City of Tigard Comprehensive Annual Financial Report Fiscal Year Ended June 30 - 2020 City of Tigard, Oregon
Comprehensive Annual
Financial Report
FISCAL YEAR ENDING JUNE 30, 2020
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13125 SW Hall Boulevard I Tigard, OR 97223 I www.tigard-or.gov
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City of Tigard, Oregon
Comprehensive Annual Financial Report
For the fiscal year ended, June 30, 2020
Prepared by:
City of Tigard — Finance and Information Services Department
3
City of Tigard, Oregon
Table of Contents
Introductory Section
Letter of Transmittal 11
Certificate of Achievement for Excellence in Financial Reporting 19
Organization Chart 20
Principal Officials 21
Financial Section
Report of Independent Auditors 25
Management's Discussion and Analysis 28
Basic Financial Statements:
Government-Wide Financial Statements
Statement of Net Position 45
Statement of Activities 46
Fund Financial Statements
Major Governmental Funds:
Balance Sheet 48
Reconciliation of the Balance Sheet to the Statement of
Net Position 49
Statement of Revenues, Expenditures,and Changes in Fund Balance 50
Reconciliation of the Statement of Revenues, Expenditures,and
Changes in Fund Balance to the Statement of Activities 51
Proprietary Funds:
Statement of Net Position 52
Statement of Revenues, Expenses,and Changes in Fund Net Position 53
Statement of Cash Flows 54
Pension Trust Fund:
Statement of Fiduciary Net Position 57
Statement of Changes in Fiduciary Net Position 58
Notes to Basic Financial Statements 61
Required Supplementary Information:
Schedules of Revenues and Expenditures—Budget and Actual:
General Fund 122
Schedule of the City's Proportionate Share of the Net Pension Liability(Asset) 123
Schedule of City's Contributions—Oregon Public Employees Retirement System 124
Schedule of the Changes in the City's Total OPEB Liability and
Related Ratios—Implicit Rate Subsidy Plan 125
Schedule of the City's Proportionate Share of the Net OPEB Liability(Asset)—Oregon
Public Employees Retirement System, Retirement Health Insurance Account 126
Schedule of the City's Contributions—Oregon Public Employees Retirement System,
Retirement Health Insurance Account 127
Other Supplementary Information:
Nonmajor Governmental Funds Combining Statements:
Combining Balance Sheet 129
Combining Statement of Revenues, Expenditures,and Changes in Fund Balances 130
Special Revenue Funds:
Combining Balance Sheet—Nonmajor Special Revenue Funds 134
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City of Tigard, Oregon
Table of Contents, continued
Financial Section, Continued
Other Supplementary Information,Continued:
Combining Statement of Revenues, Expenditures,and Changes in Fund Balance 136
Schedules of Revenues and Expenditures—Budget and Actual:
Gas Tax Fund 138
City Gas Tax Fund 139
Transient Lodging Tax Fund 140
Electrical Inspection Fund 141
Building Fund 142
Criminal Forfeiture Fund 143
Urban Forestry Fund 144
Parks Utility Fund 145
Library Fund 146
Debt Service Funds:
Combining Balance Sheet—Nonmajor Debt Service Funds 151
Combining Statement of Revenues, Expenditures,and Changes in Fund Balance—Nonmajor
Debt Service Funds 152
Schedules of Revenues and Expenditures—Budget and Actual:
Bancroft Bond Debt Service Fund 153
City Center Urban Renewal Debt Service Fund 154
Tigard Triangle Debt Service Fund 155
Major Debt Service Fund Schedule of Revenues and Expenditures—Budget and Actual:
General Obligation Debt Service Fund 156
Capital Projects Funds:
Combining Balance Sheet—Nonmajor Capital Projects Funds 160
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance—Nonmajor Capital Projects Funds 162
Schedule of Revenues and Expenditures—Budget and Actual:
Facility Fund 164
Transportation Development Tax Fund 165
Underground Utility Fund 166
Street Maintenance Fee Fund 167
Transportation SDC Fund 168
Parks Capital Fund 169
Parks Bond Fund 170
Parks SDC Fund 171
Transportation CIP Fund 172
City Center Capital Improvements Fund 173
Tigard Triangle Capital Improvements Fund 174
Proprietary Funds:
Enterprise Funds:
Schedules of Revenues and Expenditures—Budget and Actual:
Sanitary Sewer Fund 177
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Sanitary Sewer Fund 178
Stormwater Fund 179
Water Quality and Quantity Fund 180
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Stormwater Funds 181
Water Fund 182
Water SDC Fund 183
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City of Tigard, Oregon
Table of Contents, continued
Financial Section, Continued
Other Supplementary Information,Continued:
Water CIP Fund 184
Water Debt Service Fund 185
Reconciliation of Budgetary Revenues and Expenditures to Proprietary
Revenues and Expenses—Water Funds 186
Reconciliation of Budgetary Fund Balance to Generally Accepted
Accounting Principles Basis Net Position 187
Internal Service Funds:
Combining Statement of Net Position 192
Combining Statement of Revenues, Expenses,and Changes in Fund Net Position 194
Combining Statement of Cash Flows 196
Internal Service Funds,Continued:
Schedules of Revenues and Expenditures—Budget and Actual:
Central Service Fund 198
Public Works Administration Fund 199
Public Works Engineering Fund 200
Fleet/Property Management Fund 201
Insurance Fund 202
Other Schedules:
Schedule of Bond and Bond Interest Transactions 205
Schedule of Future Debt Service Requirements of:
General Obligation Bonds 206
Full Faith and Credit Bonds 207
Water Revenue Bonds 208
Safe Drinking Water Revolving Loan Funds 209
Statistical Section
Net Position by Component 214
Changes in Net Position 216
Fund Balances of Governmental Funds 220
Changes in Fund Balances of Governmental Funds 222
Governmental and Business-Type Revenues 224
Governmental and Business-Type Expenses by Function 226
General Governmental Revenues by Sources 228
General Governmental Expenditures by Function 230
Market Value and Assessed Value of Taxable Property 231
Property Tax Rates—Direct and Overlapping Governments 232
Principal Property Taxpayers 234
Property Tax Levies and Collections 235
Special Assessment Collections 236
Ratio of Annual Debt Service Expenditures for Long-Term Debt to
Total Governmental Expenditures 237
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt per Capita 238
Computation of Direct and Overlapping Debt 239
Computation of Legal Debt Margin 240
Ratio of Debt by Type 242
Computation of Water Revenue Bonds Debt Coverage 244
Demographics Statistics 246
Principal Employers 247
Property Value and Construction 248
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City of Tigard, Oregon
Table of Contents, continued
Statistical Section,Continued
Full-time Equivalent City Government Employees by Function 249
Operating Indicators by Function/Program 250
Capital Assets Statistics by Function 252
Miscellaneous Statistical Data 253
Audit Comments and Disclosure Requirements
Report of Independent Auditors Required by Oregon State Regulations 258
Report of Independent Auditors on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 260
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Introductory Section
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10
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City of Tigard
December 3, 2020
Citizens of Tigard
Honorable Mayor and City Council
We are pleased to submit the Comprehensive Annual Financial Report of the City of Tigard, Oregon, for the
fiscal year ended June 30, 2020, together with the opinion thereon of our independent certified public
accountants, Moss Adams LLP. This report is required by Oregon Revised Statutes 297.425 and is prepared
by the Department of Finance and Information Services.
This report presents fairly the financial position of the various funds of the city at June 30, 2020, and the
results of operations of such funds and the cash flows of the proprietary fund types for the year then ended
in conformity with accounting principles generally accepted in the United States of America (GAAP). It is
prepared in conformance with the guidelines for financial reporting developed by the Government Finance
Officers Association of the United States and Canada and the principles established by the Governmental
Accounting Standards Board (GASB), including all effective GASB pronouncements. This report consists of
management's representations concerning the finances of the city. Consequently, management assumes full
responsibility for the completeness and reliability of all the information presented in this report. To provide
a reasonable basis for making these representations, management of the city has established a
comprehensive internal control framework that is designed both to protect the city's assets from loss, theft,
or misuse and to compile sufficient reliable information for the preparation of the city's financial statements
in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the city's
comprehensive framework of internal controls has been designed to provide reasonable rather than absolute
assurance that the financial statements will be free from material misstatements.As management,we assert
that, to the best of our knowledge and belief, this financial report is complete and reliable in all material
respects.
The city's financial statements were audited by Moss Adams LLP, a firm of licensed certified public
accountants. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the city for the fiscal year ending June 30, 2020, are free of material misstatement. The
independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent auditors
concluded, based upon the audit,that there was a reasonable basis for rendering an unmodified opinion that
the city's basic financial statements for the fiscal year ended June 30, 2020, are fairly presented, in all material
respects, in conformity with GAAP. The independent auditor's report is included in the financial section of
this report.
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GAAP require that management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it. The city's MD&A
can be found immediately following the report of the independent auditors.
Profile of the City of Tigard, Oregon
rt Jay The City of Tigard is located in southeast Washington County, 9 miles from
1.►�. downtown Portland, Oregon. The city is included in the Metro urban growth
Tligprd boundary and Tigard's neighboring cities include Beaverton, Lake Oswego,
Tualatin, Durham, Portland,and King City.State Highway 99W,runs north and
Oregon south through the eastern portion of the city as a major commuter corridor
to the City of Portland. Interstate 5 and Highway 217 connect Tigard's
residents and workforce to the regional economy of 2.5 million residents.
Tigard's major greenway called Fanno Creek connects neighborhoods to the
natural environment and several of the city's parks.The incorporated area of the city represents 12.2 square
miles and has a population just over 53,000.
The city can extend its corporate limits by annexation,which is permitted by state statute.Since 2012,the city
has annexed over 500 acres of land west of the city that was largely farmland. Planning for development in
that area, known as River Terrace, began in earnest during fiscal year 2014 and continued in fiscal year 2015
with the adoption of the River Terrace Community Plan, a .,
long-range plan to guide public and private investment
and development to aid with transition from farmland to
residential land over the next several decades.
Throughout fiscal year 2020, permitting and construction hwy2s
phase of development of River Terrace was in full swing. Portland
Full build out is expected to take roughly 20 years. Upon ii
completion, River Terrace is expected to be home to
around 6,500 new residents. More information about F!
Tigard's newest neighborhood is on the city's website at: Beaverton
http://www.tigard-or.gov/river terrace.php.
The city is governed by an elected mayor and four council
members who comprise the city council.The city's charter Tigard "
established the Mayor/Council form of government. Each g
member of the city council is elected at-large to serve a s� Osw o
es'
four-year term. The mayor presides at council meetings h
and is elected at-large for a four-year term.The mayor and
council provide community leadership, develop policies to Tualatin
guide the city in delivering services and achieving 1-205
community goals, and encourage citizen awareness and
involvement.
The city council appoints a city manager, who is the chief administrative officer of the city. The city manager
is responsible for ensuring council policies are implemented using resources appropriated by the council to
achieve desired service results in the community.
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The city provides a full range of municipal services. These services include police, municipal court, community
planning and development, parks, library, capital improvement planning, administration and central services,
street maintenance, water, and other general public works activities. The city owns and maintains the
wastewater and storm drainage system within the city limits under an agreement with Clean Water Services.
Fire protection is provided by Tualatin Valley Fire and Rescue.
The legally separate Tigard Town Center Development Agency(TCDA),formerly the City Center Development
Agency, is also included in the city's financial statements as a component unit.TCDA is the city's urban renewal
and redevelopment agency with a primary purpose to undertake urban renewal projects and activities
pursuant to the city's downtown and Tigard Triangle redevelopment plan.
The city maintains budgetary controls to ensure compliance with legal provisions in the annual appropriated
budget adopted by the city council.Activities of all funds are included in the annual adopted budget.The level
of budgetary control (that is,the level at which expenditures cannot legally exceed the appropriated amount)
is established by program within each individual fund.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from
the broader perspective of the specific environment within which the City of Tigard operates.
Local Economy
The city's location in the Portland metropolitan region provides residents with many diverse employment
opportunities. Most Tigard's residents in the workforce commute to a job somewhere else in the region. Every
day more than 43,000 residents from somewhere else in the region commute into Tigard for work and more
than 30,000 Tigard residents are employed in Tigard or commute to employment somewhere else in the
Portland metro region.
The chart below shows a ten-year comparison of unemployment rates for the state and local areas as well as
the U.S. by fiscal year (FY).The area's unemployment rate has steadily declined over this period, until the FY
ended June 30, 2020 when unemployment more than doubled the amount of the previous year due to the
COVID-19 pandemic. Tigard's most current unemployment rate is 10.8 percent as of June 2020, which is 0.7
percent lower than the Portland Metro area and 0.8 percent lower than the State of Oregon.
Unemployment trends
12.0%
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10.0%
cc
• 8.0%
6.0%
T
Q. 4.0%
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• 2.0%
0.0%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
-State of Oregon 9.4% 8.5% 8.1% 6.8% 5.5% 4.8% 3.7% 4.0% 4.0% 11.6%
-United States 9.2% 8.2% 7.8% 6.1% 5.3% 4.9% 4.3% 4.0% 3.7% 11.1%
-Portland Metro 9.5% 8.0% 7.6% 6.1% 5.4% 4.9% 3.7% 3.6% 4.0% 11.5%
-Washington County 8.1% 8.2% 6.6% 5.6% 5.0% 4.7% 3.5% 3.5% 3.4% 10.4%
-City of Tigard 8.1% 8.2% 6.696 5.4% 4.5% 4.4% 3.5% 3.5% 3.4% 10.8%
Fiscal year
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Response to COVID-19
On March 17, 2020, the city declared a state of emergency, which authorized staff to enact emergency
operations, delegated purchasing and contract signature authority to the City Manager, waived all late fees
and utility shutoffs, protected the health of city employees, relaxed enforcement of city codes to ease burdens
on businesses and service sector workers. Many of the city's walk-in services have been disrupted, however
public safety, water and sewer services continue uninterrupted. An example of the impact COVID-19 has had
on our services can be seen the reduction of Police "calls for service" as reported in the statistical section at
the end of the document (Operating Indicators by Function/ Program). Police calls for service include both
public-demand dispatched calls and proactive, officer-initiated calls. In order to maintain appropriate social
distance and preserve the health and safety of our officers and residents, the Police Department reduced
some types of self-initiated actions once the City declared a state of emergency.
The city has continued critical maintenance and repair work while incorporating social distancing
precautionary measures for engineering and construction staff, and staff performing essential work in the
field and at physical city locations.
The city has responded to the pandemic in a number of ways. The city leveraged $300,000 of General Fund
dollars to work with Community Development Financial Institutions and through state and federal CARES Act
funding to provide business assistance of over$3 million.Through our Resident Aid Fund of Tigard (RAFT)the
city provided $100,000 of General Fund dollars to help those that are houseless find shelter and help those
on the brink of becoming houseless keep their homes. Lastly,through Tigard AID,the city has provided various
levels of utility billing assistance.The city already has a program to help those that qualify on an income basis
to pay the water portion of the utility bill. This program has been expanded by up to $50,000 by increasing
the amount and frequency of assistance. The city created a program where individuals and businesses
impacted by COVID can receive up to $40/month of assistance on their utility bill. The city pledged up to
$125,000 through December 31, 2020 for businesses and up to $625,000 for individuals through December
31, 2020. Lastly, the city delayed utility rate increases that were scheduled to take effect on July 1, 2020 to
January 1, 2021. Across the city's water, sewer, stormwater, streets, and parks charges on the utility bill,this
delay in rate increases provided $1.4 million in bill relief for all customers.
The COVID-19 pandemic is a significant new development that the city is closely monitoring to forecast the
city's finances and outlook.Accordingly, any historical information or budgets and projections which predate
the COVID-19 pandemic or do not include information regarding its impact, should be considered in light of a
possible or probable negative impact from the COVID-19 pandemic. The city was able to include preliminary
estimates of revenue impacts in the FY 2020-2021 Adopted Budget. Since the city is not heavily dependent
on the sectors of the economy hardest hit, the city has not had to reduce services or lay off employees. The
impact of the pandemic to the city's economy and tax revenue will continue to be monitored.
While it appears that the city has sufficient revenues and reserves to maintain services, there can be no
assurances that the spread of COVID-19 will not materially affect the city or have an adverse impact upon
revenue collections.
2020 Summary of Local Statistics
Number of businesses 2,609
Median household income $75,795
Median home value $375,100
General fund permanent tax rate $2.5131 per$1,000 of assessed value
Total assessed value (est. 2019/2020) 7,046,400,810
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Long-term Financial Planning
The city prepares a comprehensive long-term financial forecast annually. By forecasting and anticipating
financial trends, the city can develop strategies to respond to emerging financial trends. The city forecasts
operating fund revenues and expenditures over a six-year period.The forecast is adjusted as each year's final
results are known and as budgets are prepared for the following year. In addition,the city also prepares a six-
year Capital Improvement Plan (CIP) that is also updated every year. The CIP is developed through a process
separate from, but parallel to the budget process.The impact on future operating and maintenance costs are
projected from the CIP and then incorporated in the long-term financial forecast.The city's adopted fiscal year
2020—2025 CIP can be found on line at http://www.tigard-or.gov/city hall/cip.php
Financial Policies
The City of Tigard has established financial policies to account for public funds, manage municipal finances
wisely and plan adequate funding of services and facilities desired and needed by the public. The financial
policies are adopted annually by the city council in connection with the budget process.Consistent application
of these financial policies has helped ensure the city has appropriately recorded and accounted for
transactions in our financial statements. The adopted fiscal year 2020 budget document includes the city's
financial policies noted in the appendix starting on page 401. The policies can be found on line at:
httn://publicrecords.tiard-or.aov/Public/DocView.asnx?id=973365&dbid=0&repo=CitvOffi and
The goals of Tigard's fiscal policies are:
• To enhance the city council's policy-making ability by providing accurate information on program and
operating costs.
• To assist sound management of the city government by providing accurate and timely information on
current and anticipated financial conditions.
• To provide sound principles to guide important decisions of the council and management which have
significant fiscal impact.
• To set forth operational principles,which minimize the cost and financial risk of the city's government
consistent with services, desired by the public.
• To employ revenue policies, which prevent undue or unbalanced reliance on any one source,
distribute the cost of municipal services fairly, and provide adequate funds to operate desired
programs.
• To provide and maintain essential public facilities, utilities, infrastructure and capital equipment.
• To protect and enhance the city's credit rating.
• To insure that all surplus cash is prudently invested in accordance with the investment policy adopted
by the council to protect city funds and realize a reasonable rate of return.
Major initiatives
The Tigard City Council meets annually in connection with the budget process to establish goals. Council goals
are comprised of high-priority tasks or programs that the city council intends to complete or initiate during
the two-year timeframe that the council will serve together, though attainment of these goals may take
several years. The goals are based on departmental needs, bi-annual community survey results and city
council priorities. In the goal-setting meeting,the city council reviews information and develops its annual and
long-term goals. Council goals set the priorities for city government and are incorporated into departmental
work plans. For 2019-2021 council established goals for the city as follows:
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1. Ensure the city's continued financial stability and sustainability while providing mandated services.
Seek ways to fund and increase services valued by the community.
• Develop and implement a communications plan, for city staff and elected officials, to engage the
public about the cost and value of city services and explain funding challenges.
• Increase trust with the community by regularly publishing a city report card,detailing our progress
and challenges, and comparing our work to peer cities.
• Pursue a local option levy and/or bond in May 2020.
• By May 2019, determine specific services and/or facilities the voter will get by approving a local
option levy and/or bond proposal and begin communicating it to the voters.
• Council will actively participate in the city's communications regarding the community benefits of
the local option levy and/or bond.
• By mid-January,2020 refer a local option levy and/or bond for voters to consider at the May,2020
election.
2. Invest and connect key areas of the city to promote economic growth and community vitality.
• Ensure that Tigard Triangle urban renewal investments promote equitable development and
create a vibrant,walkable, and connected district.
• Continue to make Downtown Tigard a place people want to be by making substantial progress on
projects that attract new residential and business investment:
o Design and engineering of the Universal Plaza
o Construction of the Tigard Street Heritage Trail/Rotary Plaza
o Redevelopment of the Main St. at Fanno Creek property
o Main Street Green Street Phase 2
o Fanno Creek Overlook
o Cultivate more relationships with future developers that share our multigenerational
transit-oriented development vision.
o Create an inventory of sites with high potential for transit-oriented housing
redevelopment.
o Support and participate in a branding effort for the Downtown and Tigard Triangle.
o Evaluate the size and scope of the City Center Urban Renewal Plan to determine whether
tax increment resources in the downtown are sufficient to meet council objectives.
Prepare recommendations regarding the City Center urban renewal area's possible
continuation.
o Pursue the Ash Street Crossing to improve multi-modal circulation in the downtown.
o Update the 2007 Leland report to accelerate downtown redevelopment, focusing on
leverage possibilities from SW Corridor and other active transportation investments.
• Ensure the Southwest Corridor project maximizes benefits to the Tigard community and
minimizes negative impacts by implementing the memorandum of understanding with Tri-Met.
Ensure urban design and pedestrian connections to Tigard light rail stations is prioritized in station
area access plans.
• Complete an initial assessment of Washington Square Regional Center Plan District and related
development code.Identify barriers to redevelopment and develop a project of planning and code
updates to attract investment in commercial, office, and high-density residential development
with a range of price points.
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3. Ensure Tigard grows and develops in a smart and inclusive manner.
• Secure external resources to:
o Accomplish all planning and outreach activities necessary to expand the city's urban
growth boundary to include the South River Terrace Area. Complete Title 11 compliance,
apply to Metro for UGB expansion, and annex South River Terrace.
o Prepare a concept plan for West River Terrace.
• The city will direct all work under this goal,which is contingent on:
o All direct, indirect and overhead costs necessary to make South River Terrace
"development-ready"funded by private sector partners and/or through grants prepared
at the expense of the private sector partner.
o The continuation of existing city plans and projects such that they are neither slowed nor
disrupted by River Terrace planning.
o The inclusion of equitable development principles in River Terrace planning.
• Complete an Affordable Housing Plan and adopt recommended strategies to promote the
development and retention of affordable housing in Tigard. Increase advocacy at the regional
level for housing that is affordable,funding strategies, and consider an excise tax.
• Study the viability for any future expansions of the city's urban growth boundary to include
employment land so that new growth and ongoing service costs to Tigard residents and
businesses are balanced.
4. Enhance two-way communication to understand community priorities and involve the community
in the decision-making process.
• Develop and implement strategies for city staff and council to engage with and hear directly from
a wide variety of residents and businesses on important issues.
• Initiate listening sessions with residents of unincorporated areas, within the urban growth
boundary, about the opportunity for annexation.
• Increase community understanding and knowledge of the city, its services and fiscal situation.
• Promote an inclusive, open-minded, and progressive community. Implement initiatives to
improve city services and participation that captures the diversity of the community and improves
equity and inclusion.
5. Enhance walkability and pedestrian connectivity.
• Develop an implementation strategy related to the ADA Transition Plan to identify the priorities
for curb ramps and public sidewalks that must be repaired or replaced to meet current ADA
guidelines.
• Invest in walking connections by reviewing the Tigard sidewalk infill study and recommendations
and continuing to dedicate specific funding for pedestrian and bike facility projects in the city's
Capital Improvement Plan equaling at least ten percent of the transportation CIP planned
expenditures.
• Continue to advance and develop Safe Routes to School (SRTS) plans for Tigard schools and
implement an improvement for at least one school per year including funding priorities.
• Integrate the Complete Streets Policy to update the Transportation System Plan. Consider
implementation of a Neighborhood Traffic Management Program. Implement a Citywide
Transportation Safety Action Plan and develop a scope and budget for a pedestrian crossing
improvement plan.
• Seek Regional Transportation Options funding to develop a regional trail wayfinding plan, and
improve signage along the Fanno Creek Trail.
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• Advocate for local control of speed limits in residential neighborhoods.
More information about the city's goals and initiatives can be found on the city's Finance and Information
Services web page: http://www.tigard-or.gov/city hall/finance and information services.php.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA)awarded a Certificate of Achievement for Excellence
in Financial Reporting to the City of Tigard for its Comprehensive Annual Financial Report (CAFR) for the
fiscal year ended June 30, 2019. This was the 34th consecutive year that the city has received this
esteemed award. In order to be awarded a Certificate of Achievement, the government published an
easily readable and efficiently organized CAFR. This report satisfied both GAAP and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR
continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the
GFOA to determine its eligibility for another certificate.
In addition, the city also received the GFOA's Distinguished Budget Presentation Award for its annual
budget for fiscal year 2020. This was the 32nd consecutive year that the city has received this prestigious
award. In order to qualify for the Distinguished Budget Presentation Award, the city's budget document
was judged to be proficient in several categories, including as a policy document, a financial plan, an
operations guide, and a communications device. The city has submitted its fiscal year 2021 budget
document and believes that it meets the Distinguished Budget Presentation Award's requirements.
The preparation of this report was made possible by the dedicated service of the staff of the Financial and
Information Services department. Each member of the department has our sincere appreciation for the
contributions made in the preparation of this report. Special recognition should be given to the financial
operations staff for their work in preparing this document. Special thanks should be given to the City of
Tigard Audit Committee for their dedicated service of overseeing the work performed by the independent
auditors. Credit also must be given to the Mayor and City Council for their unfailing support for
maintaining the highest standards of professionalism in the management of the City of Tigard's finances.
Respectfully submitted,
_
1.1
Kathy Nyland Toby LaFrance
Interim City Manager Director of Finance and Information Services
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Tigard
Oregon
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2019
OdfG o jw.. P- 1,1'e7.r.:-a
Executive Director/CEO
19
1
T I GARD
City of Tigard, Oregon
Citywide Organizational Chart as of June 30, 2020
City of Tigard 1
If Citizens of Tigard J)
[ , ,
Mayor& City
City Council Attorney
ll City Manager 11
I I I I I I
Central City Community Finance& 1 Library Police Public Works
Services Management Development Information Svcs.
Design& Human Community Administration Administration Administration Administration
Communications Resources Planning
Financial Circulation Support Water
City Recorder Risk Building Operations Services
Management Public Works
Reader Engineering
Municipal Economic Information Services Police
Court City Manager's Development Services Operations
Office Parks
Technical Maintenance
Fleet Utility Billing Services
Maintenance
Recreation
Contracts
Property &Purchasing
Management Stormwater
Sanitary Sewer
Street
Maintenance
Street Lights
&Signals
20
City of Tigard, Oregon
Principal Officials as of July 1, 2020
Elected Officials
Name Term Expires
Mayor Jason Snider December 31, 2022
Councilor John Goodhouse December 31, 2022
Councilor Tom Anderson December 31, 2020
Councilor Heidi Lueb December 31, 2020
Councilor Liz Newton December 31, 2022
Appointed Officials
Name Title
Marty Wine City Manager
Michael O'Brien Municipal Judge
Shelby Rihala City Attorney
Carol Krager City Recorder
All may be reached at:
13125 SW Hall Boulevard
Tigard, OR 97223
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No content appears on this page by design.
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Financial Section
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24
0
MOSSADAMS
Report of Independent Auditors
The City Council
City of Tigard, Oregon
Tigard, Oregon
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of Tigard,
Oregon (the City), as of and for the year ended June 30, 2020, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
25
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City as of June 30, 2020, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, budgetary comparison schedule for the General Fund, the
schedule of proportionate share of the net pension liability, the schedule of plan contributions, and the
schedule of other employee postemployment benefits information (collectively, the required
supplementary information) on pages 28 through 41 and 121 through 126 be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context.
We have applied certain limited procedures to the management's discussion and analysis, the
schedule of proportionate share of the net pension liability, the schedule of plan contributions, and the
schedule of other employee postemployment benefits information on pages 28 through 41 and 122
through 126 in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The budgetary schedule for the General
Fund described above on page 121 is the responsibility of management and was derived from and
relate directly to the underlying accounting and other records used to prepare the basic financial
statements. The budgetary schedule for the General Fund has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the budgetary schedule for the General
Fund is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The combining and individual nonmajor
fund financial statements, budgetary schedules, other financial schedules on pages 129 to 202 are
presented for purposes of additional analysis and are not a required part of the basic financial
statements.
26
This supplementary information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. This information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the budgetary schedules, combining and individual nonmajor fund financial statements, other
financial schedules, and the schedule of expenditures of federal awards are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The introductory and statistical sections
are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The introductory section and statistical information have not been subjected to the auditing
procedures applied in the audit of the basic financial statements, and accordingly, we do not express
an opinion or provide any assurance on it.
Report on Other Legal and Regulatory Requirements
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 3, 2020 on our consideration of the City's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and
not to provide an opinion on the effectiveness of the City's internal control over financial reporting or
on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City's internal control over financial reporting and compliance.
Other Reporting Required by Minimum Standards for Audits of Oregon Municipal
Corporations
In accordance with Minimum Standards of Audits of Oregon Municipal Corporations, we have issued
our report dated December 3, 2020 on our consideration of the City's compliance with certain
provisions of laws and regulations, including the provisions of Oregon Revised Statues as specified in
Oregon Administrative Rules. The purpose of that report is to describe the scope of our testing of
compliance and the results of that testing and not to provide an opinion on compliance.
C 4‘0/e?Zi
G(�t•G�L�
James C. Lanzarotta, Partner
for Moss Adams LLP
Portland, Oregon
December 3, 2020
27
City of Tigard, Oregon
Management's Discussion and Analysis
As management of the City of Tigard, we offer readers this narrative overview and analysis of the financial
activities of the City of Tigard for the fiscal year ended June 30, 2020. It focuses on significant financial issues,
major financial activities, and resulting changes in financial positions, as well as economic factors affecting the
city. This Management's Discussion and Analysis (MD&A) is based on currently known facts, decisions, and
conditions that existed as of the date of the independent auditor's report.
We encourage readers to consider the information presented here in conjunction with the transmittal letter
at the front of this report and the city's financial statements which follow this discussion and analysis.
Financial Highlights
• Assets and deferred outflows of resources of the city exceeded its liabilities and deferred inflows of
resources at the close at June 30, 2020 by$499,490,229 (net position). Of this amount, $32,440,129 is
restricted for transportation construction, maintenance and utility undergrounding, $12,413,195 is
restricted for park development and improvements, $752,303 is restricted for tourism, $15,659,719 is
restricted for water system construction and improvements, $8,832,297 is restricted for debt service,
$10,074,209 is restricted for building development plan review and inspection, $604,896 is restricted
for library capital improvements, $3,374,874 is restricted for urban development and improvements
and $517,837 is restricted for law enforcement equipment. $89,757,537 is unrestricted net position
may be used to meet the city's ongoing obligations to citizens and creditors and $325,063,233 is for
net investment in capital assets.
• The city's total net position had a net increase of$25,391,019 or 5.4 percent from the June 30, 2019
net position. Governmental activities net position increased by $16,067,188, or 5.5 percent. The
business-type activities net position increased by $9,323,831 or 5.2 percent. The reasons for the
increase are noted in the financial analysis section of the MD&A.
• The city's governmental funds reported combined ending fund balances of $98,118,037, an increase
of 17,727,451 or 22.1 percent from fiscal year 2019. Of the combined ending governmental fund
balances, $26,594,144 or approximately 27.1 percent is available for spending at the city's discretion
subject to council approved policies and actions.
• At the end of the fiscal year, unassigned fund balance for the General Fund was $26,823,013, up
$3,701,672 over the prior year.
• The city's total debt increased by $56,267 or less than 0.1 percent from fiscal year 2019.
Overview of the Financial Statements
In addition to this discussion and analysis,the financial section of this annual report contains the basic financial
statements, required supplementary information, and the combining statements of the nonmajor funds and
schedules demonstrating legal compliance.
The basic financial statements also include notes that explain the information in the financial statements and
provide more details. The statements are followed by the required supplementary information section that
supports the information in the financial statements.
28
City of Tigard, Oregon
Management's Discussion and Analysis
Government-wide financial statements
The government-wide financial statements are designed to provide readers with a broad overview of the city's
finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the city's assets and deferred outflows of
resources and liabilities and deferred inflows of resources, with the difference reported as net position. Over
time, increases or decreases in net position may serve as a useful indicator of whether the financial position
of the city is improving or deteriorating.
The Statement of Activities presents information showing how the city's net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in
this statement for some items that will result in cash flows in a future fiscal period. Examples of such items
include earned, but uncollected property taxes, and earned, but unused compensated absences.
Both of the government-wide financial statements distinguish functions of the city that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business-type
activities).
The governmental activities of the city include the following:
• Community services, police, library, and social services
• Public works, including parks and recreation
• Community development, current and long-range planning
• Policy and administration
The business-type activities of the city include the following:
• Sanitary sewer
• Stormwater
• Water
The government-wide financial statements can be found in the financial section of this report, immediately
following the Independent Auditor's Report.
Fund Financial Statements are designed to display compliance with finance-related legal requirements
demonstrated by the use of fund accounting. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities and objectives. The funds of the city
can be divided into the following categories: governmental funds, proprietary funds, and a fiduciary fund.
Governmental Funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of available
resources, as well as on balances of available resources at the end of the fiscal year. Such information may be
useful in evaluating a government's near-term financial capability.
29
City of Tigard, Oregon
Management's Discussion and Analysis
Because the focus of governmental funds is narrower than that of the government-wide financial statements,
it is useful to compare the information presented for governmental funds with similar information presented
for governmental activities in the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the city's near-term financing decisions. Both the governmental fund
Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balance
provide a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The city maintains 26 individual governmental funds. Information is presented separately in the governmental
fund Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances for those
funds that are considered significant (major) to the city taken as a whole. These financial statements report
two major funds: General, and General Obligation Debt Service. Data from the other 24 governmental funds
are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor
governmental funds is provided in the form of combining statements elsewhere in this report.
The city adopts an annual appropriated budget for all of its governmental funds. A budgetary comparison
statement has been provided for each fund individually to demonstrate compliance with their budgets.
The basic governmental fund financial statements can be found in the Basic Financial Statements section of
this report.
Proprietary Funds are used to account for a government's business-type activities. The city maintains two
different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to
report the same functions presented as business-type activities in the governmental-wide financial
statements. The city uses enterprise funds to account for its sanitary sewer, stormwater, and water
operations. Internal service funds are an accounting device used to accumulate and allocate costs internally
among the city's various functions. The city uses internal service funds to account for fleet and property
maintenance, risk management, design and communication, finance and accounting, public works
administration, engineering, and other management services.
The city reports all three of the enterprise funds as major funds. These funds are the Sanitary Sewer Fund,
the Stormwater Fund, (which consists of the budgetary Stormwater and the Water Quality/Quantity Funds),
and the Water Fund, (which includes the budgetary Water, Water SDC, Water CIP and Water Debt Service
Funds). However, for budgetary and legal purposes these funds are accounted for separately. Conversely, all
internal service funds are combined into a single, aggregated presentation in the proprietary fund financial
statements. Individual fund data for the internal service funds is provided as other supplementary
information.
The city also adopts an annual appropriated budget for all proprietary funds. To demonstrate compliance
with the budget, budgetary comparison statements have been provided for the enterprise funds as other
supplementary information in the Enterprise Funds section of this report. Budgetary comparisons for the
internal service funds are provided in the Internal Service Funds section of this report.
The proprietary fund financial statements can be found in the Basic Financial Statements section of this report.
30
City of Tigard, Oregon
Management's Discussion and Analysis
Fiduciary Funds are used to account for assets held in a trustee or agency capacity for others and therefore
cannot be used to support the government's own programs. The city has a pension trust fund that accounts
for employee defined contribution plans. The accounting used for the fiduciary fund is much like that used
for the proprietary funds. No budget is adopted for the fiduciary fund in accordance with Oregon local budget
law. The fiduciary fund financial statements can be found in the Fiduciary Funds section of this report.
Notes to the Basic Financial Statements provide additional information that is essential to a full understanding
of the data provided in the government-wide and fund financial statements. The notes to the financial
statements can be found in the Notes to Basic Financial Statements section of this report.
Required Supplementary Information includes Schedule of Revenues and Expenditures— Budget and Actual
for the General Fund. The Budget to GAAP reconciliation for the General Fund is also included. This section
also presents the schedule of the city's proportionate share of the liability/(asset) and the schedule of
contributions for net pensions and other post-employment benefits (OPEB). Required supplementary
information can be found immediately following the notes to the financial statements of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds and business-
type funds are presented immediately following the required supplementary information.
Government-wide Financial Analysis—Statement of Net Position
Net position: As noted earlier, net position may serve over time as a useful indicator of the city's financial
position. In the case of the city, assets and deferred outflows of resources exceeded liabilities and deferred
inflows of resources by $499,490,229 at June 30, 2020.
The largest portion of the city's net position, approximately 65.0 percent, is its investment in capital assets
(e.g., land, construction in progress, buildings, roads, sewers, stormwater facilities, etc.), net of accumulated
depreciation and any related debt used to acquire those assets that is still outstanding. The city uses these
capital assets to provide services to citizens; consequently,these assets are not available for future spending.
Although the city's investment in capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since capital assets themselves
cannot be used to liquidate these liabilities.
The city's restricted net position in the amount of $84,669,459 or approximately 17.0 percent represents
resources that are subject to external restrictions on how they may be used. By definition, the city cannot
remove these restrictions as they are imposed by parties outside of the city. The remaining balance is
unrestricted net position in the amount of $89,757,537 or approximately 18.0 percent of total net position.
At the end of the current year, the city is able to report positive balances in all categories of net position for
governmental and business-type activities.
Total net position increased by $25,391,019 or 5.4 percent during the current fiscal year. Total assets for
governmental activities increased by approximately$22.6 million, or approximately 4.2 percent. Noteworthy
changes included an increase in cash and investments of approximately $20 million or 22.4 percent. This
increase is due to development activity in the city resulting in higher fee collection in the Transportation
31
City of Tigard, Oregon
Management's Discussion and Analysis
Development and Transportation SDC, and the sale of bonds for the Tigard Town Center Development Agency
(TCDA).
Governmental activities liabilities increased by approximately $6.5 million or 17.4 percent. Noteworthy
changes include a bond sale of approximately$5.9 million. See the notes to the basic financial statements for
more information.
Business-type activities total assets increased by approximately$7.1 million or 2.6 percent over the prior year.
Cash and investments increased by approximately $11.3 million or 16.7 percent over the prior year. This
increase is mainly due to increased interest earnings, and higher utility rates. Capital assets decreased by$4.1
million or 1.8 percent. This decrease is due to depreciation expense being greater than the reinvestment in
capital assets for the fiscal year ended June 30,2020.
Total long-term debt for business-type activities decreased by approximately $2.2 million or 1.6 percent,
which primarily represents payment of principal and amortization of the bond premium on the water revenue
bond issues. The water revenue bonds were issued in fiscal years 2012 and 2015 for the Lake Oswego/Tigard
Water Partnership.
City of Tigard—Summary of Net Position
Governmental Business-Type
Total
Activities Activities
2020 2019 2020 2019 2020 2019
Current and other assets $115,791,910 $ 95,799,843 $ 86,546,559 $ 75,303,377 $202,338,469 $171,103,220
Capital assets 234,126,963 231,549,294 238,622,495 242,740,818 472,749,458 474,290,112
Total Assets 349,918,873 327,349,137 325,169,054 318,044,195 675,087,927 645,393,332
Deferred outflows 4,111,239 4,227,691 9,047 9,191 4,120,286 4,236,882
Current and other liabilities 11,587,326 11,164,421 8,073,236 7,169,015 19,660,562 18,333,436
Long-term liabilities outstanding 32,102,049 26,005,313 126,852,570 129,950,948 158,954,619 155,956,261
Total Liabilities 43,689,375 37,169,734 134,925,806 137,119,963 178,615,181 174,289,697
Deferred inflows 1,076,868 1,210,413 25,935 30,893 1,102,803 1,241,306
Net investment in capital assets 216,281,021 216,080,286 108,782,212 110,542,303 325,063,233 326,622,589
Restricted 61,695,111 40,908,235 22,974,348 20,044,161 84,669,459 60,952,396
Unrestricted 31,287,737 36,208,160 58,469,800 50,316,066 89,757,537 86,524,226
Total Net Position $309,263,869 $293,196,681 $190,226,360 $180,902,530 $499,490,229 $474,099,211
32
City of Tigard, Oregon
Management's Discussion and Analysis
City of Tigard —Summary of Changes in Net Position
Governmental Business-Type
Total
Activities Activities
2020 2019 2020 2019 2020 2019
Revenues
Program revenues:
Charges for services $ 11,103,876 $ 13,203,823 $ 30,292,118 $ 30,952,487 $ 41,395,994 $ 44,156,310
Operating grants and contributions 9,625,070 9,594,291 - - 9,625,070 9,594,291
Capital grants and contributions 8,542,864 12,268,270 3,139,146 3,285,377 11,682,010 15,553,647
General revenues:
Property taxes 20,325,728 19,101,543 - - 20,325,728 19,101,543
Franchise fees 6,360,563 6,211,736 - - 6,360,563 6,211,736
Unrestricted intergovernmental revenues 2,484,051 2,522,428 - - 2,484,051 2,522,428
Interest 2,520,783 2,416,827 1,770,933 1,606,834 4,291,716 4,023,661
Miscellaneous 502,164 453,435 120,392 652,421 622,556 1,105,856
Total revenues 61,465,099 65,772,353 35,322,589 36,497,119 96,787,688 102,269,472
Expenses
Community services 25,961,675 23,370,174 - - 25,961,675 23,370,174
Public works 9,578,442 12,129,476 - - 9,578,442 12,129,476
Community development 5,817,188 5,146,891 - - 5,817,188 5,146,891
Policy and administration 3,383,319 3,688,137 - - 3,383,319 3,688,137
Interest on long-term debt 760,211 771,834 - - 760,211 771,834
Sewer - - 3,044,154 3,128,483 3,044,154 3,128,483
Stormwater - - 3,433,481 3,261,312 3,433,481 3,261,312
Water - - 19,418,199 17,223,333 19,418,199 17,223,333
Total expenses 45,500,835 45,106,512 25,895,834 23,613,128 71,396,669 68,719,640
Revenues over expenses 15,964,264 20,665,841 9,426,755 12,883,991 25,391,019 33,549,832
Transfers in(out) 102,924 460,325 (102,924) (460,325) - -
Changes in net position 16,067,188 21,126,166 9,323,831 12,423,666 25,391,019 33,549,832
Beginning net position 293,196,681 272,070,515 180,902,529 168,478,863 474,099,210 440,549,378
Ending net position $309,263,869 $293,196,681 $190,226,360 $180,902,529 $499,490,229 $474,099,210
33
City of Tigard, Oregon
Management's Discussion and Analysis
Expenses and Program Revenues—Governmental activities—June 30, 2020
$25,000,000
$20,000,000 -
$15,000,000 -
$10,000,000 -
ill
$5,000,000 ■■ ExpensesRevenues
$0
sec J\ces C�°�°\`s e\o'P�er� \s�Cat`°r e<�\debt
vr``y Qua dei d�`�r 4
G°�� ur‘ty and a \°
G° � Q°C`°y \rte:ces
Governmental Activities
Governmental activities increased the city's net position by $16,067,188. This increase is less than the
approximate $21.1 million increase in net position from governmental activities experienced in fiscal year
2019. While most revenues, including property taxes, interest, and franchise fees experienced increases
during fiscal year 2020, the decrease comes from an approximate $3.7 million less capital grants and
contributions and $2.1 million less in charges for services. Noteworthy reasons for the change from the prior
year are as follows:
• Property taxes constitute approximately 33.1 percent of total governmental revenues and continues
to be a major source of revenue for the funding of city programs. Property tax revenues are up by
approximately $1.1 million or 5.5 percent over 2019. Oregon has a "rate-based" system in which
property taxes are expressed in a dollar amount per thousand dollars of assessed value. The City of
Tigard's permanent tax rate is $2.5131 per thousand dollars of assessed value. The money raised by
this levy is available for general purposes.
