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CAFR Report - 1984-1985 T CITY OF TIGARD 1985 CE-DO NOT CIRCULATE CITY OF TIGARD, OREGON COMPREHENSIVE ANNUAL FINANCIAL REPORT fiscal year ended June 30, 1985 TK ARU.PUBLIC LIBRARY 13125 S W HALL BLVD TIGARD OR 97223 684-6537 Coopers REFERENCE &Lyprand ANNUAL .I:.L:'L.I..1.3 REFERENCE-DO NOT CIRCULATE CITY OF TIGARD, OREGON COMPREHENSIVE ANNUAL FINANCIAL REPORT fiscal year ended June 30, 1985 prepared by the City of Tigard - Department of Finance Jerri L. Widner, Director of Finance TIGARD PUBLIC LIBRARY 13125 S W HALL BLVD TIGARD OR 97223 634-6537 .r CITY OF TIGARD, OREGON TABLE OF CONTENTS Page INTRODUCTORY SECTION: Letter of Transmittal i-vii Mayor and City Council Members viii Organization Chart ix Certificate of Conformance in Financial Reporting x FINANCIAL SECTION: ACCOUNTANTS ' REPORT 1 COMBINED FINANCIAL STATEMENTS (General Purpose Financial Statements) : Combined Balance Sheet - All Fund Types and Account Groups 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Govern- mental Fund Types 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types 4 Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balance - All Proprietary Fund Types and Similar Trust Fund 5 Combined Statement of Changes in Financial Position - All Proprietary Fund Types and Similar Trust Fund 6 + Notes to Combined Financial Statements 7 SUPPLEMENTARY DATA (Combining and Individual Fund and Account Group Statements and Other Financial Schedules) : General Fund: 40 Statement of Revenues and Expenditures - Budget and Actual 23 Special Revenue Funds: Combining Balance Sheet 24 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Generally Accepted Accounting Principles Basis 25 Statements of Revenues and Expenditures - Budget and Actual: Federal Revenue Sharing Fund 26 State Tax Street Fund 27 Streets SDC Fund 28 Parks SDC Fund 29 County Road Levy Fund 30 County Gas Tax Fund 31 CITY OF TIGARD, OREGON TABLE OF CONTENTS, Continued Page FINANCIAL SECTION, Continued: SUPPLEMENTARY DATA (Combining and Individual Fund and Account Group Statements and Other Financial Schedules) , Continued: Special Assessments Fund: Statement of Revenues and Expenditures - Budget and Actual 32 Enterprise Funds: Combining Balance Sheet 33 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 34 Combining Statement of Changes in Financial Position 35 Statements of Revenues and Expenses - Budget and Actual: Sewer Fund 36 Storm Drainage Fund 37 General Fixed Assets Account Group: Statement of General Fixed Assets - By Sources 38 Statement of Changes in General Fixed Assets - By Sources 39 Statement of General Fixed Assets - By Function and Activity 40 Statement of Changes in General Fixed Assets - By Function and Activity 41 Other Schedules: Schedule of Property Tax Transactions and Outstanding Balances 42 Schedule of Bond and Bond Interest Transactions 43 Schedule of Future Debt Service Requirements of Bancroft Improvement Bonds 44 Schedule of Future Debt Service Requirements of General Obligation Bonds 45 STATISTICAL SECTION: General Governmental Expenditures By Function - Budgetary Basis - for the last ten fiscal years 46 General Governmental Revenues By Source - Budgetary Basis - for the last ten fiscal years 47 Property Tax Levies and Collections - for the last ten fiscal years 48 Assessed and Estimated Actual Value of Taxable Property - for the last ten fiscal years 49 .r CITY OF TIGARD, OREGON TABLE OF CONTENTS, Continued w Page STATISTICAL SECTION, Continued: Property Tax Rates - All Overlapping w Governments - for the last ten fiscal years 50 Special Assessment Collections - for the last ten fiscal years 51 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita - for the last ten fiscal years 52 + Computation of Legal Debt Margin 53 Computation of Overlapping General Obligation Debt 54 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures - for the last ten fiscal +► years 55 Property Value, Construction and Bank Deposits - for the last ten fiscal years 56 Principal Taxpayers 57 Demographic Statistics S8 Miscellaneous Statistical Data 59 A. AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS : Introductory Comments 60 Internal Accounting Control 61 Accounting Records 62 .. Compliance with Legal Requirements : Budgeting and Tax Levies 62 Indebtedness 62 Adequacy of Collateral Securing Depository Balances 62 Programs Funded from Outside Sources : Ar Federal and State Grants 63 Federal Revenue Sharing 64 Insurance and Fidelity Bond Coverage 64 Cost Accounting System 64 s s w wir ar gr INTRODUCTORY SECTION MI IF 7 CITYOF TIGARD WASHINGTON COUNTY,OREGON September 30, 1985 Mayor John Cook and Members of the City Council We are pleased to submit the Comprehensive Annual Financial Report of the City of Tigard, Oregon for the fiscal year ended June 30, 1985 . This report was prepared by the City' s Department of Finance. Responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the data, as presented, is accurate in all material aspects, and is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds, and all disclosures necessary to enable the reader to gain the maximum understanding of the City' s financial affairs have been included. This report has been prepared in accordance with generally accepted accounting principles and follows guidelines recommended by the Government Finance Officers Association of the United +rr States and Canada. ACCOUNTING SYSTEM AND BUDGETARY CONTROL The City' s general governmental operations are maintained on a modified accrual basis, with revenues being recorded when my measurable and available and expenditures being recorded when the goods or services are received. The City' s enterprise funds and pension trust fund are maintained on the accrual basis . In the development, evaluation and the necessary modification of the City' s accounting system, consideration has been given to wr the adequacy of internal accounting controls . Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: the safeguarding of assets against loss from unautho- rized use or disposition and wr i 12755 S.W.ASH P.O. BOX 23397 TIGARD,OREGON 97223 PH:639-4171 0 • the reliability of financial records for preparing financial statements and maintaining accountability for assets . The concept of reasonable assurance recognizes that: • the cost of a control should not exceed the benefits likely to be derived and the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe the City' s internal accounting controls adequately safeguard assets and provide reasonable assurance of 0 proper recording of financial transactions. The City is required by state law to budget all funds except the Pension Trust Fund and the Special Assessments Fund (the City elects to budget the Special Assessments Fund, however) . The budgeting process includes citizen input through various stages of 0 preparation, public hearings and approval of the original budget by the City Council . Additional resources not anticipated in the original budget may be added through the use of a supplemental budget. A supplemental budget requires hearings before the public, publications in newspapers and approval by the City Council . Original and supplemental budgets may be modified by the use of appropriation transfers between the cost categories . Such transfers require approval by the City Council . Budgetary control is maintained at the program level by comparison of estimated purchase amounts with adopted appropria- tions prior to the release of purchase orders to vendors. Pur- ", chase orders which could result in an overrun of program balances are not released until additional appropriations are made avail- able. THE REPORTING ENTITY AND ITS SERVICES 0 This report includes all of the funds and account groups of the City as well as all organizations which meet the criteria for inclusion in the report as set forth in National Council on Governmental Accounting (NCGA) Statement No. 3 , Defining the Governmental Entity. The City provides a range of services as authorized in its Charter. This includes police protection, street construction and maintenance, sanitary sewers and storm drainages, library and parks, land use planning and zoning, public improvements and administrative services . 40 ii General Governmental Functions Revenues for general governmental functions (all govern- "` mental funds) on a generally accepted accounting principles basis totaled $4,814, 010 in fiscal year 1985, an increase of 25.2% over last year. The increase over last year was due to substantial increases in all revenue sources, except taxes and special assessments which showed a slight decrease. The amount of revenues from various sources and changes from last year are as follows : Increase Percent (Decrease) of From Revenue Source Amount Total Fiscal 1984 Taxes $ 897,843 18 .6% $ (6, 395 ) Franchise fees 591, 246 12 .3 123,226 Special assessments 467, 195 9. 7 (2, 769) Licenses and permits 524, 059 10.9 237, 741 Intergovernmental revenues 1, 058, 600 22 . 0 136, 987 Charges for services 413 , 124 8. 6 170, 022 Fines and forfeitures 134, 040 2 .8 63, 615 Miscellaneous revenues 727, 903 15 .1 245, 379 $4.814. 010 100. 0% $967. 806 Taxes consist of property taxes on commercial and residential real and personal property within the City. A loss of revenues associated with a special 1984 one-year levy for police protection and community services for senior citizens was partially offset by a $156, 000 levy for bonded indebtedness in 1985. Assessed property valuations increased $76.7 million, repre- senting an increase of 9.9% over last year. This increase is mainly attributable to continuing construction of commercial property in the City, annexations and demand for residential property as well as inflationary increases. Current tax collec- tions were 89.82% of the current tax levy, up .9% from last year. The total collections (current and delinquent) to the current tax levy were 99.24%. Licenses and permits revenue, which consist primarily of building permits and charges for services, which consist primarily of system development charges, were up 83% and 70%, respectively. These increases were due primarily to significant increases in building activity and land development within the City. iii Intergovernmental revenues consist primarily of state and county gas taxes, shared cigarette and liquor taxes and Federal and State Revenue Sharing entitlements. Intergovernmental reve- nues increased by 14. 9% over last year because of the adoption of a one year County levy to fund library activities. Expenditures for general governmental purposes on a generally accepted accounting principles basis totaled $4,449, 782 in fiscal year 1985, an increase of 2 .0% over last year. This "` change is due to increased expenditures over the prior year for debt service. These increases were partially offset by a reduc- tion of special assessment project expenditures of $799,458 from the prior year. Total unreserved fund balances of the City were $1,265, 159 at June 30, 1985, consisting of a $2, 041,290 deficit in the Special Assessments Fund, $1, 611,289 in the Capital Projects Fund for construction of certain facilities and combined balances in the remaining funds of $1, 695, 160. The deficit in the Special Assessments Fund arose because of the application of generally accepted accounting principles to financial reporting for the 0 fund. Revenues are recognized only to the extent that individual installments are considered current assets. The deficit is expected to be reduced and eliminated as deferred special assess- ment installments, which are subject to lien, become current assets and are collected. ENTERPRISE OPERATIONS The Enterprise Funds are used to finance and account for the acquisition, operation and maintenance of City sewer and storm drainage facilities . The operations of these funds are accounted for in such a manner as to show a profit or loss similar to comparable private enterprises . Sewer Fund Operating revenues amounting to $531, 973 were derived from service charges during fiscal year 1985 . Operating expenses totaled $501,390. Net income was $47,438 after nonoperating interest revenues were considered for the fiscal year. Storm Drainage Fund This fund was established during fiscal 1983 to separate W sewer service activities from storm drainage activities . Oper- ating revenues amounting to $162, 961 were derived from storm drainage service charges. Net loss, including depreciation of $106,291, was $125, 395 . 