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2014-2015 City of Tigard Annual BudgetAdopted Budget 13125 SW Hall Boulevard | tigard, oR 97223 | www.tigard-or.gov FISCAL YEAR 2014–2015 CITY OF TIGARD, OREGON FY 2014-15 ADOPTED BUDGET BUDGET COMMITTEE Bill Bigcraft Mayor John L. Cook Don Fisher Councilor Gretchen Buehner Melody Graeber Councilor Marland Henderson Julie Plotz Councilor Jason Snider Clifford Rone Councilor Marc Woodard Timothy Esau, Alternate CITY EXECUTIVE STAFF City Manager Marty Wine Assistant City Manager Liz Newton Chief of Police Alan Orr Community Development Director Kenny Asher Finance and Information Services Director Toby LaFrance Human Resources Director Dana Bennett Library Director Margaret Barnes Interim Public Works Director Brian Rager Assistant to the City Manager/Risk Manager Loreen Mills City Attorney Jordan Ramis PC Prepared by the following City of Tigard Staff: Marty Wine, City Manager Liz Newton, Assistant City Manager Toby LaFrance, Finance & Information Services Director Debbie Smith-Wagar, Assistant Finance Director Amy Lawson, Accounting Supervisor Carissa Collins, Senior Management Analyst Liz Lutz, Confidential Executive Assistant A special thank you to departments and staff for their contributions to the Budget Document www.tigard-or.gov The Government Finance Officers Association of the United States and Canada (GFOA) present- ed an award of Distinguished Budget Presentation to the City of Tigard for its annual budget for the fiscal year beginning July 1, 2013. In order to receive the award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a commu- nication device. The award is valid for a period of one year only. We believe our current budget continues to con- form to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. TABLE OF CONTENTS INTRODUCTION 2014-2015 Budget Transmittal....................................................................................................1 Council Goals...............................................................................................................................5 City Information...........................................................................................................................7 Citywide Organization Chart - By Program...........................................................................10 City of Tigard Map.....................................................................................................................11 READER’S GUIDE User’s Guide to the Budget Document..................................................................................13 Budget Process...........................................................................................................................17 Basis of Budgeting......................................................................................................................20 Fund Structure............................................................................................................................21 Program Budget Structure........................................................................................................22 BUDGET SUMMARY Where The Money Comes From.............................................................................................25 Where The Money Goes...........................................................................................................26 Fund Balance..............................................................................................................................30 Ending Fund Reserves Summary by Fund.............................................................................31 Summary of All Funds...............................................................................................................32 Summary of Contingency..........................................................................................................37 Funding Matrix...........................................................................................................................38 Comprehensive Long Term Financial Forecast....................................................................48 REVENUE ANALYSIS Current Revenue Summary by Fund.......................................................................................59 General Fund..............................................................................................................................60 Assessed Value............................................................................................................................61 Property Tax Summary..............................................................................................................62 State Revenue Sharing...............................................................................................................63 Franchise Fee..............................................................................................................................65 Enterprise Funds - User Fees...................................................................................................67 Connection Fees.........................................................................................................................68 Permit Fee Revenue...................................................................................................................69 County Shared Revenue............................................................................................................70 Fine and Forfeiture Revenue....................................................................................................71 Interest Earnings........................................................................................................................72 Interfund Transfers....................................................................................................................73 PROGRAM SUMMARIES Expenditure Summary by Program........................................................................................ 81 Operating Budget History Summary...................................................................................... 82 Operating Budget History........................................................................................................ 83 Staffing Levels............................................................................................................................ 86 COMMUNITY SERVICES PROGRAM Community Services Organization Chart.............................................................................. 89 Expenditure/FTE Summary ................................................................................................... 91 Police Organization Chart/FTE Summary................................................................................ 92 Police Administration........................................................................................................ 93 Police Operations.............................................................................................................100 Police Support Services ........................................................................................106 Library Organization Chart/FTE Summary..............................................................................114 Library Administration ....................................................................................................115 Library Reader Services...................................................................................................121 Library Technical Services...............................................................................................125 Library Circulation ...............................................................................................128 Social Services and Community Events .........................................................................132 PUBLIC WORKS PROGRAM Public Works Organization Chart.........................................................................................135 Expenditure/FTE Summary .................................................................................................137 Public Works Public Works Administration.........................................................................................138 Parks and Grounds...........................................................................................................143 Street Maintenance...........................................................................................................150 PW Engineering................................................................................................................155 Healthy Streams................................................................................................................160 Fleet Maintenance.............................................................................................................161 Property Management......................................................................................................163 Water..................................................................................................................................168 Sanitary Sewer...................................................................................................................173 Stormwater ........................................................................................................................177 Street Lights and Signals..................................................................................................182 COMMUNITY DEVELOPMENT PROGRAM Community Development Organization Chart..................................................................185 Expenditure/FTE Summary .................................................................................................187 Community Development Community Development Planning...............................................................................188 Building ..............................................................................................................................195 Economic Development..................................................................................................200 Development Services......................................................................................................206 Community Planning........................................................................................................208 POLICY AND ADMINISTRATION PROGRAM Policy and Administration Organization Chart...................................................................211 Expenditure/FTE Summary..................................................................................................212 Mayor & Council Organization Chart............................................................................................................213 City Management Organization Chart/FTE Summary ..............................................................................218 City Manager’s Office ......................................................................................................219 Human Resources ............................................................................................................223 Risk Management .............................................................................................................227 Administrative Services Organization Chart/FTE Summary...............................................................................231 Design & Communications.............................................................................................232 Municipal Court.................................................................................................................236 City Recorder/Records.....................................................................................................240 Finance and Information Services Organization Chart/FTE Summary...............................................................................245 Finance and Information Services Administration......................................................246 Financial Operations.........................................................................................................250 Utility Billing .....................................................................................................................253 Information Technology..................................................................................................256 Contracts and Purchasing ................................................................................................260 CAPITAL IMPROVEMENT PLAN Capital Improvement Plan Executive Summary.................................................................265 Impact of Capital Improvement Plan on Operating Costs ...............................................267 Prioritization and Development of the CIP.........................................................................271 Streets.........................................................................................................................................275 Parks...........................................................................................................................................292 Water..........................................................................................................................................307 Sanitary Sewer...........................................................................................................................320 Stormwater................................................................................................................................331 Facilities.....................................................................................................................................341 DEBT SERVICE Debt Service.............................................................................................................................343 Debt Service Summary...........................................................................................................344 Outstanding Debt Issues........................................................................................................345 Debt Service Schedules General Obligation Bond-Library.........................................................................................346 General Obligation Bond-Parks............................................................................................347 General Obligation Bonds Summary ...................................................................................348 Tigard Transportation Build America Bond.......................................................................349 Tigard Transportation Build America Bond Summary......................................................350 Assessment-69th Avenue Local Improvement District....................................................351 Assessment-Bancroft Improvement Bonds Summary ......................................................352 Water Revenue Debt-Water Revenue Bond .......................................................................353 Water Revenue Debt-ARRA Water Loan...........................................................................354 Water Revenue Debt Summary.............................................................................................355 FUND SUMMARIES Fund Summaries Introduction..............................................................................................357 General Funds General Fund....................................................................................................................358 Enterprise Funds Sanitary Sewer Fund.........................................................................................................362 Stormwater Fund..............................................................................................................364 Water Quality/Quantity Fund........................................................................................365 Water Fund........................................................................................................................366 Water CIP Fund................................................................................................................369 Water Debt Service Fund ...............................................................................................371 Water SDC Fund .............................................................................................................373 Special Revenue Fund Building Fund ...................................................................................................................373 City Gas Tax Fund...........................................................................................................375 Criminal Forfeiture Fund ...............................................................................................376 Electrical Inspection Fund..............................................................................................377 Gas Tax Fund ..................................................................................................................378 Library Donations & Bequests Fund.............................................................................380 Parks Bond ........................................................................................................................381 Parks SDC Fund...............................................................................................................382 Street Maintenance Fund.................................................................................................383 Traffic Impact Fee............................................................................................................384 Transportation Development Tax.................................................................................385 Urban Forestry Fund .......................................................................................................386 Underground Utility Fund...............................................................................................387 Debt Service Fund Bancroft Debt Services Fund......................................................................................... 388 General Obligation Debt Service Fund........................................................................ 389 Capital Projects Fund Facilities Capital Projects Fund ..................................................................................... 390 Parks Capital Fund .......................................................................................................... 391 Transportation CIP Fund................................................................................................ 392 Internal Services Funds Central Services Fund ..................................................................................................... 393 Fleet/Property Management Fund ............................................................................... 395 Insurance Fund................................................................................................................. 396 APPENDIX Schedule of Appropriations................................................................................................... 397 Financial Policies..................................................................................................................... 407 Glossary of Budget Related Terms....................................................................................... 414 Advisory Committees............................................................................................................. 418 Staffing Summary.................................................................................................................... 421 Management/Professional Group Salary Schedule............................................................ 423 Tigard Police Officers Assn. Salary Schedule ..................................................................... 427 Oregon Public Employees Union Salary Schedule............................................................ 428 City of Tigard | ADOPTED BUDGET | FY 2014–2015 Tigard Skate Park, located near Tigard City Hall. Photo by SkateOregon INTRODUCTION - PAGE 1 FY 2014-2015 BUDGET TRANSMITTAL Message to the Budget Committee and the Residents of Tigard I am pleased to present an adopted FY 2015 budget that is balanced and moves Tigard sustainably for- ward to the future. Meeting Challenges As we emerge from a period of economic recession, a theme remains that Tigard has to continue to work toward achieving financial sustainability, which requires more than balancing existing resources and requirements for a single year, or aligning demands for city services with resources available. The city has set a goal of financial stability, defined as a three- to five-year path to sustain financial reserves adequate to cover the city’s cash flow and costs until we receive property taxes each year. These finan- cial practices have been rewarded and recognized by Standard and Poor’s increasing the city’s bond rating to AA+, the second highest rating possible. The city’s bond rating is like an individual’s credit rating where it takes years of consistent diligence to achieve a high rating; but only one or two mistakes can create a negative result. In their rating report, Standard and Poor’s states that “Tigard’s manage- ment conditions are strong” and that “the city’s economy is very strong.” The agency praised Tigard’s “budgetary flexibility,” citing Tigard’s willingness to make service reductions when financially necessary and that “we view Tigard’s budgetary performance to be strong overall.” In last year’s budget, I outlined how much Tigard has to do to maintain and operate our current and future public spaces and facilities. This budget begins to find resources for the operation and mainte- nance of these properties. In addition, I noted the need to reflect the infrastructure needs that our growth demands. An additional challenge this budget begins to meet is to invest in the long term goals of the city. This year, Tigard launched a strategic planning vision to be the most walkable community in the Pacific Northwest where people of all ages and abilities live healthy and interconnected lives. While there are many steps to be taken to move toward the vision and goals, including a two-way dialogue with the Tigard community to con- firm this path, having a strategic plan for Tigard is the first step to being more focused with resources to move the community forward. The Five-Year Forecast Tigard maintains its policy commitment to recognize the balance between revenue and expenses in the FY 2015 budget by maintaining adequate reserves, realistically estimating revenues, controlling expens- es, and auditing financial records. Tigard has almost $30M in General Fund resources to spend annually to provide the services our residents desire. In addition, Tigard has $10 million in General Fund re- serves. Seven (7) million dollars of this amount is a minimum financial reserve to be able to manage the timing of property tax revenue collections (representing 25% of FY 2016’s forecasted expenditures). We maintain that share of required ending fund balances through 2019, though the amount above the required minimum is forecasted to shrink. Departments were requested to prepare level budgets, mean- ing the current service level with no major changes is the starting point for the budget. Also, through the collective bargaining agreement reached recently with SEIU/OPEU Local 503, the forecast period 2015-2019 begins to reflect slower growth in health insurance costs, a primary contributor to historic budget growth. PAGE 2 - CITY OF TIGARD FY 2014-2015 BUDGET TRANSMITTAL Generally, Tigard’s other funds are forecasted to perform well. Funds that depend on development are starting to recover with the modest uptick in development activity. The city is facing challenges in our funds that are dedicated to transportation and parks. These service areas have a high level of de- mand for community projects and very limited funding. The Capital Improvement Plan in this adopt- ed budget makes full use of those resources. An exception is Tigard’s Sanitary Sewer Fund. Tigard is responsible for maintaining local sewer lines; however, sewer revenues have not kept up with increasing costs of maintaining this vital infrastructure. Without a change, the fund balance will be negative in three years. Sewer rates and the city’s share of the revenues are set by the region’s sewer provider, Clean Water Services. The City of Tigard is the only city inside of CWS’s service area that hasn’t implemented, or is currently pursuing, a sewer sur- charge. The Budget Committee reviewed the services and found that an expenditure reduction would put Tigard in danger of violating environmental rules and has instructed staff to explore local sewer revenue to ensure safe revenue services. FY 2015 Highlights: How Tigard will Invest Resources The adopted budget contains three types of investments for the coming fiscal year. First, there are some changes that by virtue of our partnerships, legal or contractual requirements, that we have to in- vest in. Next, there are resources added to some programs that will increase the long-term efficiency of city operations. Finally, we will begin to make investments that advance the community priorities re- flected in the community survey, and the goals and vision of the city’s first Strategic Plan. The first set of investments include required or otherwise necessary changes. These include increases in the cost of legal advisory and consultation services that are budgeted in the city recorder’s office, which have increased with the frequency of ballot measures Tigard has experienced in recent years. Tigard will also convert the funds for temporary help with managing our fleet, property management, and parks to permanent staff positions to meet the requirements of our collective bargaining agree- ment with SEIU. Washington County Consolidated Communications Agency (public safety communi- cations) cost increases are also anticipated that we must pay the city’s share for this regional service. Finally, funding is reserved in contingency for Tigard’s share of the Draft Environmental Impact State- ment for the Southwest Corridor Project. With Tigard voters’ approval of Measure 34-210 on March 11, 2014, the city’s charter requires voter approval to advance future high-capacity transit options. In order to bring any future proposal to voters, city will need to continue to be part of planning regional- ly. Next, Tigard will make a series of one-time investments, some planned over two years that improve our services to the public by improving how city employees do our work. These include the replace- ment of the city’s phone system, and public safety equipment including radios, motorcycles, and tech- nology for police computers. Another one-time investment that allows library materials to be checked in immediately upon return is automated materials handling. This equipment decreases the staff time required for manual materials check-in, and reduces the lag time that patrons experience when they return materials, turning them around for quicker use. INTRODUCTION - PAGE 3 FY 2014-2015 BUDGET TRANSMITTAL Finally, in 2014 Tigard launched a vision to be the most walkable community in the Pacific Northwest where people of all ages and abilities live healthy and interconnected lives. In creating this vision and our first strategic plan, the city will aim for four goals that will continue to develop with the communi- ty’s input.  Facilitate walking connections to develop an identity  Ensure development advances the vision  Engage the community through dynamic communication  Fund the vision while maintaining core services In order to get started to achieve these goals, the budget suggests a park maintenance study to help us identify how to responsibly care for the lands we have acquired for future parks. The creation of a mainly electronic format of the monthly Cityscape newsletter will allow the conversion of professional services into a staff position to support centralized city communication functions. The budget supple- ments our GIS (geographic information systems) support; and a small financial reserve is established to help with advancing an early inventory of improvements to walkability. And finally, this budget will start a General Fund reserve (starting at $1,000,000). When fully funded, this reserve is intended to fund services to allow for bridging any future economic downturn without service interruption. This achieves a lot to begin to achieve longer-term financial stability and sets the right balance for funding our strategic plan vision while maintaining core services. Capital Improvement Program This Capital Improvement Program (CIP) is aggressive in accomplishing high priority projects over the next five years. The city continues to refine the project prioritization process. As we have in prior years, city staff used volunteer committees to help with project prioritization. This year, the results of the prioritization process was also presented and vetted by the Budget Committee. The adopted CIP maximizes our available resources, especially in transportation and parks where funds supporting the city’s capital investment are being entirely used or stretched thin. The result is a CIP with the maxi- mum number of projects that also presents some amount of risk that staff must carefully manage. If revenues do not match our projected expectations, or if project costs are higher than expected, it may result in CIP projects being downsized or deferred to the future. Another key aspect of this CIP is that we are starting to prepare for the infrastructure needs in the newly annexed area of River Terrace located on the western end of the city. This CIP includes the ini- tial known projects that Tigard will need to prepare for development, including: design of the Cach Reservoir Pump Station; two projects to extend the water and sewer lines along Barrows Rd/Scholls Ferry, and undesignated park funds to help acquire and develop park land in River Terrace. The community planning process is underway, and the adopted community plan will include a list of all the needed infrastructure projects and their costs. In addition, the plan includes a financing strategies plan that will delineate financial responsibilities for Tigard, and for regional partners and developers. When that is complete, we will know what projects will need to be added to our CIP. If those projects do not come with additional funding sources, we will need to balance current priorities with the needs of the newest part of Tigard. This means the next five year CIP may look different than what we know today. PAGE 4 - CITY OF TIGARD FY 2014-2015 BUDGET TRANSMITTAL Conclusion This budget advances the ambitious long-term goals of the city in a fiscally conservative way. The city will continue to provide vital core services such as public safety, library services, thoughtful planning, and maintenance of our infrastructure investments. In addition, we will begin the incremental chang- es to advance the vision of the strategic plan. Respectfully submitted, Marty Wine City Manager INTRODUCTION - PAGE 5 COUNCIL GOALS Goal/Milestone Water Lake Oswego-Tigard Water Partnership Negotiate/proceed with water purchase from Lake Oswego Renegotiate LOTWP Intergovernmental Agreement (IGA) to reflect structure and man- agement post-construction (evaluate future of partnership roles) LOTWP bond sale (#2) Monitor progress of construction and budget; LOTWP projects operational Develop Willamette River Water Sources Rewrite WRWC member contract Continue to consider other sources: Sherwood, TVWD (studies) Develop “roadmap” for Tigard’s future water decisions through 2026 Intergovernmental Water Board Work plan for, and next governance agreements with, Tigard Water District, Durham, King City (expires 2017) Communicate with Tigard residents about rate impacts/outreach regarding potential increas- es River Terrace Park land acquisition (strategy, funding, land dedication) Complete Community Plan, zoning, adopted master plans Building permits issued; development begins Service delivery planning Tigard Triangle Complete Triangle Strategic Plan Adopt zoning, street and design standards Begin implementing plan strategies Southwest Corridor Determine modes and alignment for study in federal EIS process Determine regional route segments Participate in federal EIS process (regional partner, financial) Recreation (Evaluate options and resources to create a pilot recreation program) Complete demand analysis for recreation opportunities Compare recreation inventory with demand analysis to identify needs/gaps Council decision on city role (direct delivery provider, contract/partnerships with others, funding source) Implement a new recreation effort based on role Economic Development Develop and adopt strategic priorities, resources, design program Data collection and understanding the economic base Community Engagement Redesign community survey effort to include regular two-way communication efforts (based on Fall, 2013 survey results) Continue 3-4 quarterly open forums to engage residents/neighborhood groups PAGE 6 - CITY OF TIGARD COUNCIL GOALS Community education efforts; develop fiscal report card (Blue Ribbon Task Force recom- mendation) Develop Tigard’s community identity Downtown Urban renewal ballot measure: Tigard voters clarify authority/projects Strategy for redevelopment of city-owned property Resolve composition of CCDA (pros and cons: CCDA, CCAC, Econ Dev Commission to make it a development agency) Main St./Green St. Construction Continue Downtown Plaza Site acquisition and design approval (contingent on site acqui- sition) Continue Tigard St. Trail negotiation, design and development Finalize downtown redevelopment opportunities (if issues can be addressed) Advance options for rail crossing “trade” for Ash Avenue at-grade crossing Explore Pacific Highway Urban Renewal District options Growth/Annexation Successfully complete River Terrace Community Plan Reconsider and agree to annexation policy: reauthorize financial incentives as needed; consider islands and remainder of Bull Mountain; incentives for voluntary annexation; timeline for Washington County Develop planning and timeline together with Washington County for future annexations (Bull Mountain, Metzger) Update annexation fiscal analysis (from 2004) Consider annexation of urban reserves for employment land Finance Represent Tigard at the regional, state and federal level to advocate for tax reform and other funding opportunities Review city facilities strategy and develop options for repair and replacement (“good, bet- ter, best”) Seek voter-approved measure for major investment (capital, parks, etc.) INTRODUCTION - PAGE 7 CITY INFORMATION Form of Government: The City of Tigard was incorporated in 1961. An elected Mayor and four Council members who comprise the City Council govern the City of Tigard. The city’s charter establishes a Mayor/Council form of government. Members of the City Council are elected at large to serve four-year terms. The Mayor presides at coun- cil meetings and is elected at-large for a four-year term. Together, the Mayor and council provide com- munity leadership, develop policies to guide the city in delivering services and achieving community goals, and encourage citizen awareness and involvement. The City Council appoints the City Manager, who acts as the administrative head of the city govern- ment. 