8.98% 9.00% 8.56% 8.28% 8.34% 8.47% 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 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 2020 11,103,876 9,625,070 8,542,864 20,325,728 6,360,563 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 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 - - 2020 30,292,118 - 3,139,146 - - 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 $ 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 2,484,051 2,520,783 - 502,164 61,465,099 General Revenues Gain(Loss)on Intergovernmental Interest Disposition of Revenues Earnings Capital Assets Miscellaneous Total $ - $ 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 - 1,770,933 - 120,392 35,322,589 225 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 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 2020 25,961,675 9,578,442 5,817,188 3,383,319 CITY OF TIGARD,OREGON BUSINESS-TYPE EXPENSES BY FUNCTION For the last ten fiscal years Fiscal Year Ended June 30 Sewer Stormwater Water Total 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 2020 3,044,154 3,433,481 19,418,199 25,895,834 Source: Comprehensive Annual Financial Report of the City. 226 Interest on Long-Term Debt Total $ 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 45,106,512 760,211 45,500,835 227 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 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 2020 26,414,351 6,365,589 4,050,568 9,364,516 * 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 $ 2,292,276 $ 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 5,369,990 5,606,246 828,444 2,888,703 60,888,407 229 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 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 2020 23,708,112 6,153,581 843,032 14,190,949 9,517,053 54,412,727 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 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% 2020 6,605,395,460 275,633,450 165,371,900 7,046,400,810 3.02 11,283,691,608 62.45% * 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 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 2020 2.51 0.34 0.17 - 3.02 2.93 7.70 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 $ 6.78 $ 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 7.91 2.05 - 0.68 - 1.05 25.35 233 CITY OF TIGARD,OREGON PRINCIPAL PROPERTY TAXPAYERS For current and nine years ago 2020 2011 Percentage Percentage Taxable of Total City Taxable of Total City Taxpayer Assessed Value Rank Assessed Value Assessed Value Rank Assessed Value Pacific Realty Associates $ 244,944,654 1 3.48% $ 184,436,213 1 3.67% PPR Washington Square LLC 145,744,282 2 2.07% 122,805,991 2 2.44% Lincoln Center LLC 104,043,897 3 1.48% 81,818,120 3 1.63% Polygon WLH LLC 57,093,200 4 0.81% ICON Owner Pool 1 West LLC 48,519,890 5 0.69% ROIC Oregon LLC 37,429,370 6 0.53% Portland General Electric 37,414,606 7 0.53% 32,348,717 6 0.64% Comcast Corporation 33,974,000 8 0.48% 28,124,200 7 0.56% Washington Square Property Inv. LLC 28,864,700 9 0.41% Arbor Heights Venture LLC 28,097,040 10 0.40% Frontier Communications 58,229,000 4 1.16% Walton CWOR Park LLC 38,203,140 5 0.76% Northwest Natural Gas 26,811,900 8 0.53% Constance Robinson(Trust) 24,405,830 9 0.49% Macy's Department Stores 22,553,550 10 0.45% Total $ 766,125,639 10.87% $ 619,736,661 12.33% 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 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% 2020 19,872,169 19,065,112 95.94% 196,858 19,261,970 96.93% 329,386 1.66% 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(l) Collected(Z) to Amount Due Added Assessments 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 2020 28,419 28,419 100.00% - 111 This amount is equal to the matured principal on Bancroft improvement bonds. (Z)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 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% 2020 8,843,419 673,634 9,517,053 54,412,727 17.49% 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 2011 48,035 $ 5,028,671,727 $ 25,655,000 $ 175,458 $ 25,479,542 0.51% $ 530.44 2012 48,415 5,159,064,332 30,735,000 263,629 30,471,371 0.59% 629.38 2013 48,695 5,281,797,406 29,397,612 592,612 28,805,000 0.55% 591.54 2014 50,444 5,467,180,620 27,504,927 532,328 26,972,599 0.49% 534.70 2015 50,787 5,710,010,309 24,990,106 722,540 24,267,566 0.43% 477.83 2016 51,253 5,907,590,736 22,862,084 971,579 21,890,505 0.37% 427.11 2017 51,902 6,123,501,297 20,675,137 1,117,556 19,557,581 0.32% 376.82 2018 53,697 6,451,869,864 18,419,297 1,263,130 17,156,167 0.27% 319.50 2019 53,450 6,766,067,829 16,094,594 1,510,969 14,583,625 0.22% 272.85 2020 53,450 7,046,400,810 19,870,531 1,948,178 17,922,353 0.25% 335.31 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 30,2020 Percent Amount Applicable Applicable Net Debt Inside City of Inside City of Jurisdiction Outstanding Tigard * Tigard Tigard/Tualatin School District#23-J $ 332,910,939 46.82% $ 155,861,911 Metro 964,085,000 3.27% 31,535,220 Beaverton School District#48 955,103,871 3.84% 36,633,009 Portland Community College 575,107,061 412.00% 23,710,514 Washington County 213,232,118 10.27% 21,891,262 Tualatin Valley Fire&Rescue District 23,785,000 10.86% 2,583,360 Sub-Total of Overlapping Debt 3,064,223,989 272,215,276 City of Tigard 19,870,531 100.00% 19,870,531 Total for Overlapping Debt $ 3,084,094,520 $ 292,085,807 *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 2011 2012 2013 2014 Debt limit $ 217,807,538 $ 207,504,714 $ 201,826,506 $ 210,982,614 Total net debt applicable to limit 32,300,000 30,735,000 28,800,576 26,820,000 Legal debt margin $ 185,507,538 $ 176,769,714 $ 173,025,930 $ 184,162,614 Total net debt applicable to the limit as a percentage of debt limit 14.83% 14.81% 14.27% 12.71% 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 2015 2016 2017 2018 2019 2020 $ 230,989,826 $ 242,482,552 $ 269,677,150 $ 296,512,995 $ 322,625,386 $ 322,625,386 24,775,000 22,670,000 20,505,000 18,269,800 15,965,000 19,840,000 $ 206,214,826 $ 219,812,552 $ 137,195,419 $ 278,243,195 $ 306,660,386 $ 302,785,386 10.73% 9.35% 7.60% 6.16% 4.95% 6.15% Legal Debt Margin Calculation at June 30,2020 True cash value(2019-2020) $ 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 $ 19,870,531 Excludable debt-Bancroft improvement bonds,bond premium, capital lease and commercial bank loan (30,531) Debt subject to limitation 19,840,000 Legal debt margin-amount available for future indebtedness 302,785,386 Total net debt applicable to the limit as a percent of debt limit 6.15% 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 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 52,785 18,419,297 124,019 910,000 - 2019 53,450 16,094,594 28,419 780,000 - 2020 54,520 19,870,531 - - - *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 $ 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 8.65% 2,813 2,201,107 104,896,686 134,660,794 7.92% 2,670 - 2,105,957 139,643,153 168,457,409 9.51% 3,317 - 2,007,952 139,003,308 165,369,953 9.00% 3,227 - 1,907,007 136,420,282 160,271,117 9.00% 3,088 - 1,803,034 133,775,926 155,032,276 8.45% 2,937 - 1,695,942 131,055,591 149,654,546 7.72% 2,800 - 1,585,637 128,254,644 149,710,812 7.03% 2,746 243 CITY OF TIGARD,OREGON COMPUTATION OF WATER REVENUE BONDS DEBT COVERAGE For the last nine fiscal years 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(Z) 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 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. (Z) 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 2020 $ 18,944,301 $ 20,918,497 $ 20,926,322 $ 23,078,014 $ 23,751,073 $ 22,607,832 9,294 35,173 6,660 4,694 343,069 351,524 308,896 1,242,297 3,010,263 1,924,587 921,379 1,258,967 503,853 1,569,645 3,521,776 2,319,737 949,056 1,600,366 822,043 2,847,115 6,538,699 4,249,018 2,213,504 3,210,857 1,462,677 1,117,286 1,148,575 874,348 1,005,720 1,172,511 336,178 353,396 445,840 407,450 453,971 704,045 2,644,491 4,212,357 1,339,637 1,869,824 1,685,669 1,685,705 2,781,892 3,111,194 3,572,450 3,931,142 4,498,769 5,258,318 7,225,238 8,794,233 6,506,502 7,082,764 7,644,129 8,820,579 12,541,106 14,971,379 20,958,519 20,244,268 18,320,448 16,998,110 $ 11,719,063 $ 12,124,264 $ 14,419,820 $ 15,995,250 $ 16,106,944 $ 13,787,253 $ 4,719,850 $ 4,719,850 $ 6,561,800 $ 6,561,050 $ 6,563,750 $ 6,563,050 - 1,378,238 1,670,300 1,667,900 1,666,000 1,668,800 $ 4,719,850 $ 6,098,088 $ 8,232,100 $ 8,228,950 $ 8,229,750 $ 8,231,850 2.48 1.99 1.75 1.94 1.96 1.67 245 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 Ill Per Capita Enrollment Izl Income(3) of dollars)(3) Area(4) 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 52,785 128,182 12,890 34,755 1,834,543 3.6% 2019 53,450 126,587 12,701 36,281 1,939,219 4.0% 2020 54,520 129,244 12,624 39,040 2,128,461 11.5% Sources of Information: (1)Portland State University Population Research Center (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 2020 2011 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Tigard-Tualatin School District#23-J 779 1 2.71% 724 1 2.56% Macy's Department Stores 503 2 1.75% 704 2 2.49% Nordstrom 474 3 1.65% 579 3 2.05% Consumer Cellular 453 4 1.58% Costco Wholesale Corporation 419 5 1.46% 300 7 1.06% Conduent Commercial Solutions LLC 367 6 1.28% City of Tigard 328 7 1.14% 267 8 0.95% Comcast 302 8 1.05% Luke-Dorf Inc. 256 9 0.89% Target Store 252 10 0.88% Oregon Public Employees Retirement 396 4 1.40% Providence Health System 377 5 1.34% HSBC Card Services 301 6 1.07% University of Phoenix 256 9 0.91% Veris Industries LLC 248 10 0.88% Total 4,133 14.40% 4,152 14.71% Source: City of Tigard Adopted Budget 247 CITY OF TIGARD,OREGON PROPERTY VALUE AND CONSTRUCTION For the last ten fiscal years Fiscal Commercial Constructionlll Residential Construction 111 Year Ended Number of Number of June 30 Permits Value Permits Value 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 2020 5 16,986,000 170 55,073,502 111 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 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 GOVERNMENTAL ACTIVITIES Community services Police 90.10 91.10 84.50 84.50 82.50 83.50 87.50 88.50 84.50 85.00 Library 38.80 38.80 34.80 34.80 34.80 38.30 39.70 40.90 38.80 39.20 Public works Administration 9.75 8.75 9.00 9.20 9.20 9.00 9.50 9.75 9.00 9.95 Parks maintenance 9.75 9.75 9.75 9.75 10.75 11.67 12.17 10.40 10.50 12.50 Recreation - - - - - - 0.33 2.35 1.00 2.35 Street maintenance 7.00 7.00 7.00 7.25 7.25 6.33 7.00 7.45 7.50 8.25 Healthy Streams - - 1.00 - - - - - - - Engineering 11.80 11.80 12.00 13.00 14.00 14.00 17.00 19.00 19.00 20.00 Community development Administration 2.00 3.00 2.00 2.00 2.00 3.00 3.00 3.00 3.00 3.00 Building inspection 7.20 8.10 7.80 8.80 9.00 9.00 13.00 13.00 13.60 14.10 Development Services(a) 7.80 5.90 4.80 3.80 3.80 3.80 - - - - Community Planning 7.00 9.00 9.00 9.00 9.00 9.00 13.50 13.50 12.65 12.65 Development Engineering(b) - - - - - - - - - - Economic Development 1.00 1.50 1.00 2.00 2.00 2.00 2.00 3.00 2.00 3.00 Policy and Administration City management 4.50 4.20 4.00 4.00 5.00 5.50 4.90 5.90 3.90 3.90 City attorney(`) - - - - - - - - 1.10 1.10 Human resources 5.00 5.00 4.80 4.80 4.50 4.80 4.50 4.34 4.14 4.14 Information technology 7.00 7.00 6.30 5.80 7.00 7.00 8.00 9.00 9.00 12.00 Risk management 2.30 2.30 2.10 2.10 2.10 2.30 1.50 1.76 1.76 2.06 Finance administration 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.50 3.00 3.00 Financial operations 4.50 4.50 4.60 4.60 4.60 4.60 4.80 5.30 4.80 4.80 Utility Billing 5.50 6.30 6.50 6.80 6.80 6.80 6.80 7.20 7.20 7.70 Design&Communication 3.05 3.25 3.05 3.05 3.05 3.05 4.25 4.75 4.75 5.35 Contracts&Purchasing(d) 2.30 2.30 1.80 2.00 2.00 2.00 2.00 2.00 2.00 2.50 City Recorder/Records 3.25 3.35 4.15 4.15 4.15 3.35 3.85 3.85 3.85 3.25 Municipal court 3.75 3.75 3.65 3.65 3.65 3.65 3.50 3.50 3.50 6.50 Fleet maintenance(e) 2.60 2.60 1.50 0.95 1.95 1.80 2.35 2.85 2.60 2.60 Property management(e) 4.25 4.25 3.75 3.85 4.85 5.20 4.90 6.55 6.65 6.65 BUSINESS-TYPE ACTIVITIES Public works Sanitary sewer 5.25 6.25 6.25 6.50 5.50 6.00 6.50 6.25 6.25 5.50 Stormwater 7.00 6.25 5.25 5.50 6.50 7.00 7.50 9.00 8.25 5.75 Water 12.00 12.75 12.50 12.00 13.00 13.00 13.00 11.25 12.50 14.05 Green team - - - - - - - - - 4.00 Total 267.45 271.75 255.85 256.85 261.95 268.65 286.05 297.85 286.80 304.85 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. (`) 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 2011 2012 2013 GOVERNMENTAL ACTIVITIES Community services Police-number of traffic citations issued* 7,021 8,308 8,939 Police-number of calls for service* 49,358 52,226 52,420 Library-number of items in collection 237,110 244,154 250,454 Library-materials checked out each year 1,507,248 1,522,422 1,459,334 Public works Acres of park land maintained 233 243 248 Crack sealing completed annually(linear feet) 160,000 160,000 160,000 Vehicles maintained to industry standard 149 149 148 Community development Number of inspections(Tigard) 9,990 10,000 12,500 Number of permits(all types)in Tigard 3,220 3,047 3,049 Number of development applications 370 381 357 Policy and administration Number of job applications 1,000 1,100 2,500 Laptops and computers to maintain 491 491 503 Insured value of city's real property**** (in millions) $ 82 $ 82 $ 82 Number of utility bills sent** 176,274 236,389 238,400 Average fine amount collected $ 126 $ 126 $ 140 BUSINESS-TYPE ACTIVITIES Sewer Miles of sewer lines cleaned 41 41 42 Miles of sewer lines video inspected 23 23 24 Stormwater Miles of stormwater lines cleaned 31 31 32 Number of water quality facilities improved*** 90 90 125 Total number of catch basins cleaned*** 4,368 4,368 2,768 Water Number of accounts 18,129 18,265 18,350 *Data tracked on a calendar year. Data present is as of the previous December 31st. **City of Tigard started monthly utility billing in January 2011. ***GIS data improvement **** Includes value of contents of buildings. Source: City of Tigard Finance Department 250 2014 2015 2016 2017 2018 2019 2020 7,177 6,462 5,745 5,057 5,260 5,972 5,167 48,840 47,247 43,299 41,874 42,075 42,482 38,810 245,000 248,225 253,725 229,344 238,919 220,877 222,438 1,385,376 1,280,376 1,243,774 1,159,446 1,227,561 1,216,642 1,310,382 253 255 301 301 305 306 311 160,000 160,000 160,000 107,727 262,659 92,400 521,298 157 160 146 162 152 156 164 12,382 9,009 10,814 27,551 25,793 17,540 18,736 3,404 2,958 3,860 4,281 4,189 3,776 3,384 341 251 388 818 843 876 875 2,000 2,100 2,200 3,726 2,605 3,393 2,503 523 525 530 585 593 601 702 $ 82 $ 82 $ 82 $ 120 $ 122 $ 129 $ 130 241,500 244,000 256,500 248,560 254,150 258,252 260,260 $ 140 $ 160 $ 160 $ 149 $ 133 $ 119 $ 109 42 42 42 51 57 59 63 21 21 24 23 29 30 25 21 21 21 23 20 26 21 126 126 126 133 138 143 152 2,840 2,840 2,917 3,939 2,620 2,737 2,864 19,207 19,737 20,500 21,509 21,764 21,920 22,020 251 CITY OF TIGARD,OREGON CAPITAL ASSETS STATISTICS BY FUNCTION For the last ten fiscal years Functions/Programs 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 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 18 20 20 20 20 21 24 24 29 Acres of park and greenspaces 435.4 447.0 493.0 499.0 514.0 514.0 548.0 552.0 553.0 558.0 Miles of streets 150.0 150.0 150.0 150.0 150.0 150.0 157.0 175.7 175.7 189.7 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 164.5 166.1 166.9 166.9 166.9 168.0 168.3 168.5 168.7 168.7 Stormwater Total miles of stormwater lines* 131.0 131.0 126.0 130.0 130.0 130.0 131.2 131.8 136.7 135.1 Number of water quality facilities* 92 92 125 126 126 126 164 210 240 240 Water Water mains in miles 245.0 248.0 248.0 248.0 248.0 248.0 251.3 251.3 260.0 260.0 Number of reservoirs 13 13 13 13 13 14 14 14 14 14 Source:City of Tigard Finance Department *GIS data improvement 252 CITY OF TIGARD,OREGON MISCELLANEOUS STATISTICAL DATA June 30,2020 Date of Incorporation 1961 Form of government Mayor/Council with a City Manager as the administrative head of the government of the City Area(Square Miles-incorporated area) 12.2 Miles of streets 190 Police protection: -Number of stations 1 -Number of sworn police officers 63 Education: - Attendance centers 16 -Number of teachers\FTE 770 -Number of students 12,624 Building Permits issued (2019-2020) 665 Recreation and culture: -Number of parks 29 developed and 7 underdeveloped,totaling 36 at 311 acres -Greenways 247 acres -Number of libraries 1 -Number of volumes(estimated) 222,438 Employees: -Classified service(union) 185 -Unclassified(non-union) 125 Information obtained from the various departments of the City of Tigard and Tigard/Tualatin School District#23-J City student totals not available. 253 No content appears on this page by design. 254 Audit Comments and Disclosure Requirements 255 256 No content appears on this page by design. 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, 2020, and have issued our report thereon dated December 3, 2020. We conducted our audit 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 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. PW L. - James C. Lanzarotta, Partner for Moss Adams LLP Portland, Oregon December 3, 2020 259 din 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, 2020, 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 3, 2020. 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. lyaa /U&W �y Portland, Oregon December 3, 2020 261 TCDA Town Center Development .� • nq (A Component Unit of the City of Tigard,Oregon) Annual Financial Report FOR THE FISCAL YEAR ENDED JUNE 30, 2020 r2 �• key n � v IL r � � • v .-� +:�� `rte �, •�' ��.:Y.��i:.� �•�e �'�_•:4.jf4 ... r..F,�Hiq#'a�• .v<'.ori�s;4 �. ,'.t�.'; .., .:,,rpt,,• _ �. �',y ., r., �, :� ,� �:'ti."�i?D�..`. v5: i'y i�e•s fii •• 'P%�� '�`;:�^,~}•iii•', .r>��. �.L. -,c..A,:. i, = r•,C, .'i�:, ;.,} 'JM1. .. c�.••�.en�r �: ��.f'�•i s. .,Y�L�!`�t'•'{. ,r}7.,r+y�j• l' i�•.�Z+ 3: �,i•��.,'R. ;��' _<� .7JAry'!At� .Ls^,'•�f% .�? �.L,- �3•c�',1:.�.• r5'�F j } •M Lir-.1 • , ipt•:, ,. 4.4 "✓ •1•fr� -•i.�„'i .,W,- �� y. d °'S y-'tip �..',a =tii. ,'.•:`Sy-7';-r. ry 11 " :i •'L Y'a '.rsi ~�+'�, � "i��• � _ :►l�.s` �'� � i ��.:Z s �;•• �i Yf��' ~+� � :� ytt 11 •' y;:f : ��_ � J ��` e , ^i SXy+.i4 ��.t.lf ��4'�.. Ff�� '1 r�-�+ so Prepared by: City of Tigard Financial & Information Services Dept. F.�.• ♦; - JI'i f•� ''ii � it• •�1_� ti� ' 'y..J�-N^,�.L A+� .r' .'� .. `�.i• �y • � .�^� � ;i:;:.r � .� '�.i .�s •,� rte.��. ire `;,! 4,. '�'t. .- ./ .+�.L si+ a .� r'�' •�. �! e s 4- * �•� .�I��+l�r fir' '�+:t '•c�, ..• .s �{• ys s - Introductory Section: Listof Officials..................................................................................................................... 1 Financial Section: Report of Independent Auditors......................................................................................... 4 Management's Discussion and Analysis............................................................................. 8 Basic Financial Statements: Government-Wide Financial Statements Statement of Net Position .................................................................................... 16 Statement of Activities.......................................................................................... 17 Fund Financial Statements—Governmental Funds Balance Sheet and Reconciliation ........................................................................ 18 Statement of Revenues and Expenditures and Reconciliation ............................ 19 Notes to the Basic Financial Statements .......................................................................... 22 Required Supplementary Information: Schedule of Revenues, Expenditures and Changes in Fund Balance— Budget and Actual: City Center Capital Projects Fund ......................................................................... 32 Tigard Triangle Capital Projects Fund ................................................................... 33 Other Supplementary Information: Schedule of Revenues, Expenditures and Changes in Fund Balance— Budget and Actual: City Center Debt Service Fund.............................................................................. 36 Tigard Triangle Debt Service Fund........................................................................ 37 Audit Comments and Disclosure Requirements: Report of Independent Auditors Required by Oregon State Regulations........................ 40 Town Center Development Agency List of Officials Fiscal Year 2019-2020 TOWN CENTER DEVELOPMENT AGENCY BUDGET COMMITTEE Timothy Cadman Mayor Jason Snider Chris Bence Councilor John Goodhouse Chelsea Nance Councilor Tom Anderson Stephanie Veal Councilor Heidi Leub Clifford Rone Councilor Liz Newton Leah Voit, Alternate TOWN CENTER DEVELOPMENT AGENCY BOARD Jason Snider, Chair John Goodhouse Liz Newton Heidi Leub Tom Anderson EXECUTIVE DIRECTOR Marty Wine COMMUNITY DEVELOPMENT DIRECTOR Kenny Asher REDEVELOPMENT PROJECT MANAGER for DOWNTOWN Sean Farrelly FINANCE and INFORMATION SERVICES DIRECTOR Toby LaFrance TOWN CENTER DEVELOPMENT AGENCY City of Tigard 1 13125 Hall Blvd. I Tigard,OR 97223 1 503-639-4171 1 INDEPENDENT AUDITOR'S REPORT 2 3 din MOSSADAMS Report of Independent Auditors Board Members Town Center Development Agency (A component unit of the City of Tigard, Oregon) Tigard, Oregon Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and each major fund of the Town Center Development Agency (the Agency), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the Agency's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Agency'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 Agency'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. 4 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Agency as of June 30, 2020, and the respective changes in financial position 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 on pages 8 through 12 and the budgetary schedules for the City Center Capital Projects Fund and Tigard Triangle Capital Projects Fund on pages 32 and 33 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 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 Agency's basic financial statements. The budgetary schedules for the City Center Capital Projects Fund and Tigard Triangle Capital Projects Fund described above are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The budgetary schedules for the City Center Capital Projects Fund and Tigard Triangle Capital Projects Fund have been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary schedules for the City Center Capital Projects Fund and Tigard Triangle Capital Projects Fund are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Agency's basic financial statements. The budgetary schedules on pages 36 and 37 are presented for purposes of additional analysis and are not a required part of the basic financial statements. 5 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 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 Agency's basic financial statements. The introductory section is presented for purposes of additional analysis and is not a required part of the basic financial statements. The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Report on Other Legal and Regulatory Requirements In accordance with Minimum Standards of Audits of Oregon Municipal Corporations, we have issued our report dated December 3, 2020 on our consideration of the Agency'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. C James C. Lanzarotta, Partner for Moss Adams LLP Portland, Oregon December 3, 2020 6 No content appears on this page by design. Town Center Development Agency Management's Discussion and Analysis As part of this Annual Financial Report,the Town Center Development Agency(agency),a component unit of the City of Tigard, Oregon, offers readers this narrative overview and analysis of the financial activities of the agency for the fiscal year ended June 30, 2020. It focuses on significant financial issues, major financial activities, and resulting changes in financial position, as well as economic factors affecting the agency. 