The permanent rate is multiplied by the assessed value each year to arrive at the tax authority for that
year. Assessed value growth is limited to a maximum 3 percent per year, plus a pro-rated share of new
construction and annexations. Assessed value cannot exceed real market value.
General Obligation (GO) debt service levies are calculated to produce enough tax revenues that (when
combined with other resources such as interest earnings and fund balance) will be enough to pay debt
service due on these voter-approved bonds. On November 2, 2010, voters approved a bond measure
in the amount of$17.0 million for acquisition and development of park land. These bonds were sold
on February 3, 2011 to Wells Fargo Bank, National Association. Also on that date, the city refunded
$9.0 million of outstanding general obligation bonds that were approved on May 21, 2002, by voters
to build a new library. On April 28, 2020 the city issued more than $5.9 million in general obligation
34
City of Tigard, Oregon
Management's Discussion and Analysis
refunding bonds to defease part of the park bonds.This refunding reduced total debt service payments
by more than $1.7 million over five years resulting in an economic gain of more than$1.2 million.Taxes
collected through the tax levy repay the bonded debt.
• Capital grants and contributions experienced an approximate $3.7 million decrease from fiscal year
2019. This decrease is due to a reduction in new construction and activities generating system
development charges.
• Overall expenses for governmental activities of $45,500,835 increased from the prior fiscal year by
approximately $394,000. This increase was due to an escalation in community development and
community services activities.
Revenues by Source—Governmental Activities-June 30, 2020
Taxes
Capital grants and 37%
contributions
19%
Operating grants Interest
and contributions 4%
16%
Franchise fees
Charges for services 10%
18% M i sc
1%
Business-type Activities
Business-type activities increased the city's net position by $9,323,831. The primary reasons for the current
year's increases are:
• Charges for services represent approximately 85.8 percent of total business-type revenues and are
composed of fees that are charged to all users for services provided such as water, sanitary sewer, and
stormwater. The sanitary and stormwater fees are established by Clean Water Services (CWS) and are
set by the agency each year. The city council, through an intergovernmental agreement with other
water system participants, sets the water rates.Total charges for services decreased by approximately
$660,000 or 2.1 percent over fiscal year 2019, with the largest decrease in water revenues.
• Expenses for water operations increased approximately $2.3 million or 19.5 percent from the prior
fiscal year. The increase is primarily due to an increase in depreciation expense on water system assets.
35
City of Tigard, Oregon
Management's Discussion and Analysis
Expenses and Program Revenues— Business-type Activities—June 30, 2020
$20,000,000 -
$17,500,000 -
$15,000,000 -
$12,500,000 -
$10,000,000 - ■ Revenues
$7,500,000 - • Expenses
$5,000,000 -
$2,500,000 - MO 11 ,,,,,,
$0
Se Qt Isatet \1,Ptec
San�at�4 9-')
Financial Analysis of the City's Funds
As noted earlier, the city uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental Funds
The focus of the city's governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the city's financing requirements. In
particular, unassigned fund balance may serve as a useful measure of the city's net resources available for
spending at the end of the fiscal year.
As of the end of the fiscal year 2020, the city's governmental funds reported combined ending fund balances
of $98,118,037 an increase of $17,727,451 over the prior year. Approximately 30.4 percent or $29,851,000
of this total amount constitutes assigned and unassigned fund balances, which is available for spending at the
government's discretion.The restricted fund balance is$63,533,298 or 64.8 percent of the total fund balance.
Most of the restricted fund balance is dedicated for park acquisition and development, building inspections,
or for street maintenance and improvements. Other restricted resources include library improvements, Police
services, urban development and improvements and future debt service. The remainder of fund balance is
either committed for resources constrained on use by the city council via a city ordinance or a council
resolution or is non-spendable to indicate that it is not available for discretionary spending, such as prepaids.
General Fund
The General Fund is the chief operating fund of the city. At the end of the fiscal year 2020, the unassigned
fund balance was $26,823,013 or approximately 95.9 percent of the total fund balance of$27,981,597. As a
measure of the General Fund's liquidity, it may be useful to compare fund balance to total fund expenditures.
Unassigned fund balance represents 96.6 percent of total General Fund expenditures.
36
City of Tigard, Oregon
Management's Discussion and Analysis
The fund balance of the General Fund increased by $3,795,897 or 15.7 percent. The increase is primarily
attributable to the reduction in General Fund support for capital projects.
General Obligation Debt Service Fund
This fund accounts for payment of general obligation bond principal and interest. Revenues are derived from
property taxes and interest earnings. At the end of fiscal year 2020, the fund balance was $1,948,178, an
increase of $437,209 from the prior year. The increase was due to the issuance of more than $5.9 million in
general obligation refunding bonds to defeasance part of the park bonds.
Proprietary Funds
The city's proprietary funds include the Sanitary Sewer, Stormwater, Water, and Internal Services Funds.
The unrestricted net position of the business-type activities at year-end amounted to $25,061,892 with
individual fund unrestricted net position at:
• Sanitary Sewer $7,754,177
• Stormwater $9,604,864
• Water Funds $7,702,851
The factors concerning the finances of these funds have already been addressed in the discussion of the city's
business-type activities.
General Fund Budgetary Highlights
The city council approved three supplementary budget amendments to the adopted General Fund budget.
Total final adopted budgeted expenditures increased by $852,424 from the original budgeted numbers.
Budgeted General Fund contingency was decreased by $507,536 or 31.0 percent. Following are noteworthy
changes from the original budget to the final adopted budget in the General Fund:
• Community Services - Budget appropriation increases totaled $607,249, the majority of which was to
fund programs to supply aid to business and housing assistance.
• Community Development — Budget appropriation increases totaled $222,740, the majority of which
was for various capital projects.
• Policy and Administration—Budget appropriation increases totaled $22,435,the majority of which was
The contingency transactions account for increase in budgeted expenditures not related to increased
revenues.There was an increase to ending General Fund budgetary fund balance of$5,500 as a result of these
budget amendments. Noteworthy variances from the final adopted budget to actual revenues in the General
Fund are as follows:
• Interest earnings — variance with budget in the amount of $265,567 due to an increase in the Local
Government Investment Pool interest rates and a growing balance.
• Fines and forfeitures —variance with budget of $(1,120,027) due to a delay in collection of fines and
forfeitures related to COVID.
• Franchise fees — variance with budget of $110,962 due to a contractor ensuring franchise fees were
collected from all applicable companies.
37
City of Tigard, Oregon
Management's Discussion and Analysis
• Taxes — variance with budget of $(171,774) due mainly to a settlement of the Comcast property tax
lawsuit in the prior year.
Capital Asset and Debt Administration
Capital Assets
Governmental Activities
The city's investment in capital assets for its governmental activities as of June 30, 2020, amounts to
$234,126,963 (net of accumulated depreciation). This investment in capital assets primarily includes land,
right-of-ways, buildings and improvements, machinery and equipment, office equipment and infrastructure.
The infrastructure includes roads, curbs and sidewalks, signage, streetlights, and right-of-ways. The total
increase in the city's investment in governmental activities capital assets was $2,577,669 or approximately 1.1
percent over the prior year. The city recorded approximately $195,000 in developer contributions for street
and transportation infrastructure due to the growing subdivisions within the city. Other governmental asset
additions include street and transportation projects and park development as resources from the parks bonds
issued in fiscal year 2011 continues to be spent. Expenditures on capital assets were higher than overall
depreciation expense, leading to the increase in net capital assets.
Business-type Activities
The city's investment in capital assets for its business-type activities as of June 30, 2020, amounts to
$238,622,495 (net of accumulated depreciation). In addition to machinery, equipment and vehicles, the
capital assets include the sanitary sewer collection system, stormwater, and water systems. Total decrease in
the city's investment in business-type activities capital assets was $4,118,323 or 1.7 percent. This decrease is
due to expenditures on capital assets being lower than the overall depreciation expense, leading to a decrease
in net capital assets.
Capital Assets, net of depreciation
Governmental Business-Type Total
Activities Activities
2020 2019 2020 2019 2020 2019
Land $ 26,380,089 $ 26,380,089 $ 11,975,910 $ 11,975,910 $ 38,355,999 $ 38,355,999
Construction in progress 8,433,979 6,140,084 2,998,627 1,689,824 11,432,606 7,829,908
Buildings and building improvements 12,588,769 13,224,286 72,936,629 74,834,822 85,525,398 88,059,108
Land improvements 9,615,453 7,604,041 7,505,761 7,505,761 17,121,214 15,109,802
Sewer system - - 17,905,816 18,651,593 17,905,816 18,651,593
Stormwater system - - 12,481,961 12,374,258 12,481,961 12,374,258
Water system - - 110,349,547 113,087,699 110,349,547 113,087,699
Machinery and equipment 237,513 279,540 1,861,885 2,046,019 2,099,398 2,325,559
Autos and trucks 1,307,557 1,225,357 606,359 574,932 1,913,916 1,800,289
Office equipment 1,748,428 2,092,324 - - 1,748,428 2,092,324
Infrastructure 173,815,175 174,603,573 - - 173,815,175 174,603,573
Total Capital Assets $ 234,126,963 $ 231,549,294 $ 238,622,495 $ 242,740,818 $ 472,749,458 $ 474,290,112
38
City of Tigard, Oregon
Management's Discussion and Analysis
The following chart indicates the city's capital assets as of June 30, 2020. Additional information on the city's
capital assets can be found in Note 5. Capital Assets in the notes to the basic financial statements of this
report.
Total Capital Assets
Land Construction in progress
8.1% 2.4%
Buildings and building
Infrastructure improvements
36.8% 18.1%
Office
equipment
0.4%
Land improvements
Autos and trucks 3.6%
0.4%
Sewer system
Storm drainage system
3.8%
Machinery and_ S Y
equipment Water system 2.6%
0.4% 23.3%
Debt Outstanding
As of year-end, the city had total debt outstanding of $149,710,812. Of this amount $19,870,531 is general
obligation and full faith and credit bonds; $128,254,644 represents water revenue bonds; $1,585,637
represents a note payable. Both general obligation bonds and full faith credit bonds are direct obligations
pledging the full faith and credit of the city.
Total debt increased by$56,267 or approximately less than 0.1 percent during the current fiscal year. For the
business-type activity, in fiscal year 2015 the city issued water revenue bonds with a par value of$30,810,000.
Proceeds from these bonds are used to fund water capital projects, primarily the costs associated with the
Tigard/Lake Oswego Water Partnership. The city began making principal payments on these bonds during
fiscal year 2017. The city also has an outstanding note payable that is part of a grant and low interest loan
package provided to the city to make improvements to one of the city's water reservoirs. These funds were
part of the American Recovery and Reinvestment Act (ARRA). The outstanding balance on this debt is
$1,585,637 at year-end.
During fiscal year 2015, in anticipation of issuing water revenue bonds,the city received a revenue bond rating
of Al from Moody's Investors Service and AA-from Standard & Poor's Ratings Services. During fiscal year 2017
Moody's Investor Services reviewed the city's water enterprise activities and upgraded the city's rating from
Al to Aa3.
39
City of Tigard, Oregon
Management's Discussion and Analysis
The State of Oregon statutes limit the amount of general obligation debt that cities can issue to 3.0 percent
of the real market value of all taxable property within the city limits. The current debt limitation for the city
for general obligation debt is $322 million, which is significantly in excess of the city's outstanding general
obligation debt.
The following chart indicates the city's long-term liabilities as of June 30, 2020. Additional information on the
city's debt can be found in Note 6. Long-Term Debt and Other Debt in the notes to the basic financial
statements of this report.
Governmental Activities Business-Type Activities Total
2020 2019 2020 2019 2020 2019
General obligation $ 19,870,531 $ 16,094,594 $ - $ - $ 19,870,531 $ 16,094,594
Local improvement - 28,419 - - - 28,419
Bank loan payable - 780,000 - - - 780,000
Note payable - - 1,585,637 1,695,942 1,585,637 1,695,942
Revenue bonds - - 128,254,644 131,055,590 128,254,644 131,055,590
Total Outstanding Debt $ 19,870,531 $ 16,903,013 $ 129,840,281 $ 132,751,532 $ 149,710,812 $ 149,654,545
Total Outstanding Long-Term Debt
General obligation
13.3%
Note payable
Revenue bonds 1.1%
87.6%
Economic Factors and Budget Information for Next Year
The following economic factors currently affect the city and were considered in developing the city's budget
for fiscal year 2021:
40
City of Tigard, Oregon
Management's Discussion and Analysis
• The unemployment rate for the City of Tigard was 10.8 percent at the end of the fiscal year, June 30,
2020. This is less than the State of Oregon rate of 11.6 and the national average of 11.1 percent for
June 2020.
• Property tax revenues are the single largest sources of revenue in the General Fund and it accounts for
48 percent of ongoing revenues. Tigard's low permanent property tax levy rate ($2.51/1,000 AV),
which is the second lowest of any city within Washington County with a population over 50,000, is
limited and therefore, General Fund growth is particularly sensitive to taxable growth. Property tax
revenues are forecasted to increase by 3.5 percent based on prior year's modest growth in assessed
values and anticipated development.
• The River Terrace subdivision will provide an increase in revenue for the city, at an estimated 0.5
percent in annual revenue growth. This subdivision will add approximately 150-200 homes a year for
the next five years, thus creating additional demands on city services.
• The City of Tigard issues licenses for businesses operating within the city limits. As of June 30, 2020,
there were 2,737 businesses licensed in the city as compared to 2,713 a year ago. Business license
revenues are highly sensitive to economic conditions. With the planned economic development in
urban renewal, the city projects an increase in business licenses, but any increase will be gradual over
time.
• Business-type activities are funded through water, sanitary sewer and stormwater management rates
and system development charges. The city has the ability to increase rates to keep pace with growing
costs as well as increasing demands on the system infrastructure. Due to COVID impacts on the
community, Tigard delayed all utility rate increases from the beginning of the fiscal year to the middle,
resulting in a six-month delay in revenue increases. Clean Water Services sets rates for sanitary sewer
and storm water management (SWM).
• While COVID-19 has affected the amount of revenues projected to be received in the upcoming fiscal
year it will not be significant enough to cause the city to reduce the budget or level of services to be
provided.
All of these factors were considered in preparing the city's budget for fiscal year 2020-2021. The current
forecast shows that in the short-term the city's financial condition is stable in most funds. The fiscal year 2021
budget continued addressing a projected General Fund deficit that had been forecasted to occur earlier than
what is now projected. City budgets are developed to address the continuing challenge of flat revenues and
increasing expenditure rates.
Requests for Information
This financial report is designed to provide a general overview of the City of Tigard's finances for all those with
an interest in the city's finances. Questions concerning any of the information provided in the report or
requests for additional financial information should be addressed to:
City of Tigard
Financial and Information Services Director
13125 SW Hall Blvd.
Tigard, Oregon 97223
41
No content appears on this page by design.
42
Basic Financial Section
43
44
CITY OF TIGARD,OREGON
STATEMENT OF NET POSITION
June 30,2020
Governmental Business-Type
ASSETS Activities Activities
Total
Cash and investments $ 42,732,126 $ 54,188,443 $ 96,920,569
Accounts receivable,net 5,216,224 5,826,224 11,042,448
Property taxes receivable 332,405 - 332,405
Assessment liens receivable 214,276 - 214,276
Prepaids 541,213 - 541,213
Inventory 5,699 268,883 274,582
Investment in joint venture - 1,060,472 1,060,472
Property held for resale - 445,042 445,042
Restricted cash and investments 66,632,599 24,757,495 91,390,094
Other post-employment benefit asset 117,368 - 117,368
Capital assets:
Land and construction in process 34,814,068 14,974,537 49,788,605
Other capital assets(net of accumulated depreciation) 199,312,895 223,647,958 422,960,853
Total assets 349,918,873 325,169,054 675,087,927
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension 4,013,561 - 4,013,561
Deferred outflows related to OPEB 97,678 9,047 106,725
Total deferred outflows 4,111,239 9,047 4,120,286
LIABILITIES
Accounts payable and accrued liabilities 3,790,462 2,430,865 6,221,327
Deposits 3,513,297 12,725 3,526,022
Due to other entities/agencies 532,766 - 532,766
Unearned revenue 66,500 - 66,500
Accrued interest payable 63,380 2,504,931 2,568,311
Due within one year:
Notes payable - 113,614 113,614
Bonds payable 2,213,443 2,886,161 5,099,604
Accrued compensated absences 1,407,478 124,940 1,532,418
Due in more than one year:
Notes payable - 1,472,023 1,472,023
Internal balances 102,320 (102,320) -
Bonds payable 17,657,088 125,368,485 143,025,573
Accrued compensated absences 58,645 4,237 62,882
Other post-employment benefit liability 1,306,546 110,145 1,416,691
Net pension liability 12,977,450 - 12,977,450
Total liabilities 43,689,375 134,925,806 178,615,181
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension 796,859 - 796,859
Deferred inflows related to OPEB 280,009 25,935 305,944
Total deferred inflows 1,076,868 25,935 1,102,803
NET POSITION
Net investment in capital assets 216,281,021 108,782,212 325,063,233
Restricted for:
Transportation construction,maintenance,and utility undergrounding 32,440,129 - 32,440,129
Park development and improvements 12,413,195 - 12,413,195
Tourism 752,303 - 752,303
Water system construction and improvements - 15,659,719 15,659,719
Debt service 1,517,668 7,314,629 8,832,297
Building development plan review and inspection 10,074,209 - 10,074,209
Library capital improvements 604,896 - 604,896
Urban development and improvements 3,374,874 - 3,374,874
Law enforcement equipment 517,837 - 517,837
Unrestricted 31,287,737 58,469,800 89,757,537
Total net position $ 309,263,869 $ 190,226,360 $ 499,490,229
The accompanying notes are an integral part of the basic financial statements.
45
CITY OF TIGARD,OREGON
STATEMENT OF ACTIVITIES
for the year ended June 30,2020
Program Revenues
Charges Operating
for Grants and
Functions/Programs Expenses Services Contributions
Governmental activities:
Community services $ 25,961,675 $ 1,500,919 $ 4,974,413
Public works 9,578,442 5,220,273 4,650,657
Community development 5,817,188 4,292,102 -
Policy and administration 3,383,319 90,582 -
Interest on long-term debt 760,211 - -
Total governmental activities 45,500,835 11,103,876 9,625,070
Business-type activities:
Sewer 3,044,154 3,666,422 -
Stormwater 3,433,481 4,017,864 -
Water 19,418,199 22,607,832 -
Total business-type activities 25,895,834 30,292,118 -
Total $ 71,396,669 $ 41,395,994 $ 9,625,070
The accompanying notes are an integral part of the basic financial statements.
46
Net(Expense)Revenue and Changes in Net Position-
Primary Government
Capital
Grants and Governmental Business-type
Contributions Activities Activities Total
$ - $ (19,486,343) $ - $ (19,486,343)
8,265,013 8,557,501 - 8,557,501
277,851 (1,247,235) - (1,247,235)
-
(3,292,737) - (3,292,737)
-
(760,211) - (760,211)
8,542,864 (16,229,025) - (16,229,025)
119,288 - 741,556 741,556
152,616 - 736,999 736,999
2,867,242 - 6,056,875 6,056,875
3,139,146 - 7,535,430 7,535,430
$ 11,682,010 (16,229,025) 7,535,430 (8,693,595)
General Revenues:
Property taxes,levied for general
purposes 18,014,249 - 18,014,249
Property taxes,levied for debt service 2,311,479 - 2,311,479
Franchise fees 6,360,563 - 6,360,563
Unrestricted intergovernmental
revenues 2,484,051 - 2,484,051
Interest earnings 2,520,783 1,770,933 4,291,716
Miscellaneous 502,164 120,392 622,556
Total general revenues 32,193,289 1,891,325 34,084,614
Transfers between Governmental
and Business-type activites 102,924 (102,924) -
Change in net position 16,067,188 9,323,831 25,391,019
Net position,beginning 293,196,681 180,902,529 474,099,210
Net position,ending $ 309,263,869 $ 190,226,360 $ 499,490,229
47
CITY OF TIGARD,OREGON
GOVERNMENTAL FUNDS-BALANCE SHEET
June 30,2020
General Other Total
General Obligation Debt Governmental Governmental
Fund Service Fund Funds Funds
ASSETS
Cash and cash equivalents $ 27,681,289 $ - $ 5,772,122 $ 33,453,411
Accounts receivable 3,635,719 - 1,514,795 5,150,514
Property taxes receivable 288,721 40,665 3,019 332,405
Assessment liens receivable - - 214,276 214,276
Interest receivable 30,832 6,222 1,518 38,572
Advances to other funds 883,981 - - 883,981
Prepaids 274,603 - 18,080 292,683
Restricted cash and cash equivalents - 1,934,344 64,698,255 66,632,599
Total assets $ 32,795,145 $ 1,981,231 $ 72,222,065 $ 106,998,441
LIABILITIES
Accounts payable and accrued liabilities $ 1,622,906 $ - $ 1,439,417 $ 3,062,323
Deposits 1,418,647 - 1,057,431 2,476,078
Due to other entities/agencies 473,543 - 59,223 532,766
Advances from other funds - - 986,301 986,301
Unearned revenue - - 50,000 50,000
Total liabilities 3,515,096 - 3,592,372 7,107,468
DEFERRED INFLOWS OF RESOURCES
Resources not yet available:
Property taxes 648,692 33,053 11,600 693,345
Municipal court receivable 525,452 - - 525,452
Transportation refund credits - - 35,857 35,857
Grant receivable - - 70,873 70,873
Special assessment liens - - 323,101 323,101
Franchise fees 124,308 - - 124,308
Total deferred inflows of resources 1,298,452 33,053 441,431 1,772,936
FUND BALANCES
Nonspendable:
Advances to other funds 883,981 - - 883,981
Prepaids 274,603 - 18,080 292,683
Restricted for:
Street maintenance and improvements - - 31,883,871 31,883,871
Tourism - - 752,303 752,303
Affordable housing - - 114,949 114,949
Debt service - 1,948,178 1,292,728 3,240,906
Park development and improvements - - 12,413,195 12,413,195
Underground utilities - - 556,258 556,258
Building inspection - - 10,074,209 10,074,209
Police services - - 517,837 517,837
Library improvements - - 604,896 604,896
Urban development and improvements - - 3,374,874 3,374,874
Committed for:
Street maintenance and improvements - - 2,528,203 2,528,203
Urban forestry - - 1,028,448 1,028,448
Assigned to:
City facilities - - 934,395 934,395
Park and recreation - - 2,322,885 2,322,885
Unassigned 26,823,013 - (228,869) 26,594,144
Total fund balances 27,981,597 1,948,178 68,188,262 98,118,037
Total liabilities,deferred inflows of
resources and fund balances $ 32,795,145 $ 1,981,231 $ 72,222,065 $ 106,998,441
The accompanying notes are an integral part of the basic financial statements.
48
CITY OF TIGARD,OREGON
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
June 30,2020
Fund Balances-Governmental Funds $ 98,118,037
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore
are not reported in the funds.
Governmental capital assets $ 348,267,198
Less accumulated depreciation (114,140,235) 234,126,963
Pension assets or liabilities,with related deferred outflows of resources and deferred inflows
of resources,are not reported in governmental funds, but are reported on the statement of
net position. The amounts included in governmental activities on the statement of net position:
Net pension liability (12,977,450)
Deferred outflows of resources related to pensions and OPEB 4,069,711
Deferred inflows of resources related to pensions and OPEB (957,821) (9,865,560)
Other long-term assets are not available to pay for current-period expenditures and therefore are
deferred in the governmental funds and recognized as revenue in the Statement of Activities.
Property taxes earned but not available 693,345
Franchise fees earned but not available 124,308
Municipal court receivable 525,452
Grant receivable 70,873
Transportation refund credits 35,857
Assessment liens 323,101 1,772,936
Internal service funds are used by management to charge the cost of administrative functions as
well as fleet and property management to individual funds.The assets and liabilities of the
internal service funds are included in governmental activities in the statement of activities. 6,655,527
Accrued compensated absences are not due and payable in the current period and therefore are not (926,530)
reported in the funds.
Long-term liabilities,including bonds payable are not due and payable in the current period and
therefore,are not reported in the governmental funds.
Bonds payable (19,870,531)
Accrued interest payable,not due and payable in the current period (63,380)
Net other post-employment benefit(OPEB)asset 117,368
Net other post-employment benefit(OPEB) liability (800,961)
Net Position of Governmental Activities $ 309,263,869
The accompanying notes are an integral part of the basic financial statements.
49
CITY OF TIGARD,OREGON
GOVERNMENTAL FUNDS-
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE
for the year ended June 30,2020
General Other Total
General Obligation Debt Governmental Governmental
Fund Service Fund Funds Funds
REVENUES
Taxes $ 16,949,642 $ 2,311,480 $ 7,153,229 $ 26,414,351
Franchise fees 6,365,589 - - 6,365,589
Special assessments - - 46,554 46,554
Licenses and permits 1,234,666 - 2,815,902 4,050,568
Intergovernmental revenues 7,334,814 - 2,029,702 9,364,516
Charges for services 302,894 - 5,067,096 5,369,990
System development charges - - 5,606,246 5,606,246
Fines and forfeitures 534,471 - 293,973 828,444
Rental revenues - - 54,202 54,202
Interest earnings 766,467 45,788 1,503,686 2,315,941
Miscellaneous revenues 182,123 - 289,883 472,006
Total revenues 33,670,666 2,357,268 24,860,473 60,888,407
EXPENDITURES
Current operating:
Community services 23,595,107 - 113,005 23,708,112
Public works - - 6,153,581 6,153,581
Community development 3,323,661 - 2,551,613 5,875,274
Policy and administration 843,032 - - 843,032
Debt service:
Principal - 7,269,234 1,633,156 8,902,390
Interest - 631,825 177,178 809,003
Capital outlay - - 8,121,335 8,121,335
Total expenditures 27,761,800 7,901,059 18,749,868 54,412,727
Excess/(deficiency)of revenues
over expenditures 5,908,866 (5,543,791) 6,110,605 6,475,680
OTHER FINANCING SOURCES(USES)
Transfer in 258,181 - 6,127,514 6,385,695
Transfer out (2,371,150) - (4,672,774) (7,043,924)
Debt proceeds - 5,981,000 5,929,000 11,910,000
Total other financing sources(uses) (2,112,969) 5,981,000 7,383,740 11,251,771
Net change in fund balances 3,795,897 437,209 13,494,345 17,727,451
Fund balances-beginning of the year 24,185,700 1,510,969 54,693,917 80,390,586
Fund balances-end of year $ 27,981,597 $ 1,948,178 $ 68,188,262 $ 98,118,037
The accompanying notes are an integral part of the basic financial statements.
50
CITY OF TIGARD,OREGON
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND
BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
for the year ended June 30,2020
Net change in fund balances-Governmental Funds $ 17,727,451
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities
the cost of those assets is depreciated over their estimated useful lives
Expenditures for capital assets 8,064,935
Current year depreciation expense (5,622,035)
Contributed capital 194,698
Loss on disposal of capital assets (59,929) 2,577,669
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds
Change in deferred inflows of resources-property taxes 17,111
Change in franchise fees (5,026)
Change in municipal court receivable 29,561
Change in grants receivable (425,804)
Change in assessment liens (46,554) (430,712)
Long-term debt proceeds provide current financial resources to governmental funds,
but issuing debt increases long-term liabilities in the Statement of Net Position.
Repayment of long-term debt is reported as an expenditure in the governmental
funds, but a reduction of long-term liabilities in the Statement of Net Position.
Bond proceeds (11,910,000)
Principal payments 8,843,419
Amortization of premium on long-term debt 99,063 (2,967,518)
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds:
Change in accrued interest payable 8,700
Change in compensated absences (95,415)
Pension expense (1,906,816)
OPEB expense 54,007 (1,939,524)
Internal service funds are used by management to charge the cost of administrative functions
as well as fleet and property management to individual funds. The net revenue of internal
service funds is reported with governmental activities.
Change in Net Position- Internal Service Funds 1,099,822
Change in Net Position of Governmental Activities $ 16,067,188
The accompanying notes are an integral part of the basic financial statements.
51
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
June 30,2020
Business-type Activities- Governmental
Enterprise Funds Activities-
Sanitary Internal
Sewer Stormwater Water Totals Service Funds
ASSETS
Current assets:
Cash and cash equivalents $ 7,335,506 $ 9,033,518 $ 37,819,419 $ 54,188,443 $ 9,278,715
Accounts receivable 2,008,532 631,686 3,186,006 5,826,224 27,138
Prepaids - - - - 248,530
Property held for resale 185,021 260,021 - 445,042 -
Inventory 989 989 266,905 268,883 5,699
Total current assets 9,530,048 9,926,214 41,272,330 60,728,592 9,560,082
Noncurrent assets:
Restricted cash and cash equivalents - - 24,757,495 24,757,495 -
Advances to other funds 102,320 - - 102,320 -
Investment in joint venture - - 1,060,472 1,060,472 -
Capital assets:
Land and construction in process 723,311 1,211,369 13,039,857 14,974,537 -
Other capital assets(net of
accumulated depreciation) 18,379,934 13,324,283 191,943,741 223,647,958 -
Total noncurrent assets 19,205,565 14,535,652 230,801,565 264,542,782 -
Total assets 28,735,613 24,461,866 272,073,895 325,271,374 9,560,082
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to OPEB 2,135 3,049 3,863 9,047 41,528
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 1,816,677 240,548 373,640 2,430,865 728,139
Unearned revenue - - - - 16,500
Deposits - - 12,725 12,725 1,037,219
Accrued interest payable - - 2,504,931 2,504,931 -
Accrued compensated absences 30,505 36,741 57,694 124,940 519,088
Current portion of bonds payable - - 2,886,161 2,886,161 -
Current portion of note payable - - 113,614 113,614 -
Total current liabilities 1,847,182 277,289 5,948,765 8,073,236 2,300,946
Noncurrent liabilities:
Accrued compensated absences 1,035 1,246 1,956 4,237 20,505
Note payable-long-term portion - - 1,472,023 1,472,023 -
Bonds payable-long-term portion - - 125,368,485 125,368,485 -
OPEB liability 25,989 37,123 47,033 110,145 505,585
Total noncurrent liabilities 27,024 38,369 126,889,497 126,954,890 526,090
Total liabilities 1,874,206 315,658 132,838,262 135,028,126 2,827,036
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB 6,120 8,741 11,074 25,935 119,047
NET POSITION
Net investment in capital assets 19,103,245 14,535,652 75,143,315 108,782,212 -
Restricted for capital projects - - 15,659,719 15,659,719 -
Restricted for debt service - - 7,314,629 7,314,629 -
Unrestricted 7,754,177 9,604,864 41,110,759 58,469,800 6,655,527
Total net position $ 26,857,422 $ 24,140,516 $ 139,228,422 $ 190,226,360 $ 6,655,527
The accompanying notes are an integral part of the basic financial statements.
52
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET POSITION
for the year ended June 30,2020
Business-type Activities- Governmental
Enterprise Funds Activities-
Sanitary Internal
Sewer Stormwater Water Totals Service Funds
OPERATING REVENUES
Charges for services $ 3,666,422 $ 4,017,864 $ 22,607,832 $ 30,292,118 $ 16,905,629
Miscellaneous revenues 31,478 19,527 69,387 120,392 158,367
Total operating revenues 3,697,900 4,037,391 22,677,219 30,412,510 17,063,996
OPERATING EXPENSES
Salaries and wages 489,684 764,950 1,172,511 2,427,145 9,859,306
Contracted services 35,591 401,490 2,389,751 2,826,832 1,529,650
General,administrative and other 1,631,416 1,579,330 5,131,263 8,342,009 5,541,215
Depreciation 887,463 687,711 5,273,389 6,848,563 -
Total operating expenses 3,044,154 3,433,481 13,966,914 20,444,549 16,930,171
Operating income(loss) 653,746 603,910 8,710,305 9,967,961 133,825
NON-OPERATING REVENUES(EXPENSES)
Interest earnings 182,736 203,029 1,385,168 1,770,933 204,843
Interest expense - - (5,440,862) (5,440,862) -
Loss on investment in joint venture - - (10,423) (10,423) -
Total non-operating revenue(expense) 182,736 203,029 (4,066,117) (3,680,352) 204,843
Net income(loss)before
contributions and transfers 836,482 806,939 4,644,188 6,287,609 338,668
System development revenue 119,288 72,430 2,859,333 3,051,051 -
Capital contributions - 80,186 7,909 88,095 -
Transfers in 17,641 489,093 - 506,734 761,154
Transfers out (471,150) (60,178) (78,330) (609,658) -
Change in net position 502,261 1,388,470 7,433,100 9,323,831 1,099,822
Net position--beginning of year 26,355,161 22,752,046 131,795,322 180,902,529 5,555,705
Net position--end of year $ 26,857,422 $ 24,140,516 $ 139,228,422 $ 190,226,360 $ 6,655,527
The accompanying notes are an integral part of the basic financial statements.
53
CITY OF TIGARD,OREGON
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
for the year ended June 30,2020
Business-type Activities- Governmental
Enterprise Funds Activities-
Sanitary Internal
Sewer Stormwater Water Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 14,412,512 $ 4,925,201 $ 23,007,573 $ 42,345,286 $ 17,888,984
Payments to suppliers (11,985,883) (3,025,522) (7,342,810) (22,354,215) (7,281,722)
Payments to employees (485,974) (760,028) (1,162,422) (2,408,424) (9,689,877)
Other receipts 31,478 19,527 69,387 120,392 158,089
Net cash provided(used)by operating activities 1,972,133 1,159,178 14,571,728 17,703,039 1,075,474
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to other funds (471,150) (60,178) (78,330) (609,658) -
Transfers from other funds - - - - 761,154
Net cash provided(used)by noncapital financing
activities (471,150) (60,178) (78,330) (609,658) 761,154
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
System development revenue 119,288 72,430 2,859,333 3,051,051 -
Principal payments - - (2,385,305) (2,385,305) -
Interest payments - - (6,005,629) (6,005,629) -
Transfers in for capital assets 17,641 489,093 - 506,734 -
Acquisition of capital assets (160,650) (1,647,653) (833,836) (2,642,139) -
Net cash provided(used)by capital and related
financing activities (23,721) (1,086,130) (6,365,437) (7,475,288) -
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in joint venture - - (65,190) (65,190) -
Interest earnings 182,736 203,029 1,385,168 1,770,933 204,843
Net cash provided(used)by investing activities 182,736 203,029 1,319,978 1,705,743 204,843
Net increase(decrease)in cash
and investments 1,659,998 215,899 9,447,939 11,323,836 2,041,471
Cash and investments--beginning of the year 5,675,508 8,817,619 53,128,975 67,622,102 7,237,244
Cash and investments--end of the year $ 7,335,506 $ 9,033,518 $ 62,576,914 $ 78,945,938 $ 9,278,715
RECONCILIATION OF OPERATING INCOME(LOSS)TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income(loss) $ 653,746 $ 603,910 $ 8,710,305 $ 9,967,961 $ 133,825
Adjustments to reconcile operating income(loss)
to net cash provided by operating activities:
Cash flows reported in other categories:
Depreciation expense 887,463 687,711 5,273,389 6,848,563 -
Change in assets and liabilities:
Receivables (230,852) (61,354) 420,340 128,134 (6,680)
Prepaid expenses - - - - (212,500)
Inventory 7,676 7,676 (8,071) 7,281 10,406
Accounts payable and accrued liabilities 650,390 (74,854) 186,275 761,811 (13,563)
Customer deposits - (8,833) (20,599) (29,432) 994,557
Accrued compensated absences 4,126 5,524 10,843 20,493 101,645
OPEB liability (416) (602) (754) (1,772) 67,784
Net cash provided(used)by operating activities $ 1,972,133 $ 1,159,178 $ 14,571,728 $ 17,703,039 $ 1,075,474
Non-cash capital and related financing activities:
Developer contributed sewer,stormwater and
water lines $ - $ 80,186 $ 7,909 $ 88,095 $ -
The accompanying notes are an integral part of the basic financial statements.
54
Fiduciary Funds
This funds account for resources received and held by the city in a fiduciary capacity. Disbursements from
these funds are made in accordance with the plan document agreement or the applicable Internal
Revenue Code Section.The accrual basis of accounting is used to record transactions in the pension trust
funds.
Pension Trust Fund—this fund accounts for the city's retirement plan for employees. The retirement plan
is a defined contribution plan 401(a).
55
56
CITY OF TIGARD,OREGON
STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST
June 30,2020
ASSETS
Investments:
Restricted stable value fund $ 17,911,492
Restricted corporate bonds 1,312,892
Restricted corporate stocks 12,733,605
Total assets 31,957,989
NET POSITION
Restricted for pension benefits $ 31,957,989
The accompanying notes are an integral part of the basic financial statements.
57
CITY OF TIGARD,OREGON
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST
for the year ended June 30,2020
ADDITIONS
Contributions-employer $ 1,682,690
Contributions-plan members 498,335
Investment income 1,678,100
Total additions 3,859,125
DEDUCTIONS
Benefit payments and withdrawals 2,365,615
Administrative expenses 40,086
Total deductions 2,405,701
Change in net position 1,453,424
Net position of assets held in trust for pension benefits:
Beginning of year 30,504,565
End of year $ 31,957,989
The accompanying notes are an integral part of the basic financial statements.
58
Notes to Basic
Financial Statements
59
60
City of Tigard, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies
Financial Reporting Entity
The City of Tigard, Oregon under its Charter of 1961, is governed by an elected mayor and four
council members who comprise the City Council. The City Council appoints a City Manager, who
acts as the administrative head of government for the city.
The accompanying financial statements present the city (primary government) and its
component unit (the city's urban renewal agency), an entity for which the city is financially
accountable. Financial accountability is defined as the appointment of a voting majority of the
organization's governing board and where (1) the city is able to significantly influence the
programs or services performed or provided by the organization or (2) the city is legally entitled
to or can otherwise access the organization's resources. Blended component units, although
legally separate entities, are, in substance, part of the city's operations. Component units may
include organizations which are fiscally dependent on the city in that the city approves the
budget, issues debt or levies taxes. The city has two blended component units included in this
financial report.
Blended Component Unit
The Tigard Town Center Development Agency (TCDA), formerly the City Center Development
Agency, oversees and administers the city's two urban renewal areas: the City Center Urban
Renewal Area (CCURA) and the Tigard Triangle Urban Renewal Area (TTURA).
Voters authorized the CCURA in 2006. The plan's duration is 20 years with maximum
indebtedness of $22 million. In May 2017 the voters approved the creation of a second urban
renewal area, the TTURA, for 35 years with maximum indebtedness of$188 million. The TTURA
and the CCURA were created under the provisions of the Oregon Revised Statutes, Chapter 457.
The City of Tigard Council members serve as the TCDA's governing body.
The activities of the TCDA are included in the city's financial statements as a blended
component unit. The CCURA and the TTURA are part of a legally separate entity, which is
governed by a board comprised of the City Council members, as stipulated in the Tigard
Municipal Code. The Council has the ability to impose its will on the TCDA as determined based
on budget adoption, taxing authority, and funding.
The purpose of the TCDA is to undertake urban renewal projects and activities pursuant to the
city's adopted urban renewal plans. The financial results of the TCDA are reported herein as
debt service and capital projects funds. The TCDA prepared a separate component unit financial
report, which is published on the city's website www.tigard-or.gov or a copy can be obtained
from the city's administrative offices at 13125 SW Hall Blvd, Tigard, Oregon 97223.
61
City of Tigard, Oregon
Notes to Basic Financial Statements
The city administers a single employer defined contribution plan (the Pension Plan) covering
only city employees who are not eligible to participate in OPERS. Named fiduciaries on the
Pension Plan are certain city management employees and the plan is fiscally dependent upon
the city's contributions. As a result, the Pension Plan is reported as a fiduciary fund in the city's
financial statements.
Joint Venture
The city has an ownership position in the Willamette Intake Facility (WIF) for the treatment and
distribution of water from the Willamette River. The WIF is a joint venture of the city and the
Tualatin Valley Water District and the cities of Wilsonville, Sherwood, Hillsboro and Beaverton.
The financial statements of the WIF may be obtained from Tualatin Valley Water District,
Finance Department, 1850 SW 170th Avenue, Beaverton, OR 97003. For more information on
the WIF joint venture see footnote 14.
Lake Oswego/Tigard Water Partnership
The city has entered into an intergovernmental agreement (IGA) with the City of Lake Oswego
for the Lake Oswego/Tigard Water Partnership (Partnership). The Partnership created a reliable
water system to deliver high-quality drinking water to the City of Tigard and the City of Lake
Oswego. The new water system replaced aging, vulnerable, at-capacity infrastructure with a
cutting-edge system designed to the highest seismic resiliency standards. For more information
on the Partnership see footnote 15.
Basic Financial Statements
Basic financial statements are presented at both the government-wide and fund financial level.
Both levels of statements categorize activities as either governmental or business-type.
Governmental activities, which are normally supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support.