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. The Mayor and Council are responsible for establishing city policies. Services Provided: Department Services Ě ŵ ŝŶ ŝƐƚ ƌĂƟǀ Ğ^Ğƌǀ ŝĐĞƐ ŝƚ ǇZ ĞĐŽ ƌĚ ĞƌͬZ ĞĐŽ ƌĚ Ɛ͕ĞƐŝŐŶ ΘŽ ŵ ŵ Ƶ Ŷ ŝĐĂƟŽ Ŷ Ɛ͕D Ƶ Ŷ ŝĐŝƉĂůŽ Ƶ ƌƚ City Management City Manager’s Office, Human Resources, Risk Management Community Services Police, Library, Social Services & Community Events Community Development CD Planning, Building, Economic Development Finance and /Ŷ Ĩ Ž ƌŵ ĂƟŽ Ŷ^Ğƌǀ ŝĐĞƐ &ŝŶ ĂŶ ĐĞĚ ŵ ŝŶ ŝƐƚ ƌĂƟŽ Ŷ ͕&ŝŶ ĂŶ ĐŝĂůK ƉĞƌĂƟŽ Ŷ Ɛ͕h Ɵůŝƚ ǇŝůůŝŶ Ő͕/Ŷ Ĩ Ž ƌͲ ŵ ĂƟŽ Ŷ dĞĐŚ Ŷ Ž ůŽ ŐǇ͕Ž Ŷ ƚ ƌĂĐƚ ƐͬWƵ ƌĐŚ ĂƐŝŶ Ő Mayor and Council Public Works Wt Ě ŵ ŝŶ ŝƐƚ ƌĂƟŽ Ŷ ͕Wt Ŷ ŐŝŶ ĞĞƌŝŶ Ő͕,ĞĂůƚŚ Ǉ^ƚ ƌĞĂŵ Ɛ͕WĂƌŬƐĂŶ Ě Grounds, Sanitary Sewer, Streets, Storm Water, Water PAGE 8 - CITY OF TIGARD CITY INFORMATION CITY INFORMATION Tigard is located in Washington County and is the twelfth largest city in Oregon. It is centrally located, surrounded by Portland, Lake Oswego, Beaverton and Tualatin. It is conveniently located, directly off of the I-5 and Highway 217. One of areas largest shopping malls, Washington Square, is located in Tigard. Population Facts: Population Estimate (2014): 49,774 Median Age (2010): 37.4 Average Household Size (2012): 2.50 High School Education or higher (2012): 92.3% Bachelor’s Degree or higher (2012): 39.7% Cost of Living Facts: Median Household Income (2012): $62,576 Unemployment Rate (2013): 6.4% Estimated Median House Value (2012): $311,100 Home Ownership Rate (2012): 60.9% Total Housing Units (2010): 20,068 Climate: Elevation: 300 ft. Average Daily High Temperature-Jul: 81 F Average Annual Low Temperature: 34 F Average Annual Rainfall: 42.9” Economy: Land Use~ Commercial (Acres, %): 7.2% Industrial (Acres, %): 10.3% Mixed-Use (Acres, %): 11.3% Residential (Acres, %): 64.4%* *Total does not equal 100% because zoning has not been assigned to the River Terrace area. INTRODUCTION - PAGE 9 CITY INFORMATION Sixy-five percent of land within the city is planned to accommodate residential use, ranging from low density single family homes to high density multi-family dwellings. The city tracks buildable lands through a yearly inventory process. The buildable lands inventory is less than 10%, but the newly annexed River Terrace area will add another 243 acres that will be available for development upon the completion of a community plan in 2014. Single family home construction, which includes free standing and attached, hit a high of 335 units in 1995 and had a total of 163 permits issued in 2013. The incorporated area of the city is 12.7 square miles or 8,119 acres. The city maintains 20 parks totaling over 498 acres of parks and open spaces. Number of businesses (March, 2014):2,915 Top Employers in 2014: Employer # of Employees Capital One Services 861 Tigard-Tualatin School District 779 Nordstrom 422 Macy’s Department Stores, Inc. 404 Oregon Public Employees Retirement 396 Costco Wholesale Corporation 273 City of Tigard 257 Winco 176 Albertson’s 174 Source: US census Bureau, City of Tigard-Community Development & Finance Tigard Values In 2006, City Council made the decision to adopt "A Place to Call Home" as the tagline for the city— representing a commitment to having Tigard be a city that everyone could be truly proud of—a place with a true commitment to the community, its employees and to excellence. In an effort to further this vision, the city implemented three values for staff to reflect and embody. These values are: Respect and Care We will treat people well Do the Right Thing We will go the extra mile to exceed expectations Get it Done We will focus on solutions-not excuses PAGE 10 - CITY OF TIGARD CITYWIDE ORGANIZATION CHART - BY PROGRAM INTRODUCTION - PAGE 11 CITY OF TIGARD MAP PAGE 12 - CITY OF TIGARD City of Tigard | ADOPTED BUDGET | FY 2014–2015 CWS Durham Wastewater Treatment Facility turns green for St. Patrick’s Day Photo by John Floyd, City of Tigard READER’S GUIDE - PAGE 13 USER’S GUIDE TO THE BUDGET DOCUMENT The budget document describes how the City of Tigard plans to meet the needs of the community. It is also a resource for citizens interested in learning more about the operation of their city government. The city budget fulfills several functions:  Firstly, the budget is a communication tool. It is one means that the city uses to explain the various demands, needs, constraints, resources and opportunities it faces. It communicates the choices made and the direction in which the city is headed.  At the highest level, the budget is an important policy document. The annual budget pro- cess is the one time during the year when all of the city operations and processes are re- viewed in a comprehensive manner. (The city reviews the needs of the community, priori- ties and goals, and then matches resources against those needs, priorities, and goals.) Re- sources are limited, so choices must be made. The annual budget reflects those choices.  The budget also serves as an operational guide. It identifies work programs and goals to be achieved for each department or unit in the coming fiscal year.  At its most basic level, the budget is an accounting document. It establishes the basic guidelines that the city uses to measure and control expenditures and to track its revenues. The budget document has been organized to assist the reader in understanding how and why the city budgets as it does and to provide more summary level information at the beginning of the budget doc- ument with more detailed information at the end. Not only is the document arranged from a high level summary to more detailed, each section is also arranged in this manner. As the reader reviews the information in this document, he or she will see this arrangement as well as the functions listed above that a budget should fulfill. The City of Tigard’s budget document is divided into thirteen primary sections as presented below: Introduction The preceding section contains the Budget Transmittal from the City Manager. This letter summarizes the major provisions that have been included in the FY 2014-15 Adopted Budget. It includes a discus- sion of the major policy issues that were considered and major changes from last year. This section also contains what the council plans to focus on through 2014, which provide the foundation and di- rection for many of the choices made in constructing this budget. There is general city information about Tigard, including a map that shows the city’s boundaries. PAGE 14 - CITY OF TIGARD USER’S GUIDE TO THE BUDGET DOCUMENT Reader’s Guide This section provides an overview of the budget process, the basis of budgeting, and the budget structure. This section is designed to help familiarize the reader with the city and its budget. Budget Summary The Budget Summary is designed to give the reader an overall view of the entire city budget. This section contains summary charts and information to provide a one-stop picture of the budget. These high-level summaries provide an easy reference for overall city trends and conditions. This section also presents the Comprehensive Long Term Financial Forecast. The Financial Forecast projects city revenues and expenses for major operational areas of the city over the next five years, based on current conditions. The city uses the forecast to identify future trends, needed corrective action, and to forecast the success of current financial efforts. Revenue Analysis The Revenue Analysis section contains information about the city’s primary sources of revenue across all funds. This section provides a basic explanation of Oregon’s property tax system and a summary of the City of Tigard’s property tax revenues and assessed valuation. This section also pro- vides historical trend information for each of the city’s major revenue categories. Program Summaries The city’s operating budget is organized by major program areas: Community Services, Public Works, Community Development and Policy and Administration. Each program area contains one or more operating departments or budget units. The Program Summaries section provides detailed infor- mation for each program area by department and budget unit. The information in this section in- cludes a program-level narrative and summary expenditures and authorized position counts. The following subsections within the Program Summaries section include a narrative for each budget unit presenting the long term results the unit is working to achieve, a description of the unit’s services and activities, FY 2014-15 goals and objectives, accomplishments for the prior fiscal year, and major highlights of the unit’s budget. This section also includes workload indicators for each unit showing how much work it has accomplished in the past and how that workload is expected to change in FY 2014-15. Effectiveness measures show the progress of each unit in achieving its long term results. READER’S GUIDE - PAGE 15 USER’S GUIDE TO THE BUDGET DOCUMENT Community Services Program This section includes budget appropriations and explanatory material for the Community Services Program. The Community Services Program includes Police, Library and Social Services and Com- munity Events. Public Works Program This section includes budget appropriations and explanatory material for the Public Works Program. The Public Works Program includes Public Works Administration, Engineering, Parks and Grounds, Sanitary Sewer, Stormwater, Street Maintenance, Fleet Maintenance, Facilities, Street Lights and Sig- nals, and Water. Community Development Program This section includes budget appropriations and explanatory material for the Community Develop- ment Program. The Community Development Program includes Community Development Plan- ning, Building and Economic Development. Policy and Administration Program This section includes budget appropriations and explanatory material for the Mayor and Council, City Management, Administrative Services and Finance and Information Services. Capital Improvement Plan The Capital Improvements section provides information about the city’s five-year capital improve- ment program. It includes information about major construction and capital acquisition projects that are planned during FY 2014-15 as well as projections of capital needs over the following four years. Debt Service The Debt Service section presents information on the City of Tigard’s outstanding long term debt. This section shows current and future debt service requirements, calculations of debt ratios, the comparison to statutory debt limitations, and debt service schedules. PAGE 16 - CITY OF TIGARD USER’S GUIDE TO THE BUDGET DOCUMENT Rhododendron Garden within Summerlake Park, Tigard, Oregon Fund Summaries The Fund Summaries section shows the city’s fund structure and detailed fund reconciliations for each fund managed by the city. A fund is a self-balancing set of accounts and is used to track reve- nues and expenditures for specific operations. Under Oregon law and “accounting principles gener- ally accepted in the United States of America,” revenues and expenditures of individual funds may not be co-mingled. This section shows current and historical information on the resources and re- quirements of each of the city’s funds. Appendix The Appendix section contains a variety of other budget-related information to assist the reader, such as salary schedules, staffing summary, the city’s financial policies, and a glossary of terms used in the budget. This section also includes a listing of advisory board and committee members. READER’S GUIDE - PAGE 17 BUDGET PROCESS Staff begins preparing the annual budget several months prior to adoption. In November and Decem- ber, staff completes a five year forecast of all revenues, expenditures and fund balances. The forecast takes the budget and known future changes in fees, technology, laws and impact of capital construction on operating costs. The forecast does not assume future decisions in staffing levels or proposed pro- grams. By producing a forecast on known items, it allows the city to see the size of decisions that need to be made. As the city works through the budget process in the following months, the forecast is continually updated. The City Manager reviews the forecasts for all funds and directs which future expenditures must be postponed or eliminated to ensure a stable financial future, but still provide the necessary resources to continue to provide current services at the same level of service in the future and accomplish City goals that are set by Council in December. Budget parameters and guidelines for the coming fiscal year are set in relation to the finalized five year forecast. Guidelines can include the number of additional or reduced staffing allowed in the budget requests, changes in programs, equipment replacement, etc. In January, department staff prepare their requested budgets to fulfill City Council goals set for the coming year. These goals and the necessary resources to accomplish them are included in the budget requests and may require adjustments to the forecast and budget guidelines. After departments submit their requested budgets, Finance staff, and the City Manager reviews the re- quests and meets with the departments to discuss the requests and obtain additional information to assist with their analysis. In March and April, Finance staff finalizes their budget analyses and meets with the City Manager and department directors to review the requests. The City Manager makes deci- sions on the requested budgets, which are then incorporated into the proposed budget. In April and into May, the City Manager presents the proposed budget to the Budget Committee. The Budget Committee, in accordance with Oregon Budget Law, is made up of the City Council and an equal number of citizen members. In Tigard’s case, the Budget Committee is comprised of the Mayor, four council members, and five citizens. All budget meetings are open to the public and are required to be advertised as such. At each budget meeting, time for public comment and input is provided. After all input has been received, the Budget Committee approves the budget with any changes and forwards it to the City Council for adoption. In June, the City Council holds another public hearing to allow for additional public comment. After the public hearing, the approved budget is adopted by City Council resolution. The adopted budget takes effect on July 1. According to Oregon Budget Law, a budget must be adopted prior to July 1. PAGE 18 - CITY OF TIGARD BUDGET PROCESS Budget Timeline November- December Finance staff updates the five year revenue and expenditure forecasts and sets growth trends and baselines. City Manager reviews forecasts and sets guidelines and policy. City Council establishes goals for the year. Finance staff prepares budget instructions, provides training as required, and distributes budget guidelines to department staff. January Departments prepare budget requests for review by Finance staff. Finance staff reviews requests and prepares budget analysis. Departments and Finance staff review budget requests February The five year forecast is updated based on requested budget amounts and projections for the current fiscal year. Requested budgets and budget analyses are submitted to the City Manager. Budget discussions between the City Manager, department directors, and Finance staff take place. March- April Finance staff updates five year forecast based on proposed budget. The proposed budget document is produced by Finance staff. Budget Committee meetings are advertised. April-May The City Manager’s proposed budget is submitted to the Budget Commit- tee. Public meetings are held to present the proposed budget to the Budget Committee to discuss and to allow citizen comment. The Budget Committee makes changes and then approves the budget before forwarding it to the City Council for adoption. Finance staff updates five year forecast based on approved budget and revised projections for current fiscal year revenues and expenditures. Public Hearing Notice for Budget Adoption is advertised. June A public hearing before City Council is held to allow citizens to comment on the approved budget. After the public hearing, the Approved Budg- et is adopted by City Council resolution. Finance staff updates five year forecast based on adopted budget. July The adopted budget document is produced by Finance staff. The adopted budget takes effect. READER’S GUIDE - PAGE 19 BUDGET PROCESS Budget Revision Procedures Oregon Local Budget Law establishes procedures to revise the budget as events occur after budget adoption. The type of event determines the procedures to be followed. Budget Amendment The adopted budget appropriates contingencies in several funds. As allowed by Oregon Local Budget Law, contingencies cannot be used unless transferred to a specific appropriation by Council Resolution amending the budget. Budget amendments during a fiscal year cannot exceed 15% of fund appropriations without approval of a supplemental budget. Supplemental Budgets In accordance with Oregon Local Budget Law, a supplemental budget is required to appropriate in- creased resources within a fund (except for gifts, grants, and donations), or if total budget amendments in a fund exceed 15% of the existing appropriations. If at least ten taxpayers make a written request within ten days of the notice, the Council must refer the supplemental budget to the Budget Commit- tee prior to consideration and action. PAGE 20 - CITY OF TIGARD BASIS OF BUDGETING The basis of budgeting is largely the same as the basis of accounting with a few exceptions. Budgets are prepared in accordance with the modified accrual basis of accounting for Governmental Fund Types. Proprietary Fund Type budgets follow the accrual basis of accounting, with the exception that depreciation is not shown as a budgetary expense. Proprietary funds also accrue compensated ab- sences when incurred and become a fund liability. In the governmental funds, compensated absences are paid from current resources and are reported as an expenditure in the year they are paid. And fi- nally, both governmental and proprietary funds show debt service proceeds as a resource and debt service payments as an expense under the budgetary basis of accounting. Activities of the general fund, special revenue funds, debt service funds, capital project funds, enter- prise funds, and internal service funds are included in the annual appropriated budget. Annual appro- priations lapse at the end of each fiscal year (June 30). The level of budgetary control (that is, the lev- el at which expenditures cannot legally exceed the appropriated amount), is established at the program level within each individual fund. The city maintains an encumbrance accounting system as one tech- nique of accomplishing budgetary control. READER’S GUIDE - PAGE 21 FUND STRUCTURE The City of Tigard uses various funds to account for its revenues and expenditures. A fund is de- fined as a fiscal and accounting entity with a self-balancing set of accounts. Also, funds are catego- rized by fund type as defined by generally accepted accounting principles (GAAP) and Oregon Budg- et Law. The revenues in each fund may be spent only for the purpose specified by the fund. For example, the revenues in the Water Fund may be used only for purposes related to water operations. Howev- er, the General Fund is the primary exception to this rule. The General Fund is used to account for general-purpose revenues and operations of the city. Most of the traditional, core operations of the city (i.e. Police, Library, Parks, Planning, and Mayor and Council) are budgeted in this fund. In FY 2014-15, the city will use the following six funds:  General:account for resources not accounted for in other funds. These resources support most central business services, public safety services, cultural/leisure services and some public devel- opment services.  Enterprise:account for goods or services which are provided on a continuing basis to the gen- eral public and are financed primarily through user charges. Enterprise funds in Tigard include: sanitary sewer, stormwater, water, water CIP, water debt service, water quality/water quantity, and water SDC.  Special Revenue:account for restricted resources designated for specific uses. In Tigard, these funds are building, city gas tax, criminal forfeiture, electrical inspection, gas tax, library donation and bequests, parks bond, parks SDC, street maintenance fee, traffic impact fee (TIF), transpor- tation development tax (TDT), tree replacement, and underground utility.  Debt Service:account for the accumulation of resources for the payment of debt principal and interest. Bancroft debt service and general obligation debt service fall into this category.  Capital Funds:account for financial resources for the acquisition, construction and mainte- nance of capital facilities. These funds include facilities capital, parks capital, and project funds.  Internal Service:Account for goods or services furnished internally from one department to another. The central services fund, fleet and property management fund, and insurance fund are the three internal service funds in Tigard. A Summary of All Funds is provided in the Budget Summary section to show a summary of each of the funds resources and requirements as budgeted and more detailed breakdown is shown in the Fund Summaries section. Resources include beginning fund balances, current revenues and transfers in from other funds. Requirements include operating expenditures, debt service, loans, capital im- provements, transfers out to other funds contingencies and ending fund balances or reserves. The FY 2014-15 budget is considered a balanced budget as total resources are equal to total requirements in each fund. PAGE 22 - CITY OF TIGARD PROGRAM BUDGET STRUCTURE The city adopts and manages its budget by program. Each program is an aggregation of departments and their divisions that are similar in nature or function. Some programs have several departments, where others, like Public Works, only has one department. Program Department Division Community Services Police Administration Operations Support Services Library Administration Readers’ Services Technical Services Circulation Social Services/Community Events Social Services Community Events Public Works Public Works Administration PW-Engineering Property Management Fleet Maintenance Parks/Grounds Sanitary Sewer Streets Stormwater Water Community Development Community Development Community Development - Planning Building Economic Development Policy and Administration City Management City Manager’s Office Human Resources Risk Management Mayor and Council Mayor and Council Administrative Services Design and Communications City Recorder/Records Municipal Court Finance and Information Systems Administration Financial Operations Utility Billing Information Technology Contracts and Purchasing READER’S GUIDE - PAGE 23 PROGRAM BUDGET STRUCTURE A breakdown of each of these programs, departments, and budget units’ expenditures can be found in the individual program sections. In addition to the four operating programs, Debt Service, Loans to the City Center Development Agency, Capital Improvement, Transfers, and Contingency provide the following functions:  Debt Service includes appropriations for interest and principal on all types for debt, i.e., general obligation, local improvement districts, loans and both short-term and long-term debt for construction projects.  Loans to the City Center Development Agency (CCDA), the city’s urban renewal district, are for catalyst projects in the downtown plan. As the Urban Renewal District generates more tax increment financing revenues in the future, it will be able to finance its own pro- jects. Until then, the city may loan monies to the CCDA, which will be repaid as outlined in the intergovernmental agreement between the two entities.  Capital Improvement includes appropriations for all major construction project expendi- tures. Capital improvement projects are included in the long range plan for city facilities and infrastructure.  Transfers will be made between funds when the revenue is received in one fund for an ex- pense that occurs in another fund or when city functions have more than one funding source. Another primary reason for transfers is for a fund to pay for services provided by another fund.  Contingency includes allowance for unforeseen needs that have not been planned for in the current budget and some reserves. Contingency can only be accessed by City Council resolution. PAGE 24 - CITY OF TIGARD City of Tigard | ADOPTED BUDGET | FY 2014–2015 Summerfield Golf Course in Tigard, Oregon BUDGET SUMMARY - PAGE 25 WHERE THE MONEY COMES FROM... Resources to meet the City of Tigard’s obli- gations and service needs are derived from three primary sources: beginning fund bal- ance, current revenues and fund transfers. Beginning fund balance consists of revenues carried forward from previous fiscal years, including reserves for specific purposes (e.g., debt reserves and capital improve- ments) and monies used for cash flow. Cur- rent revenues are those earned from city operations or taxes collected during the fis- cal year. The principal sources of current revenues are utility fees and charges, proper- ty taxes, other financing sources (bond pro- ceeds) and building and development fees and charges. The third source is a transfer between funds to pay for either direct or indirect costs. Resources Beginning Fund Balance 105,115,578$ Current Revenues Property Taxes 15,791,503 Franchise Fees 5,799,632 Special Assessments 120,000 Licenses and Permits 7,608,883 Intergovernmental 9,298,764 Charges for Services 32,154,643 Fines and Forfeitures 1,036,232 Interest Earnings 451,849 Miscellaneous 393,721 Other Financing Sources 52,254,000 Subtotal Current Revenues 124,909,227 Fund Transfers 14,771,851 Total Resources 244,796,655$ PAGE 26 - CITY OF TIGARD WHERE THE MONEY GOES... City budgetary requirements fall into three primary categories: total requirements, total appropria- tions, and program expenditures (or operating expenditures). Total requirements consist of all funds appropriated for use during the fiscal year plus reserve for future expenditures (ending fund balanc- es), which are not appropriated and are not intended to be used. Reserve for future expenditures are available, but are intended for use in future fiscal years. Total appropriations consist of funds availa- ble for use during the fiscal year and include program expenditures, debt service, capital improve- ments, transfers and contingencies. Program expenditures reflect the ongoing operating budget for the delivery of services. The following charts provide information about each of these major catego- ries. The total requirements of the FY 2014-15 city budget are $244,796,655. Of that amount, 71% is ac- tually appropriated for use during the fiscal year. The remaining 29% is reserved for future expendi- tures. The reserves are available but are not intended to be used during the fiscal year. Requirements Current Expenditures Operating Budget 55,308,373$ Debt Service 8,094,681 Loan to CCDA 254,000 Capital Improvements 92,843,202 Contingency 3,755,000 Subtotal Current Expenditures 160,255,256 Fund Transfers 14,771,851 Subtotal Total Appropriations 175,027,107 Reserve for Future Expenditure 69,769,548 Total Requirements 244,796,655$ BUDGET SUMMARY - PAGE 27 Total appropriations of $175,027,107 consist of several subcategories of use. Of this amount, Pro- gram Expenditures account for 32% of the total. Program Expenditures make up the city’s operat- ing budget. Appropriations are also established for debt service, loans to the City Center Develop- ment Agency, capital improvements, transfers between funds, and contingencies. Debt service ac- counts for 5% of total city appropriations and pays principal and interest on outstanding assessment bonds, loans, voter-approved General Obligation bonds and revenue bonds. Loans to the City Cen- ter Development Agency make up less than 1% of appropriations. Capital improvements account for 53% of total appropriations and consist of major construction or acquisition projects that add to or extend the life of major city facilities and assets. Transfers be- tween funds total roughly 8% of appropriations. Money is transferred between funds to share re- sources or to pay expenses incurred in one fund that also benefit the program in one or more addi- tional funds. Contingencies account for 2% of total appropriations and are used to pay for unex- pected expenses. No money may be spent directly out of a contingency account; if needed, money must be transferred from contingency to another expenditure category by resolution of the City Council. WHERE THE MONEY GOES... PAGE 28 - CITY OF TIGARD Program expenditures are the operating budget of the city. Program expenditures pay for the day-to- day costs of running the city and providing services to citizens. This is the heart of the city budget. Program expenditures may be looked at from several different perspectives. Each perspective pro- vides a different view of the use of these dollars. The following charts show three different perspec- tives of program expenditures. Program Expenditures by program shows the major functional areas that make up the total city oper- ating budget. The largest functional areas within the operating budget are the Public Works (39%) and Community Services (38%) programs. The Public Works program consists of services that oper- ate and maintain the city’s infrastructure (streets, water system, parks and grounds, sanitary sewer, storm water, fleet maintenance, and city facilities). The Community Services program consists of Po- lice services, Library services, and city grants to social service agencies and community events. The Community Development program accounts for 9% of the total operating budget. This program area includes building permits and inspections, and land use planning. The Policy and Administration program accounts for 14% of the total operating budget and includes the central city management, administrative functions, Finance, and Information Technology. WHERE THE MONEY GOES... BUDGET SUMMARY - PAGE 29 Another way of looking at the city’s program expenditures is by department. This view reflects the administrative structure of the city. The largest city department is Public Works with 39% of the budget. Public Works is followed by Police with 27%, Library with 10%, Community Development with 9%, Financial and Information Services 7%, City Management with 4%, Administrative Ser- vices with 3%, and the Mayor and City Council at less than 1%. Finally, the third way to view the Program Expenditures is by major object category. Roughly 52% of the operating budget is for Personal Services which are the salaries and benefits for staff who are operating the programs and providing services to the public. Materials and Services, supplies, profes- sional services, small equipment, etc., account for 29% of the operating budget. Capital Outlay (purchases of equipment or vehicles) necessary to running programs and providing services accounts for about 2% of the operating budget. Finally, Interdepartmental expenses pay for services provided within the city and make up 17% of operating expenses. WHERE THE MONEY GOES... PAGE 30 - CITY OF TIGARD FUND BALANCE The General Fund beginning fund balance is projected to be $10,142,274. A beginning