0 iv 0 RETIREMENT PROGRAMS The City has three retirement options for employees. All nonpolice personnel can choose between an IRA and/or the ICMA Deferred Compensation program. Police personnel have a defined benefit and defined contribution pension plan through Banker' s Life Insurance Company. Banker' s Life acts as administrator of the pension plan. The police pension plans are accounted for in the Pension Trust Fund. POOLED CASH AND INVESTMENTS For the purpose of maximizing yields on short-term invest- ments, temporary excess cash of all funds is pooled. Results of investment activity for the fiscal year are shown below in com- parison with the previous year: Investment Income 1985 1984 General Fund $ 91, 980 $ 38, 012 Special Revenue Funds 68, 778 80,279 00 Capital Projects Fund 204, 658 20, 727 Special Assessments Fund 67, 975 65, 017 Enterprise Funds 19, 573 18, 896 Pension Trust Fund 164,785 81, 644 $617 , 749 $304, 575 Investments at the end of fiscal year 1985 totaled $4, 527, 367 at cost. City investments are approved by the State Treasurer in accordance with the Oregon Revised Statutes. Automatic deposits of shared revenues from other governmental agencies are trans- mitted directly to the state administered local government investment pool. However, due to noncompetitive interest rates offered by the pool during fiscal year 1985, the City utilized the pool' s services only as a clearing account for these direct deposits and for investments with very short terms . The interest earnings of investments are allocated to par- *, ticipating funds on the basis of the monthly average of their equities in the pooled accounts. BONDED INDEBTEDNESS The City' s total outstanding bonded debt at June 30, 1985 was $5, 207, 000 of which $3, 007, 000 were Bancroft improvement bonds . Bancroft improvement bonds are not subject to the debt limitations described in the following paragraph. The City issued $492, 000 in Bancroft improvements bonds during fiscal 1985. v The State of Oregon mandates a general obligation debt limit of 3 percent of true cash value of taxable property within the City boundaries. This limit totaled $26, 688, 566 at June 30, 1985 . The City' s net debt subject to this limitation was $2,200, 000, leaving the amount available for future indebtedness at $24,488, 566. CONCLUSION In recent years many advancements in financial management policies and procedures have been made by the City in an effort to achieve a sound financial system. According to the Government Finance Officers Association (GFOA) , "The Certificate of Conformance is the highest form of recognition in the area of governmental financial reporting, and its attainment represents a significant accomplishment by a governmental unit and its manage- ment" . It is our opinion that this report conforms to these standards. The overall financial condition of the City of Tigard as of June 30, 1985 is excellent given the current recessionary economic climate. The City continues to provide services to its citizens well within its resources. However, as inflation and recession continue at rates greater than revenues, the City' s management is continually searching for ways to increase resources and implement cost reduction programs. Both areas are under constant review, and all areas of opportunity are being thoroughly explored so that basic City services are not adversely affected by these economic factors. The future of the City of Tigard' s economic vitality appears to be very good. The City continues to grow in spite of a gen- erally depressed economy in the State of Oregon. INDEPENDENT AUDIT The State of Oregon (ORS 297 .405 to 297 .555 ) requires an annual audit of the fiscal affairs of the City by independent public accountants selected by the City Council. This requirement has been complied with and the auditor' s opinion has been included in this report. vi ACKNOWLEDGMENTS We would like to express our sincere gratitude to the person- ` nel of the Finance Department who assisted and contributed to the preparation of this report. Appreciation is also extended to the Mayor, City Council and many City department managers, whose continuing support is vital to the financial health of the City of Tigard, Oregon. Respectfully submitted, I Jerri L. Widner Finance Director Po C Rober 'W. Jean City inistrator 0 w vii CITY OF TIGARD, OREGON 014 MAYOR AND COUNCIL MEMBERS AS OF JUNE 30, 1985 Name Term Expires Mayor John E. Cook December 31, 1986 10455 S .W. Johnson Street Tigard, Oregon 97223 40 Councilman Tom Brian (President) December 31, 1988 7630 S .W. Fir Street Tigard, Oregon 97223 Councilman Phillip R. Edin December 31, 1988 13110 S .W. Ash Drive 441, Tigard, Oregon 97223 Councilwoman Ima Scott December 31, 1986 14873 S.W. 106th Tigard, Oregon 97223 "' Councilman Gerald R. Edwards December 31, 1986 10390 S.W. Meadow Tigard, Oregon 97223 Robert W. Jean, City Administrator Jerri L. Widner, Director of Finance 40 LEGAL COUNSEL O'Donnell & Ramis 1727 N. W. Hoyt Portland, Oregon 97209 viii ! t t t t t 4 t t t t I. Citizens of Tigard I MUNICIPAL MAYOR BOARDS AND d.#3 1 - COURT _ AND COMMITTEES COUNCIL CITY OF TI RD OREGON CITY ATTORNEY CITY ADMINISTRATIG k (29) f 5) (11) I (10.75' 1 (18.5) POLICE e LIBRARY FINANCE & PLANNING & PUBLIC DEPARTMENT =DEPARTMENT SERVICES -DEVELOPMENT WORKS 1 CITY 1 1 1 I 1 If .. , p1'(,1.I,. 1 I ! 1 I n ,-rs 1 Certificate of Conformance in Financial Reporting Presented to City of Tigard, Oregon For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1984 A Certificate of Conformance in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to governmental units and public employee retirement systems whose comprehensive annual financial reports (CAFR's) are judged to substantially conform to program standards. pN�E Oppc t!��r W" F�� OF THE Py 2 UNITED STATES s AND I •resident Aly {1i CORPORATICANADA Zs\ ON fa Nast?Os I_A/ Ill f`C� v✓� J v�I Executive Director x FINANCIAL SECTION certified public accountants Coopers &Lybrand Honorable Mayor and Council Members City of Tigard Tigard, Oregon We have examined the combined financial statements of the City of Tigard, Oregon as of and for the year ended June 30, 1985, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and the Minimum Standards for Audits of Oregon Municipal Corpora- tions and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the combined financial statements re- ferred to above present fairly the financial position of the City of Tigard, Oregon as of June 30, 1985, and the results of its operations and the changes in financial position of its Enterprise Funds and Pension Trust Fund for the year then ended, in conform- ity with generally accepted accounting principles applied on a basis consistent with that of the preceding year after giving retroactive effect to the change, with which we concur, in account- ing for Storm Drainage Fund depreciation as described in Note 16 to the combined financial statements . Our examination was made for the purpose of forming an opinion on the combined financial statements taken as a whole. The combining, individual fund, and account group financial statements and schedules listed as supplementary data in the table of contents are presented for purposes of additional analysis and are not a required part of the combined financial statements of the City of Tigard, Oregon. The information has been subjected to the auditing procedures applied in the examination of the combined financial statements and, in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. The other data included in this report, designated as the statistical section in the table of contents, has not been audited by us and, accordingly, we express no opinion on such data. COOPERS & LYBRAND By JoAvm S.ItdbronNorn, John L. Dethman, a partner Portland, Oregon September 11, 1985 1 COMBINED FINANCIAL STATEMENTS (General Purpose Financial Statements ) I (This page intentionally left blank. ) r► CITY OF TIGARD, OREGON COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1985 Governmental Special Debt ASSETS General Revenue Service Assets: Cash and investments $1,299,393 $861,338 $ 2,409 Accounts receivable 28,116 25,610 Property taxes receivable 142,499 13,322 Interest receivable 9,445 4,220 Contract receivable 86,653 Assessment liens receivable Due from other funds 260,617 Inventory of gasoline 3,591 Fixed assets, net Amount available for bonded debt service Amount to be provided for retirement of general long-term debt Total assets $1.830.314 $891,168 $15.731 LIABILITIES AND FUND EQUITY Liabilities: Accounts payable and accrued liabilities $ 195,516 Deposits 29,247 Accrued bond coupon interest Due to other funds 52,011 $161,751 $ 1,194 16, Deferred revenues: Account receivable 28,116 Property taxes 142,499 13,322 Contract receivable 86,653 Assessment liens receivable Accrued vacation pay Deferred compensation payable 331,744 Vf+ Bonds payable Total liabilities 865,786 161,751 14,516 Fund equity: Contributed capital Investment in general fixed assets Retained earnings Fund balances (deficit): Reserved for employee retirement benefits Unreserved 964,528 729,417 1,215 Total fund equity 964,528 729,417 1,215 Total liabilities and fund equity $1.830.314 $891.168 $15,731 The accompanying notes are an integral part of the combined financial statements. 2 S Fund Types Proprietary Fiduciary Account Groups Total Capital Special Fund Type Fund Type General General Long- (Memorandum . Projects Assessment Enterprise Pension Trust Fixed Assets Term Debt Only) $1,697,609 $ 896,395 $ 405,251 $1,295,914 $ 6,458,309 59,006 112,732 8,737 164,558 11,352 4,170 931 30,118 86,653 2,552,458 2,552,458 52,011 312,628 3,591 6,632,986 $2,763,726 9,396,712 $ 1,215 1,215 2,306,329 2,306,329 w $1.708.961 $3.453,023 $7.158.922 $1.295.914 $2.763.726 $2.307.544 $21.425.303 $ 6,941 $ 114,589 $ 317,046 11,427 40,674 2,965 2,965 sr $ 97,672 312,628 28,116 155,821 86,653 2,477,407 2,477,407 2,563 $ 107,544 110,107 to 331,744 3,007,000 2,200,000 5,207,000 97,672 5,494,313 128,579 2,307,544 9,070,161 6,469,592 6,469,592 $2,763,726 2,763,726 v 560,751 560,751 $1,295,914 1,295,914 1,611,289 (2,041,290) 1,265,159 1,611,289 (2,041,290) 7,030,343 1,295,914 2,763,726 12,355,142 $1,708.961 $3.453.023 $7.158.922 $1.295.914 $2.763.726 $2.307.544 $21.425.303 CITY OF TIGARD, OREGON COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES for the fiscal year ended June 30, 1985 ar air Total Special Debt Capital Special (Memorandum General Revenue Service Projects Assessments Only) Revenues: Taxes $ 757,797 $140,046 $ 897,843 Franchise fees 591,246 591,246 arr Special assessments $ 467,195 467,195 Licenses and permits 502,030 $ 22,029 524,059 Intergovernmental revenues 515,417 543,183 1,058,600 Charges for services 53,447 359,677 413,124 Fines and forfeitures 134,040 134,040 Miscellaneous revenues, primarily interest 151,690 69,609 $ 204,658 301,946 727,903 dr Total revenues 2,705,667 994,498 140,046 204,658 769,141 4,814,010 Expenditures: Current: Community services 1,543,314 49,005 1,592,319 Community development 372,548 445,193 817,741 Policy and administration 66,269 28,904 19,614 114,787 City-wide support func- tions 90,095 169,186 259,281 Capital projects 25,497 271,737 695,914 162,140 1,155,288 Debt service: Interest 138,831 97,672 273,863 510,366 Total expenditures 2,097,723 964,025 138,831 813,200 436,003 4,449,782 Excess of revenues over (under) expenditures 607,944 30,473 1,215 (608,542) 333,138 364,228 Fund balances (deficit) - beginning of year 356,584 698,944 2,219,831 (2,374,428) 900,931 Fund balances (deficit) - end of year $ 964.528 $729.417 $ 1.215 $1.611.289 $(2.041.290) 81.265.159 air mr my The accompanying notes are an integral part of the combined financial statements. it 3 8 CITY OF TIGARD, OREGON COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - ALL GOVERNMENTAL FUND TYPES for the fiscal year ended June 30, 1985 4 General Fund Special Revenue Funds Debt Service Variance Variance Favorable Favorable (Unfavor- (Unfavor- Budget Actual able) Budget Actual able) Budget Actual 10 Revenues: Taxes $ 727,383 $ 757,797 $ 30,414 $138,831 $140,046 Franchise fees 506,300 591,246 84,946 Special assessments Licenses and permits 290,500 502,030 211,530 $ 4,000 $ 22,029 $ 18,029 Intergovernmental revenues 536,589 515,417 (21,172) 491,500 543,183 51,683 Charges for services 130,253 53,447 (76,806) 176,500 359,677 183,177 Fines and forfeitures 72,250 134,040 61,790 4 Miscellaneous revenues, primarily interest 167,500 151,690 (15,810) 22,500 69,609 47,109 Total revenues 2,430,775 2,705,667 274,892 694,500 994,498 299,998 138,831 140,046 Expenditures: Current: Community services 1,852,324 1,543,314 309,010 62,500 49,005 13,495 10 Community development 413,120 372,548 40,572 467,682 445,193 22,489 Policy and administration 69,172 66,269 2,903 29,500 28,904 596 City-wide support functions 102,519 90,095 12,424 181,946 169,186 12,760 Contingency 140,224 140,224 Capital projects 210,000 25,497 184,503 651,816 271,737 380,079 Debt service: Principal retirement Interest 138,831 138,831 8 Total expenditures 2,787,359 2,097,723 689,636 1,393,444 964,025 429,419 138,831 138,831 Excess of revenues over (under) expenditures (356,584) 607,944 964,528 (698,944) 30,473 729,417 - 1,215 Other financing sources: Operating transfers in 8 Excess of revenues and other sources over (under) expenditures (356,584) 607,944 964,528 (698,944) 30,473 729,417 1,215 Fund balances - budgetary basis, beginning of year 409,655 409,655 698,944 698,944 Fund balances - budgetary basis, end of year $ 53.071 1,017,599 $964,528 $ - 729,417 $729.417 $ - 1,215 Adjustments from budgetary basis to generally accepted accounting principles: Cumulative effect of differences 8 between budgetary basis and generally accepted accounting principles basis of reporting fund balance (53,071) Bond principal payments budgeted as expenditures Fund balances (deficit) - generally 40- accepted accepted accounting principles basis, end of year $ 964.528 $729.417 $ 1,215 The accompanying notes are an integral part of the combined financial statements. 