Government-wide financial statements display information on all of the non-fiduciary activities
of the city. For the most part, the effect of interfund activity has been removed from these
statements. These statements focus on the sustainability of the city as an entity and the change
in aggregate financial position resulting from the activities of the fiscal year. These aggregated
statements consist of the Statement of Net Position and the Statement of Activities.
The Statement of Activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services or
privileges provided by a given function or segment, and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment.
62
City of Tigard, Oregon
Notes to Basic Financial Statements
Indirect expenses are recovered through internal service fund charges. These indirect expenses
are allocated based on a full-cost approach, thereby allocating indirect expenses among
functions with the objective of allocating all expenses. Taxes and other items not included
among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and the
pension trust fund, even though the pension trust fund is excluded from the government-wide
financial statements. Major individual governmental funds and major individual enterprise
funds are reported as separate columns in the fund financial statements.
Fund financial statements display information at the individual fund level. Each fund is
considered to be a separate accounting entity. Funds are classified and summarized as
governmental, proprietary, or fiduciary.
Currently, the city has governmental, proprietary, and fiduciary fund types. Nonmajor funds are
combined into a single column in the basic financial statements and are detailed in the
supplementary information.
Basis of Presentation
The financial transactions of the city are recorded in individual funds. Each fund is accounted
for by providing a separate set of self-balancing accounts that comprises its assets, deferred
outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and
expenditures/expenses.
Professional standards set forth minimum criteria (percentage of the assets, deferred outflows
of resources, liabilities, deferred inflows of resources, revenues or expenditures/expenses or
either fund category or the governmental and enterprise combined) for the determination of
major funds. The city may also elect to add major funds that city officials believe are particularly
useful to financial statement users. The city has elected to report the enterprise funds as major
as well as include the General Obligation Debt Service Fund as major funds in the current
financial statements. Nonmajor funds are combined in a column in the fund financial
statements and detailed as supplementary information in the financial report.
Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe which transactions are recorded within the
various financial statements. Basis of accounting refers to when transactions are recorded.
The financial statements of the city have been prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP). GAAP statements include
all relevant GASB pronouncements. The city applies the provisions of all applicable GASB
statements that define requirements and the reporting model for the annual financial reports
of state and local governments. The city has recorded capital and certain other long-term assets
63
City of Tigard, Oregon
Notes to Basic Financial Statements
and liabilities in the Statement of Net Position, reported all revenues and the cost of providing
services under the accrual basis of accounting in the Statement of Activities, and uses the direct
method of reporting cash flows.
The government-wide, proprietary fund and fiduciary fund financial statements are presented
on a full accrual basis of accounting with an economic resource measurement focus. An
economic resource focus concentrates on an entity or fund's net position. All transactions and
events that affect the total economic resources (net position) during the period are reported.
An economic resources measurement focus is inextricably connected with full-accrual
accounting. Under the full accrual basis of accounting, revenues are recorded when earned and
expenses are recorded at the time liabilities are incurred, regardless of the timing of related
cash inflows and outflows.
Governmental funds financial statements are presented on a modified accrual basis of
accounting with a current financial resource measurement focus. This measurement focus
concentrates on the fund's resources available for spending currently or in the near future.
Only transactions and events affecting the fund's current financial resources during the period
are reported.
Similar to the connection between an economic resource measurement focus and full accrual
accounting, a current financial resource measurement focus is inseparable from a modified
accrual basis of accounting. Under modified accrual accounting, revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the city considers revenues to be available if they are collected
within 60 days of the end of the current fiscal year.
Property taxes, intergovernmental revenues and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as revenues
of the current fiscal period. Only the portion of special assessments receivable due within the
current fiscal period is considered susceptible to accrual as revenue of the current period. All
other revenues are considered to be measurable and available only when cash is received by
the city.
A deferred inflow of resources, shown as unavailable revenue, arises in the governmental funds
balance sheet when potential revenue does not meet both the measurable and available
criteria for recognition in the current year.
This unavailable revenue consists primarily of uncollected property taxes and assessments not
deemed available to finance operation of the current period. In the government-wide
Statement of Activities, with a full accrual basis of accounting, revenue must be recognized as
64
City of Tigard, Oregon
Notes to Basic Financial Statements
soon as it is earned regardless of its availability. Thus, the liability created on the governmental
fund balance sheet for unavailable revenue is eliminated.
Similar to the way revenues are recorded, governmental funds only record those expenditures
that affect current financial resources. Principal and interest on general long-term debt is
recorded as a fund liability only when due, or to the extent that it is expected to be liquidated
with expendable financial resources. However, in the government-wide financial statements
with full accrual basis of accounting, all expenditures affecting the economic resource status of
the government must be recognized. Thus, the expense and related accrued liability for long-
term portions of debt, interest, other postemployment benefits and compensated absences
must be included.
Since the governmental fund statements are presented on a different measurement focus and
basis of accounting than the government-wide statements' governmental column, a
reconciliation is necessary to explain the adjustments needed to transform the fund-based
financial statements into the governmental column of the government-wide presentation. This
reconciliation is part of the basic financial statements.
Interfund activity consists of transfers, services provided and/or used, reimbursements,
advances and loans. As a general rule, the effect of interfund activity has been eliminated from
the government-wide financial statements. Exceptions to this general rule are charges between
enterprise and various other city functions. Elimination of these charges would distort the
direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions and 3) capital
grants and contributions. Internally dedicated resources are reported as general revenues
rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services, and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the city's Sanitary Sewer, Stormwater, and Water Funds are
charges to customers for sales and services. The Sanitary Sewer, Stormwater, and Water Funds
recognize fees intended to recover the cost of connecting new customers to the city's utility
systems as non-operating revenues. Operating expenses for enterprise funds include the cost of
sales and services, administrative expenses and overheads, and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as non-operating revenues
and expenses.
The fiduciary fund accounts for the resources held by the city in a custodial capacity, on behalf
of the employees of the city.
65
City of Tigard, Oregon
Notes to Basic Financial Statements
New Accounting Pronouncements and Accounting Standards
During the fiscal year ended June 30, 2020, the city did not implement any new GASB
pronouncements.
The following pronouncements have been issued by the Governmental Accounting Standards
Board (GASB) but not yet implemented by the city:
GASB Statement No. 84, Fiduciary Activities
Issued January 2017, this statement establishes criteria for identifying fiduciary activities of all
state and local governments. GASB 84 will be effective for the city, fiscal year ending June 30,
2021.
GASB Statement No. 87, Leases
This Statement was issued June 2017 to better meet the information needs of financial
statement users by improving accounting and financial reporting for leases by governments and
increases the usefulness of governments' financial statements. Under this Statement, a lessee is
required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is
required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing
the relevance and consistency of information about governments' leasing activities. GASB
Statement No. 87 will be effective for the city for fiscal year ending June 30, 2021.
GASB Statement No. 90, Majority Equity Interests
Issued August 2018, the primary objective of this statement is to improve the consistency and
comparability of reporting a government's majority equity interest in a legally separate
organization; and to improve the relevance of financial statement information for certain
component units. GASB Statement No. 90 will be effective for the city for fiscal year ending
June 30, 2021.
GASB Statement No. 91, Conduit Debt Obligations
This statement was issued May 2019, this Statement establishes accounting requirements for
conduit debt obligations by issuers. The objectives of this Statement are to eliminate diversity
in practice associated with (1) commitments extended by issuers, (2) arrangements associated
with conduit debt obligations, and (3) related note disclosures. GASB Statement No. 91 will be
effective for the city for the fiscal year ending June 30, 2022.
GASB Statement No. 92, Omnibus 2020
This statement was issued January 2020, this Statement enhances comparability and financial
reporting to improve the consistency of authoritative literature to address practice issues that
have been identified during implementation and application of certain GASB Statements. This
Statement addresses a variety of topics including issues related to leases implementation,
derivative instruments, postemployment benefits (pensions and other postemployment
66
City of Tigard, Oregon
Notes to Basic Financial Statements
benefits [OPER]), asset retirement obligations, risk pool and fair value measurements.
Specifically, this Statement addresses the following topics:
• The effective date of Statement No. 87, Leases, and Implementation Guide No 2019-3,
Leases, for interim financial reports
• Reporting of intra-entity transfers of assets between a primary government employer
and a component unit defined benefit pension plan or defined benefit other
postemployment benefit (OPEB) plan
• The applicability of Statement No. 73, Accounting and Financial Reporting for Pensions
and Related Assets That Are Not within the Scope of GASB Statement 68, and
Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and No.
74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as
amended, to reporting assets accumulated for postemployment benefits
• The applicability of certain requirements of Statement No. 84, Fiduciary Activities, to
postemployment benefit arrangements
• Measurement of Liabilities (and assets, if any) related to asset retirement obligations
(AROs) in a government acquisition
• Reporting by public entity risk pools for amounts that are recoverable from reinsurers or
excess insurers
• Reference to nonrecurring fair value measurements of assets or liabilities in
authoritative literature
• Terminology used to refer to derivative instruments
GASB Statement No. 92 will be effective for the city for the fiscal year ending June 30, 2023.
GASB Statement No. 93, Replacement of Interbank Offered Rates(IBOR)
This Statement was issued March 2020 to address accounting and financial reporting
implications that result from the replacement of an IBOR. This Statement is:
• Providing exceptions for certain hedging derivative instruments to the hedge accounting
termination provisions when an IBOR is replaced as the reference rate of the hedging
derivative instrument's variable payment
• Clarifying the hedge accounting termination provisions when a hedged item is amended
to replace the reference rate
• Clarifying that the uncertainty related to the continued availability of IBORs does not, by
itself, affect the assessment of whether the occurrence of a hedged expected
transaction is probable
• Removing the London Interbank Offered Rate (LIBOR) as an appropriate benchmark
interest rate for the qualitative evaluation of the effectiveness of an interest rate swap
• Identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as
appropriate benchmark interest rates for the qualitative evaluation of the effectiveness
of an interest rate swap
• Clarifying the definition of reference rate, as it is used in Statement 53, as amended
67
City of Tigard, Oregon
Notes to Basic Financial Statements
• Providing an exception to the lease modifications guidance in Statement 87, as
amended, for certain lease contracts that are amended solely to replace an IBOR as the
rate upon which variable payments depend
GASB Statement No. 93 will be effective for the city for the fiscal year ending June 30, 2022.
GASB Statement No. 94, Public-Private and Public-Public Partnership and Availability
Payment Arrangements
This Statement was issued March 2020 to improve financial reporting by addressing issues
related to public-private and public-public partnership arrangements (PPPs). It also provides
guidance for accounting and financial reporting for availability payment arrangements (APAs).
GASB Statement No. 94 will be effective for the city for the fiscal year ending June 30, 2024.
GASB Statement No. 95, Postponement of Effective Dates
This Statement was issued May 2020 to provide temporary relief to governments and other
stakeholders in light of the COVID-19 pandemic by postponing the effective dates of certain
provisions in Statements and Implementation Guides that first became effective or are
scheduled to become effective for periods beginning after June 15, 2018 and later.
The effective dates of certain provisions contained in the following pronouncements are
postponed by one year:
• Statement No. 83, Certain Asset Retirement Obligations
• Statement No. 84, Fiduciary Activities
• Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and
Direct Placements
• Statement No. 89, Accounting for Interest Cost Incurred before the End of a
Construction Period
• Statement No. 90, Majority Equity Interests
• Statement No. 91, Conduit Debt Obligations
• Statement No. 92, Omnibus 2020
• Statement No. 93, Replacement of Interbank Offered Rates
• Implementation Guide No. 2017-3, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan
Reporting)
• Implementation Guide No. 2018-1, Implementation Guidance Update - 2018
• Implementation Guide No. 2019-1, Implementation Guidance Update - 2019
• Implementation Guide No. 2019-2, Fiduciary Activities
The effective dates of the following pronouncements are postponed by 18 months:
• Statement No. 87, Leases
• Implementation Guide No. 2019-3, Leases
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City of Tigard, Oregon
Notes to Basic Financial Statements
GASB Statement No. 96,Subscription-Based Information Technology Arrangements (SBITA5)
This statement was issued May 2020 to provide guidance on the accounting and financial
reporting for subscription-based information technology arrangements for government end
users (governments). This statement (1) defines a SBITA; (2) establishes that a SBITA results in a
right-to-use subscription asset - an intangible assets - and a corresponding subscription liability;
(3) provides the capitalization criteria for outlaw other than subscription payments, including
implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. GASB
Statement No. 96 will be effective for the City for the fiscal year ending June 30, 2023.
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial
Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - an
amendment of GASB Statement No. 14 and No. 84, and a supersession of GASB Statement No.
32
This Statement was issued June 2020. The primary objectives are to (1) increase consistency
and comparability related to the reporting of fiduciary component units in circumstances in
which a potential component unit does not have a governing board and the primary
government performs the duties that a governing board typically would perform; (2) mitigate
costs associated with the reporting of certain defined contribution pension plans, defined
contribution other postemployment benefit (OPEB) plans, and employee benefit plans other
than pension plans or OPEB plans (other employee benefit plans) as fiduciary component unit
in fiduciary fund financial statement; and (3) enhance the relevance, consistency, and
comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section
457 deferred compensation plans (Section 457 plans) that meets the definition of a pension
plan and for benefits provided through those plans. GASB Statement No. 97 will be effective for
the city for the fiscal year ending June 30, 2022.
The city will implement new GASB pronouncements no later than the required effective date.
The city is currently evaluating whether or not the above listed new GASB pronouncements will
have a significant impact to the city's financial statements.
Assets, Deferred Outflows/Inflows of Resources, Liabilities, and Net Position/Fund Balance
Cash and Investments
Cash and cash equivalents are generally considered short-term, highly liquid investments with a
maturity of three months or less from the purchase date. The city's cash and cash equivalents
consists of cash on hand, demand deposits and cash deposits that are held in an investment
pool, Local Government Investment Pool, that has the general characteristic of a demand
deposit account (deposits of additional cash may be made at any time and cash may be
withdrawn at any time without prior notice or penalty). Interest earned on cash and cash
equivalents is allocated monthly based on each fund's average cash balance as a proportion of
the city's total.
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City of Tigard, Oregon
Notes to Basic Financial Statements
For purposes of the statement of cash flows, the city considers the proprietary funds' cash and
cash equivalents to be cash on hand, demand deposits and cash deposits that are held in an
investment pool with original maturities of three months or less.
Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value
Measurement and Application. Accordingly, the change in fair value of investments is
recognized as an increase or decrease to investment assets and investment income. Interest
earned on investments is allocated monthly based on each fund's average cash balance as a
proportion of the city's total cash and investments.
The city reports cash with fiscal agent and certain cash and investments as restricted because
their use is limited by parties external to the city. Restrictions may be from bond proceeds,
imposed by creditors, other governments, laws and/or enabling legislation.
When both restricted and unrestricted resources are available for use, it is the city's policy to
use restricted resources first, then unrestricted resources as they are needed.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding
at the end of the fiscal year are referred to as "Advances to/Advances from other funds". Any
residual balances outstanding between the governmental activities and business-type activities
are reported in the government-wide financial statements as "internal balances."
Property taxes are levied and become a lien on July 1. Collection dates are November 15,
February 15, and May 15 following the lien date. Discounts are allowed if the amount due is
received by November 15 or February 15. Taxes unpaid and outstanding on May 16 are
considered delinquent.
The city also has receivables outstanding for assessments on private property. These
assessments include street and sidewalk improvements, sewer line installations and deferral of
certain impact fees (system development charges).
Proprietary fund receivables are recorded as revenue when earned, including services earned
but not billed. The receivables of proprietary funds include billing for residential and
commercial customers utilizing the city's water, sanitary sewer and stormwater management
services.
The city's receivables, including property taxes, assessments and proprietary fund receivables
are deemed to be substantially collectible. Tax and assessments receivable can be recovered
through foreclosure on the subject property. Services can be disconnected if proprietary fund
receivables remain unpaid. Accordingly, no allowance for doubtful accounts is deemed
70
City of Tigard, Oregon
Notes to Basic Financial Statements
necessary for these receivables. The city records a receivable and related allowance for
municipal court accounts receivable.
Accounts payable to vendors and contractors include general accounts payable, retainage
payable, deposits payable and other accrued liabilities not included in short-term or long-term
liabilities.
Inventories and Prepaids
Inventories of parts, materials and supplies are stated at cost on the first-in, first-out basis, in
the proprietary funds.The consumption method is used in accounting for inventory for all funds
on the budgetary basis. The consumption method is used for the government-wide
presentation as well as the proprietary funds and business-type activities.
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaids in both government-wide and fund financial statements using the
consumption method. Payments classified as prepaid are primarily items that are being
amortized such as prepaid insurance.
Property Held for Resale
Property held for resale is recorded as an asset and includes land and building inventory stated
at the lower of cost or market. At year-end no reductions in value were necessary, therefore
recorded amounts were equal to original cost.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads,
pathways, streetlights, etc.) are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements, and in the proprietary fund
statements.
Capital assets are charged to expenditures as purchased or constructed in the governmental
fund statements and capitalized in the proprietary fund statements. Capital assets are recorded
at historical cost or estimated historical cost. Donated assets, donated works of art and similar
items, and capital assets received in a service concession arrangement are recorded at
acquisition value.
Capital assets are defined by the city as assets with an initial, individual cost of $5,000 or more,
and an estimated useful life of greater than one year. Additions or improvements and other
capital outlays that significantly extend the useful life of an asset, or that significantly increase
the capacity of an asset are capitalized. Other costs for repairs and maintenance are expensed
as incurred.
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City of Tigard, Oregon
Notes to Basic Financial Statements
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of
Activities with accumulated depreciation reflected in the Statement of Net Position and is
provided on the straight-line basis over the following estimated useful lives:
Asset Years
Buildings and improvements 25-40
Improvements other than buildings 10-20
Machinery and equipment 5-10
Autos and trucks 5-10
Infrastructure 20-40
Deposits
In general deposits represent developer funds collected by the city, primarily when issuing
permits for new construction and infrastructure development. Various funds report deposits,
including the General Fund, Gas Tax Fund, Electrical Inspection Fund, Building Fund, Urban
Forestry Fund, Stormwater Fund, Water Fund, and Urban Renewal Agency Capital Improvement
Fund. Deposits are held by the city until the obligations for the projects have been completed
or forfeited for non-compliance with development requirements as determined by city
inspection staff.
Unearned Revenues
Unearned revenues will be recognized as revenue in the fiscal year they are earned in
accordance with the accrual basis of accounting. Revenue is considered earned when all
eligibility criteria are met, and the amount is measurable.
Deferred Outflows/Inflows of Resources
Deferred outflows of resources represent a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until
then. Deferred outflows of resources follow assets on the Statement of Net Position.
Deferred inflows of resources represent an acquisition of net position that applies to a future
period(s) and therefore will not be recognized as an inflow of resources (revenue) until that
time. In the Statement of Net Position, this includes resources that are received before the city
has met eligibility requirements related to time. In the governmental fund financial statements,
deferred inflows of resources include revenues that are measurable but not available.
For purposes of measuring the net pension (asset) liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information about the
fiduciary net position of the Oregon Public Employees Retirement System (OPERS) and
additions to/deductions from OPERS's fiduciary net position have been determined on the
same basis as they are reported by OPERS. For this purpose, benefit payments (including
72
City of Tigard, Oregon
Notes to Basic Financial Statements
refunds of employee contributions) are recognized when due and payable in accordance with
the benefit terms.
Accrued Compensated Absences
It is the city's policy to permit employees to accumulate earned but unused vacation and sick
pay benefits. There is no liability for unpaid accumulated sick leave, since the city does not have
a policy to pay any amounts when employees separate from the city. Vacation pay is accrued
when incurred in the government-wide and proprietary fund financial statements. A liability for
these amounts is reported in the governmental funds only when it has matured, for example, as
result of employee resignations or retirements.
Long-Term Debt
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type in the
Statement of Net Position. Bond premiums and discounts are deferred and amortized over the
life of the bonds. Bonds payable are reported net of the applicable bond premium or discount.
Bond issuance costs are treated as period costs in the year of issue.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources while premiums and discounts on debt issuances
are reported as other financing sources and uses, respectively. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
Other Post-Employment Benefits (OPEB)
The city's OPEB liability is recognized as a long-term liability in the government-wide financial
statements, the amount of which is actuarially determined.
Net Pension Liability
The city reports its proportionate share of the Net Pension Liability of the Oregon Public
Employees Retirement System (OPERS). A negative Net Pension Liability is reported as a Net
Pension Asset. The net pension asset/liability is measured as the portion of the present value of
projected benefits payment to be provided through the pension plan to current active and
inactive qualifying employees that is attributed to those employees past periods of service less
the amount of the pension plan's fiduciary net position.
Contributions
Capital contributions from developers are credited to contribution revenue and the related
capital assets are recorded in the government-wide financial statements.
73
City of Tigard, Oregon
Notes to Basic Financial Statements
Fund Balances and Net Position
In the fund financial statements, the fund balance for governmental funds is reported in a
hierarchy of classifications based primarily on the extent to which the government is bound to
honor constraints on the specific purposes for which amounts in those funds can be spent. The
city reports fund balances in the following categories:
Nonspendable for resources that cannot be spent because they are either in a
nonspendable form or legally or contractually required to be maintained intact. Resources
in nonspendable form include inventories, prepaids, deposits, advances from internal loans
and property assets held for resale.
Restricted for amounts with constraints placed on the use of resources are either (1)
externally imposed by creditors (such as through debt covenants), grantors, contributors,
laws or regulations of other governments; or (2) imposed by law through constitutional
provisions or enabling legislation.
Committed for amounts that City Council passes an ordinance or council resolution, a
formal action made by the entity's highest level of decision making authority, which places
specific constraints on how the resources may be used. Resolutions and ordinances are
considered equally binding in that the City Council can modify or rescind the ordinance or
resolution at any time through passage of an additional ordinance or resolution.
Assigned for resources that are constrained by the government's intent to use them for a
specific purpose, but are neither restricted nor committed, are reported as assigned fund
balance. The City Council expresses their intent to use a resource for a specific purpose by
including that resource in the adopted annual budget for funds outside of the General Fund.
Assigned fund balances are not reported in the General Fund as the city has not established
a policy regarding the assignment of funds.
Unassigned fund balance is the residual classification for the General Fund. This
classification represents fund balance that is not assigned, committed, restricted or
nonspendable within the General Fund. This classification is also used to report any deficit
fund balance amounts in other governmental funds.
When an expenditure is incurred for purposes for which both restricted and unrestricted
fund balance is available, the city considers restricted amounts to have been spent.
Likewise, when an expenditure is incurred for purposes for which either committed or
assigned fund balance is available, the city considers committed or assigned amounts to
have been spent.
74
City of Tigard, Oregon
Notes to Basic Financial Statements
Net Position
On the government-wide Statement of Net Position, the proprietary funds' Statement of
Net Position, and the fiduciary funds' Statement of Fiduciary Net Position, net position is
segregated into restricted and unrestricted balances. Restrictions are limitations on how the
net position may be used. Restrictions may be placed on net position by an external party
that provided the resources, by enabling legislation or by the nature of the asset.
The net investment in capital assets component of net position represents total capital
assets less accumulated depreciation, less debt directly related to capital assets. This
amount is reported on the Statement of Net Position and in the financial statements for
Proprietary Fund types.
Use of Estimates
In preparing the city's financial statements, management is required to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses/expenditures during the reporting period. Actual results
could differ from those estimates.
Fund Types:
The city's financial operations are accounted for in the following funds:
Governmental funds
Governmental funds finance most governmental functions of the city. The acquisition, use and
balances of the city's expendable financial resources and the related liabilities, excluding those
accounted for in proprietary funds, are accounted for through governmental funds. The
measurement focus is upon determination of changes in current financial resources, rather
than upon net position determination. The following are the city's major governmental funds:
General Fund - This fund accounts for the city's general operations. It is used to account
for all transactions not specifically required to be accounted for in the city's other funds.
General Obligation Debt Service Fund — This fund accounts for payment of general
obligation bond principal and interest. Revenues are derived from property taxes and
interest earnings.
Proprietary funds
Proprietary funds are used to account for the acquisition, operation and maintenance of
sewer, storm drainage, and water systems in the city. These funds are entirely or
predominantly self-supported through user charges to customers. The measurement focus is
upon net income determination, rather than upon determination of changes in current
financial resources. The following enterprise funds are the city's major proprietary funds:
75
City of Tigard, Oregon
Notes to Basic Financial Statements
Enterprise funds:
Sanitary Sewer Fund -This fund accounts for the city's sewer utility operations.
Stormwater Fund — This fund accounts for the city's storm drainage operations which
consists of the following two budgetary funds: Stormwater Fund and Water
Quality/Quantity Fund.
Water Fund - This fund accounts for the city's water operations which consists of the
following four budgetary funds: Water Fund, Water SDC Fund, Water CIP Fund and Water
Debt Service Fund.
Additionally, the city reports the following fund types:
Nonmajor governmental funds:
Special Revenue funds account for restricted or committed revenues for specific purposes.
Debt Service funds account for the accumulation of resources to pay principal and interest
on the city's long-term obligations.
Capital Projects funds account for the accumulation of resources for construction or
acquisition of facilities and equipment.
Internal service funds
Internal service funds account for goods and services provided by one city department to
another on a cost reimbursement basis. The internal service funds account for the activities of
health insurance for employees, liability insurance, workers' compensation insurance, facilities
and fleet and support and administrative services.
Fiduciary Fund
Fiduciary funds focus on net position and changes in net position. The city's fiduciary fund is
the defined contribution pension plan for the benefit of employees.
2. Stewardship, Compliance and Accountability
Budgetary information
A budget is prepared for each fund, except for the Pension Trust Fund, under the modified
accrual basis of accounting used by governmental funds, which is in accordance with the legal
requirements of Oregon local budget law.
The resolution authorizing appropriations sets the maximum level of expenditures for each
fund and may not legally be over expended. Appropriations lapse at the end of each fiscal
year. Appropriations are made at the major program level for each fund, for example,
76
City of Tigard, Oregon
Notes to Basic Financial Statements
Community Services, Public Works, Community Development, Policy and Administration, Debt
Service, Capital Improvements and Contingency. The detail budget document is required to
contain more detailed information for the above-mentioned expenditure categories.
After budget approval, the City Council may approve supplemental budgeted appropriations if
an occurrence, condition, or need exists which had not been ascertained at the time the
budget was adopted. A supplemental budget may require hearings before the public,
publications in newspapers and approval by the City Council. Original and supplemental
budgets may be modified by the use of appropriations transfers between the levels of control.
Such transfers require approval by the City Council. Management may not amend the budget
without council approval. The City Council approved four supplemental budgets throughout
the fiscal year.
Oregon state law requires disclosure of fund expenditures in excess of budgeted
appropriations. However, local budget law exempts reporting of over appropriations for a
variety of situations related to the issuance, repayment and refunding of bonds as defined in
ORS 294.338(3-5). This includes bonds issued under revenue bond authority as defined in ORS
287A.360 to 287A.380. Additionally, any outstanding obligation related to an approved bond
redemption, in a prior adopted budget period as defined in ORS 294.338(3)(B)(iii) is also
exempt.
For GAAP presentation, the transfers from non-operating funds for services provided by the
internal service funds and the General Fund are considered revenues and
expenses/expenditures, as appropriate, but may be considered to be interfund transfers for
budgetary purposes.
3. Cash and Investments
The city maintains a cash and investment pool that is available for use by all funds except the
Pension Trust Fund. Each fund type's portion of this pool is displayed on the combined balance
sheet as "cash and investments". Unrestricted and restricted cash and investments for the
primary government are reported in governmental and business-type activities. Restricted
balances reported in cash and investments are restricted by legal or contractual requirements.
Restricted investments reported in fiduciary activities represent the Pension Trust Fund. These
investments are for the city's defined contribution plan and held separately from city funds
and managed by a third party.
77
City of Tigard, Oregon
Notes to Basic Financial Statements
Cash and investments, restricted and unrestricted, at June 30, 2020:
Primary Fiduciary
Type Government Activities Total
Deposits with financial institutions $ 7,360,800 $ - $ 7,360,800
Money markets 6,138,701 - 6,138,701
Cash deposits 13,499,501 - 13,499,501
Cash with fiscal agent 305,754 - 305,754
Petty cash/cash on hand 9,656 - 9,656
Total cash 13,814,911 - 13,814,911
State Investment Pool (LGIP) 155,074,962 - 155,074,962
U.S. Agencies 5,019,780 - 5,019,780
Asset allocation/stable value fund - 17,911,492 17,911,492
Corporate bonds 14,401,010 1,312,892 15,713,902
Corporate stocks - 12,733,605 12,733,605
Total investments 174,495,752 31,957,989 206,453,741
Total cash and investments $ 188,310,663 $ 31,957,989 $220,268,652
Governmental Business Type Fiduciary
Total
Activities Activities Activities
Cash and investments $ 42,732,126 $ 54,188,443 $ - $ 96,920,569
Restricted cash and investments 66,632,599 24,757,495 31,957,989 123,348,083
Total cash and investments $ 109,364,725 $ 78,945,938 $ 31,957,989 $ 220,268,652
Deposits
Custodial Credit Risk. There is a risk that, in the event of a bank failure, the city's deposits may
not be returned. The city's deposit policy is in accordance with Oregon Revised Statutes (ORS)
295. Cash with financial institutions include bank demand deposits and bank money market
accounts. The combined total book balance at June 30, 2020 was $13,499,501 and the total
bank balance is $14,142,671. Of these deposits, $500,000 was covered by federal depository
insurance and $13,642,671 was collateralized in accordance with ORS 295. The Federal
Depository Insurance Corporation (FDIC) provides deposit insurance up to $250,000 for each
institution.
Institutions with deposits in excess of FDIC coverage participate in the Oregon Public Funds
Collateralization Program (PFCP) as defined in Oregon Revised Statutes (ORS) 295. This
provides additional protection for public funds in the event of a bank failure, although it does
not guarantee 100 percent protection. The Office of the State Treasurer categorizes the
financial institutions in Oregon.
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City of Tigard, Oregon
Notes to Basic Financial Statements
Based on that categorization, banks must pledge collateral valued at between 10 percent and
110 percent of their public fund deposits. In the event of a bank failure, the entire pool of
collateral pledged by all qualified Oregon public funds bank depositories is available to repay
deposits of public funds of government entities. The Office of the State Treasurer maintains a
list of qualified financial institutions for the deposit of public funds in excess of FDIC
insurance. The financial institutions holding city deposits are noted on the State Treasurer's
qualified list. In addition, the city's policy states bank deposits of any one qualified financial
institution shall not exceed 1 percent of the institution's total assets. The city is in compliance
with this policy at year-end.
Investments
For an investment, this is the risk that, in the event of failure of the counterparty, the city will
not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. All of the city's investments, except for the State of Oregon
Local Government Investment Pool (LGIP), are held in safekeeping by the financial institution
in the city's name. The city's investment policy, which adheres to State of Oregon law, states
bank deposits with any one qualified institution shall not exceed 20 percent of the portfolio.
State statutes authorize the city to invest primarily in general obligations of the U.S.
government and its agencies, certain bonded obligations of Oregon municipalities, bank
repurchase agreements, bankers' acceptances, certain commercial paper and corporate bonds
and the LGIP. Annually, the city adopts an investment policy in connection with the budget
process.
The LGIP is administered by the Oregon State Treasury. The LGIP is an open-ended no-load
diversified portfolio offered to any agency, political subdivision or public corporation of the
State who by law is made the custodian of, or has control of, any fund. The LGIP is commingled
with the State's short-term funds. In seeking to best serve local governments of Oregon, the
Oregon Legislature established the Oregon Short-Term Fund Board, which is not registered
with the U.S. Securities and Exchange Commission as an investment company. The fair value
of the city's position is the same as the value of the city's pool shares. The purpose of the
Board is to advise the Oregon State Treasury in the management and investment of the LGIP.
The Oregon Audits Division of the Secretary of State's Office audits the LGIP annually.
At June 30, 2020, the city's fair value in the LGIP was $155,074,962. Financial statement for the
Oregon Short-Term Fund can be found on line at:
http://www.oregon.gov/treasury/Divisions/Investment/Pages/Oregon-Short-Term-Fund-
(OSTF).aspx
In accordance with the implementation of GASB Statement No. 72, Fair Value Measurement
and Application, the city categorizes its fair value measurements within the fair value hierarchy
established by generally accepted accounting principles. These inputs to valuation techniques
are categorized into a fair value hierarchy consisting of three broad levels for financial
statement purposes as follows:
79
City of Tigard, Oregon
Notes to Basic Financial Statements
Level 1 - unadjusted price quotations in active markets/exchanges for identical assets or
liabilities that each Fund has the ability to access.
Level 2 - other observable inputs (including, but not limited to, quoted prices for similar assets
or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities
in markets that are not active, inputs other than quoted prices that are observable for the
assets or liabilities (such as interest rates, yield curves, volatilities, loss severities, credit risks
and default rates) or other market-corroborated inputs).
Level 3 - unobservable inputs based on the best information available in the circumstances, to
the extent observable inputs are not available (including each Fund's own assumptions used in
determining the fair value of investments).
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for
identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable
inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining
fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair
value may fall into different levels of the fair value hierarchy. In such cases, for disclosure
purposes, the fair value hierarchy classification is determined based on the lowest level input
that is significant to the fair value measurement in its entirety.
The categorization of a value determined for investments is based on the pricing transparency
of the investments and is not necessarily an indication of the risks associated with investing in
those securities.
The city has the following investments and recurring fair value measurements as of June 30,
2020:
Fair Value
Fair Value Measurement
Primary Government
Amortized Cost Not
Local Government Investment Pool (LGIP) $ 155,074,962 Measured at Fair Value
U.S. Agencies 5,019,780 Level 2
Corporate Bonds 14,401,010 Level 2
Total Primary Government investments 174,495,752
Fiduciary Activities
Asset allocation/stable value fund 17,911,492 Level 2
Corporate bonds 1,312,892 Level 2
Corporate stocks 12,733,605 Level 1
Total Fiduciary Activities investments 31,957,989
Total Investments $ 206,453,741
80
City of Tigard, Oregon
Notes to Basic Financial Statements
The LGIP includes investments in external investment pools and does not meet the
requirements for "leveling" disclosures as established in GASB Statement No. 72. Therefore,
fair value of the LGIP is determined by the pool's underlying portfolio.
The city's Pension Trust Fund accounts for the defined contribution pension plan for eligible
employees. The employees direct the investment options within the plan. Funds invested in
the plan are for the sole benefit of the employee and therefore restricted. At June 30, 2020
the total restricted investments in the pension plan were $31,957,989. The value of the
pension plan's investments at year-end are measured at fair value by a third-party custodian
based on the net asset value of the individual mutual funds.
Interest rate risk. Interest rate risk is the risk that the value of a debt security may fall when
interest rates rise. In general, the market price of debt securities with longer maturities will go
up or down in response to changes in interest rates more than the market price of shorter-
term securities. Additionally, securities issued or guaranteed by the U.S. Government, its
agencies, instrumentalities and sponsored enterprises have historically involved little risk of
loss of principal if held to maturity. However, due to fluctuations in interest rates, the market
value of such securities may vary prior to maturity.
In accordance with its investment policy, the city manages its exposure to declines in fair value
by limiting the individual maturities in its investment portfolio to eighteen months or less. The
city's investment policy states that at least 30 percent of the portfolio can have maturities less
than ninety days and up to 20 percent of the portfolio can have maturities from eighteen
months to thirty-six months. Per the policy, no investments will be made for a period to
exceed thirty-six months. The city does not actively trade investments, usually holding them to
maturity. The city was in compliance with its policy at year-end.
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City of Tigard, Oregon
Notes to Basic Financial Statements
At June 30, 2020, the city had the following investments and maturities at fair value:
Weighted
Average
Maturity
Risk (in
Investment Type Fair Value Concentration months)
Primary Government
Local Government Investment Pool (LGIP) * $ 155,074,962 75.1% < 1
U.S. Agencies 5,019,780 2.4% < 1
Corporate Bonds 14,401,010 7.0% 2.37
Total Primary Government investments 174,495,752 84.5%
Fiduciary Activities
Asset allocation/stable value fund 17,911,492 8.7% N/A
Corporate bonds 1,312,892 0.6% **
Corporate stocks 12,733,605 6.2% N/A
Total Fiduciary Activities investments 31,957,989 15.5%
Total Investments $ 206,453,741 100.0%
Portfolio weighted average maturity 2.89
* LGIP is considered an investment per the city's investment policy. For financial reporting,
LGIP is considered cash and cash equivalents due to the liquid nature of the accounts.
** Maturity information not available for Fiduciary Activities.
Concentration of credit risk: Concentration of credit risk is the risk of loss attributed to the
magnitude of a government's investment in a single issuer. The city's policy for investing in
individual issuers varies depending on the type of investments. Following are maximum
instrument diversification per city policy. At year-end the city was in compliance with this
policy.
• U.S. Agency securities are restricted to no more than 90 percent.
• Certificates of deposit are restricted to no more than 25 percent.
• Corporate bonds are restricted to no more than 35 percent. In addition, investments in
corporate bonds of any one issuer may not exceed 5 percent of the investment
portfolio.
Credit risk:The city's policy, which adheres to State of Oregon law, is to limit its Corporate and
Municipal investments to the following: Issuers within Oregon must be rated "A" (bonds) or A-
2 / P-2 (commercial paper) or better by Standard and Poor's, Moody's Investors Service or any
other nationally recognized statistical rating organization. Issuers not in Oregon must be rated
AA/Aa (bonds) or A-1/ P-1 (commercial paper) or better.
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City of Tigard, Oregon
Notes to Basic Financial Statements
At June 30, 2020 the city's investments were rated as follows:
of Fair
Investment Type Moody's S & P Fitch Fair Value Value
Primary Government
State Investment Pool (LGIP) N/R N/R N/R $ 155,074,962 75.1%
Corporate Bonds A2 N/R N/R 5,118,050 2.5%
Corporate Bonds A2 N/R N/R 4,103,360 2.0%
Corporate Bonds Al A+ N/R 5,179,600 2.5%
US Agency Aaa AA+ N/R 1,007,130 0.5%
US Agency Aaa N/R N/R 1,009,770 0.5%
US Agency N/R AA+ N/R 3,002,880 1.4%
Total Primary Government investments 174,495,752 84.5%
Fiduciary Activities
Asset allocation/stable value fund 17,911,492 8.7%
Corporate bonds 1,312,892 0.6%
Corporate stocks 12,733,605 6.2%
Total Fiduciary Activities investments 31,957,989 15.5%
Tota I Investments $ 206,453,741 100.0%
Rating agency information not available for Fiduciary Activities.
83
City of Tigard, Oregon
Notes to Basic Financial Statements
4. Accounts Receivable
Accounts receivable as of June 30, 2020 for the city's individual major funds, nonmajor and
internal service funds in the aggregate, including the applicable allowances for uncollectible
accounts are noted below:
Allowance
Gross for Doubtful Receivables,
Accounts Taxes Assessments Receivables Accounts Net
Governmental Activities
General $ 6,016,749 $ 288,721 $ - $ 6,305,470 $ (2,350,198) $ 3,955,272
General Obligation Debt Service 6,222 40,665 - 46,887 - 46,887
Nonmajor governmental 1,516,313 3,019 214,276 1,733,608 - 1,733,608
Internal service 27,138 - - 27,138 - 27,138
$ 7,566,422 $ 332,405 $ 214,276 $ 8,113,103 $ (2,350,198) $ 5,762,905
Business-Type Activities
Sanitary sewer $ 2,008,532 $ - $ - $ 2,008,532 $ - $ 2,008,532
Stormwater 631,686 - - 631,686 - 631,686
Water 3,186,006 - - 3,186,006 - 3,186,006
$ 5,826,224 $ - $ - $ 5,826,224 $ - $ 5,826,224
Total receivables $ 11,589,129
Shown on the Statement of Net Positions as:
Accounts receivable, net $ 11,042,448
Property taxes receivable 332,405
Assessment liens receivable 214,276
$ 11,589,129
Under State of Oregon statutes, municipal court receivables are valid for ten years and are then
renewable for another ten years. According to city policy, these receivables are turned over to
an external collection agency after approximately 180 days. Historical collection percentages
average about 25 percent. Accordingly, at June 30, 2020, $3,133,596 was outstanding for
municipal court receivables with a related allowance for doubtful accounts of$2,350,198.
Assessment liens receivable represent the uncollected amounts levied against benefited
property for the cost of local capital improvements. Because the assessments are liens against
the benefited property, an allowance for uncollectible amounts is not deemed necessary.
Substantially all assessments are payable over a period of 10 to 20 years. Assessments bear
interest from 5.2 to 9.4 percent. At June 30, 2020, the portion of the assessments receivable
balance that represents delinquent accounts is insignificant.