fund balance is maintained to provide cash flow for specific operations until current year revenues are received. In the General Fund, enough beginning fund balance needs to be held in order to make payroll and pay bills until Property Tax collections arrive in November. The amount needed is about 25 percent of the operating budget. In addition, the fund balance provides funding stability to meet the city’s needs projected in the Five Year Financial Forecast. The largest portion of the beginning fund balances is made up of $78.5 million in the Enterprise Funds. These funds are dedicated to the operation, maintenance, and capital investment of the city’s sanitary sewer, storm water, and drinking water systems. This category grew significantly due to the Water Revenue Bonds that were issued in May 2012 to pay for the first part of the Lake Oswego / Tigard Water Partnership Project to jointly update and expand the water treatment plant and secure a water source for the City of Tigard. The fund balance is starting to decline as the project is pro- gressing. The Capital Project Funds include $1.4 million for parks development, street capital improvement projects and facilities projects. The purpose of the capital project funds is to provide a single fund to track the expenditures related to the projects. Generally, the revenues to support the projects are not moved to the capital project funds until they are needed, resulting in a low fund balance. Special Revenue Funds include $12.9 million for Gas Tax Funds, Urban Forestry Fund, Building Fund, street maintenance funds, and Parks Bond and Parks SDC funds primarily. The largest con- tributor to fund balance in this group is the $2.3 million remaining in the Parks Bond Fund from the $17 million bond approved by the voters of Tigard in November 2010. The primary revenue for the Gas Tax Fund is from a tax on motor vehicle fuel imposed by Washington County and the State of Oregon. The City Gas Tax Fund was created to account for a local fuel tax imposed by the city, which went into effect in April 2007. Currently all revenues in that fund are dedicated to repaying debt for the Greenburg Road/Pacific Hwy. intersection and for paying part of the intersection im- provements at 72nd and Dartmouth Streets. The city has two debt funds, General Obligation Debt Service Fund and the Bancroft Bond Debt Service Fund. The beginning fund balances of just over $800,000 are specifically dedicated to the retirement of both General Obligation and Bancroft debt outstanding. The city’s Internal Service Funds provide services to other city departments on a reimbursable basis. Most of the fund balance is in the Insurance Fund. This fund provides coverage for losses unfund- ed by traditional insurance policies, management of insurance/claim activity, and reduction of signif- icant liability exposures. BUDGET SUMMARY - PAGE 31 ENDING FUND RESERVES SUMMARY BY FUND Where the prior page described the beginning fund balances, the schedule below outlines the budget- ed reserves of the city anticipated at the end of FY 2015, as well as information on the prior three years of history. General Fund Reserves are steady. Overall reserves for the city are increasing, with the bulk of the increase in the Enterprise Funds related to the LO/Tigard Water Partnership project and anticipated water bond proceeds. NA PAGE 32 - CITY OF TIGARD SUMMARY OF ALL FUNDS BUDGET SUMMARY - PAGE 33 SUMMARY OF ALL FUNDS PAGE 34 - CITY OF TIGARD SUMMARY OF ALL FUNDS BUDGET SUMMARY - PAGE 35 SUMMARY OF ALL FUNDS PAGE 36 - CITY OF TIGARD SUMMARY OF ALL FUNDS BUDGET SUMMARY - PAGE 37 SUMMARY OF CONTINGENCY The FY 2014-15 budget includes contingency appropriations for most operating funds. Contingen- cies are built into the budget to ensure that funds are available for unforeseen events and to build a cushion into revenue estimates. Contingencies may not be spent directly; if needed, they must be transferred to a program expendi- ture by resolution of the city council. If not transferred to a program expenditure during the fiscal year, the contingency amount becomes part of the ending fund balance. Fund FY 2015 Fund Budget FY 2015 Fund Contingency Contingency as % of Budget 100-General Fund 33,241,523$ 1,385,000$ 4.2% 200-Gas Tax Fund 3,560,811$ 70,000$ 2.0% 205-City Gas Tax Fund 1,098,985$ 50,000$ 4.5% 220-Electrical Inspection Fund 230,000$ 50,000$ 21.7% 230-Building Fund 1,808,518$ 200,000$ 11.1% 240-Criminal ForfeitureFund 50,455$ -$ 0.0% 260-Urban Forestry Fund 250,175$ -$ 0.0% 300-Bancroft Debt Service Fund 103,650$ -$ 0.0% 350-General Obligation Debt ServiceFund 2,196,230$ -$ 0.0% 400-Facilities Capital Fund 733,642$ 50,000$ 6.8% 405-Transportation Development Tax 1,043,124$ 250,000$ 24.0% 410-TrafficImpact Fee Fund 355,923$ -$ 0.0% 411-Underground Utility Fund 255,057$ 50,000$ 19.6% 412-Street Maintenance Fund 2,307,805$ 200,000$ 8.7% 420-Parks Capital Fund 3,098,830$ -$ 0.0% 421-Parks Bond Fund 1,997,143$ -$ 0.0% 425-Parks SDC Fund 1,214,217$ 75,000$ 6.2% 460-Transportation CIP 3,052,749$ -$ 0.0% 500-Sanitary Sewer Fund 5,370,120$ 400,000$ 7.4% 510-Stormwater Fund 2,420,741$ 150,000$ 6.2% 511-Water Quality/QuantityFund 464,200$ 25,000$ 5.4% 530-Water Fund 14,643,359$ 500,000$ 3.4% 531-Water SDC Fund 445,263$ 100,000$ 22.5% 532-Water CIP Fund 81,125,983$ -$ 0.0% 533-Water Debt Service Fund 4,884,043$ -$ 0.0% 600-Central Services Fund 7,173,038$ 100,000$ 1.4% 650-Fleet/Property Management Fund 1,725,805$ 75,000$ 4.3% 660-Insurance Fund 75,718$ 25,000$ 33.0% 980-Library Donation & Bequests 100,000$ -$ 0.0% Total 175,027,107$ 3,755,000$2.1% PAGE 38 - CITY OF TIGARD FUNDING MATRIX The funding matrix on the following pages show how the FY 2015 Adopted Budget supports expendi- tures by classifying current year revenues as dedicated, generated, or unspecified.  Dedicated revenues are revenues that must be used for a specific purpose as determined by law. Examples of dedicated revenues include state gas tax, system development charges and bond proceeds.  Generated revenues are revenues that the city receives as a result of activities. Examples of generated revenues include various fees and fines, internal reimbursements for services, and utility sales.  Unspecified revenues fall into two categories:  Undedicated general governmental revenues of the General Fund such as property tax, franchise fees, and intergovernmental shared revenue.  Use of fund balance. With the exception of use of General Fund fund balance, these are dedicated resources. Because the matrix displays the current annual reve- nue for FY 15, it displays the support of current expenditures that exceed the cur- rent revenues (use of fund balance) as unspecified. In addition, a category of “CIP/Debt/Transfers/Contingency” is added. This expenditure category represents approximately half of the FY 2015 Adopted Budget. The majority of this area is for the Capital Improvement Plan (CIP) and the transfers from dedicated funds to the capital funds that cen- tralize Tigard’s capital expenditures. The 29 funds of Tigard have been summarized into eight groupings plus an All Funds group. The groupings match what is reported in the Comprehensive Long Term Financial Forecast that follows this Funding Matrix. There are two groupings that were not part of that document, Central Service Funds and Other Funds. Each fund group contains summary level information on the funds, their purpose, notes on dedicated and generated revenues, and notes on the funds’ expenditures. BUDGET SUMMARY - PAGE 39 FUNDING MATRIX Resources Beginning Fund Balance Total FY 2015 Revenue Budget Total Resources Expenditures AdministrativeServices City Management Community Development Finance &Information Services Library Mayor and Council Police PublicWorks Social Service / Community Events CIP/Debt/Transfers/Contingency Total Expenditures Change in Budgeted Fund Balances Reserve for Future Expenditures FundsIncluded: FundsSummary: Dedicated Revenue Notes: Generated Revenue Notes: Expenditures Notes: FY 15 Adopted Budget Unspecified RevenueSupport Dedicated Revenue Support Generated Revenue Support 10,142,274 29,795,520 23,075,945 2,759,112 3,960,463 39,937,794 23,075,945 2,759,112 3,960,463 544,871 543,871 - 1,000 - - - - 3,047,095 2,598,716 - 448,379 - - - - 5,733,200 2,972,365 2,748,721 12,114 294,065 294,065 - - 14,908,140 12,922,595 10,391 1,975,154 5,865,265 4,430,649 - 1,434,616 374,920 374,920 - - 2,473,967 2,473,967 - - 33,241,523 26,611,148 2,759,112 3,871,263 (3,446,003) 6,696,271 TheGeneral Fund is the primaryoperating fund of the City. This is thefund that contains themajorityof theundedicated revenues, including: PropertyTax, Franchise Fees, and StateShared revenues. TheLibraryreceives a shareof theCounty's Operating Levy and Policereceives grants. Policeand AdministrativeServices (Muni Court) sharetrafficfines. Community Development generates permit revenue. PublicWorks receives reimbursement for services related to theCIP from capital funds. TheGeneral Fund has a $1,385,000 Contingencyand over $830,000 in Transfers. General Fund General Fund PAGE 40 - CITY OF TIGARD FUNDING MATRIX Resources Beginning Fund Balance Total FY 2015 Revenue Budget Total Resources Expenditures AdministrativeServices City Management Community Development Finance &Information Services Library Mayor and Council Police PublicWorks Social Service / Community Events CIP/Debt/Transfers/Contingency Total Expenditures Change in Budgeted Fund Balances Reserve for Future Expenditures FundsIncluded: FundsSummary: Dedicated Revenue Notes: Generated Revenue Notes: Expenditures Notes: FY 15 Adopted Budget Unspecified Revenue Support Dedicated RevenueSupport Generated RevenueSupport 2,208,859 1,987,275 - 1,987,275 - 4,196,134 - 1,987,275 - - - - - - - - - 1,608,518 - 1,608,518 - - - - - - - - - - - - - - - - - - - - - - - - - 430,000 430,000 - - 2,038,518 430,000 1,608,518 - (51,243) 2,157,616 Building Fund and Electrical Inspection Fund Both funds generate permit revenuethat is dedicated under Oregon State Law to building services. None. The Development Funds account for theuseof permit fees generated through the building process. Theoperations of theBuilding Division are paid within theBuilding Fund. There areover $180,000 in Transfers out of theElectrical Inspection Fund to theBuilding Fund for related activities and $250,000 in fund contingencies. Development Funds BUDGET SUMMARY - PAGE 41 Resources Beginning Fund Balance Total FY 2015 Revenue Budget Total Resources Expenditures AdministrativeServices City Management Community Development Finance &Information Services Library Mayor and Council Police PublicWorks Social Service / Community Events CIP/Debt/Transfers/Contingency Total Expenditures Change in Budgeted Fund Balances Reserve for Future Expenditures FundsIncluded: FundsSummary: Dedicated Revenue Notes: Generated Revenue Notes: Expenditures Notes: FUNDING MATRIX FY 15 Adopted Budget Unspecified RevenueSupport Dedicated RevenueSupport Generated RevenueSupport 4,766,414 3,617,918 - 3,617,918 - 8,384,332 - 3,617,918 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6,560,365 2,742,447 3,817,918 - 6,560,365 2,742,447 3,817,918 - (2,942,447) 1,823,967 Parks Capital, Parks Bond, Parks SDC, &Urban ForestryFunds Therevenues in theParks Bond and Parks SDC funds arededicated to expanding park capacityand aretransferred to theParks Capital Fund for capital expenditures. TheUrban ForestryFund is dedicated to preserving tree canopy. None. ThePark Funds havebeen veryactivein thelast coupleof years acquiring land using the$17 million Parks Bond approved byvoters in Nov 2010. TheUnspecified Revenuesupport is a result of theuseof fund balance, primarilyfrom theParks Bond. Theserevenues areconsidered dedicated. Park Funds PAGE 42 - CITY OF TIGARD Resources Beginning Fund Balance Total FY 2015 Revenue Budget Total Resources Expenditures AdministrativeServices City Management Community Development Finance &Information Services Library Mayor and Council Police PublicWorks Social Service / Community Events CIP/Debt/Transfers/Contingency Total Expenditures Change in Budgeted Fund Balances Reserve for Future Expenditures FundsIncluded: FundsSummary: Dedicated Revenue Notes: Generated Revenue Notes: Expenditures Notes: FUNDING MATRIX FY 15 Adopted Budget Unspecified RevenueSupport Dedicated RevenueSupport Generated Revenue Support 5,313,365 9,595,668 - 9,595,668 - 14,909,033 - 9,595,668 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,608,069 - 2,608,069 - - - - - 8,811,328 1,223,729 7,587,599 - 11,419,397 1,223,729 10,195,668 - (1,823,729) 3,489,636 Gas Tax, City Gas Tax, Transportation Development Tax, Transportation Impact Fee, Street MaintenanceFee, &Transportation Capital Funds TheStateand County Gas Tax fund all theoperations, with theremainder going to debt serviceand capital. TheTDT, TIF, and City Gas Tax funds are dedicated to capital projects. Minor fees paid for PublicWorks operations TheTransportation Funds providefunding for theStreet Maintenance Division of PublicWorks and capital improvements. TheGas Tax fund revenues aredisplayed as PublicWorks operations revenues, but can also bededicated to CIP and Debt. This accounts for theunused (negative) unspecified revenuein PW and theadditional unspecified revenue for CIP/Debt. Transportation Funds BUDGET SUMMARY - PAGE 43 Resources Beginning Fund Balance Total FY 2015 Revenue Budget Total Resources Expenditures AdministrativeServices City Management Community Development Finance &Information Services Library Mayor and Council Police PublicWorks Social Service / Community Events CIP/Debt/Transfers/Contingency Total Expenditures Change in Budgeted Fund Balances Reserve for Future Expenditures FundsIncluded: FundsSummary: Dedicated Revenue Notes: Generated Revenue Notes: Expenditures Notes: FUNDING MATRIX FY 15 Adopted Budget Unspecified RevenueSupport Dedicated RevenueSupport Generated Revenue Support 9,562,298 6,853,428 - 1,394,715 5,458,713 16,415,726 - 1,394,715 5,458,713 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,527,172 - 24,815 3,502,357 - - - - 4,727,889 3,357,989 1,369,900 - 8,255,061 3,357,989 1,394,715 3,502,357 (1,401,633) 8,160,665 Someimpact fees for capital improvement. Userfees paid on utilitybills. Revenuegenerated exceeds the PublicWorks operations and is then used forCIP and transfers. Theseare enterprise funds*that support sewer and stormwater operations and maintenance as well as capital construction of pipes and drains. Thesefunds aredrawing down fund balance to implement capital improvements, causing thedisplayof unspecified revenuesupport.* Enterprise Funds :activities that can be operated most like a commercial business. Expenditures are matched with revenue from service charges to ensure that the program is self-supporting. Tigard's enterprise activities include sewer, stormwater and water utilities. Sewer, Stormwater &Water Quality/QuantityFunds Sanitary Sewer & Stormwater Funds PAGE 44 - CITY OF TIGARD Resources Beginning Fund Balance Total FY 2015 Revenue Budget Total Resources Expenditures AdministrativeServices City Management Community Development Finance &Information Services Library Mayor and Council Police PublicWorks Social Service / Community Events CIP/Debt/Transfers/Contingency Total Expenditures Change in Budgeted Fund Balances Reserve for Future Expenditures FundsIncluded: FundsSummary: Dedicated Revenue Notes: Generated Revenue Notes: Expenditures Notes: FUNDING MATRIX FY 15 Adopted Budget Unspecified Revenue Support Dedicated Revenue Support Generated Revenue Support 68,952,222 75,738,253 - 59,590,353 16,147,900 144,690,475 - 59,590,353 16,147,900 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8,376,282 - - 8,376,282 - - - - 92,722,366 33,132,013 59,590,353 - 101,098,648 33,132,013 59,590,353 8,376,282 (25,360,395) 43,591,827 Thededicated revenues areprimarily transfers for capital projects and system development charges. User fees paid on utilitybills. Revenue generated exceeds the PublicWorks operations and is then used for CIP, debt, and transfers. Water Funds areenterprisefunds that support all aspects of building, operating, maintaining thewater system and all construction projects related to the Lake Oswego/Tigard Water Partnership. TheUnspecified Revenuesupport is a result of theuseof fund balance, primarily from the Water RevenueBond. These revenues are considered dedicated. Water, Water SDC, Water CIP &Water Debt ServiceFunds Water Funds BUDGET SUMMARY - PAGE 45 FUNDING MATRIX Resources Beginning Fund Balance Total FY 2015 Revenue Budget Total Resources Expenditures AdministrativeServices City Management Community Development Finance &Information Services Library Mayor and Council Police PublicWorks Social Service / Community Events CIP/Debt/Transfers/Contingency Total Expenditures Change in Budgeted Fund Balances Reserve for Future Expenditures FundsIncluded: FundsSummary: Dedicated Revenue Notes: Generated Revenue Notes: Expenditures Notes: FY 15 Adopted Budget Unspecified Revenue Support Dedicated RevenueSupport Generated Revenue Support 1,321,293 8,459,180 270,402 21,810 8,166,968 9,780,473 270,402 21,810 8,166,968 966,354 205,917 - 760,437 2,248,133 - 21,810 2,226,323 - - - - 3,908,551 419,059 - 3,489,492 - - - - - - - - - - - - 1,650,805 - - 1,650,805 - - - - 200,718 200,718 - - 8,974,561 825,694 21,810 8,127,057 (515,381) 805,912 These area small amount of insurance proceeds dedicated by the city to the Insurance Fund. These funds are reimbursed for their services by the other funds of the city. After the General Fund, the central service fund contain the most operations of the city. The unspecified revenuesupports the budgeted contingencies and a small budgeted use of fund balance. Central service funds provide HR, finance, fleet, facility, information technology and design/communication services to other departments. The Insurance Fund provides a limited amount of self insurance and deductible coverage. Central Service, Fleet/PropertyManagement, &Insurance Funds Central Service Funds PAGE 46 - CITY OF TIGARD FUNDING MATRIX Resources Beginning Fund Balance Total FY 2015 Revenue Budget Total Resources Expenditures AdministrativeServices City Management Community Development Finance &Information Services Library Mayor and Council Police PublicWorks Social Service / Community Events CIP/Debt/Transfers/Contingency Total Expenditures Change in Budgeted Fund Balances Reserve for Future Expenditures FundsIncluded: FundsSummary: Dedicated Revenue Notes: Generated Revenue Notes: Expenditures Notes: FY 15 Adopted Budget Unspecified Revenue Support Dedicated Revenue Support Generated Revenue Support 2,848,852 3,633,836 - 3,633,836 - 6,482,688 - 3,633,836 - - - - - - - - - - - - - - - - - 100,000 - 100,000 - - - - - 50,455 - 50,455 - - - - - - - - - 3,288,579 - 3,288,579 - 3,439,034 - 3,439,034 - 194,802 3,043,654 Revenue of thesefunds are dedicated to debt, capital, Police equipment, and the Library facility. None. Expenditures arelargely for debt service with somecapital expenditures.Definitions: Criminal Forfeiture:Accounts for funds and property seizedfrom criminals in connection with crimes committed prior to passage of Ballot Measure 3.*Bancroft Debt Service:Accounts for payment of Bancroft improvement bond principal and interest. The source of revenue is the collection of assessments against benefited property, interest andcontributions from other funds for their share of costs.*General Obligation Debt Service:Accounts for payment of general obligation bond principal and interest. The source of revenue is property taxes andinterest earnings.*Facilities Capital:Monies set aside for future major city facility improvements.*Underground Utility:Accounts for monies received from developers for future underground utility improvements.*Library Donations& Bequests Funds: Accounts for amounts received from several donations and bequests for various special projects andartwork. Thesefunds are mostly debt and capital related. Criminal Forfeiture, Bancroft Debt Service, General Obligation Debt Service, Facilities Capital, Underground Utility, Library Donations &Bequests Funds (Defined below) Other Funds BUDGET SUMMARY - PAGE 47 Resources Beginning Fund Balance Total FY 2015 Revenue Budget Total Resources Expenditures AdministrativeServices City Management Community Development Finance &Information Services Library Mayor and Council Police PublicWorks Social Service / Community Events CIP/Debt/Transfers/Contingency Total Expenditures Change in Budgeted Fund Balances Reserve for Future Expenditures FundsIncluded: FundsSummary: Dedicated Revenue Notes: Generated Revenue Notes: Expenditures Notes: FUNDING MATRIX FY 15 Adopted Budget Unspecified Dedicated Generated 105,115,577 139,681,078 23,346,347 82,600,687 33,734,044 244,796,655 23,346,347 82,600,687 33,734,044 1,511,225 749,788 - 761,437 2,248,133 - 21,810 2,226,323 4,655,613 2,598,716 1,608,518 448,379 3,908,551 419,059 - 3,489,492 5,833,200 2,972,365 2,848,721 12,114 294,065 294,065 - - 14,958,595 12,922,595 60,846 1,975,154 22,027,593 4,430,649 2,632,884 14,964,060 374,920 374,920 - - 119,215,212 43,560,863 75,654,349 - 175,027,107 68,323,020 82,827,128 23,876,959 (35,346,029) 69,769,548 All operations, capital, debt, transfers, and contingencies of thecity. Dedicated revenues support approximately19% of all expenditures. Generated revenues support approximately17% of all expenditures. Unspecified revenues areeither useof fund balance(which is often dedicated) or arethegeneral revenues of the General Fund such as Property Tax, FranchiseFees, and shared intergovernmental revenues. All All Funds PAGE 48 - CITY OF TIGARD COMPREHENSIVE LONG TERM FINANCIAL FORECAST Introduction The City of Tigard has developed a comprehensive long term financial forecast every year since the 1980’s. This forecast allows the city to project expected revenues and expenditures for each of its funds to help anticipate financial requirements. This tool continues to be central to Tigard’s financial management strategy. By forecasting and anticipating financial trends, Tigard can develop strategies to respond to emerging issues. The city forecasts operating and capital fund revenues and expenditures over a five-year period. The forecast is adjusted as each year’s final results are known and as new years are budgeted. There are some key assumptions in the design of Tigard’s forecasts: 1) The forecasts only assume known decisions and do not presume future decisions of Council. This means that the operating budgets only include those staff and related mate- rials and services that are currently approved, or are proposed in this document. 2) Revenues are forecasts based on best information available for future annual rate of change. 3) Budgeted expenditures and forecasted expenditures are different. Budgeted expenditures represent the maximum expense allowed by council. Actual expenses are always less than budget because the budget cannot be legally exceeded. The forecast is based on an esti- mate of actual expenditures. Recent history shows that the city spends approximately 95 percent of operating budget (e.g. payroll, supplies, services, and equipment). This is the basis for forecasting operating expenditures. The intent of the forecast is to show the relative size and impact of current decisions and what deci- sions will be required in the future. It is not uncommon for a forecast to show a declining fund bal- ance. That does not mean that the fund balance will be where we have forecasted it to be in five years; it means that the city will take actions of a proportionate size to ensure that the fund balance stays above minimum requirements. General Fund Recent History As a result of these forecasting efforts and a projected decline in general fund balances due to the re- cession, the city took steps to reduce expenditures prior to the end of FY 2010 and FY 2012. Staff also continues to revise current fees and charges based on cost recovery and construction cost indices. There are some significant financial issues facing the city over the next five years. One key issue re- lates to the city’s capital improvement needs. The city has identified capital project needs, but does not have the resources to implement all of them. The following charts do not include the needed projects that do not have funding source. The reason for this is because almost all the funds would show large negative fund balances, which is not realistic or practical. The city will continue to priori- tize the needed capital projects, seek alternative revenue sources, and develop financing strategies to construct as many of the needed capital projects as possible. BUDGET SUMMARY - PAGE 49 COMPREHENSIVE LONG TERM FINANCIAL FORECAST The general fund is unique in that, unlike the city’s other funds, it is unrestricted in nature and can therefore be used for any valid purpose to provide government services. Because these funds are un- restricted there are also great demands for these resources to fund projects and programs for which other, restricted monies are insufficient or unavailable. It is therefore critical that these funds be used judiciously and a sufficient reserve balance be maintained for unforeseen expenditures. General fund needs a minimum of 25 percent of budget in fund balance; this is represented as the or- ange line in the following graph. Nearly half of the general fund’s revenue comes from property tax which is mostly received in late November and December. From the beginning of the fiscal year in July until the property tax collection in late November, the general fund expends more than it receives. The fund balance is used in order to make payroll and other regular expenses. Toward the end of Fiscal Year 2010, the city implemented significant cuts in services, reducing the General Fund budget by $2.6 million and 17.20 FTE citywide. The cuts were made with the goal to sustain the new level of services during FY 2011 & FY 2012. The reason for the cuts was a declining general fund balance (i.e., savings), due to the recessionary impacts on revenues. Early in the reces- sion, the city allowed the general fund balance to decline, in order to maintain service levels. Entering FY 2013, it was apparent that the recession would not have a robust recovery and revenues growth would remain muted. This would not allow the city to continue to use fund balance to bridge service levels waiting for additional revenue growth. Under that scenario, the adopted budget for FY 2013 instituted the second round of financial and service level cuts in three years. The cuts were tar- geted to achieve 3-5 years of financial stability and were achieved through the following actions: 1) For FY 2013, Tigard again made significant reductions of $1.9 million in General Fund and central service funds and 18.0 FTE citywide. 2) One of the key components to making the forecast sustainable is changing the growth in medical / dental benefits for the non-represented employees paid by the City from ten to five percent annually. Non-represented employees will pick up the difference by contrib- uting more toward these benefits. 3) The Electrical Franchise Fee is increased from 3.5% to 5.0%. Due to the timing of collec- tions, this added only $174,000 in FY 2013, but increased General Fund revenue by $700,000 when fully implemented for FY 2014. In addition, the Budget Committee rec- ommended increasing the Solid Waste Franchise Fee to 5%. This was done during for FY 2014 added $90,000 annually. During FY 2014, the city and the SEIU Union representing approximately one-third of the city em- ployees settled their collective bargaining process. One of the major financial results is that the union membership agreed to a medical/dental benefit cost sharing structure similar to the one implemented with non-represented employees the year before. When the two employee groups are combined, the change in the growth of the city’s cost in medical/dental benefits going from 10% annually to 5% has lowered overall annual growth rate in all expenditures from 3.5% to 3.0%. Over the course of the five year forecast, this saves approximately $1.5 million in the General Fund. PAGE 50 - CITY OF TIGARD COMPREHENSIVE LONG TERM FINANCIAL FORECAST General Fund based on FY 2015 Adopted Budget In preparing the Adopted Budget for FY 2015, the cuts made in priors year and the promise of 3 to 5 years of stability is foremost in mind. The budget is prepared as a “Level Budget” with very few chang- es that have been outlined in the Budget Transmittal. These include one-time expenditures for an up- dated phone system, police equipment, library automated materials handling, and a required exterior repair to city buildings due to water intrusion. Ongoing expenditure changes include growing police dispatch costs, legal expenses, and conversion of temporary/seasonal staff costs to new full-time em- ployees, as required under the union contract. Under these conditions, we are able to continue the commitment of 3 to 5 years of financial stability. Prior forecasts have focused on the structural issues that cause revenues to grow slower than expendi- tures. The General Fund forecast this year shows revenue and expenditure growth to be largely simi- lar. This change is due in large part to the changes in medical/dental cost sharing discussed previously and aided by some modest improvement in revenues. Another improvement is property tax growth exceeding 3% for the first time since 2009. On average, annual expenditures grow by approximately $825,000 while annual revenues grow by $950,000. This condition permits some of the one-time in- vestments and leads to a relatively stable fund balance starting in FY 2016. 2012 2013 2014 2015 2016 2017 2018 2019 Current Expenditures 28.6 27.1 28.5 30.3 31.3 31.3 32.5 33.8 Current Revenues 28.5 29.5 29.6 29.7 30.7 31.6 32.5 33.6 Required EFB for Next Year 6.1 6.7 6.7 6.9 6.9 7.2 7.5 7.5 Ending Fund Balance (EFB)7.3 9.7 10.8 9.6 9.0 9.2 9.2 9.0 0 5 10 15 20 25 30 35 40 2012 2013 2014 2015 2016 2017 2018 2019$MillionsGeneral Fund Forecast Ending Fund Balance (EFB)Current Expenditures Current Revenues Required EFB for Next Year FinancialForecastBasedonFY2015 AdoptedBudget BUDGET SUMMARY - PAGE 51 COMPREHENSIVE LONG TERM FINANCIAL FORECAST Development Funds Tigard has been successful in getting growth in expenditures and revenues to be similar. The challenge that the community still faces is the inability to add to existing services, or start new services. As Tigard continues to grow, the current service level will slowly erode due to the inability to substantially add to services. While Tigard can hope for, and actively participate in, local, state, and federal legisla- tive change that will allow revenues to grow at a faster rate, the reality is that we will have little impact on those decisions. Failing that change in revenue growth rates, Tigard is still faced with some combi- nation of the following decisions: 1) Further impact the rate of growth in expenditures. With personnel expenditures represent- ing approximately 60 percent of operations, this is the area where the most impact can be made. 2) Implement additional city revenue sources. These typically will not grow faster, but will provide a higher starting point for the steady decline, putting off the point where expendi- tures exceed revenues. 