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 report. Financial Highlights • The assets of the agency exceeded its liabilities at the close of the most recent fiscal year by $3,367,037. Of this amount, $1,097,208 is restricted for the repayment of debt, and $2,269,829 is for net investment in capital assets. • The agency's net position (assets less liabilities) increased $563,604 over the course of the year, primarily due to property tax revenue exceeding expenses. • In the fund financial statements for fiscal year 2019-20 expenditures in the Capital Projects Fund ($1,888,772) were for capital outlay in the amount of$1,413,176, most of which was for future downtown development consulting, downtown plaza construction and downtown trail construction. The payments in the Debt Service Fund ($920,276) were for principal and interest payments on a commercial bank loan and to the City of Tigard. • Also in the fund financial statements,the agency recognized$1,222,720 in revenue from property taxes, rental revenues, intergovernmental revenues and interest earnings. Overview of the Financial Statements The following discussion and analysis is intended to serve as an introduction to the agency's basic financial statements. The agency's basic financial statements include three components: 1. Government-wide financial statements, 2. Fund financial statements, and 3. Notes to the financial statements. Government-wide financial statements Government-wide financial statements are designed to provide readers with a broad overview of the agency's finances, in a manner that is similar to a private-sector business. The Statement of Net Position presents information on all of the agency's assets and liabilities, with the difference between the two 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 agency is improving or deteriorating. The Statement of Activities presents information on how the agency's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in the statement for some items that will result in cash flows in a future period such as earned, but uncollected property taxes. 8 Town Center Development Agency Management's Discussion and Analysis The government-wide financial statements indicate that the functions of the agency are principally supported by property taxes and are considered governmental activities. The agency does not have business-type activities in which costs are covered through user fees or charges. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or functions. The agency uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the agency are considered governmental funds. Governmental funds are used to account for agency functions that are supported primarily by taxes and intergovernmental revenues.These are essentially the same functions that are reported as governmental activities in the government-wide financial statements. Unlike government-wide financial statements, governmental fund financial statements focus on the acquisition and use of spendable resources, as well as balances of available spendable resources at the end of the fiscal year. Such information may be useful in evaluating the agency's near-term requirements. The agency maintains four separate governmental funds consisting of the City Center Debt Service Fund, City Center Capital Projects Fund, Tigard Triangle Debt Service Fund and Tigard Triangle Capital Projects Fund.The Capital Projects Funds function as the agency's general operations funds for the separate urban renewal areas. Fund information is presented as combined amounts for Capital Projects Funds and Debt Service Funds in the governmental funds balance sheet and in the governmental funds statement of revenues and expenditures. Notes to the basic Financial Statements The notes provide additional information that is essential for a full understanding of the data provided in the government-wide and fund financial statements. They are an integral part of the financial statements and should be read in conjunction with them. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of the agency's financial position. In the case of the agency, assets exceeded liabilities by$3,367,037 in fiscal year 2020 compared to a net position of$2,803,433 in fiscal year 2019. A significant portion of the agency's net position (67.4 percent) reflects its investment in capital assets, consisting mostly of infrastructure and land. The agency uses these capital assets in the redevelopment of the designated City Center Urban Renewal area and the Tigard Triangle Urban Renewal area and, as such, are not available for future spending. In fiscal year 2020 the capital assets increased by more than $1.2 million as the agency began work on the downtown universal plaza project. $1,097,208 or 32.6 percent is restricted for the payment of debt incurred by the agency. 9 Town Center Development Agency Management's Discussion and Analysis Town Center Development Agency Statement of Net Position June 30, 2020 2019 ASSETS: Cash and restricted cash $5,509,744 $ 806,890 Receivables 5,473 9,428 Capital assets, net of accumulated depreciation 4,946,534 3,740,940 Total assets 10,461,751 4,557,258 LI ABI LI TI ES: Accounts payable and other short-term liabilities 420,413 813,120 Long-term liabilities 6,674,301 940,705 Total liabilities 7,094,714 1,753,825 NET POSITION: Net investment in capital assets 2,269,829 2,020,235 Restricted for debt service 1,097,208 636,034 Unrestricted - 147,164 Total net position $3,367,037 $2,803,433 Town Center Development Agency Change in Net Position For the Year Ended June 30, REVENUES: 2020 2019 Program revenues $ 213,662 $ 107,371 General revenues 1,173,396 542,651 Total revenues 1,387,058 650,022 EXPENSES: Community development 683,178 395,110 Interest on long-term debt 140,276 28,986 Total expenses 823,454 424,096 Change in net position 563,604 225,926 Net position - beginning 2,803,433 2,577,507 Net position -ending $3,367,037 $2,803,433 10 Town Center Development Agency Management's Discussion and Analysis Capital Assets and Debt Administration Capital Assets As of June 30, 2020 the agency had invested $4,946,534 in capital assets as reflected in the following table: Governmental Activities 2020 2019 Land $ 985,504 $ 985,504 Construction in progress 2,222,691 1,257,863 Infrastructure 1,951,748 1,669,087 Accumulated depreciation (213,409) (171,514) Total $4,946,534 $3,740,940 The Town Center Development Agency purchased the 9110 SW Burnham Street property in 2014. For six years it continued the lease with Ferguson Plumbing. In March 2020 the Agency facilitated the relocation of the business to a new location, in order to prepare the site to be redeveloped as a public plaza. Landscape architects and associated consultants were engaged in February 2020 to start designing the plaza. In June 2020 the demolition of the existing building was commenced. Additional information on the agency's capital assets can be found on page 26 of this report. Debt Under the Intergovernmental Agreement(IGA) between the agency and the City of Tigard, loans from the city to the agency are repaid in ten equal payments on the principal starting ten years after the loan; however, interest payments start in the second year after the loan. In fiscal year 2019-20,the agency did receive a loan from the city in the amount of$45,596. In fiscal year 2019-2020 the city issued $5,929,000 in full faith and credit financing agreement (bonds). The bonds were issued to fund Urban Renewal projects within the agency. At June 30, 2020 the outstanding balance on the bonds was$5,929,000. Total debt increased by$5,194,596 during the current fiscal year. Additional information on the agency's debt can be found on pages 27-28 of this report. Budgetary Highlights The Town Center Development Agency budget consists of four funds: The City Center Capital Projects Fund, which functions as the agency's general operations fund for the Downtown Urban Renewal Area, and the Tigard Triangle Capital Projects Fund, which functions as the agency's general operations for the Triangle Urban Renewal Area. The agency also has a City Center Debt Service Fund and Tigard Triangle Debt Service Fund. The Capital Projects Fund activity is supported by loans from the City of Tigard and a bank loan. The city loans will be repaid with interest once the agency begins generating enough tax increment revenue. The focus of the fiscal year 2019-20 budget included construction of a public restroom, development of the Main Street and Fanno Creek public spaces and planning for future affordable housing in the downtown area. These projects are on-going and have been carried over into the fiscal year 2020-21 budget. 11 Town Center Development Agency Management's Discussion and Analysis The budget for fiscal year 2020-21 will include construction of a Fanno Creek Overlook, further construction of Universal Plaza, Main Street Green Street improvements,and Streetscape Improvements. The agency will also provide development assistance to support affordable housing in the area. The agency will further engage the District's merchants and business owners together with the Tigard Downtown Alliance to promote new businesses in the district. Economic Factors The Town Center Development Agency is an urban renewal agency approved by voters in 2006. The primary funding source for the agency is property tax increment financing, which generally means that the property taxes resulting from growth in property value within the Urban Renewal area can be used to finance improvement projects and programs. In order to facilitate the redevelopment of the Urban Renewal area, the agency adopted a City Center Urban Renewal Plan that allows the agency to incur a maximum amount of indebtedness (amount of tax increment financing for projects and programs) of $22,000,000 for a duration of 20 years. As of fiscal year 2019-20, the total debt issued is $10.4 million. Current and proposed projects include additional fagade improvement grants for local businesses, redevelopment of Main Street where it connects to Fanno Creek, completion of Tigard Street Heritage trail for improved pedestrian traffic and a proposed Universal Plaza offering more public space for events and local activities. In May 2017 the voters approved the creation of a second urban renewal area,the Tigard Triangle Urban Renewal Area,for 35 years with maximum principal indebtedness of$188 million. As of fiscal year 2019- 20,the total debt issued is$587,869. No new debt will be incurred after the fiscal year 2052-53 as part of this plan. The agency's ability to borrow additional funds will remain constrained for several more years as tax increment revenue is based on property tax increases over time and growth was fairly slow at the time the agency was created. Despite the slow growth,the agency has been able to leverage state,county and local funds to make major improvements to streets, bicycle and pedestrian paths in the district. The agency will continue to seek additional funding from outside sources for redevelopment opportunities as planning continues for affordable housing and infrastructure improvements. Requests for Information This financial report is designed to provide a general overview of the agency's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance and Information Services Director, City of Tigard, 13125 SW Hall Blvd.,Tigard, Oregon 97223. 12 This page intentionally left blank. Basic Financial Statements Town Center Development Agency Statement of Net Position June 30, 2020 Governmental Activities ASSETS: Property taxes receivable $ 3,019 Accounts receivable 2,454 Restricted cash and cash equivalents 5,509,744 Land and construction in progress 3,208,195 Other capital assets, net of accumulated depreciation 1,738,339 Total assets 10,461,751 LIABILITIES: Accounts payable and other accrued liabilities 179,413 Due within one year: Bank loan payable 241,000 Due within more than one year: Advances from city 986,301 Bonds payable 5,688,000 Total liabilities 7,094,714 NET POSITION: Net investment in capital assets 2,269,829 Restricted for debt service 1,097,208 Total net position $ 3,367,037 The accompanying notes are an integral part of the basic financial statements. 16 Town Center Development Agency Statement of Activities Year Ended June 30,2020 Net (Expense)/Revenue Program and Change in Net Revenues Position Rental Income and Total Charges for Governmental Functions/Programs Expenses Services Activities Governmental activities: Community development $ 683,178 $ 213,662 $ (469,516) Interest on long-term debt 140,276 - (140,276) Total governmental activities $ 823,454 $ 213,662 (609,792) General revenues: Property taxes 1,052,373 Interest earnings 49,806 Miscellaneous 71,217 Total revenues 1,173,396 Change in net position 563,604 Net position - beginning 2,803,433 Net position -ending $ 3,367,037 The accompanying notes are an integral part of the basic financial statements. 17 Town Center Development Agency Balance Sheet-Governmental Funds and Reconciliation to the Statement of Net Position June 30,2020 Total Capital Debt Governmental Projects Service Funds ASSETS: Property taxes receivable $ - $ 3,019 $ 3,019 Accounts receivable - 2,454 2,454 Restricted cash and cash equivalents 4,311,719 1,198,025 5,509,744 Total assets $ 4,311,719 $ 1,203,498 $ 5,515,217 LIABILITIES: Accounts payable and accrued liabilities $ 179,413 $ - $ 179,413 Total liabilities 179,413 - 179,413 DEFERRED INFLOWS OF RESOURCES: Unavailable revenues-property taxes - 11,600 11,600 Total deferred inflows of resources - 11,600 11,600 FUND BALANCES: Restricted for: Debt service - 1,191,898 1,191,898 Urban development and improvements 4,132,306 - 4,132,306 Total fund balances 4,132,306 1,191,898 5,324,204 Total liabilities,deferred inflows of resources and fund balances $ 4,311,719 $ 1,203,498 Capital assets used in governmental activities are not financial resources and are not reported in the funds. 4,946,534 Long-term assets are not available to pay for current period expenditures and, 11,600 Long-term liabilities-not reported in the funds: Loan from City of Tigard, not due and payable in the current period (986,301) Bonds, not due and payable in the current period (5,929,000) Net Position of Governmental Activities $ 3,367,037 The accompanying notes are an integral part of the basic financial statements. 18 Town Center Development Agency Statement of Revenues,Expenditures and Changes in Fund Balance-Governmental Funds and Reconciliation to the Statement of Activities Year Ended June 30,2020 Total Capital Debt Governmental Projects Service Funds REVENUES: Taxes $ - $1,047,495 $ 1,047,495 Rental revenues 54,202 - 54,202 Interest earnings 35,439 14,367 49,806 Intergovernmental revenues 230,460 - 230,460 Miscellaneous revenues 217 - 217 Total revenues 320,318 1,061,862 1,382,180 EXPENDITURES: Community Development 606,179 - 606,179 Capital projects 1,282,593 - 1,282,593 Debt service Principal - 780,000 780,000 Interest - 140,276 140,276 Total expenditures 1,888,772 920,276 2,809,048 Change in fund balance before other financing sources(uses) (1,568,454) 141,586 (1,426,868) Other financing sources(uses): Transfers in 359,000 - 359,000 Transfers out - (359,000) (359,000) Debt Proceeds 5,194,596 780,000 5,974,596 Total other financing sources(uses) 5,553,596 421,000 5,974,596 Change in fund balance 3,985,142 562,586 4,547,728 Fund balance-beginning 147,164 629,312 776,476 Fund balance-ending $ 4,132,306 $1,191,898 $ 5,324,204 Net change in fund balances-total governmental funds $ 4,547,728 Governmental funds report capital outlays as expenditures while govermental activities report depreciation expense to allocate thoses expenditures over the life of the assets. Expenditures for capitalized assets 1,247,489 Depreciation reported in the government-wide statements (41,895) Property taxes that do not provide current financial resources 4,878 Long-term liabilities not reported in the funds (5,974,596) Principal payments expensed on the fund financial statements 780,000 Change in Net Position of Governmental Activities $ 563,604 The accompanying notes are an integral part of the basic financial statements. 19 Notes to Basic Financial Statements Town Center Development Agency Notes to the Basic Financial Statements 1. Summary of Significant Accounting Policies: The financial statements of the Town Center Development Agency(agency), previously Tigard City Center Development Agency, have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. GAAP statements include all relevant Governmental Accounting Standards Board (GASB) pronouncements. The Agency The Town Center Development Agency,formerly the City Center Development Agency, was approved on May 16, 2006 with plans to commence operations during fiscal year 2009 under the provisions of Oregon Revised Statutes, Chapter 457 (ORS 457), to provide improvements in the downtown area so that it will be economically healthy while maintaining its"uniquely Tigard" character.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 Tigard Triangle Urban Renewal Area,for 35 years with maximum indebtedness of$188 million. The agency is a legally separate entity, which is governed by a board comprised of the City Council, as stipulated in the bylaws. The Council has the ability to impose its will on the agency as determined on the basis of budget adoption,taxing authority, and funding. The purpose of the agency is to undertake urban renewal projects and activities pursuant to the city's downtown redevelopment plan. The financial results of the agency are reported herein as debt service funds and a capital projects funds. The agency boundaries include primarily the city's central business district, general commercial district, professional commercial district and the Tigard Triangle (an area bordered by 1-5, Highway 217, and Highway 99 East). The agency is a blended component unit of the City of Tigard and its financial activities are included in the basic financial statements of the city, which can be viewed on the city's website at http://www.tigard-or.gov. Basic Financial Statements The agency's financial operations are presented at both the government-wide and fund financial levels. All activities of the agency are categorized as governmental activities. Government-wide financial statements The Statement of Net Position and the Statement of Activities display information about the agency as a whole. These statements include all the financial activities of the agency. The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the agency's governmental activities. Direct expenses are clearly identifiable with a specific function. All costs are supported by general revenues which include property taxes and interest earnings. 22 Town Center Development Agency Notes to the Basic Financial Statements Fund financial statements These 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 and fiduciary. Currently the agency has only governmental fund types. Basis of Presentation The financial transactions of the agency 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 balance, revenues and expenditures. GASB Statement No. 34 sets forth 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. For purposes of presentation, each of the agency's funds is presented as a major fund. The City Center Debt Service Fund accounts for the accumulation of resources and payments for long- term borrowings related to the City Center Urban Renewal Area. The Tigard Triangle Debt Service Fund accounts for the accumulation of resources and payments for long- term borrowings related to the Tigard Triangle Urban Renewal Area. The City Center Capital Projects Fund accounts for the acquisition and development of capital assets related to the City Center Urban Renewal Area. The Tigard Triangle Capital Projects accounts for the acquisition and development of capital assets related to the Tigard Triangle Urban Renewal Area. 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, regardless of the measurement focus. The government-wide financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded as program revenues when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of 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 agency considers revenues to be available if they are collectible within 60 days of the end of the current fiscal period. The agency considers property taxes subject to accrual. Expenditures 23 Town Center Development Agency Notes to the Basic Financial Statements generally are recorded when a liability is incurred, as under accrual accounting. However, payment on long-term borrowing is recorded only when payment is due. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government-wide statements, reconciliation is necessary to explain the adjustments needed to transform the fund-based financial statements into the government-wide presentation. These reconciliations are presented with the governmental fund statements. Cash and Investments The city maintains a common cash and cash equivalents pool for all city funds, including funds of the agency. Interest is earned and allocated monthly on pooled cash and cash equivalents based on each fund's cash balances as a proportion of the city's total pooled cash and equivalents. The agency considers cash and equivalents to include the pooled cash, since the pool has the general characteristics of a demand deposit account, in that any participating fund may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty. The agency reports certain cash and equivalents as restricted because their use is limited by parties external to the agency. Restrictions may be imposed by creditors, other governments, laws and/or enabling legislation. Receivables and Payables 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 majority of the agency's receivables are property taxes, which are deemed to be substantially collectible. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g. roads, pathways, street lights, etc.) are reported in the government-wide financial statements. Capital assets are charged to expenditures as purchased or constructed in the governmental fund statements, and capitalized in the government-wide financial statements. Capital assets are recorded at historical cost or estimated historical cost. Upon disposal of an asset, cost and accumulated depreciation (if applicable) is removed from the accounts and, if appropriate, a gain or loss on the disposal is recognized. Capital assets are defined for the agency 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. Donated capital assets are recorded at their estimated acquisition value at the time of donation. Other costs for repairs and maintenance are expensed as incurred. 