84
City of Tigard, Oregon
Notes to Basic Financial Statements
5. Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2020 was as
follows:
Balances Balances
Governmental activities June 30,2019 Additions Deletions Transfers June 30,2020
Non-depreciable:
Land $ 26,380,089 $ - $ - $ - $ 26,380,089
Construction in progress 6,140,084 7,334,611 - (5,040,716) 8,433,979
Total non-depreciable 32,520,173 7,334,611 - (5,040,716) 34,814,068
Depreciable:
Building and improvements 23,544,033 15,000 - - 23,559,033
Land improvements 15,619,051 8,321 - 2,502,769 18,130,141
Machinery and equipment 2,820,306 114,956 (117,253) - 2,818,009
Autos and trucks 3,445,109 503,567 (244,930) - 3,703,746
Office equipment 4,446,346 81,975 - - 4,528,321
Infrastructure 257,974,730 201,203 - 2,537,947 260,713,880
Total depreciable 307,849,575 925,022 (362,183) 5,040,716 313,453,130
Accumulated depreciation:
Building and improvements (10,319,747) (650,517) - - (10,970,264)
Land improvements (8,015,010) (499,678) - - (8,514,688)
Machinery and equipment (2,540,766) (156,983) 117,253 - (2,580,496)
Autos and trucks (2,219,752) (361,438) 185,001 - (2,396,189)
Office equipment (2,354,022) (425,871) - - (2,779,893)
Infrastructure (83,371,157) (3,527,548) - - (86,898,705)
Total accumulated depreciation (108,820,454) (5,622,035) 302,254 - (114,140,235)
Net depreciable assets 199,029,121 (4,697,013) (59,929) 5,040,716 199,312,895
Governmental activities capital
assets, net $231,549,294 $2,637,598 $ (59,929) $ - $234,126,963
Depreciation expense for governmental activities is charged to functions as follows:
Community services $ 313,262
Public works 5,101,928
Community development 7,306
Policy and administration 199,262
Total depreciation for governmental activities $ 5,622,035
85
City of Tigard, Oregon
Notes to Basic Financial Statements
Capital assets activity for business-type activities for the year ended June 30, 2020, was as
follows:
Balances Balances
Business-type activities June 30,2019 Additions Deletions Transfers June 30,2020
Non-depreciable:
Land $ 11,975,910 $ - $ - $ - $ 11,975,910
Construction in progress 1,689,824 2,379,998 - (1,071,195) 2,998,627
Total non-depreciable 13,665,734 2,379,998 - (1,071,195) 14,974,537
Depreciable:
Building and improvements 77,323,567 - - - 77,323,567
Land Improvements 7,505,761 - - - 7,505,761
Sewer system 31,878,938 - - - 31,878,938
Stormwater system 22,156,873 80,188 - 594,762 22,831,823
Water system 148,084,530 7,909 - 476,433 148,568,872
Equipment 3,978,287 31,148 - - 4,009,435
Autos and trucks 2,330,136 230,997 (151,366) - 2,409,767
Total depreciable 293,258,092 350,242 (151,366) 1,071,195 294,528,163
Accumulated depreciation:
Building and improvements (2,488,745) (1,898,193) - - (4,386,938)
Sewer system (13,227,345) (745,777) - - (13,973,122)
Stormwater system (9,782,615) (567,247) - - (10,349,862)
Water system (34,996,831) (3,222,494) - - (38,219,325)
Equipment (1,932,268) (215,282) - - (2,147,550)
Autos and trucks (1,755,204) (199,570) 151,366 - (1,803,408)
Total accumulated depreciation (64,183,008) (6,848,563) 151,366 - (70,880,205)
Net depreciable assets 229,075,084 (6,498,321) - 1,071,195 223,647,958
Business-type activities capital
assets, net $242,740,818 $ (4,118,323) $ - $ - $238,622,495
Depreciation expense for business-type activities is charged to activities as follows:
Sanitary sewer $ 887,463
Stormwater 687,711
Water 5,273,389
Total depreciation for business-type activities $ 6,848,563
86
City of Tigard, Oregon
Notes to Basic Financial Statements
6. Long-term Debt and Other Debt
Governmental Activities
Direct Borrowings and Placements
Bank Loan Payable
In fiscal year 2014-2015 the city entered into a financing agreement with a bank in the amount
of $1,300,000 at an interest rate of 3.00 percent. The loan is for urban renewal projects within
the City Center Urban Renewal Area (CCDA). In connection with the financing agreement,
CCDA and the city executed an intergovernmental agreement (IGA) for CCDA to be obligated
for the financing payments on the loan. The IGA constitutes indebtedness of the agency in the
amount of the financing or $1,300,000. Pursuant to ORS 287A.310, the agency pledges the tax
increment revenues to pay the financing payments or debt service. The outstanding loan
carries an Event of Default clause which allows the lender to exercise any remedy available at
law or in equity, with the exception of acceleration. As of June 30, 2020, the bank loan had
been paid off.
General Obligation Bonds and Full Faith and Credit Bonds
Transportation Bonds: In fiscal year 2009-2010 the city issued $7,250,000 of full faith and
credit Build America Bonds. The bonds were issued to fund specific street and highway
improvements. Interest rate on the bonds is set at 4.35 percent. The outstanding bond carry
an Events of Default and Remedies clause which permits the Bank of America to increase the
interest rate by three percent above the stated rate of the bonds until such time that the
default is remedied. At June 30, 2020 the bonds had been paid off.
Local Improvement District Bonds
In fiscal year 2001-2002 the city issued Local Improvement District (LID) bonds in the amount
of$1,307,969 for improvement on 69th Avenue. Interest rate on the LID bonds is 7.25 percent;
payable first from assessments to benefited properties and second, from the general credit of
the city. The LID bonds had been paid off at June 30, 2020.
TCDA 2019 Full Faith and Credit Bonds
In fiscal year 20019-2020 the city issued $1,896,000 in Series 2019A Tax-Exempt bonds, and
$4,033,000 Series 2019B Federally Taxable bonds. The bonds were issued to fund Urban
Renewal projects within the CCDA. In connection with the financing agreement, CCDA and the
city executed an intergovernmental agreement (IGA) for CCDA to be obligated for the debt
service payments on the bonds. The IGA constitutes indebtedness of the agency in the amount
of the financing or $5,929,000. Pursuant to ORS 287A.310, the agency pledges the tax
increment revenues to pay the financing payments or debt service. The outstanding bonds
carry an Event of Default clause which allows the lender to exercise any remedy available at
law or in equity, with the exception of acceleration. At June 30, 2020 the outstanding balance
on the bonds was $1,896,000 for the Series 2019A and $4,033,000 for the Series 2019B.
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City of Tigard, Oregon
Notes to Basic Financial Statements
Future maturities of bond principal and interest on the bonds are as follows:
Total Debt Series 2019A Series 2011A
Year Service Requirement Issued: August 29, 2019 Issued:August 29, 2019
Ending Total Total 2.36% 2.99%
June 30, Principal Interest Principal Interest Principal Interest
2021 $ 241,000 $ 165,333 $ 80,000 $ 44,746 $ 161,000 $ 120,587
2022 248,000 158,631 82,000 42,858 166,000 115,773
2023 254,000 151,731 84,000 40,922 170,000 110,809
2024 262,000 144,666 86,000 38,940 176,000 105,726
2025 269,000 137,374 88,000 36,910 181,000 100,464
2026-2030 1,461,000 570,267 473,000 152,384 988,000 417,883
2031-2034 3,194,000 302,668 1,003,000 80,123 2,191,000 222,545
$ 5,929,000 $1,630,670 $1,896,000 $ 436,883 $ 4,033,000 $ 1,193,787
2020 GO Refunding Bonds
In fiscal year 2019-2020 the city issued $5,981,000 of full faith and credit General Obligation
Refunding Bonds. These bonds were used to partially refund the 2011A Series Parks GO Bonds.
The 2020 GO Refunding Bonds will be repaid over seven years with an interest rate of 1.34
percent. The outstanding bonds carry an Event of Default clause which allows Chase Bank to
exercise any remedy available at law or in equity, with the exception of acceleration. Future
maturities of bond principal and interest on the GO Refunding Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2021 $ 339,000 $ 87,492 $ 426,492
2022 441,000 75,603 516,603
2023 549,000 69,693 618,693
2024 1,561,000 62,337 1,623,337
2025 1,684,000 41,419 1,725,419
2026 1,407,000 18,854 1,425,854
$ 5,981,000 $ 355,398 $ 6,336,398
Other Debt
General Obligation Bonds and Full Faith and Credit Bonds
Library Bonds: In fiscal year 2010-2011 the city issued $8,655,000 of general obligation bonds,
series 2011B, for a current refunding of bonds originally issued in 2002 to build a new library.
Interest rates on the new bonds range from 3.0 percent to 4.0 percent on specific maturities.
At June 30, 2020 the outstanding balance on the 2011B bonds was $2,550,000.
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City of Tigard, Oregon
Notes to Basic Financial Statements
Future maturities of bond principal and interest on the Library Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2021 $ 815,000 $ 85,700 $ 900,700
2022 850,000 52,400 902,400
2023 885,000 17,700 902,700
$ 2,550,000 $ 155,800 $ 2,705,800
Parks Bonds: In fiscal year 2010-2011 the city issued $17,000,000 of general obligation bonds,
series 2011A at a premium of $297,213. The proceeds of the bonds were issued to acquire
open spaces, protect and improve parklands. At least 80 percent of the bond proceeds went
towards land acquisition for open spaces, parks or trail corridors with up to 20 percent
towards improvements and development of park land. Interest rates range from 3.0 percent to
4.75 percent on specific maturities. During fiscal year 2019-2020 these bonds were partially
defeasance. The outstanding bonds carry a Default and Remedies clause which allows owners
of ten percent or more of the principal amount of the bonds then outstanding to exercise any
remedy available at law or in equity, with the exception of acceleration. At June 30, 2020, the
outstanding balance on the bonds was $5,380,000 and the balance of the unamortized
premium was $30,531. Future maturities of bond principal and interest on the Parks Bonds are
as follows:
Year Ending
June 30, Principal Interest Total
2021 $ 810,000 $ 220,050 $ 1,030,050
2022 845,000 187,650 1,032,650
2023 875,000 153,850 1,028,850
2024 910,000 118,850 1,028,850
2025 950,000 82,450 1,032,450
2026 990,000 42,075 1,032,075
$ 5,380,000 $ 804,925 $ 6,184,925
Premium 30,531
Total $ 5,410,531
Business-type Activities
Direct Borrowings and Placements
Note Payable
In fiscal year 2009-2010 the city was awarded $4,796,000 in federal funds under the American
Recovery and Reinvestment Act (ARRA). These funds were distributed to the city as a loan,
89
City of Tigard, Oregon
Notes to Basic Financial Statements
with 50 percent constituting an ARRA Forgivable Loan and 50 percent a low-interest loan
under the Safe Drinking Water Revolving Loan Fund program. These ARRA funds were used to
develop a city water reservoir. In fiscal year 2011-2012 the city drew down the funds that are
considered the loan portion. The interest rate on the note payable is 3.0 percent.
Within the note agreement the state, in the event of default, may pursue any or all the
following remedies or any other remedies available at law or in equity:
• termination of the loan agreement
• termination of the state's obligations to make the loan or any disbursement,
• repayment of the loan due upon demand,
• payment of interest earned by the city on the loan proceeds due upon demand,
• acceleration of the loan,
• declaration of the city's ineligibility to receive future awards, and
• the withholding pursuant to ORS 285A.213(6) and OAR 123-049-0040 of other state
funds.
At June 30, 2020, the balance on the note payable was $1,585,637. Future debt service
requirements are as follows:
Year Ending
June 30, Principal Interest Total
2021 $ 113,614 $ 47,569 $ 161,183
2022 117,022 44,161 161,183
2023 120,533 40,650 161,183
2024 124,149 37,034 161,183
2025 127,874 33,310 161,184
2026-2030 699,266 106,650 805,916
2031-2032 283,179 12,410 295,589
Total $ 1,585,637 $ 321,784 $ 1,907,421
Other Debt
Water Project Financing
In fiscal year 2010-2011 the City of Tigard's City Council authorized up to $160 million in bonds
to help finance a joint water supply project with the City of Lake Oswego to provide Tigard a
share of a local water source. The arrangement with Lake Oswego to share a water system is
referred to as the Lake Oswego/Tigard Water Partnership project.
In fiscal year 2011-2012 the city issued $97,720,000 of water revenue bonds to be used to fund
capital projects for the water system in connection with the Lake Oswego/Tigard Water
Partnership project. The bonds were issued at a premium of $8,196,325 with interest rates
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City of Tigard, Oregon
Notes to Basic Financial Statements
from 3.0 percent to 5.0 percent. At June 30, 2020, the balance of the 2012 water revenue
bonds was $89,800,000 and the balance of the unamortized premium was $4,744,723.
In fiscal year 2014-2015 the city issued $30,810,000 of water revenue bonds with interest rates
from 3.0 percent to 5.0 percent. The bonds were issued at a premium of $4,449,380. These
bonds are the second of two borrowings by Tigard to help finance the joint water supply
project with the City of Lake Oswego (Lake Oswego/Tigard Water Partnership project). At June
30, 2020, the balance of the 2015 water revenue bonds was $30,140,000 and the balance of
the unamortized premium was $3,569,921.
Net water system revenues and system development charges for the Water System are
pledged to the payment of principal of and interest on the revenue bonds. Net system
revenues for fiscal year 2020 were $13,787,253 as compared to the total debt service of
$8,231,850. The computation of water revenue bonds debt coverage is as follows:
Gross revenues $ 22,607,832
System Development Charges (SDC) related:
SDC Fund interest earnings 351,524
Reimbursement fee receipts 1,258,967
Improvement fee receipts 1,600,366
Total SDC-related 3,210,857
Operating expense:
Salaries and wages 1,172,511
Contracted services 704,045
Water purchases 1,685,705
General, admin and other 5,258,318
Total operating expenses 8,820,579
Net revenues (including SDCs) 16,998,110
Net revenues (excluding SDCs) $ 13,787,253
Debt service - first lien bonds:
2012 bonds $ 6,563,050
2015 bonds 1,668,800
Total debt service $ 8,231,850
Debt service coverage - first lien bonds
(excluding system development charges) 1.67
Interest rates on the bonds range from 3 percent to 5 percent on specific maturities. The
outstanding bonds carry a Default and Remedies clause which allows owners to exercise any
remedy available at law or in equity, with the exception of acceleration.
91
City of Tigard, Oregon
Notes to Basic Financial Statements
Future maturities of bond principal and premium and interest on the revenue bonds are as
follows:
Year Ending
June 30, Principal Interest Total
2021 $ 2,370,000 $ 5,861,850 $ 8,231,850
2022 2,465,000 5,765,150 8,230,150
2023 2,565,000 5,664,550 8,229,550
2024 2,685,000 5,547,175 8,232,175
2025 2,820,000 5,411,675 8,231,675
2026-2030 16,385,000 24,762,725 41,147,725
2031-2035 21,005,000 20,138,925 41,143,925
2036-2040 26,980,000 14,173,750 41,153,750
2041-2045 34,635,000 6,509,875 41,144,875
2046 8,030,000 200,750 8,230,750
119,940,000 $ 94,036,425 $ 213,976,425
Premium 8,314,644
Total $ 128,254,644
Advanced Refunding of Debt
On April 28, 2020 the city issued $5,981,000 of full faith and credit General Obligation
Refunding Bonds and were used to defeasance part of the 2011A Series Parks GO Bonds. As
such the proceeds of refunding issues were placed in an irrevocable trust to provide for future
debt service payments on the retired bonds. Accordingly, the escrow account assets and the
liability for the defeasance bonds are not included in the city's financial statements. The
refunding was undertaken to reduce total debt service payments by $1,730,873 over five years
in an economic gain of$1,281,840.
92
City of Tigard, Oregon
Notes to Basic Financial Statements
Long-term debt activity, including compensated absences, for the year ended June 30, 2020
was as follows:
Balances June Balances June Due in one
30,2019 Additions Retirements 30,2020 year
Governmental activities
Direct borrowings and placements
Bank loan payable $ 780,000 $ - $ (780,000) $ - $ -
Bonds payable 825,000 5,981,000 (825,000) 5,981,000 339,000
Bonds payable (TCDA) - 5,929,000 - 5,929,000 241,000
Special assessment debt 28,419 - (28,419) - -
Total direct borrowings and
placements 1,633,419 11,910,000 (1,633,419) 11,910,000 580,000
Other debt
Bonds payable 15,140,000 - (7,210,000) 7,930,000 1,625,000
Total governmental debt 16,773,419 11,910,000 (8,843,419) 19,840,000 2,205,000
Premium on bonds 129,594 - (99,063) 30,531 8,443
Other long-term liabilities
Compensated absences 1,269,063 2,061,557 (1,864,496) 1,466,124 1,407,478
Governmental activities $ 18,172,076 $13,971,557 $(10,806,978) $ 21,336,655 $3,620,921
Business-type activities
Direct borrowings and placements
Note payable $ 1,695,942 $ - $ (110,305) $ 1,585,637 $ 113,614
Other debt
Bonds payable 122,215,000 - (2,275,000) 119,940,000 2,370,000
Total business-type debt 123,910,942 - (2,385,305) 121,525,637 2,483,614
Premium on bonds 8,840,590 - (525,946) 8,314,644 516,161
Other long-term liabilities
Compensated absences 108,685 205,287 (184,795) 129,177 124,940
Business-type activities $ 132,860,217 $ 205,287 $ (3,096,046) $ 129,969,458 $3,124,715
Expenditures for liquidating other long-term liabilities, including compensated absences and
pension liabilities, are recorded in the General, various nonmajor Special Revenue, Enterprise,
and Internal Service funds.
7. Interfund Receivables, Payables and Transfers
Interfund loan transactions between funds are recorded as "advances to" and "advances
from" other funds. Interfund loans represent interim financing from the General Fund and the
93
City of Tigard, Oregon
Notes to Basic Financial Statements
Sanitary Sewer fund to a capital project fund for various urban renewal development projects.
Repayment of these transactions occurs in years subsequent to year-end.
The net effect of interfund loans is reported on the Statement of Net Position as Internal
Balances. The composition of interfund loans and the related elimination as of June 30, 2020
are as follows:
Net
Receivable Fund Payable Fund Amount Elimination Balance
General Fund Nonmajor governmental fund $ 883,981 $ (883,981) $ -
Sanitary Sewer Fund Nonmajor governmental fund 102,320 - 102,320
$ 986,301 $ (883,981) $ 102,320
Future maturities on the interfund loans are as follows:
Interfund Loans Elimination Net Balance
Year Ending
June 30, Principal Interest Principal Interest Principal Interest
2021 $ - $ 8,972 $ - $ (8,460) $ - $ 512
2022 - 9,428 - (8,916) - 512
2023 - 9,428 - (8,916) - 512
2024 - 9,428 - (8,916) - 512
2025 13,926 9,428 (3,922) (8,916) 10,004 512
2026-2030 348,832 43,426 (298,058) (41,623) 50,774 1,803
2031-2035 471,829 28,919 (430,287) (28,399) 41,542 520
2036-2040 146,948 9,286 (146,948) (9,286) - -
2041 4,766 48 (4,766) (48) - -
$ 986,301 $ 128,363 $ (883,981) $ (123,480) $ 102,320 $ 4,883
94
City of Tigard, Oregon
Notes to Basic Financial Statements
Transfers for fiscal year ended June 30, 2020 are as follows:
Transfer To Transfer From Amount Purpose
General Nonmajor Governmental $ 258,181 $ 258,181 Unrestricted portion of the city's transient lodging tax
Nonmajor
Governmental General 2,250,833 Fund park and various other operations
Fund parks,transportation and various other capital
Nonmajor Governmental 3,875,654 projects
Stormwater 956 Fund stormwater component of parks capital project
Fund water component of transportation capital
Water 70 project
6,127,513
Sanitary Sewer Stormwater 17,641 17,641 Fund sewer component of stormwater project
Stormwater Nonmajor Governmental 21,000 Fund street component of stormwater project
Sanitary Sewer 468,093 Fund stormwater component of sewer project
489,093
Funding of central services, public works
Internal Service General 120,316 administration and engineering
Nonmajor Governmental 517,941 Capital project funding contracting and accounting
Sanitary Sewer 3,057 Funding of public works engineering
Stormwater 41,581 Funding of public works engineering
Water 78,260 Funding of public works engineering
761,155
$ 7,653,583
Reconciliation: Transferred to governmental funds from:
Sewer Fund $ 3,057
Stormwater Fund 42,537
Water Fund 78,330
Transferred from governmental funds to enterprise funds:
From Nonmajor funds to Stormwater Fund (21,000)
Total transfers per Statement of Activities $ 102,924
These transfers have been eliminated in the government-wide statement of activities other
than the net effect between governmental activities and business-type activities.
8. Post-Employment Benefits Other than Pensions (OPEB)
The other post-employment benefits (OPEB) for the city combines two separate plans. The city
provides an implicit rate subsidy for retiree health insurance premiums, and a contribution to
the State of Oregon's PERS cost-sharing multiple-employer defined health insurance benefit
plan.
Financial Statement Presentation
The city's two OPEB plans are presented in the aggregate on the Statement of Net Position.
95
City of Tigard, Oregon
Notes to Basic Financial Statements
The amounts on the financial statements relate to the plans as follows:
Implicit Rate PERS RHIA Total OPEB
Subsidy Plan Plan on Financials
Net OPEB Asset $ - $117,368 $ 117,368
Deferred Outflows of Resources
Differences between expected and actual experience 11,489 - 11,489
Change in proportionate share - 296 296
Change in Assumptions 40,896 - 40,896
Contributions After the Measurement Date 51,581 2,463 54,044
Total Deferred Outflows of Resources 103,966 2,759 106,725
Total OPEB Liability 1,416,691 - 1,416,691
Deferred Inflows of Resources
Differences between expected and actual experience - 15,477 15,477
Change in Proportionate Share - 1,868 1,868
Change in Assumptions 281,233 122 281,355
Difference in Earnings - 7,244 7,244
Total Deferred Inflows of Resources 281,233 24,711 305,944
OPEB Expense (Income) 121,358 (16,230) 105,128
(Included in program expenses on Statement of Activities)
Implicit Rate Subsidy
Plan Description
The city's single-employer defined benefit postemployment healthcare plan is administered by
Citycounty Insurance Services of Oregon (CIS). Benefit provisions are established through
negotiations between the city and representatives of collective bargaining units or through
resolutions passed by city council. No assets are accumulated in a trust that meet the criteria
in paragraph 4 of Statement 75.
The city's postemployment healthcare plan administrator issues a publicly available financial
report that includes financial statements and required supplementary information for CIS. This
report may be obtained on their website at www.cisoregon.org/About/TrustDocs.
Benefits Provided
The plan provides eligible retirees and their dependents under age 65 the same health care
coverage at the same premium rates as offered to active employees. The retiree is
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City of Tigard, Oregon
Notes to Basic Financial Statements
responsible for the premiums. As of the valuation date of July 1, 2018, the following
employees were covered by the benefit terms:
Inactive employees or beneficiaries receiving benefits 6
Active employees 287
293
Total OPEB Liability, OPEB Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to OPEB
The city's total OPEB liability of $1,416,691 was measured as of June 30, 2020, and was
determined by an actuarial valuation as of July 1, 2018.
For the fiscal year ended June 30, 2020, the city recognized OPEB expense from this plan of
$121,358. At June 30, 2020, the city reported deferred outflows of resources and deferred
inflows of resources related to this OPEB plan from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience $ 11,489 $ -
Changes of assumptions 40,896 (281,233)
Contributions subsequent to the measurement date 51,581 -
Total $ 103,966 $ (281,233)
Deferred outflows of resources related to OPEB of $51,581 resulting from the city's
contributions subsequent to the measurement date will be recognized as a reduction of the
total OPEB liability in the year ended June 30, 2021. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Year ended June 30: Annual Recognition
2021 $ (39,924)
2022 (39,924)
2023 (39,924)
2024 (39,924)
2025 (38,704)
Thereafter (30,448)
$ (228,848)
97
City of Tigard, Oregon
Notes to Basic Financial Statements
Actuarial Assumptions and Other Inputs
The total OPEB liability in the July 1, 2018 valuation was determined using the following
actuarial assumptions and other inputs, applied to all periods included in the measurement,
unless otherwise specified:
Actuarial cost method Entry Age Normal
Inflation 2.5 percent
Salary increases 3.5 percent
Healthy mortality RP-2014 healthy annuitant, sex distinct mortality tables blended 50/50
blue collar and white collar, set back one year for males. Mortality is
projected on a generational basis using the Unisex Social Security Data
Scale.
Discount rate 3.50 percent (change from 3.87 percent in previous measurement period)
Healthcare cost trend rate Medical and vision: 7.00 percent per year, decreasing to 4.75 percent
Dental: 4.5 percent per year
The discount rate was based on Bond Buyer 20-Year General Obligation Bond Index.
Changes in the Total OPEB Liability
Total OPEB
Liability
Balance as of June 30, 2019 $ 1,268,263
Changes for the year:
Service cost 109,116
Interest on total OPEB liability 52,167
Effect of assumptions changes or inputs 46,498
Benefit payments (59,353)
Balance as of June 30, 2020 $ 1,416,691
Changes in assumptions is the result of the change in the discount rate from 3.87 percent to
3.50 percent.
Sensitivity of the Total OPEB Liability
The following presents the city's total OPEB liability, as well as what the liability would be if
it were calculated using a discount rate that is 1-percentage-point lower (2.50 percent) or 1-
percentage-point higher (4.60 percent) than the current discount rate. A similar sensitivity
analysis is then presented for changes in the healthcare trend assumption.
98
City of Tigard, Oregon
Notes to Basic Financial Statements
Discount Rate:
1% Decrease Current Discount 1% Increase
(2.50%) Rate (3.50%) (4.50%)
Total OPEB Liability $ 1,551,116 $ 1,416,691 $ 1,292,793
Healthcare Cost Trend:
1% Decrease Current Healthcare
(6.00) Trend Rate (7.00) 1% Increase (8.00)
Total OPEB Liability $ 1,240,618 $ 1,416,691 $ 1,625,093
PERS Retirement Health Insurance Account
Plan Description
As a member of Oregon Public Employees Retirement System (OPERS) the city contributes to
the Retirement Health Insurance Account (RHIA) for each of its eligible employees. RHIA is a
cost-sharing multiple-employer defined benefit other postemployment benefit plan
administered by OPERS. RHIA pays a monthly contribution toward the cost of Medicare
companion health insurance premiums of eligible retirees. Oregon Revised Statute (ORS)
238.420 established this trust fund. Authority to establish and amend the benefit provisions of
RHIA reside with the Oregon Legislature. The plan is closed to new entrants after August 29,
2003. OPERS issues a publicly available financial report that includes financial statements and
required supplementary information. OPERS produces an independently audited CAFR which
can be found at:
http://www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx
Funding Policy
Because RHIA was created by enabling legislation (ORS 238.420), contribution requirements of
the plan members and the participating employers were established and may be amended
only by the Oregon Legislature. ORS require that an amount equal to $60 or the total monthly
cost of Medicare companion health insurance premiums coverage, whichever is less, shall be
paid from the Retirement Health Insurance Account established by the employer, and any
monthly cost in excess of $60 shall be paid by the eligible retired member in the manner
provided in ORS 238.410. To be eligible to receive this monthly payment toward the premium
cost the member must: (1) have eight years or more of qualifying service in OPERS at the time
of retirement or receive a disability allowance as if the member had eight years or more of
creditable service in OPERS, (2) receive both Medicare Parts A and B coverage, and (3) enroll in
a OPERS-sponsored health plan. An eligible surviving spouse or dependent of a deceased PERS
retiree may receive the subsidy if he or she (1) is receiving a retirement benefit or allowance
from PERS or (2) was insured at the time the member died and the member retired before
May 1, 1991.
Contributions
PERS funding policy provides for employer contributions at actuarially determined rates.
These contributions, expressed as a percentage of covered payroll, are intended to accumulate
99
City of Tigard, Oregon
Notes to Basic Financial Statements
sufficient assets to pay benefits when due. Employer contribution rates for the period were
based on the December 31, 2017 actuarial valuation. The rates based on a percentage of
payroll, first became effective July 1, 2018. The city's contribution rates for the period were
0.50% for Tier One/Tier Two members, and 0.43% for OPSRP members. The city's total
contributions for the year ended June 30, 2020 was $2,463.
OPEB Assets, Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to OPEB
At June 30, 2020, the city reported an asset of $117,368 for its proportionate share of the
OPERS net OPEB asset. The net OPEB asset was measured as of June 30, 2019, and the total
OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation as
of December 31, 2017 rolled forward to June 30, 2019. The city's proportion of the net OPEB
asset was based on the city's contributions to the RHIA program during the measurement
period relative to contributions from all participating employers. At June 30, 2019, the city's
proportionate share was 0.0607%, which is an increase from its proportion of 0.0579% as of
June 30, 2018.
For the year ended June 30, 2020, the city recognized OPEB income from this plan of $16,230.
At June 30, 2020, the city reported deferred outflows of resources and deferred inflows of
resources related to this OPEB plan from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience $ - $ 15,477
Change of assumptions - 122
Net difference between projected and actual earnings - 7,244
Changes in proportionate share 295 1,868
Contributions subsequent to the measurement date 2,463 -
Tota I $ 2,758 $ 24,711
Deferred outflows of resources related to OPEB of $2,463 resulting from the city's
contributions subsequent to the measurement date will be recognized as either a reduction of
the net OPEB liability or an increase in the net OPEB asset in the year ended June 30, 2021.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized in OPEB expense as follows:
Year ended June 30: Annual Recognition
2021 $ (12,572)
2022 (11,174)
2023 (1,416)
2024 746
$ (24,416)
100
City of Tigard, Oregon
Notes to Basic Financial Statements
Actuarial Methods and Assumptions
The total OPEB liability in the December 31, 2017 actuarial valuation was determined using the
following actuarial methods and assumptions:
Actuarial cost method Entry Age Normal
Amortization method Amortized as a level percentage of payroll as layered bases
over a closed 10-year period
Asset valuation method Market value of assets
Inflation 2.5 percent
Investment rate of return 7.2 percent
Salary increases 3.5 percent
Healthy mortality Healthy retirees and beneficiaries:
RP-2014 Healthy annuitant, sex-distinct, generational with
Unisex, Social Security Data Scale, with collar adjustment and
set-backs as described in the valuation.
Active members:
RP-2014 Employees, sex-distict, generational with Unisex,
Social Security Data Scale, with collar adjustments and set-
backs as described in the valuation.
Disabled retirees:
RP-2014 Disabled retirees, sex-distinct, generational with
Unisex, Social Security Data Scale.
Actuarial valuations of an ongoing plan involve estimates of the value of projected benefits
and assumptions about the probability of events far into the future. Actuarially determined
amounts are subject to continual revision as actual results are compared to past expectations
and new estimates are made about the future. Experience studies are performed as of
December 31 of even numbered years. The methods and assumptions shown above are based
on the 2016 experience study which reviewed experience for the four-year period ending on
December 31, 2016.
Long-Term Expected Rate of Return
To develop an analytical basis for the selection of the long-term expected rate of return
assumption, in July 2015 the PERS Board reviewed long-term assumptions developed by both
Milliman's capital market assumptions team and the Oregon Investment Council's (OIC)
investment advisors. The table below shows Milliman's assumptions for each of the asset
classes in which the plan was invested at that time based on the OIC long-term target asset
101
City of Tigard, Oregon
Notes to Basic Financial Statements
allocation. The OIC's description of each asset class was used to map the target allocation to
the asset classes shown below. Each asset class assumption was based on a consistent set of
underlying assumptions, and includes adjustment for the inflation assumption. These
assumptions are not based on historical returns, but instead are based on a forward-looking
capital market economic model.
Compound
Asset Class Target Annual Return
(Geometric)
Core Fixed Income 8.00% 3.49%
Short-Term Bonds 8.00 3.38
Bank/Leveraged Loans 3.00 5.09
High Yield Bonds 1.00 6.45
Large/Mid Cap US Equities 15.75 6.30
Small Cap US Equities 1.31 6.69
Micro Cap US Equities 1.31 6.80
Developed Foreign Equities 13.13 6.71
Emerging Market Equities 4.13 7.45
Non-US Small Cap Equities 1.88 7.01
Private Equity 17.50 7.82
Real Estate (Property) 10.00 5.51
Real Estate (REITS) 2.50 6.37
Hedge Fund of Funds - Diversified 2.50 4.09
Hedge Fund - Event-driven 0.63 5.86
Timber 1.88 5.62
Farmland 1.88 6.15
Infrastructure 3.75 6.60
Commodities 1.88 3.84
Assumed Inflation - Mean 2.50
Discount Rate
The discount rate used to measure the total OPEB liability was 7.20 percent for the RHIA Plan.
The projection of cash flows used to determine the discount rate assumed that contributions
from plan members and those contributing employers are made at the contractually required
rates, as actuarially determined. Based on those assumptions, the RHIA plan's fiduciary net
position was projected to be available to make all projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return on pension plan
investments for the RHIA Plan was applied to all periods of projected benefit payments to
determine the total OPEB liability.
102
City of Tigard, Oregon
Notes to Basic Financial Statements
Sensitivity of the City's proportionate share of the net OPEB liability (asset) to changes in the
discount rate
The following presents the city's proportionate share of the net OPEB liability (asset)
calculated using the discount rate of 7.20 percent, as well as what the city's proportionate
share of the net OPEB liability (asset) would be if it were calculated using a discount rate that is
1-percentage-point lower (6.20 percent) or 1-percentage-point higher (8.20 percent) than the
current rate:
1% Decrease Current Discount 1% Increase
(6.20%) Rate (7.20%) (8.20%)
Net OPEB Liability (Asset) $ (90,991) $ (117,368) $ (139,844)
OPEB Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the
separately issued OPERS financial report at:
http://www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx
9. Pension Plan
Oregon Public Employees Retirement Systems (OPERS)
Plan Description
City of Tigard Police Officers are provided with pensions through Oregon Public Employees
Retirement System (OPERS); a cost-sharing multiple-employer defined benefit pension plan
that acts as a common investment and administrative agent for government units in the State
of Oregon. Police Officers hired before August 29, 2003 belong to the Tier One/Tier Two
Retirement Benefit Program (established pursuant to ORS Chapter 238), while Officers hired
on or after August 29, 2003 belong to the OPSRP Pension Program (established pursuant to
ORS Chapter 238A). OPERS produces an independently audited CAFR which can be found at:
http://www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx
Benefits Provided
Tier One/Tier Two Retirement Benefit
Pension Benefits. The PERS retirement allowance is payable monthly for life. It may be selected
from 13 retirement benefit options. These options include survivorship benefits and lump-sum
refunds. The basic benefit is based on years of service and final average salary. For city sworn
officers, 2.0 percent is multiplied by the number of years of service and the final average
salary. Benefits may also be calculated under either a formula plus annuity (for members who
were contributing before August 21, 1981) or a money match computation if a greater benefit
results.
103
City of Tigard, Oregon
Notes to Basic Financial Statements
A member is considered vested and will be eligible at a minimum retirement age for a service
retirement allowance if he or she has had contribution in each of five calendar years or has
reached at least 45 years of age before ceasing employment with a participating employer.
Police members are eligible after reaching age 50. Tier One police member benefits are
reduced if retirement occurs prior to age 55 with fewer than 25 years of service. Tier Two
members are eligible for full benefits at age 60. The ORS Chapter 238 Defined Benefit Pension
Plan is closed to new members hired on or after August 29, 2003.
Death Benefits. Upon the death of a non-retired member, the beneficiary receives a lump-sum
refund of the member's account balance (accumulated contributions and interest). In addition,
the beneficiary will receive a lump-sum payment from employer funds equal to the account
balance, provided one or more of the following conditions are met:
• the member was employed by a PERS employer at the time of death,
• the member died within 120 days after termination of OPERS-covered employment,
• the member died as a result of injury sustained while employed in a OPERS-covered
job, or
• the member was on an official leave of absence from a OPERS-covered job at the
time of death.
Disability Benefits. A member with 10 or more years of creditable service who becomes
disabled from other than duty-connected causes may receive a non-duty disability benefit. A
disability resulting from a job-incurred injury or illness qualifies a member for disability benefit
regardless of the length of OPERS-covered service. Upon qualifying for either a non-duty or
duty disability, service time is computed to age 55 for police members when determining the
monthly benefit.
Benefit Changes After Retirement. Members may choose to continue participation in a variable
equities investment account after retiring and may experience annual benefit fluctuations due
to changes in the market value of equity investments. Under ORS 238.360 monthly benefits
are adjusted annually through cost-of-living changes. The COLA is capped at 2.0 percent.
OPSRP Pension Program
Pension Benefits. The OPSRP Pension Program (ORS Chapter 238A) provides benefits to
members hired on or after August 29, 2003. This portion of OPSRP provides a life pension
funded by employer contributions. Benefits are calculated by formula for members who attain
normal retirement age. For police members, 1.8 percent is multiplied by the number of years
of service and the final average salary. Normal retirement age for police members is age 60 or
age 53 with 25 years of retirement credit. To be classified as a police member, the individual
must have been employed continuously as a police member for at least five years immediately
preceding retirement.
A member of the OPSRP Pension Program becomes vested on the earliest of the following
dates: the date the member completes 600 hours of service in each of five calendar years, the
104
City of Tigard, Oregon
Notes to Basic Financial Statements
date the member reaches normal retirement age, and if the pension program is terminated,
the date on which termination becomes effective.
Death Benefits. Upon the death of a non-retired member, the spouse or other person who is
constitutionally required to be treated in the same manner as the spouse, receives for life 50
percent of the pension that would otherwise have been paid to the deceased member.
Disability Benefits. A member who has accrued 10 or more years of retirement credits before
the member becomes disabled or a member who becomes disabled due to job-related injury
shall receive a disability benefit of 45 percent of the member's salary determined as of the last
full month of employment before the disability occurred.
Benefit Changes After Retirement. Under ORS 238A.210 monthly benefits are adjusted
annually through cost-of-living changes. The COLA is capped at 2.0 percent.
OPSRP Individual Account Program (IAP)
Pension Benefits. The IAP member becomes vested on the date the employee account is
established or on the date the rollover account was established. If the employer makes
optional employer contributions for a member, the member becomes vested on the earliest of
the following dates: the date the member completes 600 hours of service in each of five
calendar years, the date the member reaches normal retirement age, the date the IAP is
terminated, the date the active member becomes disabled, or the date the active member
dies.
Upon retirement, a member of the OPSRP IAP may receive the amounts in his or her employee
account, rollover account, and vested employer account as a lump-sum payment or in equal
installments over a 5-, 10-, 15-, 20-year period or an anticipated life span option. Each
distribution option has a $200 minimum distribution limit.
Death Benefits. Upon the death of a non-retired member, the beneficiary receives in a lump
sum the member's account balance, rollover account balance, and vested employer optional
contribution account balance. If a retired member dies before the installment payments are
completed, the beneficiary may receive the remaining installment payments or choose a lump-
sum payment.
Recordkeeping. OPERS contracts with VOYA Financial to maintain IAP participant records.
Contributions. OPERS funding policy provides for monthly employer contributions at actuarially
determined rates. These contributions, expressed as a percentage of covered payroll, are
intended to accumulate sufficient assets to pay benefits when due. Employer contribution
rates for the period were based on the December 31, 2016 actuarial valuation. The rates based
on a percentage of payroll, first became effective July 1, 2017. The rates in effect for the
period were 20.51 percent for Tier One/Tier Two police members and 13.39 percent for OPSRP
Pension Program Police member. The city's total contributions exclusive of the 6 percent "pick-
up" was $1,315,541.
105
City of Tigard, Oregon
Notes to Basic Financial Statements
Covered employees are required to contribute 6 percent of their salary to the Plan, but the
employer is allowed to pay any or all of the employees' contribution in addition to the
required employers' contribution. The city has elected to contribute the 6 percent "pick-up" or
$385,031 of the employees' contribution.
Pension Assets, Liabilities, Pension Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions
At June 30, 2020, the city reported a liability of $12,977,450 for its proportionate share of the
OPERS net pension liability. The net pension liability was measured as of June 30, 2019, and
the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of December 31, 2017 rolled forward to June 30, 2019. The city's
proportion of the net pension liability was based on a projection of the city's long-term share
of contributions to the pension plan relative to the projected contributions of all participating
employers, actuarially determined. At June 30, 2019, the city's proportion of OPERS net
pension liability was 0.07502 percent.
Annual Pension Cost
For the year ended June 30, 2020, the city recognized pension expense of $3,221,344. At June
30, 2020, the city reported deferred outflows or resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Differences between expected and actual experience $ 715,668 $ -
Changes of assumptions 1,760,539 -
Net difference between projected and actual earnings on investments - 367,898
Changes in proportion 196,489 173,885
Differences between employer contributions and proportionate share
of contributions 38,166 255,076
Total (prior to post-MD contributions) 2,710,862 796,859
Contributions subsequent to the MD 1,302,699 -
Total $4,013,561 $796,859
Deferred outflows of resources related to pensions of $1,302,699 resulting from the city's
contributions subsequent to the measurement date will be recognized as either a reduction of
the net pension liability or an increase in the net pension liability in the year ended June 30,
106
City of Tigard, Oregon
Notes to Basic Financial Statements
2021. Other amounts reported as deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Deferred Outflows Deferred Inflows Net Deferred Outflows/Inflows
Amortization Period Amortization Period Amortization Period
FY2020 $ 853,420 FY2020 $ 56,947 FY2020 $ 796,473
FY2021 783,755 FY2021 663,116 FY2021 120,639
FY2022 724,545 FY2022 148,949 FY2022 575,596
FY2023 318,222 FY2023 (81,348) FY2023 399,570
FY2024 30,920 FY2024 9,195 FY2024 21,725
Total $ 2,710,862 Total $ 796,859 Total $1,914,003
Actuarial Methods and Assumptions
The total pension liability in the December 31, 2017 actuarial valuation was determined using
the following actuarial methods and assumptions:
Actuarial Methods and Assumptions
Valuation Date December 31, 2017
Measurement Date June 30, 2019
Experience Study Report 2016. published July 26, 2017
Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:
Inflation Rate 2.50 percent
Long-Term Expected Rate of Return 7.20 percent
Discount Rate 7.20 percent
Proiected Salary Increases 3.50 percent
Cost of Living Adjustments (COLA) Blend of 2.00% COLA and graded COLA (1.25%/0.15%) in
accordance with Moro decision, blend based on service
Health retirees and beneficiaries: RP-2014 Healthy annuitant, sex-
distinct, generational with Unisex, Social Security Data Scale, with
collar adjustments and set-backs as described in the valuation.
Mortality Active Members: RP-2014 Employees, sex-distinct, generational
with Unisex, Social Security Data Scale, with collar adjustments
and set-backs as described in the valuation.
Disabled retirees: RP-2014 Disabled retirees, sex-distinct,
generational with Unisex, Social Security Data Scale.
Actuarial valuations of an ongoing plan involve estimates of the value of projected benefits
and assumptions about the probability of events far into the future. Actuarially determined
amounts are subject to continual revision as actual results are compared to past expectations
107
City of Tigard, Oregon
Notes to Basic Financial Statements
and new estimates are made about the future. Experience studies are performed as of
December 31 of even numbered years. The methods and assumptions shown above are based
on the 2016 experience study which reviewed experience for the four-year period ending on
December 31, 2016.
Long-Term Expected Rate of Return
To develop an analytical basis for the selection of the long-term expected rate of return
assumption, in July 2015 the OPERS Board reviewed long-term assumptions developed by both
Milliman's capital market assumptions team and the Oregon Investment Council's (OIC)
investment advisors. The table below shows Milliman's assumptions for each of the asset
classes in which the plan was invested at that time based on the OIC long-term target asset
allocation. The OIC's description of each asset class was used to map the target allocation to
the asset classes shown below. Each asset class assumption was based on a consistent set of
underlying assumptions, and includes adjustment for the inflation assumption. These
assumptions are not based on historical returns, but instead are based on a forward-looking
capital market economic model.