3) Make further service level and expenditure reductions in one area to support additional ser- vices in other areas. The projections for the city’s development funds (building and electrical inspection funds) show these funds are growing. In 2008-09, building ended the year with a fund balance near zero even after laying off seven staff and reducing hours for the remaining staff in this fund. In FY 2009-10, the building fund was further stabilized by a one-time $300,000 resource transfer from general fund and a fee in- crease designed to generate an additional $250,000 annually. PAGE 52 - CITY OF TIGARD COMPREHENSIVE LONG TERM FINANCIAL FORECAST Park Funds Activity in the Building Division has had some steady increases. During 2010-11, five positions were restored to full time, adding a total of 1.0 FTE to the division. In FY 2011-12 an additional 0.9 FTE was added. Workload has fluctuated slightly over the last three years, but is trending upward and some larger projects are underway in Tigard. In FY 2014, workload and revenues increased sufficiently to add 1.0 FTE building inspector. This was the only staff position added to the city’s budget in FY 2014. In FY 2015, there is an additional 0.2 FTE allocated from Planning to Building to aid in front counter coverage. It is anticipated that further staffing increases will be needed to meet the increasing workload in this area. Expenses of all the building inspection services are charged to the building fund. The electrical inspec- tion fund transfers money into the building fund to pay for those costs associated with electrical in- spection services. The transfer is evaluated and updated each year based upon the actual activity. The revenues in the parks funds include the system development charge (SDC), urban forestry reve- nues, grants, and the Parks Bond that was approved by voters in November 2010. Resources from the Park SDC Fund are transferred to the Parks Capital Fund to pay the SDC portion of the capital projects. These projects have been identified in the city’s Parks Master Plan. The most recent SDC methodology and fee was approved by the City Council in June 2012 in coordination with the budget hearing. In FY 2008-09 the Urban Forestry Fund (formerly known as the Tree Replacement Fund) was estab- lished to account for revenue collected from developers in lieu of planting trees. The fund is then used to plant trees in Tigard. In FY 2010-11, a significant number of commitments from developers who failed to plant were called, increasing the fund balance over $1 million. BUDGET SUMMARY - PAGE 53 COMPREHENSIVE LONG TERM FINANCIAL FORECAST Transportation Funds In November 2010 Tigard voters approved a $17 million Parks Bond to help the city acquire and de- velop additional parks, with at least 80 percent to be used to acquire land and the remaining amount to develop parks. Of the total, ten percent can be used in downtown. By the end of FY 2014, approxi- mately $14.7 million of the parks bond will be spent on development and land acquisition, including Dirksen Nature Park, Sunrise Park, Potso Dog Park, and East Butte Heritage Park. During FY 2015, the most of the remaining $2.3 million will be paired with parks SDC and grant funds to purchase and develop parks. A small amount is planned to be spent on Fanno Creek Trail in conjunction with a planned project with Clean Water Services. The Parks CIP Fund is showing a slight negative balance due to the Tigard Street Trail and Public Space project and the Dirksen Nature Park project being partially funded. In order to undertake the trail project, an additional $445,800 of funding will be needed. For the nature park, an additional $560,000 will be needed for construction. These will be a priority when working with our regional partners. The city’s transportation funds include the Gas Tax, the Traffic Impact Fee (TIF), Transportation De- velopment Tax (TDT), Street Maintenance Fee, City Gas Tax, and the Transportation CIP Fund. The city is able to support major projects on Main Street, Walnut Street, and several sidewalk connec- tions within the five year forecast period. There are some funding challenges. First, Gas Tax revenues are flattening due to leveling of fuel purchases caused by more efficient vehicles. With steadily increas- ing maintenance operations, street light and signal energy bills, and steady debt service payments through FY 2020, the ability to pay for capital out of this fund is being compromised. Second, there are two partially funded projects totaling $3.4 million in the Transportation CIP fund that is driving the fund balance negative in FY 2018 and FY 2019. The two projects are the McDonald/Gaarde/Pacific Hwy Intersection ($400,000) and the McDonald/Hall Intersection ($3,050,000). If funding is not iden- tified, the projects will be re-scoped or delayed; this decision will need to be made soon on the McDonald/Gaarde/Pacific Hwy Intersection as it is nearly ready to start construction. PAGE 54 - CITY OF TIGARD COMPREHENSIVE LONG TERM FINANCIAL FORECAST The city gas tax was established to account for revenues generated from Tigard’s local gas tax. The 3- cent tax was developed by a citizen task force who recommended it as a way to fund improvements to the Greenburg Rd./Pacific Hwy./Main St. intersection. All proceeds generated are currently dedicated to this one project. Repaying the debt service for this project will take about half of the funds re- sources allowing the fund balance to grow. In 2009 the Oregon Legislature passed an update to the state gas tax that required the Tigard City Council to make adjustments to the city gas tax. As a result of the legislative action, the City Council chose to make the city’s gas tax continuous, and to identify specific projects through a public process for which the tax will be dedicated. The adopted budget in- cludes the next project recommended by the Tigard Transportation Advisory Committee (TTAC). The budget includes $2.5 million of City Gas Tax for the McDonald/Hall Intersection project. The traffic impact fee (TIF) is a charge on new development established by Washington County, but collected by cities. This fee was phased out as the transportation development tax (TDT) is phased in. It is anticipated that remaining TIF resources will be spent in FY 2015. The TDT was approved by Washington County voters in November 2008. However developments approved prior to July 1, 2009 still pay the TIF. Because these fees are based on new development, the amount of revenue fluctuates with building ac- tivity and the city has experienced a decline in this activity. In addition, the Washington County Board of Commissioners has granted discounts on the TDT to developers, slowing the phase in of the fee. That action has negatively impacted the city’s revenues in this fund. The fees collected from the TIF and TDT may only be used for roadway and transit capital improvements that provide additional ca- pacity to major transportation systems, and to pay the costs of administering the program. Like the gas tax fund, the forecast includes only those street projects that the fund can afford. The remaining TIF revenue will be used in FY 2015. TDT revenues are increasing with the modest growth in develop- ment. This is the one resource that has programed capacity among the transportation funds. The city took steps to address existing local street conditions by adopting a Street Maintenance Fee in November 2003 with an update approved in January 2010. This fee provides a stable source of reve- nue designated for use in the maintenance of existing streets. The Tigard Municipal Code requires that the fee be evaluated every five years. The most recent evaluation showed that the cost of maintaining the roads at the city’s standard has increased and the prior Street Maintenance Fee was inadequate to cover the costs. Therefore the fee increased over a two year period with full implementation in January 2012. The revenue from the fee is designed to prevent further deterioration of the city’s overall pave- ment condition and the update included right-of-way maintenance component of $100,000. The in- crease in the fee is sufficient to only maintain the current pavement condition. The fund balance is needed, since most of the program’s expenditures happen in the beginning of the fiscal year when the weather is good for construction. BUDGET SUMMARY - PAGE 55 COMPREHENSIVE LONG TERM FINANCIAL FORECAST Sanitary and Stormwater Funds These funds support all of the sanitary sewer and stormwater collection and detention systems in the city. The city provides these services based upon an Intergovernmental Agreement (IGA) with Clean Water Services (CWS), which is a local service district in Washington County that provides both sani- tary sewer treatment and stormwater management services. The Board of Directors of CWS sets all service charges and system development charges for both sanitary sewer and stormwater services throughout the service district. Tigard is responsible for maintaining local sewer lines; however, sewer revenues have not kept up with increasing costs of maintaining this vital infrastructure. Without a change, the fund balance will ap- proach zero in five years. Sewer rates and the city’s share of the revenues are set by the region’s sewer provider, Clean Water Services (CWS). For every dollar that a customer pays, $0.84 goes to CWS, $0.05 goes to the General Fund as the Franchise Fee, and $0.11 goes to the Sewer Fund. The City of Tigard is the only city inside of CWS’s service area that hasn’t implemented, or is currently pursuing a sewer surcharge. The financial forecast for the Sanitary Sewer Fund shows fund balance shrinking from $4.5 million in FY 2014 to -$1.0 million five years later, a decrease of $5.5 million, or approximately $1.1 million per year. Operating revenues in the fund are $2.0 million and has very limited growth. Operational costs are approximately $1.9. Operations alone are use the available operating revenues. This means that the city’s infrastructure needs as stated in the Capital Improvement Program (CIP) are funded entirely from fund balance. During budget deliberations, the Budget Committee instructed staff to pursue a local revenue source to implement during FY 2015. In 2009-10, CWS implemented a new way to share system development charges. Prior to 2009-10, Tigard was responsible for any pipe smaller than 20” and received twenty percent of SDC revenue. In 2009-10, Tigard became responsible for pipes under 12”, but only receives four percent of a larger SDC. This change in SDC revenue is reflected in the forecast. PAGE 56 - CITY OF TIGARD COMPREHENSIVE LONG TERM FINANCIAL FORECAST Water Funds The stormwater fund shows a stable moderate fund balance in the coming years. In an effort to offset little or no increases from CWS over the past few years, the city has implemented a $2.00 per month charge to stormwater fees. This surcharge allows the city to maintain a sustainable cash flow position and to construct needed capital projects in future years. The water quality/quantity Fund has been allowed to slowly grow over the last few years. The fund will be used on a major stormwater facility in FY 2015. The water funds include the water, the water system development charge (SDC), the water Capital Im- provement Plan (CIP), and water debt service funds. The water CIP Fund is reserved for a long-term water source and other water distribution system capital projects. The costs of the Water Division are funded solely by the revenues in the water fund. The financial condition of the water funds is driven by both the needs in the capital program as well as the cost of the day-to-day operation and maintenance of the water system in the city. The most im- portant factor in the city’s capital program remains the need for a long-term source of water. In Au- gust 2008 the city entered into an agreement with the city of Lake Oswego for a long-term water source. The project to upgrade Lake Oswego’s water treatment plant is underway. In November 2010, City Council adopted a Water Financing Plan through 2020 to fund the LO/ Tigard partnership project with a subsequent update to the plan in March 2012. Since then, Tigard has agreed to buy an additional 4 million gallons per day (mgd) of capacity from Lake Oswego, bringing Tigard’s share to 18 mgd. The forecast is based on a modified version of the financing plan which en- tails issuance of an additional water bond of approximately $52 million in FY 2015. The exact amount may be less by using the accumulating fund balances in the Water and the Water SDC funds. The first debt issuance of $97.7 million was issued in May 2012. BUDGET SUMMARY - PAGE 57 COMPREHENSIVE LONG TERM FINANCIAL FORECAST Along with the Water Financing Plan, Council adopted revised water utility charges and System Devel- opment Charges. Water utility charges will roughly double over a five year period and SDCs will roughly triple over the next four years. Synopsis The city’s Five Year Financial Forecast shows that in the short term the city has some challenges, but appears to be in a good position to meet those challenges. The General Fund is sustainable due to cuts in service made in FY 2010 and FY 2012 and decreased growth in medical/dental costs. The Building Fund is stable and is supporting modest growth. Available transportation funding sources to pay debt service on Burnham St and the Greenburg / Main Street / Pacific Highway intersection as well as ma- jor projects on Main Street, Walnut, and various sidewalk projects. Issues for transportation remain to fill the gap in funding for McDonald/Gaarde/Pacific Hwy Intersection and McDonald/Hall Intersec- tion projects. Funding a long-term water source for Tigard is a necessary and expensive process and will require significant borrowing coupled with significant rate increases to repay the debt. The Sewer Fund has insufficient revenues to maintain the city’s local infrastructure and a change will be made in FY 2015. The city will continue to monitor its revenues and expenditures and will develop plans and options to manage its resources to continue to provide quality services to its citizens. PAGE 58 - CITY OF TIGARD Bridge crossing at Summerlake Park Tigard, Oregon City of Tigard | ADOPTED BUDGET | FY 2014–2015 REVENUE ANALYSIS - PAGE 59 CURRENT REVENUE SUMMARY BY FUND PAGE 60 - CITY OF TIGARD GENERAL FUND REVENUE With no sales or income tax revenues, city general funds in Oregon are funded primarily by property taxes, franchise fees, state-shared revenues (e.g., cigarette tax and liquor tax revenues), and some charges/fees for services. Our property tax system has changed significantly over the past 20 years. Limitations on property taxes were put in place twice during the 90’s. These two major changes were:  Ballot Measure 5 - Taxes from fiscal year 1991-92 to 1995-96 were increasingly limited until the limit of $5 per $1,000 Real Market Value for school taxes and $10 per $1,000 Real Market Value for general government taxes was reached.  Ballot Measure 50 - This is a property tax limitation measure which was approved by Ore- gon's voters in May 1997. The provisions in this measure rolled 1997 assessed values back to 90 percent of the 1995 value, established permanent rate limits for each tax district, al- lowed voters to approve local option levies outside these rates, established a method for taxing new property at a ratio of market value to the Maximum Assessed Value (giving sim- ilar tax savings to the new property), and limited the growth of Maximum Assessed Value for existing property to a maximum of 3% each year. These limitations have reduced cities’ main source of revenue for core services such as police, library, and parks. The purpose of this section is to describe the city’s major revenue sources, explain the underlying as- sumptions for the revenue estimates, and discuss significant revenue trends. Throughout this budget document there are revenue trend graphs for the city in total as well as for each of the major fund types. The revenue sources and assumptions used in the budget are summarized on the following pag- es. REVENUE ANALYSIS - PAGE 61 ASSESSED VALUE Property taxes are assessed by Washington County and are based on a property’s assessed value not the property’s real market value. Assessed values were established under Measure 50 and are based on the 1995-96 tax roll value less 10%. These values generally can’t increase more than 3% per year unless major improvements are made to the property or voters have authorized a new levy. For FY 2014-15, Tigard’s total assessed value is projected to be roughly 81% of its real market value. The city's permanent operating tax rate is $2.51 per $1,000 of assessed value. In 2014, the total assessed value of taxable property in Tigard was nearly $5.5 billion, which generates about $15 million in prop- erty tax revenue. For FY 2014-15, it is assumed that the city's assessed property values will increase by 3%. PAGE 62 - CITY OF TIGARD PROPERTY TAX SUMMARY The property tax system in Oregon has been heavily influenced by Measures 5 and 50, passed in 1990 and 1997 respectively. Because both rates and growth in assessed value are limited, the recession of 2007-08 had a limited effect on property tax revenue. However there has been recent interest by local governments in developing a more flexible tax system within the State of Oregon. The property tax levy continues to be the General Fund's single largest revenue source, estimated at $13 million for FY 2014-15. Property taxes, including prior years' taxes, account for 44% of all availa- ble resources estimated for FY 2014-15. Property taxes pay for police, parks, library, planning, munici- pal court, and several other services. The city has two voter approved GO Bond property tax levies. In May 2002 Tigard voters approved a $13 million General Obligation Bond to construct a new library. In November 2010 Tigard voters approved a parks bond measure allowing the city to issue up to $17 million in General Obligation Bonds for parks land acquisition. To date, the city has spent approximately $13.7 million of the parks bond. The remaining money will be used to fund additional park land and open space acquisitions and to construct various park improvements like shelters, playgrounds, trails, playing fields and restrooms. Actual Actual Est.Actual Adopted Tax Information 2011-12 2012-2013 2013-2014 2014-2015 Property Taxes General Fund 12,371,188 12,787,066$ 13,297,201$ 13,404,815$ GO Debt Service 2,264,741 2,293,825 2,311,214 2,386,688 Total Tax Levied 14,635,929$ 15,080,891$ 15,608,415$ 15,791,503$ Assessed Values Prior Year Assessed Value 5,002,275,070 5,132,783,287$ 5,253,663,684$ 5,444,705,020$ Increase (up to 3%)117,553,464 99,906,001 124,178,486 117,261,446 Est. Annexations & New Const.12,954,753 20,974,396 33,431,425 46,079,705 Total Assessed Value 5,132,783,287$ 5,253,663,684$ 5,444,705,020$ 5,608,046,171$ Tax Rates/$1,000 AV General Fund Permanent Rate 2.51310$ 2.51310$ 2.51310$ 2.51310$ GO Debt Service 0.45280 0.44130 0.43140 0.45762 Tax Rate 2.96590$ 2.95440$ 2.94450$ 2.97072$ Assessed Value of Average Home 214,362 220,644$ 228,700$ 235,561$ General Fund 538.71 554.50 574.75 591.99 GO Debt Service 97.06 97.37 98.66 107.80 Total Estimated Tax per Household 635.78$ 651.87$ 673.41$ 699.78$ REVENUE ANALYSIS - PAGE 63 STATE REVENUE SHARING State revenue sharing monies, which include gas, liquor and cigarette taxes, are allocated to cities based on population with an adjustment for local taxing efforts. Using state projections, the League of Ore- gon Cities has produced the per capita estimates of State Shared Revenues for cities for the coming years. Cigarette tax is generated by two cents of the state-imposed $1.18 per pack cigarette tax. Revenue from the tax is allocated as follows: $0.22 to the state’s general fund; $0.87 to the Oregon Health Plan; $0.02 to cities; $0.02 to counties; $0.02 to the Oregon Department of Transportation for transportation services to the elderly and disabled; and $0.03 to the state’s tobacco use reduction account. Cities may use their share for general government purposes without program restrictions on their use. After a dec- ade of constant decline, cigarette tax revenues are expected to rise slightly before settling back into de- cline. Liquor tax revenue may be used by cities for general government purposes. It is distributed by the Oregon Liquor Control Commission in two different manners:  20% of the state’s liquor receipts are allocated as revenues to cities on a per capita basis and distributed monthly; and  14% of state liquor receipts are allocated to cities on a formula basis, as outlined in ORS 221.770. PAGE 64 - CITY OF TIGARD STATE REVENUE SHARING Historical Tigard Tigard Today Picture courtesy of the Tigard Historical Association These estimates for FY 2014-15 assume no increase in the tax rates for beer, wine or distilled spirits, and no changes in the proportional allocation of revenues. Revenue will closely track the upward and downward trends in Tigard’s 20% per capita liquor tax distribution Gas tax is allocated to cities from vehicle title and registration fee and the gas tax. In 2009 the Oregon legislature approved the Jobs and Transportation Act which raised driver license and vehicle registra- tion fees, sets date for raising fuels taxes and created stable funding base of $300 million/year for city, county and state transportation infrastructure projects. The legislation generated an additional $54.6 million annually to be allocated to cities from vehicle title and registration fee increases and an increase in the gas tax. The change in funding was phased in, reaching 100% funded in 2013. The legislation prohibited local governments from enacting or amending charter provisions, ordinances or resolutions related to the collection of local motor vehicle taxes until Jan. 2, 2014. The legislation did not apply to Tigard because our local motor vehicle tax was in place. However, Tigard’s distribu- tion of the state gas tax is adjusted to account for revenue received from the local gas tax which was grandfathered in under the legislation. Since the bulk of the gas taxes in Oregon are based on a per-gallon fee, the amount of money raised by gas taxes is declining. This is due to more fuel efficient cars, including electric cars, and people driving fewer miles. The Oregon legislature is starting to look at ways to change the state gas tax. One possi- bility is to change to a rate charged per mile driven. State Revenue Sharing is allocated to cities based on population with an adjustment for local taxing effort. It is anticipated that receipts from state revenue sharing will be much the same as actually re- ceived in FY 2013-14. REVENUE ANALYSIS - PAGE 65 FRANCHISE FEE REVENUE Service Provider Rate Cable Television Comcast 5% Electric Portland General Electric 5%* Garbage All Haulers 5%** Natural Gas Northwest Natural Gas 5% Sanitary Sewer City of Tigard 5% Telecommunications All providers 5% Water City of Tigard 5% *includes 1.5% increase from FY 13 budget **includes an increase approved in FY 14 budget Franchise fees are charged as part of an agreement between local governments and utilities that use public rights‐of‐way. These agreements ensure that companies receiving special use of rights‐of‐way are paying fees to reimburse local governments for use of public services, and to prevent general tax- payers from subsidizing extraordinary use. Franchise agreements outline the terms under which utility companies use city rights‐of‐way, including compensation requirements. Franchise fees are typically calculated on a percentage of the revenues derived from sales of the utility company to customers in that service area or territory. Current franchisees and franchise rates are: PAGE 66 - CITY OF TIGARD FRANCHISE FEE REVENUE  Cable TV –The Metropolitan Area Communications Commission (MACC), a consortium of cities in the metro area, administers the cable television franchise. While revenues from telecom franchise fees have been decreasing in recent years, cable franchises have in- creased.  Electricity - Portland General Electric (PGE) pays a franchise fee representing 5 percent of their gross revenues to Tigard.  Garbage – Pride Disposal and Waste Management are responsible for solid waste and re- cycling in Tigard. Each pays a 5% franchise fee. During FY 14 the City Council increased the solid waste franchise from 4% to 5%.  Natural Gas - Northwest Natural Gas pays 5% of gross revenues as a franchise fee to Tigard. Revenue projections remain steady for FY 2014-15.  Sanitary Sewer - The Sanitary Sewer Fund pays 5% of gross revenues as a franchise fee to the General Fund. As the fee is based on gross revenue, the fee will grow in relation to sewer rate increases.  Telecommunications – The shift from land line telephones to wireless technologies has resulted in an erosion of telecommunications revenues in Tigard and throughout Oregon cities. Over the last few years, Tigard has seen a decrease in telecommunications franchise revenues.  Water -New water rates took effect on January 1, 2014. Water customer charge and water usage charge increased by 14%. Booster pump charges, where applicable, increased by 6%. Rate increases applied to all water customers, including non-residential customers. The av- erage residential customer experienced an increase of $5 to $8 per month. The increase in water rates will increase franchise fee revenue proportionately. REVENUE ANALYSIS - PAGE 67 ENTERPRISE FUNDS - USER FEES User fees include water, sanitary sewer, and storm drainage fees charged to all users of such services. The sanitary and storm fees are established by the Clean Water Services Agency (CWS) and updated by the agency each year. The City Council, through an intergovernmental agreement with other sys- tem participants, sets the water rates. Per the intergovernmental agreement with CWS, the city retains only a portion of the sanitary and storm fees it collects. It is anticipated that the sanitary sewer and stormwater revenues will see mini- mal growth during FY 2014-15. In 2008, Tigard entered into a water partnership with the City of Lake Oswego on a long-term water source. The projects associated with the water partnership are estimated to cost more than $200 mil- lion. Tigard's share of the improvements and cost to buy into Lake Oswego's existing system is esti- mated to be $150 million. In order to pay for the debt that is necessary to complete the project, water rates in the Tigard Water Service Area increased approximately 34% in fiscal year 2010-11 and then increased 14% per year each January. The final 14% increase went into effect in 2014. Also during FY 2013-14, the City of Tigard negotiated with the City of Lake Oswego to take an additional 4 million gallons per day of the capacity generated by this partnership project. Analysis is currently underway to determine the effect of this decision on rates. PAGE 68 - CITY OF TIGARD CONNECTION FEES Connection fees include traffic development tax (TDT), storm and sanitary sewer connection charges, water connection and system development charges, and parks system development charges. The TDT is assessed on new development to help provide funds for the increased capacity transportation im- provements needed to accommodate the additional vehicle traffic and demand for transit facilities gen- erated by that development. This revenue category is beginning to show an increase after a marked decline in recent years that coin- cided with the decreased level of development activity that has occurred in Tigard. The city anticipates development activity will continue a slow increase over the next few years. The TDT provides funds for these capacity improvements to county and city arterials, certain collec- tors, and certain state and transit facilities as listed in the County’s Capital Improvements Project List. The TDT is categorized as an Improvement Fee. Revenue must be dedicated to capital improvements that expand capacity and may not be used for maintenance, repair, or other non-capital improvements. As part of the funding of the water project with Lake Oswego, water system development charges (SDC) increased. In February 2011, the water SDC increased 87%. The increase fully implemented the reimbursement portion of the water SDC. Over a four year period, the improvement portion of the water SDC will be phased in, resulting in water SDC fees tripling by February 2014. REVENUE ANALYSIS - PAGE 69 PERMIT FEE REVENUE Permit fee revenues are recorded in the Building Fund, the Electrical Inspection Fund and the General Fund. The primary fees that are represented in the chart include: Engineering Public Improvement Fee, Sign Permits, Land Use Planning Application Fees, and all related Building Permit Fees. Nearly all fees are related to development activity and, therefore, reflect the level of that activity. In October 2010, building fees increased to bring them in line with area communities. Combined with modest growth in activity, permit revenues have recovered, and are expected to grow at a slow by steady rate through FY 2014-15. PAGE 70 - CITY OF TIGARD COUNTY SHARED REVENUE County Shared Revenues include the Washington County gas tax, the Washington County Cooperative Library System (WCCLS) levy, and a countywide hotel/motel tax. Washington County collects a one-cent per gallon tax on gasoline and distributes it to cities in the county to use for road maintenance activities. This revenue source has seen very minor growth over the past few years because under current state law the tax per gallon cannot be increased, and as men- tioned in the gas tax section, higher mileage vehicles and reduced driving are leading to less overall gas tax revenue. The hotel/motel tax is collected by Washington County at a 7% rate and is distributed to all participat- ing jurisdictions. Tigard receives about one-third of the amount collected in the city limits. Tax collec- tions are directly related to room rental rates, the number of hotel and motel rooms within the city, and the economy. With the slow economic recovery, the city projects that this revenue source will remain stagnant. WCCLS funds come from the county property taxes generated from the county’s permanent property tax rate. WCCLS funds are distributed to cities with public libraries based upon a formula heavily weighted to increases in circulation. The $0.17 per $1,000 of assessed value five-year levy supports WCCLS member libraries, including Tigard, and central services that link the twelve libraries together. The levy was renewed in the November 2010 election at the same rate. REVENUE ANALYSIS - PAGE 71 FINE AND FORFEITURE REVENUE This source of revenue includes traffic and civil infraction citations, which are processed by the Munic- ipal Court, and fines for late and lost materials at the Library. Fine collections are directly related to the number of citations issued. The bail schedule is updated annually by the Municipal Court Judge. Revenue from fines and forfeitures are variable from year to year, but do not change significantly over the long-range timeframe. PAGE 72 - CITY OF TIGARD INTEREST EARNINGS Interest earnings are generated from the investment of cash on hand in various funds of the city. Inter- est earnings are directly attributable to the amount of cash available for investment and current interest rates. The city is assuming an interest rate of 0.6% for its investments, and anticipates that interest earnings will be relatively flat in FY 2014-15 as interest rates remain historically low. REVENUE ANALYSIS - PAGE 73 INTERFUND TRANSFERS Interfund transfers are the transfer of revenues between funds when the revenue is received in one fund for an expense that occurs in another fund or when city functions have more than one funding source. Another primary reason for transfers is for a fund to pay for services provided by another fund (for example, Financial Operations Division providing utility billing services for the Water, San- itary Sewer, Stormwater, and Street Maintenance Funds). A transfer-out is an expense to the fund that is transferring the money out or buying services. A transfer-in is a resource to the fund that is receiving the money or selling the service. For every ex- pense transfer-out, there is a corresponding resource transfer-in. The corresponding transfers must show the same dollar amount. The various types of interfund transfers are defined below: General Resource Transfer Transfer of resources from one fund to another which are not based upon a cost allocation plan, ac- tual expenditure, or any expectation of a payment for services provided. This type of transfer is simply a transfer of resources from one fund to another. Direct Resource Transfer/Capital Improvement Plan (CIP) Transfer Transfer of resources from one fund to another which are based upon a cost allocation plan and ac- tual expenditures or an expectation of a payment for services provided. This type of transfer is typi- cally based upon actual expenditure needs by a certain fund and are “trued up” from the budget fig- ure based upon actual expenditures. Debt/Loan Repayment Transfer Transfer of resources from one fund to another to pay either all or a portion of an interfund loan. This type of transfer is typically based upon a five-year repayment schedule for capital loans. Indirect Cost Transfer The Indirect Cost Transfers Out are typically budgeted along with a division’s operating budget to show the true cost for that division to the city. In turn, transfers received for services provided, are allocated based upon a cost allocation plan. In FY 2012, the city hired FCS Group to develop a fed- erally approved indirect cost allocation plan. For the city, the following bases of these allocations are used for those functions or programs listed on the pages to follow: PAGE 74 - CITY OF TIGARD INTERFUND TRANSFERS Division Indirect Cost Pool Allocation Factors City Management Mayor & Council, City Management, Web Services Agenda Items, Total Actual Expenditures (Excl. Debt), FTE’s, Web Services Finance Administration Budget/CIP Total Actual Expenditures, CIP Budget Financial Operations Reporting, Accounting/General Ledger, Accounts Payable, Payroll Total Actual Expenditures (Excl. Debt & Capital), Journal Entries, # of Invoices, FTE’s Human Resources Human Resources FTE’s Risk Management Insurance Premiums, Claims & Misc. FTE’s, # of Autos, Property Value, Other Insurance Costs, 3 yr. Avg. # of Insurance Incidents Information Technology IT-Support, IT-Geographic Information Systems (GIS) # of Computers, # Printers/Copiers, Help Desk Tickets, GIS Data Layers Design & Communications Mail, Graphics, Copiers Graphics Staff Time, FTE’s & Actual Expenditures (Excl. Debt), # of Printers/Copiers, Total Copier Costs City Recorder/Records Records Management, Council Support, Records Requests Time on Records Requests, Agenda Items, Electronic Records, # of Record Boxes, # of Microfiche Property Management Property Management Square Footage Fleet Maintenance Fleet Maintenance Fleet Work Order Expenses Contracts & Purchasing Contracts & Purchasing P-Card Transactions, # of Purchase Orders, $ of Purchase Orders Utility Billing Utility Billing, Meter Reading Meter Reading, Utility Accounts, Utility Revenues Since the internal transfers are complex and can be difficult to follow and trace through the budget document, the following explanation is provided for each transfer, by fund. The budget document reflects a decrease in the number of transfers that are related to the Capital Improvement Plan (CIP) due to the implementation of the federally approved indirect cost plan. REVENUE ANALYSIS - PAGE 75 INTERFUND TRANSFERS PAGE 76 - CITY OF TIGARD INTERFUND TRANSFERS REVENUE ANALYSIS - PAGE 77 INTERFUND TRANSFERS PAGE 78 - CITY OF TIGARD INTERFUND TRANSFERS REVENUE ANALYSIS - PAGE 79 INTERFUND TRANSFERS PAGE 80 - CITY OF TIGARD INTERFUND TRANSFERS PROGRAM SUMMARIES - PAGE 81 EXPENDITURE SUMMARY BY PROGRAM The city adopts and manages its operating expenditures by program. The city has four operating pro- grams: Policy & Administration, Community Development, Community Services, and Public Works. Within each of these programs are one or more departments and budgets units, or divisions. A more detailed explanation of the city’s program structure can be found in the Reader’s Guide section. The following charts give a summary of the expenditures for the programs, budget classifications, and staffing levels. PAGE 82 - CITY OF TIGARD OPERATING BUDGET HISTORY-SUMMARY PROGRAM SUMMARIES - PAGE 83 OPERATING BUDGET HISTORY PAGE 84 - CITY OF TIGARD OPERATING BUDGET HISTORY PROGRAM SUMMARIES - PAGE 85 OPERATING BUDGET HISTORY City staff gather for several events throughout the year-the Wellness Fair and the Opening Day staff-sponsored picnic are a couple of examples. PAGE 86 - CITY OF TIGARD STAFFING LEVELS The Adopted Budget for FY 2015 reflects an increase in staffing from the FY 2014 Adopted Budget of 256.85 FTE to 261.95 FTE. This increase of 5.10 FTE equates to a 2% increase in staffing due to the additions of a Building Technician 1, two Utility Worker 1 positions, and a Project Director in Public Works. In addition, a Communications Strategist position has been added to the City Manager’s Office along with a few minor FTE changes during the 2014 fiscal year. A summary of the changes by the de- partments is below. City Management With the addition of a Communications Strategist, staffing in the City Manager’s office will increase by 1.0 FTE compared to FY 2014. In addition, the Assistant position in Human Resources was reduced from .80 to .50 FTE. This brings the total change to .7 FTE in City Management. Community Development The Adopted Budget for FY 2015 shows a reorganization of the department with the consolidation of the Development Services and Community Planning divisions into Community Development Planning Division. This division was formerly called Community Development Administration. Community Development Planning will show a total of 13.80 FTE due to the consolidation. During the 2014 fiscal year, an FTE change for the Permit Technician Assistant position in Planning was increased from .80 FTE to 1.0 FTE of which the additional .20 FTE was redistributed to support the Building Division due to increased construction activity. In addition, transfer of the Senior Engineering Technician posi- tion to Public Works Engineering in FY 2015 decreased Community Development by 1.0 FTE. The net change is a .8 FTE decrease for Community Development. Information Technology The division’s FTE increased by 1.20 based on the transfer of a Network Administrator position from Police. In addition, the GIS Coordinator position was increased from .80 FTE to 1.0 FTE due to sub- stantial increase in workload and to provide support to the Strategic Plan. Police The division FTE will show a decrease of 1.0 FTE from the transfer of a Network Administrator posi- tion to Information Technology. PROGRAM SUMMARIES - PAGE 87 STAFFING LEVELS Public Works A total of 5.0 FTE have been added to the department. Fleet Maintenance, Property Management, En- gineering, Parks and Grounds, as well as the Water Division will each increase by 1.0 FTE compared to FY 2014. The FTE increase in Parks, Fleet Maintenance and Property Management Divisions results from converting three seasonal worker positions to fulltime FTE’s based on increased demands in workload and requirements of the union contract. A Senior Utility Worker position was transferred from the Sanitary Sewer Division to the Stormwater Division due to the nature of the work being per- formed by this position. An FTE was added to the Public Works Engineering division as result of a transfer of the Senior Engineering Technician from Community Development to perform duties relat- ed to private development. The increase in the Water Division is due to adding the Project Director position that is dedicated solely to representing the city’s interest on the Lake Oswego/Tigard Water Partnership. There are no changes in the number of staff planned for FY 2015 in Library and Administrative Ser- vices. PAGE 88 - CITY OF TIGARD City of Tigard | ADOPTED BUDGET | FY 2014–2015 John W. Tigard House, built in 1880 is in the National Register of Historic Place in Washington County, Oregon COMMUNITY SERVICES - PAGE 89 COMMUNITY SERVICES ORGANIZATION CHART PAGE 90 - CITY OF TIGARD COMMUNITY SERVICES PROGRAM The Community Services Program consists of programs provided by the Police Department and the Li- brary, and several Social Services and Community Event grants made by the city. Police programs include traditional public safety efforts (patrol, enforcement, traffic safety, etc.), but also include work with community groups to increase public safety awareness. Library programs include circulation of a wide variety of print and other media materials and the offering of a few programs designed to increase reading, computer skills, and lifelong learning. Social Service and Community Event grants provide funding to a variety of community organizations and groups that provide services to those in need in the community or which offer events that promote a greater sense of community. The primary source of funding for this program area is the General Fund. Tigard Public Library Baxter Tigard Canine Department Tigard Police COMMUNITY SERVICES - PAGE 91 COMMUNITY SERVICES PROGRAM PAGE 92 - CITY OF TIGARD POLICE ORGANIZATION CHART COMMUNITY SERVICES - PAGE 93 POLICE ADMINISTRATION BUDGET UNIT: 4000 PAGE 94 - CITY OF TIGARD POLICE ADMINISTRATION BUDGET UNIT: 4000 COMMUNITY SERVICES - PAGE 95 BUDGET UNIT: 4000POLICEADMINISTRATION PAGE 96 - CITY OF TIGARD POLICE ADMINISTRATION BUDGET UNIT: 4000 COMMUNITY SERVICES - PAGE 97 POLICE ADMINISTRATION BUDGET UNIT: 4000 PAGE 98 - CITY OF TIGARD POLICE ADMINISTRATION BUDGET UNIT: 4000 COMMUNITY SERVICES - PAGE 99 BUDGET UNIT: 4000POLICEADMINISTRATION PAGE 100 - CITY OF TIGARD POLICE OPERATIONS BUDGET UNIT: 4100 COMMUNITY SERVICES - PAGE 101 POLICE OPERATIONS BUDGET UNIT: 4100 PAGE 102 - CITY OF TIGARD POLICE OPERATIONS BUDGET UNIT: 4100 COMMUNITY SERVICES - PAGE 103 POLICE OPERATIONS BUDGET UNIT: 4100 PAGE 104 - CITY OF TIGARD POLICE OPERATIONS BUDGET UNIT: 4100 COMMUNITY SERVICES - PAGE 105 POLICE OPERATIONS BUDGET UNIT: 4100 Sometimes Tigard police officers find themselves doing atypical duties. A call to dispatch about an unclaimed pig in a Tigard neighborhood had the officer feeding the pig with an apple to keep it occupied until Washington County Animal Control arrived. Pig and owner were safely reunited. PAGE 106 - CITY OF TIGARD POLICE SUPPORT SERVICES BUDGET UNIT: 4200 COMMUNITY SERVICES - PAGE 107 POLICE SUPPORT SERVICES BUDGET UNIT: 4200 PAGE 108 - CITY OF TIGARD POLICE SUPPORT SERVICES BUDGET UNIT: 4200 COMMUNITY SERVICES - PAGE 109 POLICE SUPPORT SERVICES BUDGET UNIT: 4200 PAGE 110 - CITY OF TIGARD POLICE SUPPORT SERVICES BUDGET UNIT: 4200 COMMUNITY SERVICES - PAGE 111 BUDGET UNIT: 4200POLICESUPPORTSERVICES PAGE 112 - CITY OF TIGARD BUDGET UNIT: 4200POLICESUPPORTSERVICES A small portion of Police Support Services is funded from the Criminal Fines and Forfeiture fund. Pri- or to FY 2014, these funds were transferred to the General Fund. Starting in FY 2014, the expendi- tures were made directly out of the Criminal Fines and Forfeiture fund. COMMUNITY SERVICES - PAGE 113 POLICE SUPPORT SERVICES BUDGET UNIT: 4200 The average lifespan of a Tigard police car is about 5-6 years. Each car is equipped with a Mobile Data computer. For safety reasons, this computer shuts off automatically when the car’s speed gets up to a certain level. Additionally, each car has a camera in the front and back that is activated once an officer turns on their lights and siren. Each car tracks its speed, braking and turn signal usage, which is used when needed for investigative purposes. PAGE 114 - CITY OF TIGARD LIBRARY ORGANIZATION CHART COMMUNITY SERVICES - PAGE 115 LIBRARY ADMINISTRATION BUDGET UNIT: 5000 PAGE 116 - CITY OF TIGARD LIBRARY ADMINISTRATION BUDGET UNIT: 5000 COMMUNITY SERVICES - PAGE 117 LIBRARY ADMINISTRATION BUDGET UNIT: 5000 PAGE 118 - CITY OF TIGARD LIBRARY ADMINISTRATION BUDGET UNIT: 5000 COMMUNITY SERVICES - PAGE 119 LIBRARY ADMINISTRATION BUDGET UNIT: 5000 PAGE 120 - CITY OF TIGARD LIBRARY ADMINISTRATION BUDGET UNIT: 5000 The Tigard Library is the largest lender of materials to other Washington County libraries, which includes books, CDs and DVDs. They have been the highest net lender for six years in a row, which is a testament as to how robust is their collection COMMUNITY SERVICES - PAGE 121 BUDGET UNIT: 5100LIBRARYREADERSERVICES PAGE 122 - CITY OF TIGARD LIBRARY READER SERVICES BUDGET UNIT: 5100 COMMUNITY SERVICES - PAGE 123 LIBRARY READER SERVICES BUDGET UNIT: 5100 PAGE 124 - CITY OF TIGARD LIBRARY READER SERVICES BUDGET UNIT: 5100 COMMUNITY SERVICES - PAGE 125 BUDGET UNIT: 5200LIBRARYTECHNICALSERVICES PAGE 126 - CITY OF TIGARD LIBRARY TECHNICAL SERVICES BUDGET UNIT: 5200 COMMUNITY SERVICES - PAGE 127 BUDGET UNIT: 5200LIBRARYTECHNICALSERVICES PAGE 128 - CITY OF TIGARD LIBRARY CIRCULATION BUDGET UNIT: 5300 COMMUNITY SERVICES - PAGE 129 BUDGET UNIT: 5300LIBRARYCIRCULATION PAGE 130 - CITY OF TIGARD BUDGET UNIT: 5300LIBRARYCIRCULATION COMMUNITY SERVICES - PAGE 131 LIBRARY CIRCULATION BUDGET UNIT: 5300 PAGE 132 - CITY OF TIGARD SOCIAL SERVICES AND COMMUNITY EVENTS BUDGET UNIT: 5900/5910 Program Description: Each year the city appropriates funds to support Social Service and Community Event activities that assist or benefit Tigard citizens. Community organizations are invited to submit requests in January of each year. A subcommittee of the Budget Committee meets to review Social Service requests and to recommend funding in the Proposed Budget. Community Event requests are reviewed informally by the Council. The Proposed Budget presents the results of both reviews. The budget committee guideline is to set total events and social service appropriations at approximately one-half of 1% of the prior year’s operating budget. Also, the city budgets three set asides within this appropriation in addition to the target amount for grants: the Housing Program “emergency fund” to assist occupants of housing declared to be unsafe; the Affordable Housing Set-Aside to assist providers of low-income housing; and the Residential Services Agency Emergency Set-Aside to assist agencies that provide emergency food and housing to those in need. The city received $394,750 in grant requests for community events and social services for FY 2014-15. In addition to direct grants, some of the grant recipients also receive in-kind services from the city. These services range from provision of a building and its operating costs for the Loaves and Fishes/ Tigard Senior Center to Tigard Public Works and Police time to support community events. Tigard’s Middle of Millen Drive parade is a favorite 4th of July activity Tigard’s 4th of July celebration culminates with a fire- works display at Tigard High School COMMUNITY SERVICES - PAGE 133 BUDGET UNIT: 5900/5910SOCIALSERVICESANDCOMMUNITYEVENTS PAGE 134 - CITY OF TIGARD SOCIAL SERVICES AND COMMUNITY EVENTS BUDGET UNIT: 5900/5910 City of Tigard City of Tigard FY 2014-15 FY 2014-15 Community Event Grant Requests Social Services Grant Requests Agency Recommended Agency Recommended Res 00-22 BroadwayRose* Direct 8,000$ AffordableHousing Set-Aside Direct 1$ $10,000/yr Res 00-20 Festival of theBalloons** Direct 20,000$ Housing Prog EmergencyFund Direct 1$ $10,000/yr In-Kind 65,000$ Res 00-21 Tigard 4th of July*** Direct 16,000$ Residential Services Agency Direct 1$ $7,500/yr 7/1-12,000 issued In-Kind 1,600$ Undesignated Set-Aside 60$ Undesignated Direct 1$ Set Aside Total Set Aside Total Direct 44,060$ Direct 4$ In-Kind 66,600$ In-Kind -$ Compassion Tigard Direct 10,000$ Boys &Girls Aid Direct 3,000$ Cityof Tigard Dog Park Direct 400$ Caring Closet Direct 5,500$ Downtown Tigard Events Direct 6,700$ Catalyst Partnerships Direct 2,000$ Mask &Mirror Direct 6,000$ Community Acition Organization Direct 8,000$ SouthsideSoccer Direct $0 DomesticViolenceResource Ctr Direct 5,000$ Indirect $2,000 EverybodyDance Now! Portland Direct 500$ Tigard Area Farmers Market Direct 8,500$ Tigard Bull Mtn Farmers Market Direct 4,000$ Good Neighbor Center Direct 15,000$ Tigard High Graduation Party Direct 2,000$ LifeWorks Direct 19,000$ Tigard Historical Association Direct 1,500$ LukeDorf Direct 29,600$ Tigard SafetyTown Direct 4,000$ Meals On Wheels/Senior Center Direct 29,000$ In-Kind 66,000$ Tualatin Riverkeepers Direct 2,500$ In-Kind 1,000$ Open Door Direct 5,000$ Tualatin Valley CommunityBand Direct 2,000$ Oregon Human Development Corp Direct 20,000$ Washington Co BicycleTrans Direct 1,000$Rebuilding Together Washington CountyDirect 2,000$ Indicrect 200 Retired &Senior Volunteer Prog Direct 2,000$ St. Vincent DePaul (St. Anthony) Direct 4,000$ St AnthonySevereWeatherShelter Direct 4,000$ Tigard Area Chamberof Commerce Direct 5,000$ Tigard Grange#148 Direct 5,000$ Tigard Tualatin FamilyResourceCtr Direct 6,500$ Wa CountyProject Homeless Connect Direct 2,000$ Sub-total Sub-total Direct 48,600$ Direct 172,100$ In-Kind 3,200$ In-Kind 66,000$ Total (Set asidesand others) Total (Set asidesand others) Direct 92,660$ Direct 172,104$ In-Kind 69,800$ In-Kind 66,000$ PUBLIC WORKS - PAGE 135 PUBLIC WORKS ORGANIZATION CHART PAGE 136 - CITY OF TIGARD PUBLIC WORKS PROGRAM Bishop Scheckla Pavilion at Cook Park Public Works employees cleaning out a manhole on a Tigard street The Public Works Department encompasses the planning, design, construction, operation and mainte- nance of the public infrastructure. That infrastructure includes domestic water, sanitary sewer convey- ance, storm water management, public parks, streets, city buildings and fleet. From a broad perspective, the department is made up of two groups: 1) operational staff who handle the day-to-day operation, maintenance and repair of the infrastructure; and 2) engineering staff who manage the city’s capital improvement program and handle traffic/transportation management and long-term master planning of infrastructure, as well as private development review. The Lake Oswego Tigard Water Partnership is one of the department’s largest initiatives; partnership funding spans several fiscal years. Tigard entered into the partnership in 2008—the culmination of Tigard’s 15-year search to obtain ownership and control in a secure, dependable, high-quality drinking water source. Through the partnership, Tigard and Lake Oswego will update and expand Lake Oswego’s existing water system to serve both communities’ future water needs. When the new water source in 2016, Tigard will have access to at least 14 million gallons of water per day—enough water to meet the needs of its 58,000 customers in the Tigard Water Service Area, and capacity to 18 million gallons per day. PUBLIC WORKS - PAGE 137 PUBLIC WORKS PROGRAM PAGE 138 - CITY OF TIGARD PUBLIC WORKS ADMINISTRATION BUDGET UNIT: 6000 PUBLIC WORKS - PAGE 139 PUBLIC WORKS ADMINISTRATION BUDGET UNIT: 6000 PAGE 140 - CITY OF TIGARD PUBLIC WORKS ADMINISTRATION BUDGET UNIT: 6000 PUBLIC WORKS - PAGE 141 PUBLIC WORKS ADMINISTRATION BUDGET UNIT: 6000 PAGE 142 - CITY OF TIGARD PUBLIC WORKS ADMINISTRATION BUDGET UNIT: 6000 PUBLIC WORKS - PAGE 143 BUDGET UNIT: 6100PARKSANDGROUNDS PAGE 144 - CITY OF TIGARD PARKS AND GROUNDS BUDGET UNIT: 6100 PUBLIC WORKS - PAGE 145 PARKS AND GROUNDS BUDGET UNIT: 6100 PAGE 146 - CITY OF TIGARD BUDGET UNIT: 6100PARKSANDGROUNDS PUBLIC WORKS - PAGE 147 BUDGET UNIT: 6100PARKSANDGROUNDS Woodard Park in Tigard, Oregon PAGE 148 - CITY OF TIGARD PARKS AND GROUNDS BUDGET UNIT: 6100 PUBLIC WORKS - PAGE 149 PARKS AND GROUNDS BUDGET UNIT: 6100 Dirksen Nature Park-Within the park, natural areas will be preserved and enhanced, and a ball field and interpretive center will be constructed. The development plan will be phased in with the construction plan to include restroom and shelter, parking lot, and educational center upgrades. PAGE 150 - CITY OF TIGARD BUDGET UNIT: 6200STREETMAINTENANCE PUBLIC WORKS - PAGE 151 STREET MAINTENANCE BUDGET UNIT: 6200 PAGE 152 - CITY OF TIGARD STREET MAINTENANCE BUDGET UNIT: 6200 PUBLIC WORKS - PAGE 153 STREET MAINTENANCE BUDGET UNIT: 6200 PAGE 154 - CITY OF TIGARD STREET MAINTENANCE BUDGET UNIT: 6200 City workers install a crosswalk on a street with high foot traffic PUBLIC WORKS - PAGE 155 PW ENGINEERING BUDGET UNIT: 6250 PAGE 156 - CITY OF TIGARD BUDGET UNIT: 6250PW ENGINEERING PUBLIC WORKS - PAGE 157 PW ENGINEERING BUDGET UNIT: 6250 PAGE 158 - CITY OF TIGARD BUDGET UNIT: 6250PW ENGINEERING PUBLIC WORKS - PAGE 159 PW ENGINEERING BUDGET UNIT: 6250 Map of Tigard, illustrating projects throughout the city. PW Engineering design and constructs Capital Improvement pro- jects from improving public streets, city-maintained water, sewer and stormwater utilities, as well as construction of new facilities for parks PAGE 160 - CITY OF TIGARD HEALTHY STREAMS BUDGET UNIT: 6260 The Healthy Streams division was created in FY 2013, but was consolidated with the Stormwater division in FY 2014. This page is for historical purposes only. PUBLIC WORKS - PAGE 161 FLEET MAINTENANCE BUDGET UNIT: 6300 PAGE 162 - CITY OF TIGARD FLEET MAINTENANCE BUDGET UNIT: 6300 City of Tigard truck lit up for the holiday PUBLIC WORKS - PAGE 163 FLEET MAINTENANCE BUDGET UNIT: 6300 PAGE 164 - CITY OF TIGARD PROPERTY MANAGEMENT BUDGET UNIT: 6400 PUBLIC WORKS - PAGE 165 BUDGET UNIT: 6400PROPERTYMANAGEMENT PAGE 166 - CITY OF TIGARD BUDGET UNIT: 6400PROPERTYMANAGEMENT City Hall building-Tigard, Oregon PUBLIC WORKS - PAGE 167 PROPERTY MANAGEMENT BUDGET UNIT: 6400 PAGE 168 - CITY OF TIGARD WATER BUDGET UNIT: 6500 PUBLIC WORKS - PAGE 169 WATER BUDGET UNIT: 6500 PAGE 170 - CITY OF TIGARD WATER BUDGET UNIT: 6500 PUBLIC WORKS - PAGE 171 WATER BUDGET UNIT: 6500 PAGE 172 - CITY OF TIGARD WATER BUDGET UNIT: 6500 PUBLIC WORKS - PAGE 173 SANITARY SEWER BUDGET UNIT: 6600 PAGE 174 - CITY OF TIGARD BUDGET UNIT: 6600SANITARYSEWER PUBLIC WORKS - PAGE 175 SANITARY SEWER BUDGET UNIT: 6600 PAGE 176 - CITY OF TIGARD SANITARY SEWER BUDGET UNIT: 6600 City of Tigard Sewer Replacement Project @ 128th and Shore Drive PUBLIC WORKS - PAGE 177 STORMWATER BUDGET UNIT: 6700 PAGE 178 - CITY OF TIGARD STORMWATER BUDGET UNIT: 6700 PUBLIC WORKS - PAGE 179 STORMWATER BUDGET UNIT: 6700 Storm Drainage Major Maintenance PAGE 180 - CITY OF TIGARD STORMWATER BUDGET UNIT: 6700 PUBLIC WORKS - PAGE 181 BUDGET UNIT: 6700STORMWATER PAGE 182 - CITY OF TIGARD STREET LIGHTS & SIGNALS BUDGET UNIT: 6800 PUBLIC WORKS - PAGE 183 STREET LIGHTS & SIGNALS BUDGET UNIT: 6800 PAGE 184 - CITY OF TIGARD City of Tigard | ADOPTED BUDGET | FY 2014–2015 Water main improvements during the Burnham Street Project in Tigard, Oregon COMMUNITY DEVELOPMENT - PAGE 185 COMMUNITY DEVELOPMENT ORGANIZATION CHART PAGE 186 - CITY OF TIGARD COMMUNITY DEVELOPMENT PROGRAM City of Tigard City Hall This section includes budget appropriations and explanatory materials for the Community Develop- ment Program. The Community Development Department budget includes three divisions: Com- munity Development Planning, Building and Economic Development. These divisions are responsi- ble for the following functions:  Development review permit services,  Long range land use and transportation planning,  City code enforcement,  Building inspection and permit services,  Economic development and downtown urban renewal, and  Department administration. Since its reorganization, the department has successfully transitioned itself from its past function of land use development planning and regulating to a full service community development department with emphasis on developing its partnerships and operations to more actively stimulate new invest- ment in key places. The department has started the city’s first Economic Development program, expanded and clarified the role of the city’s urban renewal agency in downtown Tigard, and led the development of the River Terrace Community Plan. The department focuses on long-term strategic goals identified by City Council and the Mayor’s Blue Ribbon Task Force, and seeks to continuously update and improve the city’s Community Development Code through projects like the Urban For- estry Code rewrite and Parks zone project planned for FY 2014 include adoption of the River Ter- race Community Plan and the Tigard Triangle Master Plan, and continued implementation of the City Center Urban Renewal Plan, including the development of the new market rate housing in downtown Tigard.. The department will also continue to update and improve its permitting, inspec- tions and development review and customer service operations. COMMUNITY DEVELOPMENT - PAGE 187 COMMUNITY DEVELOPMENT PROGRAM PAGE 188 - CITY OF TIGARD COMMUNITY DEVELOPMENT—PLANNING BUDGET UNIT: 3000 In fiscal year 2014, Community Development Administration added two divisions-Community Planning and Develop- ment Services and changed their name to Community Development Planning COMMUNITY DEVELOPMENT - PAGE 189 BUDGET UNIT: 3000COMMUNITYDEVELOPMENT—PLANNING PAGE 190 - CITY OF TIGARD BUDGET UNIT: 3000COMMUNITYDEVELOPMENT—PLANNING COMMUNITY DEVELOPMENT - PAGE 191 BUDGET UNIT: 3000COMMUNITYDEVELOPMENT—PLANNING PAGE 192 - CITY OF TIGARD BUDGET UNIT: 3000COMMUNITYDEVELOPMENT—PLANNING Bike Tigard map shows bike routes in and surrounding Tigard *Community Planning and Development Services’ FTE have been combined with Community Devel- opment Planning, as shown above. History of the division FTE count is still shown at the top of the division budget schedules that follow. COMMUNITY DEVELOPMENT - PAGE 193 COMMUNITY DEVELOPMENT—PLANNING BUDGET UNIT: 3000 PAGE 194 - CITY OF TIGARD BUDGET UNIT: 3000COMMUNITYDEVELOPMENT—PLANNING COMMUNITY DEVELOPMENT - PAGE 195 BUILDING BUDGET UNIT: 3100 PAGE 196 - CITY OF TIGARD BUDGET UNIT: 3100BUILDING COMMUNITY DEVELOPMENT - PAGE 197 BUDGET UNIT: 3100BUILDING City of Tigard Breezeway, snow of 2014 PAGE 198 - CITY OF TIGARD BUDGET UNIT: 3100BUILDING COMMUNITY DEVELOPMENT - PAGE 199 BUDGET UNIT: 3100BUILDING PAGE 200 - CITY OF TIGARD ECONOMIC DEVELOPMENT BUDGET UNIT: 3700 COMMUNITY DEVELOPMENT - PAGE 201 BUDGET UNIT: 3700ECONOMICDEVELOPMENT PAGE 202 - CITY OF TIGARD ECONOMIC DEVELOPMENT BUDGET UNIT: 3700 COMMUNITY DEVELOPMENT - PAGE 203 BUDGET UNIT: 3700ECONOMICDEVELOPMENT PAGE 204 - CITY OF TIGARD ECONOMIC DEVELOPMENT BUDGET UNIT: 3700 Monument sign at one of the entrance intersections into Tigard’s downtown COMMUNITY DEVELOPMENT - PAGE 205 BUDGET UNIT: 3700ECONOMICDEVELOPMENT PAGE 206 - CITY OF TIGARD DEVELOPMENT SERVICES BUDGET UNIT: 3200 COMMUNITY DEVELOPMENT - PAGE 207 BUDGET UNIT: 3200DEVELOPMENTSERVICES In fiscal year 2014, Development Services and Community Planning merged with Community Development Administra- tion to create a new division, called Community Development-Planning PAGE 208 - CITY OF TIGARD COMMUNITY PLANNING BUDGET UNIT: 3300 COMMUNITY DEVELOPMENT - PAGE 209 BUDGET UNIT: 3300COMMUNITYPLANNING In fiscal year 2014, Development Services and Community Planning merged with Community Development Administra- tion to create a new division, called Community Development-Planning PAGE 210 - CITY OF TIGARD City of Tigard | ADOPTED BUDGET | FY 2014–2015 POLICY AND ADMINISTRATION - PAGE 211 POLICY & ADMINISTRATION ORGANIZATION CHART PAGE 212 - CITY OF TIGARD POLICY AND ADMINISTRATION PROGRAM The Policy and Administration Program consists of the Mayor and Council, City Management, Ad- ministrative Services and the Finance and Information Service Departments. This program includes a wide variety of functions that encompass the areas of administrative support, strategic planning, city management, computer and information services, financial management, accounting, utility billing, municipal court, human resource management, records management, risk management and contracts and purchasing. The Mayor and Council and the Municipal Court budgets are funded completely out of the General Fund. The other budget units are funded by charge backs to other city programs that use these com- mon services. POLICY AND ADMINISTRATION - PAGE 213 MAYOR AND CITY COUNCIL PAGE 214 - CITY OF TIGARD MAYOR & CITY COUNCIL BUDGET UNIT: 0500 POLICY AND ADMINISTRATION - PAGE 215 MAYOR & CITY COUNCIL BUDGET UNIT: 0500 PAGE 216 - CITY OF TIGARD BUDGET UNIT: 0500MAYOR& CITY COUNCIL POLICY AND ADMINISTRATION - PAGE 217 MAYOR & CITY COUNCIL BUDGET UNIT: 0500 PAGE 218 - CITY OF TIGARD CITY MANAGEMENT ORGANIZATION CHART POLICY AND ADMINISTRATION - PAGE 219 CITY MANAGER’S OFFICE BUDGET UNIT: 1000 PAGE 220 - CITY OF TIGARD CITY MANAGER’S OFFICE BUDGET UNIT: 1000 POLICY AND ADMINISTRATION - PAGE 221 BUDGET UNIT: 1000CITYMANAGER’S OFFICE City Hall buildings are separated by a common breezeway PAGE 222 - CITY OF TIGARD BUDGET UNIT: 1000CITYMANAGER’S OFFICE POLICY AND ADMINISTRATION - PAGE 223 BUDGET UNIT: 1100HUMANRESOURCES PAGE 224 - CITY OF TIGARD BUDGET UNIT: 1100HUMANRESOURCES POLICY AND ADMINISTRATION - PAGE 225 BUDGET UNIT: 1100HUMANRESOURCES PAGE 226 - CITY OF TIGARD BUDGET UNIT: 1100HUMANRESOURCES POLICY AND ADMINISTRATION - PAGE 227 BUDGET UNIT: 1200RISKMANAGEMENT PAGE 228 - CITY OF TIGARD BUDGET UNIT: 1200RISKMANAGEMENT POLICY AND ADMINISTRATION - PAGE 229 BUDGET UNIT: 1200RISKMANAGEMENT PAGE 230 - CITY OF TIGARD BUDGET UNIT: 1200RISKMANAGEMENT Occasionally the Insurance Fund is used to pay for some expenses directly related to Risk Manage- ment. POLICY AND ADMINISTRATION - PAGE 231 ADMINSTRATIVE SERVICES ORGANIZATION CHART PAGE 232 - CITY OF TIGARD DESIGN & COMMUNICATIONS BUDGET UNIT: 1300 POLICY AND ADMINISTRATION - PAGE 233 DESIGN & COMMUNICATIONS BUDGET UNIT: 1300 PAGE 234 - CITY OF TIGARD BUDGET UNIT: 1300DESIGN& COMMUNICATIONS POLICY AND ADMINISTRATION - PAGE 235 BUDGET UNIT: 1300DESIGN& COMMUNICATIONS PAGE 236 - CITY OF TIGARD MUNICIPAL COURT BUDGET UNIT: 1400 POLICY AND ADMINISTRATION - PAGE 237 MUNICIPAL COURT BUDGET UNIT: 1400 PAGE 238 - CITY OF TIGARD MUNICIPAL COURT BUDGET UNIT: 1400 In 2013, there were 546 citations issued for operating a cell phone while driving in the City of Tigard POLICY AND ADMINISTRATION - PAGE 239 MUNICIPAL COURT BUDGET UNIT: 1400 PAGE 240 - CITY OF TIGARD BUDGET UNIT: 1500CITYRECORDER/RECORDS POLICY AND ADMINISTRATION - PAGE 241 CITY RECORDER/RECORDS BUDGET UNIT: 1500 PAGE 242 - CITY OF TIGARD BUDGET UNIT: 1500CITYRECORDER/RECORDS As of April 2014, there were 26,852 registered voters in Tigard. Oregon was one of the first states to use mail in voting, and Tigard has a drive through ballot box for citizen’s convenience. POLICY AND ADMINISTRATION - PAGE 243 CITY RECORDER/RECORDS BUDGET UNIT: 1500 PAGE 244 - CITY OF TIGARD CITY RECORDER/RECORDS BUDGET UNIT: 1500 To date Laserfiche holds over 180,000 records! This includes city council records dating back to 1961, all available building records as well as adopted budgets, capital improve- ment program and comprehensive financial review documents. In the past year we’ve started to expand the planning department section and will continue until all available case files have been added. POLICY AND ADMINISTRATION - PAGE 245 FINANCE AND INFORMATION SERVICES ORGANIZATION CHART PAGE 246 - CITY OF TIGARD FINANCE & INFORMATION SERVICES ADMIN BUDGET UNIT: 2000 POLICY AND ADMINISTRATION - PAGE 247 FINANCE & INFORMATION SERVICES ADMIN BUDGET UNIT: 2000 PAGE 248 - CITY OF TIGARD FINANCE & INFORMATION SERVICES ADMIN BUDGET UNIT: 2000BUDGETUNIT: 2000 Finance Administration staff help the city’s de- partments with their budgets, as well as managing the city’s resources and expenditures POLICY AND ADMINISTRATION - PAGE 249 BUDGET UNIT: 2000FINANCE& INFORMATION SERVICES ADMIN PAGE 250 - CITY OF TIGARD FINANCIAL OPERATIONS BUDGET UNIT: 2100 POLICY AND ADMINISTRATION - PAGE 251 BUDGET UNIT: 2100FINANCIALOPERATIONS PAGE 252 - CITY OF TIGARD FINANCIAL OPERATIONS BUDGET UNIT: 2100 POLICY AND ADMINISTRATION - PAGE 253 BUDGET UNIT: 2200UTILITYBILLING PAGE 254 - CITY OF TIGARD UTILITY BILLING BUDGET UNIT: 2200 POLICY AND ADMINISTRATION - PAGE 255 BUDGET UNIT: 2200UTILITYBILLING PAGE 256 - CITY OF TIGARD BUDGET UNIT: 2300INFORMATIONTECHNOLOGY POLICY AND ADMINISTRATION - PAGE 257 BUDGET UNIT: 2300INFORMATIONTECHNOLOGY PAGE 258 - CITY OF TIGARD BUDGET UNIT: 2300INFORMATIONTECHNOLOGY The ratio of computers to helpdesk staff is 350:3 POLICY AND ADMINISTRATION - PAGE 259 BUDGET UNIT: 2300INFORMATIONTECHNOLOGY PAGE 260 - CITY OF TIGARD BUDGET UNIT: 2500CONTRACTS& PURCHASING POLICY AND ADMINISTRATION - PAGE 261 BUDGET UNIT: 2500CONTRACTS& PURCHASING PAGE 262 - CITY OF TIGARD BUDGET UNIT: 2500CONTRACTS& PURCHASING The City of Tigard has between 75-100 active contracts throughout the year. Additionally, this department processes an annual average of 6,557 procurement card transactions. POLICY AND ADMINISTRATION - PAGE 263 BUDGET UNIT: 2500CONTRACTS& PURCHASING PAGE 264 - CITY OF TIGARD City of Tigard | ADOPTED BUDGET | FY 2014–2015 The Tualatin River flows through Cook Park in Tigard, Oregon (picture by refalo.com) CAPITAL IMPROVEMENT PLAN - PAGE 265 CAPITAL IMPROVEMENT PLAN - EXECUTIVE SUMMARY The Capital Improvement Plan (CIP) establishes Tigard’s annual budget for capital improvements to its public facility system and plans the following four years to make a 5-year plan. The city allocates funding for its major construction activities in six defined capital improvement categories such as Gen- eral Capital Facilities, Streets, Water, Parks, Stormwater, and Sanitary Sewer. A CIP project is any project that improves or adds value to the city’s infrastructure, costs $50,000 or more, and has a useful life or extends the useful life of infrastructure for 5 years or more. Public facili- ties addressed by the CIP are roads, parks, sanitary sewer, storm drainage, water quality management, domestic water, public buildings, and operations facilities. For the FY 2015 CIP, the city process was revised based on input from Budget Committee and City Council. This process resulted in the genera- tion of a five-year CIP project list that is initially reviewed by council. After submission to council, the CIP list is submitted to citizen members such as the Tigard Transportation Advisory Committee (TTAC), the City Center Advisory Commission (CCAC), and the Parks and Recreation Advisory Board (PRAB) for prioritization. Adopted Master Plans along with established prioritization lists are matched to available funding to identify projects to be budgeted in the current and later years. In addi- tion, staff capacity is considered when building the CIP. Total cost for the FY 2015-19 CIP is estimated to be $214 million over the next five years. Spending for the city’s CIP in FY 2015 is $92 million across all capital funds. Below are key projects budgeted for FY 2014-15: General Capital Facilities  Replacement of exterior wall materials at the Permit Center/City Hall/Police buildings Parks  Design and construction of the Dirksen Nature Park  Development of Senn Park,  Continued purchase of open spaces using proceeds obtained from the city’s $17 million parks bond approved in FY 2010. Sewer  Construction on Derry Dell Creek Sewer Interceptor Relocation,  Construction to stabilize and protect the sewer line for the Krueger Creek Slope Stabiliza- tion project,  Construction on the Barrows Road/Scholls Ferry Road Sewer Line. Stormwater  Bank stabilization project located at Durham Road and Copper Creek Road. PAGE 266 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - EXECUTIVE SUMMARY Streets  Major street improvements including 72nd Avenue/Dartmouth Street, Main Street Green Street Retrofit-Phase 1, and Pacific Highway/Gaarde Street/McDonald Street, and  Design and construction of the sidewalks for 95th Avenue and North Dakota Street, and  Continued slurry seals and overlays via the Pavement Management Program. Water  Continuation of the projects associated with the Tigard/Lake Oswego Partnership,  New Water Source System-wide Improvements,  Barrows Road/Scholls Ferry Road Water Line Extension, and  The Pacific Highway/Gaarde Street Utility Casing Bore Crossing project. The following pages provide a discussion of the CIP on annual operating costs followed by detailed information on all projects by system. This included a discussion of the CIP prioritization process, followed by a complete list of all the pro- jects considered in the FY 15-19 capital improvement plan. This list includes projects in prioritized order by system, funding status, and summary financial information. This list is re-prioritized annually along with new projects submitted by staff as well as citizen committee members. CAPITAL IMPROVEMENT PLAN - PAGE 267 IMPACT OF CAPITAL IMPROVEMENT PLAN ON OPERATING COSTS Capital projects can impact the future operating and maintenance costs of the city. In some instances, such as the construction of a new facility, operating costs will increase. In other instances, such as re- placement of old and defective water meters, operating costs may decrease. As the city makes deci- sions about which capital projects to implement, it must also evaluate the impact these projects will have on future operating costs and determine if the city will be able to afford those costs in future years. By approving the CIP projects, the city is making a commitment to adequately fund those future operating costs. The following discussion summarizes the anticipated major operating cost within each capital improve- ment system: General Facilities Capital Projects System Program The General Facilities Capital Projects System Program’s FY 2014-15 CIP includes required repairs of city facilities. These projects will have very minimal impact on future operating costs as it will not re- quire additional staffing or materials. Parks System Program The Parks System Program FY 2014-15 CIP includes projects that will have a direct impact on the city’s operating costs. The