24 Town Center Development Agency Notes to the Basic Financial Statements Depreciation on exhaustible assets is calculated on the straight-line basis over the following estimated useful lives: Asset Years Buildings and improvements 25-40 Improvements other than buildings 10-20 Infrastructure 20-40 Deferred Inflows of Resources In addition to liabilities, the governmental fund balance sheet reports a separate section for deferred inflows of resources. Deferred inflows of resources represent unavailable revenue that will be recognized in a future period. The agency reports delinquent property tax revenue in this section under the modified accrual basis of accounting. These revenues are deferred and recognized as an inflow of resources in the period that the revenues become available. Net Position and Fund Balance Net position is reported on the Statement of Net Position. Within net position, the net investment in capital assets represents total capital assets less accumulated depreciation, less any debt related to the acquisition of the assets. Of the total net position,the majority is net investment in capital assets and the remaining amount is restricted for debt service. In the fund financial statements, the fund balance for governmental funds is reported in classifications that comprise a hierarchy 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. Fund balance is reported as restricted when the constraints placed on the use of resources are either: (a) externally imposed by creditors (such as through debt covenants), grantors, contributors or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Use of Estimates In preparing the agency'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. 2. Stewardship, Compliance, and Accountability: Budgets The agency's budget is prepared in accordance with Oregon local budget law. All annual appropriations lapse at fiscal year-end. During the month of February each year, the agency submits requests for appropriations to the executive director so that a budget may be prepared. In June,the proposed budget is presented to the agency's board of directors for approval. The board holds public hearings and a final budget must be prepared and adopted no later than June 30. 25 Town Center Development Agency Notes to the Basic Financial Statements The adopted budget is prepared by fund and function. The legal level of budgetary control,(i.e.,the level at which expenditures may not legally exceed appropriations) is the fund and function level. 3. Cash and Investments: The agency's cash and investments reported on the Statement of Net Position and Balance Sheet represent the agency's share of the city's cash and investment pool. The agency's participation in the cash and investment pool is involuntary. Interest earnings from this pool are allocated to the agency on a monthly basis based on the cash and investment balance of the agency to the total investments in the pool. At June 30, 2020 the agency's share of the city's cash and investment pool, including restricted and unrestricted, totaled $5,509,744 all of which is restricted by the requirements of the agency's property tax levy. It is not practical to determine the investment risk, collateral risk or insurance coverage for the agency's share of its pooled investments. Investments for the city as well as its component unit are reported at fair value. Information about the pooled investments is included in the city's annual financial report and may be obtained by contacting the city's Finance Department at 13125 SW Hall Blvd.,Tigard, OR 97223 or found online at: http://www.tigard-or.gov/city hall/finance and information services.php 4. Receivables and Payables: 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 agency's receivables, including property taxes and assessments are deemed to be substantially collectible. Tax and assessments receivable can be recovered through foreclosure on the subject property. Accounts payable to vendors and contractors include general accounts payable not included in short-term or long-term liabilities. S. Capital Assets: Capital assets include a property purchase for redevelopment projects on Main Street, the completion of two projects for the Strolling Street landscaping program, Main Street gateway improvements and public artwork. Balance Balance July 1,2019 Additions Deletions Transfers June 30,2020 Land $ 985,504 $ - $ - $ - $ 985,504 Construction in Progress 1,257,863 1,247,489 - (282,661) 2,222,691 Infrastructure 1,669,087 - - 282,661 1,951,748 Total cost 3,912,454 1,247,489 - - 5,159,944 Depreciation Infrastructure (171,514) (41,895) - - (213,409) Capital assets, net $ 3,740,940 $ 1,205,594 $ - $ - $ 4,946,534 26 Town Center Development Agency Notes to the Basic Financial Statements 6. Long-term Borrowing: The agency has two urban renewal district areas approved to finance improvement projects with property tax increment financing. The first area is the City Center Urban Renewal District (CCUR) with a maximum indebtedness of $22 million for a duration of 20 years. As of fiscal year 2019-20, the CCUR issued $10.4 million in total debt against the maximum indebtedness. The second area is the Tigard Triangle Urban Renewal District (TTUR) with a maximum indebtedness of$188 million for a duration of 35 years. As of fiscal year 2019-20, the TTUR issued $588,000 in total debt against the maximum indebtedness. In order to finance improvement projects, the agency and the city entered into an intergovernmental agreement (IGA) that states the city will loan the agency resources as needed to cover project costs related to the Town Center Urban Renewal Plan. All of the outstanding debt of the agency is considered from direct borrowings and placements. The terms of the IGA state that the agency agrees to repay the principal and accrued interest on all loan amounts solely from tax increment revenues. The interest rate calculated for the loans is based on the same average rate as that earned on other funds invested by the city at the time of the loan, which currently ranges from 0.50%to 2.75%. Interest-only payments are scheduled to be paid to the city prior to July 1, each fiscal year. During the fiscal year ending June 30, 2025 the agency will begin making principal payments to the city on outstanding loans. Payments are to be made as tax increment revenue or other funding sources are available. In no case shall the repayment timeline exceed the life of the agency. Under the terms of the IGA, the city may forgive or reduce the interest and/or principal due from the agency. The agency may also repay the debt early. In fiscal year 2020 the agency received a loan from the city in the amount of $45,596 for the Tigard Triangle Capital Projects fund. In fiscal year 2020 the agency elected to repay none of the outstanding principal on the loans. In fiscal year 2015 the city received a $1,300,000 loan, borrowed at 3.00% and backed by the city's full faith and credit and taxing power, from a financial institution to finance a property purchase within the TCDA. 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. This agreement states the agency will make the payments on the bank loan to the financial institution from the tax increment revenues pursuant to ORS 287A.310. The IGA constitutes indebtedness of the agency in the amount of the financing or $1,300,000. 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, at a default rate of 3% of the outstanding balance until the default is remedied. As of June 30, 2020, the bank loan had been paid off. In fiscal year 2019-2020 the city issued full faith and credit financing agreement (bonds) for$1,896,000 in Series 2019A Tax-Exempt bonds, and $4,033,000 Series 2019B Federally Taxable bonds. The bonds were issued to fund Urban Renewal projects within the CCDA. In connection with the financing agreement, CCDA and the city executed an intergovernmental agreement(IGA)for CCDA to be obligated for the debt service payments on the bonds. The IGA constitutes indebtedness of the agency in the amount of the financing or$5,929,000. Pursuant to ORS 287A.310,the agency pledges the tax increment revenues to pay the financing payments or debt service.The outstanding bonds carry an Event of Default clause which allows the lender to exercise any remedy available at law or in equity, with the exception 27 Town Center Development Agency Notes to the Basic Financial Statements of acceleration. At June 30, 2020 the outstanding balance on the bonds was $1,896,000 for the Series 2019A and $4,033,000 for the Series 201913. Future principal and interest payments on the bonds and the city loans are as follows: Borrowing Transactions Interest Outstanding Outstanding Due in Outstanding Debt June 30,2019 Additions Paid June 30,2020 Paid one year Loans from City of Tigard for urban renewal projects: Loan#5 June 30,2013 $ 102,320 $ - $ - $ 102,320 $ 512 $ - Loan#5 June 30,2013 40,112 - - 40,112 201 - Loan#6 June 30,2014 361,000 - - 361,000 1,949 - Loan#7 June 30,2015 254,000 - - 254,000 1,270 - Loan#8 June 30,2019 183,273 - - 183,273 - - Loan#9 June 30,2020 - 45,596 - 45,596 - - Bank loan payable 780,000 - (780,000) - 11,427 - 2019A Bonds with Key Bank - 1,896,000 - 1,896,000 33,808 80,000 2019B Bonds with Key Bank - 4,033,000 - 4,033,000 91,110 161,000 Total $ 1,720,705 $5,974,596 $(780,000) $ 6,915,301 $140,277 $241,000 Future requirements related to long-term borrowing are as follows: Fiscal Year Loans from City Key Bank Bonds Totals Ending June 30 Principal Interest Principal Interest Principal Interest 2021 $ - $ 8,972 $ 241,000 $ 165,332 $ 241,000 $ 174,304 2022 - 9,428 248,000 158,630 248,000 168,058 2023 - 9,428 254,000 151,732 254,000 161,160 2024 - 9,428 262,000 144,666 262,000 154,094 2025 13,926 9,428 269,000 137,374 282,926 146,802 2026-2030 348,832 43,426 1,461,000 570,268 1,809,832 613,694 2031-2035 471,829 28,919 3,194,000 302,668 3,665,829 331,587 2036-2040 146,948 9,286 - - 146,948 9,286 2041 4,766 48 - - 4,766 48 $986,301 $128,363 $5,929,000 $1,630,670 $6,915,301 $1,759,033 7. Risk Management: As a component unit of the city, the agency is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;errors and omissions;and natural disasters for which the city carries commercial insurance. The city has established risk management programs for liability insurance coverage. The agency is covered under policies and programs insuring the city. There were no insurance claims attributable to the agency as of June 30, 2020. 28 This page intentionally left blank. 29 Required Supplementary Information Town Center Development Agency City Center Capital Projects Fund Schedule of Revenues and Expenditures- Budget and Actual For the fiscal year ended June 30, 2020 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Over(Under) REVENUES: Intergovernmental revenues $ - $ - $ 159,460 $ 159,460 Rental revenues - - 54,202 54,202 Interest Earnings - - 35,439 35,439 Miscellaneous revenues - - 217 217 Total revenues - - 249,318 249,318 EXPENDITURES: Capital projects 1,657,500 1,790,255 1,413,176 377,079 Change in fund balance before other financing sources (uses) (1,657,500) (1,790,255) (1,163,858) 626,397 OTHER FINANCING SOURCES: Transfers in 533,000 654,000 - (654,000) Debt proceeds 6,208,000 6,208,000 5,149,000 (1,059,000) Total other financing sources 6,741,000 6,862,000 5,149,000 (1,713,000) Change in fund balance 5,083,500 5,071,745 3,985,142 (1,086,603) Fund balance- Beginning of the year 390,050 401,805 147,164 (254,641) Fund balance- End of the year $ 5,473,550 $ 5,473,550 $ 4,132,306 $ (1,341,244) 32 Town Center Development Agency Tigard Triangle Capital Projects Fund Schedule of Revenues and Expenditures- Budget and Actual For the fiscal year ended June 30, 2020 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Over(Under) REVENUES: Intergovernmental revenues $ 325,000 $ 325,000 $ 71,000 $ (254,000) EXPENDITURES: Community development 683,000 683,000 475,596 207,404 Capital projects* 1,000 1,000 - 11000 Total expenditures 684,000 684,000 475,596 208,404 Change in fund balance before other financing sources (uses) (359,000) (359,000) (404,596) (45,596) OTHER FINANCING SOURCES: Transfers in 359,000 359,000 359,000 - Debt Proceeds - - 45,596 45,596 Total other financing sources 359,000 359,000 404,596 45,596 Change in fund balance - - - - Fund balance- Beginning of the year - - - - Fund balance- End of the year $ - $ - $ - $ - *For budgetary purposes expenditures are appropriated as capital projects, however on the GAAP statements non-capital transactions are recorded as program expenditures. 33 Other Supplementary Information Town Center Development Agency City Center Debt Service Fund Schedule of Revenues and Expenditures-Budget and Actual For the fiscal year ended June 30, 2020 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Over(Under) REVENUES: Property taxes $ 560,000 $ 560,000 $ 586,810 $ 26,810 Interest earnings 11,100 11,100 10,090 (1,010) Total revenues 571,100 571,100 596,900 25,800 EXPENDITURES: * Debt service: Principal 780,000 780,000 780,000 - Interest 231,350 231,350 140,276 91,074 Total expenditures 1,011,350 1,011,350 920,276 91,074 Change in fund balance before other financing sources (uses) (440,250) (440,250) (323,376) 116,874 OTHER FINANCING USES Debt proceeds 792,000 792,000 780,000 12,000 Transfers out (153,000) (274,000) - 274,000 Reserve for future expenditure (346,750) (346,750) - 346,750 Total other financing sources (uses) 292,250 171,250 780,000 632,750 Change in fund balance (148,000) (269,000) 456,624 749,624 Fund balance- Beginning of the year 148,000 269,000 629,312 360,312 Fund balance- End of the year $ - $ - $ 1,085,936 $ 1,109,936 * Budget appropriation for the Urban Renewal Agency is made at the debt service program level. 36 Town Center Development Agency Tigard Triangle Debt Service Fund Schedule of Revenues and Expenditures- Budget and Actual For the fiscal year ended June 30, 2020 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Over(Under) REVENUES: Property taxes $ 293,000 $ 293,000 $460,685 $ 167,685 Interest earnings - - 4,277 4,277 Miscellaneous revenues - - - - Total revenues 293,000 293,000 464,962 171,962 EXPENDITURES: * Debt service: Principal - - - - Interest 9,000 9,000 - 9,000 Total expenditures 9,000 9,000 - 9,000 Change in fund balance before other financing sources (uses) 284,000 284,000 464,962 180,962 OTHER FINANCING SOURCES(USES) Transfers out (359,000) (359,000) (359,000) - Reserve for future expenditure (25,000) (25,000) - 25,000 Total other financing sources (uses) (384,000) (384,000) (359,000) 25,000 Change in fund balance (100,000) (100,000) 105,962 205,962 Fund balance- Beginning of the year 100,000 100,000 - (100,000) Fund balance- End of the year $ - $ - $105,962 $ 105,962 * Budget appropriation for the Urban Renewal Agency is made at the debt service program level. 37 INDEPENDENT AUDITOR'S REPORT REQUIRED BY OREGON STATE REGULATIONS lin 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 Board Members Town Center Development Agency (A component unit of the City of Tigard, Oregon) Tigard, Oregon We have audited the basic financial statements of the Town Center Development Agency, a component unit of the City of Tigard, Oregon (the Agency), as of and for the year ended June 30, 2020, and have issued our report thereon dated December 3, 2020. 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 Agency'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 Assets, None Noted 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 162-010-0300 Investments None Noted 162-010-0310 Public Contracts and Purchasing None Noted 162-010-0320 Other Comments and Disclosures None Noted 40 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 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 Agency'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 Agency's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Agency'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 Agency'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 Agency'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 Agency's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. �Wc4wz- James C. Lanzarotta, Partner for Moss Adams LLP Portland, Oregon December 3, 2020 41 i. •4••1 •• y' _ •a L f, 1 ., 1• 4 } S4 .x .it �.. w f•; � � *` .h• r { � 444 { •� • MOSSADAMS City of Tigard i4 -•� Y f A,M - ' -t GovernanceCommunication with Those Charged with 1 December 8, 2020 .• i ' �. r J •' •f '� L`�� ?�; � 'fes � i IC Agenda - - R J Engagement Team Nature of Services Provided 3. Audit Process . - f r Auditor Opinions / Reports 5. Required Communications h Best Practices Upcoming Accounting Standards Engagement Team Jim Lanzarotta, CPA, Partner JAMES.LANZAROTTA MOSSADAMS.COM (541 ) 225-6070 Amanda McCleary-Moore, _ Concurring Reviewer AMANDA.MCC LEARY-M OO RE(&-MOSSADAMS.COM (541 ) 732-3865 Keith Simovic, Senior Manager KEITH.SIMOVIC(c-MOSSADAMS.COM (503) 478-2284 Iii Harvey Wang, Manager HARVEY.WANG(&-MOSSADAMS.CON (503) 478-2135 ' t 1 Independent Auditors' Report on the Assistance with, and technical government wide and fund financial G review of the City's CAFR for statements of the City of Tigard. compliance with GAAP as well as GFOA Certificate of Excellence requirements ® Report of Independent Auditors' on Disclosures and Independent Internal Control Over Financial � Auditors' Comments Required by the Reporting and on Compliance in Minimum Standards for Audits of Accordance with Government Oregon Municipal Corporations Auditing Standards Independent Auditors' Report on the government wide and fund financial Communication to Those Charged statements of the Town Center with Governance Development Agency Audit Process 0'1�4 Internal Controls Analytical Procedures . Procedures 5 - Includes IT - Revenue and expenses -Confirm account balances - Revenues / cash receipting -Trends, comparisons, and -Vouch to supporting -Cash disbursements expectations documentation - Payroll - Representations from -Capital assets attorneys and management - Financial close & reporting - Examine objective evidence Audit response t VID o CO Audit performed in a remote environment Utilized technology and electronic audit tools Updated risk assessments Internal controls testing of transactions before and after COVID /� Review of the related disclosures for transparency Audit Opinion/ Reports Government Oregon Financial Auditing Minimum Audit Single Audit Statements Standards Standards Report Report Report Unmodified No findings No findings To be completed (clean) opinion on financial —federal audit statement guidance to be released in December 2020 Required Communication Auditor's responsibility under auditing standards Significant accounting policies Management judgments & accounting estimates Audit adjustments — see following slide Managements consultation with other accountants 8 No disagreements with management No difficulties in performing the audit Audit observations and recommendations — No material weaknesses noted Required Audit Communications Audit Adjustments Amount None noted Passed Adjustments Amounts To record a loss on refunding — 2011 library refunding $214,000 bonds 11 Findings and Best Practices Key Recommendations — Discussed with Audit Committee • Utility billing • Review access periodically to ensure only authorized individuals can change rates in the billing system • IT User Access Review user access rights to ensure current listing of active users is 10 updated and no unauthorized access or segregation of duties issues exist. • Lake Oswego Tigard Water Partnership • Recommend establishing a governing agreement to clearly stipulate ownership of the assets, responsibilities for future maintenance and repair costs, etc. Audit Issues — NEVA ACCOUNTING i PRONOUNCEMENTS � Effective Date New Standards GASB 95 — Postponement of Effective Dates Adopted GASB 84 — Fiduciary Activities Period beginning after 12/15/19 GASB 87 — Leases Period beginning after 6/15/21 GASB 90 — Majority Equity Interest Period beginning after 12/15/19 GASB 91 — Conduit Debt Obligations Period beginning after 12/15/21 11 GASB 93 — Replacement of LIBOR Period beginning after 6/15/21 GASB 94 — Public-private partnerships Period beginning after 6/15/22 GASB 96 — Subscription-based IT arrangements Period beginning after 6/15/22 GASB 97 — Certain Component Unit Criteria Period beginning after 6/15/21 Other GASB Projects Financial Reporting Model Revenue & Expense Recognition Acknowledgements Thank you Toby LaFrance, Jared Isaksen, Amy Lawson, and their staff for their excellent facilitation of the audit process. The audit progressed on time and in an orderly fashion; all requested schedules and draft financial statements were received on a timely basis. 12 All personnel across all departments were courteous, responsive, and fulfilled all our requests in a timely manner. `Tone at the Top' and attitude from management was one of helpfulness, candor, and openness in response to audit requests and discussion points. Contact Us - - t j f. J !H O ,I: U O � - 13 + Jim Lanzarotta + Amanda McCleary- + Keith Simovic Moore jim.lanzarotta(a-) Amanda.mccleary- Keun.simovic(& mossadams.com mooreP mossadams.com (541) 225-6070 mossadams.com (503) 478-2284 (541) 732-3865 - x x + - x x x x x x + - x x + - x x + - x x + - x x + - x x + x x + - x x + -- x x + -- x x + - x x + - x x + - x x + - x x + - x x + - x + - x x + - x x + - x x + - x x + - x x + - x x + - x x + - x x + - x + - x x + - x :< + - x :< + - x x + - x x + - x x + - x x + - x x + - x + + + + x / x x - x x - x x - x x - x i� MOSSADAMS + - x x + - x x + - x x + - x + x x + - x x + - x x + - x x + - x x Thank AIS-4438 6. Workshop Meeting Meeting Date: 12/15/2020 Length (in minutes): 5 Minutes Agenda Title: Consider a Resolution to Appoint Audit Committee Members Prepared For: Liz Lutz, Finance and Information Services Submitted By: Liz Lutz, Finance and Information Services Item Type: Resolution Meeting Type: Council Workshop Mtg. Public Hearing: No Publication Date: Information ISSUE Consider a resolution to appoint Elizabeth Gils Carbo, Darlene Dick and Fiona Howell Earle as members of the Audit Committee. STAFF RECOMMENDATION / ACTION REQUEST Staff recommends approval of the resolution. KEY FACTS AND INFORMATION SUMMARY To promote this volunteer opportunity, advertising was done by the city's Communications Division using an assortment of media for outreach, including: •Promoted to the Community Roundtable (60 non-profit and faith-based leaders) •Featured in `Somos Tigard' Facebook group. (139 group members) •Highlighted board openings in a Tigard Life ad and Mayor's Corner •Followed up with the 31 applicants who were not selected for the Public Safety Advisory Board. •Promoted to 23,800 Nextdoor connections, 7,122 Twitter followers, 2,843 Instagram followers, and 8,102 Facebook followers. •Spotlighted multiple times in Cityscape (29,111 subscribers) and Recreation newsletter. •Posted on the City Hall reader board for seven days. Selection of the nominees was determined by Councilors Newton and Lueb through virtual interviews on November 5, 2020. There are three highly qualified applicants for the three vacant spots on the Audit Committee. Councilor Lueb and Councilor Newton recommended Elizabeth Gils Carbo be re-appointed to a three-year term voting position beginning January 1, 2021, ending December 31, 2023, and recommended Darlene Dick and Fiona Howell Earle for the two-year voting positions on the audit committee, beginning on January 1, 2021 and ending on December 31, 2022. OTHER ALTERNATIVES The City Council could choose not to appoint the recommended residents and instruct staff to undertake another recruitment. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Resolution CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO 20- A RESOLUTION APPOINTING ELIZABETH GILS CARBO, DARLENE DICK AND FIONA HOWELL EARLE AS VOTING MEMBERS TO THE AUDIT COMMITTEE. WHEREAS, three positions are open on the city's audit committee; and WHEREAS, Councilor Lueb and Councilor Newton conducted an interview of 3 candidates on November 5, 2020 for the Audit Committee; and, WHEREAS, they have recommended that the three candidates, Elizabeth Gils Carbo, (incumbent), Darlene Dick and Fiona Howell Earle be appointed to the city's Audit Committee as voting members- replacing Stephanie Veal,Larry Acheson and Elizabeth Gils Carbo whose terms end December 31, 2020; and, WHEREAS, Elizabeth Gils Carbo will serve an additional three-year term; and, WHEREAS, Darlene Dick and Fiona Howell Earle will serve two-year terms. NOW,THEREFORE, BE IT RESOLVED by the Tigard City Council that: SECTION 1: Elizabeth Gils Carbo is re-appointed to the Audit Committee to a three- year term, ending on December 31, 2023 and that Darlene Dick and Fiona Howell Earle be appointed to two-year terms of the Audit Committee, ending on December 31, 2022. SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of 2020. Mayor- City of Tigard ATTEST: Deputy City Recorder- City of Tigard RESOLUTION NO. 20- Page 1 AIS-4443 7. Workshop Meeting Meeting Date: 12/15/2020 Length (in minutes): 5 Minutes Agenda Title: Consider a Resolution to Appoint Town Center Advisory Commission Members Prepared For: Sean Farrelly, Community Development Submitted By: Joe Patton, Community Development Item Type: Resolution Meeting Type: Council Business Meeting - Main Public Hearing: No Publication Date: Information ISSUE Appoint Town Center Advisory Commission Members. STAFF RECOMMENDATION / ACTION REQUEST Staff recommends approval of a resolution reappointing Scott Hancock, Tom Murphy, Ryan Ruggiero, and appointing Chris Sjolin, Adrian Hinckley and Derrick Wright as voting members, appointing Chris Cach and Kris Mitchell as non-voting alternate members, and reappointing Justin Watson as a non-voting ex-officio member of the Town Center Advisory Commission. KEY FACTS AND INFORMATION SUMMARY The Town Center Advisory Commission (ICAC) is the advisory body to the Town Center Development Agency on urban renewal issues. The Town Center Advisory Commission has five voting positions with terms that expire on December 31, 2023 and one voting position with a term that expires on December 31, 2021, caused by the resignation of Angeline Chong. There are also up to two non-voting alternate positions and up to two non-voting ex-officio positions with terms that expire on December 31, 2021. The Mayor's Appointment Advisory Committee recommended that Scott Hancock, Tom Murphy and Ryan Ruggiero be reappointed and Chris Sjolin and Adrian Hinkley appointed as voting members to fill terms that expire December 31, 2023; that Derrick Wright be appointed as a voting member to fill a term that expires on December 31, 2021; that Chris Cach and Kris Mitchell be appointed as non-voting alternate members to fill terms that will expire December 31, 2021; and that Justin Watson be appointed as a non-voting ex-officio member to fill a term that will expire December 31, 2021. Attachment 1 is a Resolution appointing the recommended candidates. Attachment 2 has biographical information on all recommended appointees It's important to Community Development that we connect with the full diversity of our community including those from various backgrounds, languages, age groups, abilities, and education levels. To accomplish these goals, we had an extensive recruitment process that reached out to ALL members of our community. The Town Center Advisory Commission actively recruited members in both English and Spanish and reached out to underserved community groups. The result being eighteen total applicants, fifteen of whom chose to interview. Nine of those interviewed have not previously served on a Tigard board or committee. Through a rigorous interview process five new appointees were chosen out of those we interviewed with four current members reappointed. We will continue to push for a range of diverse voices on our boards and committees. OTHER ALTERNATIVES Council could decide to not approve some, or all, of the recommendations. This would necessitate reopening the recruitment. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS 2019-2021 Tigard City Council Goals Goal 4: Enhance two-way communication to understand community priorities and involve the community in the decision-making process. DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Resolution Bios CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 20- A RESOLUTION REAPPOINTING SCOTT HANCOCK, TOM MURPHY AND RYAN RUGGIERO AND APPOINTING ADRIAN HINCKLEY, CHRIS SJOLIN AND DERRICK WRIGHT AS VOTING MEMBERS OF THE TOWN CENTER ADVISORY COMMISSION, CHRIS CACH AND KRIS MITCHELL AS NON-VOTING ALTERNATE MEMBERS AND JUSTIN J. WATSON AS A NON-VOTING EX OFFICIO MEMBER. WHEREAS, there currently exists six vacancies for voting members, up to two vacancies for non- voting alternate members and up to two non-voting ex officio members of the Town Center Advisory Commission; and WHEREAS, the Mayor's Appointment Advisory Committee recommends that Council reappoint Scott Hancock, Tom Murphy and Ryan Ruggiero and appoint Adrian Hinckley, Chris Sjolin and Derrick Wright as voting members;and WHEREAS, the Mayor's Appointment Advisory Committee recommends that Council appoint Chris Cach and Kris Mitchell as non-voting alternate members; and WHEREAS, the Mayor's Appointment Advisory Committee recommends that Council reappoint Justin Watson as non-voting ex officio member. NOW,THEREFORE, BE IT RESOLVED by the Tigard City Council that: SECTION 1: Scott Hancock,Tom Murphy and Ryan Ruggiero are reappointed andAdrian Hinckley and Chris Sjolin are appointed as voting members to fill terms that expire December3l,2023 and Derrick Wright is appointed as a voting member to fill a term that expires December 31,2021. SECTION 2: Chris Cach and Kris Mitchell are appointed as non-voting alternate members to fill terms that will expire December 31,2021. SECTION 3: Justin Watson is reappointed as non-voting ex officio member to fill a term that will expire December 31,2021. SECTION 4: This resolution is effective immediatelyupon passage. PASSED: This day of 2020. Mayor- City of Tigard ATTEST: Deputy City Recorder- City of Tigard RESOLUTION NO. 20- Page 1 TOWN CENTER ADVISORY COMMISSION RECOMMENDED APPOINTEES BIOGRAPHICAL INFORMATION On December 15, 2020, the Tigard City Council will consider a Resolution to reappoint Scott Hancock,Tom Murphy, and Ryan Ruggiero and appoint Chris Sjolin,Adrian Hinckley and Derrick Wright as voting members, appointing Chris Cach and Kris Mitchell as non-voting alternate members, and reappointing Justin Watson as a non-voting ex-officio member of the Town Center Advisory Commission. Below are candidate provided biographies. Chris Cach has lived in Tigard for 56 years and owns commercial property on Main Street. He works as a construction supervisor. He has previously been a member of the Tigard Downtown Alliance. Ralph "Scott" Hancock is a retired Chief Electrical Inspector for Washington County and retired Command Master Chief with the United States Navy. He has lived in Tigard for fourteen years. He is completing his first term with the TCAC. His previous volunteer experience includes two terms on the Tigard Library Board,including as board Chair; the Tigard Triangle Citizen Advisory Council and a Tigard Library Volunteer. He also volunteered at the Portland, Oregon VA Hospital (until COVID.) Adrian Hinkley is a resident of and has been a small business owner in Tigard for the last four years. He is a proud father of two incredible boys, both at Tigard High School and recently celebrated 17 years of marriage to his beautiful wife Corry. Over the last 4 years Adrian has helped both the Chamber of Commerce and the City of Tigard with a couple different projects including the organization of Downtown Street Fair and the recent launch of Los Empresarios de Tigard. Kris Mitchell has lived in Tigard for 1.5 years and is the sole proprietor of ADHD Stride. She was previously the SVP & GM of ShiftWise. She is a parent of students at Templeton Elementary and Twality Middle School. She has volunteered at Westside Gymnastics,AID Walk and a variety of other organizations. Tom Murphy has been a Tigard resident since 1994. He was an attorney in private practice for 40 years, 29 of which were spent with a firm in downtown Tigard,before retiring in 2018. He was a member of the City Center Advisory Commission, back in the days when Tigard had only one urban renewal district, for seven years. He is completing his first term on TCAC. Ryan Ruggiero has lived in the downtown Tigard vicinity with his family since 2015 and is completing his first term on the TCAC. A landscape architect and ecologist by training, he is the Senior Conservation Real Estate Specialist with Parks and Nature at Metro Regional Government. As residents of Greenburg right off downtown,he and his family enjoy being able to walk to the many things that make downtown an asset to the community. Chris Sjolin is the founder,brewer and general manager of Cooper Mountain Ale Works on Main Street. He spent the last 20 years in the software industry, first in northern California focused on pharmaceutical and biotechnology process improvement software, and more recently in Portland working at various high-profile startups in Beaverton and then Portland proper. He worked at Nike for the past three years while his team built out the business plan and customer base for Cooper Mountain Ale Works. Justin Watson has lived and worked in the Tigard area since 2015. He recently launched a small business online after graduating this year from Portland State university,where his focus was in Urban and Public Affairs. He also serves on the Board of Directors with the Community Partners for Affordable Housing. Derrick Wright is the owner of Senet Game Bar on Main Street and has lived in Tigard for four years. He has previously volunteered with Light up the Night and the Art Walk. AIS-4435 8. Workshop Meeting Meeting Date: 12/15/2020 Length (in minutes): 20 Minutes Agenda Title: TOWN CENTER DEVELOPMENT AGENCY: Initiate Public Review of Substantial Amendment to City Center Urban Renewal Plan Submitted By: Sean Farrelly, Community Development Item Type: Update, Discussion, Direct Staff Meeting Type: Town Center Development Agency Public Hearing: No Publication Date: Information ISSUE Should the Board of the Town Center Development Agency forward the draft substantial amendment of the City Center Urban Renewal Plan and accompanying report for public review? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends that the TCDA board initiate the public review process for the draft Substantial Amendment of the City Center Urban Renewal Plan and accompanying report. KEY FACTS AND INFORMATION SUMMARY The city completed the City Center Futures project in 2020. As part of that project, three alternatives were considered for expanding the City Center Urban Renewal (T1F) District. The recommended option was to pursue a substantial amendment to the City Center Urban Renewal Plan to increase the maximum indebtedness (MI) within the existing boundaries. The Board agreed with the recommendation and directed staff to prepare a substantial amendment to the plan for consideration on the May 2021 ballot. There are two documents for the Board to review in this substantial amendment, the draft Tigard City Center Urban Renewal Area Plan Amendment ("Plan Amendment") and the Report Accompanying the Tigard City Center Urban Renewal Plan Amendment ("Report"). The Plan Amendment shows the verbiage changes to the existing urban renewal plan while the Report gives technical information on blight conditions and the financial feasibility of the MI increase. The proposed increase of MI of$20,800,000 will bring the total MI to $42,800,000. It would also amend the duration provision of the Plan to extend the last day to issue debt provision of the Plan from the twentieth anniversary of the Plan to the twenty-ninth anniversary of the Plan. Tax increment revenues after this date (29 years from anniversary date) will only be spent on retiring debt. This level of MI increase may not be approved by the City of Tigard alone; it must also be approved through adoption of a resolution by the boards of 75% of the taxing districts that levy permanent rate taxes in the Area. Staff has been briefing the Tigard-Tualatin School District, Washington County, and Tualatin Valley Fire & Rescue (TVF&R) on the proposed amendment and the city's request that the districts adopt resolutions approving the MI increase. Board meetings of these taxing districts have been scheduled to allow for a full briefing on the proposed MI increase. Revenue sharing is part of the 2009 legislative changes to urban renewal and would apply here if the substantial amendment to increase maximum indebtedness is approved. Revenue sharing targets are projected to be reached in the City Center TIF district in FYE 2036 if the amendment is approved. If assessed value in the Area grows more quickly than projected, the revenue sharing triggers could be reached earlier. This is more fully described in the attached Report. The increase in MI will allow the Town Center Development Agency (ICDA) to increase funding allocations to the following project categories: Public Spaces; Street Improvements; Streetscape; Pedestrian and Bicycle Facilities; Public Facilities (parking garage); Parks; Affordable Housing Development Assistance; Planning and Development Assistance; Acquisition; and Administration and Financing fees as noted in Table 11 of the Report. Other than Affordable Housing, all of these project categories are in the original Plan. The amendment includes additional funding, new specific projects, and updated project descriptions. The purpose of urban renewal is to improve specific areas of the city that are poorly developed or underdeveloped and meet the ORS 457 definition for blight. Under the statute, downtown Tigard meets the definition due to its many underdeveloped lots and lack of a mix of high quality commercial, office, residential, and public uses in the area and infrastructure needs in the Area. The Town Center Advisory Commission will consider recommending approval of the Substantial Amendment at its December 9 meeting. Pursuant to ORS 457, the city's Urban Renewal Agency (the TCDA) will initiate the public review process for all proposed urban renewal plans and substantial Plan Amendments. Initiation of the public review processes for the attached draft Plan Amendment and accompanying report require the following actions: • Staff will forward a copy of the draft Plan Amendment and report to all overlapping taxing districts and formally solicit comments on December 16. •Staff will brief the Board of Washington County Board of Commissioners on the draft Plan Amendment and report on January 12 with consideration of a resolution on January 26. •Staff will brief the Board of TVF&R on December 15 with consideration of a resolution on January 26, 2021. •Staff will brief the Board of Tigard-Tualatin School District on December 14 with potential consideration of a resolution on this date or its January meeting. •Tigard Planning Commission will hold a hearing on January 4 for its review of the draft Plan Amendment's conformance to the Tigard Comprehensive Plan. •Tigard City Council will hold a hearing on February 9 for the purpose of considering adoption of the draft Plan Amendment and report. •Staff will send out a notice advertising this hearing to all Tigard registered voters pursuant to ORS 457. • City Council will forward the adopted plan and report to the voters for consideration at the May 2021 election. Section XII.A.1 of the City Center Urban Renewal Plan requires voter approval of Substantial Amendments increasing the maximum amount of indebtedness. The draft Plan Amendment and report may change between now and the City Council hearing in February depending on input by the various bodies reviewing the documents. OTHER ALTERNATIVES The Board may suggest revisions to the plan amendment or could chose not to initiate the public review process. The latter may prevent a public vote on the plan in May 2021. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS 2019-2021 Tigard City Council Goals Strategy 2.2 Continue to make Downtown Tigard a place people want to be by making substantial progress on projects that attract new residential and business investment: Evaluate the size and scope of the City Center Urban Renewal Plan to determine whether tax increment resources in the downtown are sufficient to meet council objectives. Prepare recommendations regarding the City Center urban renewal area's possible continuation. City Center Urban Renewal Plan Tigard Comprehensive Plan Special Planning Areas- Downtown Goal 15.2 Facilitate the development of an urban village Ci , Strategic Plan 2020-2025 Priority 3 — Ensure development advances the vision. DATES OF PREVIOUS COUNCIL CONSIDERATION • October 20, 2020 - City Center Substantial Amendment Update •August 18, 2020 - City Center Futures Update Attachments Plan Amendment Report Amendment Presentation DRAFT Proposed new text is shown in double-underline. Deleted text is shown in Explanatory language shown in italics. TIGARD CITY CENTER URBAN RENEWAL PLAN AMENDMENT Only the proposed changes are shown, current plan can be viewed at.* https://www.tigard- or.govlurbanrenewall I. Introduction TheOri Plan #a-s had a duration of 20 years (see Chapter XI), meaning that no new debt wi4 would be incurred after Fiscal Year 2025/2026. The MaXiP„Im @m^61^* Rqay be issued fer the Plan is T..,l,Rty T..a, M llien n„II-,r; ;;App Ne CeRtS ($22,000,000). The first substantial amendment was developed in 2016 and went to voters in the May 2017 election. It amended the boundary and updated the plan as needed. The second substantial amendment was developed in 2020 and went to the voters in the May 2021 election. It added projects, increased the maximum indebtedness, and updated the plan as needed. The maximum amount of indebtedness (amount of tax increment financing for projects and programs) that may be issued for the Plan is Forty-Two Million Eight Hundred Thousand dollars and no cents ($42,800.000). No Dew debt will be incurred after Fiscal Year 2034/2035. II. Goals and Objectives Goal 3 — Downtown's transportation system should be multi-modal, connecting people places and activities safely and conveniently. Objectives: 313: Concurrent with proposed street improvements, and in conformance with the Tigard Transportation System Plan (TSP), provide public and private parking facilities, bike lanes, sidewalks, pedestrian crossings and other pedestrian, and bicycle facilities that promote multimodal usage, access and safety. 1 DRAFT Goal 5 - Promote high quality development of retail, office and residential uses that support and are supported by public streetscape, transportation, recreation and open space investments. Objectives: 5A: Provide development incentives and technical assistance programs that encourage business and property owners to develop projects that are consistent with the Tigard Downtown Improvement Plan vision, the 2019 Affordable Housing Plan. the City of Tigard Strategic Plan 2020-2025, and the Tigard Comprehensive Plan. 5C: Provide for property acquisition to support this goal. III. Outline of projects The Plan identifies transportation projects, including street improvements, streetscape improvements and bicycle/pedestrian facilities improvements,which will increase multimodal connectivity throughout the Area and make downtown Tigard a safer and more accessible destination.The Plan also includes Parks, Public Spaces and Public Facilities projects that will beautify the Area, increase neighborhood livability and provide opportunities for residents, visitors and downtown workers to participate in a wide range of community and recreational activities. Planning and Development Assistance Programs identified in the Plan will facilitate the development, redevelopment and rehabilitation of private property in the Area.The programs will encourage Area business and property owners to invest in projects that will increase the economic vitality of downtown Tigard, add affordable housing units to the Area and support the goals and objectives of the Tigard Downtown Plan and the City's Comprehensive Plan. IV. Map and Legal Description of Urban Renewal Area No changes to this section V. Urban Renewal Projects Urban renewal projects authorized under the Plan, which may be undertaken by the Agency, are described below. a^d- sshev ^ '^ PigwFes 2 *^ 'To preserve and enhance the Area's natural resources, projects will be designed and implemented with consideration for ecologically sensitive areas and to minimize the impacts of development on the environment. Property acquisition may be required for these projects. Further, some of the projects described herein will require participation of other public agencies. 2 DRAFT Figure 2 is replaced and Figures 5.6 and 7 are removed from the Plan. A. Street Improvements 7. Construction of New Streets Construction of new streets to provide connectivity within the Area, as identified by hash marks on Figure 2. Figure 2 a Downtown Connectivity Plan Potential Future Streets Map p CD PCS 'yI sT 9ry�p ;� v ■ ■ TIG � ■ + o ■ ■ � T �r e rr ♦ C r ♦♦, 0 P6 ♦ �C 1 y `♦ .: rrr p ♦ ♦ t � 1 Downtown Street Character Types" -Upper Hall Boulevard" -Main Street Green Street -Downtown Mixed Use 1 (Collector) -Downtown Mixed Use2 (Neighborhood) -Downtown Mixed Use 3 (Upper Burnham) -Downtown Mixed Use 4 (Lower Burnham) Urban Residential Alley:Business 0 250 500 1,000 Feet i I I I I I I I i ❑as h ed lines indicate p ropo s ed s tre ets Other Streets -- Hail Boulevard s currently an O OT raciii�y. ODOT's design standards may supers�e thew standards as long « Railroads as itsanDdDTfacility. N 3 DRAFT B. Streetscape Improvements— No changes to this section. C. Bike/Pedestrian Facilities - 10. Tigard Heritage Trail (Main Street to Hall Boulevard) This project will increase pedestrian access and provide new recreational opportunities for residents, workers and visitors to downtown. The project will build a new path connecting Main Street to the existing multi-use trail that connects the Commuter Rail parking lot to Hall Boulevard, and include historical/educational installations and other amenities. 11. Fanno Creek Trail Improvements Improvements to the Fanno Creek Trail within the Area will include new trail connections, lighting, accessibility improvements, boardwalks and wayfinding. D. Parks - delete Figure 5 E. Public Spaces - delete Figure 6 2. Plazas The design and construction of public plazas that will serve as public gathering spaces is a project under the Plan. This project will encourage a broader range of active and passive recreational uses in downtown and attract more residents and visitors to the area. The Universal Plaza project will provide a large public space that includes a water feature, covered area, connection to Fanno Creek Trail, restrooms, and other amenities. F. Public Facilities - delete Figure 7 2. Public Parking Facilities The design and construction of new public parking facilities is a project under the Plan. As new shopping, recreational and entertainment uses, including the proposed performing arts center and public market, are established in the downtown area, new public parking facilities will be needed to accommodate the anticipated increase in parking demand. This project includes structured parking that would jointly serve employment uses as well as visitors and customers to the downtown. 