4 40 .r mo Fund Capital Projects Funds Special Assessments Fund Total (Memorandum Only) Variance Variance Variance Variance Favorable Favorable Favorable Favorable (Unfavor- (Unfavor- (Unfavor- (Unfavor- able) Budget Actual able) Budget Actual able) Budget Actual able) mr $1,215 $ 866,214 $ 897,843 $ 31,629 506,300 591,246 84,946 $ 403,000 $ 467,195 $ 64,195 403,000 467,195 64,195 294,500 524,059 229,559 1,028,089 1,058,600 30,511 306,753 413,124 106,371 or 72,250 134,040 61,790 $ 100,000 $ 204,658 $ 104,658 301,946 301,946 290,000 727,903 437,903 1,215 100,000 204,658 104,658 403,000 769,141 366,141 3,767,106 4,814,010 1,046,904 rr 35,000 35,000 1,949,824 1,592,319 357,505 10,000 10,000 890,802 817,741 73,061 20,000 19,614 386 118,672 114,787 3,885 284,465 259,281 25,184 140,224 140,224 2,157,159 695,914 1,461,245 1,356,877 162,140 1,194,737 4,375,852 1,155,288 3,220,564 200,000 200,000 200,000 200,000 40 97,672 97,672 251,000 273,863 (22,863) 487,503 510,366 (22,863) 2,319,831 813,200 1,506,631 1,807,877 636,003 1,171,874 8,447,342 4,649,782 3,797,560 1,215 (2,219,831) (608,542) 1,611,289 (1,404,877) 133,138 1,538,015 (4,680,236) 164,228 4,844,464 4r" 48,000 (48,000) 48,000 (48,000) 1,215 (2,219,831) (608,542) 1,611,289 (1,356,877) 133,138 1,490,015 (4,632,236) 164,228 4,796,464 2,219,831 2,219,831 1,356,877 1,356,877 4,685,307 4,685,307 r $1.215 $ - 1,611,289 $1.611.289 $ - 1,490,015 $1.490.015 $ 53.071 4,849,535 $4.796.464 AV (3,731,305) (3,784,376) 200,000 200,000 • $1.611.289 $(2.041.290) $1.265.159 err w CITY OF TIGARD, OREGON COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCE - ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUND w for the fiscal year ended June 30, 1985 41, Proprietary Fiduciary Total Fund Type Fund Type (Memorandum Enterprise Pension Trust Only) OPERATING REVENUES: Service charges $694,934 $ 694,934 Pension contributions $ 135,095 135,095 Total operating revenues 694,934 135,095 830,029 OPERATING EXPENSES: Salaries, wages and fringe benefits 379,674 379,674 Contracted services 54,813 54,813 General and administrative and other 142,672 142,672 Depreciation 215,305 215,305 Benefit payments and withdrawals 4,586 4,586 Contract charges 5,268 5,268 Total operating expenses 792,464 9,854 802,318 Operating income (loss) (97,530) 125,241 27,711 ,w NONOPERATING REVENUE - Interest 19,573 164,785 184,358 Net income (loss) (77,957) 290,026 212,069 Add: Depreciation on fixed assets donated or acquired from capital contri- butions that reduces contributed w capital 187,316 187,316 Increase in retained earnings/fund balance 109,359 290,026 399,385 RETAINED EARNINGS/FUND BALANCE - beginning of year, as restated (Note 16) 451,392 1,005,888 1,457,280 0 RETAINED EARNINGS - end of year $560.751 $1.295.914 $1.856.665 wr wr The accompanying notes are an integral part of the combined financial statements. Ar 5 ev CITY OF TIGARD, OREGON COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUND for the fiscal year ended June 30, 1985 Proprietary Fiduciary Total Fund Type Fund Type (Memorandum Enterprise Pension Trust Only) Working capital provided (used): In operations: Net income (loss) $(77,957) $290,026 $212,069 Charges to operations not requiring outlay of working capital in the current period - depreciation 215,305 215,305 Working capital provided from operations 137,348 290,026 427,374 Capital contributions, net of donated fixed assets of $511,507 92,500 92,500 Increase in working capital $229,848 $290.026 $519.874 Changes in components which increased (decreased) working capital: ,r, Cash and investments $244,361 $290,026 S534,387 Accounts receivable (342,080) (342,080) Property taxes receivable 1,670 1,670 Interest receivable 375 375 Due from other funds 28,664 28,664 Accounts payable and accrued liabilities 295,999 295,999 Deferred revenue 11,000 11,000 Customer deposits (11,427) (11,427) Accrued vacation pay 1,286 1,286 Increase in working capital $229.848 $290.026 $519.874 .d, sr The accompanying notes are an integral part of the combined financial statements. W' 6 NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS 1 . Summary of Significant Accounting Policies: Governmental Entities Included in the Combined Financial Statements All significant activities and organizations with which the City exercises oversight responsibility have been included in the City' s combined financial statements for the year ended June 30, 1985. The following criteria regarding manifestation of oversight were considered by the City in its evaluation of City 0 organizations and activities : Financial interdependency - whether the City receives financial support or provides financial benefit to the organization; is responsible for or has directly or indirectly guaranteed the organization' s debts. 0 Authoritative appointment of governing authority - whether the City Council appoints the organization' s governing authority and maintains a significant continuing relationship with the governing authority pertaining to the public functions of the organization. w There are many governmental agencies including Washington County and certain school districts and various service districts which provide services within the City. These agencies have indepen- dently elected governing boards and the City does not manifest any oversight responsibility. Therefore, financial information for • these agencies is not included in the accompanying combined finan- cial statements . Bases of Accounting The Governmental Fund Types are maintained on the modified accrual ^r' basis of accounting. Under the modified accrual basis of account- ing revenues are recorded in the accounting period in which they become measurable and available and expenditures are recorded at the time liabilities are incurred, except for: • Interfund transactions for services which are recorded on the accrual basis. • Interest on general obligation bonds which is recorded on its due date. Earned but unpaid vacations which are recorded as 0 expenditures to the extent they are expected to be liq- uidated with expendable available financial resources. 7 40 CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued 40 1 . Summary of Significant Accounting Policies, Continued: Bases of Accounting, Continued 414 Significant revenues which were measurable and available at June 30, 1985 under the modified accrual basis of accounting were as follows: Federal and state grants (to the extent that revenues are recorded as eligible expenditures are incurred) . Federal revenue sharing entitlements. State, county and local shared revenues for cigarette tax, liquor tax and other. Assessment liens receivable installments due within sixty days following year end. The Enterprise Funds and Pension Trust Fund are accounted for utilizing the accrual basis of accounting. Under the accrual basis of accounting, revenues are recorded at the time they are earned and expenses are recorded at the time liabilities are 00, incurred. The bases of accounting described above are in accordance with generally accepted accounting principles. Total (Memorandum Only) Columns The Total (Memorandum Only) columns on the combined financial statements represent an aggregate of the columnar statements by fund type and account group; they do not represent consolidated financial information. Investments Investments, included in cash and investments, are carried at cost which approximates market. Receivables Receivables for federal and state grants, federal revenue sharing entitlements and state, county and local shared revenues, included in accounts receivable, are recorded as revenue in the governmental funds as earned. 8 CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued 1 . Summary of Significant Accounting Policies, Continued: Receivables, Continued Receivables of the Enterprise Funds are recorded as revenue as earned, including services earned but not billed. Property taxes receivable in the General Fund are offset by a deferred revenue account in the liability section of the combined balance sheet and, accordingly, are not recognized as revenues. Property taxes receivable collected within sixty days following year end are not considered material for recognition as revenues . Property taxes become a lien on January 1 for personal property and on July 1 for real property. All taxes are levied on July 1 . Collection dates are November 15, February 15, and May 15. Dis- counts are allowed if the amount due is received by November 15. Taxes unpaid and outstanding on May 16 are considered delinquent. Assessments are recognized as receivables at the time property owners are assessed for property improvements. Assessments receivable expected to be collected within sixty days after year �► end are considered measurable and available and are recognized as revenues . All other assessments receivable are offset by a deferred revenue account and, accordingly, have not been recorded as revenue. Contract receivable due from Unified Sewerage Agency in the General Fund is offset by a deferred revenue account. Revenue is recognized when payments on the receivable are made. Inventory of Gasoline Inventory of gasoline is stated on the first-in, first-out basis and is charged to expenditures as used. Enterprise Fund Fixed Assets Purchased fixed assets are stated at historical cost or estimated historical cost when historical cost is not available. The total �► amount of fixed assets valued at estimated historical cost is not available. Donated assets are recorded at estimated appraised value at date of donation. Estimated appraised value of donated assets is determined based on engineering estimates of current 9 rr CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued 1 . Summary of Significant Accounting Policies, Continued: Enterprise Fund Fixed Assets, Continued • cost or price indexed cost. The total amount of fixed assets donated is not available. Depreciation is computed on assets in service, using the straight-line method over their estimated use- ful lives : Building 40 years Sewer system 40 years Storm Drainage system 40 years Equipment 5 to 10 years Autos and trucks 3 years 0 Depreciation expense on fixed assets donated or acquired from capital contributions is recognized as a reduction of contributed capital. Such reduction is recorded by a transfer from retained earnings. Normal maintenance and repairs are charged to operations as in- #., curred. Major additions, improvements and replacements are capitalized. Gains or losses from sales or retirements of fixed assets are included in operations . General Fixed Assets General fixed assets are stated at historical cost or estimated historical cost when historical cost is not available. The total amount of fixed assets valued at estimated historical cost is not available. Fixed assets are charged to expenditures in the Governmental Fund Types as purchased and capitalized in the General Fixed Assets Account Group. Maintenance and repairs of „ fixed assets are charged to expenditures in the Governmental Fund Types as incurred and are not capitalized. Expenditures for street and bridge construction, bike path, side- walk and lighting systems are not capitalized as fixed assets . As fixed assets are disposed of, the estimated historical cost or historical cost is removed from this account group; proceeds from sales of general fixed assets are recorded as General Fund revenue. Depreciation is not computed on general fixed assets . 