very nature of a park system requires ongoing maintenance costs both for new additions to a system as well as maturing parks or trails. Significant projects listed within the FY 2014-15 parks systems include land acquisitions and development resulting from the $17 million dollar parks bond that was approved by voters in November 2010. A total of $3.0 million dollars has been programmed for both park land acquisition and development as recommended by the city’s Parks & Recreation Advisory Board (PRAB). Of the $3.0 million dollars, a total of $1.33 million has been set aside for acquisition and development for potential sites located within the downtown area. As a result of the bond, over 108 acres of land has been preserved and is expected to require maintenance in the coming years. In FY 2015, the city will contract to determine the parks operational need for current and future parks. - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2014-15 2015-16 2016-17 2017-18 2018-19 PAGE 268 - CITY OF TIGARD IMPACT OF CAPITAL IMPROVEMENT PLAN ON OPERATING COSTS Sanitary Sewer Program Many of the projects in the Sanitary Sewer Program, such as the Major Maintenance and Line Replace- ment programs, address existing and potential maintenance problems and thereby serve to reduce and prevent future operating cost impacts. The Sanitary Sewer Rehabilitation Program addresses those in- frastructure needs that have been identified by the Sanitary Sewer Master Plan. Although additional sewer lines increase operating costs somewhat, these costs are offset by the additional revenues re- ceived by new sewer customers. No new positions related to the Sanitary Sewer program are anticipat- ed in the coming years. Street System Program The operating cost impact of the Streets Program is minimal and no new positions are forecast in the next few years. The Pavement Management Program (PMP) provides corrective and preventative maintenance on city streets including right-of-way maintenance. The program restores the wearing course of the streets and thereby improves the pavement’s integrity, improves ride ability, and enhanc- es traffic safety. By performing these upgrades and improvements to the city’s streets on a regular schedule, the city is able to reduce future operating costs. CAPITAL IMPROVEMENT PLAN - PAGE 269 IMPACT OF CAPITAL IMPROVEMENT PLAN ON OPERATING COSTS The FY 2014-15 CIP budget does contain three major street improvements that are partially funded through grants. These include Walnut Street (116th Avenue to Tiedeman Avenue and 135th Avenue), Pacific Highway/McDonald Street/Gaarde Street Intersection and the Main Street Green Street Retro- fit project. In addition, construction has began to improve the 72nd Avenue/Dartmouth Street Inter- section in conjunction with a substantial private development project. With the complete reconstruc- tion of these streets, the impact on future operating costs is minimal. Storm Water Program The projects within the Strom Water Program are typically designed to address erosion and storm drainage problems and to return wetland areas to a more natural, native state. These projects have a tendency to show a positive impact on future operating costs by postponing the need for additional staff. As a result, no new positions are forecast in the coming years related to this program. - 500,000 1,000,000 1,500,000 PAGE 270 - CITY OF TIGARD IMPACT OF CAPITAL IMPROVEMENT PLAN ON OPERATING COSTS Water System Program A variety of projects are planned for the Water System program in FY 2014-15. A number of these projects, including the Water Main Line Oversizing projects consist of the maintenance or replacement of existing infrastructure. By maintaining the existing system, the city avoids higher future costs than if the system were allowed to deteriorate. While difficult to calculate, it is safe to say that these projects create savings in future operating costs. The FY 2014-15 CIP shows the city’s commitment to infra- structure needs resulting from the annexation of River Terrace. These projects include the Barrows Road/Scholls Ferry Road Water and Sewer Line Extension projects, and the design of the Cach Reser- voir and Pump Station. The FY 2014-15 CIP also sees the continuation of the Lake Oswego Partnership. This project will provide Tigard with a long term water supply with delivery scheduled for 2017. The project will in- clude a raw water intake facility on the Clackamas River, increased piping size, increased water treat- ment plant capacity, and other capacity increases. The full impact of this project on future operating cost is extremely difficult to forecast this early in the project but it is certain there will be a significant effect on materials, utilities, and likely personnel costs. - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 CAPITAL IMPROVEMENT PLAN - PAGE 271 PRIORITIZATION AND DEVELOPMENT OF THE CIP Development of this Capital Improvement Plan (CIP) started almost as soon as the prior CIP was adopted. The list of potential projects to be considered started with funded and unfunded projects in the prior CIP. To this, the city solicited input from citizens and neighborhood groups over a two month period, queried staff, and reviewed master plans. Since many of the projects in the prior CIP are underway, those projects are assumed to continue to move forward and do not need to be prioritized. All of the remaining projects make up the list for prioritization. The prioritization process is intended to state what is most important to Tigard regard- less of cost. For the FY 2015 five-year CIP, the city’s prioritization process was revised with input from Budget Committee and City Council. Through this process, it was determined that council would receive the final list of all projects recommended for prioritization prior to citizen boards and committees. This would allow council members to review the list and make any revisions they deem necessary. It was also agreed that council and citizen boards would focus their efforts solely on ranking transportation and parks projects. Other projects such as water, sanitary sewer, and stormwater are development driv- en and are prioritized based on health and life safety criteria which is conducted by city staff. Project prioritization is performed by the Tigard Transportation Advisory Committee (TTAC), the City Center Advisory Commission (CCAC), and the Parks and Recreation Advisory Board (PRAB) along with a team of city staff. TTAC is responsible for ranking all transportation projects. PRAB pri- oritizes all parks projects, and CCAC handles all parks and transportation projects related to the down- town. City staff uses a set criterion that includes such aspects as public health and safety, environmen- tal impact, system reliability, and implementation of master plans. The citizen committees develop their own ranking criteria and rank the projects accordingly. Each group is given equal weight in scor- ing. The final prioritized project list comes from combining the scoring of all participating groups. Lastly, the prioritization was reviewed and vetted by the Budget Committee. Prioritization is important as an expression of Tigard’s needs. It differs from budgeting in that it is blind of available resources. It is common for high priority projects to go unfunded due to their cost and available resources. The priority of unfunded projects remains important for the city when dis- cussing these projects with our regional partners. This has allowed Tigard to partner with agencies such as Washington County, Oregon Department of Transportation, and Metro. When combining the available resources of Tigard and our partners, the city is able to provide high priority infrastructure that could not be provided on our own. The timeline for CIP development and prioritization is as follows:  September 1 until October 31—Citizen project suggestion period.  November thru January—All submitted projects (includes citizen suggestions and projects that are already in the prior CIP, but not underway) are evaluated and prioritized by staff, Council, and citizens from the Transportation Advisory Committee, City Center Advisory Commission, and the Park Recreation Advisory Board, and Budget Committee.  Mid February—CIP is submitted to City Manager as part of the proposed budget.  Mid April—Proposed CIP is considered by the Budget Committee in public meetings. First Council Meeting in June—City Council adoption of Capital Improvement Plan. PAGE 272 - CITY OF TIGARD PRIORITIZATION AND DEVELOPMENT OF THE CIP How To Read The Prioritization Table: All projects are organized by system: Streets, Water, Parks, Stormwater, and Sanitary Sewer. The table lists each project including priority, name, funding status, funding source, and project total. Projects with a priority of “Current”are projects that are in progress during the prior fiscal year (FY 2014) indicating it is already a high priority. Projects with a priority of “Staff” are those that were submitted by staff after the prioritization process was completed but need- ed to be considered for the CIP. Projects that have a numerical priority “1, 2, 3…” were ranked by citi- zen boards and committees along with staff and are lightly shaded. These projects are fully funded in the five-year CIP. Projects that have dark shading are considered unfunded. Priority Project Name Funding Status Funding Source Total Street Projects Current Pavement Management Program In Progress StreetMaintenanceFee 11,870,000$ Current WalnutStreet Improvements (116th Ave. to Tiedeman Ave.) along with WalnutStreet/135th Ave. Intersection Improvement In Progress-awarded $7million grant thru WaCo Utility, Sanitary Sewer, & Stormwater 382,000$ Current Pedestrian &Cyclist Connections In Progress Gas Tax 682,000$ Current PacificHwy/GaardeSt./McDonald St. Improvement In Progress-Partially Funded:awarded $9.4million grant thru STIP, ODOT, OTIA &WaCo Transportation Development Tax &TrafficImpact Fee 1,705,000$ Current 72nd Ave. /Dartmouth St. Intersection Improvement In Progress City Gas Tax, Transportation Development Tax, TrafficImpact Fee&Underground Utility 2,670,400$ Current 92nd Ave. Sidewalk (Waverly Dr. to Cook Park)In Progress Gas Tax, &Stormwater 579,000$ Current Tiedeman AvenueSidewalk (Tigard Streetto Greenburg Road)In Progress-Partially Funded Gas Tax, &Stormwater 765,000$ Current Tigard Transportation SDC In Progress Gas Tax 51,000$ Current UpperBoones Ferry Road / Durham Road AdaptiveSignalCoordination In Progress-awarded $1million from Federal SurfaceTransportation Program grant Transportation Development Tax 165,000$ Current Main St. /Green St. Retrofit-Phase1 In Progress-$3.4million in MTIP and MSTIP funding Gas Tax, &Water 1,665,068$ Current Main St. /Green St. Improvements-Phase2 In Progress-$1.2million in MTIP funding Gas Tax, Water, Sanitary Sewer, & Stormwater 1,190,576$ LARGEPROJECTS 1 Hall/McDonald Intersection Improvements Left-TurnLane;Right-Turn onto westbound McDonald;Extend left-turn lane northbound McDonaldSt.) Partially Funded City Gas Tax, Transportation DevelopmentTax, Sanitary Sewer, Stormwater, Water 8,900,000$ 2 Tiedeman/GreenburgRd./N. DakotaIntersectionImprovements Unfunded Transportation Development Tax 6,930,000$ 3 72nd Avenue Improvements (Dartmouth St. to PacificHwy) Unfunded Transportation Development Tax 11,400,000$ 4 Tiedeman/N. Dakota/Tigard St. Intersection Reconfiguration Unfunded Gas Tax 10,180,000$ 5 WalnutStreet (Tiedeman Ave. toPacificHwy)Unfunded Gas Tax 9,150,000$ 6 121st Avenue (Walnut to Gaarde) &Complete 121st (WhistlertoTippitt St.) Unfunded Gas Tax, Sanitary Sewer, Stormwater, Water -$ 7 N. DakotaSt. Bridge Replacement Unfunded Unknown -$ 8 Wall Street - Hunzikerto TechCenterDrive Unfunded Unknown -$ 9 Ash Avenue Design Application (RailroadCrossing) Partially Funded Transportation Development Tax &TrafficImpact Fee 450,990$ 10 MainStreet Bridge Painting/Rehabilitation Unfunded Stormwater -$ SMALLPROJECTS -$ 1 Commercial Street Extension (Lincoln to 95th) - Phase 2 Unfunded Gas Tax 2,230,000$ 2 Hall BlvdSidewalks (BonitaRd. toDurhamRd.)Unfunded Gas Tax 1,195,000$ 3 Commercial Street Sidewalk &Storm Detention Facility (Main to Lincoln)Partially Funded-PendingTriMet Fundingat80-20match Gas Tax, Stormwater 1,155,000$ 4 Hall Blvd/ Pfaffle St- New TrafficSignal Unfunded Gas Tax 1,020,000$ 5 Murdock St. Sidewalk (103rd to TempletonSchool)Unfunded Gas Tax 1,605,000$ 6 Hall BlvdSidewalk (BurnhamSt. toSouth of Bonita)Unfunded Gas Tax -$ 7 98th Avenue (Commercial to Greenburg Rd)Unfunded Gas Tax -$ 8 HunzikerSt. Sidewalk (Hall Blvd to 72nd Ave)Unfunded Gas Tax -$ 9 98th Avenue Sidewalk (Murdock toSattler)Unfunded Gas Tax -$ 10 100thAvenue Sidewalk and/orSpeed Humps (McDonaldto Murdock)Unfunded Gas Tax -$ 11 95th Avenue and NorthDakotaStreet Sidewalks Fully Funded-awarded $200,000CDBGgrant Gas Tax 234,000$ 11 Tiedeman Avenue Sidewalk (Tigard St. to Greenburg Rd.)Unfunded Gas Tax -$ 12 Tigard Street (Gallo Ave. toFanno Creek Trail)Unfunded Gas Tax -$ 13 Ash Ave. Sidewalk (Fanno Creek to McDonald)Unfunded Gas Tax -$ 14 78th Avenue Sidewalk (Pfaffle to Spruce St)Unfunded Gas Tax -$ 15 RiverTerrace Capital ImprovementProjects - Transportation Unfunded Gas Tax -$ CAPITAL IMPROVEMENT PLAN - PAGE 273 PRIORITIZATION AND DEVELOPMENT OF THE CIP Water Current WaterMeterReplacement Program In Progress Water 1,140,000$ Current WaterMain Line Oversizing Program In Progress WaterCIP 905,000$ Current AquiferStorage&Recovery Well#3 In Progress WaterCIP 3,853,000$ Current LakeOswego - Tigard WaterPartnership In Progress WaterCIP 137,890,897$ Current WaterLineReplacementProgram In Progress Water 843,000$ Current FireHydrantReplacements Program In Progress Water 670,000$ Current Main Street Waterline Replacement (PacificHwy to Tigard St.)In Progress Water, WaterCIP 621,700$ Current PipelineConnecting 550Zoneto 530Zone In Progress WaterCIP 2,260,000$ Current FireFlow Improvement Program In Progress WaterCIP 550,000$ Current New WaterSourceSystemwideImprovements Program In Progress WaterCIP 925,000$ Current Barrows/Scholls Ferry 18"WaterLine Extensions (Phase2)In Progress WaterSDC 1,364,000$ Current WellAbandonment (Tigard High School)In Progress WaterCIP 165,000$ 1 Red Rock Creek Relocation 12"Waterline Unfunded Water 835,000$ Staff PacificHighway/Gaarde Utility CasingBore Crossing Fully Funded Water, WaterCIP 286,000$ Staff CachReservoirandPumpStation Design Fully Funded Water 1,050,000$ 2 RiverTerrace Capital Improvement Projects - Water Unfunded Unknown -$ General Capital Facilities Current City Hall/Permit Center/PoliceExteriorWalls In Progress GeneralFund 1,746,000$ 1 Facility Enhancement Unfunded General Fund, Water, Sanitary Sewer, Stormwater, &Gas Tax 590,000$ Staff Expand RedRock Conference Room in City Hall Unfunded General Fund 190,000$ Staff Expansionof CR-4includingclosets and external entrance Unfunded General Fund 105,000$ Parks Projects Current Dirksen Nature Park (formerly SummerCreek Park) In Progress-Partially Funded Parks Bond, Urban Forestry, Parks SDC, Sanitary Sewer, Stormwater, &Water 3,437,000$ Current TreeCanopy Replacement Program In Progress Urban Forestry 600,000$ Current Park Land Acquisition In Progress Parks Bond, Parks SDC 1,053,400$ Current Park Land Development In Progress Parks Bond, Parks SDC 60,000$ Current Downtown Land Acquisition In Progress Parks Bond 1,334,501$ Current Tigard StreetTrail&PublicSpace(Main St. to Tiedeman St./Tigard St.) In Progress-Partially Funded Parks Bond, Parks SDC &Parks Capital 822,410$ Current City of Tigard/Tigard-Tualatin SchoolDistrict Park Development In Progress Parks Bond 135,000$ Current Damaged TreeReplacementProgram In Progress Urban Forestry 300,000$ Current Parks System DevelopmentChargeUpdate In Progress Parks SDC 25,000$ Current Senn Park In Progress Parks Bond, Parks SDC 86,798$ Current BullMountain Park In Progress Parks Bond, Parks SDC 75,800$ Current SummerLake Park Restroom Improvements In Progress GeneralFund, Parks Bond, Sanitary Sewer, Stormwater&160,000$ 1 FannoCreek Remeander(City/CWS)Fully Funded-awarded $610,000RFFA grant Park Bond 947,000$ 2 FannoCreek Trail (Library to BonitaRd.) Fully Funded-partof the Fanno Creek Trail Construction project Parks SDC, Sanitary Sewer& Stormwater -$ 2/ Staff FannoCreek Trail Construction(RFFA Grant) Fully Funded-awarded $3million RFFA grant Parks SDC, Sanitary Sewer& Stormwater 4,034,628$ 3 FannoCreek Trail (BonitaRd. to Durham Rd.)Unfunded Unknown -$ 4 TigardStreet Trail &Community Plaza Unfunded Unknown -$ 5 RiverTerrace Capital Improvement Projects - Parks Unfunded Unknown -$ 6 Bonneville Power/Westside Trail - (Barrows toBull MountainRoad)Unfunded Unknown -$ 7 Area64Community Park Unfunded Unknown -$ 8 Downtown Clock Tower Unfunded Unknown -$ 9 Turf Fields at Community Parks Unfunded Unknown -$ 10 PacificHwy at Hall Blvd. Gateway (Flagpole)Unfunded Unknown -$ 11 Expand the Tigard Trail System intothe Tigard Triangle Unfunded Unknown -$ 11 TigardTriangle Area(P3)Unfunded Unknown -$ PAGE 274 - CITY OF TIGARD PRIORITIZATION AND DEVELOPMENT OF THE CIP Stormwater Current Storm DrainageMajor Maintenance In Progress Stormwater 300,000$ Current Copper Creek Bank Stabilization In Progress Stormwater 228,000$ Current Derry DellBank Stabilization (118th Court) In Progress Stormwater 737,000$ Current Community TreePlanting Program In Progress Stormwater 70,000$ 1 Main Street Storm Rehabilitation(FannoCreek)Fully Funded Stormwater 725,000$ 2 Storm Facility Reconstruction(GreenfieldDrive nearPine View)Fully Funded Stormwater 358,000$ 3 PacificHighway Median WQF Project Fully Funded Stormwater 67,850$ 4 Canterbury Lane Storm SewerUpgrade (106thtoPacificHwy)Fully Funded Stormwater 445,000$ 4 BurlcrestDr. (SummerCrestto121stAve.)Fully Funded Stormwater 725,000$ Staff RidgefieldLane WaterQuality Facility Repair/Stabilization Fully Funded Stormwater 365,000$ 5 RiverTerrace Capital Improvement Projects- Stormwater Unfunded Stormwater -$ Sanitary Sewer Current CitywideSanitary Sewer Extension Program In Progress Sanitary Sewer 201,700$ Current Sanitary SewerMajorMaintenanceProgram In Progress Sanitary Sewer 652,000$ Current Fanno Creek SlopeStabilization (ArthurCourt)In Progress Sanitary Sewer 893,000$ Current Derry DellCreek &SewerInterceptorRelocation In Progress Gas Tax, Parks Bond, Parks SDC, Sanitary Sewer, Stormwater& Water CIP 1,465,000$ Current EastTigard Sewer Replacement In Progress Sanitary Sewer 1,530,000$ Current KruegerCreek (Benchview) SlopeStabilization (Gallin Court) In Progress Sanitary Sewer&Water Quality/Quantity 761,300$ Current Sewer Rehabilitation Program In Progress Sanitary Sewer 2,876,000$ Current 72nd Ave SewerModification (Bonita Rd)In Progress Sanitary Sewer 800,000$ Current Sewer MasterPlan UpdateforRiver Terrace In Progress Sanitary Sewer 55,000$ Current Barrows/Scholls Ferry 21"to 24"Sanitary Sewer LineExtensions (River Road)In Progress Sanitary Sewer 910,000$ Current Red Rock Creek CorridorSewer Study In Progress Sanitary Sewer 197,000$ 1 Red Rock Creek/Slope Stabilization Unfunded Sanitary Sewer 200,000$ Staff RiverTerrace Capital Improvement Projects Unfunded Unknown -$ CAPITAL IMPROVEMENT PLAN - PAGE 275 CAPITAL IMPROVEMENT PLAN - STREETS PAGE 276 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STREETS CAPITAL IMPROVEMENT PLAN - PAGE 277 CAPITAL IMPROVEMENT PLAN - STREETS PAGE 278 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STREETS CAPITAL IMPROVEMENT PLAN - PAGE 279 CAPITAL IMPROVEMENT PLAN - STREETS PAGE 280 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STREETS CAPITAL IMPROVEMENT PLAN - PAGE 281 CAPITAL IMPROVEMENT PLAN - STREETS PAGE 282 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STREETS CAPITAL IMPROVEMENT PLAN - PAGE 283 CAPITAL IMPROVEMENT PLAN - STREETS PAGE 284 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STREETS CAPITAL IMPROVEMENT PLAN - PAGE 285 CAPITAL IMPROVEMENT PLAN - STREETS PAGE 286 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STREETS CAPITAL IMPROVEMENT PLAN - PAGE 287 CAPITAL IMPROVEMENT PLAN - STREETS PAGE 288 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STREETS CAPITAL IMPROVEMENT PLAN - PAGE 289 CAPITAL IMPROVEMENT PLAN - STREETS PAGE 290 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STREETS CAPITAL IMPROVEMENT PLAN - PAGE 291 CAPITAL IMPROVEMENT PLAN - STREETS PAGE 292 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - PARKS CAPITAL IMPROVEMENT PLAN - PAGE 293 CAPITAL IMPROVEMENT PLAN - PARKS PAGE 294 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - PARKS CAPITAL IMPROVEMENT PLAN - PAGE 295 CAPITAL IMPROVEMENT PLAN - PARKS PAGE 296 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - PARKS CAPITAL IMPROVEMENT PLAN - PAGE 297 CAPITAL IMPROVEMENT PLAN - PARKS PAGE 298 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - PARKS CAPITAL IMPROVEMENT PLAN - PAGE 299 CAPITAL IMPROVEMENT PLAN - PARKS PAGE 300 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - PARKS CAPITAL IMPROVEMENT PLAN - PAGE 301 CAPITAL IMPROVEMENT PLAN - PARKS PAGE 302 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - PARKS CAPITAL IMPROVEMENT PLAN - PAGE 303 CAPITAL IMPROVEMENT PLAN - PARKS PAGE 304 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - PARKS CAPITAL IMPROVEMENT PLAN - PAGE 305 CAPITAL IMPROVEMENT PLAN - PARKS PAGE 306 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - PARKS CAPITAL IMPROVEMENT PLAN - PAGE 307 CAPITAL IMPROVEMENT PLAN - WATER PAGE 308 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - WATER CAPITAL IMPROVEMENT PLAN - PAGE 309 CAPITAL IMPROVEMENT PLAN - WATER PAGE 310 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - WATER CAPITAL IMPROVEMENT PLAN - PAGE 311 CAPITAL IMPROVEMENT PLAN - WATER PAGE 312 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - WATER CAPITAL IMPROVEMENT PLAN - PAGE 313 CAPITAL IMPROVEMENT PLAN - WATER PAGE 314 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - WATER CAPITAL IMPROVEMENT PLAN - PAGE 315 CAPITAL IMPROVEMENT PLAN - WATER PAGE 316 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - WATER CAPITAL IMPROVEMENT PLAN - PAGE 317 CAPITAL IMPROVEMENT PLAN - WATER PAGE 318 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - WATER CAPITAL IMPROVEMENT PLAN - PAGE 319 CAPITAL IMPROVEMENT PLAN - WATER PAGE 320 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - SANITARY SEWER CAPITAL IMPROVEMENT PLAN - PAGE 321 CAPITAL IMPROVEMENT PLAN - SANITARY SEWER PAGE 322 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - SANITARY SEWER CAPITAL IMPROVEMENT PLAN - PAGE 323 CAPITAL IMPROVEMENT PLAN - SANITARY SEWER PAGE 324 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - SANITARY SEWER CAPITAL IMPROVEMENT PLAN - PAGE 325 CAPITAL IMPROVEMENT PLAN - SANITARY SEWER PAGE 326 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - SANITARY SEWER CAPITAL IMPROVEMENT PLAN - PAGE 327 CAPITAL IMPROVEMENT PLAN - SANITARY SEWER PAGE 328 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - SANITARY SEWER CAPITAL IMPROVEMENT PLAN - PAGE 329 CAPITAL IMPROVEMENT PLAN - SANITARY SEWER PAGE 330 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - SANITARY SEWER CAPITAL IMPROVEMENT PLAN - PAGE 331 CAPITAL IMPROVEMENT PLAN - STORMWATER PAGE 332 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STORMWATER CAPITAL IMPROVEMENT PLAN - PAGE 333 CAPITAL IMPROVEMENT PLAN - STORMWATER PAGE 334 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STORMWATER CAPITAL IMPROVEMENT PLAN - PAGE 335 CAPITAL IMPROVEMENT PLAN - STORMWATER PAGE 336 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STORMWATER CAPITAL IMPROVEMENT PLAN - PAGE 337 CAPITAL IMPROVEMENT PLAN - STORMWATER PAGE 338 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STORMWATER CAPITAL IMPROVEMENT PLAN - PAGE 339 CAPITAL IMPROVEMENT PLAN - STORMWATER PAGE 340 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - STORMWATER CAPITAL IMPROVEMENT PLAN - PAGE 341 CAPITAL IMPROVEMENT PLAN - FACILITIES PAGE 342 - CITY OF TIGARD CAPITAL IMPROVEMENT PLAN - FACILITIES DEBT SERVICE- PAGE 343 DEBT SERVICE The city has four types of debt currently outstanding. Two general obligation bonds secured by the city’s authority to levy property taxes; A Build America Bond (BAB) for transportation projects that will be repaid with gas tax, city gas tax, transportation impact fees, and transportation development tax; Assessment bonds secured by installment payment contracts with property owners; and Water revenue debt used to pay for the city’s water agreement with the City of Lake Oswego. The wa- ter revenue debt is in two pieces: a $97.7 million water revenue bond and $2.4 million ARRA loan. Al- so, the city has the authority to issue short term bond anticipation notes secured by the city’s full faith and credit and the ability to assess property owners when the related project is complete. The city’s current outstanding debt payments (principal plus interest) are as follows: Fiscal Year General Obligation Build America Bonds Assessments Water Revenue Debt Total FY 14-15 $ 2,194,700 $ 915,535 $ 103,054 $ 4,881,034 $ 8,094,322 FY 15-16 2,194,500 904,433 103,121 4,881,033 8,083,086 FY 16-17 2,193,100 892,460 103,107 6,722,983 9,911,650 FY 17-18 2,195,425 884,618 103,088 6,721,233 9,904,363 FY 18-19 2,197,625 870,688 103,133 6,722,233 9,893,678 FY 18-19- FY 41-42 19,130,725 860,888 80,663 159,567,180 179,639,455 Total $ 30,106,075 $ 5,328,620 $ 596,164 $ 189,495,696 $225,526,555 Future Debt Limit At this time, the city intends to issue a second Water Revenue Bond FY 2014-15. Depending on whether or not the Lake Oswego-Tigard Water Partnership receives favorable construction bids, the amount of this next issue will range between $42 and $55.5 million. The portion of the Build America Bonds that are repaid with Gas Tax revenues will compete with op- erational needs for road maintenance. Otherwise, existing debt levels have no direct impact on current or future city operations. In 2010 Moody’s gave the City of Tigard a general obligation bond rating of Aa2. In the spring of 2014 Standard and Poor’s upgraded its AA rating for the city’s general obligation bonds to AA+. In 2012, the city received its first revenue bond ratings for its water revenue bond. The city received ratings of A1 by Moody’s and AA- by Standard and Poor’s. Legal Debt Limit Oregon statutes limit local government debt to 3% of true cash value. The debt limit calculation ex- cludes debt related to assessments; therefore only outstanding general obligation debt is subject to the limitation. The limit for FY 2014-15 will be $210,982,614 based upon the estimated market value of $7,032,753,815. PAGE 344 - CITY OF TIGARD DEBT SERVICE SUMMARY The following tables and graphs depict future debt service requirements in total and by debt service type. These figures also present schedules detailing required debt service expenditures for FY 2014-15. FY 2014-15 Debt Service GENERAL OBLIGATION BONDS- Paid from property taxes Parks Bond $1,292,525 Library Bond $902,175 $2,194,700 BUILD AMERICA BOND Paid primarily from Gas Tax and City Gas Tax 2010 Transportation Bond $915,535 $915,535 ASSESSMENTS - BANCROFT IMPROVEMENT BONDS Paid primarily from special assessments 2002 69th Avenue LID 103,054 Additional Bond Calls 0 $103,054 WATER REVENUE DEBT Paid primarily from Water Rates & SDCs 2012 Water Revenue Bond $4,719,850 ARRA Loan $161,183 $4,881,033 $8,094,322TOTAL 2014-15 DEBT SERVICE General Obligation 27% Bancroft Improvement 1% Build America Bond 12% Water Revenue Debt 60% Debt Service by Type $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 $180.00 FY 2009-10 Actual FY 2010-11 Actual FY 2011-12 Actual FY 2012-13 Actual FY 2013-14 Revised FY 2014-15 Adopted DEBT SERVICE- PAGE 345 OUTSTANDING DEBT ISSUES Original Interest Original Principal Final Source of Issue Amount Rate Issue Date Outstanding Maturity Payment GENERAL OBLIGATION BONDS Library Bond $8,655,000 2.92%02/03/11 $6,875,000 12/01/22 Property Taxes Parks Bond $17,000,000 4.15%02/03/11 $15,335,000 06/01/31 Property Taxes TOTAL GENERAL OBLIGATION BONDS OUTSTANDING $22,210,000 SPECIAL ASSESSMENT BONDS 69th Avenue Local Improvement District Special Series 2002 $1,307,969 7.25%06/27/02 $479,856 07/01/17 Assessments TOTAL SPECIAL ASSESSMENT BONDS $479,856 BUILD AMERICA BOND 2010 Transportation Bonds $7,250,000 4.35%06/21/10 $4,610,000 06/01/20 Gas Tax, City Gas Tax, TIF, & TDT TOTAL BUILD AMERICA BONDS $4,610,000 WATER REVENUE DEBT 2012 Water Revenue Bond $97,720,000 4.04%05/01/12 $97,720,000 08/01/42 Water User Fees & Water SDC's ARRA Loan $2,398,000 3.00%03/06/12 $2,201,107 12/01/31 Water User Fees & Water SDC's TOTAL WATER REVENUE DEBT OUTSTANDING $99,921,107 GRAND TOTAL - CITY OF TIGARD DEBT OUTSTANDING $127,220,963 PAGE 346 - CITY OF TIGARD DEBT SERVICE SCHEDULE GENERAL OBLIGATION BOND—LIBRARY The Tigard Public Library general obligation bond was authorized by voters on May 21, 2002. The initial bond was purchased in whole by the State of Oregon through the Oregon Economic and Com- munity Development Department. In 2011, the initial bond was refunded at the same time that Tigard sold the Parks bond. The new issue saved Tigard property tax payers $863,289 over the remaining life of the bond. Bond proceeds were used to purchase a 14.7 acre parcel and construct a two-story 47,500 square foot library. The new library opened in August 2004. Amount Issued: $8,655,000 Issue Date: 2/3/2011 Original Issue True Interest Rate (TIC): 2.923% Principal Outstanding as of July 1, 2014: $6,875,000 Fiscal Year Payment Due Interest Rate Principal Due Interest Due Total Debt Service FY 14-15 12/1/2014 3.00% 665,000 123,575 788,575 6/1/2015 113,600 113,600 FY 15-16 12/1/2015 3.00% 685,000 113,600 798,600 6/1/2016 103,325 103,325 FY 16-17 12/1/2016 3.00% 705,000 103,325 808,325 6/1/2017 92,750 92,750 FY 17-18 12/1/2017 3.00% 730,000 92,750 822,750 6/1/2018 81,800 81,800 FY 18-19 12/1/2018 4.00% 755,000 81,800 836,800 6/1/2019 66,700 66,700 FY 19-20 12/1/2019 4.00% 785,000 66,700 851,700 6/1/2020 51,000 51,000 FY 20-21 12/1/2020 4.00% 815,000 51,000 866,000 6/1/2021 34,700 34,700 FY 21-22 12/1/2021 4.00% 850,000 34,700 884,700 6/1/2022 17,700 17,700 FY 22-23 12/1/2022 4.00% 885,000 17,700 902,700 Total $6,875,000 $1,246,725 $8,121,725 DEBT SERVICE- PAGE 347 DEBT SERVICE SCHEDULE GENERAL OBLIGATION BOND—PARKS The Tigard Parks general obligation bond was authorized by voters on November 2, 2010. Bond pro- ceeds will be used to purchase and develop parks in Tigard. At least 80 percent of the proceeds will be used to purchase land and the remainder can be used to develop parks. In addition, 10 percent can be used in Downtown Tigard in the same 80/20 split. $17,000,000 2/3/2011 Original Issue True Interest Rate (TIC): 4.148% Principal Outstanding as of July 1, 2014: $15,335,000 Fiscal Year Payment Due Interest Rate Principal Due Interest Due Total Debt Service FY 14-15 12/1/2014 313,763 313,763 6/1/2015 3.00% 665,000 313,763 978,763 FY 15-16 12/1/2015 303,788 303,788 6/1/2016 3.00% 685,000 303,788 988,788 FY 16-17 12/1/2016 293,513 293,513 6/1/2017 3.00% 705,000 293,513 998,513 FY 17-18 12/1/2017 282,938 282,938 6/1/2018 3.00% 725,000 282,938 1,007,938 FY 18-19 12/1/2018 272,063 272,063 6/1/2019 3.00% 750,000 272,063 1,022,063 FY 19-20 12/1/2019 257,063 257,063 6/1/2020 4.00% 780,000 257,063 1,037,063 FY 20-21 12/1/2020 241,463 241,463 6/1/2021 4.00% 810,000 241,463 1,051,463 FY 21-22 12/1/2021 225,263 225,263 6/1/2022 4.00% 845,000 225,263 1,070,263 FY 22-23 12/1/2022 208,363 208,363 6/1/2023 4.00% 875,000 208,363 1,083,363 FY 23-24 12/1/2023 190,863 190,863 6/1/2024 4.00% 910,000 190,863 1,100,863 FY 24-25 12/1/2024 172,663 172,663 6/1/2025 4.00% 950,000 172,663 1,122,663 FY 25-26 12/1/2025 152,475 152,475 6/1/2026 4.25% 990,000 152,475 1,142,475 FY 26-27 12/1/2026 131,438 131,438 6/1/2027 4.25% 1,030,000 131,438 1,161,438 FY 27-28 12/1/2027 108,263 108,263 6/1/2028 4.50% 1,075,000 108,263 1,183,263 FY 28-29 12/1/2028 84,075 84,075 6/1/2029 4.50% 1,125,000 84,075 1,209,075 FY 29-30 12/1/2029 57,356 57,356 6/1/2030 4.75% 1,180,000 57,356 1,237,356 FY 30-31 12/1/2030 29,331 29,331 6/1/2031 4.75% 1,235,000 29,331 1,264,331 Total $15,335,000 $6,649,350 $21,984,350 Amount Issued: Issue Date: PAGE 348 - CITY OF TIGARD GENERAL OBLIGATION BOND-SUMMARY $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031AnnualDebtService Fiscal Year Projected Annual Debt Service Principal Interest FY 2014-15 debt service on the outstanding General Obligation Bonds is as follows: General Obligation Bonds Date Interest Principal Total 2011A Issue - Parks Bond 12/01/14 $313,763 $313,763 06/01/15 $313,763 $665,000 $978,763 2011B Issue - Library Building 12/01/14 $123,575 $665,000 $788,575 06/01/15 $113,600 $113,600 Total General Obligation Bond Debt Service $864,700 $1,330,000 $2,194,700 DEBT SERVICE- PAGE 349 DEBT SERVICE SCHEDULE TIGARD TRANSPORTATION BUILD AMERICA BOND The Tigard Transportation Bond is a full faith and credit obligation authorized by Tigard City Council in Resolution #10-26 and issued on June 21, 2010. The bond has a ten year repayment with an oppor- tunity to call the bond after seven years. The bond is a Build America Bond (BAB) which is part of the American Recovery and Reinvestment Act (ARRA). A BAB is a taxable bond for the bond holder. To make the bond attractive to the bond holder, the interest rate is higher than a tax-exempt bond; however, the Federal Government initially agreed to reimburse the City of Tigard 35% of the interest paid by the City (the BAB Subsidy). Due to sequestering, the Federal Government has reduced that subsidy to about 31.95%. The result for this Transportation Bond is that Tigard pays interest at 4.35% to the Bond Holder, but after the BAB Subsidy, the net debt service is lowered and the net interest cost to Tigard is about 