Compound
Asset Class Target Annual Return
(Geometric)
Core Fixed Income 8.00% 3.49%
Short-Term Bonds 8.00 3.38
Bank/Leveraged Loans 3.00 5.09
High Yield Bonds 1.00 6.45
Large/Mid Cap US Equities 15.75 6.30
Small Cap US Equities 1.31 6.69
Micro Cap US Equities 1.31 6.80
Developed Foreign Equities 13.13 6.71
Emerging Market Equities 4.13 7.41
Non-US Small Cap Equities 1.88 7.01
Private Equity 17.50 7.82
Real Estate (Property) 10.00 5.51
Real Estate (REITS) 2.50 6.37
Hedge Fund of Funds - Diversified 2.50 4.09
Hedge Fund - Event-driven 0.63 5.86
Timber 1.88 5.62
Farmland 1.88 6.15
Infrastructure 3.75 6.60
Commodities 1.88 3.84
Assumed Inflation - Mean 2.50
108
City of Tigard, Oregon
Notes to Basic Financial Statements
Discount Rate
The discount rate used to measure the total pension liability was 7.20 percent for the Defined
Benefit Pension Plan. The projection of cash flows used to determine the discount rate
assumed that contributions from plan members and those contributing employers are made at
the contractually required rates, as actuarially determined. Based on those assumptions, the
pension plan's fiduciary net position was projected to be available to make all projected future
benefit payments of current plan members. Therefore, the long-term expected rate of return
on pension plan investments for the Defined Benefit Pension Plan was applied to all periods of
projected benefit payments to determine the total pension liability.
Sensitivity of the City's proportionate share of net pension liability (asset) to changes in the
discount rate
The following presents the city's proportionate share of the net pension liability (asset)
calculated using the discount rate of 7.20 percent, as well as what the city's proportionate
share of the net pension liability (asset) would be if it were calculated using a discount rate
that is 1-percentage-point lower (6.20 percent) or 1-percentage-point higher (8.20 percent)
than the current rate:
1% Decrease Discount Rate 1% Increase
(6.20%) (7.20%) (8.20%)
City's proportionate share of
the net pension liability $ 20,782,235 $ 12,977,450 $ 6,445,921
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the
separately issued OPERS financial report at:
http://www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx
10. Retirement Plans— Defined Contribution Plan
The city contributes to a retirement plan on behalf of all eligible employees. Contributions are
to Mass Mutual, a defined contribution single employer retirement plan (The Plan) for those
employees not eligible for the defined benefit plan (OPERS). The Plan is a defined contribution
plan created in accordance with Internal Revenue Code Section 401(a). Employees become
eligible to participate in the plans after six months of service and vest immediately. Employees
may withdraw funds upon retirement or termination of employment.
Employees enrolled in The Plan at June 30, 2020:
Classification of eligible employees Enrollment
Represented (SEIU)/Police (non-sworn) employees 125
Management employees 94
Total enrolled employees 219
109
City of Tigard, Oregon
Notes to Basic Financial Statements
Contributions to The Plan range from 10 to 11 percent of gross salary depending on the
employment group for all eligible employees participating in the plans.
The city is required to contribute to these plans under authority of City Council resolution and
the plan documents. Employees may also contribute to these plans. Required and actual
contributions to the plan were $1,682,690 for the year ended June 30, 2020.
Contributions to the plans are made to a fiduciary. All assets and income of the Plan are held in
trust for the exclusive benefit of the participants and their beneficiaries. Since the plans are
administered by the city, the assets, equity and operations of the plans are accounted for in
the General Employees Pension Plan Fund, a pension trust fund. The plans invest in various
money market and equity mutual funds. At June 30, 2020, the total net position of the pension
plan was $31,957,989, which approximates fair value.
Deferred Compensation Plans
The city offers employees a voluntary deferred compensation plan created in accordance with
Internal Revenue Code Section 457 and administered by the city. The Plan is a defined
contribution plan. Amendments to the plan require City Council approval. The Plan is available
to any individual who is an elected official of the city or who is employed by the city after
completing 30 days of service.
Participation in the plan is voluntary. Contributions to fiduciaries that hold the funds in trust
for the plans' participants are made through salary withholdings from participating employees
up to the amounts specified in the code. No contributions are required by the city.
Amounts deferred are not available to employees until termination, retirement, death, or
unforeseeable emergency. All assets and income of the plan are held in trust for the exclusive
benefit of the participants and their beneficiaries. The amounts accumulated under the 457
plan including investments earnings are excluded from the financial statements of the city.
11.Tax Abatements
As of June 30, 2020, the city provides property tax abatements through three programs. An
Enterprise Zone program, a Non-Profit Corporation Low-Income Housing program and a
Vertical Housing Development Zone program.
Enterprise Zone
The city's Enterprise Zone (EZ) is authorized by Oregon Revised Statute (ORS) 285C.050 —
285C.250, the Oregon Enterprise Zone Act (the Act). The city created the Tigard EZ through
Resolution No. 14-51. This Resolution was approved by City Council on October 28, 2014.
The city subsequently expanded the EZ to include a portion of the City of Lake Oswego via
Resolution No. 15-48 on October 27, 2015, and renamed the EZ the Tigard/Lake Oswego
110
City of Tigard, Oregon
Notes to Basic Financial Statements
Enterprise Zone. ORS 285C.255 defines the sunset of all enterprise zone programs,
terminating existing programs as of June 30, 2025.
The City of Tigard elected to add the following additional incentives and requirements to its
program:
• Fast tracking the land use review process.
• Pre-application conference fees, business registration fees, and sign permit fee are
waived by 50 percent.
• City Council may extend the standard exemption by up to two more years if a qualifying
company increases employment by 10 percent each year and new jobs are
compensated (wages plus benefits) at 200 percent of Oregon Minimum Wage.
• A minimum investment of$500,000 is required.
• Total compensation for 75 percent of company's EZ facility jobs (wages plus benefits)
must exceed 200 percent of Oregon minimum wage after one year of employment.
• A company must provide benefits to employees that meet or exceed the national
average of non-mandated benefits for the size of the company, and the Company must
offer sufficient training and advancement opportunities for all employees.
• A procurement plan increasing purchasing with Tigard based companies is required.
• An application fee totaling one tenth of one percent (.001) of the value of the
investment for the qualified property that is proposed in the application. This fee is
capped at $25,000.
• Companies applying for the two year extended abatement must pay a Community
Service Fee. This fee is calculated at a rate of 20 percent of the abated taxes for years
four and five. The fee is paid to the city.
Applications are reviewed by the city and by the county assessor. Review includes a
preauthorization consultation and a review of written application materials. For approved
applications, City Council may adopt a resolution finding that; the business is eligible for the
exemption under the Act, the size of the proposed investment meets requirements, the
employment opportunities provide by the facility or firm and/or the nature of the activities
undertaken by the facility or firm within the EZ will significantly enhance the local economy,
and the activities of the facility or firm will promote the purposes for which the zone was
created and increase employment within the zone.
Taxes are abated via an exemption of assessed value from all applicable tax levies. These
taxes are abated for a period of three tax years, beginning with the first year the property is
placed in service. Applicable tax levies include the permanent rate levies and operating
levies for all taxing districts that include the property. Additionally, any community service
fees received by the city from participating businesses are restricted for use on economic
development activities.
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City of Tigard, Oregon
Notes to Basic Financial Statements
Recipients of the EZ tax abatement make commitments to the city in their application in a
number of areas, including statutory requirements for an increase in full-time employment
of 10 percent, no concurrent job losses in Oregon within 30 miles of the EZ, maintenance of
employment levels during the exemption period, and first-source agreements with local job
training providers.
For the fiscal year ended June 30, 2020, the city's property tax revenues were reduced by an
estimated $22,000 as a result of the EZ program. For the fiscal year ended June 30, 2020,
the Tigard Urban Renewal's property tax revenues were reduced by an estimated $1,300 as
a result of the EZ program.
If necessary, abated taxes can be reassessed for reasons defined in ORS 285C.240. Reasons
for reassessment include; sale of a qualifying business or subject property outside of the EZ,
reduction in business operations and/or closure of a business, failure of a business to meet
statutory or city requirements, and/or if they use the property for ineligible activities. At
disqualification, the County Assessor will assess any previously abated taxes in a subsequent
assessment year, less any amounts that have been paid to the city as a community service
fee.
Non-Profit Low Income Housing Limited Tax Exemption
The city's Non-Profit Low Income Housing Limited Tax Exemption (NPLTE) program is
authorized by ORS 307.540-548. In 1996, the city's NPLTE program was established by
Tigard Municipal Code 3.50, Non-Profit Corporation Low-Income Housing, Ordinance No.
96-34.
The program allows exemption from property taxes for Non-Profit Corporations owning a
low-income housing facility that meet specific criteria. The criteria include:
• The property is owned or being purchased by a corporation that is exempt from income
taxes under section 501(c) (3) or (4) of the Internal Revenue Code as amended before
December 1, 1984.
• Upon liquidation, the assets of the corporation are required to be applied first in
payment of all outstanding obligations, and the balance remaining, in cash and in kind,
to be distributed to corporations exempt from taxation and operated exclusively for
religious, charitable, scientific, literary or educational purposes or to the State of
Oregon.
• The property is occupied by low-income persons.
• The property or portion of the property receiving the exemption, is actually and
exclusively used for the purposes described in section 501(c) (3) or (4) of the Internal
Revenue Code as amended before December 1, 1984.
• The application for exemption has been approved by the City Council.
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City of Tigard, Oregon
Notes to Basic Financial Statements
To qualify for the exemption, the corporation shall file an application for exemption with
the governing body for each assessment year of exemption. The application shall be filed on
or before March 1, of the assessment year for which the exemption is applied for, except
that when the property designated is acquired after March 1 and before July 1, the claim for
that year shall be filed within 30 days after the date of acquisition.
For the fiscal year ended June 30, 2020, the city's property tax revenues were reduced by an
estimated $105,000 as a result of this program. For fiscal year ended June 30, 2020 the
Tigard Urban Renewal's property tax revenues were reduced by an estimated $6,000 as a
result of this program.
Vertical Housing Development Zone
The city's Vertical Housing Development Zone (VHDZ) tax exemption program is authorized
by ORS 285C.450 to 285C.480 and 307.864. This ORS allows municipalities to create special
districts to encourage mixed-use development. In 2014, the city passed Resolution No. 14-
38 establishing this program. VHDZ allows for partial exemption from property taxes for
mixed use multi-story development in core areas of the city. VHDZ encourages
development which supports downtown revitalization. Areas identifies for this program
include Tigard's Town Center and parts of the Tigard Triangle. This exemption allows for a
decrease in total property tax, for new construction, of 20 percent per floor, exemption
applies to new construction on the first four floors of residential development built above a
non-residential ground floor.
Taxes are abated via an exemption of assessed value from applicable tax levies for a period
of 10 successive years, beginning in the year following the year the project was completed
and would have otherwise been added to the tax rolls.
For the fiscal year ended June 30, 2020, the city's property tax revenues were reduced by an
estimated $27,000 as a result of this program. For the fiscal year ended June 30, 2020 the
Tigard Urban Renewal's property tax revenues were reduced by an estimated $2,000 as a
result of this program.
For the fiscal year ended June 30, 2019, the city abated property taxes totaling $155,000
under the three programs. For fiscal year ended June 30, 2019 the Tigard Urban Renewal's
abated property taxes totaling $9,300 under the three programs.
FY 2019 Taxes Abated
Tigard Urban
Tax Abatement Program City of Tigard Renewal
Enterprise Zone $ 23,000 $ 1,300
Non-Profit Low Income Housing Limited Tax Exemption 105,000 6,000
Vertical Housing Development Zone 27,000 2,000
Total $ 155,000 $ 9,300
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City of Tigard, Oregon
Notes to Basic Financial Statements
12.Transactions with Clean Water Services of Washington County
The city collects charges for treatment of city sewage and stormwater on behalf of the Clean
Water Services of Washington County and remits all collections to Clean Water Services,
except for 20.56 percent of sewer service charges collected, 3.98 percent of sewer connection
charges collected and 75 percent of stormwater service charges collected, in accordance with
an agreement between the city and Clean Water Services. During fiscal year 2020 the city paid
$15,186,452 to Clean Water Services under this agreement.
The net amount retained by the city is reported as revenue in the enterprise funds in the
proprietary funds Statement of Revenues, Expenses and Changes in Fund Net Position.
Revenues are reported net because the city acts in a fiduciary capacity on behalf of Clean
Water Services.
13. Risk Management
The city is exposed to various risks of loss related to torts; employment liability; theft of,
damage to, and destruction of assets; errors and omissions; injuries to employees and others;
and natural disasters. The city is insured through a member trust consisting of cities and
counties in Oregon and purchases public entity insurance through the trust to deal with
liability risks with nominal deductibles. Employee injuries are insured through SAIF, the State
Accident Insurance Fund. Settled claims resulting from these risks have not exceeded public
entity insurance coverage in any of the past three fiscal years and there has not been any
material change to insurance coverages from the previous year.
14.Joint Venture
Willamette Intake Facilities Commission
Willamette Intake Facilities Commission (the Commission or WIF) was organized in April 2018
under Oregon Revised Statute (ORS) 190 and was established by an agreement between the
cities of Wilsonville, Hillsboro, Tigard, Beaverton, Sherwood, and Tualatin Valley Water District.
The Commission is governed by a six-member board, with one representative appointed by
each member jurisdiction. The purpose of the Commission is to provide for the ownership,
management, and operation of the Willamette intake facilities which are used to withdraw
and transmit water to the parties. The Commission is managed by Tualatin Valley Water
District.
Expenses are allocated on a unit basis by the Commission. Each joint venturer's apportioned
share of the general administration expenses is determined by the following formula: 25
percent of the administrative costs for the fiscal year is divided evenly among the
Commission's membership; the remainder is divided among the Commission membership
according to their percentage share of the capacity ownership in the intake facilities.
114
City of Tigard, Oregon
Notes to Basic Financial Statements
Operations, maintenance, and repair expenses that are a result of use of the facilities are
allocated based on each party's proportionate use of the WIF. Operations, maintenance, and
repair expenses unrelated to usage will be allocated based on each party's proportionate
ownership of the WIF.
The following percentages were in effect at June 30, 2020:
Tualatin Valley Water District 39.40
City of Wilsonville 16.67
City of Sherwood 6.47
City of Tigard 10.00
City of Hillsboro 24.13
City of Beaverton 3.33
The investment in joint venture is recorded at cost in the Water Fund, and the city's share of
the annual net income or loss is used to adjust the ending balance of the city's equity interest
in the joint venture. Financial statements for the WIF may be obtained from Tualatin Valley
Water District, Finance Department at 1850 SW 170th Avenue, Beaverton, Oregon 97003. At
June 30, 2020 the city's investment in the WIF was:
Investment in joint venture at June 30, 2019 $ 1,005,705
Contributions 65,190
Loss for the year (10,423)
Investment in joint venture at June 30, 2020 $ 1,060,472
15. Lake Oswego/Tigard Water Partnership
The city has an intergovernmental agreement (IGA) with the City of Lake Oswego for the Lake
Oswego/Tigard Water Partnership (Partnership). The city's investment in the Partnership is
estimated at approximately $170 million. The Partnership built a water system that has the
capacity to produce 38 million gallons of usable water per day (MGD). Tigard's portion is 18 of
the 38 MGD, or 47.37 percent. While the Partnership is still operating under the original
agreement, recently the cities have adopted a Lake Oswego/Tigard Water Partnership
Operations plan.The cities are also discussing a long-term governance agreement.
Assets
Upon completion of the multi-year project Lake Oswego conveyed to Tigard an undivided
proportionate interest of the supply facilities and property. The city then recorded its share of
capital assets in land, land improvements, building and improvements, water system
infrastructure and equipment. Depreciation for the depreciable assets is based on each asset's
respective useful life.
115
City of Tigard, Oregon
Notes to Basic Financial Statements
Debt
As stated in Note 6, the city issued $97.7 million in revenue bonds during fiscal year 2012 to
partially fund the project. The city issued an additional $30.8 million in revenue bonds in fiscal
year 2015 for the continuing water infrastructure needs. As of June 30, 2020, the outstanding
debt amount for the project is $128,254,644.
Operating costs and future capital expense
Operating costs and future capital expenses are based on different criteria for each section of
the system:
Allocation Percentage
Water System Section Fixed Cost Variable Cost
Water treatment plant, pipe
infrastructure, raw water intake facility 47.37% Based on usage
Waluga Resevoir 51.43% Based on usage
Pipeline after Waluga Resevoir, Bonita
pump station 100.00% 100.00%
The monthly operating costs paid to Lake Oswego are based on an annual budget for fixed
costs and projected usage for variable costs. Annually, a true up is completed based on actual
usage. The city exclusively operates the Bonita pump station and therefore does not pay Lake
Oswego for those costs. For the fixed costs associated with the Waluga Reservoir, Tigard's
portion is 1.8 of the 3.5 million gallon capacity, or 51.43 percent. The revenue and expenses
associated with ongoing operations of the system are recorded within water operations.
16. Commitments
The city has entered into two contracts for pavement maintenance and rehabilitation for total
of$537,133, with $579,443 remaining at June 30, 2020. This contract will be completed during
the first half of fiscal year 2021. The city's street maintenance fee is the resource for the
pavement rehabilitation project. The city has a contract for two well rehabilitations for total of
$1,215,655 outstanding at June 30, 2020. This contract will be completed during fiscal year
2022 and will be paid for with water utility and SDC funds. The City Center Urban Renewal
Area has entered into two contracts. One for the Universal Plaza Design and one for the Main
Street Phase 2 Design Improvements, which have $507,292 and $431,000 remaining
outstanding at June 30, 2020, respectively. These projects will be paid for with debt proceeds
and property taxes.
The city has entered into other contracts for various services with commitments at June 30,
2020 of approximately$525,000. These contracts will be funded with existing resources.
116
City of Tigard, Oregon
Notes to Basic Financial Statements
17. Contingent Liabilities
The city is a defendant in various lawsuits. All of these lawsuits are covered by the city's
insurance policies. Although the outcome of these lawsuits is not presently determinable, it is
the opinion of management that resolution of these matters will not have a material adverse
effect on the financial condition of the city.
Claims not covered by the city's insurer would be recognized when it appeared probable that
the loss had been incurred and the amount could be reasonably estimated.
18. Subsequent Event
On November 3, 2020 the city issued $86,575,000 of Water System Revenue Refunding Bonds
and were used to defeasance part of the 2012 Series Water Revenue Bonds. As such the
proceeds of refunding issues were placed in an irrevocable trust to provide for future debt
service payments on the retired bonds. The refunding was undertaken to reduce total debt
service payments by$26,594,833 over twenty-three years in an economic gain of$16,503,405.
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Required Supplementary
Information
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120
CITY OF TIGARD,OREGON
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Taxes $ 17,121,416 $ 17,121,416 $ 16,949,642 $ (171,774)
Licenses and permits 1,196,521 1,196,521 1,234,666 38,145
Intergovernmental revenues 7,347,865 7,360,615 7,334,814 (25,801)
Charges for services 243,702 243,702 302,894 59,192
Fines and forfeitures 1,654,498 1,654,498 534,471 (1,120,027)
Franchise fees 6,254,627 6,254,627 6,365,589 110,962
Interest earnings 500,900 500,900 766,467 265,567
Miscellaneous revenues 56,432 249,570 182,123 (67,447)
Total revenues 34,375,961 34,581,849 33,670,666 (911,183)
EXPENDITURES
Community services 25,916,564 26,523,813 23,595,107 2,928,706
Community development 3,613,352 3,836,092 3,323,661 512,431
Policy and administration 1,070,356 1,092,791 843,032 249,759
Total expenditures 30,600,272 31,452,696 27,761,800 3,690,896
Change in fund balance before
other financing sources(uses) 3,775,689 3,129,153 5,908,866 2,779,713
OTHER FINANCING SOURCES(USES)
Transfer in 292,900 292,900 258,181 (34,719)
Interfund loan (1,000) (1,000) (45,596) (44,596)
Transfer out (2,611,477) (2,671,977) (2,371,150) 300,827
Contingency (1,638,450) (1,130,914) - 1,130,914
Reserve for future expenditures (21,642,148) (21,448,148) - 21,448,148
Total other financing(uses) (25,600,175) (24,959,139) (2,158,565) 22,800,574
Change in fund balance (21,824,486) (21,829,986) 3,750,301 25,580,287
Fund balance-beginning of the year 21,824,486 21,829,986 23,347,315 1,517,329
Fund balance-end of the year $ - $ - 27,097,616 $ 27,097,616
Reconciliation of budgetary fund balance to GAAP basis net position:
Interfund Loan 883,981
Total net position,GAAP basis $ 27,981,597
121
City of Tigard Oregon
Schedule of the City's Proportionate Share of the Net Pension Liability(Asset)
Oregon Public Employees Retirement System
Last Seven Fiscal Years 1,2
2020 2019 2018 2017 2016 2015 2014
City's proportion of the net pension liability
(asset) 0.075025% 0.073322% 0.072960% 0.074719% 0.081488% 0.074022% 0.074022%
City's proportionate share of the net pension
liability(asset) $ 12,977,450 $ 11,107,323 $ 9,835,041 $ 11,216,998 $ 4,678,602 $ (1,677,869) $ 3,777,455
City's covered payroll $ 6,331,572 $ 5,941,342 $ 6,280,408 $ 6,610,002 $ 6,187,208 $ 6,025,900 $ 5,426,379
City's proportionate share of the net pension
liability(asset)as a percentage of its covered
payroll 204.96% 186.95% 156.60% 169.70% 75.62% -27.84% 69.61%
Plan fiduciary net position as a percentage of
the total pension liability 80.23% 82.07% 83.12% 80.53% 91.88% 103.59% 91.97%
110-year trend information required by GASB Statement 68 will be presented prospectively
2 Amounts presented are for the measurement period reported during the fiscal year,which for FY 2020 is July 1,2018-June 30,2019.
NOTES TO SCHEDULE
Changes in Benefit Terms
Senate Bill 822 was enacted during the 2013 Oregon regular legislative session to lower the cap on the cost-of-living adjustment(COLA)from 2 percent to 1.5
percent for 2013,and eliminated the tax remedy benefit for recipients who do not pay Oregon state income taxes because they do not reside in Oregon.
Senate Bill 861 was enacted during the 2013 Oregon special legislative session,further lowering the post-retirement COLA for years beyond 2013 to 1.25%on
the first$60,000 of annual benefit and 0.15%on annual benefits above$60,000. The combined impact of these Senate Bills are reflected in the June 30,2014
total pension liability,resulting in a net pension asset reported by the City for fiscal year 2015.
The Oregon Supreme Court(Court)ruled in Moro v.State of Oregon on April 30,2015 that certain provisions of Senate Bill 822 and Senate Bill 861 were
unconstitutional. The Court ruled that benefits could be modified prospectively,but not retrospectively. As a result,those who retired before the bills were
passed will continue to receive a COLA tied to the Consumer Price Index that normally results in a 2%increase annually. OPERS members who have accrued
benefits before and after the effective dates of the 2013 legislation will have a blended COLA rate when they retire. The impact of the Court's decision is
reflected in the June 30,2015 total pension liability,which contributes to the net pension liability reported by the City for fiscal year 2016.
Change in Assumptions
The PERS Board adopted assumption changes that were used to measure the June 30,2016 total pension liability,which contributes to the net pension liability
reported by the city for fiscal year 2017.The changes include lowering the long-term expected rate of return to 7.50 percent and lowering the assumed inflation
to 2.50 percent.In addition,the healthy mortality assumption was changed to reflect an updated mortality improvement scale for all groups,and assumptions
were updated for merit increases,unused sick leave,and vacation pay.
On July 28,2017,the OPERS Board lowered the assumed earnings rate from 7.50 percent to 7.20 percent.The new assumed earnings rate affected rates on July
1,2018.
122
City of Tigard,Oregon
Schedule of the City's Contributions
Oregon Public Employees Retirement System
Last Seven Fiscal Years 1
2020 2019 2018 2017 2016 2015 2014
Contractually required
contributions $ 1,302,699 $ 1,039,691 $ 937,027 $ 787,306 $ 761,228 $ 782,812 $ 722,108
Contributions in relation to the
contractually required
contribution (1,302,699) (1,039,691) (937,027) (787,306) (761,228) (782,812) (722,108)
Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $
City's covered payroll $ 6,307,694 $ 6,331,572 $ 5,941,342 $6,280,408 $6,610,002 $6,187,208 $6,025,900
Contributions as a percentage
of covered payroll 20.65% 16.42% 15.77% 12.54% 11.52% 12.65% 11.98%
110-year trend information required by GASB Statement 68 will be presented prospectively
NOTES TO SCHEDULE
Actuarial Assumptions and Methods Used to Actuarially Determine Contributions:
Actuarial Valuation December 31,2017 December 31,2016 December 31,2015 December 31,2013 December 31,2011
Effective July 2019-June 2020 July 2018-June 2019 July 2017-June 2018 July 2015-June 2017 July 2013-June 2015
Actuarial cost method: Entry Age Normal Entry Age Normal Entry Age Normal Entry Age Normal Projected Unit Credit
Actuarial valuation method: Market Value Market Value Market Value Market Value Market Value
Actuarial assumption:
Inflation rate 2.50 Percent 2.50 Percent 2.50 Percent 2.75 percent 2.75 percent
Projected salary increases 3.50 percent 3.50 percent 3.50 percent 3.75 percent 3.75 percent
Investment rate of return 7.20 percent 7.20 percent 7.50 percent 7.75 percent 8.00 percent
123
City of Tigard,Oregon
Schedule of the Changes in the City's Total OPEB Liability and Related Ratios
Implicit Rate Subsidy Plan
Last Three Fiscal Years 1,2
2020 2019 2018
Total OPEB Liability(in 1,000s)
Service cost $ 109 $ 117 $ 100
Interest 52 54 43
Changes in benefit terms - - -
Economic/demographic losses - 15 -
Changes of assumptions or other inputs 46 (292) (96)
Benefit payments (59) (49) (59)
Net change in OPEB liability 148 (155) (12)
Total OPEB Liability- beginning 1,268 1,423 1,435
Total OPEB Liability-ending $ 1,416 $ 1,268 $ 1,423
Covered-employee payroll $ 23,214 $ 21,705 $ 21,438
Total OPEB Liability as a %of covered payroll 6.10% 5.84% 6.64%
110-year trend information required by GASB Statement 75 will be presented prospectively
2 Amounts presented are for the measurement period reported during the fiscal year, which for FY 2020 is
July 1, 2018-June 30, 2019
124
City of Tigard,Oregon
Schedule of the City's Proportionate Share of the Net OPEB Liability(Asset)
Oregon Public Employees Retirement System,Retiremen Health Insurance Account
Last Four Fiscal Years 1,2
2020 2019 2018 2017
City's proportion of the net OPEB
liability(asset) 0.0607% 0.0579% 0.0613% 0.0675%
City's proportionate share of the net
OPEB liability(asset) $ (117,368) $ (64,649) $ (25,563) $ 18,323
City's covered payroll $ 6,331,572 $ 5,941,342 $ 6,280,408 $ 6,610,002
City's proportionate share of the net
OPEB liability(asset)as a percentage
of its covered payroll -1.9% -1.1% -0.4% 0.3%
Plan fiduciary net position as a
percentage of the total OPEB liability 144.4% 124.0% 108.9% 80.5%
110-year trend information required by GASB Statement 75 will be presented prospectively
2 Amounts presented are for the measurement period reported during the fiscal year,which for FY 2020 is July 1, 2018-
June 30, 2019
125
City of Tigard,Oregon
Schedule of the City's Contributions
Oregon Public Employees Retirement System,Retirement Health Insurance Account
Last Four Fiscal Years'
2020 2019 2018 2017
Contractually required contributions $ 2,463 $ 30,103 $ 29,366 $ 31,820
Contributions in relation to the contractually
required contribution (2,463) (30,103) (29,366) (31,820)
Contribution deficiency(excess) $ - $ - $ - $ -
City's covered payroll $ 6,307,694 $ 6,331,572 $ 5,941,342 $ 6,280,408
Contributions as a percentage of covered payroll 0.04% 0.48% 0.49% 0.51%
110-year trend information required by GASB Statement 75 will be presented prospectively
NOTES TO SCHEDULE
Actuarial Assumptions and Methods Used to Actuarially Determine Contributions:
Actuarial Valuation December 31,2017 December 31,2016 December 31,2015 December 31,2013
Effective July 2019-June 2020 July 2018-June 2019 July 2017-June 2018 July 2015-June 2017
Actuarial cost method: Entry Age Normal Entry Age Normal Entry Age Normal Entry Age Normal
Actuarial valuation method: Market Value Market Value Market Value Market Value
Actuarial assumption:
Inflation rate 2.50 percent 2.50 percent 2.50 percent 2.75 percent
Projected salary increases 3.50 percent 3.50 percent 3.50 percent 3.75 percent
Investment rate of return 7.20 percent 7.20 percent 7.50 percent 7.75 percent
126
Other Supplementary
Information
127
128
CITY OF TIGARD,OREGON
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30,2020
Special Debt Service Capital Project
Revenue Funds Funds Funds Total
ASSETS
Cash and investments $ 2,325,718 $ - $ 3,446,404 $ 5,772,122
Accounts receivable 742,557 - 772,238 1,514,795
Property taxes receivable - 3,019 - 3,019
Assessment liens receivable - 214,276 - 214,276
Interest receivable - 1,518 - 1,518
Restricted cash and investments 21,461,900 1,298,855 41,937,500 64,698,255
Total assets $ 24,548,255 $ 1,517,668 $ 46,156,142 $ 72,222,065
LIABILITIES
Accounts payable and accrued liabilities $ 537,829 $ - $ 901,588 $ 1,439,417
Deposits 1,057,431 - - 1,057,431
Due to others 59,223 - - 59,223
Advances from other funds - - 986,301 986,301
Unearned revenue 50,000 - - 50,000
Total liabilities 1,704,483 - 1,887,889 3,592,372
DEFERRED INFLOWS OF RESOURCES
Resources not yet available:
Property taxes - 11,600 - 11,600
Transportation refund credits 35,857 - - 35,857
State grants - - 70,873 70,873
Special assessment liens - 213,340 109,761 323,101
Total deferred inflows of resources 35,857 224,940 180,634 441,431
FUND BALANCES
Non-spendable:
Prepaids 18,080 - - 18,080
Restricted for:
Street maintenance and improvements 7,374,308 - 24,509,563 31,883,871
Tourism 752,303 - - 752,303
Affordable housing 114,949 - - 114,949
Debt service - 1,292,728 - 1,292,728
Park development and improvements - - 12,413,195 12,413,195
Underground utilities - - 556,258 556,258
Building inspection 10,074,209 - - 10,074,209
Police services 517,837 - - 517,837
Library improvements 604,896 - - 604,896
Urban development and improvements - - 3,374,874 3,374,874
Committed for:
Street maintenance and improvements - - 2,528,203 2,528,203
Urban forestry 1,028,448 - - 1,028,448
Assigned to:
City facilities - - 934,395 934,395
Park and recreation 2,322,885 - - 2,322,885
Unassigned - - (228,869) (228,869)
Total fund balances 22,807,915 1,292,728 44,087,619 68,188,262
Total liabilities,deferred inflows of
resources and fund balances $ 24,548,255 $ 1,517,668 $ 46,156,142 $ 72,222,065
129
CITY OF TIGARD,OREGON
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
for the year ended June 30,2020
Special Debt Service Capital Project
Revenue Funds Funds Funds Total
REVENUES
Taxes $ 6,105,734 $ 1,047,495 $ - $ 7,153,229
Special assessments - 46,554 - 46,554
Licenses and permits 2,815,902 - - 2,815,902
Intergovernmental revenues 16,278 - 2,013,424 2,029,702
Charges for services 1,869,271 - 3,197,825 5,067,096
System development charges - - 5,606,246 5,606,246
Rental revenues - - 54,202 54,202
Fines and forfeitures 293,973 - - 293,973
Interest earnings 521,057 29,831 952,798 1,503,686
Miscellaneous revenues 221,969 - 67,914 289,883
Total revenues 11,844,184 1,123,880 11,892,409 24,860,473
EXPENDITURES
Community services 113,005 - - 113,005
Public works 6,153,581 - - 6,153,581
Community development 1,945,434 - 606,179 2,551,613
Debt service:
Principal 825,000 808,156 - 1,633,156
Interest 35,888 141,290 - 177,178
Capital outlay - - 8,121,335 8,121,335
Total expenditures 9,072,908 949,446 8,727,514 18,749,868
Changes in fund balance before
other financing sources(uses) 2,771,276 174,434 3,164,895 6,110,605
OTHER FINANCING SOURCES(USES)
Transfer in 2,621,500 - 3,506,014 6,127,514
Transfer out (1,714,725) (359,000) (2,599,049) (4,672,774)
Debt proceeds - 780,000 5,149,000 5,929,000
Total other financing sources(uses) 906,775 421,000 6,055,965 7,383,740
Changes in fund balance 3,678,051 595,434 9,220,860 13,494,345
Fund Balance-Beginning of the year 19,129,864 697,294 34,866,759 54,693,917
Fund Balance-End of the year $ 22,807,915 $ 1,292,728 $ 44,087,619 $ 68,188,262
130
Special Revenue Funds
The balance sheet and statement of revenues, expenditures and changes in fund balance of the
non-major special revenue funds are reported in the combining governmental fund statements.
Fund statements for the major special revenue funds are reported in the basic financial
statements.
Schedules of revenues, expenditures and changes in fund balance — budget and actual — are
also presented here for each special revenue fund.
Gas Tax Fund–This fund records shared revenues from the State of Oregon and Washington
County taxes on sale of motor vehicle fuel. The city uses these revenues to fund various
construction, reconstruction, improvements, repairs, maintenance and operation of public
highways, roads and streets.
City Gas Tax Fund–This fund accounts for revenues generated from Tigard's local gas tax and
funds projects for transportation improvements.
Transient Lodging Tax Fund–This fund accounts for revenues generated from Tigard's local
hotel/motel tax and funds projects to promote tourism.
Construction Excise Tax Fund–This fund accounts for revenues generated from Tigard's
construction excise tax and funds projects to promote affordable housing.
Electrical Inspection Fund–This fund accounts for fees charged for permits, plan check fees
and inspection of electrical improvements.
Building Fund–This fund accounts for fees charged for building inspection and plan review
activities.
Criminal Forfeiture Fund–This fund accounts for funds and property seized from criminals.
Urban Forestry Fund–This fund accounts for funds collected from developers in lieu of
preserving trees, which the city can use to plant trees in public right-of-way and other public
properties.
Parks Utility Fund–This fund accounts for fees charged for the maintenance and operation of
city parks, trails, and green spaces.
Library Fund–This fund accounts for the amounts received from several donations and
bequests for various special projects and artwork.
131
132
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133
CITY OF TIGARD,OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
June 30,2020
City Gas Transient Construction
Gas Tax Tax Lodging Tax Excise Tax
Fund Fund Fund Fund
ASSETS
Cash and investments $ - $ - $ - $ -
Accounts receivable 327,002 123,740 32,147 -
Restricted cash and investments 4,997,364 2,562,192 720,156 122,416
Total assets $ 5,324,366 $ 2,685,932 $ 752,303 $ 122,416
LIABILITIES
Accounts payable $ 124,046 $ - $ - $ -
Due to others - - - 7,467
Deposits 476,087 - - -
Unearned revenue - - - -
Total liabilities 600,133 - - 7,467
DEFERRED INFLOWS OF RESOURCES
Transportation refund credits 23,493 12,364 - -
FUND BALANCE
Restricted for:
Street maintenance and improvements 4,700,740 2,673,568 - -
Tourism - - 752,303 -
Affordable housing - - - 114,949
Building inspection - - - -
Police services - - - -
Library improvements - - - -
Committed for:
Urban forestry - - - -
Assigned for:
Park and recreation - - - -
Total fund balances 4,700,740 2,673,568 752,303 114,949
Total liabilities and fund
balances $ 5,324,366 $ 2,685,932 $ 752,303 $ 122,416
134
Electrical Criminal Urban Parks
Inspection Building Forfeiture Forestry Utility Library
Fund Fund Fund Fund Fund Fund Total
$ - $ - $ - $ - $ 2,325,718 $ - $ 2,325,718
1,131 6,163 - 1,618 250,228 528 742,557
413,086 9,807,191 576,953 1,608,174 - 654,368 21,461,900
$ 414,217 $ 9,831,434 $ 576,953 $ 1,609,792 $ 2,575,946 $ 654,896 $ 24,548,255
$ - $ 153,621 $ 7,101 $ - $ 253,061 $ - $ 537,829
603 (862) 52,015 - - - 59,223
581,344 - - 1,057,431
50,000 50,000
603 152,759 59,116 581,344 253,061 50,000 1,704,483
-
-
-
-
-
-
35,857
-
-
-
-
-
7,374,308
-
-
-
-
-
752,303
-
-
-
114,949
413,614 9,660,595 - - - - 10,074,209
517,837 - - - 517,837
-
-
-
604,896 604,896
-
-
1,028,448 - - 1,028,448
2,322,885 - 2,322,885
413,614 9,678,675 517,837 1,028,448 2,322,885 604,896 22,807,915
$ 414,217 $ 9,831,434 $ 576,953 $ 1,609,792 $ 2,575,946 $ 654,896 $ 24,548,255
135
CITY OF TIGARD,OREGON
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
for the year ended June 30,2020
City Gas Transient Construction
Gas Tax Tax Lodging Tax Excise Tax
Fund Fund Fund Fund
REVENUES
Gas tax $ 4,612,461 $ - $ - $ -
City gas tax - 831,411 - -
Hotel/Motel tax - - 547,271 -
Construction excise tax - - - 114,591
Licenses and permits 5,663 - - -
Charges for services - - - -
Intergovernmental revenues - - - -
Fines and forfeitures - - - -
Tree replacement revenue - - - -
Interest earnings 125,789 61,240 19,699 358
Miscellaneous revenues 82,957 - - -
Total revenues 4,826,870 892,651 566,970 114,949
EXPENDITURES
Community services - - - -
Public works 3,009,946 - - -
Community development - - - -
Debt service:
Principal 540,517 284,483 - -
Interest 23,513 12,375 - -
Total expenditures 3,573,976 296,858 - -
Changes in fund balance
before other financing
sources(uses) 1,252,894 595,793 566,970 114,949
OTHER FINANCING SOURCES(USES)
Transfer in 158,000 - - -
Transfer out (859,529) (100,630) (334,469) -
Total other financing
sources(uses) (701,529) (100,630) (334,469) -
Changes in fund balance 551,365 495,163 232,501 114,949
Fund balance-Beginning of the year 4,149,375 2,178,405 519,802 -
Fund balance-End of the year $ 4,700,740 $ 2,673,568 $ 752,303 $ 114,949
136
Electrical Criminal Urban Parks
Inspection Building Forfeiture Forestry Utility Library
Fund Fund Fund Fund Fund Fund Total
$ - $ - $ - $ - $ - $ - $ 4,612,461
- - 831,411
- - - - - - 547,271
- - - - - - 114,591
250,148 2,560,091 - - - - 2,815,902
- - - - 1,808,024 - 1,808,024
- 16,278 - - - - 16,278
- - 293,973 - - - 293,973
- - - 61,247 - - 61,247
11,269 223,904 8,905 38,272 16,803 14,818 521,057
24,702 83,317 - - 30,993 - 221,969
286,119 2,883,590 302,878 99,519 1,855,820 14,818 11,844,184
- - 113,005 - - - 113,005
- - - - 3,143,635 - 6,153,581
- 1,945,434 - - - - 1,945,434
- - - - - - 825,000
- - - - - - 35,888
- 1,945,434 113,005 - 3,143,635 - 9,072,908
286,119 938,156 189,873 99,519 (1,287,815) 14,818 2,771,276
- 250,000 - - 2,213,500 - 2,621,500
(250,000) - - (108,559) (61,538) - (1,714,725)
(250,000) 250,000 - (108,559) 2,151,962 - 906,775
36,119 1,188,156 189,873 (9,040) 864,147 14,818 3,678,051
377,495 8,490,519 327,964 1,037,488 1,458,738 590,078 19,129,864
$ 413,614 $ 9,678,675 $ 517,837 $ 1,028,448 $ 2,322,885 $ 604,896 $ 22,807,915
137
CITY OF TIGARD,OREGON
GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
State gas tax $ 4,183,940 $ 4,183,940 $ 3,645,295 $ (538,645)
County gas tax 197,296 197,296 967,166 769,870
Licenses and permits 65,965 65,965 5,663 (60,302)
Interest earnings 82,400 82,400 125,789 43,389
Miscellaneous revenues 62,818 62,818 82,957 20,139
Total revenues 4,592,419 4,592,419 4,826,870 234,451
EXPENDITURES
Public works 3,760,480 3,793,100 3,009,946 783,154
*Debt service:
Principal 543,650 543,650 540,517 3,133
Interest 33,580 33,580 23,513 10,067
Total expenditures 4,337,710 4,370,330 3,573,976 796,354
Change in fund balance before
other financing sources(uses) 254,709 222,089 1,252,894 1,030,805
OTHER FINANCING SOURCES(USES)
Transfer in 158,000 158,000 158,000 -
Transfer out (2,131,900) (2,172,400) (859,529) 1,312,871
Contingency (222,000) (189,380) - 189,380
Reserve for future expenditures (1,019,293) (1,019,293) - 1,019,293
Total other financing(uses) (3,215,193) (3,223,073) (701,529) 2,521,544
Change in fund balance (2,960,484) (3,000,984) 551,365 3,552,349
Fund balance-Beginning of the year 2,960,484 3,000,984 4,149,375 1,148,391
Fund balance-End of the year $ - $ - $ 4,700,740 $ 4,700,740
* Budget appropriation is made at the debt service program level
138
CITY OF TIGARD,OREGON
CITY GAS TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
City gas tax $ 933,987 $ 933,987 $ 831,411 $ (102,576)
Interest earnings 38,700 38,700 61,240 22,540
Miscellaneous revenues 10,000 10,000 - (10,000)
Total revenues 982,687 982,687 892,651 (90,036)
EXPENDITURES
*Debt service:
Principal 286,350 286,350 284,483 1,867
Interest 12,420 12,420 12,375 45
Total expenditures 298,770 298,770 296,858 1,912
Changes in fund balance before
other financing sources(uses) 683,917 683,917 595,793 (88,124)
OTHER FINANCING SOURCES(USES)
Transfer out (895,000) (895,000) (100,630) 794,370
Reserve for future expenditures (1,809,668) (1,809,668) - 1,809,668
Total other financing sources(uses) (2,704,668) (2,704,668) (100,630) 2,604,038
Change in fund balance (2,020,751) (2,020,751) 495,163 2,515,914
Fund balance-Beginning of the year 2,020,751 2,020,751 2,178,405 157,654
Fund balance-End of the year $ - $ - $ 2,673,568 $ 2,673,568
* Budget appropriation is made at the debt service program level
139
CITY OF TIGARD,OREGON
TRANSIENT LODGING TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Hotel/Motel tax $ 683,920 $ 683,920 $ 547,271 $ (136,649)
Interest earnings 4,800 4,800 19,699 14,899
Total revenues 688,720 688,720 566,970 (121,750)
OTHER FINANCING SOURCES(USES)
Transfer out (344,900) (399,066) (334,469) 64,597
Reserve for future expenditures (796,418) (796,418) - 796,418
Total other financing sources(uses) (1,141,318) (1,195,484) (334,469) 861,015
Change in fund balance (452,598) (506,764) 232,501 739,265
Fund balance-Beginning of the year 452,598 506,764 519,802 13,038
Fund balance-End of the year $ - $ - $ 752,303 $ 752,303
140
CITY OF TIGARD,OREGON
CONSTRUCTION EXCISE TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Construction excise tax $ - $ - $ 114,591 $ 114,591
Interest earnings - - 358 358
Change in fund balance - - 114,949 114,949
Fund balance-Beginning of the year - - - -
Fund balance-End of the year $ - $ - $ 114,949 $ 114,949
141
CITY OF TIGARD,OREGON
ELECTRICAL INSPECTION FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Licenses and permits $ 185,778 $ 185,778 $ 250,148 $ 64,370
Interest earnings 8,400 8,400 11,269 2,869
Total revenues 194,178 194,178 286,119 91,941
OTHER FINANCING(USES)
Transfer out (250,000) (250,000) (250,000) -
Reserve for future expenditures (288,870) (288,870) - 288,870
Total other financing(uses) (538,870) (538,870) (250,000) 288,870
Change in fund balance (344,692) (344,692) 36,119 380,811
Fund balance-Beginning of the year 344,692 344,692 377,495 32,803
Fund balance-End of the year $ - $ - $ 413,614 $ 413,614
142
CITY OF TIGARD,OREGON
BUILDING FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Licenses and permits $ 2,322,956 $ 2,322,956 $ 2,560,091 $ 237,135
Intergovernmental revenues 8,281 8,281 16,278 7,997
Interest earnings 150,500 150,500 223,904 73,404
Miscellaneous revenues 7,500 7,500 83,317 75,817
Total revenues 2,489,237 2,489,237 2,883,590 394,353
EXPENDITURES
Community development 2,122,747 2,184,368 1,945,434 238,934
Change in fund balance before
other financing sources(uses) 366,490 304,869 938,156 633,287
OTHER FINANCING SOURCES(USES)
Transfer in 250,000 250,000 250,000 -
Contingency (295,000) (233,379) - 233,379
Reserve for future expenditures (8,342,725) (8,342,725) - 8,342,725
Total other financing sources(uses) (8,387,725) (8,326,104) 250,000 8,576,104
Change in fund balance (8,021,235) (8,021,235) 1,188,156 9,209,391
Fund balance-Beginning of the year 8,021,235 8,021,235 8,490,519 469,284
Fund balance-End of the year $ - $ - $ 9,678,675 $ 9,678,675
143
CITY OF TIGARD,OREGON
CRIMINAL FORFEITURE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ - $ - $ 8,905 $ 8,905
Forfeitures 56,459 56,459 293,973 237,514
Total revenues 56,459 56,459 302,878 246,419
EXPENDITURES
Community services 151,065 151,065 113,005 38,060
Change in fund balance before
other financing sources(uses) (94,606) (94,606) 189,873 284,479
OTHER FINANCING SOURCES(USES)
Reserve for future expenditures (145,843) (145,843) - 145,843
Total other financing sources(uses) (145,843) (145,843) - 145,843
Change in fund balance (240,449) (240,449) 189,873 430,322
Fund balance-Beginning of the year 240,449 240,449 327,964 87,515
Fund balance-End of the year $ - $ - $ 517,837 $ 517,837
144
CITY OF TIGARD,OREGON
URBAN FORESTRY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Tree replacement revenue $ 15,000 $ 15,000 $ 61,247 $ 46,247
Interest earnings 35,200 35,200 38,272 3,072
Total revenues 50,200 50,200 99,519 49,319
OTHER FINANCING SOURCES(USES)
Transfer out (148,900) (218,900) (108,559) 110,341
Reserve for future expenditures (916,503) (846,503) - 846,503
Total other financing sources(uses) (1,065,403) (1,065,403) (108,559) 956,844
Change in fund balance (1,015,203) (1,015,203) (9,040) 1,006,163
Fund balance-Beginning of the year 1,015,203 1,015,203 1,037,488 22,285
Fund balance-End of the year $ - $ - $ 1,028,448 $ 1,028,448
145
CITY OF TIGARD,OREGON
PARKS UTILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 1,881,343 $ 1,881,343 $ 1,808,024 $ (73,319)
Interest earnings 3,300 3,300 16,803 13,503
Miscellaneous revenues - - 30,993 30,993
Total revenues 1,884,643 1,884,643 1,855,820 (28,823)
EXPENDITURES
Public works 3,807,739 3,872,437 3,143,635 728,802
Change in fund balance before
other financing sources(uses) (1,923,096) (1,987,794) (1,287,815) 699,979
OTHER FINANCING SOURCES(USES)
Transfer in 2,213,770 2,213,770 2,213,500 (270)
Transfer out (61,538) (61,538) (61,538) -
Contingency (135,000) (70,302) - 70,302
Reserve for future expenditures (1,546,720) (1,546,720) - 1,546,720
Total other financing sources(uses) 470,512 535,210 2,151,962 1,616,752
Change in fund balance (1,452,584) (1,452,584) 864,147 2,316,731
Fund balance-Beginning of the year 1,452,584 1,452,584 1,458,738 6,154
Fund balance-End of the year $ - $ - $ 2,322,885 $ 2,322,885
146
CITY OF TIGARD,OREGON
LIBRARY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES:
Interest earnings $ 13,000 $ 13,000 $ 14,818 $ 1,818
OTHER FINANCING SOURCES(USES)
Transfer out (100,000) (100,000) - 100,000
Reserve for future expenditures (402,200) (402,200) - 402,200
Total other financing sources(uses) (502,200) (502,200) - 502,200
Change in fund balance (489,200) (489,200) 14,818 504,018
Fund balance-Beginning of the year 489,200 489,200 590,078 100,878
Fund balance-End of the year $ - $ - $ 604,896 $ 604,896
147
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148
Debt Service Funds
The balance sheet and statement of revenues, expenditures and changes in fund balance of the non-
major debt service funds are reported in the combining non-major governmental fund statements.