10 0 CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued 1 . Summary of Significant Accounting Policies, Continued: Long-Term Debt Long-term debt directly related and expected to be paid from the Enterprise Funds or Special Assessments Fund is recorded in these funds. All other unmatured long-term debt is recorded in the General Long-Term Debt Account Group. Repayment of general bonded debt recorded in the General Long-Term Debt Account Group will be made from the Debt Service Fund. Payment of vacation liabilities in the General Long-Term Debt Account Group will be made from the General Fund. Accrued Vacation Pay Accumulated vested vacation pay is accrued in the Enterprise Funds as it is earned by employees. In Governmental Fund Types the amounts, if any, expected to be liquidated with expendable available resources are accrued as liabilities of the funds and the amount payable from future resources is recorded in the General Long-Term Debt Account Group. Sick pay is recorded in all funds when leave is taken. Contributed Capital Contributed capital in the Enterprise Funds represents the accumu- lation of contributions in the form of cash or other assets which generally do not have to be returned to the contributor. Such contributions are recorded directly to contributed capital and, accordingly, are not recognized as revenue. The following trans- actions are recorded in contributed capital in the Enterprise Funds: Receipts of federal and state grants for acquisition of fixed assets. • Fixed assets contributed from other funds or the General Fixed Assets Account Group. Contributions from others for the acquisition or con- struction of fixed assets. • Transfers from retained earnings for depreciation on fixed assets donated or acquired by contributed capital resources. 11 0 CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued 1 . Summary of Significant Accounting Policies, Continued: Budget a+ A budget is prepared for each fund except for the Pension Trust Fund in accordance with the modified accrual basis of accounting for governmental funds with certain modifications as explained in Note 3, the accrual basis of accounting for enterprise funds, and in accordance with the legal requirements set forth in the Oregon Local Budget Law. Appropriations are made at the major program # level for each fund. Appropriations may not be legally overex- pended. Appropriations lapse at the end of each fiscal year. Budget amounts include original approved amounts and all subsequent appropriations transfers approved by the City Council . After budget approval, the City Council may approve supplemental appro- priations if an occurrence, condition, or need exists which had * not been ascertained at the time the budget was adopted. During the fiscal year ended June 30, 1985, several appropriations transfers were made as well as two supplemental budget appropria- tions . The budget for the funds includes capital outlay expenditures in each program for capital outlay applicable to that program. Capital outlay expenditures benefiting the City and not an identifiable program are reported separately. 2 . Organization and Operation: The City of Tigard, under its Charter of 1962, is governed by an elected mayor and four councilmembers who comprise the City Council. The City' s financial operations are accounted for in the following funds and account groups: Governmental Fund Types General Fund: This fund accounts for the City' s general operations. It is used to account for all transactions not specifically related to the City' s other funds. # Special Revenue Funds: Federal Revenue Sharing Fund: This fund accounts for Federal Revenue Sharing entitlements. 12 40 CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued 40 2 . Organization and Operation, Continued: Governmental Fund Types, Continued Special Revenue Funds, Continued: State Tax Street Fund: This fund accounts for revenues received from state gasoline taxes which are to be expended as specified in the Constitution of the State of Oregon, Article IX, Section 3 . 40 Streets SDC Fund: This fund accounts for system develop- ment charges to be used for major repair and improvement to extracapacity street facilities . Parks SDC Fund: This fund accounts for system develop- ment charges for major improvements to recreational facilities within the City. County Road Levy Fund: This fund accounts for a spe- cial, one-time property tax levy from Washington County for the maintenance and repair of roads. County Gas Fund: This fund accounts for road tax monies received from Washington County for the maintenance and operation of roads. Debt Service Fund: This fund accounts for payment of general 4" obligation bond principal and interest. The principal source of revenue is from property taxes . Capital Projects Fund: This fund accounts for the costs of constructing a city building, including library, city hall and police facilities . The estimated cost of the building ($2 , 500, 000 ) is being financed by general obligation bond proceeds ( $2,200, 000) and interest earnings. The expected completion date is December 1985. Special Assessments Fund: This fund accounts for construc- tion and financing of specific street and sanitary sewer and ' storm drainage projects which benefit property owners . The fund' s primary financing sources are assessments against owners of benefited property and contributions from other funds for their share of costs. 13 40 40, CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued 2 . Organization and Operation, Continued: Enterprise Funds Sewer Fund: This fund accounts for the City' s sewer utility operations. Storm Drainage Fund: This fund accounts for the City' s storm drainage operations. Fiduciary Fund Type Pension Trust Fund: This fund accounts for the police em- ployees pension plans (Note 11 ) . Account Groups General Fixed Assets: This account group accounts for the City' s investment in fixed assets, with the exception of those assets held by the Enterprise Funds. General Long-Term Debt: This account group accounts for long-term indebtedness not recorded in the Enterprise Funds and Special Assessments Fund. 3 . Reconciliation of Generally Accepted Accounting Principles Basis to Budgetary Basis : The budget for the Special Assessments Fund of the City is prepared differently from generally accepted accounting principles. There- " fore, the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types is presented on the budgetary basis and is adjusted to the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types presented on the generally accepted accounting principles basis. The following is a recon- ciliation of the differences between the budgetary basis and generally accepted accounting principles basis for the excess of revenues and other sources over expenditures for the aforementioned combined financial statements: Excess of revenues over expenditures - �. generally accepted accounting principles basis $333 , 138 Expenditures: Bond principal payments budgeted as expenditures (200, 000 ) Excess of revenues and other sources over expenditures - budgetary basis $133 . 138 14 r CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued 4. Cash and Investments: The amounts at June 30, 1985 comprised: Cash on hand $ 650 Cash held by Department of Finance, Washington County 13,854 Cash in bank demand deposit accounts 288, 780 Cash with fiduciaries (insurance companies for retirement plans) 1, 627, 658 Bank time certificates of deposit, at cost 3, 930, 290 Cash on deposit with Oregon State Treasurer's Short-term Investment Pool 597, 077 Total $6,458, 309 The interest rate on bank time certificates of deposits is 9% with maturities to July 3, 1985. 5 . Contract Receivable: This represents the balance due to the City from the Unified Sewerage Agency of Washington County resulting from the sale of certain sewage treatment and collection facilities to the Agency in 1970. This contract is recorded in the General Fund because at the time of sale of the facilities, the City' s sewer operations were accounted for in the General Fund. Amounts due at June 30, 1985 comprise: Total receivable $101, 819 Less unearned interest 15, 166 $ 86 . 653 The contract requires annual payments of $14,442 plus 5% interest on the unpaid balance to July 1, 1991 . 6. Assessment Liens Receivable: w Assessment liens receivable represent the uncollected amounts levied against benefited property for the cost of local improve- ments. 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 ten to twenty years . Assessments bear 7% to 10.8% interest. 15 CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued 7. Interfund Receivables and Payables: Interfund receivables and payables at June 30, 1985 are: Special Debt Capital Enter- General Revenue Service Projects prise Fund Funds Fund Fund Funds Total Due from other funds: General $52,011 $ 52,011 Federal Revenue Sharing $ 17,488 17,488 Streets SDC 98,000 98,000 County Road Levy 46,263 46,263 Debt Service 1,194 1 ,194 Capital Projects 97,672 97,672 $260.617 $52.011 $312.628 Due to other funds: General $161,751 $1,194 $97,672 $260,617 Sewer $ 52,011 52,011 $ 52,011 $161 .751, $1 .194 $97.672 $312.628 40 40 w• 16 CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued 8. Fixed Assets: Fixed assets and related changes therein are as follows : ENTERPRISE FUNDS Balance Balance June 30, June 30, 1984 Additions 1985 Land $ 2,484 $ 2,484 Building 53,540 53,540 Sewer system 4,020,922 $323,294 4,344,216 Storm drainage system 4,748,496 188,215 4,936,711 Equipment 122,088 122,088 Autos and trucks 28,710 28,710 8,976,240 511,509 9,487,749 Less accumulated depreciation 2,639,458 215,305 2,854,763 $6.336.782 $296,204 $6,632.986 GENERAL FIXED ASSETS ACCOUNT GROUP Balance Balance June 30, Dele- June 30, 1984 Additions tions 1985 Land $ 371,430 $542,051 $ 913,481 Buildings 708,536 157,201 865,737 Equipment 323,934 61,907 $14,611 371,230 Autos and trucks 162,031 7,423 4,064 165,390 Office equipment 190,289 5,561 195,850 Library books 206,183 45,855 252,038 $1.962.403 $819.998 $18.675 $2,763.726 17 wr CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued 9. Long-Term Debt: Bonds payable transactions for the year and future maturities of bond principal and interest at June 30, 1985 are as follows: Principal Outstanding Issued Matured Outstanding 40June 30, During the During June 30, 1984 Year Year 1985 Interest General Obligation Bonds: General obligation city build- ing bonds with interest rates from 9.7% to 18% (original amount $2,200,000): Fiscal year: top 1986 $ 40,000 $ 40,000 $ 236,503 1987 45,000 45,000 229,302 1988 50,000 50,000 221,203 1989 55,000 55,000 215,202 1990 60,000 60,000 208,603 1991-1995 410,000 410,000 937,183 1996-2000 685,000 685,000 680,500 2001-2004 855,000 855,000 237,440 $2.200.000 $2,200,000 $2.965,936 Bancroft Improvement Bonds: Eight general obligation improvement bond issues with interest rates from 6% to 16.75% (original amounts $3,463,149): Fiscal year: 1985 $ 200,000 $200,000 1986 218,000 $ 32,000 $ 250,000 $ 270,651 1987 243,000 35,000 278,000 242,951 1988 273,000 35,000 308,000 215,932 1989 288,000 40,000 328,000 187,955 1990 318,000 45,000 363,000 156,929 1991-1995 1,095,000 305,000 1,400,000 282,303 1996-2000 50,000 50,000 31,175 2001-2003 30,000 30,000 5,170 $2,715.00Q $492.000 $200,000 $3.007.000 $1,393,066 During fiscal 1985, accrued vacation pay recorded in the General Long-Term Debt Account Group decreased from $109,087 at June 30, 1984 to $107,544 at June 30, 1985, a decrease of $1,543. The accrual represents a normal accumulation of vested benefits at year end. 10. Contributed Capital: The changes in contributed capital were as follows: Balance, beginning of year, as restated (Note 16) $6,052,901 Contributions of sewer system fixed assets from others 323,294 Contributions of storm drainage fixed assets from others 188,213 Transfer of depreciation on certain contributed fixed assets from retained earnings (187,316) Contributions from customers of Storm Drainage Fund 92,500 Balance, end of year $6,469,592 18 r CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued 11. Retirement Plans: The City contributes 8 percent of basic monthly earnings to an Individual Retirement Account or a deferred compensation plan for participating employees. Eligible participants include all employees except police employees. Contributions for both plans are made to fiduciaries. The fiduciaries hold the funds in trust and make distributions to retired employees . The amount deferred under the deferred compensation plan since the inception of the plan and investment earnings thereon total $331, 744 at June 30, 1985 and is included in cash and investments and offset by a corresponding liability in the General Fund. Such amount reflects a general liability of the City to its employees whose rights are equal to but not greater than the rights of other general creditors with respect to such amount. Expenditures by the City for the Individual Retirement Accounts were $45,343 and $32,236 for the deferred compensation plan for the year ended June 30, 1985 . Full-time police employees who have completed six months of service are participants in a city sponsored pension program consisting of a defined benefit plan and a defined contribution plan. Required employer contributions are accounted for in a defined benefit plan and required employee contributions, which are also paid by the City, are accounted for in a defined contri- bution plan. The cost of the defined contribution plan is accrued and funded currently. The cost of the defined benefit plan, including amortization of the unfunded prior service cost over forty years and normal cost, is also accrued and funded currently. Due to the unitary nature of the police pension program, these two plans have been accounted for in one pension trust fund. Pension contributions made to this fund by the City for the year ended June 30, 1985 were $135, 095. There are no unfunded accrued liabilities for these plans. A comparison of accumulated plan benefits and plan net assets for the police employees' defined benefit plan as of July 1, 1984, the latest actuarial valuation study, is presented below: Actuarial present value of accumulated plan benefits: Vested $381, 880 Nonvested 47, 604 $429 .484 Net assets available for benefits $673 . 