2.96%. The bond was issued to pay for two projects - Burnham Street Reconstruction and the Greenburg Rd. / Main Street / Pacific Highway (Hwy 99) Intersection. Of the $7.25 million in proceeds, $4.75 million (65.5%) is for the Burnham Street Reconstruction and will be repaid with Gas Tax Fund reve- nues. The remaining $2.5 million (34.5%) in bond proceeds is for the Greenburg Road / Main Street / Pacific Highway Intersection and will be repaid with City Gas Tax Fund revenues. Payments will be made proportionally from each fund. The projects are also eligible for Transportation Impact Fee Fund (TIF) and Transportation Development Tax Fund (TDT) revenues which may also be used for repayment. From a budgetary basis, Tigard will adopt the Total Debt Service payment, the BAB Subsidy will be proportionally returned to the contributing funds and the proceeds can be used within the limitations of those funds. One potential use will be to contribute to the following year's pay- ments. Amount Issued: $7,250,000 Issue Date: 6/21/2010 Original Issue True Interest Rate (TIC): 4.350% Principal Outstanding as of July 1, 2014: $4,610,000 Fiscal Year Payment Due Interest Rate Principal Due Interest Due Total Debt Service BAB Subsidy Net Debt Service Resulting Net Interest Rate FY 14-15 12/1/2014 4.35% 100,267.50 100,267.50 32,035.47 68,232.03 2.83% 6/1/2015 4.35% 715,000 100,267.50 815,267.50 32,035.47 783,232.03 2.83% FY 15-16 12/1/2015 4.35% 84,716.25 84,716.25 27,066.84 57,649.41 2.83% 6/1/2016 4.35% 735,000 84,716.25 819,716.25 27,066.84 792,649.41 2.83% FY 16-17 12/1/2016 4.35% 68,730.00 68,730.00 21,959.24 46,770.77 2.83% 6/1/2017 4.35% 755,000 68,730.00 823,730.00 21,959.24 801,770.77 2.83% FY 17-18 12/1/2017 4.35% 52,308.75 52,308.75 16,712.65 35,596.10 2.83% 6/1/2018 4.35% 780,000 52,308.75 832,308.75 16,712.65 815,596.10 2.83% FY 18-19 12/1/2018 4.35% 35,343.75 35,343.75 11,292.33 24,051.42 2.83% 6/1/2019 4.35% 800,000 35,343.75 835,343.75 11,292.33 824,051.42 2.83% FY 19-20 12/1/2019 4.35% 17,943.75 17,943.75 5,733.03 12,210.72 2.83% 6/1/2020 4.35% 825,000 17,943.75 842,943.75 5,733.03 837,210.72 2.83% Total $4,610,000 718,620.00 5,328,620.00 229,599.09 5,099,020.91 PAGE 350 - CITY OF TIGARD TIGARD TRANSPORTATION BUILD AMERICA BOND SUMMARY FY 2014-15 debt service on the outstanding 2010 Transportation Build America Bond is as follows: Net Net 2011 Transportation BAB Date Interest Principal Total Interest Total 12/1/2014 $100,268 $0 $100,268 $68,232 $68,232 6/1/2015 $100,268 $715,000 $815,268 $68,232 $783,232 Total Transportation BAB Debt Service $200,535 $715,000 $915,535 $136,464 $851,464 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 2014 2015 2016 2017 2018 2019 2020AnnualDebtService Fiscal Year Projected Annual Net Debt Service Principal Net Interest DEBT SERVICE- PAGE 351 DEBT SERVICE SCHEDULE ASSESSMENT-69TH AVENUE LOCAL IMPROVEMENT DISTRICT The 69th Avenue Local Improvement District (LID) was finalized in 2002. This Bancroft Bond was issued to retire the interim financing used for construction of the LID. The source of revenue for repayment of the bonds are payments on installment contracts executed by benefited property owners. LID assessments are secured by liens on the benefited property. $1,307,969 6/27/2002 7.250% $479,856 Fiscal Year Payment Due Interest Rate Principal Due Interest Due Total Debt Service FY 14-15 7/1/2014 7.25%34,100 17,395 51,495 1/1/2015 7.25%35,400 16,159 51,559 FY 15-16 7/1/2015 7.25% 36,700 14,876 51,576 1/1/2016 7.25% 38,000 13,545 51,545 FY 16-17 7/1/2016 7.25% 39,400 12,168 51,568 1/1/2017 7.25% 40,800 10,740 51,540 FY 17-18 7/1/2017 7.25% 42,300 9,261 51,561 1/1/2018 7.25% 43,800 7,727 51,527 FY 18-19 7/1/2018 7.25% 45,400 6,139 51,539 1/1/2019 7.25% 47,100 4,494 51,594 FY 19-20 7/1/2019 7.25% 48,700 2,786 51,486 1/1/2020 7.25% 28,156 1,021 29,177 Total $479,856 $116,308 $596,164 Original Issue True Interest Rate (TIC): Principal Outstanding as of July 1, 2014: Amount Issued: Issue Date: PAGE 352 - CITY OF TIGARD ASSESSMENT-BANCROFT IMPROVEMENT BONDS SUMMARY FY 2014-15 debt service on outstanding Bancroft Bonds is scheduled as follows: Bancroft Bonds Date Interest Principal Total 2002 - 69th Ave LID 07/01/14 $17,395 $34,100 $51,495 01/01/15 $16,159 $35,400 $51,559 Additional Bond Calls as Needed $0 $0 $0 Total Bancroft Debt Service $33,554 $69,500 $103,054 $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 2015 2016 2017 2018 2019 2019AnnualDebtService Fiscal Year Projected Annual Debt Service Principal Interest DEBT SERVICE- PAGE 353 WATER REVENUE DEBT-WATER REVENUE BOND The Water Revenue Bond was issued in May 2012. This is the first revenue bond issue that will pay for Tigard's water in- frastructure and securing a water source for Tigard through the Lake Oswego / Tigard Water Partnership. The Partnership will expand the capacity of the Lake Oswego Water Treatment Plant, providing Tigard with 14 million gallons of water per day. The bonds will be repaid by water usage rates and is eligible to be repaid using Water SDCs as well. Tigard is sched- uled to receive water from the plant in 2016, when water purchases from Portland will end. The debt service is set up to make interest only payments through 2015 with higher annual debt service payments that include principal starting in 2016 when Portland water is no longer being purchased. Tigard has authority to issue up to $62.3 million more water revenue debt and anticipates a second issue in FY 2015 between $42 and $55.5 million to complete the project. $97,720,000 5/1/2012 Original Issue True Interest Rate (TIC): 4.042% Principal Outstanding as of July 1, 2014: $97,720,000 Fiscal Year Payment Due Interest Rate Principal Due Interest Due Total Debt Service FY 14-15 8/1/2014 3.00% 0 2,359,925 2,359,925 2/1/2015 2,359,925 2,359,925 FY 15-16 8/1/2015 3.00% 0 2,359,925 2,359,925 2/1/2016 2,359,925 2,359,925 FY 16-17 8/1/2016 3.00% 1,870,000 2,359,925 4,229,925 2/1/2017 2,331,875 2,331,875 FY 17-18 8/1/2017 4.00% 1,935,000 2,331,875 4,266,875 2/1/2018 2,293,175 2,293,175 FY 18-19 8/1/2018 4.00% 2,015,000 2,293,175 4,308,175 2/1/2019 2,252,875 2,252,875 FY 19-20 8/1/2019 4.00% 2,100,000 2,252,875 4,352,875 2/1/2020 2,210,875 2,210,875 FY 20-21 8/1/2020 4.00% 2,185,000 2,210,875 4,395,875 2/1/2021 2,167,175 2,167,175 FY 21-22 8/1/2021 4.00% 2,275,000 2,167,175 4,442,175 2/1/2022 2,121,675 2,121,675 FY 22-23 8/1/2022 4.00% 2,365,000 2,121,675 4,486,675 2/1/2023 2,074,375 2,074,375 FY 23-24 8/1/2023 5.00% 2,475,000 2,074,375 4,549,375 2/1/2024 2,012,500 2,012,500 FY 24-25 8/1/2024 5.00% 2,605,000 2,012,500 4,617,500 2/1/2025 1,947,375 1,947,375 FY 25-26 8/1/2025 5.00% 2,735,000 1,947,375 4,682,375 2/1/2026 1,879,000 1,879,000 FY 26-27 8/1/2026 5.00% 2,875,000 1,879,000 4,754,000 2/1/2027 1,807,125 1,807,125 FY 27-28 8/1/2027 5.00% 3,025,000 1,807,125 4,832,125 2/1/2028 1,731,500 1,731,500 FY 28-29 8/1/2028 5.00% 3,180,000 1,731,500 4,911,500 2/1/2029 1,652,000 1,652,000 FY 29-30 8/1/2029 5.00% 3,340,000 1,652,000 4,992,000 2/1/2030 1,568,500 1,568,500 FY 30-31 8/1/2030 5.00% 3,515,000 1,568,500 5,083,500 2/1/2031 1,480,625 1,480,625 FY 31-32 8/1/2031 5.00% 3,695,000 1,480,625 5,175,625 2/1/2032 1,388,250 1,388,250 FY 32-33 8/1/2032 5.00% 3,885,000 1,388,250 5,273,250 2/1/2033 1,291,125 1,291,125 FY 33-34 8/1/2033 5.00% 4,080,000 1,291,125 5,371,125 2/1/2034 1,189,125 1,189,125 FY 34-35 8/1/2034 5.00% 4,290,000 1,189,125 5,479,125 2/1/2035 1,081,875 1,081,875 FY 35-36 8/1/2035 5.00% 4,510,000 1,081,875 5,591,875 2/1/2036 969,125 969,125 FY 36-37 8/1/2036 5.00% 4,745,000 969,125 5,714,125 2/1/2037 850,500 850,500 FY 37-38 8/1/2037 5.00% 4,985,000 850,500 5,835,500 2/1/2038 725,875 725,875 FY 38-39 8/1/2038 5.00% 5,240,000 725,875 5,965,875 2/1/2039 594,875 594,875 FY 39-40 8/1/2039 5.00% 5,510,000 594,875 6,104,875 2/1/2040 457,125 457,125 FY 40-41 8/1/2040 5.00% 5,795,000 457,125 6,252,125 2/1/2041 312,250 312,250 FY 41-42 8/1/2041 5.00% 6,090,000 312,250 6,402,250 2/1/2042 160,000 160,000 FY 42-43 8/1/2042 5.00% 6,400,000 160,000 6,560,000 0 Total $97,720,000 $88,901,175 $186,621,175 Amount Issued: Issue Date: PAGE 354 - CITY OF TIGARD WATER REVENUE DEBT-ARRA WATER LOAN As part of the American Recovery and Reinvestment Act of 2009, Tigard received a grant and a loan to rehabilitate the water pump and seismic upgrades at our 10 mil water reservoir. The loan became set with the completion of the project in March 2012. The debt is being repaid with water user fees. Amount Issued: $2,398,000 Issue Date: 3/6/2012 Original Issue True Interest Rate (TIC): 3.000% Principal Outstanding as of July 1, 2014: $2,201,107 Fiscal Year Payment Due Interest Rate Principal Due Interest Due Total Debt Service FY 14-15 12/1/2014 3.00% 95,150 66,033 161,183 FY 15-16 12/1/2015 3.00% 98,005 63,179 161,183 FY 16-17 12/1/2016 3.00% 100,945 60,239 161,183 FY 17-18 12/1/2017 3.00% 103,973 57,210 161,183 FY 18-19 12/1/2018 3.00% 107,092 54,091 161,183 FY 19-20 12/1/2019 3.00% 110,305 50,878 161,183 FY 20-21 12/1/2020 3.00% 113,614 47,569 161,183 FY 21-22 12/1/2021 3.00% 117,023 44,161 161,183 FY 22-23 12/1/2022 3.00% 120,533 40,650 161,183 FY 23-24 12/1/2023 3.00% 124,149 37,034 161,183 FY 24-25 12/1/2024 3.00% 127,874 33,310 161,183 FY 25-26 12/1/2025 3.00% 131,710 29,473 161,183 FY 26-27 12/1/2026 3.00% 135,661 25,522 161,183 FY 27-28 12/1/2027 3.00% 139,731 21,452 161,183 FY 28-29 12/1/2028 3.00% 143,923 17,260 161,183 FY 29-30 12/1/2029 3.00% 148,241 12,943 161,183 FY 30-31 12/1/2030 3.00% 152,688 8,495 161,183 FY 31-32 12/1/2031 3.00% 130,491 3,915 134,406 Total $2,201,107 $673,414 $2,874,521 DEBT SERVICE- PAGE 355 WATER REVENUE DEBT SUMMARY $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 $6,000,000 $6,500,000 $7,000,000 2015 2020 2025 2030 2035 2040AnnualDebtService Fiscal Year Projected Annual Debt Service Principal Interest FY 2014-15 debt service on the outstanding Water Revenue Debt is as follows: Water Revenue Debt Date Interest Principal Total Water Revenue Bond 08/01/14 $2,359,925 $2,359,925 02/01/15 $2,359,925 $2,359,925 ARRA Loan 12/01/14 $66,033 $95,150 $161,183 Total Water Revenue Debt Service $4,785,883 $95,150 $4,881,033 PAGE 356 - CITY OF TIGARD City of Tigard | ADOPTED BUDGET | FY 2014–2015 Tigard is a wonderful city for biking and walking activities. The city provides a bike route map within our city offices. FUND SUMMARIES- PAGE 357 FUND SUMMARIES INTRODUCTION Fund Type Fund Name General General Fund Enterprise Sanitary Sewer, Stormwater, Water, Water CIP, Water Debt Service, Water Quality/Quantity, Water SDC Special Revenue Building, City Gas, Criminal Forfeiture, Electrical Inspection, Gas Tax, Li- brary Donation and Bequests, Parks Bond, Parks SDC, Street Maintenance, Traffic Impact Fee, Transportation Development Tax, Urban Forestry, Un- derground Utility Debt Service Bancroft, General Obligation Capital Projects Facilities, Parks, Transportation CIP Internal Service Central Services, Fleet/Property Maintenance, Insurance The following section shows a detailed listing of the resources and requirements for each fund used by the city. Explanatory narratives are provided for each of the funds. In FY 2014-15, the city will use the following funds: PAGE 358 - CITY OF TIGARD GENERAL FUND The General Fund is used to account for the city’s revenues and expenditures that are of a general na- ture and therefore not required to be recorded in another fund. General Fund revenues include prop- erty taxes, fees and charges for services, franchise fees, fines, interest, revenue from other agencies, and transfers from other funds. Expenditures out of the General Fund include programmatic expenses such as Police, Library, Community Development, and Parks, as well as transfers for capital improve- ment. In total, the General Fund continues to see limited growth in revenues. Some revenue streams may have modest growth, such as property taxes, while others are expected to remain significantly flat, such as hotel/motel tax. Property taxes constitute the largest single source of revenue for the General Fund. Revenues received from other agencies include Hotel/Motel Tax, Washington County Cooper- ative Library Services (WCCLS) distribution share, Liquor Tax, Cigarette Tax, State Revenue Sharing distribution, and miscellaneous other Intergovernmental Revenue. Franchise Fees are paid by utility entities for their use of public right-of-ways and are based on a percentage of their gross revenues col- lected within the city. Property Tax, Intergovernmental, and Franchise Fees make up the three largest revenue categories. These three areas continue to see limited growth since the downturn in the econo- my. The city anticipates that General Fund revenues will continue to grow slowly in the next couple of fis- cal years. As the City of Tigard, along with the State of Oregon and the nation, continues to slowly climb out of the economic downturn, especially in development and construction, revenues will see slight increases. The Total Budget and Total Requirements in the General Fund show a modest increase in the fiscal year 2014-15 budget when compared to the previous fiscal year budget. Program Expenditures for operations is increasing 4.5%. FUND SUMMARIES- PAGE 359 GENERAL FUND PAGE 360 - CITY OF TIGARD GENERAL FUND FUND SUMMARIES- PAGE 361 GENERAL FUND PAGE 362 - CITY OF TIGARD ENTERPRISE FUND-SANITARY SEWER Funds collected in the Sanitary Sewer Fund are applied to the operation, maintenance, repair, and up- grade of the city’s sanitary sewer infrastructure. Within Washington County, a special district, Clean Water Services (CWS), provides stormwater and sanitary sewer treatment and sets all fees related to these services. CWS contracts with the City of Tigard for billing and collection of sanitary sewer charges within the city’s limits and to provide stormwater system maintenance within the city. Sanitary Sewer Connection Fees are charged to developers and property owners upon connection to the city’s sewer system. The amount of this fee is determined by CWS each year. CWS also sets the base monthly sewer service charges. A customer’s monthly sewer charge is comprised of the base charge plus a consumption charge which is based on the customer’s average water consumption during the previous winter. The city retains approximately 16% (11% in the Sanitary Sewer Fund and 5% as a franchise fee in the General Fund) of these revenues and sends the remaining 84% to CWS each month. FUND SUMMARIES- PAGE 363 ENTERPRISE FUND-SANITARY SEWER PAGE 364 - CITY OF TIGARD ENTERPRISE FUND-STORMWATER Funds collected in the Stormwater Fund are applied to the operation, maintenance, repair, and upgrade of the city’s stormwater facilities. Within Washington County, a special district, Clean Water Services (CWS), provides stormwater and sanitary sewer treatment and sets all fees related to these services. CWS contracts with the City of Tigard for billing and collection of stormwater charges within the city’s limits and to provide stormwater system maintenance within the city. The city currently retains 75% of the stormwater fees collected by the city. The city also assesses a $2.00 per month surcharge for storm- water system maintenance. FUND SUMMARIES- PAGE 365 The Water Quality/Quantity Fund is a subsidiary fund of the Stormwater Fund. The city charges Wa- ter Quality/Quantity fees, which are established by Clean Water Services, on certain development ac- tivities in the city. Revenues collected are used to fund offsite stormwater system improvements and capacity improvements to the system. Revenues, as they are tied directly to development activities, fluctuate to a degree and as such have been down over the past few years. In addition to a slowdown in development activity, some developers are choosing to build their own on-site stormwater detention facilities rather than pay the fee. ENTERPRISE FUND-WATER QUALITY/QUANTITY PAGE 366 - CITY OF TIGARD ENTERPRISE FUND-WATER The City of Tigard manages the operation of the water system through intergovernmental agreements with the cities of King City and Durham and with the Tigard Water District. The Water Fund is the primary operating fund for the water system and accounts for all costs associated to the water opera- tion, including ongoing maintenance. The Water Fund also transfers to the Water CIP Fund for vari- ous capital improvement projects and to the Water Debt Service Fund to pay debt service on water revenue bonds. The Water Fund maintains a Rate Stabilization Account of $2.0 million. In 2008 Tigard entered into a water partnership with the City of Lake Oswego on a long-term water source. The two cities agreed to jointly:  Expand Lake Oswego's water treatment facility  Replace the existing river intake  Construct a reservoir  Upsize transmission lines  Develop existing water rights and permits on the Clackamas River The improvements would allow Tigard and Lake Oswego to produce up to 38 million gallons of water per day (mgd). In December 2013, the two cities agreed to transfer 4 million gallons of water per day from Lake Oswego to Tigard, bringing Tigard up to 18 mgd. Water is anticipated to begin flowing from the new facility by 2016. Based on this water financing plan that was approved by Council in 2010, Tigard's share of the im- provements and cost to buy into Lake Oswego's existing system is estimated to total $155 million. FUND SUMMARIES- PAGE 367 ENTERPRISE FUND-WATER PAGE 368 - CITY OF TIGARD ENTERPRISE FUND-WATER FUND SUMMARIES- PAGE 369 ENTERPRISE FUND-WATER CIP The Water CIP Fund accounts for major capital improvement projects for the water system. Re- sources in this fund consist largely of transfers from the Water Fund and borrowing proceeds. In fiscal year 2014-15, the fund will have a beginning fund balance of over $43 million from water revenue bonds. These dollars will be utilized to continue to fund the city’s long-term water project. In 2008 Tigard entered into a water partnership with the City of Lake Oswego on a long-term water source. The two cities agreed to jointly:  Expand Lake Oswego's water treatment facility  Replace the existing river intake  Construct a reservoir  Upsize transmission lines  Develop existing water rights and permits on the Clackamas River The improvements would allow Tigard and Lake Oswego to produce up to 38 million gallons of water per day. Of this amount, Tigard will receive 18 million gallons per day. Water is anticipated to begin flowing from the new facility by 2016. In October 2010, City Council approved the Water Rate Study that was completed by Red Oak Con- sulting. Based on this water financing plan, Tigard's share of the improvements and cost to buy into Lake Oswego's existing system is estimated to be $155 million. In May 2012, $102.5 million of water revenue bonds were issued. The majority of the proceeds were deposited into the Water CIP Fund to pay for capital projects for the water system, including the Lake Oswego/Tigard Water Partnership. In December 2013, the partnership agreed to amend its intergov- ernmental agreement to transfer an additional 4 million gallons per day from Lake Oswego to Tigard. During FY 2014-15, the city anticipates acquiring an additional $52 million dollars of water revenue bonds. This accounts for the substantial fund balance in this fund. Bonding revenues will be received in the Water CIP Fund and annual bond payments in subsequent years will show in the Water Debt Service Fund. Funding for the bond payments will come from wa- ter rates and will be transferred by the Water Fund into the Water Debt Service Fund. PAGE 370 - CITY OF TIGARD ENTERPRISE FUND-WATER CIP FUND SUMMARIES- PAGE 371 ENTERPRISE FUND-WATER DEBT SERVICE The Water Debt Service Fund accounts for revenues and debt service payments related to the issuance of water revenue bonds. The fund also maintains a fund balance to provide an estimated Debt Service Reserve Fund of $6.4 million. PAGE 372 - CITY OF TIGARD ENTERPRISE FUND-WATER SDC The Water System Development Charge (SDC) Fund is a subsidiary of the Water Fund. Water SDCs are charged when new water meters are sold and installed. The total purpose of the Water SDC is to fund future capacity-increasing projects and pay a reimbursement fee for existing assets. In October 2010, the city completed its update of the Water SDCs. City Council agreed to phase in the increase over four years. Final phase-in occurred on February 1, 2014. As SDCs are tied to development activity they tend to fluctuate. The city is beginning to see an up- ward trend in these revenues. FUND SUMMARIES- PAGE 373 SPECIAL REVENUE FUND-BUILDING The Building Fund is used to track building permit revenues and expenditures. All activities of the city’s Building Division are appropriated in this fund. The Building Division, a part of the Communi- ty Development Department, is responsible for reviewing plans, issuing permits, and inspecting con- struction to ascertain compliance with the State of Oregon specialty codes. The specialty codes in- clude building, fire, plumbing, mechanical, electrical codes and other State of Oregon rules and stat- utes. The division enforces requirements of the Tigard Municipal Code and Community Develop- ment codes and ordinances. Revenues collected in the Building Fund are dedicated to supporting the divisional activities and relat- ed administrative expenses. The amount of the charge for a building-related fee is detailed in ORS 455.210 and OAR 918-020-0220. PAGE 374 - CITY OF TIGARD SPECIAL REVENUE FUND-BUILDING FUND SUMMARIES- PAGE 375 SPECIAL REVENUE FUND-CITY GAS TAX The City Gas Tax Fund is used to account for revenues generated from and projects funded by Tigard’s local gas tax. The tax was developed by a citizen task force in 2006 as a means to fund im- provements to the Greenburg Road/Pacific Highway/Main Street intersection. The plan was to sunset the tax after paying for the project. In 2009, a change in state law forbade cities from changing their local gas tax, resulting in an inability to sunset the tax. The decision was made by the Tigard City Council to have the tax remain in effect permanently as a source to fund other future transportation project needs as recommended by a citizen task force. The Greenburg Road/Pacific Highway/Main Street intersection project was completed in December 2010. Revenue coming into the fund is current- ly being used to pay debt service on that project. The Tigard Transportation Advisory Committee (TTAC) advises council of potential transportation projects that can be funded by this revenue. Based on recommendation of TTAC, the city has funded two additional transportation projects with City Gas Tax Funds. They are the 72nd Avenue/Dartmouth Street Intersection Improvements and the Hall Boulevard/McDonald Street Intersection Improvements projects. PAGE 376 - CITY OF TIGARD SPECIAL REVENUE FUND– CRIMINAL FORFEITURE The Criminal Forfeiture Fund records revenues received from the seizure of assets used in criminal activity. Prior to FY 2014, a transfer out to the General Fund was established each fiscal year in order for the Tigard Police Department to have as-needed access to fund-allowable police and drug enforce- ment activities. Beginning in FY 2014, the police related expenditures are made directly out of the fund. FUND SUMMARIES- PAGE 377 SPECIAL REVENUE FUND– ELECTRICAL INSPECTION The Electrical Inspection Fund records revenues related to electrical permits and plan check fees in the city. The fees are established by single or multi-family dwelling units or by type of service, and are es- tablished following the guidelines detailed in ORS 455.210 and OAR 918-020-0220. These guidelines specify that the fees charged are necessary and are to be set at a level that reasonably recovers costs. The revenues are then transferred to the Building Fund to support the costs associated with these fees. PAGE 378 - CITY OF TIGARD SPECIAL REVENUE FUND– GAS TAX The Gas Tax Fund records shared revenues from the State of Oregon and Washington County taxes on the sale of motor vehicle fuel. The city utilizes these revenues to fund various construction, reconstruction, improvements, repairs, maintenance, and operation of public highways, roads, and streets. These monies may also be used for street lighting and cleaning, storm drainage, traffic control devices, administrative costs and debt service. State of Oregon gas tax and vehicle registration fees are shared with cities and counties throughout the State using a formula set by the legislature. The expenditure of state gas tax revenue is restricted to the uses outlined in Article IX, section 3a of the Oregon Constitution. Washington County collects one cent per gallon for all motor vehicle fuel sold within the county. Por- tions of this collection are distributed to cities within the county according to a formula set by the county. FUND SUMMARIES- PAGE 379 SPECIAL REVENUE FUND– GAS TAX PAGE 380 - CITY OF TIGARD SPECIAL REVENUE FUND– LIBRARY DONATIONS & BEQUESTS The Library Donations and Bequest Fund accounts for the money remaining from several donations and bequests that were provided to the Library for various special projects and artwork. A transfer to the Facilities Capital Projects Fund is appropriated in FY 2014-15 for any of these projects or artwork that arise. FUND SUMMARIES- PAGE 381 SPECIAL REVENUE FUND– PARKS BOND In November 2010, voters approved a $17 million parks bond for purchase of land and greenspaces to be used for parks. A minimum of 80% of the proceeds can be used for land acquisitions with the re- maining 20% to be utilized for park improvements. Funding for land acquisitions and improvements will come from the Parks Bond Fund, with expenditures recorded in the Parks Capital Fund. The ma- jority of the park bond resources will be expended during FY 2014-2015 with the remaining monies to be programmed on the Fanno Creek Re-meander parks project in FY 2017. PAGE 382 - CITY OF TIGARD SPECIAL REVENUE FUND– PARKS SDC The Parks System Development Charge (SDC) Fund was established to track the revenues and ex- penditures associated with the collection of the Parks SDCs. Parks SDCs are charged when a building permit is issued for any new residential, multi-family, or commercial construction. Funds collected are used for the acquisition, development, and expansion of additional recreation spaces and facilities that are included in the city’s Parks Master Plan. In June 2012, the city completed its update of the Parks SDCs. These rates are adjusted annually using an average of two indices, one reflecting changes in development/construction costs and one reflecting changes in land acquisition costs. FUND SUMMARIES- PAGE 383 SPECIAL REVENUE FUND– STREET MAINTENANCE FEE The Street Maintenance Fee Fund was established to track the revenues and expenditures associated with the Street Maintenance Fee that was approved through Ordinance No. 03-10 by the City Council in November 2003 and updated with revised fees in January 2010. The Street Maintenance Fee is a monthly fee designed specifically for the maintenance of existing roads in Tigard. Monthly fees are billed to and collected from both residential and non-residential customers through the city's utility billing system. The fee provides a stable source of revenue designated for the use in the maintenance of existing streets and right-of-way maintenance within the city. This includes applying new street surfaces such as slurry seals, pavement overlays, and repairing deteriorating streets. PAGE 384 - CITY OF TIGARD SPECIAL REVENUE FUND– TRAFFIC IMPACT FEE The Traffic Impact Fee (TIF) Fund was implemented to account for the revenues and expenditures associated with the Traffic Impact Fee which was a charge on new development assessed by Washing- ton County, but collected by cities. The TIF was replaced by the Transportation Development Tax on July 1, 2009 and was phased out over an approximately three-year period. Remaining resources collected under the TIF program will be expended during 2014-15 fiscal year. FUND SUMMARIES- PAGE 385 SPECIAL REVENUE FUND– TRANSPORTATION DEVELOPMENT TAX The Transportation Development Tax (TDT) Fund accounts for a Washington County Tax approved by the voters in November 2008 that is administered and collected by the City of Tigard. The tax went into effect on July 1, 2009, replacing the Traffic Impact Fee (TIF) program. Like TIF, TDT is assessed on new development to help provide funds for the increased capacity trans- portation improvements need to accommodate the additional vehicle traffic and demand for transit facilities generated by that development. It provides funds for these capacity improvements to county and city arterials, certain collectors, and certain state and transit facilities as listed in the County’s Capi- tal Improvements Project List. The TDT is categorized as an Improvement Fee. Revenue must be dedicated to capital improvements that expand capacity and may not be used for maintenance, repair, or other non-capital improvements. Since the TDT was approved by Washington County voters, the Washington County Board of Com- missioners has granted a discount to developers and slowed the phase-in of the TDT. While develop- ment activity has been slow, the revenue that has been collected on the limited activity has been nega- tively impacted. PAGE 386 - CITY OF TIGARD SPECIAL REVENUE FUND– URBAN FORESTRY The Urban Forestry Fund was established to account for funds collected from developers in lieu of preserving trees. Monies collected in this fund can be used by the city to plant trees in public rights-of- way and other public properties. These resources can also be used to provide care and maintenance to the trees planted by the city for three years after the planting. FUND SUMMARIES- PAGE 387 SPECIAL REVENUE FUND– UNDERGROUND UTILITY The Underground Utility Fund was established to record funds that are received in lieu of under- grounding utilities. The resources in this fund are used primarily to support various capital improve- ment projects that require underground utility components. PAGE 388 - CITY OF TIGARD DEBT SERVICE FUND– BANCROFT DEBT SERVICES The Bancroft Debt Service Fund accounts for revenues and debt service payments related to two local improvement districts (LID) within the city. In July of 2002, the city sold bonds for the 69th Avenue LID project. In December of 2003, the city sold bonds to finance the remaining portion of the Dart- mouth LID project. Bonds for the Dartmouth LID were paid off in November 2013 leaving the 69th Avenue as the city’s remaining LID project. Fund revenues are derived from assessments on proper- ties that participate within these districts. The reserve for future expense is to be used to protect against fluctuations and non-payment of assessments by property owners and to provide cash flow to pay debt service as scheduled. FUND SUMMARIES- PAGE 389 DEBT SERVICE FUND– GENERAL OBLIGATION DEBT SERVICE The General Obligation Debt Service Fund accounts for revenues and debt service payments related to the 2002 voter-approved bond measure for a new library and the 2011 voter-approved bond measure for the purchase and development of parks. Property taxes collected through the debt levies will be used to repay these bonds and ending fund balance is used to protect against fluctuations in property tax payments and provide cash flow to match collections and payments. PAGE 390 - CITY OF TIGARD CAPITAL PROJECTS FUND– FACILITIES CAPITAL PROJECTS The Facilities Capital Projects Fund is used largely for general construction, reconstruction, replace- ment, and expansion related to the city’s facilities. Transfers into this fund come from the various oth- er funds that will benefit directly from these projects. The fund is currently building a reserve to con- struct a new Public Works facility with transfers from the General Fund, Water Fund, Sanitary Sewer Fund, Stormwater Fund and Gas Tax Fund supporting this reserve. FUND SUMMARIES- PAGE 391 CAPITAL PROJECTS FUND– PARKS CAPITAL The Parks Capital Fund tracks various parks and greenspaces projects. Revenues accounted for in the Parks Capital Fund include various federal and state grants, intergovernmental revenues, and transfers- in. PAGE 392 - CITY OF TIGARD CAPITAL PROJECTS FUND– TRANSPORTATION CIP The Transportation CIP Fund tracks all capital improvement projects that are funded with transporta- tion revenues including Gas Tax, Traffic Impact Fees (TIF) and Transportation Development Tax (TDT). Resources to the fund include state and federal grants and transfers-in. FUND SUMMARIES- PAGE 393 INTERNAL SERVICE FUND– CENTRAL SERVICES The Central Service Fund was established to track the revenues and expenditures of the central admin- istrative functions in the city. The resources for this fund are largely interdepartmental charges to oth- er city funds. These charges are allocated to departments through a federally approved indirect cost plan. The basis for these allocated costs is reviewed each year based on anticipated use or benefits that are provided to other city departments or divisions. PAGE 394 - CITY OF TIGARD INTERNAL SERVICE FUND– CENTRAL SERVICES FUND SUMMARIES- PAGE 395 INTERNAL SERVICE FUND– FLEET/PROPERTY MANAGEMENT The Fleet/Property Management Fund tracks the revenues and expenditures of the Fleet Maintenance Division and Property Management Division. The resources for this fund are largely interdepartmental charges to other city funds that are based on a federally approved cost allocation plan that is revised each year. The cost allocation plan is based on anticipated use of benefits that are provided to other city departments or divisions. PAGE 396 - CITY OF TIGARD INTERNAL SERVICE FUND– INSURANCE The Insurance Fund is an internal service fund established to track worker’s compensation