4 DRAFT G. Planning and Development Assistance 5. Affordable Housing Development Assistance Grants and technical assistance to encourage new regulated affordable housin& and preservation of naturally occurring affordable housing. VI. Relationship to Local Objectives A. City of Tigard Community Development Code The City of Tigard Community Development Code establishes zoning districts, which govern allowed uses and contain development standards. The Area encompasses property within the City's commercial, parks and recreation and industrial zoning districts. According to the City's Development Code, the purpose of commercial zoning districts is to pFevide-aeempreh-,-i�o�e-ante-ef cerneFeial seFv+ces -including Fetail and effice uses-that aFe eenveniently accessible te rAeteFists, bicyclists and pedestFians and designed to minimize potential adveFse impacts en SurFeunding to implement the goals and policies of the comprehensive plan related to land use planning and economic development by: A. Ensuring that a full range of goods and services are available throughout the city so that residents can fulfill all or most of their needs within easy driving distance and, ideally, within easy walking and biking distance of their homes; B. Ensuring that a full range of economic activities and job opportunities are available throughout the city; and C. Minimizing the potential adverse impacts of commercial uses on residential uses by carefully locating and selecting the types of uses allowed in each commercial zone. The purpose of Tigard's industrial zoning districts is to *^ .^P-a' r^SideRtS. implement the goals and policies of the comprehensive plan related to land use planning and economic development by. A. Ensuring that a full range of economic activities and job opportunities are available throughout the city: and B. Minimizing the potential adverse impacts of industrial uses of industrial uses on nonindustrial uses by carefully locating and selecting the types of uses allowed in each industrial zone. 5 DRAFT The purpose of Tigard's parks and recreation zoning district is to preserve and enhance publicly-owned open space and natural and improved parkland within the city. This zone is intended to serve many functions including: A. Providing opportunities for both active and passive recreational facilities to meet neighborhood, community, and regional needs: B. Providing contrast to the built environment; C. Providing opportunities to strengthen community identity, improve public health, and foster interactions between citizens; D. Providing economic development by creating a desirable public image and robust quality of life: E. Recognizing that publicly-owned parks have a special relationship to the community and are an important resource: F. Providing flexibility in the use and development of recreational facilities as the city responds to changes in demographics, program needs, and external regulatory requirements; and G. Allowing for the efficient implementation of plans and improvements to parks, recreational facilities, and open areas with appropriate reviews where compatibility issues may arise. A detailed description of commercial, parks and recreation and industrial zoning districts within the Area and corresponding development standards are described in Section VII below. The Plan implements the public investments necessary to generate development that is consistent with Mixed-Use Central Business District, General Commercial District, Parks and Recreation District and Industrial Park District. -A^d °r^f^S,s'0 f'r,r,-,r, eregal n striets av.;ell as th^ 1-4.5 i ,_rl.,r,oity Resid ,r,tial Distr et o_12 54eP-10 ., _n„r,Sity Residential Distriet and o_25 Medium ugh Density n str e+. Further, the Plan will help ensure that the Area develops efficiently, with high quality, attractive development that creates an identity and sense of place unique to downtown Tigard. B. Tigard Comprehensive Plan Goals and Policies No changes to this section C. Transportation System Plan Goals and Policies TRANSPORTATION SYSTEM PLAN —only additions are shown, all other findings remain the some. Where some of the goal and policy language is already existing, it is not shown in double underline, new goal and policy information is shown in double underline. 6 DRAFT Goal 2: Transportation Efficiency—Develop and maintain a transportation system for the efficient movement of people and goods. Policy 9: The city shall require the provision of appropriate parking in balance with other transportation modes. The Plan includes streetscape improvements and bicycle/pedestrian system improvements designed to encourage alternative modes of transportation to the automobile. By filling gaps in the existing sidewalk system, installing new bike lanes and upgrading existing bikeways to standard, the Plan will help create a complete system of bicycle and pedestrian facilities that enables pedestrians and bicyclists to commute safely and efficiently to and within downtown. The Plan includes street improvements that will address motor vehicle needs in and around downtown Tigard. Projects such as the Scoffins Street/Hall Boulevard/Hunziker Realignment and Highway 99W intersection improvements will reduce congestion and improve circulation while creating a safer environment for drivers, pedestrians and bicyclists. The Plan includes trail connections through the Tigard Heritage Trail and Fanno Creek Trail projects and provides funding for the construction of new streets providing connectivity in the Area. The Plan also provides funding for a parking structure to serve employment uses as well as visitors and customers to the Downtown. D. City of Tigard Park System Master Plan PARKS, RECREATION, TRAILS, AND OPEN SPACE Goal 1: Provide a wide variety of high quality park and open spaces for all residents, including both developed areas with facilities for active recreation and undeveloped areas for nature oriented recreation and the protection and enhancement of valuable natural resources within the parks and open space systems. Policy 1: Tigard shall acquire, develop and maintain a diverse system of parks, trails, open space and recreational facilities that are safe, functional and accessible to all of its population. Goal 2: Create a Citywide network of interconnected on- and off-road pedestrian and bicycle trails. Policy 1: The City shall create and interconnected regional and local system of on- and off-road trails and paths that link together neighborhoods, parks, open spaces, 7 DRAFT major urban activity centers and regional recreational opportunities utilizing both public property and easements on private property. The Plan includes multiple projects that support the City's park system vision and recommendations. In particular, the Fanno Creek Park Improvements and Enhanced Pedestrian Bridge, Urban Creek/Green Corridor and Urban Green Spaces projects will upgrade and increase multimodal access to existing parks and open space areas and create new green space and recreational areas that will draw residents, shoppers and visitors to downtown Tigard. The Plan includes additional trail connections through the Tigard Heritage Trail and Fanno Creek Trail projects and the development of Universal Plaza, a central meeting place for residents and visitors to T E. Tigard Downtown Improvement Plan No changes to this section F. Affordable Housing Plan In 2019 the City of Tigard adopted the Affordable Housing Plan— Tigard Housing Strategy Implementation Plan. The purpose of the Tigard Housing Strategy Implementation Plan (THSIP) is to identify strategies and implementation steps needed to increase the supply and affordability of housing within the City of Tigard. The outcome of the project will be recommendations for adoption of housing strategies and policies, including amendments to municipal and development code, to implement an Affordable Housing Plan. The THSIP identified tools to assist in the development of affordable housing, one of which was tax increment funds. The Plan includes a project category of Affordable Housing Development Assistance to provide grants and technical assistance to help encourage the development of affordable housing in the Area. G. City of Tigard Strategic Plan 2020-2025 The City of Tigard Strategic Plan was adopted by City Council on September 22, 2020. The Vision of the Plan is Equity—Just and fair inclusion into a society in which all can participate, prosper. and reach their full potential. Walkability—A walkable environment supports and allows for a choice to participate in active forms of transportation such as cycling and includes people traveling with or without a mobility aid. A walkable community is foundational to an equitable and sustainable community. 8 DRAFT Accessibility— Providing equivalent ease of use and opportunity for all people to interact with our services processes, and infrastructure. Healthy—Supporting the community's physical, economic, and environmental well- being which improves all aspects of health. There are three strategic priorities that support the vision: 1. Set the standard for excellence in public service and customer experience 2. Create a well-connected, attractive, and accessible pedestrian network. 2.1 Create a well-connected pedestrian network that links all Tigard residents and businesses. 2.1 C. Identify and pursue new funding sources to build the pedestrian network. 2.1 D. Bring parks and trailheads within a 10-mionute walk of every Tigard resident. 2.1 E. Expand the pedestrian network annually. 2.2 Tigard's pedestrian network is attractive accessible, safe and well-maintained. 2.2 B. Design the trail system to serve both recreational and active transportation purposes. 3. Ensure development and growth support the vision. 3.1 Pursue land development that maximizes public health benefits while increasing connection between people and community destinations. 3.1 B. Locate and grow businesses to support walkability, connectivity. and accessibility for all business locations. 3.1 C. Build mixed-use development that is inclusive of housing, shoppin& employment, sery ices and integrates transportation options. 3.1 D. Fully implement the City's Complete Streets policy. 3.1.G. Invest in public spaces that equitable serve the city's diverse residents. workers, and visitors. 3.2 Focus development-associated resources in parts of the city that have the capacity to serve, house, employ and attract the most people with the least impact on Tigard's natural systems and the climate. 3.2.13. Facilitate Transit Oriented Development (TOD) that supports employment, housing, and community services. 3.3 Understand the effects of development on vulnerable Tigard residents and mitigate those impacts within projects and over time. 3.3.C. Support a balanced, diverse mix of business sectors and employment opportunities. 3.3.D. Ensure transportation investments and improvements are provjding equitable benefits and impact to the entire population. 3.3.E. Advance equitable economic opportunity. 3.4 Proactively intervene as necessary to meet the housing needs of all community members. 9 DRAFT 3A.A. Prioritize funds to support the creation and retention of affordable housing in Downtown Tigard, the Tigard Triangle and Washington Square. 3A.D. Increase the housing mix in the city to meet the needs of smaller households, including singles, young families, and older adults. The Plan conforms to the City of Tigard Strategic Plan and implements many portions of the Strategic Plan. The Plan helps implement the strategic priority to "Create a well- connected and accessible pedestrian network" as projects provide funding for increased trails, new streets providing connectivity in the Area. The Plan helps implement the strategic priority "Ensure development and growth supports the vision" as it includes the development of the Universal Plaza, a central gathering place for Tigard residents. In addition, the Plan provides structured parking and assistance for new mixed-use development including affordable housing development. VII. Proposed Land Uses This section is deleted in its entirety and replaced with new information. Land uses within the Area are governed by the City of Tigard Development Code.The Development Code establishes zoning districts that implement the Tigard Comprehensive Plan. The districts govern the allowed uses and contain development standards. CurreRtly, land in thp- Arp—p iS�.A.4hn the Ce.ntr-al B.U'SiRess District(CBD), General Cernmercial (C r) PFefessie—nal I ern. .eFeial (C D) D 4.5 Lew, Density Residential /D n C1 0 17 nn,,.Jii,vv, Density Residential (R 12) -A.Ad- R -25 A.Aedium High Density Residential (R 25) Zening distriets. The purpese .,f the districts is de-S rihed in the fle,,.,1.,,„ment Cede as follows: A rent al llictrira u housing,The CB.-D zening district us designed to provide a cence—ntrated ce—ntral district, centered on theCity's histericel A v.f-n-t A v.f-n-, including a mix ef civic, retail and Aeffice uses. Single family attached at a ma)(mmum density of 12 units/net acre, equivalent A-f the R-1-2 zoning district, and multi fa4:R4 heusing at a mimirn-urn density ef 32 units/acre, equiv.ale.nt te- the R 40 zening district, are permitted eutright. A wide range ef uses, including but not limited t A- -;;P-1 ult entertainment, utilities, facilities with drive up windews, Friedieal centers, major event entertainment and gaseline statiens, are permitted Most development in the C-B-F-) ir- nA-t Subject to minimurn Set-hack.s. Hewever, 20 feet / si.de -and rear yard setbacks are required �.AA— O mum O are districts,required. With exception ef buildings y.fwthwn 1-0-0- feet ef any residential zening ;.yhere -A 40 feet height FestFietieici applies, a Priaximum height ef 80 feet is pi:eserihed fe development it the CUnn 10 DRAFT My wide and even Fegienal twele area. Except when nen ce4emin, reidentiaA mes are kmited to single farnky FeWdences which are located en the sarne site as a peFFnitted use, A We rang-&-elanybeludbg but net limited to aduk en-tertakment, autemetive equipment repair and , wareheuses, utilities, helipeFts, medical cente, majer event entertainment, and gaseline st-a#eP&,-a-r-e permitted eenclitlenaPy." Generally, development in the C G zene is net subject to rninernurn setbacks. HeweveF, 20 feet Ode and Fear ya-rd setbads an requked where the zene abuts a FeWentiWaRm 0 murnscaperequrement0 maximurn height limit of nC feet a also p rNr.rl c.compatible support services, eng, convenience FKaH and personal SEYViees, restaurants, in proximity to Fesidental areas and Major tMFISPeFtWeR faNties, Within the Tigard Triangle and Bull MeHRtaiR Read DistFict, residential uses at a Pninirnum density of 32 units/net acre, •, equ medical centers; religious institutions and Wbes are permitted conditionally. Developments an the G P zening distFict are intended to serve as a buffer between Fesidential areas and rnem commercial and With the exception of pFepeqy abutAng a re?dentmal zoning district, where 20 feet side and rear yard set-backs are required, minimurn setbacks are not required in the C P Z ete ran 0 Kinernurn landscape requinment of 15,04 height PRAt of 45 feet are FequiFed of all development in the C P zone. D RA 5% 1 mim-11ensity Residential D64rii+t u The R 4.5 zoning ClIt-FUCt I desyned to aCCCIMRmeclate detached single family hemes with eaccessery residential units at a Qnrnurn let Oze of 7,500 square feet. Duplexes and attachecl-O=Rg� famAy units are permitted cenclitienaHy, Some We and institutienal uses are also permitted CeRGINeRal Y." The rnnmrnum let ske in the R TS zone ranges 40RI 7,500 square feet for detached heusing units to 10,000 for duplexes. The average PAiRiMUFn lot width is 50 feet for deta Ats and 90 feet for clup[ex let-s. AH rejeleRtAl development I subject to a rrnaQnuRY&Q& of 30 feet and rn*nernurn setbacks of 20 feet (fFoRt Yard), 5 feet (side yard) and 154e-et--�r� yard). A rnininnurn distance ef 20 feet between a property line and the fFent of a garage ake required.The R 4.5 zene does not rnpese a minimum landscape requirenne C. rlD_12 nneiiirv._nensity Residential llistri�t E. of 3,050 square feet. A wide range of civic and institutional uses are ate peFm4ted eenditioRalp n 11 DRAFT requirementMultiple family dwellaRg ---Aat,-; 4A the R 12 zeRe aFe subject te miRim-Mm. fre—pt.;;Pd FeaF yaFd sewh�;;cks ef 20 feet -;indl -;; mi.n.mmurn Side yard setback of I-A- feet. Single family dwelling units aFe subjeet te- MiRiMI-IM fPE)Rt and FeaF yard setbacks A-f 14 fp-p-t-;;Ad- -;; Side yaFd set-War-k Af q fPPt Per beth multiple family and siRgle family dwelliRg units, a 30 fAA* ;Pth;4c-'( s required fer a sic-le er rear yard abUttiRg a more restrictive zeniRg district. A max v mum of 201 are aIse specified. C R-24 Medium High Density Residenti-al Ilietrint "The R 25 zeRing distFiet is designed te- -acee—m.medate existing heusiRg of all types and new siRgle family and multi family heusiRg un*ts at a monkm.u.m. .'At r-.a-;ze ef!,48()square feet. A. lemeted .4, M*AepAurn let size ef 3,050 squaFe feet peF unit feF detached single family dwelliRg uRitS and 6,100 r e feet.,r 3,050 r e feet peF nit fer duplexes i ed in the R 75 r zeRe. Multiple family dwelliRg units are subject te minimum freent and rear yard Setb-ack-s ef 2A fizpt ;4pr-I inimum side yard setbar-14 Af I A fizizt engle family dwelling Units aFe s bjeet te miRimum fre—nt-andl re-ar yard setbacks ef 14 feet -A.nd -;; munimum side yard setback of 5 fp-p-t. PA.r heth multiple family and single family dwelling units, a 30 feet setbaek Fequ*Fed fA-.r-A side A—r rear yaFd abutting a meFe FestFietive zening distFiet. A Maxim-H.M. -hum.ding height 0 mum scape rement 0 are also s cified General/Commercial CG -The C-G zone is designed to accommodate a full range of retail office,and civic uses with a citywide and even regional trade area. Except where nonconforming, residential uses are limited to mixed-use developments.A wide range of uses, including but not limited to adult entertainment, automotive equipment repair and storage, mini-warehouses, utilities, heliports, medical centers, major event entertainment. and gasoline stations, are allowed conditionally. Mixed Use Central Business District U-CBD-The MU-CBD zone is designed to provide a pedestrian-friendly urban village in downtown Tigard.A wide variety of commercialcivic. employment, mixed-use, apartments, and rowhouses are allowed. Parks and Recreation Zone PR-The Parks and Recreation (PR) zone is applicable to all city-owned lands intended as parks,open space, and recreational facilities and may be applied within all comprehensive plan designations. City-owned parks, open space. and recreational facilities located in a plan district may retain or receive other than a PR zone designation if it better furthers the goals of the plan district. In addition. other public agencies may request a PR zone designation for areas that meet the purpose of the zone. Industrial Park I-P- The I-P zone provides appropriate locations for combining light manufacturing,office,and small-scale commercial uses, such as restaurants. personal 12 DRAFT services, and fitness centers, in a campus-like setting with no nuisance characteristics such as noise, glare, odor, or vibration. VIII. Property Acquisition and Disposition Tri Met property- tax lot numbers 2S102AA04800 and 2S102AA04801 IX. Relocation Methods No changes to this section X. Tax Increment Financing of Plan The maximum amount of indebtedness that may be issued or incurred under the Plan, based upon good faith estimates of the scope and costs of projects in the Plan and the schedule for their completion is Twenty Twe Milli^^ ^^"arS ,^^' Ne G-^^+s �t" nnn nnnl Forty-Two Million Eight Hundred Thousand dollars and No Cents ($42.800.000).This amount is the principal of such indebtedness and does not include interest or indebtedness incurred to refund or refinance existing indebtedness. XI. Duration of Plan No new indebtedness to be repaid with tax increment revenues may be incurred after the anniveFsap,A twenty-ninth anniversary of the effective date of the Plan. As is common practice in urban renewal plans in Oregon,tax increment revenues may continue to be collected beyond this date. Collection may continue until it is found that deposits in the Commission's debt service fund are sufficient to fully pay principal and interest on indebtedness issued during the twenty years following the effective date of the Plan, either through direct payment of the indebtedness or by payment of principal and interest on bonds or notes issued to finance the indebtedness.Tax increment revenues collected after the tweptieth twenty-ninth anniversary of the Plan (FY 2034/20351 may only be used to retire outstanding debt.The Plan will be effective on the date that the County certifies the results of the election at which the Tigard voters approve the measure that referred an ordinance approving an urban renewal plan to the Tigard voters. XII. Future Amendments to Plan No changes to this section 13 DRAFT Report Accompanying the Tigard City Center Urban Renewal Plan Substantial Amendment Reviewed by the City of Tigard February 9, 2021 Ordinance No. To be sent to vote May 17, 2021 Consultant Team Elaine Howard Consulting, LLC Elaine Howard Scott Vanden Bos Tiberius Solutions LLC Nick Popenuk Ali Danko Rob Wyman TABLE OF CONTENTS I. INTRODUCTION ...................................................................................................................4 II. EXISTING PHYSICAL, SOCIAL, AND ECONOMIC CONDITIONS AND IMPACTS ON MUNICIPAL SERVICES................................................................................................................ 6 III. REASONS FOR SELECTION OF EACH URBAN RENEWAL AREA IN THE PLAN ................... 16 IV. THE RELATIONSHIP BETWEEN URBAN RENEWAL PROJECTS AND THE EXISTING CONDITIONS IN THE URBAN RENEWAL AREA ........................................................................ 16 V. THE ESTIMATED TOTAL COST OF EACH PROJECT AND THE SOURCES OF MONEYS TO PAY SUCHCOSTS............................................................................................................................ 19 VI. THE ANTICIPATED COMPLETION DATE FOR EACH PROJECT .......................................... 20 VII. THE ESTIMATED AMOUNT OF TAX INCREMENT REVENUES REQUIRED AND THE ANTICIPATED YEAR IN WHICH INDEBTEDNESS WILL BE RETIRED .......................................... 24 VIII. FINANCIAL ANALYSIS OF THE PLAN .............................................................................. 29 IX. IMPACT OF THE TAX INCREMENT FINANCING................................................................ 33 X. COMPLIANCE WITH STATUTORY LIMITS ON ASSESSED VALUE AND SIZE OF URBAN RENEWALAREA.......................................................................................................................41 XI. RELOCATION REPORT...................................................................................................... 41 Report on Tigard City Center Urban Renewal Plan Amendment I. INTRODUCTION The Report on the Tigard City Center Urban Renewal Plan Amendment (Report) contains background information and project details that pertain to the Tigard City Center Urban Renewal Plan (Plan) Amendment (Amendment). The Report is not a legal part of the Plan, but is intended to provide public information and support the findings made by the City Council as part of the approval of the Plan. The Report provides the analysis required to meet the standards of ORS 457.087, including financial feasibility. The format of the Report is based on this statute. The Report documents not only the proposed projects in the Plan, but also documents the existing conditions in the Tigard City Center Urban Renewal Area (Area). The Report provides only guidance on how the Plan might be implemented. As the Tigard City Center Development TCDA (TCDA) conducts its annual budget process each year, it has the authority to make adjustments to the assumptions in this Report, particularly in regard to forecast revenues and planned expenditures. The TCDA may allocate budgets differently, adjust the timing of the projects, decide to incur debt at different timeframes than projected in this Report, and make other changes, as allowed in the amendments section of the Plan. Report on Tigard City Center Urban Renewal Plan Amendment 4 Figure 1—Tigard City Center Urban Renewal Plan Area 'V 000 ■ < • n .