503 19 0 CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued V 11 . Retirement Plans, Continued: Actuarial assumptions related to interest and salary scale were updated in the July 1, 1984 actuarial valuation. The assumed rate of return used in determining the actuarial present value of accumulated plan benefits increased from 6 .5% to 7 . 5%. The assumed yearly salary scale increase changed from 4 .5% to 6%. These changes caused the present value of vested and nonvested benefits to decrease $84,435 and $5, 983, respectively, and decreased contributions by approximately $1, 600. 12 . Transactions with Unified Sewerage Agency of Washington County: The City of Tigard collects charges for treatment of City sewage on behalf of the Unified Sewerage Agency of Washington County (USA) «• and remits all collections to USA except for 30% of sewer service charges collected and 20% of connection charges collected, in accordance with an agreement between the City and USA dated Janu- ary 18, 1972 . Payments of $1, 345, 783 were made to USA during 1985 under this agreement. The net amount retained by the City is reported as revenues in the enterprise funds in the Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balance - All Proprietary Fund Types and Similar Trust Fund. Revenues are reported net because the City acts in a fiduciary capacity on behalf of USA. 13 . Commitments and Contingencies: The City has a contingent liability against its full faith and credit for Bancroft improvement bonds recorded in the Special Assessments Fund in the amount of $3 , 007, 000. The City' s general credit is obligated on these bonds only to the extent that liens foreclosed against properties involved in the assessment districts and collections of related assessments and interest are insuffi- cient to retire outstanding bonds and pay bond interest. The City is a defendant in several legal actions currently pending. Although their outcome cannot be determined, it is the opinion of management that settlement of these matters will not have a material effect on the combined financial position and results of operations of the City. At June 30, 1985 the City had contractual commitments of approxi- . mately $1,800, 000 primarily for the construction of a City building. 20 40 CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued 14. Segment Information for Enterprise Funds : The City' s two enterprise funds account for the acquisition, operation, and maintenance of sewer and storm drainage systems 0 which are supported by user charges. Segment information for the year ended June 30, 1985 is as follows: Sewer Storm Drainage Operations Operations Total Operating revenues $ 531, 973 $ 162 , 961 $ 694, 934 40 Depreciation 109, 014 106,291 215, 305 Operating income (loss) 30, 583 (128, 113 ) (97, 530) Net income (loss) 47,438 (125,395) (77, 957) Current capital contri- butions 323,294 280,713 604, 007 Fixed assets: 40 Additions 323 ,294 188 ,215 511, 509 Net working capital 263, 718 133 , 639 397, 357 Total assets 3,808, 168 3 ,350, 754 7, 158, 922 Total equity 3 , 679, 589 3,350, 754 7, 030, 343 15 . Deficit Fund Balance: The deficit of $2, 041,290 in the Special Assessments Fund at June 30, 1985 arises because of the application of generally accepted accounting principles to the financial reporting for the fund. Bond proceeds used to finance construction of special 0 assessment projects are not recognized as an "other financing source" because the liabilities for special assessment bonds payable are accounted for in the Special Assessments Fund. Special assessments are recognized as revenue only to the extent that individual installments are collected within sixty days following year end. 16. Accounting Change and Restatement: Storm Drainage Fund Depreciation: • In fiscal 1985 the City adopted the method of charging deprecia- tion expense related to Storm Drainage Fund fixed assets con- tributed by others to contributed capital . Depreciation expense related to these assets was previously charged to retained earn- ings. The change was made to more properly offset the usage of the fixed assets against the resources used to acquire the assets. Accordingly, at June 30, 1984 contributed capital has been de- creased by $1, 613 , 092 and retained earnings have been increased by a corresponding amount. 21 0 0 CITY OF TIGARD, OREGON NOTES TO COMBINED FINANCIAL STATEMENTS, Continued 0 16. Accounting Change and Restatement, Continued: Pension Trust Fund 0 Retained earnings as of June 30, 1984 in the Pension Trust Fund has been increased by $264,265 as a result of the inclusion of financial information which was not correct in prior years. The effect of this change was to increase fiscal 1984 revenues by $94, 043 and expenses by $18,821 . .r r ,, 22 SUPPLEMENTARY DATA (Combining and Individual Fund and Account Group Statements and Other Financial Schedules ) 40 GENERAL FUND This fund accounts for the financial operations of the City which are not accounted for in any other fund. Principal resources are property taxes, franchise fees, intergovernmental revenues, licenses and permits, and operating transfers from other funds. Primary expenditures in the General Fund are made for police protection and community development. 40 yr 40 CITY OF TIGARD, OREGON GENERAL FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1985 ar ar Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: Property taxes: Current year $ 663,909 $ 671,594 $ 7,685 Prior years 61,474 85,794 24,320 Other 2,000 409 (1,591) Franchise fees 506,300 591,246 84,946 Licenses and permits 290,500 502,030 211,530 Intergovernmental revenues 536,589 515,417 (21,172) Charges for current services 130,253 53,447 (76,806) Fines and forfeitures 72,250 134,040 61,790 Use of money and property 20,000 103,773 83,773 Nonrevenue receipts 2,500 27,189 24,689 Recovered expenditures and other 145,000 20,728 (124,272) Total revenues 2,430,775 2,705,667 274,892 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 409,655 409,655 Total $2.840.430 $3.115,322 $274,892 EXPENDITURES: Community services $1,852,324 $1,543,314 $309,010 Community development 413,120 372,548 40,572 Policy and administration 69,172 66,269 2,903 City-wide support function 102,519 90,095 12,424 Contingency 140,224 140,224 Capital projects 210,000 25,497 184,503 2,787,359 $2.097.723 $689.636 UNAPPROPRIATED ENDING FUND BALANCE 53,071 $2.840,430 23 40 oar SPECIAL REVENUE FUNDS The Special Revenue Funds account for revenue derived from specific tax or other earmarked revenue sources, including federal and state grant awards, which are legally restricted to * finance particular functions or activities . Funds included in this fund category are: Federal Revenue Sharing 4' State Tax Street Streets SDC Parks SDC County Road Levy 0 County Gas Tax r 4,4 44 40 a�w CITY OF TIGARD, OREGON SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1985 qr • Federal State County Revenue Tax Streets Parks Road County Sharing Street SDC SDC Levy Gas Tax Total ASSETS Cash and investments $165,801 $379,711 $145,394 $160,365 $10,067 $861,338 Accounts receivable $25,610 25,610 Interest receivable 2,507 880 257 246 330 4,220 Due from other funds Total assets $25.610 $168.308 $380.591 $145.651 $160.611 $10.397 $891.168 LIABILITIES AND FUND BALANCES Liabilities - due to other funds $17,488 $ 98,000 $ 46,263 $161,751 to, Fund balances - unreserved 8,122 $168,308 282,591 $145,651 114,348 $10,397 729,417 Total liabilities and fund balances $25,610 $168.308 $380.591 $145.651 $160,611 $10.397 $891.168 Apr V 24 CITY OF TIGARD, OREGON SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES air (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS) for the fiscal year ended June 30, 1985 yr Federal State County Revenue Tax Streets Parks Road County Sharing Street SDC SDC Levy Gas Tax Total REVENUES: Licenses and permits $ 22,029 $ 22,029 Intergovernmental revenues $109,731 326,009 $ 26,080 $ 81,363 543,183 Charges for services $285,897 $ 73,780 359,677 Miscellaneous revenues 20,421 13,506 14,061 16,617 5,004 69,609 Total revenues 109,731 368,459 299,403 87,841 42,697 86,367 994,498 EXPENDITURES: Community services 49,005 49,005 Community development 181,184 53,298 29,598 72,395 108,718 445,193 Policy and administra- tion 24,985 3,919 28,904 City-wide support ler functions 124,555 37,195 7,436 169,186 Capital projects 21,761 162,377 7,186 80,413 271,737 Total expendi- tures 124,555 314,130 215,675 36,784 152,808 120,073 964,025 Excess of revenues over (under) expenditures (14,824) 54,329 83,728 51,057 (110,111) (33,706) 30,473 FUND BALANCES - beginning of year 22,946 113,979 198,863 94,594 224,459 44,103 698,944 FUND BALANCES - end of year $ 8.122 $168.308 $282.591 $145.651 $214.348 $ 10.397 $729.417 25 CITY OF TIGARD, OREGON FEDERAL REVENUE SHARING FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1985 wr Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: Federal revenue sharing entitlements $110,500 $109,731 $ (769) Interest 500 (500) Total revenues 111,000 109,731 (1,269) BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 22,946 22,946 Total $233.946 $132.677 $( ,.269) Variance wr Revised Favorable Appropriations Actual (Unfavorable) EXPENDITURES: City wide support functions $133.946 $224.555 $9.391 .r rr 26 yr CITY OF TIGARD, OREGON STATE TAX STREET FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1985 Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: State gas tax $301,000 $326,009 $ 25,009 Interest 5,000 20,421 15,421 Lighting Subdivisions 4,000 22,029 18,029 Total revenues 310,000 368,459 58,459 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 113,979 113,979 wit Total $423.979 $482.438 $ 58.459 Variance Revised Favorable Appropriations Actual (Unfavorable) EXPENDITURES: Community services $ 62,500 $ 49,005 $ 13,495 Community development 193,397 181,184 12,213 Policy and administration 25,500 24,985 515 City wide support functions 40,000 37,195 2,805 Capital projects 102,582 21,761 80,821 Total $423.979 $314.130 $109,849 ar rrr w 27 CITY OF TIGARD, OREGON STREETS SDC FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1985 • Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: System development charges $156,500 $285,897 $129,397 rr Interest 5,000 13,057 8,057 Miscellaneous 449 449 Total revenues 161,500 299,403 137,903 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 198,863 198,863 arr Total $360.363 $498.266 $137.903 Variance V' Revised Favorable Appropriations Actual (Unfavorable) EXPENDITURES: Community development $ 56,732 $ 53,298 $ 3,434 Capital projects 303,631 162,377 141,254 Total $360.363 $215.675 $144.688 rw 28 • CITY OF TIGARD, OREGON PARKS SDC FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1985 or Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: s System development charges $ 20,000 $ 73,780 $53,780 Interest 2,000 14,061 12,061 Total revenues 22,000 87,841 