and other insurance related revenues as well as limited expenditures. Expenditures in this fund are for self- insured retentions on losses unfunded by traditional insurance policies, management of insurance/ claim activity and reduction of significant liability exposures. APPENDIX- PAGE 397 SCHEDULE OF APPROPRIATIONS PAGE 398 - CITY OF TIGARD SCHEDULE OF APPROPRIATIONS APPENDIX- PAGE 399 SCHEDULE OF APPROPRIATIONS PAGE 400 - CITY OF TIGARD SCHEDULE OF APPROPRIATIONS APPENDIX- PAGE 401 SCHEDULE OF APPROPRIATIONS PAGE 402 - CITY OF TIGARD SCHEDULE OF APPROPRIATIONS APPENDIX- PAGE 403 SCHEDULE OF APPROPRIATIONS PAGE 404 - CITY OF TIGARD SCHEDULE OF APPROPRIATIONS APPENDIX- PAGE 405 SCHEDULE OF APPROPRIATIONS PAGE 406 - CITY OF TIGARD SCHEDULE OF APPROPRIATIONS APPENDIX- PAGE 407 FINANCIAL POLICIES The City of Tigard has an important responsibility to its citizens to carefully account for public funds, manage municipal finances wisely and plan adequate funding for services and facilities desired and needed by the public. The city has established a formal set of financial policies to ensure that the pub- lic’s trust is upheld. With these financial policies, the city has established the framework under which it conducts its financial affairs, ensuring that it is, and will continue to be, capable of funding and provid- ing outstanding local government services. The goals of Tigard’s financial policies are as follows: • Enhance City Council’s policy-making ability by providing accurate information on program and operating costs. • Assist sound management of the city government by providing accurate and timely information on current and anticipated financial conditions. • Provide sound principles to guide important decisions of the council and management that have significant financial impact. • Set forth operational principles which minimize the cost and financial risk of local government consistent with services desired by the public. • Employ revenue policies that prevent undue or unbalanced reliance on any one source, distribute the cost of municipal services fairly and provide adequate funds to operate desired programs. • Provide and maintain essential public facilities, utilities, infrastructure and capital equipment. • Protect and enhance the city’s credit rating. • Ensure 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. The city uses the following financial policies to guide its financial affairs: Revenue Policy • Maintain a diversified and stable revenue system to shelter the government from short-term fluctu- ations in any one-revenue source. • One-time revenues will be used only for one-time expenditures. The city will avoid using tempo- rary revenues to fund mainstream services. • All revenue forecasts shall be conservative. • Regular reports comparing actual to budgeted revenues will be prepared by the Finance Depart- ment and presented to the City Manager. • All city funds shall be safely invested to provide a sufficient level of liquidity to meet cash flow needs and to provide the maximum yield possible in that order. One hundred percent of all idle cash will be continuously invested • The city will maintain an unallocated fund balance or retained earnings equal to or greater than two months of general operating expenditures or expenses. This reserve will be calculated based on the adopted annual operating budget of the city. These funds will be used to avoid cash-flow interrup- tions, generate interest income, reduce need for short-term borrowing and assist in maintaining an investment grade bond rating capacity. PAGE 408 - CITY OF TIGARD FINANCIAL POLICIES The city will also end each fiscal year with an adequate fund balance in the General Fund to pro- vide resources necessary for cash flow from July 1 until property taxes are received in November. Operating Budget Policy • Regular reports comparing actual to budgeted expenditures will be prepared by the Finance De- partment and distributed to the City Manager. • Departmental objectives will be integrated into the city’s annual budget and monthly departmental reports. • Before the city undertakes any agreements that create fixed costs, both operating and capital, the implications of such agreements will be fully determined for current and future years. • All non-salary benefits, such as social security, pension and insurance will be estimated and their impact on future budgets assessed annually. • Cost analysis of salary increases will include the effect of such increases on the city’s share of relat- ed fringe benefits. • The city will annually submit documentation to obtain the Award for Distinguished Budget Presentation from the Government Finance Officers Association (GFOA). Capital Improvement Policy • Systems development charges (SDCs) will be used for infrastructure capacity expansion and im- provements, including in-house engineering and design. • Future operating costs associated with new capital improvements will be projected and included in the operating budget forecast. • The city will determine and use the most effective and efficient method for financing all new capi- tal projects. • Special funds dedicated for capital improvements will be segregated in the accounting system and used only for the intended capital purposes. Fixed Asset Policy • The city will control capital assets by assigning accountability and responsibility to specific depart- ments. • The city will provide documentation of equipment loss to the insurance companies in the event of losses due to fire or theft. • The city will maintain and provide information such as depreciation and obsolescence needed for city’s enterprise funds (Water, Sanitary Sewer and Stormwater).  The city will provide budget information for capital replacements and additions. • The city will maintain inventories of all city equipment to avoid duplication of equipment. • The city will maintain a list of all assets and their values to ensure the capital assets are properly insured. APPENDIX- PAGE 409 FINANCIAL POLICIES Accounting Policy • The city will maintain high standards of accounting. Accounting principles generally accepted in the United States of America (GAAP) will be used in accordance with the standards developed by the Governmental Accounting Standards Board (GASB) and endorsed by the Government Fi- nance Officers’ Association (GFOA). • An independent annual audit will be performed by a public accounting firm, which will issue an official opinion on the annual financial statements and management letter detailing areas that need improvement. • Full disclosure will be provided in the financial statements and bond representations. • Financial systems will be maintained to monitor expenditures and revenues on a monthly basis, with thorough analysis. • The accounting system will provide monthly information about cash position and investment per- formance. • The city will annually submit documentation to obtain the Certificate of Achievement for Excel- lence in Financial Reporting from GFOA. Debt Policy • Capital projects financed through bond proceeds shall be financed for a period not to exceed the useful life of the project. • Long term borrowing will be confined to capital improvements too large to be financed from cur- rent revenues. • Issuance of assessment bonds will be pursued to finance local improvement districts approved by City Council. • Bond anticipation notes will be used as needed to finance construction of local improvements. Single Owner Local Improvement District Policy Local improvement districts (LIDs) are usually initiated either by the City Council or by written re- quest of the property owners owning at least fifty percent of the property benefited by the local im- provement. On occasion, the city receives requests to form a LID in which there would be only one property owner involved. City Council has established a formal policy for single owner LIDs. The following are the conditions that must be met before council will consider allowing the LID to be formed. • The property is zoned and proposed to be used for industrial, commercial or office development. • The applicant demonstrates the “Public Purpose” involved, which may include the creation of jobs in the community. PAGE 410 - CITY OF TIGARD FINANCIAL POLICIES  The applicant demonstrates that the risk to the city government or the general taxpayer is mini- mized. As a guideline, the City Council will request the following: a. That the applicant provide an appraisal of the property affected, such appraisal being done by an appraiser acceptable to the City Manager. b. That the amount to be assessed against the property not exceed 25% of the appraised value of the land only, excluding any improvements to the property. c. That financial documents be provided as required to the City Manager which can demonstrate that the property owner has the financial ability to pay the assessments levied on the property. INVESTMENT POLICY The following Investment Policies are intended to meet the requirements of ORS 294.035 and to pro- vide the framework within which City of Tigard funds may be invested. Authority The Finance and Information Services Director shall serve as the investment officer of the city. The investment officer is responsible for ensuring that funds are invested so as to make necessary cash available to meet current obligations and to invest excess cash in accordance with ORS 294.035 through ORS 294.047 and these Investment Policies. The Finance and Information Services Director may assign the delegation of authority to persons re- sponsible for investment transactions. This person would then act as investment officer with prior ap- proval of the City Manager. Scope These Investment Policies apply to all excess cash related to all activities and funds under the direction of the Tigard City Council. Cash accumulations related to bond proceeds or short-term borrowing is included unless more restrictive state or federal regulations are applicable. Excess cash shall be defined as all liquid assets not necessary to meet current obligations. Deferred Compensation Deferred compensation funds are placed with a third party for investment and are therefore excluded from the restrictions set forth in these guidelines. Objectives The objectives of these policies are to provide for the preservation of city assets, the availability of such assets to meet obligations as they come due, and to provide for a reasonable rate of return on those as- sets, in that order. APPENDIX- PAGE 411 FINANCIAL POLICIES Prudent Investor Investments shall be made under the prudent investor’s rule, which states, “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for invest- ment, considering the probable safety of their capital as well as the probable income to be derived.” Internal Controls The investment officer shall maintain a system of written internal controls, which will be reviewed an- nually by the independent auditor. Cash Flow Analysis The investment officer shall maintain a historical cash flow record and a cash flow projection, which extends twelve months into the future. The projection shall be reviewed and updated on a regular ba- sis. No fixed maturity securities shall be purchased unless the cash flow projection indicates that the funds invested will not be required until the maturity date of the investment. Bond Proceeds Surplus funds resulting from debt issuance shall be considered as a separate portfolio and shall not be restricted by the maturity and instrument diversification section of these policies. Such funds may be invested for periods exceeding 18 months and up to 60 months. Such maturities shall coincide with the projected cash flow needs resulting from the projected construction schedule. Diversification The investment officer will diversify the general portfolio to avoid unreasonable risks within the fol- lowing parameters: • Maturity Diversification Investment maturities shall be scheduled to coincide with projected cash flow needs. Thirty per- cent of the portfolio will mature in less than 90 days. No investments will be made for a period to exceed 18 months unless: This investment policy has been submitted to the Oregon Short Term Fund Board (OSTF) for comment prior to being approved by council and complies with the requirements of ORS 294.135. In this case, the maximum maturity shall be defined in policy. If the funds are being accumulated for a specific purpose, including future construction projects, and upon approval of the council, the maximum maturity date matches the anticipated use of the funds (ORS 294.135(1)(b)). PAGE 412 - CITY OF TIGARD FINANCIAL POLICIES If this investment policy has been submitted for review by the OSTF Board as specified above and in accordance with ORS 294.135(1)(a), debt service reserves may be invested to mature not longer than five years. Otherwise, debt service reserves shall not be invested to a maturity date exceeding one year as specified under ORS 294.135(3). The investment officer may make investments having maturity longer than 18 months, but not more than 36 months, with the exception of bond proceeds. The city’s investment portfolio shall not con- tain more than 20% of the total dollar value of its investments with maturities between 18 months and 36 months. • Instrument Diversification Certificates of Deposit 25% maximum Corporate Indebtedness 35% maximum Bankers Acceptance 50% maximum Treasury/Agency Securities 90% maximum Local Government Investment Pool 100% maximum Demand Deposits 10% maximum Lawfully issued Debt Obligations of the States of Oregon, Washington, Idaho and California and political subdivisions of those states 25% maximum • Institution Diversification Bank liabilities with any one qualified financial institution shall not exceed 20 percent of the port- folio. Bank liabilities of any one qualified financial institution shall not exceed one percent of the institution’s total assets. Investment in Corporate Indebtedness shall not exceed 5 percent of the portfolio in any one Oregon corporate entity meeting the rating requirements of P-2/A-2 or better, or 5 percent of the portfolio in any one corporate entity outside the State of Oregon (ORS 294.035 section C). For purposes of these guidelines, the state local government investment pool (LGIP) shall be considered to have a one-day liquidity. Selection of Investment Instruments Investments shall be made by the investment officer through the exercise of his/her judgment after requesting quotes from financial institutions. Selections will be made so as to provide the highest rate of return within the parameters of these policies. APPENDIX- PAGE 413 FINANCIAL POLICIES Qualified Institutions The investment officer shall maintain a list of all authorized institutions that are approved for invest- ment purposes. The investment officer will request, analyze and keep on file periodic financial state- ments and related information to satisfy himself/herself as to the creditworthiness of each institution on the approved list. Reporting The investment officer shall prepare an investment activity report at the end of each month for review by the City Manager. Amendments These investment policies may be amended at the request of the investment officer, the City Manager, or members of City Council. Such amendments shall be approved by the City Council in the same manner as the investment policies. Authorized Investment Instruments The investment officer shall invest the money of the city only in qualifying investments according to guidelines in ORS 294.035. These investments include: • Demand deposits with approved institutions. • Deposits in the Oregon Local Government Investment Pool. • Certificates of Deposit with Oregon banks. • Banker’s acceptances. • Qualifying corporate indebtedness not to exceed 5% of the portfolio on any one corporation. • Lawfully issued debt obligations of the United States and obligation guaranteed by the United States, the agencies of the United States or enterprises sponsored by the United States government, not to exceed 40% of the portfolio on any one government sponsored enterprise. • Lawfully issued debt obligations of the States of Oregon, Washington, Idaho and California and political subdivisions of those states. Safekeeping A third-party custodian, as evidenced by safekeeping receipts, will hold securities (excluding funds in- vested in the state local government investment pool (LGIP), bank deposits, and Certificates of De- posits). Other Policy Considerations Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such monies shall be reinvested only as pro- vided by this policy. PAGE 414 - CITY OF TIGARD GLOSSARY OF BUDGET RELATED TERMS Adopted Budget: The budget amended and approved by the Budget Committee becomes the adopted budget after City Council takes action on it. The adopted budget becomes effective July 1. Ad Valorem Tax: A tax based on value, such as a property tax. Appropriations : Legal authorization granted by the City Council to spend public funds. Appropriations within each program may not be exceeded. Approved Budget:The proposed budget as amended and approved by the Budget Committee and recommended to the City Council for adoption is referred to as the Approved Budget. Assets:Property owned by the city, which has monetary value. Balanced Budget:A budget is “balanced” when total resources (beginning fund balance plus current revenues plus transfers-in) equals total requirements (expenditures plus contingency plus transfers-out plus ending fund balance) for each fund. Bancroft: Section of Oregon Law that allows benefited property owners within an LID to pay their assessments in installments. This is made possible by the sale of long term “Bancroft” bonds, proceeds of which are used to pay LID costs. Principal and interest on Bancroft bonds are paid by assessments received from property owners within an LID, though these bonds also carry the full faith and credit guarantee of the city. Bond: A written promise to pay a specified sum of money, called the face value or principal amount, at a specified date or dates in the future, called the maturity date(s), together with periodic interest at a specified rate. Bond Anticipation Note (BAN): BANs are a form of short-term borrowing in anticipation of a future sale of long-term bonds. BANs are used frequently to finance construction of local improvement district improvements and are retired by eventual s ale of Bancroft bonds or collection of special assessments from benefited property owners. Budget: A plan of financial operation embodying an estimate of adopted resources and expenditures for a given year. The budget is the legal spending limit for city activities. Budget Message: Opening section of the budget which provides the City Council and public with a general summary of the most important aspects of the budget, changes from current and previous fiscal years and views and recommendations of the City Manager. Capital Improvement Plan (CIP): Expenditures which result in the acquisition of land, improvements to existing facilities and construction of streets, sewers, storm drains, park facilities and other public facilities. Capital Outlays: Expenditures equal to or greater than $5,000, for equipment, vehicles or machinery that results in the acquisition or addition to fixed assets. City Center Development Agency (CCDA):The Urban Renewal Agency approved by the voters in May,2006. The CCDA is comprised of members of the City Council as its governing body. APPENDIX- PAGE 415 GLOSSARY OF BUDGET RELATED TERMS Clean Water Services (CWS): Clean Water Services owns and operates all major sewage treatment plants within Washington County. CWS establishes sewer rates and contracts with most cities to collect monthly charges from residents and perform most sewer maintenance and repair within city limits. Contingency: Appropriation established in certain funds for the funding of unforeseen events. Contingency may be appropriated for a specific purpose by the City Council by approval of a resolution. Debt Service:Interest and principal on outstanding bonds due and payable during the fiscal year. Employee Benefits: Benefits include social security, retirement, group health, dental and life insurance, workers’ compensation and disability insurance. Enterprise Funds: Governmental activities that can be operated most like a commercial business are referred to as enterprise activities and are accounted for in enterprise funds. Tigard’s enterprise activities include sewer, stormwater and water utilities. Expenditures are matched with revenue from service charges to ensure the program is self- supporting. Expenditure:Actual payment made by city check or wire transfer for services or goods received or obligations extinguished. Fees: General term used for any charge levied by local government in connection with providing a service, permitting an activity or imposing a fine or penalty. Major types of fees include building permits, business and non-business taxes, fines and user charges. Fiscal Year:Period used for accounting year. The City of Tigard has a fiscal year of July 1 through the following June 30. Franchise:A special privilege granted by a government, permitting the continued use of public property, such as city streets, and usually involving the elements of monopoly and regulation. FTE:Abbreviation for Full Time Equivalent. Staffing levels are measured in FTE’s to give a consistent comparison from year to year. In most cases, an FTE is one full time position filled for the entire year. However, in some instances an FTE may consist of several part time positions. Fund:A fiscal and accounting unit with a self-balancing set of accounts in which cash and other financial resources, liabilities, equities and changes therein are recorded to carry on specific activities and/or objectives. Fund Balance: Amount left over after expenditures are subtracted from resources. Each fund begins and ends each fiscal year with a positive or negative fund balance. General Fund: The primary discretionary fund of the city, which accounts for general- purpose revenues (such as property tax) and general-purpose operations. Generally Accepted Accounting Principles (GAAP): Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. Intergovernmental Revenues:Revenue from other governments, primarily Federal and State grants and State shared revenues, also payments from other local governments. PAGE 416 - CITY OF TIGARD GLOSSARY OF BUDGET RELATED TERMS Local Improvement District (LID): An LID is an entity formed by a group of property owners or the city to construct public improvements (such as streets, sewers, storm drains, streetlights, etc.) to benefit properties. Costs of such improvements are then assessed among benefited properties. Measure 5:A constitutional limit on property tax rates passed by voters in the State of Oregon in November 1990. Measure 47: A Constitutional limit on individual property tax collections approved by voters in November 1996. Measure 50: Passed by voters in May 1997, this legislatively referred measure repealed Measure 47, and significantly reduced future property taxes. Metro: Metro is responsible for regional transportation and land use planning. It also manages the Oregon Zoo, the Oregon Convention Center, the Portland Center for the Performing Arts, and the Exposition Center. Metro is also responsible for regional solid waste disposal. Modified Accrual Basis: The accrual basis of accounting adapted to the governmental fund-type measurement focus. Under it, revenues and other financial resource increments (e.g., bond issue proceeds, property taxes and/or special assessments) are recognized when they become both measurable and available to finance expenditures of the current period. Object Classification: Indicates type of expenditure being made, i.e., personal services, materials and services, capital outlay, etc. Operating Budget: The portion of the budget that includes appropriations for direct services to the public including wages and benefits, materials and services and capital outlay. Excluded from the operating budget are capital improvement projects, debt service requirements, transfers, contingency and reserves. ODOT:the Oregon Department of Transportation. Permanent Tax Rate:The dollar-per- thousand figure used to calculate property tax revenues. Under Measure 50, all tax bases in Oregon were converted to a permanent tax rate. This rate, when applied to assessed value of property within a jurisdiction, produces the property tax revenues used to support general city operations. Tigard’s Permanent Tax Rate is $2.5131 per $1,000. Personal Services: Compensation to city employees in the form of salaries, wages and employee benefits. Program Budget:A budget wherein expenditures are based primarily on programs of work and secondarily on character, classification, and performance. Programs within the City of Tigard’s adopted budget include Community Services, Public Works, Community Development, and Policy & Administration. Proposed Budget: City budget developed by the City Manager and submitted to the Budget Committee for their deliberation. Reserved Fund Balance: Those portions of fund balance that are not appropriable for expenditure or that are legally segregated for a specific future use. APPENDIX- PAGE 417 GLOSSARY OF BUDGET RELATED TERMS SDC:Abbreviation for systems development charges. SDCs are paid by developers and builders to fund expansion of infrastructure necessary due to increased usage. Such charges are collected for sewers, storm drains, streets, parks and schools. Special Assessment: A charge made against certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily those properties. Special Revenue Fund:A fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. Tax Base:Oregon law used to allow cities within the State, with voter approval, to establish a dollar amount of property tax that may be levied on property within the city. Once established, a tax base was allowed to increase by 6% each year without further voter approval. All tax bases in the State were eliminated by Measure 50 and replaced with permanent tax rates. Tax Increment Financing:Financing secured by the anticipated incremental increase in tax revenues, resulting from the redevelopment of an area. TIF:Abbreviation for Traffic Impact Fee. These are revenues from a County-instituted fee on development. It was approved by voters in 1989. Funds are used for highway and transit capital improvements, which provide additional capacity to major transportation systems and recovery of costs of administering the program. The city collects this fee inside its boundaries. Urban Renewal District:In May of 2006, Tigard voters approved the formation of an Urban Renewal District encompassing the downtown and surrounding areas. With the formation of this district, future increases in property tax revenues from property within the district, called tax increment, will provide an important source of funding for a number of needed capital projects. Urban Service Area : The area of unincorporated Washington County within the City of Tigard’s area of interest, but outside Tigard city limits. The city and the county entered into an agreement in which the city provided development services to the area.. Tigard collected all fees and charges from such development and used the funds to pay for the related costs of that service. In FY 2006-07, the city and county terminated the contract and the city no longer provides services to this area. WCCLS: Abbreviation for Washi ngton County Cooperative Library Services. All libraries within Washington County are partially funded through a county-wide serial levy. Funds are distributed twice each fiscal year in accordance with a formula that takes into account circulation, open hours, and collection development. PAGE 418 - CITY OF TIGARD ADVISORY COMMITTEES Audit Committee The committee is established by Oregon Local Budget Law. The committee consists of the four elect- ed council members, the Mayor and five members from the community appointed by the City Council for three year terms. The committee is responsible for deliberating on the proposed budget submitted by the City Manager and for sending the approved budget to the City Council for adoption. The com- mittee must also approve tax levies. They meet approximately six times throughout the year, with the majority of those in late April/May to review and approve the proposed budget. Members Gretchen Buehner, Councilor Cameron James Peter Hedgecock Clifford Rone, Alt Budget Committee The committee is established by Oregon Local Budget Law. The committee consists of the four elect- ed council members, the Mayor and five members from the community appointed by the City Council for three year terms. The committee is responsible for deliberating on the proposed budget submitted by the City Manager and for sending the approved budget to the City Council for adoption. The com- mittee must also approve tax levies. They meet approximately six times throughout the year, with the majority of those in late April/May to review and approve the proposed budget. Members Bill Bigcraft, Citizen Marland Henderson, Councilor Gretchen Buehner, Councilor Julie Plotz, Citizen John L.Cook, Mayor Clifford Rone, Citizen Timothy Esau, Alternate Jason Snider, Councilor Don Fisher, Citizen Marc Woodard, Councilor Melody Graeber, Citizen City Center Advisory Commission This committee’s role is defined in the City Charter and is to assist the Urban Renewal Commission in developing and carrying out an Urban Renewal Plan. They meet the 2nd Wednesday of the month. Members Carine Arendes Paul Miller Deanie Bush Thomas Murphy Sherrie Devaney Linli Pao Laura Fisher Lynn Scroggin, Alternate Henry March Richard Shavey APPENDIX- PAGE 419 ADVISORY COMMITTEES Neighborhood Involvement Committee The committee is charged with oversight of the Neighborhood Network Program and finding ways to engage residents in the program. This committee meets the 3rd Wednesday of every quarter. Members Jeremy Audritsh Bev Froude Basil Christopher Cathy Olson Sue Carver John Pierce Larry Daw Connie Ramaekers Intergovernmental Water Board The Intergovernmental Water Board consists of five members and was established through an inter- governmental agreement between the cities of Tigard, Durham and King City and the Tigard Water District (TWD). Each jurisdiction is represented by one member and one member is appointed at large. This committee meets the 2nd Wednesday of the month. Members Gretchen Buehner, Tigard Keith Jehnke, Durham Chris Hadfield, Durham Alternate David Newham, King City Alternate Ken Henschel, TWD Julie Russell, TWD Alternate Jodie Inman, Member-at-Large Marc Woodard, Tigard Alternate Library Board The board consists of seven citizen members appointed by the City Council to serve four year terms. The board advises the City Manager and City Council on matters related to library operations. They meet the 2nd Thursday of the month. Members Laura Cadiz John Storhm Scott Hancock Dan Snyder Katie Harris Jan Thenell Linda Monahan Nicci Walker, Alternate Lorena Stewart, Alternate PAGE 420 - CITY OF TIGARD ADVISORY COMMITTEES Park and Recreation Advisory Board The board consists of seven voting members, two ex-officio members, and one Youth Advisory Coun- cil representative. One ex-officio member represents the Tigard Planning Commission and one repre- sents the Tigard-Tualatin School District 23-J. The board advises the City Council on matters pertain- ing to the creation, operation, and maintenance of recreation facilities under the jurisdiction of the city. The committee meets the 2nd Monday of the month. Members Barry Albertson, TTSD 23J Rep Marshall Henry David Brown Troy Mears Claudia Ciobanu Gary Romans, Alternate Paul Drechsler, Alternate Holly Polivka Margaret Faber Planning Commission The commission consists of nine citizen members, appointed by the City Council to serve four year terms. The commission’s responsibilities include assisting the City Council to develop, maintain, up- date and implement the City Comprehensive Plan; to formulate the City Community Investment Pro- gram; and to review and take action on development projects and Development Code provisions dele- gated to the commission. They meet the 1st and 3rd Monday of the month. Members Margaret Doherty Matthew Muldoon Michael Enloe Tom Mooney, Alternate Brian Feeney Christopher Ouellette Calista Fitzgerald Jason Rogers Tim Gaschke Donald Schmidt John Goodhouse, Alternate Tigard Transportation Advisory Committee (TTAC) Created in 2009, the TTAC is advisory to City Council and staff on transportation matters. The com- mittee provides a venue for citizen involvement in transportation decisions. This committee meets the 1st Wednesday of the month. Members Steven Bass Karen Mohling Mark Bogert Elaine Murphy Mark Carlton, Alternate Don Schmidt Tanya Fireman Elise Shearer Erik Halstead, Alternate Jennifer Stanfield Karen Hughart Kevin Watkins Dennis Mitchell APPENDIX- PAGE 421 STAFFING SUMMARY PAGE 422 - CITY OF TIGARD STAFFING SUMMARY APPENDIX- PAGE 423 MANAGEMENT/PROFESSIONAL GROUP SALARY SCHEDULE PAGE 424 - CITY OF TIGARD MANAGEMENT/PROFESSIONAL GROUP SALARY SCHEDULE APPENDIX- PAGE 425 MANAGEMENT/PROFESSIONAL GROUP SALARY SCHEDULE PAGE 426 - CITY OF TIGARD MANAGEMENT/PROFESSIONAL GROUP SALARY SCHEDULE * City currently does not have any positions with this job class. APPENDIX- PAGE 427 TIGARD POLICE OFFICERS ASSOC. SALARY SCHEDULE Salary schedule is unchanged from 2013-2014 budget. PAGE 428 - CITY OF TIGARD OREGON PUBLIC EMPLOYEES UNION SALARY SCHEDULE APPENDIX- PAGE 429 OREGON PUBLIC EMPLOYEES UNION SALARY SCHEDULE PAGE 430 - CITY OF TIGARD OREGON PUBLIC EMPLOYEES UNION SALARY SCHEDULE