Schedules of revenues, expenditures and changes in fund balance — budget and actual — are also
presented for each debt service fund.
Non-major Debt Service Funds:
Bancroft Bond Debt Service Fund – This fund accounts for payment of Bancroft improvement bond
principal and interest. Revenues are derived from the collection of assessments against benefitted
property and interest earnings.
City Center Urban Renewal Debt Service Fund –This fund accounts for principal and interest payments
on debt for the City Center Urban Renewal Area and transfers to the City Center Capital Improvement
Fund. Revenues are from property taxes and interest earnings.
Tigard Triangle Debt Service Fund –This fund accounts for principal and interest payments on debt for
the Tigard Triangle Urban Renewal Area and transfers to the Tigard Triangle Improvement Fund.
Revenues are from property taxes and interest earnings.
Major Debt Service Fund:
General Obligation Debt Service Fund – This fund accounts for payment of general obligation bond
principal and interest. Revenues are derived from property taxes and interest earnings.
149
150
CITY OF TIGARD,OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
June 30,2020
Bancroft Bond City Center Urban Tigard Triangle
Debt Service Renewal Debt Debt Service
Fund Service Fund Fund Total
ASSETS
Property taxes receivable $ - $ 1,862 $ 1,157 $ 3,019
Assessment liens receivable 213,340 - 936 214,276
Interest receivable - 1,518 - 1,518
Restricted cash and investments 100,830 1,090,300 107,725 1,298,855
Total assets $ 314,170 $ 1,093,680 $ 109,818 $ 1,517,668
DEFERRED INFLOWS OF RESOURCES
Resources not yet available:
Special assessments/liens 213,340 - - 213,340
Property taxes - 7,744 3,856 11,600
Total deferred inflows of resources 213,340 7,744 3,856 224,940
FUND BALANCES
Restricted for debt service 100,830 1,085,936 105,962 1,292,728
Total liabilities,deferred inflows of
resources and fund balances $ 314,170 $ 1,093,680 $ 109,818 $1,517,668
151
CITY OF TIGARD,OREGON
NONMAJOR DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
for the year ended June 30,2020
Bancroft Bond City Center Urban Tigard Triangle
Debt Service Renewal Debt Debt Service
Fund Service Fund Fund Total
REVENUES
Taxes $ - $ 586,810 $ 460,685 $ 1,047,495
Collection of bonded assessments 46,554 - - 46,554
Interest earnings 15,464 10,090 4,277 29,831
Total revenues 62,018 596,900 464,962 1,123,880
EXPENDITURES
Debt service:
Principal 28,156 780,000 - 808,156
Interest 1,014 140,276 - 141,290
Total expenditures 29,170 920,276 - 949,446
Change in fund balance before
other financing sources(uses) 32,848 (323,376) 464,962 174,434
OTHER FINANCING SOURCES(USES)
Debt proceeds - 780,000 - 780,000
Transfer out - - (359,000) (359,000)
Total other financing sources(uses) - 780,000 (359,000) 421,000
Change in fund balance 32,848 456,624 105,962 595,434
Fund balance-Beginning of the year 67,982 629,312 - 697,294
Fund balance-End of the year $ 100,830 $ 1,085,936 $ 105,962 $ 1,292,728
152
CITY OF TIGARD,OREGON
BANCROFT BOND DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Collection of bonded assessments $ 50,000 $ 50,000 $ 46,554 $ (3,446)
Interest earnings 31,900 31,900 15,464 (16,436)
Total revenues 81,900 81,900 62,018 (19,882)
EXPENDITURES
*Debt service:
Principal 78,000 78,000 28,156 49,844
Interest 5,000 5,000 1,014 3,986
Total expenditures 83,000 83,000 29,170 53,830
Change in fund balance before
other financing sources(uses) (1,100) (1,100) 32,848 33,948
OTHER FINANCING SOURCES(USES)
Reserve for future expenditures (53,761) (53,761) - 53,761
Total other financing sources(uses) (53,761) (53,761) - 53,761
Change in fund balance (54,861) (54,861) 32,848 87,709
Fund balance-Beginning of the year 54,861 54,861 67,982 13,121
Fund balance-End of the year $ - $ - $ 100,830 $ 100,830
153
CITY OF TIGARD,OREGON
CITY CENTER URBAN RENEWAL DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Property taxes $ 560,000 $ 560,000 $ 586,810 $ 26,810
Interest earnings 11,100 11,100 10,090 (1,010)
Total revenues 571,100 571,100 596,900 25,800
EXPENDITURES
Debt service:
Principal 780,000 780,000 780,000 -
Interest 231,350 231,350 140,276 91,074
Total expenditures 1,011,350 1,011,350 920,276 91,074
Change in fund balance before
other financing sources(uses) (440,250) (440,250) (323,376) 116,874
OTHER FINANCING SOURCES(USES)
Debt proceeds 792,000 792,000 780,000 12,000
Transfer out (153,000) (274,000) - 274,000
Reserve for future expenditure (346,750) (346,750) - 346,750
Total other financing sources(uses) 292,250 171,250 780,000 632,750
Change in fund balance (148,000) (269,000) 456,624 749,624
Fund balance-Beginning of the year 148,000 269,000 629,312 360,312
Fund balance-End of the year $ - $ - $ 1,085,936 $ 1,109,936
154
CITY OF TIGARD,OREGON
TIGARD TRIANGLE DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Property taxes $ 293,000 $ 293,000 $ 460,685 $ 167,685
Interest earnings - - 4,277 4,277
Total revenues 293,000 293,000 464,962 171,962
EXPENDITURES
*Debt service:
Interest 9,000 9,000 - 9,000
Total expenditures 9,000 9,000 - 9,000
Change in fund balance before
other financing sources(uses) 284,000 284,000 464,962 180,962
OTHER FINANCING SOURCES(USES)
Transfer out (359,000) (359,000) (359,000) -
Reserve for future expenditure (25,000) (25,000) - 25,000
Total other financing sources(uses) (384,000) (384,000) (359,000) 25,000
Change in fund balance (100,000) (100,000) 105,962 205,962
Fund balance-Beginning of the year 100,000 100,000 - (100,000)
Fund balance-End of the year $ - $ - $ 105,962 $ 105,962
155
CITY OF TIGARD,OREGON
GENERAL OBLIGATION DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Taxes $ 2,385,625 $ 2,385,625 $ 2,311,480 $ (74,145)
Interest earnings 37,000 37,000 45,788 8,788
Total revenues 2,422,625 2,422,625 2,357,268 (65,357)
EXPENDITURES
Debt service:
Principal 1,585,000 1,585,000 7,269,234 (5,684,234)
Interest 638,000 638,000 631,825 6,175
Total expenditures 2,223,000 2,223,000 7,901,059 (5,678,059)
Change in fund balance before
other financing sources(uses) 199,625 199,625 (5,543,791) (5,743,416)
OTHER FINANCING SOURCES(USES)
Debt proceeds - - 5,981,000 5,981,000
Reserve for future expenditures (1,527,755) (1,527,755) - 1,527,755
Total other financing sources(uses) (1,527,755) (1,527,755) 5,981,000 7,508,755
Change in fund balance (1,328,130) (1,328,130) 437,209 1,765,339
Fund balance-Beginning of the year 1,328,130 1,328,130 1,510,969 182,839
Fund balance-End of the year $ - $ - $ 1,948,178 $ 1,948,178
156
Capital Project Funds
Combining statements for all individual non-major capital projects funds are reported here. The
combined totals are reported in the combining non-major governmental fund statements.
Schedules of revenues, expenditures and changes in fund balance— budget and actual — are also
presented here for each capital projects fund.
Non-major Capital Projects Funds:
Facility Fund –Accounts for major city owned facility improvements. Resources are primarily transfers
in from the General Fund.
Transportation Development Tax Fund –Accounts for traffic impact fees collected on roads within the
city's urban service areas. This fund replaced the Traffic Impact Fee Fund starting July 1, 2009. Funds
will be used for highways and transit capital improvements in the city's Capital Improvement Plan.
Underground Utility Fund – Accounts for resources received from developers for future underground
utility improvements.
Street Maintenance Fee Fund – Accounts for revenues and expenditures for the Street Maintenance
Fee.This fee provides revenue designated for use in the maintenance of existing city streets.
Transportation System Development Charges (SDC) Fund – This fund was established to track the
revenues and expenditures associated with the collection of transportation system development
charges. The fee is collected on the issue of building permits for any new residential multi-family, or
commercial construction to assist with infrastructure capacity needs.
Parks Capital Fund – Accounts for revenues earmarked for improvements to park and recreational
facilities within the city. Resources are primarily transfers in of system development charges and other
funds and grants and donations. Expenditures consist of various park,trail development and open space
acquisition projects.
Parks Bond Fund –Accounts for the voter approved a $17 million parks bond debt issued for purchase
of land and green spaces to develop city parks.
Parks System Development Charges (SDC) Fund –Accounts for revenues associated with the collection
of Parks System Development Charges. Resources are used to fund the acquisition, development and
expansion of additional recreation spaces and facilities that are included in the city's Park Master Plan.
Transportation Capital Improvement Project Fund–Accounts for capital improvement projects funded
with transportation revenues; including Gas Tax, Traffic Impact Fees and Transportation Development
Tax.
City Center Capital Improvement Fund –This fund was established in FY 2007-08 for the creation of a
new urban renewal agency to improve downtown Tigard. Expenses are for capital improvements within
the urban renewal plan. Resources are from financing proceeds or transfers in from the City Center
Urban Renewal Debt Service Fund.
Tigard Triangle Improvement Fund –This fund was established in FY 2016-17 for the creation of a new
urban renewal agency to improve the Tigard Triangle area. Expenses are for capital improvements
within the urban renewal plan. Resources are from financing proceeds or transfers in from the Tigard
Triangle Debt Service Fund.
157
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159
CITY OF TIGARD,OREGON
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
June 30,2020
Transportation Underground Street Transportation
Facility Development Utility Maintenance SDC
Fund Tax Fund Fund Fee Fund Fund
ASSETS
Cash and investments $ 964,970 $ - $ - $ 2,481,434 $ -
Accounts receivable 903 11,866 450 396,157 4,772
Restricted cash and investments - 13,718,907 555,808 - 9,051,791
Total assets $ 965,873 $ 13,730,773 $ 556,258 $ 2,877,591 $ 9,056,563
LIABILITIES
Accounts payable and accrued liabilities $ 31,478 $ - $ - $ 349,388 $ -
Advances from other funds-interfund loans - - - - -
Unearned revenue-special assessments - - - - -
Total liabilities 31,478 - - 349,388 -
DEFERRED INFLOWS OF RESOURCES
Special assessments/liens - 3,413 - - -
FUND BALANCES(DEFICIT)
Restricted for:
Street maintenance and improvements - 13,727,360 - - 9,056,563
Park development and improvements - - - - -
Underground utilities - - 556,258 - -
Urban development and improvements - - - - -
Committed for:
Street maintenance and improvements - - - 2,528,203 -
Assigned to:
City facilities 934,395 - - - -
Unassigned - - - - -
Total fund balances 934,395 13,727,360 556,258 2,528,203 9,056,563
Total liabilities,deferred inflows of
resources and fund balance $ 965,873 $ 13,730,773 $ 556,258 $ 2,877,591 $ 9,056,563
160
Transportation
Parks Parks Parks Capital City Center Captial Tigard Triangle
Capital Bond SDC Improvement Improvement Improvement
Fund Fund Fund Fund Fund Fund Total
$ - $ - $ - $ - $ - $ - $ 3,446,404
135,162 - 7,642 215,286 - - 772,238
323,782 826,563 11,381,667 1,767,263 4,238,596 73,123 41,937,500
$ 458,944 $ 826,563 $ 11,389,309 $ 1,982,549 $ 4,238,596 $ 73,123 $ 46,156,142
$ 155,273 $ - $ - $ 186,036 $ 106,290 $ 73,123 $ 901,588
- - - 757,432 228,869 986,301
- - - 70,873 - - 70,873
155,273 - - 256,909 863,722 301,992 1,958,762
106,348 - - - - - 109,761
- - 1,725,640 - - 24,509,563
197,323 826,563 11,389,309 - - - 12,413,195
- - - - - 556,258
- - - - 3,374,874 - 3,374,874
- - - - - 2,528,203
- - - - - 934,395
- - - - (228,869) (228,869)
197,323 826,563 11,389,309 1,725,640 3,374,874 (228,869) 44,087,619
$ 458,944 $ 826,563 $ 11,389,309 $ 1,982,549 $ 4,238,596 $ 73,123 $ 46,156,142
161
CITY OF TIGARD,OREGON
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
for the year ended June 30,2020
Transportation Underground Street Transportation
Facility Development Utility Maintenance SDC
Fund Tax Fund Fund Fee Fund Fund
REVENUES
Charges for services $ - $ - $ 94,870 $ 3,064,759 $ -
System development charges - 2,749,952 - - 1,425,608
Intergovernmental revenues - - - - -
Rental revenues - - - - -
Interest earnings 21,554 325,176 11,839 41,501 210,410
Miscellaneous revenues 129 51,335 - 175 -
Total revenues 21,683 3,126,463 106,709 3,106,435 1,636,018
EXPENDITURES
Community development - - - - -
Capital projects 50,917 - - 2,559,549 -
Total expenditures 50,917 - - 2,559,549 -
Change in fund balance before
other financing sources(uses) (29,234) 3,126,463 106,709 546,886 1,636,018
OTHER FINANCING SOURCES(USES)
Transfer in 33,708 - - - -
Transfer out - (1,006,704) - (306,430) (168,138)
Debt proceeds - - - - -
Total other financing sources(uses) 33,708 (1,006,704) - (306,430) (168,138)
Change in fund balance 4,474 2,119,759 106,709 240,456 1,467,880
Fund balance- Beginning of the year 929,921 11,607,601 449,549 2,287,747 7,588,683
Fund balance- End of the year $ 934,395 $ 13,727,360 $ 556,258 $ 2,528,203 $ 9,056,563
162
Transportation
Parks Parks Parks Capital City Center Captial Tigard Triangle
Capital Bond SDC Improvement Improvement Improvement
Fund Fund Fund Fund Fund Fund Total
$ - $ - $ - $ 38,196 $ - $ - $ 3,197,825
- - 1,430,686 - - - 5,606,246
702,522 - - 1,239,902 - 71,000 2,013,424
- - - - 54,202 - 54,202
- 19,162 277,484 10,233 35,439 - 952,798
34,912 - - (18,854) 217 - 67,914
737,434 19,162 1,708,170 1,269,477 89,858 71,000 11,892,409
- - - - 130,583 475,596 606,179
2,141,708 - - 2,086,568 1,282,593 - 8,121,335
2,141,708 - - 2,086,568 1,413,176 475,596 8,727,514
(1,404,274) 19,162 1,708,170 (817,091) (1,323,318) (404,596) 3,164,895
1,245,105 - - 1,708,741 159,460 359,000 3,506,014
- - (1,117,777) - - - (2,599,049)
- - - - 5,149,000 - 5,149,000
1,245,105 - (1,117,777) 1,708,741 5,308,460 359,000 6,055,965
(159,169) 19,162 590,393 891,650 3,985,142 (45,596) 9,220,860
356,492 807,401 10,798,916 833,990 (610,268) (183,273) 34,866,759
$ 197,323 $ 826,563 $ 11,389,309 $ 1,725,640 $ 3,374,874 $ (228,869) $ 44,087,619
163
CITY OF TIGARD,OREGON
FACILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 18,900 $ 18,900 $ 21,554 $ 2,654
Miscellaneous revenues - - 129 129
Total revenues 18,900 18,900 21,683 2,783
EXPENDITURES
Capital projects 1,050,000 1,050,000 50,917 999,083
Change in fund balance before
other financing sources(uses) (1,031,100) (1,031,100) (29,234) 1,001,866
OTHER FINANCING SOURCES(USES)
Transfer in 390,000 390,000 33,708 (356,292)
Contingency (50,000) (50,000) - 50,000
Reserve for future expenditures (226,262) (226,262) - 226,262
Total other financing sources(uses) 113,738 113,738 33,708 (80,030)
Change in fund balance (917,362) (917,362) 4,474 921,836
Fund balance-Beginning of the year 917,362 917,362 929,921 12,559
Fund balance-End of the year $ - $ - $ 934,395 $ 934,395
164
CITY OF TIGARD,OREGON
TRANSPORTATION DEVELOPMENT TAX FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
System development charges $ 1,400,000 $ 1,400,000 $ 2,749,952 $ 1,349,952
Interest earnings 253,900 253,900 325,176 71,276
Miscellaneous revenues - - 51,335 51,335
Total revenues 1,653,900 1,653,900 3,126,463 1,421,228
OTHER FINANCING SOURCES(USES)
Transfer out (1,425,000) (1,425,000) (1,006,704) 418,296
Reserve for future expenditures (10,758,870) (10,758,870) - 10,758,870
Total other financing sources(uses) (12,183,870) (12,183,870) (1,006,704) 11,177,166
Change in fund balance (10,529,970) (10,529,970) 2,119,759 12,598,394
Fund balance-Beginning of the year 10,529,970 10,529,970 11,607,601 1,077,631
Fund balance-End of the year $ - $ - $ 13,727,360 $ 13,676,025
165
CITY OF TIGARD,OREGON
UNDERGROUND UTILITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 124,000 $ 124,000 $ 94,870 $ (29,130)
Interest earnings 8,500 8,500 11,839 3,339
Total revenues 132,500 132,500 106,709 (25,791)
OTHER FINANCING SOURCES(USES)
Transfer out (10,000) (10,000) - 10,000
Reserve for future expenditures (597,425) (597,425) - 597,425
Total other financing uses (607,425) (607,425) - 607,425
Change in fund balance (474,925) (474,925) 106,709 581,634
Fund balance-Beginning of the year 474,925 474,925 449,549 (25,376)
Fund balance-End of the year $ - $ - $ 556,258 $ 556,258
166
CITY OF TIGARD,OREGON
STREET MAINTENANCE FEE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,990,000 $ 2,990,000 $ 3,064,759 $ 74,759
Interest earnings 30,100 30,100 41,501 11,401
Miscellaneous revenues - - 175 175
Total revenues 3,020,100 3,020,100 3,106,435 86,335
EXPENDITURES
Capital projects 2,888,000 2,888,000 2,559,549 328,451
Change in fund balance before
other financing sources(uses) 132,100 132,100 546,886 414,786
OTHER FINANCING SOURCES(USES)
Transfer out (306,430) (306,430) (306,430) -
Contingency (200,000) (200,000) - 200,000
Reserve for future expenditures (1,703,041) (1,703,041) - 1,703,041
Total other financing sources(uses) (2,209,471) (2,209,471) (306,430) 1,903,041
Change in fund balance (2,077,371) (2,077,371) 240,456 2,317,827
Fund balance-Beginning of the year 2,077,371 2,077,371 2,287,747 210,376
Fund balance-End of the year $ - $ - $ 2,528,203 $ 2,528,203
167
CITY OF TIGARD,OREGON
TRANSPORTATION SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
System development charges $ 409,500 $ 409,500 $ 1,425,608 $ 1,016,108
Interest earnings 144,000 144,000 210,410 66,410
Total revenues 553,500 553,500 1,636,018 1,082,518
OTHER FINANCING SOURCES(USES)
Transfer out (209,000) (299,000) (168,138) 130,862
Reserve for future expenditures (7,634,496) (7,634,496) - 7,634,496
Total other financing sources(uses) (7,843,496) (7,933,496) (168,138) 7,765,358
Change in fund balance (7,289,996) (7,379,996) 1,467,880 8,847,876
Fund balance-Beginning of the year 7,289,996 7,379,996 7,588,683 208,687
Fund balance-End of the year $ - $ - $ 9,056,563 $ 9,056,563
168
CITY OF TIGARD,OREGON
PARKS CAPITAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental revenues $ 867,000 $ 1,037,000 $ 702,522 $ (334,478)
Miscellaneous revenues - - 34,912 34,912
Total revenues 867,000 1,037,000 737,434 (299,566)
EXPENDITURES
Capital projects 4,709,500 5,523,666 2,141,708 3,381,958
Change in fund balance before
other financing sources(uses) (3,842,500) (4,486,666) (1,404,274) 3,082,392
OTHER FINANCING SOURCES(USES)
Transfer in 3,707,000 4,351,166 1,245,105 (3,106,061)
Reserve for future expenditures (744,500) (744,500) - 744,500
Total other financing sources(uses) 2,962,500 3,606,666 1,245,105 (2,361,561)
Change in fund balance (880,000) (880,000) (159,169) 720,831
Fund balance-Beginning of the year 880,000 880,000 356,492 (523,508)
Fund balance-End of the year $ - $ - $ 197,323 $ 197,323
169
CITY OF TIGARD,OREGON
PARKS BOND FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ - $ - $ 19,162 $ 19,162
OTHER FINANCING SOURCES(USES)
Transfer out (889,000) (889,000) - 889,000
Reserve for future expenditures (59,000) (59,000) - 59,000
Total other financing uses (948,000) (948,000) - 948,000
Change in fund balance (948,000) (948,000) 19,162 967,162
Fund balance-Beginning of the year 948,000 948,000 807,401 (140,599)
Fund balance-End of the year $ - $ - $ 826,563 $ 826,563
170
CITY OF TIGARD,OREGON
PARKS SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
System development charges $ 503,390 $ 503,390 $ 1,430,686 $ 927,296
Interest earnings 211,100 211,100 277,484 66,384
Total revenues 714,490 714,490 1,708,170 993,680
OTHER FINANCING SOURCES(USES)
Transfer out (2,847,400) (3,293,400) (1,117,777) 2,175,623
Reserve for future expenditures (6,399,953) (6,399,953) - 6,399,953
Total other financing sources(uses) (9,247,353) (9,693,353) (1,117,777) 8,575,576
Change in fund balance (8,532,863) (8,978,863) 590,393 9,569,256
Fund balance-Beginning of the year 8,532,863 8,978,863 10,798,916 1,820,053
Fund balance-End of the year $ - $ - $ 11,389,309 $ 11,389,309
171
CITY OF TIGARD,OREGON
TRANSPORTATION CIP FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental revenues $ 1,038,200 $ 1,248,200 $ 1,239,902 $ (8,298)
Miscellaneous revenues - - (18,854) (18,854)
Charges for services - - 38,196 38,196
Interest earnings - - 10,233 10,233
Total revenues 1,038,200 1,248,200 1,269,477 21,277
EXPENDITURES
Capital projects 5,231,400 5,463,400 2,086,568 3,376,832
Total expenditures 5,231,400 5,463,400 2,086,568 3,376,832
Change in fund balance before
other financing sources(uses) (4,193,200) (4,215,200) (817,091) 3,398,109
OTHER FINANCING SOURCES(USES)
Transfer in 4,093,200 4,115,200 1,708,741 (2,406,459)
Reserve for future expenditures (720,000) (720,000) - 720,000
Total other financing sources 3,373,200 3,395,200 1,708,741 (1,686,459)
Change in fund balance (820,000) (820,000) 891,650 1,711,650
Fund balance-Beginning of the year 820,000 820,000 833,990 13,990
Fund balance-End of the year $ - $ - $ 1,725,640 $ 1,725,640
172
CITY OF TIGARD,OREGON
CITY CENTER CAPITAL IMPROVEMENTS FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Rental revenues $ - $ - $ 54,202 $ 54,202
Interest earnings - - 35,439 35,439
Miscellaneous revenues - - 217 217
Total revenues - - 89,858 89,858
EXPENDITURES
* Capital projects 1,657,500 1,790,255 1,413,176 377,079
Change in fund balance before
other financing sources(uses) (1,657,500) (1,790,255) (1,323,318) 466,937
OTHER FINANCING SOURCES(USES)
Transfer in 533,000 654,000 159,460 (494,540)
Debt proceeds 6,208,000 6,208,000 5,149,000 (1,059,000)
Total other financing sources 6,741,000 6,862,000 5,308,460 (494,540)
Change in fund balance 5,083,500 5,071,745 3,985,142 (27,603)
Fund balance-Beginning of the year 390,050 401,805 147,164 (254,641)
Fund balance-End of the year $ 5,473,550 $ 5,473,550 4,132,306 $ (282,244)
Reconciliation of budgetary fund balance to GAAP basis net position:
Interfund loans are treated as revenue on a budgetary basis (757,432)
Fund net position-GAAP basis $ 3,374,874
* For budgetary puposes expenditures are appropriated as capital projects, however on the GAAP statements
non-capital transactions are recorded as program expenditures
173
CITY OF TIGARD,OREGON
TIGARD TRIANGLE CAPITAL IMPROVEMENTS FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Intergovernmental revenues $ 325,000 $ 325,000 $ 71,000 $ (254,000)
EXPENDITURES
Community development 683,000 683,000 475,596 207,404
* Capital projects 1,000 1,000 - 1,000
Total expenditures 684,000 684,000 475,596 208,404
Change in fund balance before
other financing sources(uses) (359,000) (359,000) (404,596) (45,596)
OTHER FINANCING SOURCES(USES)
Transfer in 359,000 359,000 359,000 -
Debt proceeds - - 45,596 45,596
Total other financing sources 359,000 359,000 404,596 45,596
Change in fund balance - - - -
Fund balance-Beginning of the year - - - -
Fund balance-End of the year $ - $ - - $ -
Reconciliation of budgetary fund balance to GAAP basis net position:
Interfund loans are treated as revenue on a budgetary basis (228,869)
Fund net position-GAAP basis $ (228,869)
* For budgetary puposes expenditures are appropriated as capital projects, however on the GAAP statements
non-capital transactions are recorded as program expenditures
174
Enterprise Funds
For GAAP reporting purposes, the city reports three proprietary funds as major funds. These
funds are the Sanitary Sewer Fund, the Stormwater Fund (which consists of the Stormwater
Fund and the Water Quality/Quantity Fund) and the Water Fund (which includes the Water
Fund, Water SDC Fund, Water CIP Fund and Water Debt Service Fund). For budgetary and legal
purposes, these funds are accounted for separately as listed below.
The city's enterprise funds meet the criteria for major fund reporting and are reported in the
basic financial statements.
Schedules or revenues and changes in fund net position — budget and actual are presented
here for each individual enterprise fund as required by Oregon regulations.
Sanitary Sewer Fund–Accounts for the city's sewer utility operations.
Stormwater Fund – Accounts for the city's storm drainage operations and includes the
following fund:
• Water Quality/Quantity Fund – Accounts for the fees charged to new
development for the additional impact on the stormwater system.
Water Fund–Accounts for the city's water utility operations and includes the following funds:
• Water SDC Fund – Accounts for the water impact fees charged to new
development.
• Water CIP Fund – Accounts for capital projects to expand or improve the city's
water system infrastructure.
• Water Debt Service Fund – Accounts for debt service on the water revenue
bonds and long-term note.
175
176
CITY OF TIGARD,OREGON
SANITARY SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 3,255,811 $ 3,255,811 $ 3,666,422 $ 410,611
Connection fees 92,200 92,200 134,287 42,087
Interest earnings 110,300 110,300 182,736 72,436
Miscellaneous revenues 42,100 42,100 31,478 (10,622)
Total revenues 3,500,411 3,500,411 4,014,923 514,512
EXPENDITURES
Public works 2,301,899 2,321,995 2,161,688 160,307
Capital projects 1,206,500 1,280,500 151,942 1,128,558
Total expenditures 3,508,399 3,602,495 2,313,630 1,288,865
Change in fund balance before
other financing sources(uses) (7,988) (102,084) 1,701,293 1,803,377
OTHER FINANCING SOURCES(USES)
Transfer in 243,750 317,750 17,641 (300,109)
Transfer out (659,200) (674,200) (471,150) 203,050
Contingency (414,000) (393,904) - 393,904
Reserve for future expenditures (4,065,622) (4,065,622) - 4,065,622
Total other financing sources(uses) (4,895,072) (4,815,976) (453,509) 4,362,467
Change in fund balance (4,903,060) (4,918,060) 1,247,784 6,165,844
Fund balance-Beginning of the year 4,903,060 4,918,060 6,295,016 1,376,956
Fund balance-End of the year $ - $ - $ 7,542,800 $ 7,542,800
177
CITY OF TIGARD,OREGON
SANITARY SEWER FUND
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30,2020
Operating and
Non-Operating Expenditures/
Revenues Expenses
Budgetary basis $ 4,032,564 $ 2,313,630
Unavailable revenue (14,999) -
Compensated absences - 4,126
Expenditures capitalized - (160,649)
Depreciation expense - 887,463
Net OPEB obligation - (416)
Operating and non-operating revenue
and expenses-GAAP basis $ 4,017,565 $ 3,044,154
178
CITY OF TIGARD,OREGON
STORM WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 3,892,188 $ 3,892,188 $ 4,017,864 $ 125,676
Licenses and permits - - 67,810 67,810
Interest earnings 139,900 139,900 172,888 32,988
Miscellaneous revenues 5,000 5,000 19,527 14,527
Total revenues 4,037,088 4,037,088 4,278,089 241,001
EXPENDITURES
Public works 2,977,842 3,019,778 2,487,194 532,584
Capital projects 2,410,500 2,502,500 1,901,307 601,193
Total expenditures 5,388,342 5,522,278 4,388,501 1,133,777
Change in fund balance before
other financing sources(uses) (1,351,254) (1,485,190) (110,412) 1,374,778
OTHER FINANCING USES
Transfer in 704,000 704,000 489,093 (214,907)
Transfer out (311,550) (400,550) (60,178) 340,372
Contingency (225,000) (183,064) - 183,064
Reserve for future expenditures (5,272,814) (5,272,814) - 5,272,814
Total other financing uses (5,105,364) (5,152,428) 428,915 5,581,343
Change in fund balance (6,456,618) (6,637,618) 318,503 6,956,121
Fund balance-Beginning of the year 6,456,618 6,637,618 7,783,543 1,145,925
Fund balance-End of the year $ - $ - $ 8,102,046 $ 8,102,046
179
CITY OF TIGARD,OREGON
WATER QUALITY/QUANTITY FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,000 $ 2,000 $ 4,620 $ 2,620
Interest earnings 25,800 25,800 30,141 4,341
Total revenues 27,800 27,800 34,761 6,961
OTHER FINANCING SOURCES(USES)
Transfer out (46,000) (46,000) - 46,000
Reserve for future expenditures (1,214,527) (1,214,527) - 1,214,527
Total other financing sources(uses) (1,260,527) (1,260,527) - 1,260,527
Change in fund balance (1,232,727) (1,232,727) 34,761 1,267,488
Fund balance-Beginning of the year 1,232,727 1,232,727 1,288,839 56,112
Fund balance-End of the year $ - $ - $ 1,323,600 $ 1,323,600
180
CITY OF TIGARD,OREGON
STORMWATER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30,2020
Operating and
Non-operating Expenditures/
Revenues Expenses
Stormwater $ 4,767,182 $ 4,448,679
Water Quality/Quantity 34,761 -
Total,budgetary basis 4,801,943 4,448,679
Contributed capital 80,186 -
Compensated absences - 5,524
Expenditures capitalized - (1,647,653)
Depreciation expense - 687,711
Net OPEB obligation - (602)
Operating and non-operating
revenue and expenses-GAAP basis $ 4,882,129 $ 3,493,659
181
CITY OF TIGARD,OREGON
WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 22,575,446 $ 22,575,446 $ 22,607,832 $ 32,386
Grants 15,000 15,000 - (15,000)
Interest earnings 500,700 500,700 847,742 347,042
Miscellaneous revenues 50,000 50,000 68,733 18,733
Total revenues 23,141,146 23,141,146 23,524,307 383,161
EXPENDITURES
Public works 10,246,079 10,377,157 8,354,211 2,022,946
Change in fund balance before
other financing sources(uses) 12,895,067 12,763,989 15,170,096 2,406,107
OTHER FINANCING SOURCES(USES)
Transfer out (10,651,600) (11,248,100) (9,319,758) 1,928,342
Contingency (539,000) (495,422) - 495,422
Reserve for future expenditures (32,511,891) (32,511,891) - 32,511,891
Total other financing sources(uses) (43,702,491) (44,255,413) (9,319,758) 34,935,655
Change in fund balance (30,807,424) (31,491,424) 5,850,338 37,341,762
Fund balance-Beginning of the year 30,807,424 31,491,424 35,251,281 3,759,857
Fund balance-End of the year $ - $ - $ 41,101,619 $ 41,101,619
182
CITY OF TIGARD,OREGON
WATER SDC FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
System development charges $ 1,276,200 $ 1,276,200 $ 2,859,333 $ 1,583,133
Interest earnings 258,200 258,200 351,524 93,324
Total revenues 1,534,400 1,534,400 3,210,857 1,676,457
OTHER FINANCING SOURCES(USES)
Transfer out (2,170,000) (2,206,000) (454,650) 1,751,350
Reserve for future expenditures (11,416,938) (11,416,938) - 11,416,938
Total other financing sources(uses) (13,586,938) (13,622,938) (454,650) 13,168,288
Change in fund balance (12,052,538) (12,088,538) 2,756,207 14,844,745
Fund balance-Beginning of the year 12,052,538 12,088,538 12,903,512 814,974
Fund balance-End of the year $ - $ - $ 15,659,719 $ 15,659,719
183
CITY OF TIGARD,OREGON
WATER CIP FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ - $ - $ 11,922 $ 11,922
Miscellaneous revenues - - 654 654
Total revenues - - 12,576 12,576
EXPENDITURES
Capital projects 4,304,500 4,922,000 1,228,252 3,693,748
Change in fund balance before
other financing sources(uses) (4,304,500) (4,922,000) (1,215,676) 3,706,324
OTHER FINANCING SOURCES(USES)
Transfer in 4,304,500 4,922,000 1,305,145 (3,616,855)
Reserve for future expenditures (1,530,000) (1,530,000) - 1,530,000
Total other financing sources(uses) 2,774,500 3,392,000 1,305,145 (2,086,855)
Change in fund balance (1,530,000) (1,530,000) 89,469 1,619,469
Fund balance-Beginning of the year 1,530,000 1,530,000 1,478,024 (51,976)
Fund balance-End of the year $ - $ - $ 1,567,493 $ 1,567,493
184
CITY OF TIGARD,OREGON
WATER DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ - $ - $ 173,980 $ 173,980
EXPENDITURES
Debt service:
Principal 2,445,000 2,445,000 2,385,305 59,695
Interest 6,032,000 6,032,000 6,005,628 26,372
Total expenditures 8,477,000 8,477,000 8,390,933 86,067
Change in fund balance before
other financing sources(uses) (8,477,000) (8,477,000) (8,216,953) 260,047
OTHER FINANCING SOURCES(USES)
Transfer in 8,408,000 8,408,000 8,390,933 (17,067)
Reserve for future expenditures (6,861,000) (6,861,000) - 6,861,000
Total other financing sources(uses) 1,547,000 1,547,000 8,390,933 6,843,933
Change in fund balance (6,930,000) (6,930,000) 173,980 7,103,980
Fund balance-Beginning of the year 6,930,000 6,930,000 7,140,649 210,649
Fund balance-End of the year $ - $ - $ 7,314,629 $ 7,314,629
185
CITY OF TIGARD,OREGON
WATER FUNDS
RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES
TO PROPRIETARY REVENUES AND EXPENSES
for the year ended June 30,2020
Operating and
Non-operating Expenditures/
Revenues Expenses
Water $ 23,524,307 $ 17,673,969
Water SDC 3,210,857 454,650
Water CIP 1,317,721 1,228,252
Water Debt Service 8,564,913 8,390,933
Total,budgetary basis 36,617,798 27,747,804
Contributed capital 7,909 -
Loss on investment in joint venture (10,423) -
Elimination of water interfund transfers (9,696,078) (9,696,078)
Compensated absences - 10,843
Expenditures capitalized - (899,027)
Principal payments - (2,385,305)
Accrued interest - (38,820)
Amortization of bond premium - (525,946)
Depreciation expense - 5,273,389
Net OPEB obligation - (754)
Operating and non-operating
revenue and expenses-GAAP basis $ 26,919,206 $ 19,486,106
186
CITY OF TIGARD,OREGON
ENTERPRISE FUNDS
RECONCILIATION OF BUDGETARY FUND BALANCE TO
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET POSITION
June 30,2020
Total Total Total
Sanitary Sewer Stormwater Water
Sanitary Sewer Fund $ 7,542,800 $ - $ -
Stormwater Fund - 8,102,046 -
Water Quality/Quantity Fund - 1,323,600 -
Water Fund - - 41,101,619
Water SDC Fund - - 15,659,719
Water CIP Fund - - 1,567,493
Water Debt Service Fund - - 7,314,629
Fund balance-budget basis 7,542,800 9,425,646 65,643,460
Adjustments from budgetary basis to
generally accepted accounting principles basis:
Capital assets, net 19,103,245 14,535,652 204,983,598
Investment in joint venture - - 1,060,472
Sewer funds payable (21,782) - -
Assets held for resale 185,021 260,021 -
Unavailable revenue 7,332 - -
Compensated absences (31,540) (37,987) (59,650)
Long-term debt - - (129,840,283)
Accrued interest payable - - (2,504,931)
Interfund loans 102,320 - -
Deferred Outflow OPEB 2,135 3,049 3,863
Deferred Inflow OPEB (6,120) (8,741) (11,074)
OPEB liability (25,989) (37,123) (47,033)
Total Net Position-GAAP basis $ 26,857,422 $ 24,140,516 $ 139,228,422
187
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188
Internal Service Funds
Combining statements for internal service funds are reported here. The combined totals are
reported alongside the enterprise funds in the basic financial statements.