65,841 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 94,594 94,594 Total $ ,16.594 $182.435 $65.841 Variance Revised Favorable Appropriations Actual (Unfavorable) EXPENDITURES: Community development $ 32,000 $ 29,598 $ 2,402 Capital projects 84,594 7,186 77,408 Total $ ,16,594 $ 36.784 $79.810 w• r�r 29 40 CITY OF TIGARD, OREGON COUNTY ROAD LEVY FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1985 Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: County maintenance and repair tax $ 5,000 $ 26,080 $21,080 ar Interest 5,000 16,617 11,617 Total revenues 10,000 42,697 32,697 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 224,459 224,459 Total $234.459 $267.156 $32.697 Variance Revised Favorable Appropriations Actual (Unfavorable) EXPENDITURES: Community development $ 73,450 $ 72,395 $ 1,055 er Capital projects 161,009 80,413 80,596 Total $234.459 $252.808 $81.651 air dr 30 r CITY OF TIGARD, OREGON COUNTY GAS TAX FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1985 ar Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: County road tax $ 75,000 $ 81,363 $6,363 Interest 5,000 5,004 4 Total revenues 80,000 86,367 6,367 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 44,103 44,103 Total $124.103 $130.470 $6.367 Variance Revised Favorable Appropriations Actual (Unfavorable) EXPENDITURES: Community development $112,103 $108,718 $3,385 Policy and administration 4,000 3,919 81 City wide support functions 8,000 7,436 564 Total $224,103 $120,073 $4.030 err w 31 r AYE SPECIAL ASSESSMENTS FUND The Special Assessments Fund accounts for the construc- tion and financing of specific street and sanitary sewer projects which benefit property owners. The fund' s primary financing sources are assessments against owners of benefited property. Assessments, which become a lien against the benefited property, are levied based upon the estimated cost of the projects. The benefited property owner may elect to pay the assessment over a # period of ten years (or twenty years for parking facilities and for assessments levied after September 1971) in semi-annual installments. Upon completion of the project, general obligation ten-year and twenty-year serial coupon bonds are sold in an amount equal to the unpaid assessments . W IV aw CITY OF TIGARD, OREGON SPECIAL ASSESSMENTS FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1985 9A Variance Revised Favorable w Budget Actual (Unfavorable) REVENUES: Collection of bonded assessments $ 403,000 $ 467,195 $ 64,195 Interest on assessments 233,495 233,495 Interest on investments 68,451 68,451 Total revenues 403,000 769,141 366,141 OTHER FINANCING SOURCES: Operating transfers in 48,000 (48,000) Total revenues and other sources 451,000 769,141 318,141 BEGINNING FUND BALANCE AVAILABLE r,. FOR APPROPRIATION 1,356,877 1,356,877 Total $1.807.877 $2.126.018 $ 318.141 EXPENDITURES: Capital projects $1,356,877 $ 162,140 $1,194,737 Bond principal: Bancroft #10 2,000 2,000 w 11 3,000 3,000 12 15,000 15,000 13 25,000 25,000 14 5,000 5,000 15 60,000 60,000 16 90,000 90,000 Total bond principal 200,000 200,000 rw Bond interest: Bancroft #10 120 120 11 2,141 2,141 12 5,696 5,696 13 37,958 37,958 14 19,471 19,471 15 73,005 73,005 w 16 112,609 112,609 17 22,863 (22,863) Total bond interest 251,000 273,863 (22,863) Total expenditures $1.807.877 $ 636.003 $1.171.874 r rw 32 ENTERPRISE FUNDS 0 These funds are used to finance and account for the acquisition, operation and maintenance of sewer and storm drainage facilities which are supported by user charges . Funds included in 0 this fund category are: Sewer Fund Storm Drainage Fund r 0 or CITY OF TIGARD, OREGON ENTERPRISE FUNDS COMBINING BALANCE SHEET June 30, 1985 ®r. to Storm Sewer Drainage Fund Fund Total ASSETS: Current assets: Cash and investments $ 296,181 $ 109,070 $ 405,251 "r Accounts receivable 35,416 23,590 59,006 Property taxes receivable 7,776 961 8,737 Interest receivable 913 18 931 Due from other funds 52,011 52,011 Total current assets 392,297 133,639 525,936 Fixed assets, net 3,415,871 3,217,115 6,632,986 $3.808.168 $3,350.754 $7,158,922 LIABILITIES AND FUND EQUITY: Current liabilities: Accounts payable and accrued liabilities $ 114,589 $ 114,589 Customer deposits 11,427 11,427 Accrued vacation pay 2,563 2,563 Total current liabilities 128,579 128,579 Fund equity: Contributed capital 3,159,977 $3,309,615 6,469,592 Retained earnings 519,612 41,139 560,751 wr Total fund equity 3,679,589 3,350,754 7,030,343 $3.808.168 $3.350.754 $7,158.922 ow .r tor 33 CITY OF TIGARD, OREGON ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ,,, for the fiscal year ended June 30, 1985 Storm Sewer Drainage Fund Fund Total OPERATING REVENUES: Service charges $531,973 $162,961 $694,934 ww OPERATING EXPENSES: Salaries, wages and employee benefits 260,669 119,005 379,674 Contracted services 42,207 12,606 54,813 General and administrative and other 89,500 53,172 142,672 Depreciation 109,014 106,291 215,305 +► Total operating expenses 501,390 291,074 792,464 Operating income (loss) 30,583 (128,113) (97,530) NONOPERATING REVENUE - Interest 16,855 2,718 19,573 Net income (loss) 47,438 (125,395) (77,957) Add: Depreciation on fixed assets donated or acquired from capital contributions that reduces contributed capital 81,025 106,291 187,316 Increase (decrease) in retained earnings 128,463 (19,104) 109,359 RETAINED EARNINGS - beginning of year, as restated 391,149 60,243 451,392 RETAINED EARNINGS - end of year $519.612 $ 41,139 $560.751 ar wr 34 wr CITY OF TIGARD, OREGON ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION for the fiscal year ended June 30, 1985 ,rr Storm Sewer Drainage Fund Fund Total Working capital provided (used): In operations: Net income (loss) $ 47,438 $(125,395) $(77,957) Charges to operations not requiring outlay of working capital in the current period - depreciation 109,014 106,291 215,305 working capital provided from (used in) operations 156,452 (19,104) 137,348 „r, Capital contributions, net of donated fixed assets of $323,294 and $188,213, respectively 92,500 92,500 Increase in working capital $256.452 $ 73,396 $229,848 Changes in components which increased (decreased) working capital: ar Cash and investments $135,291 $109,070 $244,361 Accounts receivable (318,592) (23,488) (342,080) Property taxes receivable 1,433 237 1,670 Interest receivable 451 (76) 375 Due from other funds 52,011 (23,347) 28,664 Accounts payable and accrued liabilities 295,999 295,999 Deferred revenue 11,000 11,000 Customer deposits (11,427) (11,427) =e+ Accrued vacation pay 1,286 1,286 Increase in working capital $256.452 $ 73.396 $229,848 err u�+ 35 411r CITY OF TIGARD, OREGON SEWER FUND STATEMENT OF REVENUES AND EXPENSES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1985 4.0 Variance Revised Favorable Budget Actual (Unfavorable) REVENUES: Sewer service charges $456,000 $531,973 $ 75,973 wr Interest 25,000 16,855 (8,145) Total revenues 481,000 548,828 67,828 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 107,270 107,270 'r' Total $588,270 $656.098 $ 67,828 Variance Revised Favorable Appropriations Actual (Unfavorable) EXPENDITURES: Community services $122,000 $ 95,800 $ 26,200 Community development 303,840 172,491 131,349 Policy and administration 37,828 37,064 764 City wide support function 93,535 87,021 6,514 Capital projects 31,067 31,067 Total $588.270 $392.376 $195.894 Total expenditures, as reported above $392,376 Add depreciation 109,014 Total expenses as reported in the Combining Statement of Revenues, Expenses and Changes in Retained Earnings (page 34) $501.390 Oar err 36 or CITY OF TIGARD, OREGON STORM DRAINAGE FUND STATEMENT OF REVENUES AND EXPENSES - BUDGET AND ACTUAL for the fiscal year ended June 30, 1985 Variance Original Favorable Budget Actual (Unfavorable) REVENUES: wit Service charges $225,500 $162,961 $(62,539) Interest 2,000 2,718 718 Other 5,000 (5,000) Total revenues 232,500 165,679 (66,821) BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATION 60,243 60,243 Total $292.743 $225.922 $(66.821) Variance Revised Favorable Appropriations Actual (Unfavorable) EXPENDITURES: Community services $ 47,000 $ 37,721 $ 9,279 Community development 129,431 111,038 18,393 .to Policy and administration 12,000 11,758 242 City wide support function 24,000 21,468 2,532 Capital projects 80,312 2,798 77,514 Total $292.743 $184.783 $107.960 Total Expenditures, as reported above $184,783 Add depreciation 106,291 .�r Total expenses as reported in the Combining Statement of Revenues, Expenses and Changes in Retained Earnings (page 34) $291.074 ar ar 41P37 aP GENERAL FIXED ASSETS ACCOUNT GROUP This account group accounts for the fixed assets of the City other than those recorded in the Enterprise Funds. CITY OF TIGARD, OREGON STATEMENT OF GENERAL FIXED ASSETS - BY SOURCES June 30, 1985 ®r •rr GENERAL FIXED ASSETS Land Buildings $ 913,481 Equipment 865,737 371,230 Autos and trucks 165,390 Office equipment 195,850 14, Library books 252,038 Total general fixed assets $2.763.726 INVESTMENT IN GENERAL FIXED ASSETS Balance, beginning of year $1,962,403 qmo Additions were provided by: General Fund 120,746 Capital Projects Fund 699,252 819,998 yr 2,782,401 Retirements (18,675) Total investment in general fixed assets $2.763.726 wr r 38 CITY OF TIGARD, OREGON STATEMENT OF CHANGES IN GENERAL FIXED ASSETS - BY SOURCES for the fiscal year ended June 30, 1985 ar Autos and Office Library Land Buildings Equipment Trucks Equipment Books Total Balance, beginning of year $371,430 $708,536 $323,934 $162,031 $190,289 $206,183 $1,962,403 Add: Additions from: * General Fund 61,907 7,423 5,561 45,855 120,746 Capital Projects Fund 542,051 157,201 699,252 542,051 157,201 61,907 7,423 5,561 45,855 819,998 Deduct: • Retirements (14,611) (4,064) (18,675) Balance, end of year $913,481 $865.737 $371,230 $165.390 $195.850 $252,038 $2,763,726 sr is. V 39 r V CITY OF TIGARD, OREGON STATEMENT OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY June 30, 1985 4110Machinery, Equipment Function and Activity Total Land Buildings and Other General Government: Control: Legislative $ 3,626 $ 3,626 '` Executive 16,666 16,666 Judicial 5,750 5,750 Total control 26,042 26,042 Staff Agencies: Finance 66,803 66,803 411 Recording and reporting 37,381 37,381 Administrative officers and boards 13,879 13,879 Planning and zoning 12,490 12,490 Research and investigation 61,111 61,111 General government buildings 1,241,565 $597,130 $644,435 Total staff agencies 1,433,229 597,130 644,435 191,664 Total general government 1,459,271 597,130 644,435 217,706 Public safety: Police protection 285,464 1,171 75,224 209,069 Protective inspection 22,097 22,097 Total public safety 307,561 1,171 75,224 231,166 aw Highways 252,721 2,300 39,286 211,135 Libraries 283,343 283,343 Recreation 460,830 312,880 106,792 41,158 Total general fixed assets $2.763.726 $913.481 $865,737 $984.508 wr er 40 CITY OF TIGARD, OREGON STATEMENT OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY June 30, 1985 u.. av General General Fixed Assets Fixed Assets Function and Activity June 30, 1984 Additions Deletions June 30, 1985 General Government: Control: Legislative $ 3,626 $ 3,626 Executive 16,666 16,666 Judicial 5,750 5,750 Total control 26,042 26,042 Staff agencies: Finance 66,803 66,803 Recording and reporting 37,381 37,381 Administrative officers and boards 13,879 13,879 Planning and zoning 6,929 $ 5,561 12,490 Research and investigation 47,831 17,344 $ 4,064 61,111 General government buildings 542,313 699,252 1,241,565 Total staff agencies 715,136 722,157 4,064 1,433,229 Total general government 741,178 722,157 4,064 1,459,271 Public safety: Police protection 261,978 23,486 285,464 Protective inspection 22,097 22,097 Total public safety 284,075 23,486 307,561 �,. Highways 252,721 252,721 Libraries 252,099 45,855 14,611 283,343 Recreation 432,330 28,500 460,830 Total general fixed assets 51,962,403 $819.998 $18.675 $2.763.726 r 41 w OTHER SCHEDULES Schedules included in this section are: Property tax transactions and outstanding balances Bond and bond interest transactions - Bancroft improve- ment bonds Future debt service requirements of Bancroft improvement bonds CITY OF TIGARD, OREGON SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES for the fiscal year ended June 30, 1985 er Property* Add Add Property Taxes Levy as (Deduct) Taxes Receivable Extended Corrections Deduct Deduct Receivable June 30, By and Cash Add Discounts June 30, 1984 Assessor Adjustments Collections Interest Allowed 1985 1984-85 $962,280 $32 $864,334 $ 794 $16,727 $ 82,045 1983-84 $ 92,804 (34) 49,303 4,246 47,713 ar. 1982-83 42,293 (27) 22,613 4,115 23,768 1981-82 20,843 (2) 14,206 3,678 10,313 1980-81 3,403 6 4,487 1,420 342 1979-80 �++ and prior 410 2 78 43 377 $159.753 $962.280 $(2,2) $955.021 $14.296 $16.727 $164.558 Distributed as follows: General Fund: Current $671,594 $ 63,684 Prior years' levies 86,203 78,815 Total General Fund 757,797 142,499 Debt Service Fund 140,046 13,322 Sewer Fund (sewer charges collected on tax roll and included in sewer service charges) 51,603 7,776 80 Storm Drainage Fund (storm drainage charges collected on tax roll and included in storm drainage service charges) 5,575 961 Total $955.021 $164.558 *Included in this amount is $1,708 of property tax receivable attributable to the Tigard Urban Renewal Agency Fund which has been closed. 