�• SCJ ❑` Y'wy •�� n i��• ��+•♦ '44 eat"- •♦••� �•�� ■+■,*■■■■■■■■■■■■■■y of i'. .. *N. ■ .�• '�dm St+• i ■ ■ 1*•.****+ rte• 1 M �■■■� ■ Tigard City Center URA •■■■4P 0 500 1,000 1,500 feet I I I I Source:2016 Amendment to the Tigard City Center Plan Report on Tigard City Center Urban Renewal Plan Amendment 5 II. EXISTING PHYSICAL, SOCIAL, AND ECONOMIC CONDITIONS AND IMPACTS ON MUNICIPAL SERVICES This section of the Report describes existing conditions within the Tigard City Center Urban Renewal Area and the Amendment Area and documents the occurrence of"blighted areas," as defined by ORS 457.010(1). A. Physical Conditions The analysis in this section uses data from Washington County Assessor's office from 2016, when the amendment to increase acreage within the City Center Urban Renewal Area boundary was completed. There are not significant changes between 2016 and 2020. 1. Land Use The Tigard City Center Area is 228.96 acres, including 198 tax lots consisting of 185.60 acres and 43.36 acres of right of way. An analysis of property classification data for FYE 2016, from the Washington County Department of Assessment and Taxation was used to determine the land use designation of tax lots in the Area as amended. By acreage, commercial use accounts for the largest land use within the area (51.51%). This is followed by exempt (28.11%x) and multifamily residential (11.73%). The total land uses of the Area, by acreage and parcel, are shown in Table 1. Table 1— Existing Land Use of Area Land Use Total Total Percent Tax lots Acres of Acres Commercial 125 95.61 51.51% Exempt 30 52.18 28.11% Industrial 1 6.41 3.45% Multi-family Residential 11 21.78 11.73% Single Family Residential 18 5.45 2.94% Vacant 13 4.17 2.25% Total 198 185.60 100.00% Source:Compiled by Tiberius Solutions LLC with data from the Washington County Department of Assessment and Taxation(FYE 2016) Report on Tigard City Center Urban Renewal Plan Amendment 6 2. Zoning and Comprehensive Plan Designations As illustrated in Table 2 and Figure 2—Area Zoning DesignationsFigure 2, the majority (67.56%) of the Area by acreage is zoned as Mixed Use Central Business District. Table 2 — Existing Zoning Designations of Area Total Total Percent Zoning Tax lots Acres of Acres Mixed Use Central Business District (MU CBD) 187 125.40 67.56% MU CBD- Planned Development Overlay 1 15.1 8.14% General Commercial 5 21.61 11.64% Parks and Recreation 4 22.50 12.12% Industrial Park 1 0.99 0.53% Total 198 185.60 100.00% Source:Compiled by Tiberius Solutions LLC with data from the Washington County Department of Assessment and Taxation(FYE 2016) and Metro RLIS 2016 Q1. As illustrated in Table 3 and Figure 3, 67.47% of the acreage is designated as Mixed Use Central Business District in the City of Tigard Comprehensive Plan. Table 3 — Existing Comprehensive Plan Designations of Area Comprehensive Plan Designation Total Total Percent Tax lots Acres of Acres Mixed Use Central Business District 180 125.22 67.47% General Commercial 5 21.61 11.64% Open Space 12 37.78 20.36% Light Industrial 1 0.99 0.530o Total 198 185.60 100.00% Source:Compiled by Tiberius Solutions LLC with data from the Washington County Department of Assessment and Taxation(FYE 2016) and Metro RLIS 2016 Q1. Report on Tigard City Center Urban Renewal Plan Amendment 7 Figure 2 —Area Zoning Designations Tigard City Center Urban Renewal Area Zoning Designations 1� JL 1 , ■ Zoning �■■ •�..r**♦ �` I I I I Mixed Use CBD- ■ ■ Planned Development ■■M Mixed Use CBD General Commercial Industrial Park Parks and Recreation �■■■# ■ ■ City Center URAu }u i v i 0■■■+ 0 500 1,000 1,500 feet L_ I I I Source:2016 Amendment to the Tigard City Center Plan Report on Tigard City Center Urban Renewal Plan Amendment 8 Figure 3—Area Comprehensive Plan Designations Tigard City Center Urban Renewal Area Comprehensive Plan Designations e ■ • ! M • + • �_ do • •• •• M � f i ♦ .■■�■ ■ Comprehensive Plan ■•M: Mixed Use CBD General Commercial Light Industrial Open Space �■■■• ■ ■ City Center URA •■■■• 0 500 1,000 1,500 feet Source:2016 Amendment to the Tigard City Center Plan Report on Tigard City Center Urban Renewal Plan Amendment 9 B. Infrastructure This section identifies the existing conditions in the Area to assist in establishing blight. There are projects listed in City of Tigard Capital Improvement Plan (CIP) and Tigard Transportation Systems Plan that identify these existing conditions. This does not mean all of these projects are included in the urban renewal plan. The specific projects to be included in the urban renewal plan are not changed by this Amendment. They are listed in Table 11. 1. Transportation The CIP identifies transportation needs within the Area. Streets and Intersections There are significant transportation needs within the Area: Table 4—Transportation Needs in the Area Name Description Time Frame Cost Estimate Ash Ave railroad Extend Ash Avenue across the railroad crossing (Burnham tracks from Burnham to Commercial Near-term $3,000,000 to Commercial Street Hall Boulevard widening, Pacific Widen to up to 4/5 lanes, depending on 1 Highway to Fanno corridor plan Near-term $2,500,000 Creek New sidewalks, new asphaltic concrete Main Street Green and the collection and treatment of Street (Phase II) stormwater runoff using low impact Near-term $4,060,500 development approaches. Source:City of Tigard Transportation Systems Plan 1 As noted in Tigard staff review of this document,the TSP update will change the project description and likely increase the cost. Report on Tigard City Center Urban Renewal Plan Amendment 10 2. Water The CIP identifies no water needs in the Area. 3. Stormwater The CIP identifies one storm water project in the Area: 94045—Commercial Street Stormwater Facility Project Need: Stormwater treatment for a large existing untreated area to meet regional stormwater regulatory permit requirements, Healthy Streams Plan goals and provide mitigation for Main Street and other future projects. Project Description: Construct a stormwater facility, or facilities, to treat stormwater runoff from up to 47 acres that discharge into Fanno Creek meeting outfall-retrofitting goals identified in the regional Healthy Streams Plan. This will be coordinated with the Main Street Green Street Phase 2 Project. Total Project Cost: $376,000 4. Sewer The CIP identifies one sanitary sewer project in the Area: 93059— Downtown Sanitary Sewer Line Project Need: TV inspection shows rehabilitation is needed to protect sanitary sewer lines in sections of Downtown Tigard. The sanitary sewer in this Area was constructed in the 1960s and after years of monthly and quarterly cleaning, the pipe walls have become thin. Project Description: The full project is both inside and outside the Area. It will rehabilitate approximately 2,360 linear feet of sanitary sewer line in Pacific Highway from Hall Boulevard to Main Street and in Main Street from Pacific Highway to Commercial Street. A cured-in-place pipe (CIPP) trenchless method will be used to minimize traffic disruption. Total Project Cost: $355,000 S. Parks and Open Space The Parks and Open Space projects are: Universal Plaza -The project will provide a large public space that can be a venue for community events and will include a water feature, covered area, connection to Fanno Creek trail, restrooms, interpretive art, and other amenities. Total Project Cost: $4,010,000 Fanno Creek Overlook-The project will provide an overlook of Fanno Creek near Main Street and a new connection to the Fanno Creek Trail. Total Project Cost: $840,000 Report on Tigard City Center Urban Renewal Plan Amendment 11 C. Social Conditions Data from the US Census Bureau is used to identify social conditions. The geographies used by the Census Bureau to summarize data do not strictly conform to the boundary of the Tigard City Center Urban Renewal Area. As such, the Census Bureau geographies that most closely align with the Urban Renewal Area boundary are used. The Area is situated at the intersection of seven different Census block groups, each of which extend a great distance beyond the boundary of the Area, including significant residential populations that live adjacent to, but outside of the Area. Only three of the seven overlapping Census block groups include a significant amount of residential land uses within the Area. Thus, the demographic analysis is limited to those three block groups: block groups 1 and 2 in Census Tract 307 and block group 4 in Census Tract 308.01. These block groups have a total residential population of 2,924 as depicted in Tables 5 and 6. Again, the majority of this population lives in areas adjacent to but outside of the Area. The area has 27% Latinx residents. Eighty three percent of the residents identify as White alone. Table 5 — Hispanic or Latino Origin by Race in the Area Race Number Percent Not Hispanic or Latino 2,147 73% White alone 1,757 60% Black or African American alone 29 1% Asian alone 108 4% Native Hawaiian and Other Pacific Islander alone 15 1% Two or more races 238 8% Hispanic or Latino 777 27% White alone 668 23% Asian alone 8 0% Some other race alone 65 2% Two or more races 36 1% Total 2,924 100% Source:US Census Bureau,Social Explorer,American Community Survey 2014-18 5-Year Estimates Report on Tigard City Center Urban Renewal Plan Amendment 12 The largest age group in the area is 25 to 34 years, 18%, followed by 18 to 24 years at 15%. Table 6—Age in the Area Age Number Percent Under 5 years 184 6% 5 to 9 years 76 3% 10 to 14 years 173 6% 15 to 17 years 134 5% 18 to 24 years 429 15% 25 to 34 years 515 18% 35 to 44 years 408 14% 45 to 54 years 323 11% 55 to 64 years 369 13% 65 to 74 years 143 5% 75 to 84 years 144 5% 85 years and over 26 1% Total 2,924 100% Source:US Census Bureau,Social Explorer,American Community Survey 2014-18 5-Year Estimates Twelve percent of the adult population in the Area has not achieved a high school diploma. Twenty-six percent of adult residents in the area have earned a bachelor's degree or higher, another 26% have some college experience without a degree, and an additional 22% have graduated from high school with no college experience. Table 7— Educational Attainment in the Area Education Number Percent Less than high school 228 12% High school graduate (includes equivalency) 428 22% Some college 499 26% Associate's degree 248 13% Bachelor's degree 395 20% Master's degree 125 6% Professional school degree - 0% Doctorate degree 5 0% Total 1,928 100% Source:US Census Bureau,Social Explorer,American Community Survey 2014-18 5-Year Estimates Report on Tigard City Center Urban Renewal Plan Amendment 13 The majority of residents, 70%, travel less than 30 minutes to work, including those who worked at home. Table 8—Travel Time to Work in the Area Travel Time Number Percent Less than 10 minutes 301 21% 10 to 19 minutes 469 33% 20 to 29 minutes 222 16% 30 to 39 minutes 246 17% 40 to 59 minutes 87 6% 60 to 89 minutes 86 6% 90 or more minutes 8 1% Total 1,419 100% Source:US Census Bureau,Social Explorer,American Community Survey 2014-18 5-Year Estimates Report on Tigard City Center Urban Renewal Plan Amendment 14 The majority of residents, 66%, drove alone to work. Table 9— Means of Transportation to Work in the Area Transportation Number Percent Drove alone 978 66% Carpooled 108 7% Public transportation (includes taxicab) 144 10% Motorcycle - 0% Bicycle 82 6% Walked 107 7% Other means - 0% Worked at home 60 4% Total 1,479 100% Source:US Census Bureau,Social Explorer,American Community Survey 2014-18 5-Year Estimates D. Economic Conditions 1. Taxable Value of Property within the Area The estimated total assessed value of the Area calculated with data from the Washington County Department of Assessment and Taxation for FYE 2020, including all real, personal, manufactured, and utility properties, is $168,286,420. 2. Building to Land Value Ratio An analysis of property values can be used to evaluate the economic condition of real estate investments in a given area. The relationship of a property's improvement value (the value of buildings and other improvements to the property) to its land value is generally an accurate indicator of the condition of real estate investments. This relationship is referred to as the "Improvement to Land Value Ratio," or "I:L." The values used are real market values. In urban renewal areas, the I:L is often used to measure the intensity of development or the extent to which an area has achieved its short- and long-term development objectives. Table 10 below shows the improvement to land ratios for properties within the Area. The majority of tax lots in the area that are not exempt (41.66% of the total acreage) have I:L ratios of less than 1.0. In other words, the improvements on these properties are worth less than the land they sit on. We identify a target I:L ratio of 2.0 for properties in this Area. Only 31 tax lots in the area, including 16.61% of the acreage have I:L ratios of 2.0 or more in FYE 2016. The Area as a whole, is underdeveloped and not contributing its full potential to the tax base in Tigard. Report on Tigard City Center Urban Renewal Plan Amendment 15 Table 10— I:L Ratio of Parcels in the Area Tax lots Acres Percent of Acres Exempt 30 52.18 28.11% No Improvement Value 14 8.11 4.37% .01-.50 43 31.47 16.96% .51-.1.0 31 37.73 20.33% 1.01-1.5 25 17.77 9.57% 1.51-2.0 22 7.51 4.05% 2.01-2.5 3 2.03 1.09% 2.51-3.0 9 4.32 2.33% 3.01-4.0 13 8.26 4.45% >4.0 8 16.22 8.74% Total 198 185.6 100.00% Calculated by Tiberius Solutions LLC with source data from Washington County Office of Assessment and Taxation(FYE 2016). E. Impact on Municipal Services The fiscal impact of tax increment financing on taxing districts that levy taxes within the Area (affected taxing districts) is described in Section IX Impact of Tax Increment Financing of this Report. This subsection discusses the fiscal impacts resulting from potential increases in demand for municipal services. The properties within the Area are all within the city limits and future development and demand for services is anticipated in the Area. III. REASONS FOR SELECTION OF EACH URBAN RENEWAL AREA IN THE PLAN The reason for selecting the Area has not changed from prior Reports; it is to enhance the ability to fund improvements necessary to cure blight within the Area. IV. THE RELATIONSHIP BETWEEN URBAN RENEWAL PROJECTS AND THE EXISTING CONDITIONS IN THE URBAN RENEWAL AREA The projects identified for additional funding are largely already identified in the verbiage of the Plan, but additional funding has been allocated. Following the categories in the Plan, they are shown below. 1. Construction of New Streets Construction of new streets to provide connectivity within the Area as identified by dashed lines on Figure4. Report on Tigard City Center Urban Renewal Plan Amendment 16 Existing Conditions: The streets shown with dotted lines do not currently exist. Most block sizes in the Area are very large, which limits the amount of street frontage and limits connectivity for all modes of transportation particularly for pedestrians. Figure 4— Potential Future Streets in Area W Downtown Connectivity Plan Potential Future Streets Map NT PaE �p P� P Cp G� r w ■ ■ ■ rio Al ■ •f � T 1 � ,r/ ♦♦ Fi % r ♦ ♦ ♦ P ♦ ♦ t � ♦ Downtown Street Character Types" Upper Hall Boulevard" Main Street Green Street Downtown Mixed Use 1 (Cal lector) Downtown Mixed Use 2(Neighborhood) Downtown Mixed Use 3(Upper Burnham) Downtown Mixed Use 4(Lower Burnham) Urban Residential Alley:Business 0 250 500 1,000 Feet f f f l f f f l ❑ashedlines indicate proposed streets Other Streets --Hall 9auleva rd s currently an OD OT facility. OOOT's design standards may supers�e thew standards as long �« «« Railroads as it is an OOOT facility. N Source:City of Tigard Report on Tigard City Center Urban Renewal Plan Amendment 17 2. Tigard Heritage Trail (Main Street to Hall Boulevard) This project will increase pedestrian access and provide new recreational opportunities for residents, workers, and visitors to downtown. The project will build a new path connecting Main Street to the existing multi-use trail that connects the Commuter Rail parking lot to Hall Boulevard, and include, historical/educational installations and other amenities. Existing Conditions: The Main Street to Tiedeman Avenue section of the Tigard Heritage Trail has been completed. Currently pedestrians who wish to continue on from Main Street to the multi-use path that connects to Hall Boulevard must walk through the Commuter Rail parking lot, most of which has no pedestrian path. 3. Fanno Creek Trail Improvements Improvements to the Fanno Creek Trail within the Area will include new trail connections, lighting, accessibility improvements, boardwalks, and wayfinding. Existing Conditions: The segment through the district is substandard. A new connection to the Universal plaza will be constructed. The deficiencies are: • Not designed or built to current local, regional, or state trail standard and generally too narrow to support the usage it sees today • Degraded asphalt surface (potential accessibility issues), with tree root heaving in some locations • Seasonal flooding • Lack of any lighting 4. Plazas: Universal Plaza The Universal Plaza project will provide a large public space that includes a water feature, covered area, connection to Fanno Creek trail, restrooms, and other amenities. Existing Conditions: This mostly vacant property owned by the TCDA is being used as a temporary public space. Conceptual plans for the new plaza have been completed. 5. Public Facilities: Parking Facility This project includes structured parking that would jointly serve employment uses as well as visitors and customers to the downtown. Existing Conditions: There is no structured parking in the Area. As uses intensify and as Universal Plaza is developed, additional traffic is anticipated in the Area. This structured parking would address that need. 6. Planning and Development Assistance: Affordable Housing Development Assistance Grants and technical assistance to encourage new regulated affordable housing and preservation of existing market affordable housing. Report on Tigard City Center Urban Renewal Plan Amendment 18 Existing Conditions: The existing Plan allows for development assistance but does not specifically call out affordable housing. The need for the creation of affordable housing has been more widely recognized as an important component of the health of the city. The City of Tigard Affordable Housing Plan identified needs and strategies to address those needs. One of the tools to address the shortage of affordable housing is tax increment funds provided through urban renewal areas. V. THE ESTIMATED TOTAL COST OF EACH PROJECT AND THE SOURCES OF MONEYS TO PAY SUCH COSTS The estimated allocation of funds to specific projects shown in this Report are the best estimates of future expenditures at the time of preparation of the Amendment. The TCDA will be able to review and update the allocations on an annual basis when they prepare the annual budget. Nominal dollars are year of expenditure dollars inclusive of inflation, which is assumed to be 3.0% per year. Table 11 — Projects to be Completed Using Urban Renewal Area Funds Projects (nominal $) (constant 2020$) Public Spaces $ (7,461,020) $ (6,570,000) Street Improvements $ (3,883,900) $ (3,100,000) Streetscape $ (1,087,820) $ (725,000) Ped/Bike Facilities $ (1,999,605) $ (1,350,000) Public Facilities $ (6,556,200) $ (6,000,000) Parks $ (1,739,490) $ (1,150,000) Affordable Housing Dev Assistance $ (2,880,720) $ (1,950,000) Planning and Dev. Assistance $ (1,852,693) $ (1,480,000) Property Acquisition $ (5,649,780) $ (3,900,000) Administration $ (3,018,666) $ (2,120,642) Financing Fees $ (500,000) $ (380,103) Total Expenditures $ (36,629,894) $ (28,725,745) Source:Compiled by Tiberius Solutions LLC with input from City of Tigard. Report on Tigard City Center Urban Renewal Plan Amendment 19 VI. THE ANTICIPATED COMPLETION DATE FOR EACH PROJECT The projects will be ongoing and will be completed as directed by the TCDA. The Area is anticipated to complete all projects on or before FYE 2039 and have sufficient tax increment finance revenue to terminate the district in FYE 2049. Changes in market conditions could affect the assumed development schedule. However, the last day to incur debt, June 30, 2035, is to be set in the Plan and is part of the voter approval. Anticipated project completion dates are shown in Table 12. The TCDA may change the completion dates in their annual budgeting process or as project decisions are made in administering the urban renewal plan. Report on Tigard City Center Urban Renewal Plan Amendment 20 Table 12- Projects and Costs in Year of Expenditure Dollars Resources Total HE 2021 HE 2022 HE 2023 HE 2024 HE 2025 HE 2026 HE 2027 HE 2028 HE 2029 Beginning Balance 4,132,306 2,264,962 805,820 927,127 97,374 209,608 410,469 158,157 128,336 Interest Earnings 77,827 20,662 11,325 4,029 4,636 487 1,048 2,052 791 642 Transfer from Debt Service Fund 7,419,761 1,339,894 319,197 393,334 132,781 211,523 304,642 157,941 269,580 388,720 Bond/Loan Proceeds 25,000,000 - - - 5,800,000 - - 4,200,000 - - Total Resources 32,497,588 5,492,862 2,595,484 1,203,183 6,864,544 309,385 515,298 4,770,462 428,527 517,699 Expenditures(YOE$) Public Spaces (7,461,020) (1,591,000) (1,111,370) - (4,418,170) Street Improvements (3,883,900) (1,100,000) (515,000) Streetscape (1,087,820) (125,000) Ped/Bike Facilities (1,999,605) (184,485) Public Facilities (6,556,200) (6,556,200) Parks (1,739,490) Affordable Housing Dev Assistance (2,880,720) Planning and Dev.Assistance (1,852,693) (330,000) (77,250) (185,658) (95,010) Property Acquisition (5,649,780) Administration (3,018,666) (81,900) (86,044) (90,398) (94,970) (99,777) (104,829) (110,135) (115,706) (121,561) Financing Fees (500,000) (116,000) - (84,000) Total Expenditures (36,629,894) (3,227,900) (1,789,664) (276,056) (6,767,170) (99,777) (104,829) (4,612,305) (300,191) (216,571) Ending Balance 2,264,962 805,820 927,127 97,374 209,608 410,469 158,157 128,336 301,128 Ending Balance/Inflation Index 2,264,962 782,350 873,906 89,114 186,235 354,066 132,448 104,347 237,707 Source:Tiberius Solutions LLC with input from City of Tigard. Report on Tigard City Center Urban Renewal Plan Amendment 21 Table 12- Projects and Costs in Year of Expenditure Dollars, page 2 Resources FYE 2030 FYE 2031 FYE 2032 FYE 2033 FYE 2034 FYE 2035 FYE 2036 HE 2037 HE 2038 HE 2039 Beginning Balance 301,128 205,019 520,471 382,117 235,942 397,155 589,986 872,134 225,222 159,402 Interest Earnings 1,506 1,025 2,602 1,911 1,180 1,986 2,950 4,361 1,126 797 Transfer from Debt Service Fund 320,176 448,596 - - 315,615 469,810 450,932 491,965 535,797 581,601 Bond/Loan Proceeds 2,500,000 - - - - 12,500,000 - - - - Total Resources 3,122,810 654,640 523,073 384,028 552,737 13,368,951 1,043,867 1,368,460 762,145 741,800 Expenditures(YOE$) Public Spaces - - - - - - - - - (340,480) Street Improvements (2,268,900) Streetscape (962,820) Ped/Bike Facilities (1,815,120) Public Facilities Parks (1,739,490) Affordable Housing Dev Assistance (652,400) (1,815,120) (413,200) Planning and Dev.Assistance (521,920) (642,855) Property Acquisition (1,565,760) (4,084,020) Administration (127,711) (134,169) (140,956) (148,086) (155,582) (163,460) (171,733) (180,418) (189,543) (199,135) Financing Fees (50,000) (250,000) Total Expenditures (2,917,791) (134,169) (140,956) (148,086) (155,582) (12,778,965) (171,733) (1,143,238) (602,743) (539,615) Ending Balance 205,019 520,471 382,117 235,942 397,155 589,986 872,134 225,222 159,402 202,185 Ending Balance/Inflation Index 157,126 387,284 276,056 165,492 270,449 390,048 559,778 140,352 96,444 118,765 Source:Tiberius Solutions LLC with input from City of Tigard Report on Tigard City Center Urban Renewal Plan Amendment 22 Table 12- Projects and Costs in Year of Expenditure Dollars, page 3 HE HE HE HE HE HE HE HE HE HE Resources 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 Beginning Balance 202,185 447,015 404,097 359,609 313,504 265,732 216,241 164,977 111,887 56,913 Interest Earnings 1,011 2,235 2,020 1,798 1,568 1,329 1,081 825 559 285 Transfer from Debt Service Fund 287,657 - - - - - - - - - Bond/Loan Proceeds - - - - - - - - - - Total Resources 490,853 449,250 406,117 361,407 315,072 267,061 217,322 165,802 112,446 57,198 Expenditures(YOE$) Public Spaces - - - Street Improvements Streetscape Ped/Bike Facilities Public Facilities Parks Affordable Housing Dev Assistance Planning and Dev.Assistance Property Acquisition Administration (43,838) (45,153) (46,508) (47,903) (49,340) (50,820) (52,345) (53,915) (55,533) (57,198) Financing Fees Total Expenditures (43,838) (45,153) (46,508) (47,903) (49,340) (50,820) (52,345) (53,915) (55,533) (57,198) Ending Balance 447,015 404,097 359,609 313,504 265,732 216,241 164,977 111,887 56,913 Ending Balance/Inflation Index 254,927 223,740 193,307 163,616 134,643 106,376 78,793 51,881 25,621 Source:Tiberius Solutions LLC with input from City of Tigard Report on Tigard City Center Urban Renewal Plan Amendment 23 VII. THE ESTIMATED AMOUNT OF TAX INCREMENT REVENUES REQUIRED AND THE ANTICIPATED YEAR IN WHICH INDEBTEDNESS WILL BE RETIRED Table 13 shows the allocation of tax increment revenues to debt service. Table 13 shows no new debt being incurred after FYE 2035, as required by the Plan. It is anticipated that the TCDA will have sufficient resources to retire all debt by FYE 2049, which would then allow the TCDA to cease collecting tax increment revenues and close down the Area. The time frame for retiring all debt for the Area is not absolute; it may vary depending on the actual terms of the indebtedness incurred and the actual tax increment revenues received. If the economy is slower, it may take longer to repay all debt; if the economy is more robust than the projections, it may take a shorter time period. The TCDA may decide to issue bonds or take on loans on a different schedule, and that will alter the financing assumptions, however the proposed Plan Amendment prohibits any new debt after FYE 2035. The maximum indebtedness of the Plan is $42,800,000 (Forty Two Million Eight Hundred Thousand dollars and no cents). The City of Tigard estimates that $10,375,574 of indebtedness has been incurred by the TCDA for the Area through the end of FYE 2020, resulting in $11,624,426 in remaining capacity from the original indebtedness for the Area. The capacity for projects, programs and administration starting in FYE 2021 is $36,629,894. The estimated amount of tax increment revenues necessary to service all debt is $52,469,918. This number is higher than the amount allocated to projects as it includes debt service payments (principal and interest) to pay for new debt and debt that was already incurred in the past, including projects that were already funded in prior fiscal years. Information on scheduled debt service payments for all existing debt was provided by the City of Tigard Finance Department. Additionally, we assume the TCDA will undertake four additional borrowings in future years to finance the costs of projects identified in the Plan. For speculative future borrowings, the amounts, timing, and terms of the debt are unknown. The assumptions used in this Report are for planning purposes only, and subject to change based on market conditions. These assumptions were developed by Tiberius Solutions LLC and informed by conversations with staff from the City of Tigard Finance Department and their financial advisor. Borrowing assumptions in later years (FYE 2030 and beyond) are more conservative than in earlier years (FYE 2021 through FYE 2029), to reflect greater financial uncertainty in later years. Specific key assumptions for the financial analysis include: • Debt Service Coverage Ratio: Payments for future indebtedness are structured so that annual tax increment revenues are projected to equal or exceed 1.1 x total annual debt service payments through FYE 2029. In FYE 2030 and thereafter, the projected minimum debt service coverage ratio increases to 1.25. • New Debt FYE 2024: Assumes principal amount of$5,800,000 with 4.0% interest rate, 30-year amortization period, level annual debt service payments, and no prepayment penalties. Report on Tigard City Center Urban Renewal Plan Amendment 24 • New Debt FYE 2027: Assumes principal amount of$4,200,000 with 4.0% interest rate, 30-year amortization period, level annual debt service payments, and no prepayment penalties. • New Debt FYE 2030: Assumes principal amount of$2,500,000 with 4.5% interest rate, 20-year amortization period, level annual debt service payments, and no prepayment penalties. • New Debt FYE 2035: Assumes principal amount of$12,500,000 with 4.5% interest rate, 20-year amortization period, level annual debt service payments, and no prepayment penalties. For all of the assumed future borrowings, it is forecast that excess tax increment revenues in later years (FYE 2040 and beyond) would allow for additional principal payments, allowing for the loans to be repaid ahead of schedule. The assumptions used in this analysis present just one potential scenario for the long-term cash flow of the Area. If actual results differ from these assumptions, it could affect the ability of the TCDA to achieve these projects at these dollar amounts on this schedule. Based on these assumptions, we find the Amendment financially feasible. There is a positive fund balance shown in FYE 2932 and HE 2033. In these years the Area's outstanding debt has a balloon payment scheduled in HE 2034, so the Debt Service Fund needs to accumulative sufficient resources to be able to pay that oversized debt payment. Report on Tigard City Center Urban Renewal Plan Amendment 25 Table 13 -Tax Increment Revenues and Allocations to Debt Service Fund HE Resources Total 2020 HE 2021 HE 2022 HE 2023 HE 2024 HE 2025 HE 2026 HE 2027 HE 2028 Beginning Balance - 1,085,936 - - - - Interest Earnings 14,894 - 5,430 - - - - - - TIF:Current Year 51,685,982 581,197 646,142 716,136 788,323 863,038 940,367 1,031,836 1,126,965 1,238,265 TIF:Prior Years 783,936 9,177 8,718 9,692 10,742 11,825 12,946 14,106 15,478 16,904 Total Resources 52,484,812 590,374 1,746,226 725,828 799,065 874,862 953,312 1,045,942 1,142,442 1,255,169 Expenditures New Debt FYE 2024 (6,764,129) - - - - (335,415) (335,415) (335,415) (335,415) (335,415) New Debt FYE 2027 (4,614,842) (242,886) (242,886) New Debt FYE 2030 (3,267,236) New Debt FYE 2035 (13,527,860) Series 2019A (2,332,883) (124,746) (124,858) (124,922) (124,940) (124,910) (124,834) (124,710) (125,538) Series 2019B (5,226,787) (281,587) (281,773) (280,809) (281,726) (281,464) (281,052) (281,491) (281,750) Early Principal Payment New Debt FYE 2024 (2,539,427) New Debt FYE 2027 (2,082,879) New Debt FYE 2030 (515,784) New Debt FYE 2035 (4,688,785) Total Debt Service,Scheduled Only (35,733,738) (406,332) (406,630) (405,732) (742,081) (741,789) (741,300) (984,501) (985,589) Total Debt Service (45,560,613) (406,332) (406,630) (405,732) (742,081) (741,789) (741,300) (984,501) (985,589) Debt Service Coverage Ratio 1.59 1.76 1.94 1.16 1.27 1.39 1.14 1.26 Transfer to Capital Improvements Fund (7,419,761) (1,339,894) (319,197) (393,334) (132,781) (211,523) (304,642) (157,941) (269,580) Total Expenditures (52,980,374) (1,746,226) (725,828) (799,065) (874,862) (953,312) (1,045,942) (1,142,442) (1,255,169) Ending Balance Source:Tiberius Solutions LLC Report on Tigard City Center Urban Renewal Plan Amendment 26 Table 13 -Tax Increment Revenues and Allocations to Debt Service Fund, page 2 Resources FYE 2029 FYE 2030 HE 2031 HE 2032 FYE 2033 FYE 2034 HE 2035 HE 2036 FYE 2037 HE 2038 Beginning Balance 583,071 1,309,840 Interest Earnings 2,915 6,549 - TIF:CurrentYear 1,354,573 1,476,116 1,603,128 1,735,855 1,874,555 2,019,497 2,170,961 2,149,810 2,191,161 2,234,372 TIF:Prior Years 18,574 20,319 22,142 24,047 26,038 28,118 30,292 32,564 32,247 32,867 Total Resources 1,373,147 1,496,434 1,625,269 1,759,902 2,486,579 3,364,005 2,201,254 2,182,375 2,223,408 2,267,240 Expenditures New Debt HE 2024 (335,415) (335,415) (335,415) (335,415) (335,415) (335,415) (335,415) (335,415) (335,415) (335,415) New Debt HE 2027 (242,886) (242,886) (242,886) (242,886) (242,886) (242,886) (242,886) (242,886) (242,886) (242,886) New Debt FYE 2030 (192,190) (192,190) (192,190) (192,190) (192,190) (192,190) (192,190) (192,190) (192,190) New Debt HE 2035 (960,952) (960,952) (960,952) (960,952) Series 2019A (125,296) (125,007) (124,671) (125,287) (124,833) (708,331) Series 2019B (280,830) (280,760) (281,511) (281,053) (281,415) (1,569,568) Early Principal Payment New Debt HE 2024 New Debt HE 2027 New Debt HE 2030 New Debt HE 2035 Total Debt Service,Scheduled Only (984,427) (1,176,259) (1,176,673) (1,176,831) (1,176,739) (3,048,390) (1,731,443) (1,731,443) (1,731,443) (1,731,443) Total Debt Service (984,427) (1,176,259) (1,176,673) (1,176,831) (1,176,739) (3,048,390) (1,731,443) (1,731,443) (1,731,443) (1,731,443) Debt Service Coverage Ratio 1.38 1.25 1.36 1.48 1.59 0.66 1.25 1.24 1.27 1.29 Transfer to Capital Improvements Fund (388,720) (320,176) (448,596) - - (315,615) (469,810) (450,932) (491,965) (535,797) Total Expenditures (1,373,147) (1,496,434) (1,625,269) (1,176,831) (1,176,739) (3,364,005) (2,201,254) (2,182,375) (2,223,408) (2,267,240) Ending Balance 583,071 1,309,840 Source:Tiberius Solutions LLC Report on Tigard City Center Urban Renewal Plan Amendment 27 Table 13 -Tax Increment Revenues and Allocations to Debt Service Fund, page 3 HE Resources HE 2039 HE 2040 FYE 2041 FYE 2042 HE 2043 HE 2044 FYE 2045 FYE 2046 FYE 2047 HE 2048 2049 Beginning Balance Interest Earnings - - - - - - - - - - TIF:Current Year 2,279,528 2,326,716 2,376,028 2,427,558 2,481,407 2,537,680 2,596,484 2,657,935 2,612,500 2,612,500 35,347 TIF:Prior Years 33,516 34,193 34,901 35,640 36,413 37,221 38,065 38,947 39,869 39,188 39,188 Total Resources 2,313,044 2,360,909 2,410,928 2,463,198 2,517,821 2,574,901 2,634,550 2,696,883 2,652,369 2,651,688 74,535 Expenditures New Debt FYE 2024 (335,415) (335,415) (335,415) (335,415) (335,415) (55,838) - - - - - New Debt FYE 2027 (242,886) (242,886) (242,886) (242,886) (242,886) (242,886) (242,886) New Debt FYE 2030 (192,190) (192,190) (192,190) (192,190) (192,190) (192,190) (192,190) (192,190) New Debt FYE 2035 (960,952) (960,952) (960,952) (960,952) (960,952) (960,952) (960,952) (960,952) (960,952) (960,952) (74,535) Series 2019A Series 20196 Early Principal Payment New Debt FYE 2024 (341,809) (679,485) (731,755) (786,377) New Debt FYE 2027 (1,123,034) (959,845) New Debt FYE 2030 (278,676) (237,108) New Debt FYE 2035 (1,306,632) (1,691,417) (1,690,736) Total Debt Service,Scheduled Only (1,731,443) (1,731,443) (1,731,443) (1,731,443) (1,731,443) (1,451,867) (1,396,029) (1,153,142) (960,952) (960,952) (74,535) Total Debt Service (1,731,443) (2,073,252) (2,410,928) (2,463,198) (2,517,821) (2,574,901) (2,634,550) (2,696,883) (2,652,369) (2,651,688) (74,535) Debt Service Coverage Ratio 1.32 1.34 1.37 1.40 1.43 1.75 1.86 2.30 2.72 2.72 0.47 Transfer to URA Projects Fund (581,601) (287,657) - - - - - - - - - Total Expenditures (2,313,044) (2,360,909) (2,410,928) (2,463,198) (2,517,821) (2,574,901) (2,634,550) (2,696,883) (2,652,369) (2,651,688) (74,535) Ending Balance Source:Tiberius Solutions LLC Report on Tigard City Center Urban Renewal Plan Amendment 28 VIII. FINANCIAL ANALYSIS OF THE PLAN The estimated tax increment revenues through FYE 2049 as shown above, are based on projections of the assessed value of development within the Area and the consolidated tax rate that will apply in the Area. The analysis assumes average annual growth in assessed value starting at 3.5% and increasing to 4.0% in FYE 2026 and 4.5% in FYE 2028. These growth rates assume both the appreciation of existing property values and new construction activity in the Area. Table 15 shows the projected incremental assessed value, tax rates, and tax increment revenues each year, adjusted for discounts, delinquencies, and compression losses. These projections of increment are the basis for the projections in Tables 12 and 13. Gross TIF is calculated by multiplying the tax rate times the excess value. The tax rate is stated per thousand dollars of assessed value, so the calculation is "tax rate times excess value divided by one thousand". The consolidated tax rate includes only permanent rate levies. Revenue sharing is part of the 2009 legislative changes to urban renewal and comes into effect when a substantial amendment to increase maximum indebtedness is approved. Revenue sharing means that, at thresholds defined in ORS 457.470, the impacted taxing jurisdictions will receive a share of the incremental growth in the District. The first threshold is 10% of the original maximum indebtedness ($2,200,000). At the 10%threshold, the Agency will receive the full 10% of the initial maximum indebtedness plus 25% of the increment above the 10%threshold and the taxing jurisdictions will receive 75% of the increment above the 10%threshold. Revenue sharing targets are projected to be reached in HE 2036. If assessed value in the Area grows more quickly than projected, the revenue sharing triggers could be reached earlier. The second threshold is set at 12.5% of the maximum indebtedness ($2,750,000). If this threshold is met, revenue for the district would be capped at 12.5% of the maximum indebtedness, with all additional tax revenue being shared with affected taxing districts. This revenue sharing target is projected to be reached in FYE 2047. Projected Revenue Sharing is shown in Table 14. The revenue sharing shown under the "shared-voluntary" column in FYE 2049 is not a result of meeting the revenue sharing triggers, but a result of reaching the maximum indebtedness the final year of the District, estimated in FYE 2049. Report on Tigard City Center Urban Renewal Plan Amendment 29 Table 14 - Projected Revenue Sharing Gross TIF Shared - Shared - Final Gross FYE Mandatory Voluntary TIF for URA 2036 $188,874 $2,262,958 2037 $319,455 $2,306,485 2038 $455,912 $2,351,971 2039 $598,510 $2,399,503 2040 $747,525 $2,449,175 2041 $903,245 $2,501,082 2042 $1,065,972 $2,555,324 2043 $1,236,023 $2,612,008 2044 $1,413,725 $2,671,242 2045 $1,599,425 $2,733,142 2046 $1,793,480 $2,797,827 2047 $2,111,691 $2,750,000 2048 $2,394,243 $2,750,000 2049 $2,689,509 $2,712,792 $37,208 Total $17,517,592 $2,712,792 $33,177,924 Source:Tiberius Solutions LLC Report on Tigard City Center Urban Renewal Plan Amendment 30 Table 15- Projected Incremental Assessed Value, Tax Rates, and Tax Increment Revenues, page 1 Assessed Value Increment Tax Increment Finance Dollars Net Net Net FYE Total Frozen Base Used Unused Tax Rate Gross Adjustments (Current Year) (Prior Year) (Total) 2020 168,286,420 117,522,911 50,763,509 12.0517 611,787 (30,589) 581,197 9,177 590,374 2021 173,945,351 117,522,911 56,422,440 - 12.0546 680,150 (34,008) 646,142 8,718 654,860 2022 180,033,439 117,522,911 62,510,528 12.0592 753,827 (37,691) 716,136 9,692 725,828 2023 186,334,608 117,522,911 68,811,697 12.0592 829,814 (41,491) 788,323 10,742 799,065 2024 192,856,319 117,522,911 75,333,408 12.0592 908,461 (45,423) 863,038 11,825 874,862 2025 199,606,290 117,522,911 82,083,379 12.0592 989,860 (49,493) 940,367 12,946 953,312 2026 207,590,542 117,522,911 90,067,631 12.0592 1,086,144 (54,307) 1,031,836 14,106 1,045,942 2027 215,894,164 117,522,911 98,371,253 12.0592 1,186,279 (59,314) 1,126,965 15,478 1,142,442 2028 225,609,401 117,522,911 108,086,490 12.0592 1,303,437 (65,172) 1,238,265 16,904 1,255,169 2029 235,761,823 117,522,911 118,238,912 12.0592 1,425,867 (71,293) 1,354,573 18,574 1,373,147 2030 246,371,105 117,522,911 128,848,194 12.0592 1,553,806 (77,690) 1,476,116 20,319 1,496,434 2031 257,457,806 117,522,911 139,934,895 - 12.0592 1,687,503 (84,375) 1,603,128 22,142 1,625,269 2032 269,043,408 117,522,911 151,520,497 - 12.0592 1,827,216 (91,361) 1,735,855 24,047 1,759,902 2033 281,150,361 117,522,911 163,627,450 12.0592 1,973,216 (98,661) 1,874,555 26,038 1,900,593 2034 293,802,127 1 117,522,911 176,279,216 12.0592 2,125,786 (106,289) 2,019,497 28,118 2,047,615 Source:Tiberius Solutions LLC Notes:TIF is tax increment revenues Tax rates are expressed in terms of dollars per$1,000 of assessed value. Changes in total tax rates are due to increasing the Tualatin SWC rate to.0900 in FYE 2022 Report on Tigard City Center Urban Renewal Plan Amendment 31 Table 16— Projected Incremental Assessed Value, Tax Rates, and Tax Increment Revenues, page 2 Assessed Value Increment Tax Increment Finance Dollars Net Net Net FYE Total Frozen Base Used Unused Tax Rate Gross Adjustments (Current Year) (Prior Year) (Total) 2035 307,023,223 117,522,911 189,500,312 - 12.0592 2,285,222 (114,261) 2,170,961 30,292 2,201,254 2036 320,839,268 117,522,911 187,654,086 15,662,271 12.0592 2,262,958 (113,148) 2,149,810 32,564 2,182,375 2037 335,277,036 117,522,911 191,263,528 26,490,597 12.0592 2,306,485 (115,324) 2,191,161 32,247 2,223,408 2038 350,364,503 117,522,911 195,035,395 37,806,197 12.0592 2,351,971 (117,599) 2,234,372 32,867 2,267,240 2039 366,130,904 117,522,911 198,976,995 49,630,998 12.0592 2,399,503 (119,975) 2,279,528 33,516 2,313,044 2040 382,606,796 117,522,911 203,095,968 61,987,917 12.0592 2,449,175 (122,459) 2,326,716 34,193 2,360,909 2041 399,824,100 117,522,911 207,400,294 74,900,895 12.0592 2,501,082 (125,054) 2,376,028 34,901 2,410,928 2042 417,816,183 117,522,911 211,898,315 88,394,957 12.0592 2,555,324 (127,766) 2,427,558 35,640 2,463,198 2043 436,617,910 117,522,911 216,598,746 102,496,253 12.0592 2,612,008 (130,600) 2,481,407 36,413 2,517,821 2044 456,265,717 117,522,911 221,510,698 117,232,108 12.0592 2,671,242 (133,562) 2,537,680 37,221 2,574,901 2045 476,797,674 117,522,911 226,643,687 132,631,076 12.0592 2,733,142 (136,657) 2,596,484 38,065 2,634,550 2046 498,253,569 117,522,911 232,007,661 148,722,997 12.0592 2,797,827 (139,891) 2,657,935 38,947 2,696,883 2047 520,674,979 117,522,911 228,041,661 175,110,407 12.0592 2,750,000 (137,500) 2,612,500 39,869 2,652,369 2048 544,105,353 117,522,911 228,041,661 198,540,781 12.0592 2,750,000 (137,500) 2,612,500 39,188 2,651,688 2049 568,590,094 117,522,911 3,085,422 447,981,761 12.0592 37,208 (1,860) 35,347 39,188 74,535 Total 1 54,406,297 (2,720,315) 51,685,982 783,936 52,469,918 Source:Tiberius Solutions LLC Notes:TIF is tax increment revenues Tax rates are expressed in terms of dollars per$1,000 of assessed value. Changes in total tax rates are due to increasing the Tualatin SWC rate to.0900 in FYE 2022 Report on Tigard City Center Urban Renewal Plan Amendment 32 IX. IMPACT OF THE TAX INCREMENT FINANCING This section describes the impact of tax increment financing of the Amendment (increased maximum indebtedness), both until and after the indebtedness is repaid, upon all entities levying taxes upon property in the urban renewal area. The impact of tax increment financing on overlapping taxing districts consists of the property tax revenues foregone on permanent rate levies as applied to the growth in assessed value in the Area. The projections for impacts on due to the increase in maximum indebtedness in this Amendment and are shown in Tables 16a and 16b. The impact of the Amendment on overlapping taxing districts is measured by the increase in annual tax increment revenues that would be foregone by those districts until all debt is repaid on the increased maximum indebtedness of$20,800,000. The estimated impacts of the original maximum indebtedness prior to this Amendment are shown in Tables 16c and 16d. These show incurring the full amount of original maximum indebtedness of$22 million in the original time frame of FYE 2026 and paying off all debt by FYE 2036. The estimated impacts for the full (original plus the increased) maximum indebtedness from this Amendment are shown in Tables 16e and 16f. All debt is incurred by FYE 2035 and paid off by FYE 2049. The Tigard Tualatin School District and the Northwest Regional Education Service District are not directly affected by the tax increment financing, but the amounts of their taxes divided for the urban renewal plan are shown in the following tables. Under current school funding law, property tax revenues are combined with State School Fund revenues to achieve per-student funding targets. Under this system, property taxes foregone, due to the use of tax increment financing, are substantially replaced with State School Fund revenues, as determined by a funding formula at the State level. General obligation bonds will not be impacted by this Amendment, because only bonds approved by voters prior to October 6, 2001 are affected by this Plan, and there are none remaining. Local option levies are not impacted by this Amendment. Report on Tigard City Center Urban Renewal Plan Amendment 33 Table 17a - Projected Impact on Taxing District Permanent Rate Levies of Increased MI - General Government Soil/Water Tualatin Tigard Washington Conservation Port of Valley Fire City of Tualatin County Tualatin Metro Portland &Rescue Tigard Aquatic Subtotal FYE Permanent Permanent Permanent Permanent Permanent Permanent Permanent Gen.Govt. 2036 ($58,613) ($2,346) ($2,518) ($1,827) ($39,760) ($65,514) ($2,346) ($172,925) 2037 ($414,547) ($16,594) ($17,811) ($12,925) ($281,208) ($463,351) ($16,594) ($1,223,029) 2038 ($422,720) ($16,921) ($18,162) ($13,179) ($286,752) ($472,486) ($16,921) ($1,247,140) 2039 ($431,260) ($17,263) ($18,529) ($13,446) ($292,545) ($482,031) ($17,263) ($1,272,335) 2040 ($440,184) ($17,620) ($18,912) ($13,724) ($298,598) ($492,006) ($17,620) ($1,298,664) 2041 ($449,510) ($17,993) ($19,313) ($14,015) ($304,925) ($502,430) ($17,993) ($1,326,178) 2042 ($459,256) ($18,383) ($19,731) ($14,319) ($311,536) ($513,323) ($18,383) ($1,354,931) 2043 ($469,440) ($18,791) ($20,169) ($14,636) ($318,444) ($524,706) ($18,791) ($1,384,977) 2044 ($480,082) ($19,217) ($20,626) ($14,968) ($325,663) ($536,601) ($19,217) ($1,416,375) 2045 ($491,204) ($19,662) ($21,104) ($15,315) ($333,207) ($549,032) ($19,662) ($1,449,186) 2046 ($502,825) ($20,127) ($21,603) ($15,677) ($341,091) ($562,022) ($20,127) ($1,483,473) 2047 ($494,526) ($19,795) ($21,247) ($15,418) ($335,461) ($552,746) ($19,795) ($1,458,988) 2048 ($494,399) ($19,790) ($21,241) ($15,414) ($335,375) ($552,603) ($19,790) ($1,458,613) 2049 ($13,897) ($556) ($597) ($433) ($9,427) ($15,533) ($556) ($40,999) Total ($5,622,462) ($225,059) ($241,563) ($175,296) ($3,813,992) ($6,284,384) ($225,059) ($16,587,814) Source:Tiberius Solutions LLC Report on Tigard City Center Urban Renewal Plan