Schedules of revenues, expenses and changes in fund net position — budget and actual — are
presented here for each internal service fund as required by Oregon regulations.
Internal Service Funds:
Central Services Fund — Accounts for the central administrative functions within the city.
Expenditures are primarily payroll and related expenses for city policy and administration
functions. Resources are charges for services to city departments and internal customers.
Public Works Administration Fund — Accounts for activity related to the administration of
public works in the city. Resources are charges for services to city departments and internal
customers.
Public Works Engineering Fund — Accounts for activity related to engineering in the city.
Resources are charges for services to city departments and internal customers.
Fleet/Property Management Fund —Accounts for activity related to the fleet maintenance and
property management divisions in the city. Resources are charges for services to city
departments and internal customers.
Insurance Fund — Accounts for the city's risk management program and insurance coverage
premiums and related costs to help reduce the overall insurance cost to the city. Resources are
primarily refunds of prior years' premiums.
189
190
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191
CITY OF TIGARD, OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
June 30, 2020
Central Public Works
Services Administration
Fund Fund
ASSETS
Cash and investments $ 2,990,100 $ 650,724
Accounts receivable 15,021 -
Prepaids 243,730 -
Inventory - -
Total assets 3,248,851 650,724
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to OPEB 16,268 7,407
LIABILITIES
Accounts payable and accrued liabilities 418,894 74,888
Customer deposits - -
Unearned revenue 16,500 -
Accrued compensated absences 344,948 55,982
Net OPEB obligation 198,054 90,174
Total liabilities 978,396 221,044
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB 46,635 21,233
NET POSITION
Net position, unrestricted $ 2,240,088 $ 415,854
192
Public Works Fleet/Property
Engineering Management Insurance
Fund Fund Fund Total
$ 3,121,819 $ 943,335 $ 1,572,737 $ 9,278,715
9,427 1,097 1,593 27,138
4,800 - 248,530
5,699 - 5,699
3,131,246 954,931 1,574,330 9,560,082
14,599 3,254 - 41,528
123,677 91,679 19,001 728,139
1,037,219 - - 1,037,219
16,500
83,189 55,209 265 539,593
177,740 39,617 - 505,585
1,421,825 186,505 19,266 2,827,036
41,851 9,328 - 119,047
$ 1,682,169 $ 762,352 $ 1,555,064 $ 6,655,527
193
CITY OF TIGARD, OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
for the year ended June 30, 2020
Central Public Works
Services Administration
Fund Fund
OPERATING REVENUES
Charges for services $ 9,087,057 $ 1,930,862
Miscellaneous revenues 32,262 912
Total operating revenues 9,119,319 1,931,774
OPERATING EXPENSES
Salaries and wages 5,727,625 1,057,015
Contracted services 861,695 66,296
General, administrative and other 2,476,360 828,702
Total operating expenses 9,065,680 1,952,013
Operating income (loss) 53,639 (20,239)
NONOPERATING REVENUE
Interest revenue 90,281 15,134
Income (loss) before contributions and transfers 143,920 (5,105)
CONTRIBUTIONS AND TRANSFERS
Transfer in 247,330 48,336
Change in net position 391,250 43,231
Net position - Beginning of year, as originally stated 1,848,838 372,623
Net position - End of year $ 2,240,088 $ 415,854
194
Public Works Fleet/Property
Engineering Management Insurance
Fund Fund Fund Total
$ 3,541,733 $ 2,345,977 $ - $ 16,905,629
16,112 44,295 64,786 158,367
3,557,845 2,390,272 64,786 17,063,996
2,081,734 971,872 21,060 9,859,306
196,441 405,218 - 1,529,650
1,313,726 857,401 65,026 5,541,215
3,591,901 2,234,491 86,086 16,930,171
(34,056) 155,781 (21,300) 133,825
44,158 18,941 36,329 204,843
10,102 174,722 15,029 338,668
465,488 - - 761,154
475,590 174,722 15,029 1,099,822
1,206,579 587,630 1,540,035 5,555,705
$ 1,682,169 $ 762,352 $ 1,555,064 $ 6,655,527
195
CITY OF TIGARD,OREGON
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
for the year ended June 30,2020
Public Works
Central Services Administration
Fund Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 9,091,179 $ 1,930,862
Payments to suppliers (3,547,755) (861,049)
Payments to employees (5,659,235) (1,035,638)
Other receipts 32,262 912
Net cash provided(used)by operating activities (83,549) 35,087
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfer from other funds 247,330 48,336
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 90,281 15,134
Net increase in cash and investments 254,062 98,557
Cash and investments--beginning of the year 2,736,038 552,167
Cash and investments--end of the year $ 2,990,100 $ 650,724
RECONCILIATION OF OPERATING INCOME(LOSS)TO
NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES
Operating income(loss) $ 53,639 $ (20,239)
Adjustments to reconcile operating income(loss)to
net cash provided(used)by operating activities
CHANGE IN ASSETS AND LIABILITIES
Receivables 4,122 -
Prepaids (210,900) -
Inventory - -
Accounts Payable 1,200 33,949
Customer Deposits - -
Accrued compensated absences 71,575 (2,724)
Net OPEB Obligation (3,185) 24,101
Net cash provided(used)by operating activities $ (83,549) $ 35,087
196
Public Works Fleet/Property
Engineering Management Insurance
Fund Fund Fund Total
$ 4,526,863 $ 2,340,080 $ - $ 17,888,984
(1,488,186) (1,340,898) (43,834) (7,281,722)
(2,018,305) (955,648) (21,051) (9,689,877)
16,112 44,295 64,508 158,089
1,036,484 87,829 (377) 1,075,474
465,488 - - 761,154
44,158 18,941 36,329 204,843
1,546,130 106,770 35,952 2,041,471
1,575,689 836,565 1,536,785 7,237,244
$ 3,121,819 $ 943,335 $ 1,572,737 $ 9,278,715
$ (34,056) $ 155,781 $ (21,300) $ 133,825
(9,427) (1,097) (278) (6,680)
- (4,800) 3,200 (212,500)
- 10,406 - 10,406
21,981 (88,685) 17,992 (13,563)
994,557 - - 994,557
15,927 16,858 9 101,645
47,502 (634) - 67,784
$ 1,036,484 $ 87,829 $ (377) $ 1,075,474
197
CITY OF TIGARD,OREGON
CENTRAL SERVICES FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 10,032,008 $ 10,032,008 $ 9,087,057 $ (944,951)
Interest earnings - - 90,281 90,281
Miscellaneous revenues 30,000 131,036 32,262 (98,774)
Total revenues 10,062,008 10,163,044 9,209,600 (953,444)
EXPENDITURES
Policy and administration 10,150,956 10,666,565 9,068,865 1,597,700
Total expenditures 10,150,956 10,666,565 9,068,865 1,597,700
Change in fund balance before
other financing sources(uses) (88,948) (503,521) 140,735 644,256
OTHER FINANCING SOURCES(USES)
Transfer in 234,721 342,721 247,330 (95,391)
Contingency (429,000) (122,427) - 122,427
Reserve for future expenditures (1,490,337) (1,490,337) - 1,490,337
Total other financing sources(uses) (1,684,616) (1,270,043) 247,330 1,517,373
Change in fund balance (1,773,564) (1,773,564) 388,065 2,161,629
Fund balance-Beginning of the year 1,773,564 1,773,564 2,080,444 306,880
Fund balance-End of the year $ - $ - 2,468,509 $ 2,468,509
Reconciliation of budgetary fund balance to GAAP basis net position:
Net OPEB liability (198,054)
Deferred Outflow OPEB 16,268
Deferred Inflow OPEB (46,635)
Total net position,GAAP basis $ 2,240,088
198
CITY OF TIGARD,OREGON
PUBLIC WORKS ADMINISTRATION FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,262,895 $ 2,262,895 $ 1,930,862 $ (332,033)
Interest earnings - - 15,134 15,134
Miscellaneous revenues - - 912 912
Total revenues 2,262,895 2,262,895 1,946,908 (315,987)
EXPENDITURES
Policy and administration 2,273,688 2,365,101 1,927,912 437,189
Change in fund balance before
other financing sources(uses) (10,793) (102,206) 18,996 121,202
OTHER FINANCING SOURCES(USES)
Transfer in 48,336 48,336 48,336 -
Contingency (135,000) (43,587) - 43,587
Reserve for future expenditures (218,759) (218,759) - 218,759
Total other financing sources(uses) (305,423) (214,010) 48,336 262,346
Change in fund balance (316,216) (316,216) 67,332 383,548
Fund balance-Beginning of the year 316,216 316,216 452,522 136,306
Fund balance-End of the year $ - $ - 519,854 $ 519,854
Reconciliation of budgetary fund balance to GAAP basis net position:
Net OPEB liability (90,174)
Deferred Outflow OPEB 7,407
Deferred Inflow OPEB (21,233)
Total net position,GAAP basis $ 415,854
199
CITY OF TIGARD,OREGON
PUBLIC WORKS ENGINEERING FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 3,720,852 $ 3,720,852 $ 3,541,733 $ (179,119)
Interest earnings - - 44,158 44,158
Miscellaneous revenues - 86,152 16,112 (70,040)
Total revenues 3,865,980 3,952,132 3,602,003 (350,129)
EXPENDITURES
Policy and administration 4,198,168 4,417,158 3,544,399 872,759
Change in fund balance before
other financing sources(uses) (332,188) (465,026) 57,604 522,630
OTHER FINANCING SOURCES(USES)
Transfer in 640,718 700,718 465,488 (235,230)
Contingency (170,000) (97,162) - 97,162
Reserve for future expenditures (679,826) (679,826) - 679,826
Total other financing sources(uses) (209,108) (76,270) 465,488 541,758
Change in fund balance (541,296) (541,296) 523,092 1,064,388
Fund balance-Beginning of the year 541,296 541,296 1,364,069 822,773
Fund balance-End of the year $ - $ - 1,887,161 $ 1,887,161
Reconciliation of budgetary fund balance to GAAP basis net position:
Net OPEB liability (177,740)
Deferred Outflow OPEB 14,599
Deferred Inflow OPEB (41,851)
Total net position,GAAP basis $ 1,682,169
200
CITY OF TIGARD,OREGON
FLEET/PROPERTY MANAGEMENT FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Charges for services $ 2,719,734 $ 2,719,734 $ 2,345,977 $ (373,757)
Interest earnings - - 18,941 18,941
Miscellaneous revenues 5,000 5,000 44,295 39,295
Total revenues 2,724,734 2,724,734 2,409,213 (315,521)
EXPENDITURES
Policy and administration 2,512,309 2,620,727 2,235,125 385,602
Change in fund balance before
other financing sources(uses) 212,425 104,007 174,088 70,081
OTHER FINANCING SOURCES(USES)
Contingency (226,000) (117,582) - 117,582
Reserve for future expenditures (596,488) (596,488) - 596,488
Total other financing sources(uses) (822,488) (714,070) - 714,070
Change in fund balance (610,063) (610,063) 174,088 784,151
Fund balance-Beginning of the year 610,063 610,063 633,955 23,892
Fund balance-End of the year $ - $ - 808,043 $ 808,043
Reconciliation of budgetary fund balance to GAAP basis net position:
Net OPEB liability (39,617)
Deferred Outflow OPEB 3,254
Deferred Inflow OPEB (9,328)
Total net position,GAAP basis $ 762,352
201
CITY OF TIGARD,OREGON
INSURANCE FUND
SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET AND ACTUAL
for the year ended June 30,2020
Budgeted Amounts Variance
Actual with final
Original Final Amounts budget
REVENUES
Interest earnings $ 26,500 $ 26,500 $ 36,329 $ 9,829
Miscellaneous revenues 39,000 39,000 64,786 25,786
Total revenues 65,500 65,500 101,115 35,615
EXPENDITURES
Policy and administration 64,476 167,975 86,086 81,889
Change in fund balance
before other financing sources(uses) 1,024 (102,475) 15,029 117,504
OTHER FINANCING SOURCES(USES)
Contingency (25,000) (21,501) - 21,501
Reserve for future expenditures (1,093,354) (940,354) - 940,354
Total other financing sources(uses) (1,118,354) (1,014,855) - 1,014,855
Change in fund balance (1,117,330) (1,117,330) 15,029 1,132,359
Fund balance-Beginning of the year 1,117,330 1,117,330 1,540,035 422,705
Fund balance-End of the year $ - $ - $ 1,555,064 $ 1,555,064
202
Other Schedules
203
204
CITY OF TIGARD,OREGON
SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS
For the fiscal year ended June 30,2020
Interest Transactions
Original Outstanding Matured/ Outstanding
Issue June 30,2019 Additions Called Paid Matured Paid
June 30,2020
Bancroft Bonds
Issued June 27,2002 $ 1,307,969 $ 28,419 $ - $ 28,419 $ (28,419) $ - $ 1,014 $ (1,014)
General Obligation Bonds
Issued February 3,2011 $ 8,655,000 $ 3,335,000 $ - $ 785,000 $ (785,000) $ 2,550,000 $ 117,700 $ (117,700)
Issued June 21,2010 7,250,000 825,000 - 825,000 (825,000) - 35,888 (35,888)
Issued April 28,2020 5,981,000 - 5,981,000 - - 5,981,000 - -
Issued February 3,2011 17,000,000 11,805,000 - 6,425,000 (6,425,000) 5,380,000 382,688 (382,688)
$ 15,965,000 $5,981,000 $8,035,000 $ (8,035,000) $ 13,911,000 $ 536,276 $ (536,276)
Full Faith&Credit Bonds
Issued September 1,2019 $ 5,929,000 $ - $5,929,000 $ - $ - $ 5,929,000 $ 124,918 $ (124,918)
Bank Loan
Issued September 1,2014 $ 1,300,000 $ 780,000 $ - $ 780,000 $ (780,000) $ - $ 11,427 $ (11,427)
Revenue Bonds
Issued May 1,2012 $97,720,000 $ 91,900,000 $ - $2,100,000 $ (2,100,000) $ 89,800,000 $4,546,040 $ (4,546,040)
Issued May 1,2015 30,810,000 30,315,000 - 175,000 (175,000) 30,140,000 1,497,900 (1,497,900)
$ 122,215,000 $ - $2,275,000 $ (2,275,000) $ 119,940,000 $6,043,940 $ (6,043,940)
Long-term Note
Issued December 1,2011 $ 2,398,000 $ 1,695,942 $ - $ 110,305 $ (110,305) $ 1,585,637 $ 50,878 $ (50,878)
205
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF GENERAL OBLIGATION BONDS
For the fiscal year ended June 30,2020
Total Debt Series 2011B Series 2020 Series 2011A
Service Requirement Issued:February 3,2011 Issued:April 28,2020 Issued:February 3,2011
Fiscal Year Total Total 3.00%to 4.00% 1.34% 3.00%to 4.75%
of Maturity Principal Interest Principal Interest Principal Interest Principal Interest
2021 $ 1,964,000 $ 393,242 $ 815,000 $ 85,700 $ 339,000 $ 87,492 $ 810,000 $ 220,050
2022 2,136,000 315,653 850,000 52,400 441,000 75,603 845,000 187,650
2023 2,309,000 241,243 885,000 17,700 549,000 69,693 875,000 153,850
2024 2,471,000 181,187 - - 1,561,000 62,337 910,000 118,850
2025 2,634,000 123,869 - - 1,684,000 41,419 950,000 82,450
2026 2,397,000 60,929 - - 1,407,000 18,854 990,000 42,075
$ 13,911,000 $ 1,316,123 $ 2,550,000 $ 155,800 $ 5,981,000 $ 355,398 $ 5,380,000 $ 804,925
206
CITY OF TIGARD, OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF FULL FAITH & CREDIT BONDS
For the fiscal year ended June 30, 2020
Total Debt Series 2019A Series 2019B
Service Requirement Issued: August 29, 2019 Issued: August 29, 2019
Fiscal Year Total Total 2.36% 2.99%
of Maturity Principal Interest Principal Interest Principal Interest
2021 $ 241,000 $ 165,333 $ 80,000 $ 44,746 $ 161,000 $ 120,587
2022 248,000 158,631 82,000 42,858 166,000 115,773
2023 254,000 151,731 84,000 40,922 170,000 110,809
2024 262,000 144,666 86,000 38,940 176,000 105,726
2025 269,000 137,374 88,000 36,910 181,000 100,464
2026 276,000 129,886 90,000 34,834 186,000 95,052
2027 284,000 122,201 92,000 32,710 192,000 89,491
2028 293,000 114,288 95,000 30,538 198,000 83,750
2029 300,000 106,126 97,000 28,296 203,000 77,830
2030 308,000 97,767 99,000 26,007 209,000 71,760
2031 317,000 89,182 101,000 23,671 216,000 65,511
2032 326,000 80,340 104,000 21,287 222,000 59,053
2033 335,000 71,248 106,000 18,833 229,000 52,415
2034 2,216,000 61,898 692,000 16,332 1,524,000 45,566
$ 5,929,000 $ 1,630,670 $ 1,896,000 $ 436,883 $ 4,033,000 $ 1,193,787
207
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF WATER REVENUE BONDS
For the fiscal year ended June 30,2020
Total Debt Service Requirement Issued: May 1,2012 Issued: May 3,2015
Fiscal Year Total Total 3.00%to 5.00% 3.00%to 5.00%
of Maturity Principal Interest Principal Interest Principal Interest
2021 $ 2,370,000 $ 5,861,850 $ 2,185,000 $ 4,378,050 $ 185,000 $ 1,483,800
2022 2,465,000 5,765,150 2,275,000 4,288,850 190,000 1,476,300
2023 2,565,000 5,664,550 2,365,000 4,196,050 200,000 1,468,500
2024 2,685,000 5,547,175 2,475,000 4,086,875 210,000 1,460,300
2025 2,820,000 5,411,675 2,605,000 3,959,875 215,000 1,451,800
2026 2,960,000 5,269,375 2,735,000 3,826,375 225,000 1,443,000
2027 3,110,000 5,119,925 2,875,000 3,686,125 235,000 1,433,800
2028 3,270,000 4,961,600 3,025,000 3,538,625 245,000 1,422,975
2029 3,435,000 4,793,975 3,180,000 3,383,500 255,000 1,410,475
2030 3,610,000 4,617,850 3,340,000 3,220,500 270,000 1,397,350
2031 3,795,000 4,435,175 3,515,000 3,049,125 280,000 1,386,050
2032 3,985,000 4,243,125 3,695,000 2,868,875 290,000 1,374,250
2033 4,190,000 4,038,750 3,885,000 2,679,375 305,000 1,359,375
2034 4,405,000 3,823,875 4,080,000 2,480,250 325,000 1,343,625
2035 4,630,000 3,598,000 4,290,000 2,271,000 340,000 1,327,000
2036 4,870,000 3,360,500 4,510,000 2,051,000 360,000 1,309,500
2037 5,120,000 3,110,750 4,745,000 1,819,625 375,000 1,291,125
2038 5,380,000 2,848,250 4,985,000 1,576,375 395,000 1,271,875
2039 5,660,000 2,572,250 5,240,000 1,320,750 420,000 1,251,500
2040 5,950,000 2,282,000 5,510,000 1,052,000 440,000 1,230,000
2041 6,250,000 1,977,000 5,795,000 769,375 455,000 1,207,625
2042 6,575,000 1,656,375 6,090,000 472,250 485,000 1,184,125
2043 6,910,000 1,319,250 6,400,000 160,000 510,000 1,159,250
2044 7,265,000 964,875 - - 7,265,000 964,875
2045 7,635,000 592,375 - - 7,635,000 592,375
2046 8,030,000 200,750 - - 8,030,000 200,750
$ 119,940,000 $ 94,036,425 $ 89,800,000 $ 61,134,825 $ 30,140,000 $ 32,901,600
208
CITY OF TIGARD,OREGON
SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS
OF SAFE DRINKING WATER REVOLVING LOAN FUNDS
For the fiscal year ended June 30,2020
Total Debt Service Requirement Issued: December 1, 2011
Fiscal Year Total Total 3.00%to 5.00%
of Maturity Principal Interest Principal Interest
2021 $ 113,614 $ 47,569 $ 113,614 $ 47,569
2022 117,022 44,161 117,022 44,161
2023 120,533 40,650 120,533 40,650
2024 124,149 37,034 124,149 37,034
2025 127,874 33,310 127,874 33,310
2026 131,710 29,473 131,710 29,473
2027 135,661 25,522 135,661 25,522
2028 139,731 21,452 139,731 21,452
2029 143,923 17,260 143,923 17,260
2030 148,241 12,943 148,241 12,943
2031 152,688 8,495 152,688 8,495
2032 130,491 3,915 130,491 3,915
$ 1,585,637 $ 321,784 $ 1,585,637 $ 321,784
209
No content appears on this page by design.
210
Statistical Section
This part of the City of Tigard's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements,
note disclosures, required supplementary information and other supplementary information
says about the city's overall financial health.
Contents Page
Financial Trends—These schedules contain trend information to
help the reader understand how financial performance has changed over time. 214-230
Revenue Capacity—These schedules contain information to help the
reader assess the city's most significant local revenue source, property taxes. 231-236
Debt Capacity—These schedules contain information to help the reader
assess the affordability of the city's current levels of outstanding debt and the
city's ability to issue additional debt in the future. 237-245
Demographic and Economic Information—These schedules offer demographic
and economic indicators to help the reader understand the environment within
the city's financial activities take place. 246-248
Operating Information—These schedules contain service and infrastructure data
to help the reader understand how the information in the city's financial report
relates to the services the city provides and the activities it performs. 249-253
21111
212
No content appears on this page by design.
213
CITY OF TIGARD,OREGON
NET POSITION BY COMPONENT
for the last ten fiscal years
(accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2011 2012 2013
GOVERNMENTAL ACTIVITIES
Net investment in capital assets $ 181,343,650 $ 179,626,050 $ 181,196,030
Restricted 5,880,755 13,180,057 12,041,725
Unrestricted 11,880,945 8,431,166 14,311,478
Total governmental activities net position 199,105,350 201,237,273 207,549,233
BUSINESS-TYPE ACTIVITIES
Net investment in capital assets 78,920,831 65,218,645 74,044,470
Restricted 6,005,540 13,184,382 9,683,852
Unrestricted 8,675,865 19,429,375 18,523,616
Total business-type activities net position 93,602,236 97,832,402 102,251,938
PRIMARY GOVERNMENT
Net investment in capital assets 260,264,481 244,844,695 255,240,500
Restricted 11,886,295 26,364,439 21,725,577
Unrestricted 20,556,810 27,860,541 32,835,094
Total primary government net position $ 292,707,586 $ 299,069,675 $ 309,801,171
Source: Comprehensive Annual Financial Report of the City.
214
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2014(Restated) 2015 2016 2017(Restated) 2018 2019 2020
$ 185,242,899 $ 189,748,234 $ 195,142,143 $ 199,214,099 $ 207,113,453 $ 216,080,286 $ 216,281,021
10,941,117 12,376,136 20,392,998 26,313,186 38,019,099 40,908,235 61,695,111
13,596,004 13,031,415 11,024,212 21,105,136 26,937,963 36,208,160 31,287,737
209,780,020 215,155,785 226,559,353 246,632,421 272,070,515 293,196,681 309,263,869
79,627,259 84,867,665 95,247,967 104,870,812 110,785,680 110,542,303 108,782,212
10,551,442 11,250,300 12,279,628 15,387,870 18,811,969 20,044,161 22,974,348
16,721,508 21,256,129 21,847,155 30,803,556 38,881,215 50,316,066 58,469,800
106,900,209 117,374,094 129,374,750 151,062,238 168,478,864 180,902,530 190,226,360
264,870,158 274,615,899 290,390,110 304,084,911 317,899,133 326,622,589 325,063,233
21,492,559 23,626,436 32,672,626 41,701,056 56,831,068 60,952,396 84,669,459
30,317,512 34,287,544 32,871,367 51,908,692 65,819,178 86,524,226 89,757,537
$ 316,680,229 $ 332,529,879 $ 355,934,103 $ 397,694,659 $ 440,549,379 $ 474,099,211 $ 499,490,229
215
CITY OF TIGARD,OREGON
CHANGES IN NET POSITION
for the last ten fiscal years
(accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2011 2012 2013
EXPENSES
Governmental activities
Community services $ 19,987,961 $ 20,025,191 $ 19,085,777
Public works 10,911,875 12,489,448 8,585,063
Community development 4,159,289 4,709,751 3,988,011
Policy and administration 1,825,398 2,117,198 1,339,254
Interest on long-term debt 1,214,420 1,125,259 1,226,774
Total governmental activities expenses 38,098,943 40,466,847 34,224,879
Business-type activities
Sewer 1,386,597 1,743,929 2,114,054
Stormwater 1,667,699 1,649,715 2,045,399
Water 6,996,463 7,807,706 11,989,337
Total business-type activities program expenses 10,050,759 11,201,350 16,148,790
Total primary government expenses $ 48,149,702 $ 51,668,197 $ 50,373,669
PROGRAM REVENUES
Governmental activities
Charges for services:
Community services $ 1,008,691 $ 1,191,417 $ 2,252,945
Public works 2,096,677 1,915,631 2,120,366
Community development 1,747,617 1,684,287 2,579,329
Policy and administration - 84,065 105,755
Operating grants and contributions 6,516,004 6,952,717 6,924,053
Capital grants and contributions 230,500 1,049,774 2,173,900
Total governmental activities program revenues 11,599,489 12,877,891 16,156,348
Business-type activities
Charges for services:
Sewer 1,021,840 1,025,732 1,203,187
Stormwater 2,178,298 2,402,189 2,629,694
Water 9,065,554 11,895,044 14,907,664
Capital grants and contributions 4,583,764 2,871,726 1,675,987
Total business-type activities program revenues 16,849,456 18,194,691 20,416,532
Total primary government program revenues $ 28,448,945 $ 31,072,582 $ 36,572,880
Source: Comprehensive Annual Financial Report of the City.
216
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2014(Restated) 2015 2016 2017(Restated) 2018 2019 2020
$ 23,078,512 $ 18,542,379 $ 25,089,790 $ 23,268,637 $ 24,099,976 $ 23,370,174 $ 25,961,675
8,399,436 10,408,399 10,865,800 8,263,304 8,900,831 12,129,476 9,578,442
4,267,328 4,688,686 7,030,142 5,807,204 5,330,390 5,146,891 5,817,188
1,732,016 1,323,435 1,226,166 3,528,933 2,945,936 3,688,137 3,383,319
1,147,024 1,185,507 958,204 949,136 863,803 771,834 760,211
38,624,316 36,148,406 45,170,102 41,817,214 42,140,936 45,106,512 45,500,835
2,617,625 2,518,708 2,536,988 2,586,769 2,789,140 3,128,483 3,044,154
1,958,551 2,077,589 2,123,162 2,737,825 2,470,085 3,261,312 3,433,481
11,730,347 10,839,483 14,720,167 8,244,491 14,123,903 17,223,333 19,418,199
16,306,523 15,435,780 19,380,317 13,569,085 19,383,128 23,613,128 25,895,834
$ 54,930,839 $ 51,584,186 $ 64,550,419 $ 55,386,299 $ 61,524,064 $ 68,719,640 $ 71,396,669
$ 1,872,350 $ 1,731,639 $ 1,879,576 $ 2,482,811 $ 1,557,082 $ 1,628,237 $ 1,500,919
2,519,515 2,239,431 2,860,543 5,165,280 4,708,329 4,797,891 5,220,273
1,765,005 3,040,501 4,684,733 4,341,128 6,518,737 6,432,190 4,292,102
65,233 142,277 119,195 363,583 340,446 345,505 90,582
6,318,382 6,508,556 7,756,718 6,880,727 8,321,435 9,594,291 9,625,070
1,804,398 2,021,422 11,785,524 15,691,507 16,307,318 12,268,270 8,542,864
14,344,883 15,683,826 29,086,289 34,925,036 37,753,347 35,066,384 29,271,810
1,727,206 1,773,388 1,791,302 3,013,314 3,208,783 3,389,281 3,666,422
2,733,346 2,899,180 3,058,382 3,275,083 3,620,431 3,812,133 4,017,864
15,985,607 18,804,645 20,918,497 20,926,322 23,078,013 23,751,073 22,607,832
1,111,346 2,066,696 5,806,590 7,670,388 6,795,717 3,285,377 3,139,146
21,557,505 25,543,909 31,574,771 34,885,107 36,702,944 34,237,864 33,431,264
$ 35,902,388 $ 41,227,735 $ 60,661,060 $ 69,810,143 $ 74,456,291 $ 69,304,248 $ 62,703,074
217
CITY OF TIGARD,OREGON
CHANGES IN NET POSITION(CONTINUED)
for the last ten fiscal years
(accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2011 2012 2013
NET(EXPENSE)REVENUE
Governmental activities $ (26,499,454) $ (27,588,956) $ (18,068,531)
Business-type activities 6,798,697 6,993,341 4,267,742
Total primary government net expenses (19,700,757) (20,595,615) (13,800,789)
GENERAL REVENUES AND OTHER
CHANGES IN NET POSITION
Governmental activities:
Property taxes 13,604,285 15,182,467 15,338,744
Franchise fees 4,375,420 4,880,635 5,855,956
Unrestricted intergovernmental revenues 2,838,802 4,798,949 2,500,240
Interest earnings 296,964 283,273 248,812
Miscellaneous 5,284,426 1,583,989 316,512
Transfers between Governmental and Business-type 1,629,245 2,991,566 120,227
Total governmental activities 28,029,142 29,720,879 24,380,491
Business-type activities:
Interest earnings 115,828 73,228 114,661
Miscellaneous 3,269 155,164 157,360
Unrestricted intergovernmental revenues - - -
Transfers between Governmental and Business-type (1,629,245) (2,991,566) (120,227)
Total business-type activities (1,510,148) (2,763,174) 151,794
Total primary government 26,518,994 26,957,705 24,532,285
CHANGES IN NET POSITION
Governmental activities(restated) 1,529,688 2,131,923 6,311,960
Business-type activities(restated) 5,288,549 4,230,167 4,419,536
Total primary government $ 6,818,238 $ 6,362,090 $ 10,731,496
Source: Comprehensive Annual Financial Report of the City.
218
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2014(Restated) 2015 2016 2017(Restated) 2018 2019 2020
$ (24,279,433) $ (20,464,580) $ (16,083,813) $ (6,892,178) $ (4,387,589) $ (10,040,128) $ (16,229,025)
5,250,982 10,108,129 12,194,454 21,316,022 17,319,816 10,624,736 7,535,430
(19,028,451) (10,356,451) (3,889,359) 14,423,844 12,932,227 584,608 (8,693,595)
15,796,663 16,523,361 17,177,591 17,616,798 18,387,321 19,101,543 20,325,728
5,542,647 5,687,456 5,734,540 5,890,113 6,095,852 6,211,736 6,360,563
2,955,652 3,004,341 2,840,903 2,074,428 3,022,051 2,522,428 2,484,051
421,211 434,401 688,087 824,213 1,683,282 2,416,827 2,520,783
776,154 247,154 228,779 268,380 416,785 453,435 502,164
1,017,893 (56,368) 817,481 291,314 220,392 460,325 102,924
26,510,220 25,840,345 27,487,381 26,965,246 29,825,683 31,166,294 32,296,213
270,415 131,485 302,890 106,628 139,926 1,606,834 1,770,933
144,767 177,903 193,645 270,628 177,276 652,421 120,392
- -
127,148 285,524 - - -
(1,017,893) 56,368 (817,481) (291,314) (220,392) (460,325) (102,924)
(602,711) 365,756 (193,798) 371,466 96,810 1,798,930 1,788,401
25,907,509 26,206,101 27,293,583 27,336,712 29,922,493 32,965,224 34,084,614
2,230,787 5,375,765 11,403,568 20,073,068 25,438,094 21,126,166 16,067,188
4,648,271 10,473,885 12,000,656 21,687,488 17,416,626 12,423,666 9,323,831
$ 6,879,058 $ 15,849,650 $ 23,404,224 $ 41,760,556 $ 42,854,720 $ 33,549,832 $ 25,391,019
219
CITY OF TIGARD,OREGON
FUND BALANCES OF GOVERNMENTAL FUNDS
for the last ten fiscal years
(modified accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2011 2012 2013
GENERAL FUND
Nonspendable $ 305,164 $ 471,975 $ 472,941
Unassigned 7,247,383 7,378,411 9,687,736
Total General Fund $ 7,552,547 $ 7,850,386 $ 10,160,677
ALL OTHER GOVERNMENTAL FUNDS
Nonspendable $ - $ - $ 14,986
Restricted 16,855,664 15,568,787 14,859,784
Committed 2,263,088 3,217,309 4,020,435
Assigned 417,479 428,823 670,223
Unassigned (382,937) (498,110) (601,324)
Total all other governmental funds $ 19,153,294 $ 18,716,809 $ 18,964,104
Source: Comprehensive Annual Financial Report of the City.
220
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2014 2015 2016 2017 2018 2019 2020
$ 508,374 $ 542,543 $ 664,254 $ 706,412 $ 705,495 $ 225,974 $ 274,603
11,474,700 12,115,436 12,970,670 14,884,712 19,356,804 23,121,341 26,823,013
$ 11,983,074 $ 12,657,979 $ 13,634,924 $ 15,591,124 $ 20,062,299 $ 23,347,315 $ 27,097,616
$ 16,055 $ 11,225 $ - $ 16,485 $ 17,040 $ 17,560 $ 18,080
12,504,001 11,791,605 18,250,934 31,914,910 45,521,700 51,414,137 91,514,895
4,457,233 2,801,857 3,260,236 4,341,838 3,307,731 3,325,235 3,556,651
905,166 1,156,788 1,597,773 1,725,086 1,738,216 2,388,659 3,257,280
(752,925) (352,684) (617,329) (725,296) (724,477) - (228,869)
$ 17,129,530 $ 15,408,791 $ 22,491,614 $ 37,273,023 $ 49,860,210 $ 57,145,591 $ 98,118,037
221
CITY OF TIGARD,OREGON
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
for the last ten fiscal years
(modified accrual basis of accounting)
Fiscal Year Fiscal Year Fiscal Year
2011 2012 2013
REVENUES
Taxes $ 16,753,457 $ 17,767,128 $ 18,208,253
City gas tax* - - 830,031
Franchise fees 4,375,420 4,880,635 5,724,192
Special assessments 40,164 38,776 43,170
Licenses and permits 2,590,516 2,444,551 3,175,118
Intergovernmental revenues 9,834,646 6,586,757 6,040,986
Charges for service 2,292,276 2,087,993 4,624,844
System development charges 835,031 971,660 2,007,935
Fines and forfeitures 907,216 1,092,296 1,038,948
Interest earnings 287,284 262,080 254,237
Miscellaneous 47,489 633,575 206,443
Total revenues 37,963,499 36,765,451 42,154,157
EXPENDITURES
Current operating:
Community services 19,182,018 19,638,469 18,636,382
Public works 6,059,692 6,354,390 6,551,980
Community development 3,975,257 3,902,223 3,937,089
Policy and administration 711,743 819,034 711,385
Debt service:
Principal 2,590,456 1,894,125 1,992,500
Interest 67,294 1,652,691 1,264,795
Refunded bonds 8,836,046 - -
Refunding bond issuance cost 81,236 - -
Capital outlay 19,247,942 4,037,766 6,357,256
Total expenditures 60,751,684 38,298,698 39,451,387
Excess(deficiency)of revenues
over(under)expenditures (22,788,185) (1,533,247) 2,702,770
OTHER FINANCING SOURCES(USES)
Proceeds from bond/long-term note 26,214,495 - -
Operating transfers in 16,977,142 6,969,663 4,735,619
Operating transfers out (16,006,177) (5,575,062) (4,880,803)
Total other financing sources(uses) 27,185,460 1,394,601 (145,184)
Net change in fund balances $ 4,397,275 $ (138,646) $ 2,557,586
Debt services as a percentage of non-capital
expenditures 6.84% 12.75% 10.92%
* City gas tax was broken out of intergovernmental revenues beginning in fiscal year 2013.
Source: Comprehensive Annual Financial Report of the City.
222
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2014 2015 2016 2017 2018 2019 2019
$ 18,822,449 $ 19,575,665 $ 20,191,927 $ 20,704,055 $ 21,822,129 $ 25,248,472 $ 25,582,940
638,852 558,740 712,408 844,866 887,038 888,913 831,411
5,542,647 5,691,960 5,732,448 5,886,791 6,102,443 6,218,353 6,365,589
258,831 35,359 65,243 52,146 50,036 59,999 46,554
3,098,875 4,030,120 5,751,472 6,662,790 7,648,235 5,178,056 4,050,568
6,386,961 6,370,732 6,684,667 8,228,693 8,737,359 9,498,510 9,364,516
4,982,211 4,342,534 4,869,821 5,930,289 6,636,913 4,648,396 5,369,990
955,678 961,450 6,104,579 11,733,901 9,860,311 4,240,910 5,606,246
929,293 924,266 972,560 713,059 698,508 843,100 828,444
424,221 434,401 653,879 799,748 1,659,107 2,343,694 2,315,941
312,815 413,736 220,894 349,098 1,204,701 1,284,229 526,208
42,352,833 43,338,963 51,959,898 61,905,436 65,306,780 60,452,632 60,888,407
19,420,335 20,325,635 20,784,186 21,925,169 22,631,248 22,051,531 23,708,112
6,914,185 7,512,446 7,606,128 8,291,205 8,899,175 6,105,157 6,153,581
4,219,481 4,640,737 6,981,903 5,807,836 5,345,399 5,272,175 5,875,274
701,172 778,840 831,876 787,681 795,586 993,346 843,032
2,445,993 2,117,045 2,361,892 2,378,100 2,454,000 2,530,800 3,117,619
1,178,637 1,118,238 1,059,733 977,539 892,206 799,646 809,003
- - - - - - 5,725,537
- - - - - - 59,234
7,657,993 8,924,317 6,200,291 4,705,720 6,742,438 11,087,518 8,121,335
42,537,796 45,417,258 45,826,009 44,873,250 47,760,052 48,840,173 54,412,727
(184,963) (2,078,295) 6,133,889 17,032,186 17,546,728 11,612,459 6,475,680
- 1,300,000 1,650,000 - - - 11,910,000
6,420,053 6,178,215 6,378,318 4,755,215 4,174,624 8,808,520 6,385,695
(6,247,267) (6,445,754) (6,102,439) (5,049,792) (4,662,990) (9,952,900) (7,043,924)
172,786 1,032,461 1,925,879 (294,577) (488,366) (1,144,380) 11,251,771
$ (12,177) $ (1,045,834) $ 8,059,768 $ 16,737,609 $ 17,058,362 $ 10,468,079 $ 17,727,451
11.60% 8.98% 9.00% 8.56% 8.28% 8.34% 8.47%
223
CITY OF TIGARD,OREGON
GOVERNMENTAL REVENUES
For the last ten fiscal years
Program Revenues
Fiscal Charges Operating Capital
Year Ended for Grants and Grants and Franchise
June 30 Services Contributions Contributions Taxes Fees
2011 $ 4,852,985 $ 6,516,004 $ 230,500 $ 13,604,285 $ 4,375,420
2012 4,875,400 6,952,717 1,049,774 15,182,467 4,880,635
2013 7,058,395 6,924,053 2,173,900 15,338,744 5,855,956
2014 6,222,103 6,318,382 1,804,398 15,796,663 5,542,647
2015 7,153,848 6,508,556 2,021,422 16,523,361 5,687,456
2016 9,544,047 7,756,718 11,785,524 17,177,591 5,734,540
2017 12,352,802 6,880,727 15,691,507 17,616,798 5,890,113
2018 13,124,594 8,321,435 16,307,318 18,387,321 6,095,852
2019 13,203,823 9,594,291 12,268,270 19,101,543 6,211,736
2020 11,103,876 9,625,070 8,542,864 20,325,728 6,360,563
CITY OF TIGARD,OREGON
BUSINESS-TYPE REVENUES
For the last ten fiscal years
Program Revenues
Fiscal Charges Operating Capital
Year Ended for Grants and Grants and Franchise
June 30 Services Contributions Contributions Taxes Fees
2011 $ 12,265,692 $ - $ 4,583,764 $ - $ -
2012 15,322,964 - 2,871,726 - -
2013 18,740,545 - 1,675,987 - -
2014 20,446,159 - 1,111,346 - -
2015 23,477,213 - 2,066,696 - -
2016 25,768,181 - 5,806,590 - -
2017 27,214,719 - 7,670,388 - -
2018 29,907,227 - 6,795,717 - -
2019 30,952,487 - 3,285,377 - -
2020 30,292,118 - 3,139,146 - -
Source: Comprehensive Annual Financial Report of the City-Statement of Activities.