42 4 4 4 4 4 4 4 4 4 CITY OF TIGARD, OREGON SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS for the fiscal year ended June 30, 1985 Bond Transactions Interest Transactions Out- Out- Out- Out- standing standing standing standing Original June 30, June 30, June 30, June 30, Bancroft Bonds Issue 1984 Issued Matured Paid 1985 1984 Matured Paid 1985 Issued May 1, 1975 $ 15,968 $ 2,000 $ 2,000 $ 2,000 $ 120 $ 120 Issued August 1, 1975 57,840 33,000 3,000 3,000 $ 30,000 2,141 2,141 Issued November 1, 1979 128,082 90,000 15,000 15,000 75,000 $ 673 5,696 5,696 $ 673 Issued November 1, 1981 374,795 330,000 25,000 25,000 305,000 1,625 37,957 37,957 1,625 Issued September 1, 1982 184,664 180,000 5,000 5,000 175,000 19,473 19,473 Issued October 1, 1982 838,600 790,000 60,000 60,000 730,000 73,005 73,005 Issued October 1, 1982 1,371,200 1,290,000 90,000 90,000 1,200,000 667 112,705 112,705 667 Issued September 1, 1984 492,000 $492,000 492,000 22,766 22,766 $2.715.000 $492.000 $200.000 $200.000 $3.007.000 $2.965 $273.863 $273.863 $2.965 General Obligation Bonds Issued June 1, 1984 2,200,000 $2.200.000 $ - $ - $ - $2.200.000 $ - $236.503 $236.503 $ - e ! 4 4 4 4 4 4 CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF BANCROFT IMPROVEMENT BONDS as of June 30, 1985 Year Issued Issued Issued Issued Issued Issued Issued of August 1, 1975, November 1, 1979, November 1, 1981, September 1, 1982, October 1, 1982, October 1, 1982, September 1, 1984, Matur- Total Requirements 6% to 7% 6% to 7-9/10% 11-1/4% to 13% 10-1/4% to 11-3/4% 8-1/2% to 13-1/4% 8-2/10% to 16-3/4% 7.6% to 16% ity Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 1985- 86 $ 250,000 $ 270,651 $ 3,000 $ 1,954 $15,000 $ 4,575 $ 30,000 $ 34,382 $ 5,000 $ 18,884 $ 65,000 $ 65,465 $ 100,000 $102,418 $ 32,000 $ 42,973 1986- 87 278,000 242,951 3,000 1,759 15,000 3,532 35,000 30,158 10,000 18,003 70,000 58,850 110,000 92,468 35,000 38,181 1987- 88 308,000 215,932 3,000 1,556 15,000 2,527 40,000 25,633 10,000 16,828 80,000 52,375 125,000 82,393 35,000 34,620 1988- 89 328,000 187,955 3,000 1,354 15,000 1,519 40,000 21,102 10,000 15,690 85,000 45,050 135,000 71,530 40,000 31,710 1989- 90 363,000 156,929 3,000 1,151 15,000 506 45,000 16,213 10,000 14,640 90,000 37,062 155,000 59,050 45,000 28,307 1990- 91 388,000 122,257 3,000 945 55,000 10,370 10,000 13,640 100,000 28,150 170,000 44,742 50,000 24,410 1991- 92 433,000 83,269 3,000 735 60,000 3,570 10,000 12,640 115,000 17,794 190,000 28,532 55,000 19,998 1992- 93 413,000 43,255 3,000 525 10,000 11,628 125,000 6,094 215,000 9,943 60,000 15,065 1993- 94 78,000 20,515 3,000 315 10,000 10,590 65,000 9,610 1994- 95 88,000 13,007 3,000 105 10,000 9,527 75,000 3,375 1995- 96 10,000 8,445 10,000 8,445 1996- 97 10,000 7,350 10,000 7,350 1997- 98 10,000 6,245 10,000 6,245 1998- 99 10,000 5,130 10,000 5,130 1999- 2000 10,000 4,005 10,000 4,005 2000- 2001 10,000 2,870 10,000 2,870 2001- 2002 10,000 1,725 10,000 1,725 2002- 2003 10,000 575 10,000 575 To- tals $3.007.000 $1.393.066 $30.000 $10.399 $75.000 $12.659 $305.000 $141.428 $175.000 $178.415 $730.000 $310.840 $1.200.000 $491,076 $492,000 $248.249 w CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF GENERAL OBLIGATION BONDS as of June 30, 1985 vir vat Issued June 6, 1984 Year of 9.7% to 18% Maturity Principal Interest 1985-86 $ 40,000 $ 236,503 1986-87 45,000 229,302 1987-88 50,000 221,203 1988-89 55,000 215,202 1989-90 60,000 208,603 1990-91 65,000 202,153 1991-92 75,000 195,490 1992-93 80,000 187,990 1993-94 90,000 180,230 my 1994-95 100,000 171,320 1995-96 110,000 161,320 1996-97 125,000 150,210 1997-98 135,000 137,460 1998-99 150,000 123,555 1999-2000 165,000 107,955 2000-01 185,000 90,630 2001-02 200,000 71,020 wr 2002-03 225,000 49,820 2003-04 245,000 25,970 $2.200,000 $2.965.936 yr r 0 , 45 STATISTICAL SECTION CITY OF TIGARD, OREGON GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION - BUDGETARY BASIS for the last ten fiscal years City-Wide Support Functions Fiscal and Year Ended Community Community Policy and Capital Debt June 30 Services Development Administration Outlay Service Total 1976 $ 549,436 $ 299,757 $ 82,114 $ 117,791 $ 66,924 $1,116,022 1977 631,725 267,107 88,400 105,608 69,774 1,162,614 1978 924,720 444,111 123,769 136,830 60,762 1,690,192 1979 984,687 328,701 143,343 135,088 54,598 1,646,417 1980 1,231,631 510,098 190,308 232,502 50,348 2,214,887 1981 1,398,867 871,638 208,062 638,894 61,827 3,179,288 1982 1,591,208 1,113,210 282,349 551,917 75,425 3,614,109 1983 1,527,913 1,126,758 154,184 367,684 212,282 3,388,821 1984 1,680,374 1,507,879 237,028 241,984 449,545 4,116,810 1985 1,592,319 817,741 114,787 1,414,569 710,366 4,649, 782 Information derived from Comprehensive Annual Financial Reports for all governmental fund types. 46 CITY OF TIGARD, OREGON GENERAL GOVERNMENTAL REVENUES BY SOURCE - BUDGETARY BASIS for the last ten fiscal years Fiscal Year Licenses Inter- Charges Ended Franchise and Governmental for Fines and Miscellaneous June 30 Taxes Fees Permits Revenues Services Forfeitures Revenues* Total 1976 $156,704 $109,755 $112,323 $ 465,117 $ 23,181 $ 26,305 $ 105,577 $ 998,962 1977 308,484 162,828 211,053 489,211 46,808 22,615 92,328 1,333,327 1978 198,159 166,236 359,524 658,901 65,989 32,880 120,466 1,602,155 1979 215,764 205,572 502,113 716,085 114,603 57,410 170,672 1,982,219 1980 256,366 275,861 362,818 893,586 51,074 57,000 329,716 2,226,421 1981 287,157 348,596 379,121 1,179,130 65,612 56,177 261,328 2,577,121 1982 690,118 390,637 267,598 1,381,121 67,286 57,343 491,988 3,346,091 1983 728,641 449,778 347,798 1,456,325 43,460 55,651 1,235,048 4,316,701 1984 904,238 468,020 286,318 921,613 243,102 70,425 932,657 3,826,373 1985 897,843 591,246 524,059 1,058,600 413,124 134,040 1,195,098 4,814,010 *Includes special assessment collections. Information derived from Comprehensive Annual Financial Reports for all governmental fund types. 47 CITY OF TIGARD, OREGON PROPERTY TAX LEVIES AND COLLECTIONS for the last ten fiscal years Percent of Percent of Total Tax Delinquent Fiscal Year Percent Delinquent Total Collections Outstanding Taxes Ended Total Current Tax of Levy Tax Tax to Tax Delinquent to Tax June 30 Tax Levy Collections Collections Collections Collections Levy Taxes Levy 1976 $155,806 $138,839 89.11% $19,551 $158,390 101.66% $ 21,837 14.02% 1977 327,288 293,516 89.68 16,623 310,139 94.76 33,550 10.25 1978 192,345 174,074 90.50 27,656 201,730 104.88 21,179 11.01 1979 227,357 201,349 88.56 17,123 218,472 96.09 27,790 12.22 1980 279,241 245,353 87.86 21,819 267,172 95.68 35,635 12.76 1981 308,904 271,649 87.94 26,884 298,533 96.64 41,516 13.44 1982 756,116 675,712 89.37 19,150 694,862 91.90 85,411 11.30 1983 817,642 722,215 88.33 42,635 764,850 93.54 130,010 15.90 1984 985,234 876,215 88.93 71,058 947,273 96.15 158,045 16.04 1985 962,280 864,334 89.82 90,687 955,021 99.24 164,558 17.10 Effective July 1, 1980, 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 years' 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. Prior to July 1, 1980, taxes were levied as of July 1 each year and were payable quarterly, without interest, on November 15, February 15, May 15 and August 15. Property tax collections do not agree to tax revenues on the schedule of general governmental revenues by source - budgetary basis for the last ten fiscal years due primarily to delinquent sewer charges of the City's Sewer Fund and Storm Drainage Fund which are collected through the tax rolls and included in tax collections above. Information derived from Comprehensive Annual Financial Reports for all governmental fund types. 48 CITY OF TIGARD, OREGON ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY for the last ten fiscal years Ratio of Total • Public Assessed Fiscal Real Property Personal Property Utility Property Total to Total Year Estimated Estimated Estimated Estimated Estimated Ended Assessed Actual Assessed Actual Assessed Actual Assessed Actual Actual June 30, Value Value Value Value Value Value Value Value Value 1976 $160,424,482 $160,424,482 $16,038,701 $16,038,701 $10,904,959 $10,904,959 $187,368,142 $187,368,142 100% 1977 194,968,099 194,968,099 17,145,211 17,145,211 11,422,836 11,422,836 223,536,146 223,536,146 100 1978 234,272,679 234,272,679 18,733,299 18,733,299 13,091,905 13,091,905 266,097,883 266,097,883 100 1979 289,512,146 289,512,146 20,361,151 20,361,151 15,384,874 15,384,874 325,258,171 325,258,171 100 1980 384,440,292 384,440,292 21,065,797 21,065,797 14,968,913 14,968,913 420,475,002 420,475,002 100 1981 452,209,070 481,071,400 22,605,561 25,281,960 15,544,626 20,345,534 490,359,257 526,698,894 93 1982 566,426,435 693,465,000 31,197,001 33,662,670 20,139,054 26,271,473 617,762,490 753,399,143 82 1983 630,046,800 745,709,900 33,540,700 39,470,220 22,611,500 26,570,277 686,199,000 811,750,397 85 1984 712,347,200 786,812,100 37,192,100 40,973,590 26,504,200 29,153,338 776,043,500 856,939,028 91 1985 779,545,300 813,339,300 44,855,600 46,750,700 28,347,800 29,528,863 852,748,700 889,618,863 96 All property is assessed as of January 1, preceding the fiscal year beginning the following July 1. Prior to July 1, 1980, all property was required by State of Oregon statute to be assessed at 100% of its true cash value. Effective July 1, 1980, the true cash value of assessment concept was replaced by a system whereby the assessed value of indi- vidual property may not increase more than 5% annually calculated on a statewide basis. Source: Washington County Department of Assessment and Taxation. CITY OF TIGARD, OREGON PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS (Per $1,000 of Assessed Value) for the last ten fiscal years Washington Fiscal Washington County Year Beaverton Tigard Unified Tualatin County Portland Education Ended City of Washington Tigard School School Water Sewerage Rural Fire Rural Fire Community Service Other June 30, Tigard County District #23 District #48 District Agency District District #1 College District Municipalities Total 1976 $ .82 $1.34 $14.83 $20.63 $.25 $.66 $2.58 $ .11 $.65 $.49 $ .49 $42.85 1977 1.45 1.52 14.51 18.55 .28 .73 3.01 .15 .62 .45 .57 41.84 1978 .71 1.36 12.71 15.75 .29 .75 2.79 .22 .58 .41 .84 36.41 1979 .68 1.18 10.79 13.41 .33 .61 2.84 .25 .52 .37 .70 31.68 1980 .63 1.04 9.93 11.38 .30 .34 2.66 .22 .44 .30 .38 27.62 1981 .60 1.65 10.81 12.73 .34 .36 3.08 .30 .43 .28 .38 30.96 1982 1.19 4.23 11.34 14.95 .33 .35 2.86 .35 .58 .26 .80 37.24 1983 1.12 4.02 13.01 14.76 .51 .55 3.28 2.70 .57 .26 1.23 42.01 1984 1.18 1.88 12.67 13.97 .36 .61 3.15 2.70 .57 .26 1.48 38.83 0 1985 1.06 1.97 12.12 13.76 .37 .49 3.12 2.71 .57 .26 1.62 38.05 Tax rates, expressed in dollars and cents per $1,000 of assessed value of taxable property in each taxing district, are required by the State Constitution to be uniform throughout the district. 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. The operating levy may be increased annually to 106% of the highest levy in the prior three years. Levy increases are permitted in the year following expansion of a district's boundaries. Special operating levies may be approved for periods not exceeding 10 years. 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. Source: Washington County Department of Assessment and Taxation. 1 I CITY OF TIGARD, OREGON SPECIAL ASSESSMENT COLLECTIONS for the last ten fiscal years Fiscal Year Current Ratio of Total Ended Assessments Assessments Collections Outstanding June 30 Due (1) Collected (2) to Amount Due Assessments 1976 $ 30,000 $ 28,141 87.9% $ 113,014 1977 33,448 22,944 68.6 90,070 1978 25,000 26,328 105.3 63,741 1979 24,000 37,435 155.9 26,306 1980 29,000 19,374 66.8 224,101 1981 37,082 46,405 125.1 374,788 1982 32,000 61,068 190.8 2,067,732 1983 34,795 775,749 2,229.5 2,751,376 1984 174,464 469,969 269.4 2,417,184 1985 200,000 467,195 233.6 2,552,458 (1) This amount is equal to the principal due on Bancroft improvement bonds. (2) Represents collections of current assessments for payment of Bancroft improvement bonds as well as assessment collections on projects for which such bonds have not been issued. Source: City assessment records. 