Amendment 34 Table 16b- Projected Impact on Taxing District Permanent Rate Levies of Increased MI - Education NW Regional Portland Education Tigard/Tualatin Community Service School District College District Subtotal Total FYE Permanent Permanent Permanent Education All 2036 ($130,063) ($7,372) ($4,009) ($141,444) ($314,369) 2037 ($919,881) ($52,141) ($28,357) ($1,000,379) ($2,223,408) 2038 ($938,015) ($53,169) ($28,916) ($1,020,100) ($2,267,240) 2039 ($956,965) ($54,243) ($29,500) ($1,040,709) ($2,313,044) 2040 ($976,769) ($55,366) ($30,110) ($1,062,245) ($2,360,909) 2041 ($997,463) ($56,539) ($30,748) ($1,084,750) ($2,410,928) 2042 ($1,019,088) ($57,764) ($31,415) ($1,108,268) ($2,463,198) 2043 ($1,041,687) ($59,045) ($32,112) ($1,132,844) ($2,517,821) 2044 ($1,065,302) ($60,384) ($32,840) ($1,158,526) ($2,574,901) 2045 ($1,089,981) ($61,783) ($33,600) ($1,185,364) ($2,634,550) 2046 ($1,115,769) ($63,245) ($34,395) ($1,213,409) ($2,696,883) 2047 ($1,097,353) ($62,201) ($33,828) ($1,193,381) ($2,652,369) 2048 ($1,097,071) ($62,185) ($33,819) ($1,193,075) ($2,651,688) 2049 ($30,837) ($1,748) ($951) ($33,535) ($74,535) Total ($12,476,244) ($707,184) ($384,600) ($13,568,028) ($30,155,842) Source:Tiberius Solutions LLC.Please refer to the explanation of the schools funding in the preceding section Report on Tigard City Center Urban Renewal Plan Amendment 35 Table 16c- Projected Impact on Taxing District Permanent Rate Levies of Original MI - General Government Soil/Water Tualatin Tigard Washington Conservation Port of Valley Fire City of Tualatin County Tualatin Metro Portland &Rescue Tigard Aquatic Subtotal FYE Permanent Permanent Permanent Permanent Permanent Permanent Permanent Gen.Govt. 2020 ($110,142) ($4,041) ($4,732) ($3,434) ($74,715) ($123,109) ($4,409) ($324,582) 2021 ($122,143) ($4,639) ($5,248) ($3,808) ($82,856) ($136,523) ($4,889) ($360,106) 2022 ($135,328) ($5,417) ($5,814) ($4,219) ($91,800) ($151,260) ($5,417) ($399,256) 2023 ($148,983) ($5,964) ($6,401) ($4,645) ($101,063) ($166,523) ($5,964) ($439,542) 2024 ($163,115) ($6,529) ($7,008) ($5,086) ($110,649) ($182,319) ($6,529) ($481,235) 2025 ($177,742) ($7,115) ($7,636) ($5,542) ($120,571) ($198,667) ($7,115) ($524,388) 2026 ($195,013) ($7,806) ($8,379) ($6,080) ($132,287) ($217,971) ($7,806) ($575,341) 2027 ($213,005) ($8,526) ($9,152) ($6,641) ($144,492) ($238,081) ($8,526) ($628,423) 2028 ($234,022) ($9,368) ($10,055) ($7,296) ($158,749) ($261,573) ($9,368) ($690,430) 2029 ($256,019) ($10,248) ($11,000) ($7,982) ($173,670) ($286,160) ($10,248) ($755,327) 2030 ($279,006) ($11,168) ($11,987) ($8,699) ($189,263) ($311,852) ($11,168) ($823,143) 2031 ($303,026) ($12,130) ($13,019) ($9,448) ($205,558) ($338,701) ($12,130) ($894,011) 2032 ($328,128) ($13,134) ($14,098) ($10,230) ($222,585) ($366,758) ($13,134) ($968,069) 2033 ($354,360) ($14,184) ($15,225) ($11,048) ($240,380) ($396,078) ($14,184) ($1,045,459) 2034 ($381,771) ($15,282) ($16,402) ($11,903) ($258,974) ($426,717) ($15,282) ($1,126,331) 2035 ($410,417) ($16,428) ($17,633) ($12,796) ($278,406) ($458,734) ($16,428) ($1,210,843) 2036 ($348,284) ($13,941) ($14,964) ($10,859) ($236,258) ($389,287) ($13,941) ($1,027,533) Total ($4,160,505) ($165,921) ($178,751) ($129,715) ($2,822,274) ($4,650,313) ($166,539) ($12,274,019) Source:Tiberius Solutions LLC. Report on Tigard City Center Urban Renewal Plan Amendment 36 Table 16d - Projected Impact on Taxing District Permanent Rate Levies of Original MI - Education NW Regional Portland Education Tigard/Tualatin Community Service School District College District Subtotal Total FYE Permanent Permanent Permanent Education All 2020 ($244,405) ($13,853) ($7,534) ($265,793) ($590,374) 2021 ($271,036) ($15,363) ($8,355) ($294,754) ($654,860) 2022 ($300,294) ($17,021) ($9,257) ($326,572) ($725,828) 2023 ($330,594) ($18,739) ($10,191) ($359,524) ($799,065) 2024 ($361,953) ($20,516) ($11,158) ($393,627) ($874,862) 2025 ($394,410) ($22,356) ($12,158) ($428,924) ($953,312) 2026 ($432,733) ($24,528) ($13,340) ($470,601) ($1,045,942) 2027 ($472,658) ($26,791) ($14,570) ($514,019) ($1,142,442) 2028 ($519,296) ($29,435) ($16,008) ($564,739) ($1,255,169) 2029 ($568,106) ($32,202) ($17,513) ($617,821) ($1,373,147) 2030 ($619,113) ($35,093) ($19,085) ($673,291) ($1,496,434) 2031 ($672,416) ($38,114) ($20,728) ($731,258) ($1,625,269) 2032 ($728,117) ($41,271) ($22,445) ($791,833) ($1,759,902) 2033 ($786,324) ($44,571) ($24,240) ($855,135) ($1,900,593) 2034 ($847,151) ($48,019) ($26,115) ($921,284) ($2,047,615) 2035 ($910,715) ($51,622) ($28,074) ($990,411) ($2,201,254) 2036 ($772,842) ($43,807) ($23,824) ($840,472) ($1,868,005) Total ($9,232,161) ($523,301) ($284,596) ($10,040,058) ($22,314,077) Source:Tiberius Solutions LLC.Please refer to the explanation of the schools funding in the preceding section Report on Tigard City Center Urban Renewal Plan Amendment 37 Table 16e- Projected Impact on Taxing District Permanent Rate Levies of Full Impact (Original and Increased) MI - General Government Soil/Water Tualatin Tigard Washington Conservation Port of Valley Fire Tualatin County Tualatin Metro Portland &Rescue City of Tigard Aquatic Subtotal FYE Permanent Permanent Permanent Permanent Permanent Permanent Permanent Gen.Govt. 2020 ($110,142) ($4,041) ($4,732) ($3,434) ($74,715) ($123,109) ($4,409) ($324,582) 2021 ($122,143) ($4,639) ($5,248) ($3,808) ($82,856) ($136,523) ($4,889) ($360,106) 2022 ($135,328) ($5,417) ($5,814) ($4,219) ($91,800) ($151,260) ($5,417) ($399,256) 2023 ($148,983) ($5,964) ($6,401) ($4,645) ($101,063) ($166,523) ($5,964) ($439,542) 2024 ($163,115) ($6,529) ($7,008) ($5,086) ($110,649) ($182,319) ($6,529) ($481,235) 2025 ($177,742) ($7,115) ($7,636) ($5,542) ($120,571) ($198,667) ($7,115) ($524,388) 2026 ($195,013) ($7,806) ($8,379) ($6,080) ($132,287) ($217,971) ($7,806) ($575,341) 2027 ($213,005) ($8,526) ($9,152) ($6,641) ($144,492) ($238,081) ($8,526) ($628,423) 2028 ($234,022) ($9,368) ($10,055) ($7,296) ($158,749) ($261,573) ($9,368) ($690,430) 2029 ($256,019) ($10,248) ($11,000) ($7,982) ($173,670) ($286,160) ($10,248) ($755,327) 2030 ($279,006) ($11,168) ($11,987) ($8,699) ($189,263) ($311,852) ($11,168) ($823,143) 2031 ($303,026) ($12,130) ($13,019) ($9,448) ($205,558) ($338,701) ($12,130) ($894,011) 2032 ($328,128) ($13,134) ($14,098) ($10,230) ($222,585) ($366,758) ($13,134) ($968,069) 2033 ($354,360) ($14,184) ($15,225) ($11,048) ($240,380) ($396,078) ($14,184) ($1,045,459) 2034 ($381,771) ($15,282) ($16,402) ($11,903) ($258,974) ($426,717) ($15,282) ($1,126,331) 2035 ($410,417) ($16,428) ($17,633) ($12,796) ($278,406) ($458,734) ($16,428) ($1,210,843) 2036 ($406,897) ($16,287) ($17,482) ($12,686) ($276,018) ($454,800) ($16,287) ($1,200,458) 2037 ($414,547) ($16,594) ($17,811) ($12,925) ($281,208) ($463,351) ($16,594) ($1,223,029) 2038 ($422,720) ($16,921) ($18,162) ($13,179) ($286,752) ($472,486) ($16,921) ($1,247,140) 2039 ($431,260) ($17,263) ($18,529) ($13,446) ($292,545) ($482,031) ($17,263) ($1,272,335) 2040 ($440,184) ($17,620) ($18,912) ($13,724) ($298,598) ($492,006) ($17,620) ($1,298,664) 2041 ($449,510) ($17,993) ($19,313) ($14,015) ($304,925) ($502,430) ($17,993) ($1,326,178) 2042 ($459,256) ($18,383) ($19,731) ($14,319) ($311,536) ($513,323) ($18,383) ($1,354,931) 2043 ($469,440) ($18,791) ($20,169) ($14,636) ($318,444) ($524,706) ($18,791) ($1,384,977) 2044 ($480,082) ($19,217) ($20,626) ($14,968) ($325,663) ($536,601) ($19,217) ($1,416,375) 2045 ($491,204) ($19,662) ($21,104) ($15,315) ($333,207) ($549,032) ($19,662) ($1,449,186) 2046 ($502,825) ($20,127) ($21,603) ($15,677) ($341,091) ($562,022) ($20,127) ($1,483,473) 2047 ($494,526) ($19,795) ($21,247) ($15,418) ($335,461) ($552,746) ($19,795) ($1,458,988) 2048 ($494,399) ($19,790) ($21,241) ($15,414) ($335,375) ($552,603) ($19,790) ($1,458,613) 2049 ($13,897) ($556) ($597) ($433) ($9,427) ($15,533) ($556) ($40,999) Total ($9,782,967) ($390,980) ($420,314) ($305,011) ($6,636,266) ($10,934,697) ($391,597) ($28,861,832) Source:Tiberius Solutions LLC Report on Tigard City Center Urban Renewal Plan Amendment 38 Table 16f- Projected Impact on Taxing District Permanent Rate Levies of Full MI (Original and Increased) - Education NW Regional Portland Education Tigard/Tualatin Community Service School District College District Subtotal Total HE Permanent Permanent Permanent Education All 2020 ($244,405) ($13,853) ($7,534) ($265,793) ($590,374) 2021 ($271,036) ($15,363) ($8,355) ($294,754) ($654,860) 2022 ($300,294) ($17,021) ($9,257) ($326,572) ($725,828) 2023 ($330,594) ($18,739) ($10,191) ($359,524) ($799,065) 2024 ($361,953) ($20,516) ($11,158) ($393,627) ($874,862) 2025 ($394,410) ($22,356) ($12,158) ($428,924) ($953,312) 2026 ($432,733) ($24,528) ($13,340) ($470,601) ($1,045,942) 2027 ($472,658) ($26,791) ($14,570) ($514,019) ($1,142,442) 2028 ($519,296) ($29,435) ($16,008) ($564,739) ($1,255,169) 2029 ($568,106) ($32,202) ($17,513) ($617,821) ($1,373,147) 2030 ($619,113) ($35,093) ($19,085) ($673,291) ($1,496,434) 2031 ($672,416) ($38,114) ($20,728) ($731,258) ($1,625,269) 2032 ($728,117) ($41,271) ($22,445) ($791,833) ($1,759,902) 2033 ($786,324) ($44,571) ($24,240) ($855,135) ($1,900,593) 2034 ($847,151) ($48,019) ($26,115) ($921,284) ($2,047,615) 2035 ($910,715) ($51,622) ($28,074) ($990,411) ($2,201,254) 2036 ($902,904) ($51,179) ($27,833) ($981,917) ($2,182,375) 2037 ($919,881) ($52,141) ($28,357) ($1,000,379) ($2,223,408) 2038 ($938,015) ($53,169) ($28,916) ($1,020,100) ($2,267,240) 2039 ($956,965) ($54,243) ($29,500) ($1,040,709) ($2,313,044) 2040 ($976,769) ($55,366) ($30,110) ($1,062,245) ($2,360,909) 2041 ($997,463) ($56,539) ($30,748) ($1,084,750) ($2,410,928) 2042 ($1,019,088) ($57,764) ($31,415) ($1,108,268) ($2,463,198) 2043 ($1,041,687) ($59,045) ($32,112) ($1,132,844) ($2,517,821) 2044 ($1,065,302) ($60,384) ($32,840) ($1,158,526) ($2,574,901) 2045 ($1,089,981) ($61,783) ($33,600) ($1,185,364) ($2,634,550) 2046 ($1,115,769) ($63,245) ($34,395) ($1,213,409) ($2,696,883) 2047 ($1,097,353) ($62,201) ($33,828) ($1,193,381) ($2,652,369) 2048 ($1,097,071) ($62,185) ($33,819) ($1,193,075) ($2,651,688) 2049 ($30,837) ($1,748) ($951) ($33,535) ($74,535) Total ($21,708,405) ($1,230,485) ($669,196) ($23,608,086) ($52,469,918) Source:Tiberius Solutions LLC.Please refer to the explanation of the schools funding in the preceding section Report on Tigard City Center Urban Renewal Plan Amendment 39 Table 18 shows the projected increased revenue to the taxing jurisdictions after tax increment proceeds are projected to be terminated. These projections are for FYE 2050. Table 18—Additional Revenues Obtained after Termination of Tax Increment Financing Tax Revenue in FYE 2050(year after termination) Tax From Frozen From Excess Taxing District Rate Base Value Total General Government Washington County 2.2484 $264,239 $1,071,708 $1,335,947 Soil and Water Conservation Tualatin 0.0900 $10,577 $42,899 $53,476 Metro 0.0966 $11,353 $46,044 $57,397 Port of Portland 0.0701 $8,239 $33,413 $41,652 Tualatin Valley Fire& Rescue 1.5252 $179,246 $726,993 $906,239 City of Tigard 2.5131 $295,347 $1,197,879 $1,493,226 Tigard Tualatin Aquatic 0.0900 $10,577 $42,899 $53,476 Subtotal 6.6334 $779,578 $3,161,835 $3,941,413 Education Tigard/Tualatin School District 4.9892 $586,345 $2,378,121 $2,964,466 Portland Community College 0.2828 $33,236 $134,798 $168,034 NW Regional Education Service District 0.1538 $18,075 $73,309 $91,384 Subtotal 5.4258 $637,656 $2,586,228 $3,223,884 Total 12.0592 $1,417,234 $5,748,063 $7,165,297 Source:Tiberius Solutions LLC Report on Tigard City Center Urban Renewal Plan Amendment 40 X. COMPLIANCE WITH STATUTORY LIMITS ON ASSESSED VALUE AND SIZE OF URBAN RENEWAL AREA State law limits the percentage of both a municipality's total assessed value and the total land area that can be contained in an urban renewal area at the time of its establishment to 15%for municipalities having a population of more than 50,000 according to the latest state census. Tigard's population eclipsed the 50,000 mark in 2019 as shown by the Portland State University Annual Population Report Tables. As noted below, the frozen base, including all real, personal, personal, manufactured, and utility properties in the Area, is $117,522,911. The total assessed value of the City of Tigard, minus excess value of the existing urban renewal areas is $6,954,974,807. Excess value is the assessed value created above the frozen base in the urban renewal area. The total urban renewal assessed value is 7.8% of the total assessed value of the City, minus excess value. This is below the 15% statutory limitation. The Tigard City Center Urban Renewal Area contains 228.96 acres, including right-of-way, and the City of Tigard contains 8,129 acres. After accounting for the acreage in the potential Tigard Triangle Urban Renewal Area, 9.56 % of the City's acreage would be in an urban renewal area. This is below the 15% statutory limitation. Table 19— Urban Renewal Area Conformance with Assessed Value and Acreage Limits Assessed Value UR Excess Acreage City of Tigard $7,046,400,810 8,129 City of Tigard minus UR excess $6,954,974,807 Tigard City Center $117,522,911 $50,763,509 228.96 Tigard Triangle $424,744,405 $40,662,494 547.90 City Center Plus Tigard Triangle $542,267,316 $91,426,003 776.86 Percentage in Urban Renewal 7.8% 9.56% Source:Compiled by Elaine Howard Consulting,LLC with data from City of Tigard and Washington County Department of Assessment and Taxation(FYE 2020) XI. RELOCATION REPORT There is no relocation report required for the Plan. No specific acquisitions that would result in relocation benefits have been identified, however, there are plans to acquire land for infrastructure which may trigger relocation benefits in the future in the Area. Report on Tigard City Center Urban Renewal Plan Amendment 41 Initiate Public Review : City Center Urban Renewal Plan Substantial Amendment YL, .......... i �� „_ . � �� ., � � 'd�rur.R iii r�� f•1�" 11 V '•�e � �� b r/ �. . - �i - ��a i TIGARD Overview of Tigard Accomplishments Since 2006 • $ 48.8M - Private investment into property improvements and new construction (3x the amount of investment in the 12 years preceding urban renewal). • 64% - Increase in assessed value between 2006 — 2019 (compared to a 56% increase in assessed value citywide). • 28 - Matching grants for building improvements to downtown businesses. • $2.60:$1.00 - Leverage ratio of private to public investment into urban renewal tenant and storefront improvements. • 234 - New apartments constructed. • 32% - Increase in housing in City Center URA (compared to a 12% increase in the rest of Tigard). Proposed Amendment • The TCDA is interested in increasing the Maximum Indebtedness of the City Center Urban Renewal Area by $20,800,000 to allow for allocating additional funds to projects in the Plan . • This brings the total MI to $42,,800,.000. • New Debt can issued until 2036. • Plan originally approved by voters in 2006 with a substantial amendment to add acreage in 2017. Approval Process TCDA- initiate the public review process Maximum Indebtedness increases, of this amount, must be approved by taxing districts representing 75% of the permanent rate levy by resolution of the Board . • City of Tigard • Tigard-Tualatin School District • Tualatin Valley Fire and Rescue • Washington County This increase in MI must also be approved by Tigard voters. CRASH COURSE UR 101 i 1 REGULAR TAXING JURISDICTIONS City, County, Etc. Elaine Howard Consulting LLC � CRASH COURSE UR 101 S Si PROPERTY TAX REVENUE • PROPERTY TAX REGULAR TAXING INCREASES JURISDICTIONS 1. 3%Appreciation 2. Substantial Improvements City, County, Ete. k1i Elaine Howard Consulting LLC CRASH COURSE U R 101 CITY ........... MR PROPERTY TAX REGULAR TAXING INCREASES JURISDICTIONS 1. 3%Appreciation City, County, Etc. 2. Substantial Improvements Elaine Howard Consulting LLC Tax Increment Finance Over Time Increased tax Depressed revenues to all conditions ;e U) z - 0LU J J ■ W • LIJZ W ■ ■ W LU I Q� INCREMENT • Q ■ ■ ■ $2 FROZEN • ii , Attwell off Main Main St an Burn am I m ro ve m e n t s p a _ : .. Tigard Heritage T & Rotary 3 L.. 11 n City Center Futures Project t �— l�� _ ail► �� + �urwl` ,�_�GY�� dilU�lll SII Ie^rl � -1 81 W :moi. �■s._�Ir- �� yin n�' ��I •..G�I"y 1 . I�`,� •� .. ,. ��I � �- -'�- Tey,•- .r i' � + �i ��il! (� Ql�� s n �� ■'o'"s��a.' �I � !,� a �{�� 1 VIA ��/ ,',/'Ifs � �_' •_iI-�� _. C/'s-� ■u.Y/■I�� j��11��il��lff _�� — F'��►��A,�'� i�� moi' ii'' '1,�� -l- � / I1.1 �-_ I .�� , y/ i I�� y /� e� � n'� iiI]]II''IIS�`` ■AGI � I IIN ,��' I�- I:.�;? I :.w �i�� fel• �II ��_ IIID � ��,' � , ��+?-�dC' laal •; �n �4;II � o�� ililill�' •�°�" -� _ A itiona Pro � ects Com ete J p • Ash Avenue Connection • Burnham Street Public Parking Lot Ash Avenue f: R Park . Fann • Regional Trail After Undercrossing Lights Fa�ade Interior Improvement Active Pro � ects J Main Street at Fanno Creek Development - r» .gin III_ ri011_�' ■" ' .� �� I �''�'� ��'•3 ` ' �a7�4Y�'R ��.� S i(.i� r��,f�'ai i f'' � � ' � lilliilr,�ri'�M��1�ii_{`!!r� Active Pro � ects J w �C ti .lue Projects Supported by Additional Funds from the Substantial Amendment • Construction of New Streets to Provide Connectivity • Tigard Heritage Trail Continuation to Hall Blvd . • Fanno Creek Trail Improvements • Universal Plaza (shade structures, community room, final features) • Shared Parking Structure • Affordable Housing and Mixed-Use Development Assistance • Pedestrian Safety and Streetscape Improvements • Land Acquisition Impacts to Taxing Districts • Provides projects which will enhance development opportunities in Area • Key site of existing City Hall to be developed into taxable uses • Provides more affordable housing • Extends division of taxes from FYE 2036 to FYE 2049 Process and Timeline 2020 ➢ December 9- TCAC recommendation ➢ December 15 - TCDA Board 2021 ➢January 4 - Planning Commission ➢ Before February 9 - Resolutions by Taxing Districts ➢ February 9 - City Council Hearing ➢Way 18 — Ballot Measure goes before Tigard Voters i Lk Questions ? Where can I learn more ? • Contact staff: Sean@tigard -or. gov LaurenS@tigard -orgov • Visit website www.tigard -or. gov/urbanrenewal w AIS-4469 9. Workshop Meeting Meeting Date: 12/15/2020 Length (in minutes): 30 Minutes Agenda Title: Traffic Concern Program Update and 20 MPH Speed Zones Prepared For: Tegan Enloe, Public Works Submitted By: Tegan Enloe, Public Works Item Type: Update, Discussion, Direct Staff Meeting Type: Council Workshop Mtg. Public Hearing: No Publication Date: Information ISSUE Staff will provide a briefing to the council about their traffic concern review process and the potential for 20 MPH speed zones on certain residential streets. STAFF RECOMMENDATION / ACTION REQUEST Provide staff direction about establishing 20 MPH speed zones on certain residential streets. KEY FACTS AND INFORMATION SUMMARY Staff has been working on updating procedures related to how community member requests about traffic safety concerns are processed. As part of the update, staff will be establishing ranking, prioritization, and equity review for allocation of staff resources and capital funds associated with improvements to address traffic safety concerns. This presentation will include information on the updated process. One of the outcomes of recent legislative changes is that the city can establish speed limits on residential streets. Staff will discuss this with the council, specifically to seek direction regarding implementation of 20 mph speed zones on certain residential streets meeting the state's minimum requirements. Staff would need to prepare an ordinance for Council consideration at a future business meeting. OTHER ALTERNATIVES Council could direct staff to take no action regarding 20 MPH zones. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS Lower travel speeds promote better walking and biking conditions for other travel modes, which supports Tigard's strategic plan and council goals, specifically Goal 5: Enhance walkability and pedestrian connectivity. DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Presentation -- City OfTlg'ard Respect and Care Do the Right Thing Get it Done 1 MPH Speed Zones in Tigard TIGARD City olTigard Presentation Outline • Why? • Lessons from Others • Updated ORS 0 Police • Where in Tigard Qualifies Next Steps • Recommended Implementation Plan • Public Engagement City olTigard Why? • Updating the Traffic Concern Policy • Outcome of wanting to implement: ► neighborhood traffic calming / complete streets • State of Oregon updated their ORS recently to allow • Supports Strategic Plan and Complete Streets Policy • Increases pedestrian survivability City olTigard Updated ORS • ORS 810.180(11) • A City can establish a speed 5 MPH below the statutory speed if it meets the following: / Currently a statutory 25 mph zone / Not an arterial / Located in a "residence district" City ofTigard-r Where in Tigard Qualifies ti R 017 Eligible Residendal Roads I ~�`• ! 'en..a.p 4`3 1�6111�.f��}'�ifN�t}'�9dbimh@rl /rI� � �� "• µ..+•Iw� �Y6'•COkl IrldIC�• �'L .,j I r+� � iik..Y ..... I ,� jr � Y " 1�999"'666fffrrr 1, OGIA7 •L .i,4 Is kt rr�U + FJL WrIt-ft r w 10 aslsWl+ + �]+ wu"u' f* ul. e,urtuuuor ¢k„rl�JT.rr} 1' i+•• / ar'*'� \ .m 1. r.•' 4' 14 I , r I�5y14r I 6 r i Y' uuu r r��„ { „w,wr i' {ti i r �'K4r� �••,+�� . - —r x� Y y f� � 4 •,F e•,16 I .. .__ uH City olTigard Recommended Implementation Plan • Staff recommends Council adopt an ordinance that allows implementation of the 20 MPH program on all eligible streets in Tiga rd • Full roll out will require significant staff time and capital funds, and would take several years • Staff recommend targeted implementation in key locations as part of a first phase while scoping is completed for further priorities City wide City olTigard Recommended Implementation Plan • Where to start first: / Data driven approach & response to community feedback / Existing 20 MPH School zones / Safe Routes to School walk/roll routes / Trail connections / Areas with documented behavioral issues or complex features City ofTigard Recommended Implementation Plan Tigard 20 MPH Pilot Program Proposed rpitial Streets - - 10 J � U r, f — s 1 II i I; , �I I , J , t , - 5 a L I M , - City olTigard Community Engagement • City-wide community engagement website & survey • First phase locations: / Post cards / "20 is Plenty" signs / Advanced project signs City ofTigard Lessons from Others • Community response • Impacts to drive time / On SW 79th Ave between Bonita and Durham, a change from 25 MPH to 20 MPH adds less than 27 seconds of drive time / For an average city block of 500 feet, that adds 3.5 seconds of drive time • Costs City olTigard Police • Support safer streets in Tigard, including reduced speed limits where applicable • Will take an education (warnings) or enforcement (tickets) approach to speeding issues • At this time, Police Staffing is not sufficient to support targeted enforcement for multiple locations if the change is enacted simultaneously across the City / Police Staff will still respond to specific complaints supported by data that indicates enforcement missions will likely lead to effective change City olTigard Next Steps • Prepare ordinance for Council (February) • Public engagement website • Begin implementation • Before/After studies City ofTigard Before/After Studies • Tom Petterson has been a volunteer for Tigard for 16 years. • He collects traffic and speed counts annually to help Tigard ,tet manage its transportation system • Once implemented, the City can compare new data collected with the 20 MPH program deployment to the historic data Tom has collected. City ofTigard QUESTIONS?