224
General Revenues
Gain(Loss)on
Intergovernmental Interest Disposition of
Revenues Earnings Capital Assets Miscellaneous Total
$ 2,838,802 $ 296,964 $ - $ 5,284,426 $ 37,999,386
4,798,949 283,273 - 1,583,989 39,607,204
2,500,240 248,812 - 316,508 40,416,608
2,955,652 421,211 - 776,154 39,837,210
3,004,341 434,401 (25,998) 273,152 41,580,539
2,840,903 688,087 - 228,779 55,756,189
2,074,428 824,213 - 268,380 61,598,968
3,022,051 1,683,282 - 416,785 67,358,638
2,522,428 2,416,827 - 453,435 65,772,353
2,484,051 2,520,783 - 502,164 61,465,099
General Revenues
Gain(Loss)on
Intergovernmental Interest Disposition of
Revenues Earnings Capital Assets Miscellaneous Total
$ - $ 115,828 $ - $ 3,269 $ 16,968,553
73,228 - 155,164 18,423,082
114,661 - 157,360 20,688,553
270,415 - 144,767 21,972,687
- 131,485 - 177,903 25,853,297
127,148 302,890 - 193,645 32,198,454
285,524 106,628 - 270,628 35,547,887
- 139,926 - 177,276 37,020,146
- 1,606,834 - 652,421 36,497,119
- 1,770,933 - 120,392 35,322,589
225
CITY OF TIGARD,OREGON
GOVERNMENTAL EXPENSES BY FUNCTION
For the last ten fiscal years
Fiscal
Year Ended Community Community Policy and
June 30 Services Public Works Development Administration
2011 $ 19,987,961 $ 10,911,875 $ 4,159,289 $ 1,825,398
2012 20,025,189 12,489,448 4,709,750 2,117,198
2013 19,085,777 8,585,063 3,988,011 1,339,254
2014(Restated) 23,078,512 8,399,436 4,267,328 1,732,016
2015 18,542,379 10,408,399 4,688,686 1,323,435
2016 25,089,790 10,865,800 7,030,142 1,226,166
2017(Restated) 23,268,637 8,263,304 5,807,204 3,528,933
2018 24,099,976 8,900,831 5,330,390 2,945,936
2019 23,370,174 12,129,476 5,146,891 3,688,137
2020 25,961,675 9,578,442 5,817,188 3,383,319
CITY OF TIGARD,OREGON
BUSINESS-TYPE EXPENSES BY FUNCTION
For the last ten fiscal years
Fiscal
Year Ended
June 30 Sewer Stormwater Water Total
2011 $ 1,386,597 $ 1,667,699 $ 6,996,463 $ 10,050,759
2012 1,743,929 1,649,718 7,807,706 11,201,353
2013 2,114,054 2,045,399 11,989,337 16,148,790
2014 2,617,625 1,958,551 11,730,347 16,306,523
2015 2,518,708 2,077,589 10,839,483 15,435,780
2016 2,536,988 2,123,162 14,720,167 19,380,317
2017(Restated) 2,586,769 2,737,825 8,244,491 13,569,085
2018 2,789,140 2,470,085 14,123,903 19,383,128
2019 3,128,483 3,261,312 17,223,333 23,613,128
2020 3,044,154 3,433,481 19,418,199 25,895,834
Source: Comprehensive Annual Financial Report of the City.
226
Interest on
Long-Term
Debt Total
$ 1,214,420 $ 38,098,943
1,125,259 40,466,844
1,226,774 34,224,879
1,147,024 38,624,316
1,185,507 36,148,406
958,204 45,170,102
949,136 41,817,214
863,803 42,140,936
771,834 45,106,512
760,211 45,500,835
227
CITY OF TIGARD,OREGON
GENERAL GOVERNMENTAL REVENUES BY SOURCES-
BUDGETARY BASIS
For the last ten fiscal years
Fiscal Licenses Inter-
Year Ended Franchise and governmental
June 30 Taxes Fees Permits Revenues
2011 $ 16,753,457 $ 4,375,420 $ 2,590,516 $ 9,834,646
2012 17,767,128 4,880,635 2,444,551 6,586,757
2013 18,208,253 5,724,192 3,175,118 6,871,017
2014 19,720,132 5,542,647 3,098,875 6,386,961
2015 19,575,665 5,691,960 4,030,120 6,929,472
2016 20,904,335 5,732,448 5,751,472 6,684,667
2017 21,548,921 5,886,791 6,662,790 8,228,693
2018 22,709,167 6,102,443 7,648,235 8,737,359
2019 26,137,385 6,218,353 5,178,056 9,498,510
2020 26,414,351 6,365,589 4,050,568 9,364,516
* Includes special assessments collections,interest earnings,and other revenues.
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
228
Charges System
For Development Fines and Miscellaneous
Services Charges Forfeitures Revenues* Total
$ 2,292,276 $ 835,031 $ 907,216 $ 374,937 $ 37,963,499
2,087,993 971,660 1,092,296 934,431 36,765,451
4,624,844 2,007,935 1,038,948 503,850 42,154,157
4,982,211 955,678 929,293 737,036 42,352,833
4,342,534 961,450 924,266 883,496 43,338,963
4,869,821 6,104,579 972,560 940,016 51,959,898
5,930,289 11,733,901 713,059 1,200,992 61,905,436
6,636,913 9,860,311 698,508 2,913,844 65,306,780
4,648,396 4,240,910 843,100 3,687,922 60,452,632
5,369,990 5,606,246 828,444 2,888,703 60,888,407
229
CITY OF TIGARD,OREGON
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION-
BUDGETARY BASIS
For the last ten fiscal years
City-Wide
Support
Fiscal Public Works Functions,
Year Ended Community and Community Policy and Capital Projects Debt
June 30 Services Development Administration and Other Service Total
2011 $ 19,182,018 $ 10,034,949 $ 711,743 $ 19,247,942 $ 11,575,032 $ 60,751,684
2012 19,638,468 10,256,613 819,034 4,037,766 3,546,817 38,298,698
2013 18,636,382 10,489,069 711,385 6,357,256 3,257,295 39,451,387
2014 19,420,335 11,133,666 701,172 7,657,993 3,624,630 42,537,796
2015 20,325,635 12,153,183 778,840 8,924,317 3,235,283 45,417,258
2016 20,784,186 14,588,031 831,876 6,200,291 3,421,625 45,826,009
2017 21,925,169 14,099,041 787,681 4,705,720 3,355,639 44,873,250
2018 22,631,248 14,244,574 795,586 6,742,438 3,346,206 47,760,052
2019 22,051,531 11,377,332 993,346 11,087,518 3,330,446 48,840,173
2020 23,708,112 6,153,581 843,032 14,190,949 9,517,053 54,412,727
Information derived from Comprehensive Annual Financial Reports for all Governmental Fund Types
230
CITY OF TIGARD,OREGON
MARKET VALUE AND ASSESSED VALUE OF TAXABLE PROPERTY
For the last ten fiscal years
Fiscal Assessed Value Assessed
Year Total Estimated Real to Value
Ended Personal Public Utility Total Assessed Direct Market Value as a%
June 30 Real Property Property Property Value Tax Rate* (RMV) of RMV
2011 $ 4,605,287,760 $ 236,758,507 $ 186,625,460 $ 5,028,671,727 $ 2.79 $ 7,260,251,256 69.26%
2012 4,740,820,190 233,150,042 185,094,100 5,159,064,332 3.02 6,916,823,794 74.59%
2013 4,879,417,110 234,122,196 168,258,100 5,281,797,406 4.28 6,727,550,189 78.51%
2014 5,066,140,190 235,966,170 165,074,260 5,467,180,620 3.44 7,032,753,815 77.74%
2015 5,269,294,630 252,215,379 188,500,300 5,710,010,309 4.24 7,699,660,882 74.16%
2016 5,468,508,420 257,861,916 181,220,400 5,907,590,736 5.52 8,082,751,732 73.09%
2017 5,685,260,390 269,725,107 168,515,800 6,123,501,297 4.66 8,989,238,324 68.12%
2018 5,981,800,420 284,167,678 185,901,766 6,451,869,864 2.95 9,883,766,510 65.28%
2019 6,314,865,980 285,495,149 165,706,700 6,766,067,829 2.95 10,754,179,526 62.92%
2020 6,605,395,460 275,633,450 165,371,900 7,046,400,810 3.02 11,283,691,608 62.45%
* per$1,000 of assessed value/including phase in rates
Source: Washington County Assessment and Taxation
231
CITY OF TIGARD,OREGON
PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS
(Dollars per$1,000 of Assessed Value rounded to the nearest cent)
For the last ten fiscal years
City of Tigard
Tigard/
Direct Rates Tualatin
Fiscal Total School
Year Ended Perm Debt Urban City of Washington District
June 30 Rate Svc Renewal Phase In Tigard County No.23-J
2011 $ 2.51 $ 0.21 $ 0.07 $ - $ 2.79 $ 2.98 $ 7.37
2012 2.51 0.45 0.06 0.83 3.02 2.97 7.44
2013 2.51 0.44 0.06 1.27 4.28 2.96 7.38
2014 2.51 0.44 0.06 0.43 3.44 2.96 7.41
2015 2.51 0.42 0.07 1.24 4.24 2.83 7.43
2016 2.51 0.42 0.07 2.51 5.52 2.83 7.43
2017 2.51 0.39 0.08 1.68 4.66 2.95 7.41
2018 2.51 0.36 0.08 - 2.95 2.94 7.73
2019 2.51 0.35 0.08 - 2.95 2.94 7.71
2020 2.51 0.34 0.17 - 3.02 2.93 7.70
Taxes levied may be composed of three types of levies: (1)a base operating levy, (2)a special operating levy
approved by the voters in the district and (3)a debt service levy. Each district with outstanding General
Obligation bonded debt is required to levy taxes sufficient with other available funds,to meet principal and
interest payments when due.
Assessment and tax rolls are prepared and maintained by Washington County for all taxing districts with
territory in the County.The County collects all taxes against property in the County(except assessments for
improvements charged to benefited property)and distributes taxes collected at least monthly. No charges
are made to the taxing districts for these services.
NOTE:-Not all taxing districts are charged on each parcel of property,actual rates on tax bills are a
combination of the above depending upon the location of the parcel and the school district and sewer and
water district boundaries. Total overlapping tax rates for property in Tigard in 2015 ranged from
$13.31/$1,000 to$16.60/$1,000.
Source: Washington County Department of Assessment and Taxation.
232
Overlapping Rates
Washington
Beaverton Tualatin County Hillsboro Total Direct
School Valley Rural Fire Portland School Other &
District Fire&Rescue District Community District Taxing Overlapping
No.48-J District No.2 College No.1-J Agencies Rates
$ 6.78 $ 1.88 $ 1.69 $ 0.64 $ - $ 0.81 $ 24.94
6.86 1.92 1.69 0.60 7.47 1.88 33.85
6.77 1.91 1.69 0.66 7.50 0.72 33.87
8.05 1.91 1.69 0.73 7.41 0.78 34.38
8.04 1.88 - 0.72 - 0.77 25.91
7.96 2.10 - 0.58 - 0.70 27.11
7.92 2.09 - 0.68 - 0.71 26.42
8.05 2.07 - 0.60 - 0.80 25.15
8.02 2.07 - 0.69 - 0.85 25.24
7.91 2.05 - 0.68 - 1.05 25.35
233
CITY OF TIGARD,OREGON
PRINCIPAL PROPERTY TAXPAYERS
For current and nine years ago
2020 2011
Percentage Percentage
Taxable of Total City Taxable of Total City
Taxpayer Assessed Value Rank Assessed Value Assessed Value Rank Assessed Value
Pacific Realty Associates $ 244,944,654 1 3.48% $ 184,436,213 1 3.67%
PPR Washington Square LLC 145,744,282 2 2.07% 122,805,991 2 2.44%
Lincoln Center LLC 104,043,897 3 1.48% 81,818,120 3 1.63%
Polygon WLH LLC 57,093,200 4 0.81%
ICON Owner Pool 1 West LLC 48,519,890 5 0.69%
ROIC Oregon LLC 37,429,370 6 0.53%
Portland General Electric 37,414,606 7 0.53% 32,348,717 6 0.64%
Comcast Corporation 33,974,000 8 0.48% 28,124,200 7 0.56%
Washington Square Property Inv. LLC 28,864,700 9 0.41%
Arbor Heights Venture LLC 28,097,040 10 0.40%
Frontier Communications 58,229,000 4 1.16%
Walton CWOR Park LLC 38,203,140 5 0.76%
Northwest Natural Gas 26,811,900 8 0.53%
Constance Robinson(Trust) 24,405,830 9 0.49%
Macy's Department Stores 22,553,550 10 0.45%
Total $ 766,125,639 10.87% $ 619,736,661 12.33%
Source: Washington County Assessment&Taxation records.
234
CITY OF TIGARD,OREGON
PROPERTY TAX LEVIES AND COLLECTIONS
For the last ten fiscal years
Fiscal Percent Percent
Year Percent Delinquent Total Tax Outstanding Delinquent
Ended Total Tax Current Tax of Levy Tax Total Tax Collections Delinquent Taxes To
June 30 Levy Collections Collections Collections Collections To Tax Levy Taxes Tax Levy
2011 $ 13,995,535 $ 13,249,558 94.67% $ 385,213 $ 13,634,771 97.42% $ 567,082 4.05%
2012 15,594,066 14,835,580 95.14% 240,430 15,076,010 96.68% 737,903 4.73%
2013 15,878,914 15,161,562 95.48% 232,090 15,393,652 96.94% 704,610 4.44%
2014 16,326,904 15,532,675 95.14% 318,264 15,850,939 97.08% 740,392 4.53%
2015 16,999,999 16,251,269 95.60% 302,878 16,554,147 97.38% 713,889 4.20%
2016 17,261,106 16,496,169 95.57% 236,347 16,732,516 96.94% 775,731 4.49%
2017 18,145,192 17,322,014 95.46% 230,652 17,552,666 96.73% 857,408 4.73%
2018 18,484,904 17,649,531 95.48% 195,660 17,845,191 96.54% 851,931 4.61%
2019 19,292,388 18,519,287 95.99% 614,510 19,133,797 99.18% 308,522 1.60%
2020 19,872,169 19,065,112 95.94% 196,858 19,261,970 96.93% 329,386 1.66%
Taxes are levied as of July 1 each year and are payable in three installments,without interest,on November 15, February 15
and May 15. Interest is charged at the rate of 1%per month on delinquent taxes. Tax liens are foreclosed after three year's
delinquencies.Taxpayers receive a discount of 3%for payment in full by November 15 and 2%for payment of two thirds of
the total taxes due.
Source:Washington County Property Tax Schedule.
235
CITY OF TIGARD,OREGON
SPECIAL ASSESSMENT COLLECTIONS
For the last ten fiscal years
Fiscal Current Ratio of Total
Year Ended Assessments Assessments Collections Assessments Outstanding
June 30 Due(1) Collected(Z) to Amount Due Added Assessments
2011 $ 179,200 $ 40,164 22.41% - $ 854,377
2012 38,776 28,365 73.15% - 826,012
2013 62,500 118,888 190.22% 196,615 903,739
2014 457,983 457,983 100.00% - 445,756
2015 72,045 72,045 100.00% - 373,711
2016 77,392 77,392 100.00% - 296,319
2017 83,100 83,100 100.00% - 213,219
2018 89,000 89,000 100.00% - 124,219
2019 95,800 95,800 100.00% - 28,419
2020 28,419 28,419 100.00% - -
(1)This amount is equal to the matured principal on Bancroft improvement bonds.
(2)Represents collections of current assessments for payment of Bancroft improvement bonds as well
as assessment collections on projects for which such bonds have not been issued.
Source: City assessment records.
236
CITY OF TIGARD,OREGON
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR LONG-TERM
DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES
For the last ten fiscal years
Percent of
Fiscal Total General Debt Service to
Year Ended Total Debt Governmental Total General
June 30 Principal Interest Service Expenditures Expenditures
2011 $ 2,590,456 $ 67,294 $ 2,657,750 $ 60,751,684 4.37%
2012 1,894,126 1,652,691 3,546,817 38,298,698 9.26%
2013 1,992,500 1,264,795 3,257,295 39,451,387 8.26%
2014 2,445,993 1,178,637 3,624,630 42,537,796 8.52%
2015 2,117,045 1,118,238 3,235,283 45,417,258 7.12%
2016 2,361,892 1,059,733 3,421,625 45,829,009 7.47%
2017 2,378,100 977,539 3,355,639 44,873,250 7.48%
2018 2,454,000 892,206 3,346,206 47,760,052 7.01%
2019 2,530,800 799,646 3,330,446 48,840,173 6.82%
2020 8,843,419 673,634 9,517,053 54,412,727 17.49%
Source: Comprehensive Annual Financial Report of the City.
237
CITY OF TIGARD,OREGON
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND
NET BONDED DEBT PER CAPITA
For the last ten fiscal years
Gross General Less Debt Ratio of Net
Fiscal Obligation Service Net Bonded Debt Net Bonded
Year Ended Assessed Bonded Debt Monies Bonded to Assessed Debt Per
June 30 Population Value Outstanding Available Debt Value Capita
2011 48,035 $ 5,028,671,727 $ 25,655,000 $ 175,458 $ 25,479,542 0.51% $ 530.44
2012 48,415 5,159,064,332 30,735,000 263,629 30,471,371 0.59% 629.38
2013 48,695 5,281,797,406 29,397,612 592,612 28,805,000 0.55% 591.54
2014 50,444 5,467,180,620 27,504,927 532,328 26,972,599 0.49% 534.70
2015 50,787 5,710,010,309 24,990,106 722,540 24,267,566 0.43% 477.83
2016 51,253 5,907,590,736 22,862,084 971,579 21,890,505 0.37% 427.11
2017 51,902 6,123,501,297 20,675,137 1,117,556 19,557,581 0.32% 376.82
2018 53,697 6,451,869,864 18,419,297 1,263,130 17,156,167 0.27% 319.50
2019 53,450 6,766,067,829 16,094,594 1,510,969 14,583,625 0.22% 272.85
2020 53,450 7,046,400,810 19,870,531 1,948,178 17,922,353 0.25% 335.31
Source: City budget documents,Comprehensive Annual Financial Reports of the city and Washington Department of
Assessment and Taxation.
238
CITY OF TIGARD,OREGON
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30,2020
Percent Amount
Applicable Applicable
Net Debt Inside City of Inside City of
Jurisdiction Outstanding Tigard* Tigard
Tigard/Tualatin School District#23-J $ 332,910,939 46.82% $ 155,861,911
Metro 964,085,000 3.27% 31,535,220
Beaverton School District#48 955,103,871 3.84% 36,633,009
Portland Community College 575,107,061 412.00% 23,710,514
Washington County 213,232,118 10.27% 21,891,262
Tualatin Valley Fire&Rescue District 23,785,000 10.86% 2,583,360
Sub-Total of Overlapping Debt 3,064,223,989 272,215,276
City of Tigard 19,870,531 100.00% 19,870,531
Total for Overlapping Debt $ 3,084,094,520 $ 292,085,807
*The City of Tigard does not calculate this percentage; it is provided by the State of Oregon.
Source: Oregon State Treasury Debt Management Division.
239
CITY OF TIGARD,OREGON
COMPUTATION OF LEGAL DEBT MARGIN
For the last ten fiscal years
2011 2012 2013 2014
Debt limit $ 217,807,538 $ 207,504,714 $ 201,826,506 $ 210,982,614
Total net debt applicable to limit 32,300,000 30,735,000 28,800,576 26,820,000
Legal debt margin $ 185,507,538 $ 176,769,714 $ 173,025,930 $ 184,162,614
Total net debt applicable to the limit
as a percentage of debt limit 14.83% 14.81% 14.27% 12.71%
Note: Pursuant to Oregon Revised Statutes 223.295 outstanding general obligation debt is
limited to 3%real market value.
Source: Washington County Department of Assessment and Taxation.
240
2015 2016 2017 2018 2019 2020
$ 230,989,826 $ 242,482,552 $ 269,677,150 $ 296,512,995 $ 322,625,386 $ 322,625,386
24,775,000 22,670,000 20,505,000 18,269,800 15,965,000 19,840,000
$ 206,214,826 $ 219,812,552 $ 137,195,419 $ 278,243,195 $ 306,660,386 $ 302,785,386
10.73% 9.35% 7.60% 6.16% 4.95% 6.15%
Legal Debt Margin Calculation at June 30,2020
True cash value(2019-2020) $ 10,754,179,526
Limit as a percent 3%
Debt Limit(as a percent of real market value) 322,625,386
Debt applicable to limit:
Gross bonded debt $ 19,870,531
Excludable debt-Bancroft improvement bonds,bond premium,
capital lease and commercial bank loan (30,531)
Debt subject to limitation 19,840,000
Legal debt margin-amount available for future indebtedness 302,785,386
Total net debt applicable to the limit as a percent of debt limit 6.15%
241
CITY OF TIGARD,OREGON
RATIO OF DEBT BY TYPE
For the last ten fiscal years
Governmental Activities
Fiscal General Bank
Year Ended Obligation Bancroft Loan Capital
June 30 Population Bonded Debt Bonded Debt Payable Lease
2011 48,035 $ 32,597,213 $ 1,024,530 $ - $ -
2012 48,415 30,735,000 966,239 - -
2013 48,695 28,805,000 903,739 - 58,074
2014 50,444 27,059,171 445,756 - 58,074
2015 50,787 24,990,106 373,711 1,300,000 44,482
2016 51,253 22,862,084 296,319 1,170,000 30,290
2017 51,902 20,675,137 213,219 1,040,000 15,472
2018 52,785 18,419,297 124,019 910,000 -
2019 53,450 16,094,594 28,419 780,000 -
2020 54,520 19,870,531 - - -
*Revenue bonds issued for improvements to the Tigard Water Service Area(TWSA)are liabilities of the City of Tigard, but were not
issued as full faith and credit obligations. Debt service on these bonds will be paid by customers of TWSA,which includes residents in
the cities of Tigard,Durham and King City,and an unincorporated area of Washington County.
** Personal income is not available for the City of Tigard,so per capita income for Washington County is used.
Sources: City budget documents, Comprehensive Annual Financial Reports of the city and Washington County Deaprtment of
Assessment and Taxation.
242
Business-type Activities
Long-Term Percentage
Note Payable Notes Payable Revenue Total Primary of Personal Per
Debt Debt Bonds* Government Income** Capita
$ 270,925 $ 5,953,868 $ - $ 39,846,536 2.72% $ 830
- 2,398,000 105,367,290 139,466,529 9.44% 2,881
- 2,293,486 104,896,687 136,956,986 8.65% 2,813
- 2,201,107 104,896,686 134,660,794 7.92% 2,670
- 2,105,957 139,643,153 168,457,409 9.51% 3,317
- 2,007,952 139,003,308 165,369,953 9.00% 3,227
- 1,907,007 136,420,282 160,271,117 9.00% 3,088
1,803,034 133,775,926 155,032,276 8.45% 2,937
- 1,695,942 131,055,591 149,654,546 7.72% 2,800
- 1,585,637 128,254,644 149,710,812 7.03% 2,746
243
CITY OF TIGARD,OREGON
COMPUTATION OF WATER REVENUE BONDS
DEBT COVERAGE
For the last nine fiscal years(1)
2012 2013 2014
Gross revenues $ 11,895,043 $ 14,907,664 $ 16,079,753
System Development Charges(SDC) related:
SDC Fund interest earnings 3,590 4,746 -
Reimbursement fee receipts(2) 787,666 881,294 442,651
Improvement fee receipts(3) 376,412 660,425 389,460
Total SDC-related 1,167,668 1,546,465 832,111
Operating expense:
Salaries and wages 1,134,988 1,131,531 1,225,170
Contracted services 163,385 249,857 400,972
Water purchases 2,904,433 3,177,982 3,199,292
General, admin and other 1,168,191 2,316,605 2,548,678
Total operating expenses 5,370,997 6,875,975 7,374,112
Net revenues(including SDCs) 7,691,714 9,578,154 9,537,752
Net revenues(excluding SDCs) $ 6,524,046 $ 8,031,689 $ 8,705,641
Debt service-first lien bonds:
2012 bonds $ - $ 3,539,888 $ 4,719,850
2015 bonds - - -
Total debt service $ - $ 3,539,888 $ 4,719,850
Debt service coverage-first lien bonds
(excluding system development charges) N/A 2.27 1.84
(1) Revenue bonds were issued in May 2012 and February 2015. One of the debt covenants requires debt service
coverage(Net revenues divided by debt service)to be a minimum of 1.1x.
(2) Reimbursement fees may not be available to pay debt service on the 2012 Bonds until City Council takes action
to authorize that use of those fees for the projects.
(3) Improvement fees have been approved for the projects related to the Lake Oswego-Tigard Water Partnership.
Tigard anticipated approximately 85%of the bond proceeds to be used to finance projects related to the
Partnership and approximately 15%of the bond proceeds to be used to finance projects that are not directly
related to the partnership.
244
2015 2016 2017 2018 2019 2020
$ 18,944,301 $ 20,918,497 $ 20,926,322 $ 23,078,014 $ 23,751,073 $ 22,607,832
9,294 35,173 6,660 4,694 343,069 351,524
308,896 1,242,297 3,010,263 1,924,587 921,379 1,258,967
503,853 1,569,645 3,521,776 2,319,737 949,056 1,600,366
822,043 2,847,115 6,538,699 4,249,018 2,213,504 3,210,857
1,462,677 1,117,286 1,148,575 874,348 1,005,720 1,172,511
336,178 353,396 445,840 407,450 453,971 704,045
2,644,491 4,212,357 1,339,637 1,869,824 1,685,669 1,685,705
2,781,892 3,111,194 3,572,450 3,931,142 4,498,769 5,258,318
7,225,238 8,794,233 6,506,502 7,082,764 7,644,129 8,820,579
12,541,106 14,971,379 20,958,519 20,244,268 18,320,448 16,998,110
$ 11,719,063 $ 12,124,264 $ 14,419,820 $ 15,995,250 $ 16,106,944 $ 13,787,253
$ 4,719,850 $ 4,719,850 $ 6,561,800 $ 6,561,050 $ 6,563,750 $ 6,563,050
1,378,238 1,670,300 1,667,900 1,666,000 1,668,800
$ 4,719,850 $ 6,098,088 $ 8,232,100 $ 8,228,950 $ 8,229,750 $ 8,231,850
2.48 1.99 1.75 1.94 1.96 1.67
245
CITY OF TIGARD,OREGON
DEMOGRAPHICS STATISTICS
For the last ten fiscal years
Assessed Total Unemployment
Value Personal Rate
Fiscal of Taxable Income (Portland)
Year Ended Property School Per Capita (thousands Metropolitan
June 30 Population(1) Per Capita Enrollment(2) Income(3) of dollars)(3) Area(4)
2011 48,035 $ 107,402 12,688 N/A N/A 9.5%
2012 48,415 109,094 12,691 30,522 1,477,723 8.0%
2013 48,695 112,274 12,688 32,527 1,583,902 7.6%
2014 50,444 113,195 12,718 33,709 1,700,417 6.1%
2015 50,787 116,321 12,676 34,878 1,771,349 5.4%
2016 51,253 119,476 12,718 35,837 1,836,754 4.9%
2017 51,902 124,309 12,808 34,312 1,780,861 3.7%
2018 52,785 128,182 12,890 34,755 1,834,543 3.6%
2019 53,450 126,587 12,701 36,281 1,939,219 4.0%
2020 54,520 129,244 12,624 39,040 2,128,461 11.5%
Sources of Information:
(1)Portland State University Population Research Center
(2)Tigard/Tualatin School District#23-J -City student totals not available
(3)Washington State University-Northwest Income Indicators Project
(4)US Department of Labor, Bureau of Labor Statistics
246
CITY OF TIGARD,OREGON
PRINCIPAL EMPLOYERS
For current year and nine years ago
2020 2011
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Tigard-Tualatin School District#23-J 779 1 2.71% 724 1 2.56%
Macy's Department Stores 503 2 1.75% 704 2 2.49%
Nordstrom 474 3 1.65% 579 3 2.05%
Consumer Cellular 453 4 1.58%
Costco Wholesale Corporation 419 5 1.46% 300 7 1.06%
Conduent Commercial Solutions LLC 367 6 1.28%
City of Tigard 328 7 1.14% 267 8 0.95%
Comcast 302 8 1.05%
Luke-Dorf Inc. 256 9 0.89%
Target Store 252 10 0.88%
Oregon Public Employees Retirement 396 4 1.40%
Providence Health System 377 5 1.34%
HSBC Card Services 301 6 1.07%
University of Phoenix 256 9 0.91%
Veris Industries LLC 248 10 0.88%
Total 4,133 14.40% 4,152 14.71%
Source: City of Tigard Adopted Budget
247
CITY OF TIGARD,OREGON
PROPERTY VALUE AND CONSTRUCTION
For the last ten fiscal years
Fiscal Commercial Construction 111 Residential Construction(1)
Year Ended Number of Number of
June 30 Permits Value Permits Value
2011 5 $ 837,655 113 $ 28,150,102
2012 5 2,589,566 104 27,794,839
2013 8 20,053,155 174 41,954,242
2014 9 24,964,563 72 21,410,225
2015 10 31,518,023 280 45,546,665
2016 5 18,381,597 242 81,847,774
2017 7 12,874,739 450 156,457,972
2018 12 43,256,706 339 147,036,484
2019 12 68,338,543 205 83,341,594
2020 5 16,986,000 170 55,073,502
(1)From City of Tigard Building Department. Multi-family permits are included in the number of permits issued for
residential construction.
248
CITY OF TIGARD,OREGON
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
For the last ten fiscal years
Function/Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
GOVERNMENTAL ACTIVITIES
Community services
Police 90.10 91.10 84.50 84.50 82.50 83.50 87.50 88.50 84.50 85.00
Library 38.80 38.80 34.80 34.80 34.80 38.30 39.70 40.90 38.80 39.20
Public works
Administration 9.75 8.75 9.00 9.20 9.20 9.00 9.50 9.75 9.00 9.95
Parks maintenance 9.75 9.75 9.75 9.75 10.75 11.67 12.17 10.40 10.50 12.50
Recreation - - - - - - 0.33 2.35 1.00 2.35
Street maintenance 7.00 7.00 7.00 7.25 7.25 6.33 7.00 7.45 7.50 8.25
Healthy Streams - - 1.00 - - - - - - -
Engineering 11.80 11.80 12.00 13.00 14.00 14.00 17.00 19.00 19.00 20.00
Community development
Administration 2.00 3.00 2.00 2.00 2.00 3.00 3.00 3.00 3.00 3.00
Building inspection 7.20 8.10 7.80 8.80 9.00 9.00 13.00 13.00 13.60 14.10
Development Services(a) 7.80 5.90 4.80 3.80 3.80 3.80 - - - -
Community Planning 7.00 9.00 9.00 9.00 9.00 9.00 13.50 13.50 12.65 12.65
Development Engineering(b) - - - - - - - - - -
Economic Development 1.00 1.50 1.00 2.00 2.00 2.00 2.00 3.00 2.00 3.00
Policy and Administration
City management 4.50 4.20 4.00 4.00 5.00 5.50 4.90 5.90 3.90 3.90
City attorney(`) - - - - - - - - 1.10 1.10
Human resources 5.00 5.00 4.80 4.80 4.50 4.80 4.50 4.34 4.14 4.14
Information technology 7.00 7.00 6.30 5.80 7.00 7.00 8.00 9.00 9.00 12.00
Risk management 2.30 2.30 2.10 2.10 2.10 2.30 1.50 1.76 1.76 2.06
Finance administration 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.50 3.00 3.00
Financial operations 4.50 4.50 4.60 4.60 4.60 4.60 4.80 5.30 4.80 4.80
Utility Billing 5.50 6.30 6.50 6.80 6.80 6.80 6.80 7.20 7.20 7.70
Design&Communication 3.05 3.25 3.05 3.05 3.05 3.05 4.25 4.75 4.75 5.35
Contracts&Purchasing(d) 2.30 2.30 1.80 2.00 2.00 2.00 2.00 2.00 2.00 2.50
City Recorder/Records 3.25 3.35 4.15 4.15 4.15 3.35 3.85 3.85 3.85 3.25
Municipal court 3.75 3.75 3.65 3.65 3.65 3.65 3.50 3.50 3.50 6.50
Fleet maintenance(e) 2.60 2.60 1.50 0.95 1.95 1.80 2.35 2.85 2.60 2.60
Property management(e) 4.25 4.25 3.75 3.85 4.85 5.20 4.90 6.55 6.65 6.65
BUSINESS-TYPE ACTIVITIES
Public works
Sanitary sewer 5.25 6.25 6.25 6.50 5.50 6.00 6.50 6.25 6.25 5.50
Stormwater 7.00 6.25 5.25 5.50 6.50 7.00 7.50 9.00 8.25 5.75
Water 12.00 12.75 12.50 12.00 13.00 13.00 13.00 11.25 12.50 14.05
Green team - - - - - - - - - 4.00
Total 267.45 271.75 255.85 256.85 261.95 268.65 286.05 297.85 286.80 304.85
Source: City of Tigard Finance Department
(a) Development services was budgeted with Building in FY 2016-17.
(b) Development Engineering was budgeted with Capital Construction&Transportation as Engineering until FY 2006-07.
(`) City attorney was changed from a contract to an employee in FY 2017-18.
(d) Contracts&Purchasing was budgeted with Finance administration until FY 2010-2011.
(e) Fleet/Property Management budgeted with Public Works until FY 2015-16.
249
CITY OF TIGARD,OREGON
OPERATING INDICATORS BY FUNCTION/PROGRAM
For the last ten fiscal years
Functions/Programs 2011 2012 2013
GOVERNMENTAL ACTIVITIES
Community services
Police-number of traffic citations issued* 7,021 8,308 8,939
Police-number of calls for service* 49,358 52,226 52,420
Library-number of items in collection 237,110 244,154 250,454
Library-materials checked out each year 1,507,248 1,522,422 1,459,334
Public works
Acres of park land maintained 233 243 248
Crack sealing completed annually(linear feet) 160,000 160,000 160,000
Vehicles maintained to industry standard 149 149 148
Community development
Number of inspections(Tigard) 9,990 10,000 12,500
Number of permits(all types)in Tigard 3,220 3,047 3,049
Number of development applications 370 381 357
Policy and administration
Number of job applications 1,000 1,100 2,500
Laptops and computers to maintain 491 491 503
Insured value of city's real property**** (in millions) $ 82 $ 82 $ 82
Number of utility bills sent** 176,274 236,389 238,400
Average fine amount collected $ 126 $ 126 $ 140
BUSINESS-TYPE ACTIVITIES
Sewer
Miles of sewer lines cleaned 41 41 42
Miles of sewer lines video inspected 23 23 24
Stormwater
Miles of stormwater lines cleaned 31 31 32
Number of water quality facilities improved*** 90 90 125
Total number of catch basins cleaned*** 4,368 4,368 2,768
Water
Number of accounts 18,129 18,265 18,350
*Data tracked on a calendar year. Data present is as of the previous December 31st.
**City of Tigard started monthly utility billing in January 2011.
***GIS data improvement
**** Includes value of contents of buildings.
Source: City of Tigard Finance Department
250
2014 2015 2016 2017 2018 2019 2020
7,177 6,462 5,745 5,057 5,260 5,972 5,167
48,840 47,247 43,299 41,874 42,075 42,482 38,810
245,000 248,225 253,725 229,344 238,919 220,877 222,438
1,385,376 1,280,376 1,243,774 1,159,446 1,227,561 1,216,642 1,310,382
253 255 301 301 305 306 311
160,000 160,000 160,000 107,727 262,659 92,400 521,298
157 160 146 162 152 156 164
12,382 9,009 10,814 27,551 25,793 17,540 18,736
3,404 2,958 3,860 4,281 4,189 3,776 3,384
341 251 388 818 843 876 875
2,000 2,100 2,200 3,726 2,605 3,393 2,503
523 525 530 585 593 601 702
$ 82 $ 82 $ 82 $ 120 $ 122 $ 129 $ 130
241,500 244,000 256,500 248,560 254,150 258,252 260,260
$ 140 $ 160 $ 160 $ 149 $ 133 $ 119 $ 109
42 42 42 51 57 59 63
21 21 24 23 29 30 25
21 21 21 23 20 26 21
126 126 126 133 138 143 152
2,840 2,840 2,917 3,939 2,620 2,737 2,864
19,207 19,737 20,500 21,509 21,764 21,920 22,020
251
CITY OF TIGARD,OREGON
CAPITAL ASSETS STATISTICS BY FUNCTION
For the last ten fiscal years
Functions/Programs 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
GOVERNMENTAL ACTIVITIES
Community services
Police stations 1 1 1 1 1 1 1 1 1 1
Library buildings 1 1 1 1 1 1 1 1 1 1
Public works
Number of parks 14 18 20 20 20 20 21 24 24 29
Acres of park and greenspaces 435.4 447.0 493.0 499.0 514.0 514.0 548.0 552.0 553.0 558.0
Miles of streets 150.0 150.0 150.0 150.0 150.0 150.0 157.0 175.7 175.7 189.7
Policy and administration
City-owned building facilities 5 5 5 5 5 5 5 5 5 5
BUSINESS-TYPE ACTIVITIES
Sewer
Total miles of sanitary sewer lines 164.5 166.1 166.9 166.9 166.9 168.0 168.3 168.5 168.7 168.7
Stormwater
Total miles of stormwater lines* 131.0 131.0 126.0 130.0 130.0 130.0 131.2 131.8 136.7 135.1
Number of water quality facilities* 92 92 125 126 126 126 164 210 240 240
Water
Water mains in miles 245.0 248.0 248.0 248.0 248.0 248.0 251.3 251.3 260.0 260.0
Number of reservoirs 13 13 13 13 13 14 14 14 14 14
Source:City of Tigard Finance Department
*GIS data improvement
252
CITY OF TIGARD,OREGON
MISCELLANEOUS STATISTICAL DATA
June 30,2020
Date of Incorporation 1961
Mayor/Council with a City Manager as the administrative head of the
Form of government
government of the City
Area(Square Miles-incorporated area) 12.2
Miles of streets 190
Police protection:
-Number of stations 1
-Number of sworn police officers 63
Education:
- Attendance centers 16
-Number of teachers\FTE 770
-Number of students 12,624
Building Permits issued (2019-2020) 665
Recreation and culture:
-Number of parks 29 developed and 7 underdeveloped,totaling 36 at 311 acres
-Greenways 247 acres
-Number of libraries 1
-Number of volumes(estimated) 222,438
Employees:
-Classified service(union) 185
-Unclassified(non-union) 125
Information obtained from the various departments of the City of Tigard and Tigard/Tualatin School District#23-.I
City student totals not available.
253
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Audit Comments and
Disclosure Requirements
255
256
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257
MOSSADAMS
Report of Independent Auditors on Compliance and on Internal Control Over
Financial Reporting Based on an Audit of Financial Statements Performed in
Accordance with Oregon Minimum Audit Standards
City Council
City of Tigard, Oregon
We have audited the basic financial statements of the City of Tigard, Oregon (City) as of and for the
year ended June 30, 2020, and have issued our report thereon dated December 3, 2020. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America, the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, and the provisions of the Minimum Standards
for Audits of Oregon Municipal Corporations, prescribed by the Oregon Secretary of State. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether
the basic financial statements are free from material misstatement.
Compliance
As part of obtaining reasonable assurance about whether the City's basic financial statements are
free from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, grants, including provisions of Oregon Revised Statutes as specified in Oregon
Administrative Rules OAR 162-010-0000 to 162-010-0330, as set forth below, noncompliance with
which could have a direct and material effect on the determination of financial statement amounts:
Instances of
Non-Compliance
OAR Section Identified?
162-010-0000 Preface None Noted
162-010-0010 Definitions None Noted
162-010-0020 Introduction None Noted
162-010-0030 General Requirements None Noted
162-010-0050 Financial Statements None Noted
162-010-0115 Required Supplementary Information(RSI) None Noted
162-010-0120 Other Supplementary Information None Noted
162-010-0130 Schedule of Revenues,Expenditures/Expenses,and Changes in Fund Balances,/Net None Noted
Assets,Budget and Actual(Each Fund)
162-010-0150 Schedule of Property Tax Transactions or Acreage Assessments None Noted
162-010-0160 Schedule of Bonded or Long-Term Debt Transactions None Noted
162-010-0170 Schedule of Future Requirements for Retirement of Bonded or Long-Term Debt None Noted
162-010-0190 Other Financial or Statistical Information None Noted
162-010-0200 Required Disclosures and Independent Auditors Comments None Noted
162-010-0230 Accounting Records and Internal Control None Noted
162-010-0240 Public Fund Deposits None Noted
162-010-0250 Indebtedness None Noted
162-010-0260 Budget None Noted
162-010-0270 Insurance and Fidelity Bonds None Noted
162-010-0280 Programs Funded from Outside Sources None Noted
162-010-0295 Highway Funds None Noted
162-010-0300 Investments None Noted
162-010-0310 Public Contracts and Purchasing None Noted
162-010-0320 Other Comments and Disclosures None Noted
258
However, providing an opinion on compliance with those provisions was not an objective of our audit
and, accordingly, we do not express such an opinion. The results of our test disclosed no instances of
noncompliance that are required to be reported under Minimum Standards for Audits of Oregon
Municipal Corporations, prescribed by the Oregon Secretary of State.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting
(internal control)to determine the audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinion on the financial statements, but not for the purpose of expressing
an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we
do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the City's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal control
that might be deficiencies, significant deficiencies or material weaknesses. Given these limitations,
during our audit we did not identify any deficiencies in internal control over financial reporting that we
consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and do not provide an opinion on the effectiveness of the
City's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the
Oregon Secretary of State, in considering the City's internal control and compliance. Accordingly, this
communication is not suitable for any other purpose.
J L. 'L/ -
James C. Lanzarotta, Partner
for Moss Adams LLP
Portland, Oregon
December 3, 2020
259
® MOSSADAMS
Report of Independent Auditors on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
The City Council
City of Tigard, Oregon
Tigard, Oregon
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business-type activities, each major fund, and the aggregate remaining
fund information of the City of Tigard, Oregon (the City) as of and for the year ended June 30, 2020,
and the related notes to the financial statements, which collectively comprise the City's basic financial
statements, and have issued our report thereon dated December 3, 2020.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control)to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal
control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the City's financial statements will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify
any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
260
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Y"104Q /4,6 °HCl
Portland, Oregon
December 3, 2020
261