51 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 Ratio of Fiscal Obligation Less Debt Net Bonded Year Bonded Service Net Debt to Net Bonded Ended Assessed Debt Out- Monies Bonded Assessed Debt Per June 30, Population Value standing Available Debt Value Capita 1976 10,226 $187,368,142 $ 96,000 $19,729 $ 76,271 .04 $ 7.46 1977 11,114 223,536,146 74,000 21,030 52,970 .02 4.77 1978 11,899 266,097,883 50,000 22,445 27,555 .01 2.32 1979 13,697 325,258,171 29,000 24,601 4,399 .32 1980 14,855 420,475,002 20,000 27,698 (7,698) 1981 14,690 490,359,257 10,000 10,000 1982 * * * * * * * 1983 * * * * * * * 1984 18,287 776,043,500 2,200,000 - 2,200,000 .28 120.30 1985 19,113 852,748,700 2,200,000 - 2,200,000 .26 115.10 Excludes Bancroft improvement bonds since these bonds are repaid from assessments against benefited property owners. *There was no outstanding general obligation bonded debt in 1983 and 1984. Sources: City budget documents, Comprehensive Annual Financial Reports of the City and Washington County Department of Assessment and Taxation. 52 CITY OF TIGARD, OREGON COMPUTATION OF LEGAL DEBT MARGIN June 30, 1985 ORS 287.004 provides a debt limit of 3% of the true cash value of all taxable property within the City boundaries: True cash value (1984-85) (1) $889,618,863 General obligation debt limit x3% 26,688,566 Gross bonded debt $5,207,000 Excludable debt - Bancroft improvement bonds (3,007,000) Debt subject to limitation 2,200,000 Legal debt margin - amount available for future indebtedness $ 24,488,566 (1 ) From Washington County Department of Assessment and Taxation. 53 CITY OF TIGARD, OREGON COMPUTATION OF OVERLAPPING GENERAL OBLIGATION DEBT June 30, 1985 Percent Applicable Amount Appli- Net Debt Inside City cable Inside Jurisdiction Outstanding of Tigard City of Tigard Port of Portland $146,820,000 2.45% $ 3,597,090 Washington County 12,150,000 10.10 118,675 Unified Sewerage Agency 28,205,000 12.52 3,032,344 U.S.A. Metzger 546,000 23.76 128,304 Metzger Water District 119,366 52.09 62,178 Metzger Combined Water District 4,934,860 33.75 1,665,515 Tigard Water District 1,675,000 74.85 1,253,738 Tualatin Rural Fire District 620,000 33.76 209,312 Washington County Fire District #1 4,035,000 3.15 127,103 Tigard School District #23-J 15,863,000 49.31 7,822,045 Beaverton School District #48 23,570,000 1.68 395,976 $238,538,226 $18.412,280 Source: Oregon Municipal Debt Advisory Commission. 54 CITY OF TIGARD, OREGON RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES for the last ten fiscal years Percent of Debt Fiscal Year Total Total Service to Ended Debt General Total General June 30 Principal Interest Service Expenditures Expenditures 1976 $ 52,000 $ 14,924 $ 66,924 $1,116,022 6.0 1977 55,448 14,326 69,774 1,162,614 6.0 1978 49,000 11,762 60,762 1,690,192 3.6 1979 45,000 9,598 54,598 1,646,417 3.3 1980 38,000 12,348 50,348 2,214,887 2.3 1981 47,082 14,745 61,827 3,179,288 1.9 1982 42,000 33,425 75,425 3,614,109 2.1 1983 34,795 177,487 212,282 3,388,821 6.3 1984 174,464 275,081 449,545 4,116,810 10.9 1985 200,000 510,366 710,366 4,649,782 15.3 Note: Includes Special Assessment Debt. Source: Comprehensive Annual Financial Reports of the City. 55 CITY OF TIGARD, OREGON PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS for the last ten fiscal years Commercial Residential Fiscal Year Construction(1) Construction(1) Ended Number of Number of Bank Deposits June 30 Permits Value Permits Value (in thousands)(2) 1976 38 $ 2,804,650 390 $ 9,708,691 $ 54,231 1977 112 6,879,656 582 16,107,157 64,929 1978 106 8,095,118 379 15,031,551 77,314 1979 69 10,877,291 657 24,000,387 90,305 1980 131 15,619,615 387 14,861,284 101,799 1981 131 8,013,746 289 18,343,452 101,520 1982 85 2,918,475 196 11,679,358 98,558 1983 102 3,940,579 244 13,281,694 102,314 1984 25 4,079,306 214 14,006,305 118,124 1985 33 9,890,600 231 16,948,338 129,152 (1) From City of Tigard Building Department. (2) From State of Oregon Department of Commerce, Oregon Banking Division. 56 CITY OF TIGARD, OREGON PRINCIPAL TAXPAYERS June 30, 1985 Percentage of Total Assessed Assessed Taxpayer Type of Business Valuation Valuation Crow-Spieker-Hosford Business Center $21,267,600 2.49% Pacific Realty Trust Real estate brokers 15,071,000 1.77 Fringe Land Ore Ltd Real estate 9,099,000 1.07 F.I.G. Holding Company Insurance 6,620,800 .78 Duane Co. (Fred Meyer) Shopping Center 6,150,700 .72 Williams Air Control Manufacturing 5,863,200 .69 Lamb Weston Food Processing 5,130,200 .60 Sunset Terrace/Verdugo Parkview Apartments Apartments 4,919,900 .58 Coast Finance Finance 4,825,600 .57 Farwest Assoc. Summerfield Tanglewood Assoc. Real estate 4,664,900 .55 Source: Washington County Department of Assessment and Taxation, based on April 1985 assessed valuation. 57 CITY OF TIGARD, OREGON DEMOGRAPHIC STATISTICS for the last ten fiscal years (2) (2) Per Capita Unemployment Income (3) Rate (1) (Washington School (Portland Fiscal Year Population County) Enrollment Metro. Area) 1976 10,226 6,907 5,691 8.7 1977 11,114 7,784 5,654 6.8 1978 11,899 8,800 5,643 5.2 1979 13,697 9,649 5,966 5.4 1980 14,855 10,935 6,256 6.3 1981 14,690 N/A 6,422 8.0 1982 17,700 N/A 6,491 N/A 1983 18,000 N/A 6,561 9.9(est. ) 1984 18,287 N/A 6,358 8.1 1985 19,113 N/A 6,387 8.0 Sources of information: (1) Portland State University, Population Research & Census Center. (2) U. S. Bureau of Labor Statistics. (3) Tigard School District 23J. Information regarding the Median Age and Education Level of the City population is not available. N/A - Not available. 58 CITY OF TIGARD, OREGON MISCELLANEOUS STATISTICAL DATA June 30, 1985 Date of incorporation 1961 Form of government Council - Mayor - Administrator Area 8.6 square miles Miles of streets 93.38 miles Number of street lights 1,393 Police protection: Number of stations 1 Number of policemen and officers 22 Elementary Junior High High School Education (elementary only): Attendance centers 9 2 1 Number of classrooms 204 102 86 Number of teachers 205 97 94 Number of students 3,416 1,581 1,390 Sanitary sewers 69.55 miles Building permits issued 528 permits were issued during fiscal year 1985 Recreation and culture: Number of parks Nine parks, totaling 60 acres Number of libraries 1 library Number of volumes Approximately 27,000 volumes Employees: Classified service 52 Exempt 32 Information obtained from the various departments of the City of Tigard, Oregon. 59 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS 40 40 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Oregon Administrative Rules 165-30-100 through 165-30- 295 of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the finan- cial statements, schedules, comments and disclosures required in audit reports. The required statements and schedules are set forth in the preceding sections of this report. Required comments and disclosures related to our examination of such statements and schedules are set forth following. 60 wr AUDIT COMMENTS AND DISCLOSURES 440 I . Internal Accounting Control: We have examined the combined financial statements of *i. the City of Tigard, Oregon for the year ended June 30, 1985 and our report thereon, dated September 11, 1985, is included in a preceding section of this report. As part of our examination, we have obtained an understanding of accounting systems and controls 00 incorporated therein as required by generally accepted auditing standards. The purpose of gaining such an understanding is to assist the auditor in planning the nature and scope of the exami- nation of the combined financial statements. The process of 40 obtaining such an understanding is more limited than a study and evaluation necessary to express an opinion on the system of internal accounting control taken as a whole. Based on our understanding, we determined that our examination could be more 40 efficiently conducted without placing significant reliance on internal accounting controls and, therefore, we did not directly evaluate and test them. The nature and extent of our other auditing procedures were adjusted accordingly. 40 Our examination of the combined financial statements would not necessarily disclose all weaknesses in the system because it was based on selective tests of accounting records and ,,0 related data. Accordingly, we do not express an opinion on the system of internal accounting control of the City of Tigard, Oregon taken as a whole. However, based solely on the procedures described above, nothing came to our attention during our examina- ,, tion that indicated the existence of a material weakness . For this purpose, a weakness is considered material if it results in more than a relatively low risk that errors or irregularities in amounts that would be material in relation to the combined finan- 40 cial statements of the City of Tigard, Oregon may occur and not be detected within a timely period. 4, 61 AUDIT COMMENTS AND DISCLOSURES, Continued I . Internal Accounting Control , Continued: This report is intended solely for the use of management and the State of Oregon, Secretary of State, Division of Audits and should not be used for any other purpose. II . Accounting Records: In general we found the condition of the accounting records adequate for audit purposes. III . Compliance with Leaal Requirements : A. Budgeting and Tax Levies: The City has complied with the Local Budget Law (ORS 294.305 to 294. 520) in the preparation and adoption of its budget and tax levies for the fiscal years ended June 30, 1985 and 1986 . B. Indebtedness: The bonded debt of the City is in compliance with the limitations imposed by ORS 287.004 and 223 .295. C. Adequacy of Collateral Securing Depository Balances: ORS Chapter 295 provides that each depository, through- out the period of its possession of public fund depos- its, shall maintain on deposit with its custodians, at its own expense, securities having a value not less than 25% of the certificates of participation issued by the pool manager for funds in excess of those insured by the federal insurers. 62 AUDIT COMMENTS AND DISCLOSURES, Continued III . Compliance with Legal Requirements, Continued: C. Adequacy of Collateral Securing Depository Balances, Continued: We reviewed the records of the City for compliance with the requirements of ORS 295 regarding collateral secur- ing depository balances. During the year ended June 30, 1985, the City was out of compliance with the require- ments of ORS 895 for the months of July and August of 1984. The depository balance exceeded the collateral by the amount of matured interest earnings accruing to the principal balance. The deficiency was corrected in September 1984. No other instances of noncompliance were noted. IV. Programs Funded from Outside Sources: A. Federal and State Grants: We reviewed and tested, to the extent deemed appropri- ate, transactions and reports of the federal and state programs in which the City participates. We did not consider the scope of our audit engagement as requiring us to make a complete audit examination of each project and our audit opinion on the City' s combined financial statements does not cover each individual grant. Each grant is subject to audit by the grantor agency and any adjustments may become a liability of the apppropriate fund. 63 AUDIT COMMENTS AND DISCLOSURES, Continued IV. Programs Funded from Outside Sources, Continued: A. Federal and State Grants, Continued: Based on our tests of the accounting records and exam- ination of reports to grantor agencies, we were, in general, satisfied as to the propriety of accounting for such revenues and expenditures for the fiscal year ended June 30, 1985, subject to any adjustments subsequently required as a result of audits performed by the grantor agencies . B. Federal Revenue Sharing: We reviewed and tested the City' s participation in the Federal Revenue Sharing Program for financial compliance as prescribed in the audit guide issued by the Office of Revenue Sharing. The review disclosed no conditions which we considered to be matters of noncompliance. V. Insurance and Fidelity Bond Coverage: We examined the City' s insurance and fidelity bond coverage at June 30, 1985 . We ascertained that such policies appeared to be in force. We are not competent by training to state whether the insurance policies covering City-owned property in force at June 30, 1985 are adequate. VI . Cost Accounting System: Our review of the City' s cost accounting system dis- closed no substantial noncompliance with the Cost Accounting Guidelines developed by the State of Oregon Executive Department. 64